The next chapter in Blair’s pursuit of wealth

New reports reveal that he has registered a “Mayfair bank” with the FSA.

It's not great timing for the man who was once credited with being a master of spin. After a week of speculation around Tony Blair's decision to donate the proceeds of his memoir, A Journey, to the Royal British Legion comes news that the former premier has set up a Mayfair investment advisory firm.

The company, Firerush, was apparently set up to manage the finances of his consultancy firm, Tony Blair Associates (TBA), but, as the Bloomberg report points out, Blair has hired former investment bankers -- including an ex-Lehman Brothers employee -- and has registered the firm with the Financial Services Authority (FSA). A spokesperson has denied, however, that the outfit will operate as an investment bank.

Whether it's a bank or not, it's a sign of the continuing expansion of the Blair empire (he is now said to be worth about £20m -- oddly, the Labour Party is apparently in debt by the same amount, according to John Prescott). How far the former Sedgefield MP has travelled from such petty, parochial issues. He is now able to swan between seven homes, various high-paid positions and lucrative public speaking fees.

Blair still has a few defenders, but surely their cause can't be helped by this latest twist in the tale of endless wealth accumulation. But why is it so ugly to behold? It is cynical (though understandable) to question the motivation for his charitable donation -- a consequence of his wealth. And there are no rules to say a former premier cannot go on to financial success after leaving office.

But, in Blair's case, there's that sense -- just as there was when he was in office -- of a gulf between the external presentation and the inner reality. He gives a highly publicised donation and, on the quiet, registers an investment vehicle in Mayfair. He makes occasional but well-documented appearances in the Middle East and, again, almost silently, receives cash from a South Korean oil firm.

It's the sense of duplicity that stinks.

Sophie Elmhirst is features editor of the New Statesman

Paul McMillan
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"We're an easy target": how a Tory manifesto pledge will tear families apart

Under current rules, bringing your foreign spouse to the UK is a luxury reserved for those earning £18,600 a year or more. The Tories want to make it even more exclusive. 

Carolyn Matthew met her partner, George, in South Africa sixteen years ago. She settled down with him, had kids, and lived like a normal family until last year, when they made the fateful decision to move to her hometown in Scotland. Matthew, 55, had elderly parents, and after 30 years away from home she wanted to be close to them. 

But Carolyn nor George - despite consulting a South African immigration lawyer – did not anticipate one huge stumbling block. That is the rule, introduced in 2012, that a British citizen must earn £18,600 a year before a foreign spouse may join them in the UK. 

“It is very dispiriting,” Carolyn said to me on the telephone from Bo’ness, a small town on the Firth of Forth, near Falkirk. “In two weeks, George has got to go back to South Africa.” Carolyn, who worked in corporate complaints, has struggled to find the same kind of work in her hometown. Jobs at the biggest local employer tend to be minimum wage. George, on the other hand, is an engineer – yet cannot work because of his holiday visa. 

To its critics, the minimum income threshold seems nonsensical. It splits up families – including children from parents – and discriminates against those likely to earn lower wages, such as women, ethnic minorities and anyone living outside London and the South East. The Migration Observatory has calculated that roughly half Britain’s working population would not meet the requirement. 

Yet the Conservative party not only wishes to maintain the policy, but hike the threshold. The manifesto stated:  “We will increase the earnings thresholds for people wishing to sponsor migrants for family visas.” 

Initially, the threshold was justified as a means of preventing foreign spouses from relying on the state. But tellingly, the Tory manifesto pledge comes under the heading of “Controlling Immigration”. 

Carolyn points out that because George cannot work while he is visiting her, she must support the two of them for months at a time without turning to state aid. “I don’t claim benefits,” she told me. “That is the last thing I want to do.” If both of them could work “life would be easy”. She believes that if the minimum income threshold is raised any further "it is going to make it a nightmare for everyone".

Stuart McDonald, the SNP MP for Cumbernauld, Kilsyth and Kirkintilloch East, co-sponsored a Westminster Hall debate on the subject earlier this year. While the Tory manifesto pledge is vague, McDonald warns that one option is the highest income threshold suggested in 2012 - £25,700, or more than the median yearly wage in the East Midlands. 

He described the current scheme as “just about the most draconian family visa rules in the world”, and believes a hike could affect more than half of British citizens. 

"Theresa May is forcing people to choose between their families and their homes in the UK - a choice which most people will think utterly unfair and unacceptable,” he said.  

For those a pay rise away from the current threshold, a hike will be demoralising. For Paul McMillan, 25, it is a sign that it’s time to emigrate.

McMillan, a graduate, met his American girlfriend Megan while travelling in 2012 (the couple are pictured above). He could find a job that will allow him to meet the minimum income threshold – if he were not now studying for a medical degree.  Like Matthew, McMillan’s partner has no intention of claiming benefits – in fact, he expects her visa would specifically ban her from doing so. 

Fed up with the hostile attitude to immigrants, and confident of his options elsewhere, McMillan is already planning a career abroad. “I am going to take off in four years,” he told me. 

As for why the Tories want to raise the minimum income threshold, he thinks it’s obvious – to force down immigration numbers. “None of this is about the amount of money we need to earn,” he said. “We’re an easy target for the government.”

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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