How Osborne backed down on an RBS firesale

Having previously briefed that Osborne was planning a pre-election give-away of shares, the Tories changed tack after Balls's intervention.

It's now thought unlikely that George Osborne will use his Mansion House speech tonight to announce plans for a quick-fire sell-off of RBS, but that's not what the Tories were briefing a few months ago.

As recently as February, it was reported that Osborne had ordered Treasury officials to plan for a pre-election give-away of shares in the bank, with a source telling the Independent: "One of the options could be to put it in our manifesto – but then Labour could do that as well. Wouldn't it be much better if voters were getting a check for £400 a few months before election day?" Another Treasury figure suggested that selling the shares at a loss would be better than the "political headaches" associated with retaining them. A few days later, David Cameron confirmed that the government was examining the "interesting" idea of distributing shares to taxpayers and was reported to have ordered RBS executives to "accelerate" preparations for a pre-2015 sell-off. 

Then, in May, a minister close to Osborne suggested that it was "unrealistic" to expect the RBS share price to return to its 2008 level in the near future and that the government may have to sell the shares while they were "under water". Later that month, speaking to reporters in New York, Cameron refused to rule out selling the shares at a loss and said he was open "to all ideas and proposals".

It was soon after this, on 27 May, that Ed Balls intervened, warning in an interview with the Times that a loss-making firesale would "add billions to the national debt" and urging Osborne not to put "politics before economics". Osborne was later reported to be planning to use his Mansion House speech  to set out his strategy for an RBS sell-off, with the Treasury examining proposals from Policy Exchange on a share give-away.

But by mid-June, the government had started to rapidly shift its position. The Treasury insisted that it had no fixed timetable or share price in mind and Cameron remarked that taxpayers were "more interested than getting their money back" than the timing of a return to the private sector. Having previously talked up the possibility of Osborne unveiling plans for an RBS sell-off in his Mansion House speech, the Treasury now suggested that the speech would focus on the sale of Lloyds' shares and would not set out a firm timetable for privatisation for either bank. Then, on 18 June, Osborne himself told the Today programme that he wanted to make sure that "the taxpayer gets value for money" and that the return of RBS to the private sector was "a matter for the market". Having previously expressed a bias in favour of an early sell-off, the Chancellor had backed down, heeding the warnings of Balls and others that a firesale was not in the public interest. 

Score this one for the shadow chancellor. 

George Osborne leaves 11 Downing Street earlier today. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Ariana and the Arianators: "We really are like a family"

The pop star provides her fans with a chance to express themselves joyfully - their targeting was grimly predictable.

Ariana Grande’s concert at Manchester Arena on 22 May began like any other. Children and teenagers streamed through the doors wearing pink T-shirts, rubber wristbands and animal ears (one of Grande’s signature looks). They screamed when she came on stage and they sang along with every song. It was only once the music had ended, and the 20,000-strong audience began to leave the venue, that the horror began – with a bomb detonated at the main entrance.

The show was just one date on Grande’s Dangerous Woman tour, which began in Phoenix, Arizona in February, moved across the United States and Europe, and had stops scheduled for South America, Japan, Australia and Hong Kong. (Since the Manchester attack, Grande has suspended the tour indefinitely.)

Since releasing her debut album in 2013, Grande has successfully transitioned from teen idol to fully fledged pop star (all three of her studio albums have sold over a million each) with a combination of baby-faced beauty and Mariah Carey-style, breathy vocals. Her most popular records are bubblegum pop with a Nineties R’n’B influence, a combination also expressed in her fashion choices: Nineties grunge meets pastel pinks.

She entered the limelight at 16 on the children’s TV programme Victorious, which ran on the Nickelodeon channel, pursuing her musical ambitions by performing the show’s soundtracks. Many of the young people who grew up watching her as the red-haired arts student Cat Valentine on Victorious would become fans of her pop career – or, as they call themselves, the Arianators.

As she outgrew her child-star status, Grande’s lyrics became more sexually suggestive. Recent songs such as “Side to Side” and “Everyday” are more explicit than any of her previous hits. She has repeatedly insisted that young women should be able to speak openly about sex and feel empowered, not objectified.

“Expressing sexuality in art is not an invitation for disrespect,” she tweeted in December. “We are not objects or prizes. We are QUEENS.”

Grande also has a reputation as something of a gay icon. She has advertised her records on the gay dating app Grindr, headlined shows at Pride Week in New York, and released a single and a lipstick to raise money for LGBTQ charities.

Cassy, a 19-year-old film student and fan, told me the fanbase is “made mostly of young women from 14-23, but I run into guys and non-binary fans all the time.”

“It’s pretty well known that Ariana has got a LGBTQ+ fan base. She’s so outspoken about it and that’s what draws us to her. Because she’s accepting of everyone, no matter who you are.”

Like many child actresses-turned-pop star, Grande has a fan base skewed towards the young and female: teenage and pre-teen girls are by far the majority of her most dedicated supporters. A writer on the Phoenix New Times described the typical Ariana Grande crowd as “pre-tween, tweens, teens, young gay (and fabulous) men, moms with cat ears, and multiple candidates for father of the year”. The Arianators form tight-knit groups on social media. I spoke to several over Twitter after the attack.

Arena concerts, which often have more relaxed age restrictions than nightlife venues, have long been a safe space for children, young people and teenage girls. They provide a secure place for concert-goers to dress up, experiment, play with burgeoning sexualities, dance, scream and cry: to flirt with an adult life still slightly out of reach. Glitter-streaked tears stream down the unapologetic faces of fans touched by an emotion bigger than themselves. It is appalling, if grimly predictable, to see children, teenage girls and young gay men targeted by agents of regressive ideologies for expressing themselves so joyfully. On 23 May, Isis claimed the attack.

Andréa, a 17-year-old fan from France, told me about her first experience of a Grande concert. “It was incredible,” she said. “Everyone was so kind, excited and happy. We really are like a family.”

The fans are devastated by Monday’s bombing. Thousands of messages appeared on social media to commemorate those who lost their lives. “As an Arianator,” Alexandre, aged 16, told me, “I’m really sad and I’m scared.”

“We’re all taking it really hard,” Cassy said. “We’re a family and we lost 22 members of that family last night.”

Ariana began her gig in Manchester with the song that has opened every night of her current tour: “Be Alright”. In it, she repeatedly reassures the crowd, “We’re gonna be all right.” It’s a phrase that her fans are clinging to after the attack. So, too, are the lyrics of “Better Days”, by Grande and her support act Victoria Monét, which was also performed the night of the explosion. “There’s a war right outside our window,” the words go. “I can hear the sirens . . ./I can hear the children crying . . ./I’m hoping for better days . . .”

“It’s hit us all very hard because we’ve lost some of our own,” said one Arianator who runs a popular Twitter account about the tour. “People we interacted with on a daily basis. People that just wanted to have a night of fun. These are dark times, but we are looking forward to better days.”

Anna Leszkiewicz is a pop culture writer at the New Statesman.

This article first appeared in the 25 May 2017 issue of the New Statesman, Why Islamic State targets Britain

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