Sell: Cable, Umunna, IDS; Buy: sensible backbench Tories

The New Statesman’s political investment guide for 2013.

It has been a turbulent year for Westminster trading. Stock in pretty much everyone and everything has fallen. It’s bearish out there. The outlook for next year is hardly less gloomy. National reserves of trust are at an all-time low. Scarcity of imagination and competence will continue. The market is over-supplied with mediocrity.

Here we present the New Statesman’s political investment guide for 2013.

Hold

All three of the main party leaders Ed Miliband, Nick Clegg and David Cameron all look relatively secure in their positions. Miliband is unassailable as long as his party is leading opinion polls. Cameron will be undermined by rebellious backbenchers but will, true to past form, make sufficient concessions to ward off the threat of a credible challenge. The overwhelming majority of Tories recognise the absence of a ready alternative. The Liberal Democrats can hardly be satisfied with their position but a majority seem to accept that unpopularity is a necessary consequence of becoming a party of government and that Clegg, as the man who is leading them on that journey, deserves more time to make it work.

George Osborne and Ed Balls  Alike in more ways than either man likes to admit, neither is liked but both are proven operators with serious staying power.

Boris Johnson The London Mayor can’t advance up the political ladder any further until he is an MP and he can’t run for parliament before the next general election without it looking like the start of a leadership bid but with no vacancy – a very exposed position. So he has to bide his time. But too many disgruntled Tories find him useful as a theoretical foil to Cameron for his stock to fall yet.

Buy

Sensible backbench Tories The Conservative leadership will be desperate next year to push forward some moderate voices to counteract the high profile enjoyed by Anglo-Tea Party, Ukip-lite fanatics. Conservatives who sound reasonable and do a good impression of belonging to 21st Century Britain are bound to start cutting through a little bit more. Lesser-known moderate Tories, such as Damien Hinds, MP for East Hampshire, and Alok Sharma, MP for Reading West are worth a look.

Fiscally serious Labour people The premium on Labour MPs who actually think about practical policy responses at a time of austerity is sure to go up. Liz Kendall, shadow social care minister, has a realistic understanding of the fiscal challenge and a detailed grasp of a vital brief. Likwise, Stella Creasy, MP for Walthamstow and scourge of payday lenders. She combines a clear attack line on the rapacious end of immoral capitalism with a quiet commitment to budget discipline. And she doesn’t speak in tedious robotic jargon as pumped out by the party press office.

Chris Huhne? One for the bargain-hunters. There are reports – as yet unconfirmed – that charges of perverting the course of justice that finished the former Energy Secretary’s cabinet career might be dropped. That would open the way for a return to active politics. He’s far too unpopular among Tories and mistrusted by Clegg to get a front line job. But he has enough support in the party rank and file to start causing mischief and right now the price is at rock bottom.

Sell

Vince Cable The Business Secretary is seriously over-priced as a consequence of Labour and Tory people ramping up the idea of him replacing Clegg as Lib Dem leader, largely just to destabilise the third party. It won’t happen. Cable doesn’t have a big enough base among Lib Dem MPs and, in any case, he wouldn’t want to be the man to wield the knife against Clegg, knowing that doing so would diminish his chances of wearing the crown. The Cable leadership talk is a bubble.

Chuka Umunna Shares in Cable’s opposite number on the Labour front bench, Chuka Umunna, have also been trading high for most of 2012. Umunna is talked up as a potential leader of his party one day. He looks and sounds good on television; he has avoided being associated too strongly with any wing of the party. But his rapid elevation through the ranks and high profile have made him a figure of envy and irritation on his own side. Questions are also starting to be asked about the rigour and depth of his economic analysis. As shadow business secretary he should be the face of Miliband’s quest for more responsible capitalism, which means leading an economic operation of sufficient gravitas to rival the more reactionary story coming out of the shadow chancellor’s office. Is Umunna heavyweight enough to counter-balance Ed Balls? Doubtful.

Andrew Mitchell On the Tory side there has been a sudden rally in Andrew Mitchell’s stock, following revelations that cast doubt on the police version of events in the “plebgate” story that finished his career as International Development Secretary. Westminster has been piling into Mitchells on the assumption that he can now return to front line politics. I’m not so sure. He didn’t resign exclusively because of what he was alleged to have said but because so few Tories felt like defending him and plenty were gleefully putting the boot in. The angry temperament that got him into trouble in the first place has plainly left a long trail of resentment that will not be forgotten quickly. This is not a man who can easily slot back into government where he left off. His current rehabilitation is a dead-cat bounce.

Iain Duncan-Smith The Work and Pensions Secretary is feted as a pioneer of “compassionate” Conservatism. Few question his moral determination to make welfare reform a mechanism to rehabilitate poor communities by helping those on benefits back into work. Sadly, that ambition is being undone by cuts inflicted by the Chancellor and by general lack of competence at every level in DWP. 2013 is the year flagship welfare reforms run aground.

Then of course there’s the alternative investment market. George Galloway’s price surely peaked in Bradford in 2012. His ambition is plainly to use Respect as the vehicle for a hard left personality cult built around him. His personality isn't attractive enough to make that work at a national level. On the right, Ukip will continue to make angry mischief up until at least 2014 elections to the European parliament. It could be worth dabbling in Farages now, but switch to safer Tory stocks before the general election.

