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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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.

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