How do you price the priceless?

When a nation decides to count assets as well as incomes, it has to face some difficult questions.

The Financial Times has a report today on the efforts of the Treasury to publish the "whole-of-government accounts" for the first time. The usual practice for governments is to focus on income and outgoings, paying little heed to their assets and liabilities, but the fate of Greece put an end to that practice.

The problem with totting up everything a government owns is that their portfolio is rather different from that of, say, Barclays or John Lewis. They own things like Stonehenge:

Although unthinkable in practice, it would in theory be possible to price the site as if it were a business put up for sale, Mr Thurley [the head of English Heritage] admits. More than 1m people visit each year, with adults paying £7.50 each. “If we were to put Stonehenge on the market, we would probably sell it for a very large sum of money,” he says.

But applying a theme-park template would hardly have done justice to the ancient mystery of the stones, nor to English Heritage’s stewardship role. The fact that Stonehenge would have been ultimately lumped into an accounting category called “furniture, fittings and other” in the whole of government accounts would only have added insult to injury.

In the end, English Heritage kept Stonehenge and the vast majority of its treasures off the UK’s balance sheet by arguing that the cost of carrying out the valuation would have been out of all proportion to the benefits of disclosure. A similar approach has been taken by big museums and galleries, not to mention the Ministry of Defence, which declined to put a price tag on historical items such as the Enigma Machine, the second world war code-breaking device.

Thurley accepts that would be some benefits to English Heritage for valuing their less archaeological properties, since it would allow them to compare their performance against listed property management companies. It is hard to think of an acceptable use of valuing Stonehenge, though; the first chancellor to put the site up as collateral for a loan would probably be the last as well.

A real investment property; could do with some renovation. Credit: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
Show Hide image

Who will win in Manchester Gorton?

Will Labour lose in Manchester Gorton?

The death of Gerald Kaufman will trigger a by-election in his Manchester Gorton seat, which has been Labour-held since 1935.

Coming so soon after the disappointing results in Copeland – where the seat was lost to the Tories – and Stoke – where the party lost vote share – some overly excitable commentators are talking up the possibility of an upset in the Manchester seat.

But Gorton is very different to Stoke-on-Trent and to Copeland. The Labour lead is 56 points, compared to 16.5 points in Stoke-on-Trent and 6.5 points in Copeland. (As I’ve written before and will doubtless write again, it’s much more instructive to talk about vote share rather than vote numbers in British elections. Most of the country tends to vote in the same way even if they vote at different volumes.)

That 47 per cent of the seat's residents come from a non-white background and that the Labour party holds every council seat in the constituency only adds to the party's strong position here. 

But that doesn’t mean that there is no interest to be had in the contest at all. That the seat voted heavily to remain in the European Union – around 65 per cent according to Chris Hanretty’s estimates – will provide a glimmer of hope to the Liberal Democrats that they can finish a strong second, as they did consistently from 1992 to 2010, before slumping to fifth in 2015.

How they do in second place will inform how jittery Labour MPs with smaller majorities and a history of Liberal Democrat activity are about Labour’s embrace of Brexit.

They also have a narrow chance of becoming competitive should Labour’s selection turn acrimonious. The seat has been in special measures since 2004, which means the selection will be run by the party’s national executive committee, though several local candidates are tipped to run, with Afzal Khan,  a local MEP, and Julie Reid, a local councillor, both expected to run for the vacant seats.

It’s highly unlikely but if the selection occurs in a way that irritates the local party or provokes serious local in-fighting, you can just about see how the Liberal Democrats give everyone a surprise. But it’s about as likely as the United States men landing on Mars any time soon – plausible, but far-fetched. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.