Are the Tories tipping into anti-business rhetoric?

The government announces more regulation business won't like.

This announcement was always going to be tricky for a Conservative prime minister to make. The relationship between the Conservatives and the business community is stronger and longer established and runs much deeper than the marriage of convenience between business (and the City especially) and New Labour, and stronger than that with the LibDems. While the Labour Party continues to try hard to re-engage and woo business leaders (its top team were out in force at a Labour Party business reception earlier this week, including the one-man charm machine that is shadow business secretary Chuka Umunna) it still has a long way to go.

The Conservatives on the other have been trying to juggle keeping business onside with not being seen to be too cosy with such natural allies as large corporate donors and wealthy business leaders. This balancing act partly explains both the prime minister and his chancellor making so much noise about anti-tax abuse regulations.

At an awards dinner recently one senior FTSE100 executive told me he was fearful that all the aggressive government rhetoric on tax was in danger of tipping into anti-business rhetoric. He was appalled by what he felt was precisely the opposite of the sort of language he expected from a Conservative prime minister, even one leading a coalition government.

The lobbying debate got even more heated when another announcement – that plans to force cigarette brands to adopt generic packaging were to be shelved – was linked to alleged lobbying activities of Conservative Party strategist Lynton Crosby (whose firm counts tobacco giant Philip Morris among its clients).

The rights and wrongs of who asked for what favours from which politicians (which is essentially what lobbying is) matters less than the message the whole affair sends out. While the boisterous, point-scoring politics of Prime Minister’s Questions is a bit of noise and we can enjoy the “banter” of David Cameron being called “the prime minister for Benson and hedge funds” Ed Miliband being accused (again) of sitting “in the pocket of the unions”, these stories continue to undermine public trust and confidence in both politicians and business.

Trust is already at a something of a premium, following the financial crisis. The recession may have been caused more by a reckless few financiers than the business community per se, but for much of the public there isn’t that much to distinguish bankers from big business. It’s a problem business secretary Vince Cable started the week trying to address. He launched a consultation paper at the London Stock Exchange called Trust and Transparency, which proposes a whole raft of measures on areas ranging from beneficial ownership (much of which was announced at the G8 Summit earlier in the summer) right through to a much-needed review of the system for pre-pack administrations.

Cable launched the paper in the City because many of the current problems with trust started in the Square Mile during the financial crisis. As Cable said, there has been “a seemingly endless succession of mis-selling and price-rigging scandals; and accusations of greed and unethical behaviour against leading figures in the industry.”

It’s no surprise that this year’s Edelman Trust Barometer found that UK banking scores some of the lowest trust scores for any sector in any country.

The problem with any trust is that it takes a long time to build, is shattered in an instant and takes even longer to rebuild. If the public mistrusted the relationship between business and politics in 2008 it is not surprising the only thing that has changed since then is that the sense of mistrust and the outrage have grown.

Politicians need to be seen to be tackling these problems and as much as businesses won’t like it, that always means more regulation. Cable is right to introduce measures to give investors more power to influence executive pay. While the details of plans to introduce a register of the beneficial owners and detailed issues such as bearer shares will not be raised by the public when politicians start pounding pavements at the next election, it is essential the public understands that politicians and the business community are taking steps to put their respective houses in order. Without that trust will never be restored.

This piece first appeared on economia.

Photograph: Getty Images

Richard Cree is the Editor of Economia.

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Miners against coal: the pit where former Welsh miners are protesting alongside climate change activists

The Merthyr Tydfil miners’ long history of struggle is spurring them on to a whole new form of action.

The retired miners and factory workers at the working men's club in the Welsh town of Merthyr Tydfil are no strangers to hard times. Our second son was born during the 1984 strike and we had nothing for 12 months, one member tells me. The town continues to struggle with unemployment – last year the rate for men was nearly double that of the UK as a whole – over three decades on from the miners’ strike. But these days the atmosphere at the club is more resigned than radical. A singer croons his way through “Only the Lonely”, while talk at the bar is of better times: days when work was plentiful, days when, “you went down the mine a boy and came up a man”.

When the deep pits closed in the 1980s, Merthyr became a dumping ground – quite literally. Not only is the nearby landfill one of Europe's biggest, the valley is now home to the largest opencast (open-pit) mining operation in the UK. Its towering spoil tips throw a Mordor-esque shadow over the community below, coating homes and lungs alike in dust. 

Even former miners lament the small number of poorly-regulated jobs the Ffos-Y-Fran pit currently provides. Opencast is lorry driving, not mining, is a sentiment I hear repeated across the town, from the club bar to chip shops to the office of the miners’ union itself.

