How Labour plans to crack down on payday loan sharks

Miliband will announce that the party would give councils new powers to limit the spread of payday lenders and betting shops on the high street.

Ed Miliband will return from holiday to launch Labour's local election campaign today and he's prepared a new policy for the occasion. Speaking in Ipswich, Miliband will announce plans to allow communities to halt the spread of payday loan sharks, bookmakers and fast food outlets along their high streets.

At present, if a high street bank closes down, councils are powerless to stop a payday lender moving in, despite the negative effect they can have on the area, because they are classed as the same kind of business. In the last year, there has been a 20 per cent rise in the number of payday loan firms as well as a significant increase in betting shops and pawnbrokers. Miliband will aim to reverse this trend by granting councils new powers to prevent such businesses opening. According to the party, Labour would reform planning laws by creating "an additional umbrella class which allows local councils to decide if they want to place some premises in a separate planning category." This would allow local authorities to refuse planning permission on the grounds that, for instance, opening a payday loan shop would constitute a change of use. In addition, it would allow councils to limit the spread of other types of outlet where there is local concern such as betting shops and fast food takeaways. 

In proposing the change, Miliband will cite the example of Chatham in Kent, where 23 payday lenders operate within a mile of the high street and where residents complain that their presence is increasing levels of personal debt in the area. He will say: 

Too many councils are finding that they don’t have the real power to stand up for local people. But that is what politics is supposed to be about: standing up for those without power and giving power to them. Currently if a bank branch closes down, there’s nothing a council can do if a payday loan shop wants to move in and open up in the same place. Even if there's another lender next door. That can’t be right.

The policy is a notable example of Miliband's embrace of Blue Labour-style small c-conservatism and he will contrast his stance with that of David Cameron. 

David Cameron’s government used to say it would give people that kind of chance. But it hasn’t delivered. In fact, it is moving in the opposite direction. Not standing up to the powerful interests. So it is up to us to give local people a proper chance to protect the places that they love. To turn their high streets around.

The crackdown on payday lenders is one of the five policies Labour has chosen to prioritise for its local election campaign. The other four are:

- Cancelling the cut in the 50p income tax rate (dubbed "the millionaires' tax cut") and protecting tax credits for low paid workers.

- Introducing a mansion tax on property values over £2m in order to fund the reintroduction of a 10p tax rate on the first £1,000 of earnings above the personal allowance.

-Reforming the energy market to break the stranglehold of the big six energy companies.

-Cracking down on train companies who are putting "the price of the daily commute further and further out of reach". 

After his absence last week, it will also be worth watching to see what Miliband has to say about George Osborne's decision to link the Philpott case to the government's welfare cuts, which he was privately appalled by. 

Miliband will say that "too many councils are finding that they don’t have the real power to stand up for local people". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

ELLIE FOREMAN-PECK FOR NEW STATESMAN
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Craig Oliver, Cameron's attack dog, finally bites

A new book reveals the spiteful after life of Downing Street's unlikely spin doctor.

It must be hard being a spin doctor: always in the shadows but always on-message. The murky control that the role requires might explain why David Cameron’s former director of communications Craig Oliver has rushed out his political memoirs so soon after his boss left Downing Street. Now that he has been freed from the shackles of power, Oliver has chosen to expose the bitterness that lingers among those on the losing side in the EU referendum.

The book, which is aptly titled Unleashing Demons, made headlines with its revelation that Cameron felt “badly let down” by Theresa May during the campaign, and that some in the Remain camp regarded the then home secretary as an “enemy agent”. It makes for gripping reading – yet seems uncharacteristically provocative in style for a man who eschewed the sweary spin doctor stereotype, instead advising Cameron to “be Zen” while Tory civil war raged during the Brexit campaign.

It may be not only politicians who find the book a tough read. Oliver’s visceral account of his side’s defeat on 24 June includes a description of how he staggered in a daze down Whitehall until he retched “harder than I have done in my life. Nothing comes up. I retch again – so hard, it feels as if I’ll turn inside out.”

It’s easy to see why losing hit Oliver – who was knighted in Cameron’s resignation honours list – so hard. Arguably, this was the first time the 47-year-old father-of-three had ever failed at anything. The son of a former police chief constable, he grew up in Scotland, went to a state school and studied English at St Andrews University. He then became a broadcast journalist, holding senior posts at the BBC, ITV and Channel 4.

When the former News of the World editor Andy Coulson resigned as No 10’s communications director in January 2011 because of unceasing references in the press to his alleged involvement in the phone-hacking scandal, Oliver was not the obvious replacement. But he was seen as a scandal-free BBC pen-pusher who exuded calm authority, and that won him the job. The Cameron administration, tainted by its association with the Murdoch media empire, needed somebody uncontroversial who could blend into the background.

It wasn’t just Oliver’s relative blandness that recommended him. At the BBC, he had made his name revamping the corporation’s flagship News at Ten by identifying the news angles that would resonate with Middle England. The Conservatives then put this skill to very good use during their 2015 election campaign. His broadcast expertise also qualified him to sharpen up the then prime minister’s image.

Oliver’s own sense of style, however, was widely ridiculed when he showed up for his first week at Downing Street looking every inch the metropolitan media male with a trendy man bag and expensive Beats by Dre headphones, iPad in hand.

His apparent lack of political affiliation caused a stir at Westminster. Political hacks were perplexed by his anti-spin attitude. His style was the antithesis of the attack-dog mode popularised by Alastair Campbell and Damian McBride in the New Labour years. As Robert Peston told the Daily Mail: “Despite working closely with Oliver for three years, I had no clue about his politics or that he was interested in politics.” Five years on, critics still cast aspersions and question his commitment to the Conservative cause.

Oliver survived despite early wobbles. The most sinister of these was the allegation that in 2012 he tried to prevent the Daily Telegraph publishing a story about expenses claimed by the then culture secretary, Maria Miller, using her links to the Leveson inquiry as leverage – an accusation that Downing Street denied. Nevertheless, he became indispensable to Cameron, one of a handful of trusted advisers always at the prime minister’s side.

Newspapers grumbled about Oliver’s preference for broadcast and social media over print. “He’s made it clear he [Oliver] doesn’t give a s*** about us, so I don’t really give a s*** about him,” a veteran correspondent from a national newspaper told Politico.

Yet that approach was why he was hired. There was the occasional gaffe, including the clumsy shot of a stern-looking Cameron, apparently on the phone to President Obama discussing Putin’s incursion into Ukraine, which was widely mocked on Twitter. But overall, reducing Downing Street’s dependence on print media worked: Scotland voted against independence in 2014 and the Tories won a majority in the 2015 general election.

Then came Brexit, a blow to the whole Cameroon inner circle. In his rush to set the record straight and defend Cameron’s legacy – as well as his own – Oliver has finally broken free of the toned-down, straight-guy persona he perfected in power. His memoir is spiteful and melodramatic, like something straight from the mouth of Malcolm Tucker in The Thick of It. Perhaps, with this vengeful encore to his mild political career, the unlikely spin doctor has finally fulfilled his potential. 

This article first appeared in the 29 September 2016 issue of the New Statesman, May’s new Tories