The real reason Gove attacked Lord Ashcroft

Former Times columnist launched attack after Ashcroft sued the paper over drugs allegations.

Have a look at these sharp (and very funny) quotes about Lord Ashcroft:

"[T]he Tories, fatally, foolishly, put all their eggs in the Belize basket. They secured the short-term comfort of Mr Ashcroft's tax-sheltered millions, but have paid the price in credibility forgone."

"Mr Hague certainly has a well-developed sense of humour . . . You certainly do not emerge strengthened as an opponent of cronyism by expending what credibility you have acting as the paid lobbyist for your own title-hungry treasurer."

"He [William Hague] must be able to see that Mr Ashcroft's comments are not the stuff of good-natured self-deprecation. They convey the authentic whiff of a man who brooks no opposition to his will, and enjoys no check on his arrogance, and they serve to make an already tawdry episode quite ridiculous."

Now take a guess at their author. Silver-tongued Peter Mandelson, perhaps? Jack Straw at his most indignant? The increasingly assertive David Miliband?

In fact, the person responsible is the very man the Tories put up on Newsnight last night to apologise for Ashcroft's misdemeanours, the shadow schools secretary Michael Gove.

Back in 2000, while a columnist for the Times, Gove penned this furious polemic against Ashcroft shortly after the non-dom's elevation to the House of Lords. Confronted with his words today, he waves his hand and explains that, as a columnist, he was "paid to entertain". Gove is too modest. His piece is no mere flight of fancy; it is a howl of moral outrage.

He is also not telling the full story. I do not make too great a presumption when I assume that Gove's Times column was related to Ashcroft's decision to sue the newspaper in question less than a year earlier.

Ashcroft sued for libel after the Times published a story in July 1999 suggesting that the US Drug Enforcement Administration (DEA) had the Tory donor in its sights as a narcotics smuggler and money-launderer. What the paper did not explain was that Ashcroft was just one of five million people on whom the DEA routinely kept files.

The two parties eventually reached an out-of-court agreement and Rupert Murdoch agreed to print a front-page statement withdrawing the allegations. Ashcroft has since told his side of the story in the savage Dirty Politics, Dirty Times: My Fight With Wapping and New Labour.

I dare say that Ashcroft and Gove now take a rather more favourable view of each other, but it is in this context that Gove's earlier attack must be placed.

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George Eaton is political editor of the New Statesman.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”