David Cameron speaks at the British curry awards at Battersea Evolution on November 25, 2013. Photograph: Getty Images.
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Liberals are well served by the Conservative Party

With each week, the party is giving more power and responsibility to individuals to shape their own destiny - the essence of liberalism.

Which political party in Britain should you vote for if you are a liberal? Especially after the last week, it seems the Conservative Party is your best choice. The Conservative Chancellor announced a radical policy in the Budget that retirees will now have greater freedom on how they take their pension, liberated from being shackled to a pitiful annuity. Labour, bewildered, is still working out whether it supports this policy, whether it can trust people to manage their money properly.

The Conservatives also press ahead with the progressive raising of the personal tax allowance, which Lord Saatchi has campaigned for for over a decade, to lift millions of low-paid workers out of tax. And this Saturday, thousands of same-sex couples will be celebrating, as they now have the right to marry thanks to legislation introduced by this Conservative-led government.

These are just a handful of examples of the granting of greater power and responsibility to individuals and institutions to shape their own destiny, the essence of liberalism. In recent years, the Conservatives have advocated several liberal policies: a referendum on membership of the EU, giving headteachers more say on who they recruit and how much they pay, allowing nurseries the flexibility to prioritise quality over quantity of staff, and enabling a wider range of organisations – including private and voluntary ones - to tender for the delivery of services including in the NHS. But both the Liberal Democrats and Labour have opposed all of these.

This is not mere cross-dressing or some tectonic political shift. The Conservative Party has in fact had a long-term relationship with liberalism: economic, social and political. Lord Liverpool’s administration in the 1820s pursued ambitious economic liberal reforms: custom duties were relaxed, monopolies limited and restrictions on exports abandoned, an agenda that cumulated in the repeal of the Corn Laws under Sir Robert Peel in 1846. Slavery was abolished by the Tory William Wilberforce and Lord Shaftesbury introduced the Factory Acts, granting basic rights to workers in tough conditions. Under the premiership of Benjamin Disraeli, the vote was extended to millions of skilled working class men. In 1928, the Conservative prime minister Stanley Baldwin passed legislation that gave all women the vote.

For most of the 20th century, Conservatives became the champions of freedom as socialism advanced and the old Liberal Party declined. In fact, some factions from the latter gradually merged with the Conservatives. Until 1968, the National Liberal Party allied with Tories at a constituency level, with joint candidates such as Michael Heseltine. The Liberal Unionist Party, a break-away group that opposed Irish Home Rule, was first in a coalition with the Tories, then their leader Joseph Chamberlain finally agreed to join the Conservatives formally in 1912. Nick Clegg talks very rarely, and only briefly, about Chamberlain; touchy subject, seemingly.

Now, it is of course true that all three main political parties have liberals in their ranks and leadership team. British policymaking has been greatly enriched as a result of this sprawl. But political parties are coalitions themselves: liberals have to negotiate with others in their party who have different philosophical affiliations, and they may find themselves on the losing side in the internal battles over policy and vision. This seems to be happening too often in the Liberal Democrats and Labour at the moment.

Big challenges confront us: an ageing population, climate change and a race with emerging economies to produce highly skilled workforces. The pressures on the state will be unsustainably high, particularly when Britain has to remain a low-tax, competitive economy. We will need a strong dosage of economically liberal ideas to meet these challenges: for example, alternative ways of financing crucial public services such as education and healthcare, including greater contestability in commissioning, loans-based financing and social investment. The Tories to date have been most engaged and enthusiastic about these sort of ideas. Only they, at the moment, seem to have the appetite to pursue the economic liberal agenda we desperately need in the decades ahead.

Yes, liberals in the Conservative Party have to fight their own battles. And their liberalism must be tempered too by conservatism, a philosophy that rightly roots individuals in relationships and social custom. On some policy areas, liberal conservatives have lost: on immigration, for instance, where the party pursues a UKIP-lite message, all caps and clampdowns, endangering national and cultural enrichment.

Liberals are well served by the Conservative Party. For the moment. The liberal parliamentarians, policymakers and activists within it must keep fighting. For a brighter future for the Conservatives lies not in being a refuge for those angry and disappointed with change, but as a home for hopeful younger generations who increasingly identify as liberals.

Ryan Shorthouse is the Director of Bright Blue, a think tank for liberal conservativism 

Ryan Shorthouse is the Director of Bright Blue, a think tank for liberal conservativism 

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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.