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.

Getty
Show Hide image

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.