David Cameron: The Good European

The PM sees the EU as part of the solution, not the problem for the UK economy - a brave position to take as leader of today's Tory party.

Well that’s me told. Back in January, a couple of weeks before David Cameron delivered the speech in which he first promised an in/out referendum on Britain’s European Union membership, I wondered whether the Prime Minister’s “Global Race” story was pro-EU or anti.

It could go either way (which is, I suppose, the purpose of a plastic slogan). The demands of creating slim-line, super competitive, non-bureaucratic, low tax economy might militate against the onerous obligation to run every decision through Brussels. Or, the prospect of a future in which the rules of trade will be dictated by continental Titans – the US, India, China – might make it imperative that the UK amplify its power in the only forum that can match those beasts for market heft, which is the EU. Which way would Cameron jump?

Now we have the answer, and it isn’t going to go down well on the right of the Conservative party. In a speech today on the topic of Britain’s role in the world, Cameron makes it clear that he sees EU membership as a race-winning supplement not an obstacle:

Another key part of that effort is our place at the top table. At the UN. The Commonwealth. NATO. The WTO. The G8. The G20. And yes – the EU. Membership of these organisations is not national vanity – it is in our national interest. The fact is that it is in international institutions that many of the rules of the game are set on trade, tax and regulation. When a country like ours is affected profoundly by those rules, I want us to have a say on them. 

This should be an uncontroversial statement. There is no credible model of Britain’s relations with the rest of Europe that doesn’t require deep integration with the single market – the agreed space for internally consistent trading rules, allowing free cross-border movement of goods and labour. The obvious way to make that arrangement work to the UK’s advantage is to be one of the countries at the negotiating table when new regulations are discussed. Leaving the EU would mean ditching the right to change the rules while, in most cases, still being bound by them. If you want to be all purist about the sovereignty issue, that sounds like being “out” involves a greater surrender of national autonomy than staying “in”.

Cameron will have been prompted to make this intervention by alarmed noises emanating from British exporters. Although business leaders are generally reluctant to get involved in political controversies, the message being passed to Downing Street is that wild speculation about the UK walking away from the EU table is most unwelcome. London’s diplomatic influence in Brussels is already waning with alarming speed.

Of course, the hardline sceptics see this as typical lily-livered Europhilia. The rest of Europe needs the UK’s market and wants to export to us as much as we want to export to them. A mutually beneficial deal, say the sceps, can be done that keeps the benefits of free trade and junks all the pseudo-state apparatus of legal and political integration. Besides, if the future of trade is with China, India and Brazil, why shouldn’t the UK strike out alone, in true buccaneering fashion, no longer “shackled to the corpse” – as some Tory MPs describe it – of a sclerotic, statist, debt-laden, enfeebled Eurozone. (What this argument likes to ignore is the way that Germany manages quite happily to sell six times as many goods to China as the UK while remaining entirely enmeshed in institutional apparatus of the EU. For more on that, and other rebuttals of the anti-EU case, I recommend this article by Katinka Barysch of the Centre for European Reform.)

The reality, of course, is that the anti-EU position begins with visceral, nationalist hatred of the whole project and then retro-fits libertarian ideas to make quitting sound economically feasible. It is to Cameron’s credit that he doesn’t play that game and that, ultimately, he recognises the long-term strategic advantages of active engagement in Brussels. Where it gets a bit awkward is if he follows that logic to ponder which powers he seriously wants to “repatriate” as part of his planned renegotiation of Britain’s EU membership.

If, as his speech today implies, he wants Britain’s role in Europe to be advancing an agenda to boost competitive reform within the single market – playing “global race” personal trainer to the rest of the continent – he won’t want to spend too much diplomatic capital demanding special UK exemptions from EU law to satisfy his insatiable back benchers. He knows that a British Prime Minister has better things to ask for in Brussels than concessions that Ukippers and Tory militants will in any case jeer as inadequate. By acknowledging today that participation in the EU project is part of the solution not the problem of British competitiveness, Cameron has finally outed himself as a “good European.” Very brave, Prime Minister.

David Cameron attends a press conference at the EU headquarters on May 22, 2013 in Brussels. 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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