Three referendums that could change Britain as much as losing the empire

In the next five years, the Scottish independence referendum, an in/out EU referendum and a border poll on Northern Ireland could force a rethink of the entire British state.

"Devices for despots and dictators". That was Clement Attlee’s brisk dismissal of referendums and it held sway as the default view in British politics until the 1975 national referendum on continued British membership of the-then European Economic Community.

Since then, the growth in the use of referendums – and in calls to use them – seems inversely proportionate to the natural authority our risk-averse political leaders now wield. The bigger the decision, the less they want to take it.

As a result, there are now three big constitutional referendums lumbering into view over the next five years. Each is significant, but their combined effect could represent the biggest shock to the system since the break–up of the British empire.

The first is the referendum on Scottish independence. Alex Salmond knows that timing here is crucial and a date is so far elusive, although we know it is likely to be in autumn next year. Like a bee’s sting, he has one go at this. If he mistimes the vote and a majority of Scots opt for the status quo, his lifelong project will be over. It is likely, however, that a consolation prize will see extra concessions wrung out of a relieved Westminster in the form of 'devo max'. Don’t ask what that means though; as Scottish Secretary Michael Moore recently pointed out, it’s a "brand without a product".

The second referendum is more speculative. Sinn Fein is agitating for a ‘border poll’ on Northern Ireland’s constitutional status in 2016 – the centenary of the Easter Rising. So far, so predictable; that’s what an Irish republican party is for. But the Good Friday Agreement makes allowance for such votes and what makes this call slightly more intriguing is the reaction of some unionist commentators and politicians. The Democratic Unionist’s Arlene Foster recently said her party might "call [Sinn Fein’s] bluff" on the issue and support a vote. "Sinn Fein are trying to cause instability in Northern Ireland," she claimed.

"If we have the border poll then that instability goes away and, in actual fact, what we have is a very clear validation of the Union and that’s something we’re looking at at the moment."

With the recent census demographics still showing a majority of Protestants in Northern Ireland (albeit tentatively) could this be a smart move by unionists, a last decent chance to show a majority want to remain part of the UK?

The third referendum is, of course, David Cameron’s promise of an in/out EU vote following a renegotiation of Britain's membership. The PM has not set out what powers he wants to repatriate, nor if he would campaign to remain in the EU if his demands were not fully met. By 2017, the date a Conservative-led government would expect to hold the poll, both Northern Ireland and Scotland could conceivably already find themselves outside the UK.

For believers in the constitutional status quo, winning the three votes is not likely to settle grievances in the long-term. Scottish nationalism will continue to be an electorally potent reaction against Westminster rule, while the hope that Northern Ireland’s disputatious existence will be neatly resolved is the supreme elevation of optimism over reality. But winning a referendum on British membership of the EU would be a powerful fillip for pro-Europeans and would help put eurosceptics back in their box, at least for a while.

If all, or any, of these plebiscites were won by the forces of separatism, the shockwaves would force a rethink of the entire British state from its very foundations. In terms of importance, 'losing Ireland'; is the least significant, strategically and economically.

The intriguing question is which of the other two is more important: Scotland going its own way, or the whole of Britain voting to leave the EU? If both came to pass, might the new United Kingdom of England and Wales download the application form for NAFTA membership?

David Cameron and Alex Salmond attend the Drumhead Service in Edinburgh, Scotland. Photograph: Getty Images.

Kevin Meagher is associate editor of Labour Uncut and a former special adviser at the Northern Ireland office. 

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.