Just as the town's fortunes rose with coal, so they have plummeted as the industry has declined. While the fuel still accounts for around 10 per cent of UK electricity generation on any given day, last year generation fell to its lowest level since the 1950s. The need to decarbonise also looks set to reduce demand further. The effects of last December's Paris climate agreement – and its aim to limit warming below 2C  are already being felt in Wales: the Aberthaw power station is a key destination for Welsh coal, but recently announced plans to reduce its output.

The club's secretary can only think of one member who still works in the mine. Others I encounter chase shifts at the local meat-packing factory, or have to travel for over an hour outside the town. Support for jobs unsurprisingly usually trumps support for climate change deals: “If it brings in work, we don’t have a problem with it,” is the general consensus inside the club. If someone tells you they're against the mine, they're probably from England, not Wales, says a resident of the nearby village of Fochriw. 

The people of Merthyr, however, are also no strangers to fighting perceived injustice. In the early nineteenth century, Merthyr's thriving ironworks made it the largest town in Wales. But when depression hit in 1831, low wages and sudden dismissals drove many to despair. By the start of June that year, thousands gathered to march against the iron masters and coal barons. And for the very first time, the red flag of revolution was raised on British soil.

185 years later, while club members sipped their drinks, others are writing Merthyr's history afresh. Up on the hills above the town  beyond the litter-strewn fields and the “Danger: No trespass” signs  around 300 campaigners from across the UK gathered to call for an end to coal.

Led by the climate activist group Reclaim the Power, many of the camp’s young attendees work for Westminster MPs and NGOs. A litter-pick was followed by the rapid erection of communal kitchens and sustainable loos. There were safe spaces, legal training, and warnings not to disturb the nearby nesting birds.

On Tuesday morning, the activists occupied and (temporarily) shut down operations at the mine – tying themselves to machinery and lying across access roads in an attempt to symbolise the red line that carbon emissions must not cross. Their action is the first in a fortnight of global anti-fossil fuel protests  from plans for train heists in Albany, to protesting in kayaks in Vancouver. And while global reach counts for little without local support, the climate campaigners at Ffos-Y-Fran are not alone.

Since 2007, members of the United Valleys Action Group (UVAG), a group of local residents and ex-miners, have also fought the mine's planned expansion into the nextdoor valley. On Tuesday, many joined with the activists to blockade the entrance to the mine's headquarters. One member, 56-year-old Phil Duggan, has worked in the pits from the age of 16. And while he is “no tree-hugger”, he is tired of accepting jobs at any cost.

I don't want my children to suffer the ill health I have,” he says. “To some extent we [ex-miners] have been able to claim compensation. But the way things are going now you're not going to be able to claim anything. The deregulation of employment is making people desperate  we're going back to an era that our fore-fathers unionised to put right.”

In a strange twist of fate, it’s these Merthyr miners history of struggle – their long fight to protect their livelihoods and communities  which now spurs them to action against new mines.


Phil Duggan entered the pits aged 16. Photos: India Bourke

Wayne Thomas at the National Union of Mineworkers says he recognises that, unless carbon capture technology can develop apace, the Paris agreement looks set to speed up  coal's decline. But he also believes that British coal has its place in responsibly managing the transition to renewables – a place that includes reducing foreign imports, cleaning up the dirty acts of private mining companies, and putting control back in the hands of local communities. If you're going to phase out an industry, you've got to put something in place to limit the damage.

For evidence, he need point no further than the co-operatively run mine at Tower colliery, where an independently-managed fund ensures that, when the time comes, the opencast site will be carefully regenerated. Sadly, the same cannot be said of the privately-owned operation at Ffos-Y-Fran for certain.

Last year, the Welsh Assembly voted in favour of a moratorium on opencast mining. The government has yet to act, but this may change depending on how the balance of power falls after Thursday's elections. Assembly candidates from both the Green party and Liberal Democrats voiced their support for the UVAG campaigners at a meeting in one of the villages effected by the new pit proposals.

Utlimately, the decline of some of Welsh coal's main customers  the steel works at Port Talbot and the power station at Aberthaw  is likely do more to undermine UK coal than the red lines campaigners draw. But, along the way, new alliances between climate idealists and unions could breathe new life into both movements. In the words of Merthyr Tydfil’s ancient motto: “Nid cadarn ond brodyrdde”  Only brotherhood is strong.


Chris and Alyson, founders of United Valleys Action Group.

India Bourke is the New Statesman's editorial assistant.