General warning: the New Statesman is not responsible for views formed on the basis of this advice. Remember, politicians’ reputations can even further down as well as just down.

Vince Cable: "the Business Secretary is seriously over-priced". Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Why Boris Johnson is Theresa May's biggest Brexit liability

The Foreign secretary is loved by Eurosceptics and detested by EU negotiators. 

Boris Johnson is a joke in Brussels but not the funny kind. He is seen as the liar who tricked Britain into leaving the European Union.

Since his election as a MEP in 1999, Nigel Farage has sucked EU money into his campaign to get the UK out of the EU. But the contempt reserved for Boris is of a different order - because he should have known better.

Johnson has impeccable European pedigree. His father Stanley was an MEP and influential European Commission official. Unsurprisingly, Stanley is a Remainer as is Johnson’s brother Jo.  

The fury reserved for Johnson and his betrayal is of a particularly bitter vintage. Johnson was educated in the European School of Brussels in the leafy and well-heeled suburb of Uccle, where, years later, Nick Clegg lived when he was a MEP.

The contempt stems from his time as the Daily Telegraph’s Brussels correspondent. Fake news is now big news. Many in the self-styled “capital of Europe” believe Boris pioneered it.

Johnson was an imaginative reporter. Many still discuss his exclusive about the planned dynamiting of the European Commission. The Berlaymont headquarters stands untouched to this day.

Rival British hacks would receive regular bollockings from irate editors furious to have been beaten to another Boris scoop. They weren’t interested in whether this meant embroidering the truth. 

Johnson invented a uniquely British genre of journalism – the Brussels-basher. It follows a clear template.

Something everyday and faintly ridiculous, like condoms or bananas, fall victim to meddling Brussels bureaucrats. 

The European Commission eventually set up a “Euromyth”website to explode the pervasive belief that Brussels wanted you to eat straight bananas.  Unsurprisingly, it made no difference. Commission staff now insist on being called "European civil servants" rather than bureaucrats.

Commission President Jean-Claude Juncker was so worried about negative headlines that he stalled energy efficiency legislation until after the referendum.

When he shelved sensible laws to restrict excessive energy consumption on toasters and hairdryers, he was rewarded with a Hero of the Week award by the German tabloid Bild, which had developed a taste for Boris-style hackery.  

Many in Brussels draw a direct line from Johnson’s stories to the growing Eurosceptism in the Conservatives, and from that to Ukip, and ultimately Brexit.

To make matters worse, Johnson was the star of the Brexit campaign. His performance confirmed the view of him as an opportunistic charlatan.

The infamous £350m a week bus caused outrage in Brussels, but not as much as what Boris did next.

He compared the EU to Adolf Hitler. Boris knows better than most how offensive that is to the many European politicians who believe that the EU has solidified peace on the continent. 

European Council President Donald Tusk was furious. “When I hear the EU being compared to the plans and projects of Adolf Hitler I cannot remain silent,” said Tusk, a Pole.

“Boris Johnson crossed the boundaries of a rational discourse, demonstrating political amnesia,” he declared, and added there was “no excuse for this dangerous blackout”. It was the first time a leading EU figure had intervened in the referendum campaign.

After the vote for Brexit and his failed tilt at the premiership, Johnson was appointed foreign secretary, to widespread disbelief.

When the news broke, I received a text message from my Italian editor. It read: “Your country has gone mad.” It was the first of many similar messages from the Brussels press pack. 

“You know he told a lot of lies to the British people and now it is him who has his back against the wall,” France’s foreign minister Jean-Marc Ayrault said. Germany’s foreign minister, Frank-Walter Steinmeier called Johnson “outrageous”.

Could Johnson jeopardise the Brexit negotiations?  He can damage them. In November, he was ridiculed by European ministers after telling Italy at a Brussels meeting that it would have to offer tariff-free trade to sell prosecco to the UK.

European Union chiefs moved earlier this week to quell fears they would punish Britain for Brexit. Prime Minister Theresa May had threatened to lure investment away from the EU by slashing corporation tax rates in her speech last week.

Juncker and Joseph Muscat, the prime minister of Malta, which will chair the first Brexit negotiations, both insisted they was no desire to impose a “punitive deal” on the UK. Donald Tusk compared May’s speech and its “warm words” to Churchill. 

An uneasy peace seemed to have been secured. Enter Boris. 

Asked about comments made by a French aide to President Francois Hollande, he said, "If Monsieur Hollande wants to administer punishment beatings to anybody who chooses to escape, rather in the manner of some World War Two movie, then I don't think that is the way forward.”

The European Parliament will have a vote, and effective veto, on the final Brexit settlement. Its chief negotiator Guy Verhofstadt lashed out at Johnson.

“Yet more abhorrent and deeply unhelpful comments from Boris Johnson which PM May should condemn,” he tweeted.

Downing Street wasn’t listening. A spokeswoman said, “There is not a government policy of not talking about the war.”

And just as quickly as it broke out, the new peace was left looking as shaky as ever. 

 

James Crisp is a Brussels-based journalist who is the news editor of EurActiv.com