Why Cameron is giving Downing Street a political edge

The decision to make the next head of the No.10 Policy Unit a political appointee, rather than a civil servant, shows the PM has listened to complaints from Tory MPs.

So David Cameron is listening. According to a report on PoliticsHome, the Prime Minister has decided that the next head of his policy unit will be a political, rather than a civil service appointee. Paul Kirby, the current policy chief, is on secondment from the accountancy firm KPMG and is due to leave in March. He has been acting as a civil servant. His replacement, we are told, will be a special advisor. The distinction is not without significance.

The colonisation of No.10 by mandarins at the expense of heavyweight spads has been one of the most consistent complaints from Tory MPs – and indeed spads elsewhere in Whitehall – about the Cameron operation. The gripe is that the civil servants are loyal to the machine, not the party, that they lack strategic judgment and are predisposed to be ultra-cautious. Many Tories, not just the fanatical fringe, think capture by the Mandarinate explains why the government has lacked the dynamic, radical edge they crave. (Civil servants are, after all, supposed not to be ideological pioneers.)

A connected complaint is the fact that ministers and their spads out in the departments don’t know who in No 10 is covering their brief and therefore who to feed ideas to and lobby for support. There has been a sense that civil service channels work around the party, a process that, coupled with coalition and Lib Dem machinations, can feel like a conspiracy to stop the Tories from controlling government. In recent months, resentment of Whitehall officialdom has focused increasingly on the power of Sir Jeremy Heywood, the cabinet secretary who is said to wield formidable influence across government and to be a whisperer of cautious counsel in the Prime Minister’s ear. (Some of that resentment has bubbled up to the surface recently in public examination of Heywood’s role in the whole “plebgate” saga. )

Without an energetic party political policy boss at the very centre, projects can drift off course, lose momentum or just go plain wrong. One example: elections for police and crime commissioners last year were originally meant to be a flagship reform. But they were championed in No.10 by Steve Hilton, Cameron’s former head of strategy, and once he left, there was no one in Downing Street to cheerlead for the project. (And the Lib Dems hated the idea.) So the whole thing ended up a dismal, damp squib. Hilton’s departure last spring is also seen by many Tories as the moment Heywood seized definitive control.

It has been something of a mystery as to why, when the complaints have been so persistent and come from so many sides, the Prime Minister hasn’t acted sooner. One explanation I have heard is that Cameron wanted to wait until civil service contracts naturally expired instead of carrying out a premature purge. That seems oddly lackadaisical given how serious a charge it is that the No.10 operation is politically unfit, but not entirely out of keeping with accounts of Cameron’s character. He plainly finds hiring and firing the least enjoyable part of the job and believes in keeping people in post whenever possible, as his handling of reshuffles testifies.

Tories from all sides of the party will naturally be scrutinising the new appointment for indications of ideological allegiance. Many still find it hard to know exactly what Cameron believes. They will also be hoping for someone who can bring some long-term strategic judgement to the operation. As I write in my column this week, the famous “grid” system that Tony Blair’s team introduced for news planning and hazard spotting on the horizon is said to have broken down in Downing Street. One former No.10 staffer says Cameron’s operation barely looks ahead more than two months, which means they are effectively lost in endless, reactive tactical fire-fighting.

One final point about the new Downing Street Head of Policy, whoever he or she turns out to be. There will be much attention paid in the Conservative ranks to whether or not a “Cameron crony” gets the gig. Another routine complaint levelled against the PM is that he surrounds himself with courtier-chums, all from much the same background and often the same school. No doubt that makes for a jovial time in the office, but it carries the obvious risk that alternative perspectives are neglected and cosy consensus goes unchallenged. One middle-aged, privately-educated civil servant, says of interacting with the exceedingly privileged No.10 crew: “I can come across as fairly posh and they still make me feel like the stable boy.”

There is a feeling across much of the party and in government that the Downing Street setup needs someone at its heart who knows something of the world outside Cameron’s gilded circle and who has a forceful enough personality to force that perspective on the Prime Minister regardless of whether it is something he wants to hear.

David Cameron leaves 10 Downing Street in London, on January 18, 2013, as he prepares to address the House of Commons. Photograph: Getty Images.

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

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.