Why there'll be no U-turn from Clegg on green taxes

The Deputy PM vowed in his conference speech that the Lib Dems "will keep this government green" - and he meant it.

ConservativeHome thinks the Lib Dems are going to cave in to the Prime Minister after his rash policy-on-the-hoof announcement at PMQs yesterday – and start taking the green costs out of energy bills.

To quote the Tory blogger Mark Wallace, "they [the Lib Dems] know their position as the people preventing energy bills from being cut will not be tenable for long."

I think Mr Wallace is wrong.

Firstly, he forgets that this isn’t 2010 or even 2011. We’ve now crossed the rubicon and the differentiation strategy, so long promised, is in full swing. Hence the reversal on secret courts, clarification on Free Schools, the lists of Tory 'initiatives' we’ve stopped (the 'racist vans' campaign being the latest). That process is going to accelerate and the chance to expose the paucity of thinking from the Tories on energy is too good to miss. When David Cameron encouraged everyone to hug a husky, I had no idea he was actually outlining his whole energy policy.

Secondly, 75% of folk don’t blame green taxes for their energy bills. I suspect the 25% of people who do already vote Tory or have fled to UKIP. This doesn’t seem like much of a Lib Dem vote winner, so the politics don’t work. And thirdly, its a bad idea anyway. Around half the money raised in green energy taxes goes on schemes to help those in fuel poverty to minimise waste. I’d have said that making the poorest in society choose between heating or eating was a rather more "untenable policy position".

But that’s not really why the Lib Dems won’t be rolling over to get the Prime Minister out of a hole. It’s because just 36 days ago, Lib Dem conference was told:

"And if there’s one area where we’ve had to put our foot down more than any other, have a guess. Yep, the environment.

"It’s an endless battle; we’ve had to fight tooth and nail; it was the same just this week with the decision to introduce a small levy to help Britain radically cut down on plastic bags.

"They wanted to scrap Natural England, hold back green energy. They even wanted geography teachers to stop teaching children about how we can tackle climate change. No, no and no – the Liberal Democrats will keep this government green."

Nick Clegg’s words. No U-turning from there.

Mr Cameron, it might be time to pull on an extra hoodie. It’s the only energy policy you’ve got left.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

Nick Clegg speaks at the UN General Assembly on 27 September 2013. Photograph: Getty Images.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

Getty
Show Hide image

When Theresa May speaks, why don’t we listen?

Not many Prime Ministers have to repeat themselves three times. 

Theresa May is the candidate of Brexit and market panic. She ascended to the highest office because, in the fraught weeks after Britain’s vote to leave the European Union, she represented a safe haven for nervous Conservative MPs, the dependable family mutual that remained open while all along the Conservative high street, her rivals were shutting up shop.

Her popularity, as revealed in high poll ratings outside Westminster, too, owes itself to the perception that she is a serious politician in serious times, happily installed atop the ship of state to guide it through the rocky waters of Brexit negotiations.

May’s premiership has been defined by market panics of a different kind, however. The first is in the currency markets, where sterling takes a tumble whenever she pronounces on Britain’s future relationship with the European Union, falling both after her conference speech on 2 October and after her start-of-the-year interview with Sophy Ridge on 8 January. The second is in the opinion pages, where May’s stock oscillates wildly from bullish to bearish.

In the first months of May’s government, she was hailed as an Anglo-Saxon counterpart to Angela Merkel: a solid centre-right Christian democrat who would usher in a decade of conservative hegemony. More recently, she has been compared to Gordon Brown because of her perceived indecisiveness and repeatedly accused of failing to spell out what, exactly, her government’s Brexit objectives are.

In a symbol of the splits on the right between the Brexiteers and Remainers, the Economist, that bible of free-market globalisation and usually a reliable tastemaker as far as Westminster groupthink is concerned, began 2017 by dubbing the Prime Minister “Theresa Maybe”. Though May’s Downing Street is less concerned with the minutiae of what goes on in the public press than David Cameron’s, the contention that she is indecisive was a source of frustration.

There is an element of truth in the claim that May still views the world through a “Home Office lens”. One senior minister complains that Downing Street considers the Ministry of Justice as a “rogue outpost” of May’s old stomping ground, rather than a fully fledged department with its own interests and perspectives.

Yet even the most authoritarian of home secretaries would struggle to secure a conviction against May on the charge of opacity as far as her Brexit approach is concerned. She has hit the same grace notes with the reliability of a professional musician: Brexit means freedom from the jurisdiction of the European Court of Justice and control over Britain’s borders, two objectives that can only be achieved as a result of Britain’s exit not only from the EU but also the single market. This was confirmed on 17 January in the Prime Minister’s Lancaster House speech in London.

David Cameron used to say that he would never have “a people”. Certainly, there is no Cameroon tendency in the country at large to match the generation of council house residents that became homeowners and lifelong Conservatives because of Margaret Thatcher and Right to Buy. However, there is, unquestionably, a Cameroon people or faction to be found at almost every rung of London’s financial services sector or at editorial meetings of the Economist, though it as at the Times and the Sun where the treatment of May is at its most noticably rougher than in the Cameron era. 

Michael Gove, her old rival, is not only employed as a columnist by the Times; he enjoys the confidence and admiration of Rupert Murdoch. That the Times secured the first British interview with Donald Trump was a coup for Murdoch, an old associate of the president-elect, and for Gove, who conducted it. It left May in the unlovely position of making history as the first prime minister to be scooped to a first meeting with a new American president by a sitting MP in modern times. It also attested to a source of frustration among May’s allies that she is, for all her undoubted popularity, still ignored or doubted by much of the right-wing establishment.

That condescension partly explains why her words are often listened to briefly, acted on hastily and swiftly forgotten, hence the pound’s cycle of falling when she makes an intervention on Brexit and rising shortly thereafter. The Lancaster House speech was designed to break this pattern. Downing Street briefed the most potent paragraphs at the weekend so that the markets could absorb what she would say before she said it.

As a result, the pound rallied as May delivered her speech, which contained a commitment to a transitional deal that would come into effect after Britain has left the EU. Some financiers believe this arrangement could become permanent, which once again demonstrates how much they underestimate May’s ability to enforce her will.

Being underestimated by Cameron’s people, in Westminster and the City, has the unintended effect of shoring up Theresa May’s position. A prolonged and sustained bout of panic would increase the pressure for a soft landing, but its absence makes it harder for Labour to oppose her effectively, although it has largely acquiesced to the Tory plan for Brexit, at least as far as membership of the single market is concerned. 

Yet for all the plaudits that the Prime Minister’s Lancaster House speech attracted, for all her undoubted popularity in the country, she is in the anomalous position of being a Conservative Prime Minister who has priorities on the European stage other than the preservation of the City of London and to whom Rupert Murdoch is not a natural ally.

As such, she may find that her deadlier enemies come from the right.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.