Cameron's clique accused of having "frozen out" his only black adviser

In another blue-on-blue attack, friends of Shaun Bailey claim he was sidelined by Cameron's Etonian aides.

In last Saturday's Daily Telegraph, David Davis pleaded with David Cameron to stop recruiting "old Etonian advisers". Tomorrow, in another blue-on-blue attack, some of the same advisers are accused of having "frozen out" Cameron's only black working class aide, Shaun Bailey. Bailey, who stood unsuccessfully in Hammersmith for the Tories at the last election, is said by a friend to have been sidelined after criticising No. 10's failure to address the rising cost of living and to build a more diverse party. Bailey was sacked as a special adviser earlier this year and moved to a part-time role at the cabinet office. The friend in question tells the Telegraph:

They just didn’t get what Shaun was saying. He kept challenging them saying, ‘Why are we not saying this?’ … He went into Downing Street and the first thing he said was, ‘The only political conversation you need to have publicly is about the cost of living’. He also gave plenty of warning that if they wanted to talk about being a diverse party, people have to see it. But they didn’t want to hear about it. Shaun was frozen out.

And there's worse, much worse. The friend adds:

Shaun always says that you can see from space that the place is dominated by those from Eton.

It was very difficult for Shaun. He was never included. He got the distinct impression they tried to keep him away from the Prime Minister. It got to a point where Shaun just stopped saying things because it was just getting him in trouble. There was even one week where he decided not to go into the office because he wanted to see if they would even notice. They didn’t. None of them.

Elsewhere, in an anecdote that Ed Miliband's team will already be considering how best to deploy at PMQs, we learn that Bailey was "horrified" when US pollster Frank Luntz visited Downing Street and asked Cameron's advisers "what kept them awake at night". The friend explains:

The pollster asked them what kept them awake at night and they didn’t even have the wit to understand that he meant it was the electorate.

When the pollster pointed that out to them, they literally said, 'Nothing keeps us awake’. How can you be advising people and nothing keeps you awake? Then someone said 'school fees’.

Here's how Labour's Michael Dugher has responded tonight:

"Once again David Cameron has shown that he is in complete denial about the cost of living crisis facing millions of hard-pressed families thanks to his Government's failure.

"When even one of his own advisers dares to point out some home truths, they are immediately shunned in favour of yet more old school chums and yes men.

"The idea that private school fees is the only thing keep David Cameron's clique awake at night tells you everything you need to know about this Government.

"This is a Prime Minister that takes being out of touch to a whole new level".

Some will dismiss all of the above as the usual grumblings of an out-of-favour adviser, but the fusion of race and class is toxic for Cameron. As pollsters regularly attest, now, more than ever, the Conservatives are viewed as "the party of the rich" and it's worth remembering that the Tories received just 16 per cent of the ethnic minority vote at the last election. In an acknowledgment that the party still has a race problem, there has long been talk of Cameron delivering a speech on the subject, in which he would repudiate Enoch Powell's "rivers of blood" speech and Norman Tebbit's "cricket test", the memory of which still hinders support for the Tories among ethnic minority voters. But for now, the Prime Minister would do well just to stem the tide of leaks from his party.

Update: Never blame the King, always blame his advisers. Here's how Bailey has responded on Twitter.

P.S. If you haven't already, do pick up this week's NS to read Jason's cover story on Cameron's clique and how "the old ruling class became the new ruling class", including his interview with Eton headmaster Tony Little (read some web-only extracts here).

Shaun Bailey, who stood for the Conservatives in Hammersmith at the last general election, with David Cameron.

George Eaton is political editor of the New Statesman.

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.