Michael Heseltine arrives at St Margaret's Church to attend the funeral of Tony Benn last week in London. Photograph: Getty Images.
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Exclusive: Michael Heseltine: EU referendum will have a "chilling effect" on business

Conservative peer also says that Britain will join the euro, that UKIP is a "racist" party and that Boris Johnson shouldn't stand for parliament before 2016.

At 81, Michael Heseltine retains the energy and lucidity of a man two decades younger. He has recently acquired full control of Haymarket, the publishing group he founded in 1957 and that earned him his estimated £250m fortune, and an office in the Treasury, where he serves as a wise elder to cities minister Greg Clark. He remains as keen as ever to have his say on the issues of the day, not least Britain's membership of the European Union. I recently interviewed him for the NS (read the full piece here), and here are the highlights of our conversation.

EU referendum: "chilling effect" on business

If, as Heseltine expects, David Cameron remains prime minister after the next election, a referendum will be held on EU membership by the end of 2017. It is a decision, he warned, that will have a "chilling effect" on business.

It will [have a chilling effect], this will be one of the arguments, an important argument. And industry is beginning to say it ... serious industrialists and our allies - America, Germany - are beginning to express their concerns. This will become a much more articulate debate as time goes on.

He dismissed Cameron's decision to promise a referendum as an act of party management.

“David Cameron is leader of a party and all parties are coalitions and he has to make a balanced judgement. I believe in Britain’s self-interest being pursued through a European agenda, I’m not in favour of referenda on this or any other subject. I know perfectly well that the only referendum we had on the subject was to get Harold Wilson out of a mess in 1975, it wasn’t a strategic ‘we must consult the people’ activity, it was because he had a split party and the only way to reconcile that was to have a referendum. It’s a time-honoured device, but my party criticised at the time and I still, in perhaps a rather naive way, believe the things today that I believed 30 or 40 years ago.”

Britain will join the euro

After Heseltine mocked the eurosceptics for predicting that the economic crisis would result in the break-up of the euro, I asked him whether he believes that Britain will join the single currency. He replied:

Oh yes, one day, one day. We have resisted all these European ventures in my life, we tried to keep out in Messina in ‘55, that was a very bad decision. Then we joined on terms which were not to our liking but were the best we could get. But we tried to compete with them with EFTA, now of course virtually the whole of EFTA has joined the European Union. Margaret Thatcher was no European but she signed the biggest sharing of sovereignty in British history called the Single European Act, she was quite right to do so.

Of the eurosceptics, he said: “What would be quite amusing is to collect the headlines and speeches from the last three years. They tell their own story: they have a dream, which is to get out of Europe, they use the dream to create the headlines and the headlines turn out to be rubbish ... If you think of what they predicted was going to happen to Europe as a result of the euro ...  Day after day, week after week, in the small print, I read Mr [George] Soros is now putting billions back into the Spanish economy, I’d rather trust him.”

UKIP: "There is a racist undertone"

It is the outfit that Heseltine contemptuously refers to as the "UK Isolationist Party" that has driven much of the debate over the EU and immigration. Recalling that he was "the first Conservative to criticise Enoch Powell", he compared Ukip to far-right parties past and present.

“The racial overtones that are within the Ukip movement have got the same motivation [and] psychological impact as Mosley in the Twenties and Thirties, as Powell in the Sixties, Le Pen in France, the hard right in Holland and in Germany. It’s all the same stuff.

He stood by his description last year of the party as "racist".

There is a racist undertone, there’s no question about it.

Boris Johnson: he shouldn't stand for parliament before 2016

The politician most often compared to Heseltine is Boris Johnson, who succeeded him as MP for Henley and who shares his voluminous mane, overweening ambition and love of grand projets. After Cameron’s declaration that he wants Johnson back "on the pitch", Westminster is rife with speculation that the mayor could return to parliament in 2015, leaving him free to stand in any post-election Tory leadership contest. But Heseltine, who failed in his ambition to become prime minister after the fall of Margaret Thatcher ("He who wields the knife never wears the crown," he presciently told New Society in 1986), advised Johnson to wait until after he has completed his second term as mayor in 2016.

He’s obviously going to fight to help Cameron to win, and so he should. I’m totally convinced that he will do everything he can. I think, if I was him, I would be inclined to say: 'I was elected to be mayor of London until 2016; I gave my word to London; I will stick with my word.'

I think that Boris, in his own interests, and he’s fully entitled to see it in his own interests, wants to leave a mark of reliability and dependability and trust and keeping faith with London. After all, it’s 20 per cent of the electorate. That would be an important thing in that calculation. I think he can do everything he needs to do to help the Conservatives. And of course whenever he wants to come back to the House of Commons, he’ll get a seat.

I asked him whether he believed Johnson would make a good prime minister. He replied: "I’m not going to get involved in trying to speculate on that. He will certainly be a candidate, and a perfectly credible candidate, but there are other candidates and one or two obvious people have got very considerable qualifications as well. I’m not going to get involved in being on one side or another. I’m pleased that the Tory party has such a rich seam of talent available to it whenever David Cameron decides to go, which I don’t think will be for some time."

George Eaton is political editor of the New Statesman.

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.