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

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.