If the Tories lose the next election, Clegg must leave with them

To allow the Liberal Democrats to swap sides without incurring any penalty would offend the essential order of our democracy.

I’ve nothing against dogs in general. In fact, I’ve always fancied owning a Staffy. But I’m not fond of poodles. So I nearly choked when Ed Balls hinted at a possible liaison with Nick Clegg, the biggest poodle of all. Our shadow chancellor thinks he could work with the Lib Dem leader in a coalition. It seems Nick and Ed have had a cosy chat recently, and Ed is acting like he’s found a new best friend. They’ve even been indulging in playful teasing on Twitter.

What really gives me the shivers is Ed’s bold assertion that he has “no reason to doubt [Clegg’s] integrity.” Really? What about the “small” matter of tuition fees where Nick betrayed millions of voters? Or his U-turn on reducing the number of digital gambling machines in bookies? One minute he’s backing a campaign to introduce curbs, the next he’s refusing to act, no doubt after a quiet word from the prime minister.

Besides, the shadow chancellor is getting ahead of himself by talking about a coalition at this stage in the game. My personal position is that it’s always preferable to have a decisive outcome in a general election. So it’s a mistake for Labour to get distracted by any talk of coalition. Let’s not give voters a sense of defeatism before the 2015 election posters have even been printed. Instead, let’s focus on fighting as hard as we can for a majority by listening to the concerns and needs of voters. Obviously Labour has a duty to try and form a government if the voters of the UK deliver an indecisive result by some quirk of electoral arithmetic. Yet if the Tories are thrown out of office, it is abundantly clear that Nick Clegg is the person most responsible for propping up a failed administration that did not carry a decisive mandate.

One of the strengths of our electoral system is this: you can heave a party out of office. To allow the Lib Dems to swap sides without incurring any penalty, in effect, feels like it offends the essential order of our democracy. Someone will have to take responsibility for the failures of the current coalition before the Lib Dems could form a coalition on a very different programme of renewed national purpose. 

The man with shared responsibility for those failures is Nick Clegg. Which is why he should go as Lib Dem leader as the price for coalition. There are plenty of people who could take his place. I'm probably in a minority of one in thinking that the Lib Dems should bring back Charlie Kennedy. But there are others who can hold down the job of Lib Dem leader. Vince Cable would be a good choice for example, or Danny Alexander even.

I know Nick’s supporters have tried to promote him as an attack dog rather than a poodle. But let’s face it, he shouldn’t be anyone’s first choice of a mutt they can count on to protect their rights. Clegg has become Mr Toxic, a leader tainted by association with David Cameron and the Tory leader’s “kick the poor, protect the rich” policies. His own MPs are clearly depressed by his lapdog-like behaviour. Sarah Teather has even decided to stand down because of the direction in which her leader is taking the party.

If we do end up without a majority at the next election, then Nick Clegg isn’t the right Lib Dem to go into government with. It’s a price this country shouldn’t have to pay again for democracy.

David Cameron and Nick Clegg visit Wandsworth Day Nursery on 19 March 2013 in London. Photograph: Getty Images.
Tom Watson is the MP for West Bromwich East, and Deputy Chair of the Labour Party. He is also an avid gamer and campaigner for media integrity.
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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.