Could this be the birth of a British Tea Party?

Taxpayers’ Alliance seizes on uncertainty in the coalition to press for a grass-roots right-wing mov

The scenes from Glenn Beck's "Restoring Honour" rally at the Lincoln Memorial in Washington, DC were astonishing. An estimated 87,500 conservative activists gathered in the US capital for a "non-partisan" rally that Beck said was intended to "reclaim the civil rights movement", falling on the 47th anniversary of Martin Luther King's "I have a dream" speech", made from the same spot.

The Tea Party movement is a phenomenal example of grass-roots activism of a kind that just doesn't exist in the UK. But this could be about to change, as it is revealed that the UK low-tax pressure group the Taxpayers' Alliance (TPA) has been taking advice from FreedomWorks, a Washington-based organisation which says it "recruits, educates, trains and mobilises millions of volunteer activists to fight for less government, lower taxes, and more freedom".

Members of both groups attended a conference in London yesterday to transmit the strategy required to build an "insurgent campaign" of UK low-tax lobbyists. Precisely how the Tea Party model might translate to the British political system has not been made clear, but the link forged between the two organisations has received some limited coverage in the national papers.

According to the Telegraph, the TPA has experienced a near-70 per cent rise in its membership over the past year. Matthew Elliott, chief executive of the TPA, told the Guardian that the anger at the recent HMRC errors that led to more than a million UK taxpayers being sent demands for backdated tax payments presents a unique opportunity for his organisation. He declared:

You could say our time has come. Take the strikes on the London Underground this week and how much they annoyed and inconvenienced people. Couldn't we get 1,000 people to protest [against] that?

A protest by 1,000 does not make a movement. But the Tea Party has grown from such demonstrations to fielding its own anti-incumbent candidates in the US midterm primaries, at least proving that such a rapid rise is possible, even if the environment in which it happened bears little similarity to that of the UK.

The TPA, however, is not a comparable organisation. In existence since 2004, it lacks the novelty and sheer momentum that have characterised the rise of the Tea Party in the US. A "British Tea Party" was launched by the Tory MEP Daniel Hannan in February, but little seems to have come of it.

For the TPA, being seen to be seeking advice from the media phenomenon that is the Tea Party is very possibly more valuable than the advice itself. However, a significant increase in grass-roots activism in the UK over the coming months is not at all out of the question. With the "big society" near the top of the government's agenda, the political discourse is very much leaning towards a return to localism and community-focused policy.

This is true of Labour, too -- the party's leadership campaign has been conducted in similar terms, the candidates repeatedly referring to their ability to "build a movement" and return control to the grass roots of the party. The clear front-runners, David and Ed Miliband, are no exception; both have referred to themselves as the preferred candidate of the party's grass roots.

With Britain facing an unfamiliar and unpredictable style of government, this could indeed be the high-water mark for groups such as the TPA. As well as left-leaning Liberal Democrats beginning to rebel, we have already begun to see more vocal dissent from the right of the Tory party, especially as issues such as the referendum on AV move up the agenda.

And as the TPA chief executive, Matthew Elliott, is also leading the "No to AV" campaign, his organisation is certainly going to be well placed to exploit growing unease on the right.

It seems more plausible than ever that if the TPA can add a swell of right-leaning popular support, the AV referendum and the local elections, both scheduled for May, could be the crucial turning point for this government.

Caroline Crampton is web editor of the New Statesman.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.