Cameron's EU speech: the questions he will need to answer

The questions the PM will face on renegotiation, the referendum and withdrawal.

Barring any unforseen hitches (and one wouldn't bet against it), David Cameron will finally deliver his long-delayed speech on the EU at 8am tomorrow at Bloomberg's London HQ. (The venue for Ed Balls's famous demolition of austerity in August 2010.) Here are some of the questions he'll need to answer. 

Which powers would a Conservative government seek to repatriate from the EU?

Cameron has promised to use the negotiations over the future shape of the eurozone to secure a "fresh settlement" for Britain, leaving open the question of which specific powers he wants to repatriate from Brussels. One guide to the Prime Minister's intentions is the last Conservative general election manifesto, which declared, "a Conservative government will negotiate for three specific guarantees – on the Charter of fundamental rights, on criminal justice, and on social and employment legislation – with our european partners to return powers that we believe should reside with the UK, not the EU." It was the Tories' failure to win a majority and the formation of the coalition that meant they were unable to fulfil this pledge. 

More recently, the eurosceptic Fresh Start group of Conservative MPs made the following demands in its Manifesto for Change

1. An emergency brake for any member state in financial services.
 
2. Repatriation to member states of the competence in social and employment law. Failing that a UK opt-out and emergency brake.
 
3. A UK opt-out from policing and criminal justice measures not already covered by block opt-out.
 
4. A new legal safeguard for the single market.
 
5. The abolition of the Strasbourg seat of the European parliament, the economic and social committee, and the committee of the regions
In his foreword to the manifesto, William Hague wrote: "Many of the proposals are already government policy, some could well become future government or Conservative party policy and some may require further thought."
 
Tory MPs will be watching closely tomorrow to see how many make it into Cameron's speech. 
 
What form would a referendum take?
 
We already know that Cameron, who has pledged to seek "fresh consent" for any new settlement, will use his speech to outline plans to hold a referendum at some point in the next parliament. But the Prime Minister will need to make it clear whether this will be a vote on Britain's EU membership in general or on the renegotiation. If the latter, as seems likely, Cameron will need to say whether a 'no' vote would amount to a vote for withdrawal or rather a rejection of the "new settlement". The Prime Minister's warning that the British people could "drift towards the exit", included in the pre-released extracts of his speech, suggests that a 'no' vote will mean Britain leaving the EU. 
 
When would a referendum be held?
 
With any renegotiation likely to take several years, the assumption in Westminster is that the referendum would be held in the middle of the next parliament. Cameron will need to offer some indication of the expected timeframe tomorrow. 
 
Will the referendum pledge be enshrined in legislation?
 
Conservative MPs, some of whom have never forgiven Cameron for breaking his "cast-iron" promise to hold a referendum on the Lisbon Treaty, are demanding that any referendum pledge is enshrined in law. This, they hope, would eliminate any risk of backsliding by the PM.  
 
A Commons vote on a bill authorising an EU referendum would also force Labour and the Liberal Democrats to either vote with the Conservatives or stand accused of denying the British people a say. For this reason, it is a tactic that may appeal to Cameron and George Osborne, who performed a similar trick with his Welfare Uprating Bill. 
 
What happens if the renegotiations are unsuccessful?
 
Cameron's strategy is premised on the belief that Britain will prove successful in seeking the return of powers from the EU. "I am confident we will get the changes that we want," he said during a recent appearance on the Today programme. Cameron believes that Germany, fearful of handing greater influence to protectionist France, is prepared to make concessions to the UK, rather than risk it walking out. 
 
But the Prime Minister, who is expected to take questions from the media after his speech, will be challenged to say how he would respond if his efforts at repatriation proved largely or totally unsuccessful. Rather than holding a referendum on the "new settlement", would a simple in/out vote be held? 
 
Are there any circumstances in which you would support EU withdrawal?
 
Some Conservatives, most notably Michael Gove, argue that any renegotiation will prove unsuccessful unless Cameron makes it clear that he is prepared to support withdrawal if the EU refuses to pay ball. In a concession to such figures, Cameron has conceded that Britain would not "collapse" if it left the union. But the PM, who has said repeatedly that he does not want the UK to adopt a Norwegian-style "associate membership", is unlikely to go any further tomorrow.
 
Would you allow Conservative cabinet ministers to campaign for withdrawal?
 
If Cameron's attempt to repatriate powers is largely unsuccessful, a significant minority of cabinet ministers are likely to support withdrawal. Eric Pickles, for instance, recently commented, "If it's in our firm national interest that we should remain in the EU – and I sincerely hope that is the case – then we should stay. But we shouldn't stay at any price." The Spectator's James Forsyth has reported that there are "at least nine Cabinet members" who would be inclined to vote "out" in a referendum if Cameron only proves able to secure minor concessions such as the exemption of the NHS from the Working Time Directive and restrictions on immigration from the EU. 
 
Confronted by a cabinet split in 1975, Harold Wilson took the unusual step of suspending collective ministerial responsibility in order to allow his ministers to support either side in the Europe referendum campaign. Seven Labour cabinet ministers - Tony Benn, Barbara Castle, Michael Foot, William Ross, Peter Shore John Silkin, Eric Varley - went on to unsuccessfully argue for withdrawal from the EEC (the vote was 67-33 in favour of membership).
 
Will Cameron follow this precedent? When Ed Miliband asked him at last week's Prime Minister's Questions whether he would allow Tory cabinet ministers to support withdrawal, he simply ignored the question. He will find it harder to do so tomorrow. 
 
David Cameron speaks during a press conference at the EU Headquarters on December 14, 2012 in Brussels. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

0800 7318496