Osborne speaks sense on gay marriage

Gay marriage is right and we must support it if we want to win, Chancellor tells the Tories.

George Osborne has always sat on the socially liberal wing of the Conservative Party, so it is no surprise that he is a strong supporter of gay marriage. But given the extent of opposition to the policy within Tory ranks (it is reportedly the top reason for members resigning from the party), it's still notable that he uses an op-ed (£) in today's Times to signal that the government will press ahead with plans to introduce it.

With an eye to Obama's victory last week, the Chancellor rightly concludes that social liberalism is the only electorally viable position. He notes that the Republicans "lost swathes of voters who were on their side of the economic argument" because of their stances on abortion and equal marriage, adding that he wouldn't change "the current abortion laws" (as his voting record indicates) and that he supports gay marriage "on principle".

But, as ever, Osborne, who is both Chancellor and the Tories' chief election strategist, also has psephological considerations in mind. He believes the Tories should support gay marriage not just because it is the right thing to do but because it will help them win in the future. Osborne slightly overstates his case by writing that a "clear majority of the public support gay marriage" (the polling evidence is more mixed, although polls generally show at least a plurality in favour) but his wider point - that support for gay marriage is only likely to grow with time - is spot-on. In an echo of Tony Blair, who Osborne refers to as "the master" for his election-winning abilities, he writes that "Successful political parties reflect the modern societies they aspire to lead". To this end, the Chancellor confirms that the government will "introduce a Bill to allow gay marriage."

Already, however, his comments have prompted a backlash from Conservatives. Stewart Jackson MP tweets that the Chancellor "should focus less on social liberal obsessions like gay marriage & more on outside M25 priorities like jobs, taxes & growth". It is, of course, possible to do both. What Tories like Jackson really mean when they say the government should "focus" on other issues is that they don't want it to ever introduce gay marriage. So long as the Conservative Party continues to boast such figures in its ranks, many socially liberal Britons will feel unable to vote for it.

George Osborne said the government would "introduce a Bill to allow gay marriage". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.