David Cameron speaks during a visit to Kingsmead School on February 2, 2015. Photograph: Getty Images.
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PMQs review: Cameron rides roughshod over Miliband again

The Tory leader's exuberant confidence allowed him to dominate the chamber. 

The Tories are purring with confidence at the moment. Their dominance of the media war and new-found unity means that they are scenting victory (even as the polls continue to show them neck-and-neck with Labour or slightly behind). 

The evidence of this was on display at today's PMQs. Ed Miliband asked David Cameron about preferential tax treatment for hedge funds (they are not required to pay stamp duty on their share transactions), linking the policy to the Tories' industry donors. But Cameron swatted his question away with effortless superiority. He questioned why "for 13 years, during many of which he was in the Treasury, they did absolutely nothing about this", before declaring, in reference to Ed Balls's Newsnight interview: "I have to say I'm delighted he's raised the economy on the morning after his shadow chancellor couldn't name one single business leader who backed Labour." 

At this point, the well-drilled Tory backbenches began chanting in unison: "Bill, Bill" and "Where's Bill?" (the first name of the business leader Balls almost remembered). Their barracking  persisted throughout Miliband's second question and they were rewarded with a first-rate Cameron gag: "Do you know what he said, Mr Speaker? He said: 'Bill Somebody.' Mr Speaker, Bill Somebody’s not a person; Bill somebody is Labour’s policy." Cheers erupted behind him. The Labour benches, meanwhile, already becalmed by the grim news from Scotland, were deathly silent. 

Miliband fought valiantly on, pressing Cameron to answer, but the PM had too much ammunition in reserve: the confusion over Labour's tuition fees policy, the tax avoidance of their donor John Mills, even the news that "the person who wrote that 'Things Can Only Get Better' says it no longer applies to Labour." The only moment of relief for Miliband came when he archly observed, as George Osborne sought to brief Cameron on tax policy: "You can't help him, George, you're too far away". 

But while the Labour leader was routed in the chamber, he can hope that Cameron's evasiveness hurts the PM in the country. His refusal to pledge to close the tax loophole (as Labour has done) risks reinforcing the Tories' reputation as the party of the rich (the greatest barrier to a majority). As they deride Labour's weaknesses, the Conservatives would do well not to forget their own. 

Outside of the main exchanges, a notable moment came when Labour MP and shadow justice minister Dan Jarvis questioned Cameron about support for a solar panel business in his Barnsley constituency. The respectful silence with which he was heard was a good example of why many believe he could one day lead his party. 

George Eaton is political editor of the New Statesman.

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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.