Weeds grow outside the gate of an abandoned General Motors automotive assembly plant in Moraine, Ohio. Photograph: Getty Images
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How the Midwest was won

The US car industry went into a tailspin in 2008 just as Barack Obama was preparing to take office. His prompt action to save it — and Mitt Romney’s callous counter-proposals — may just win him this year’s election.

For 11 years, Stacie Steward commuted a hundred miles by car from Saginaw, Michigan, to the Sterling Heights Assembly plant outside Detroit. She is an electrician, in charge of maintaining 40 of the 700 robots at the plant, robots that make the 3,000 welds needed to construct the Dodge Avenger saloons that roll out of the three-million-square-foot plant and wait, gleaming in the hazy autumn sunshine, for trucks to take them away.

Right now, Sterling Heights is operational 22 or 23 hours every day, with only a couple of hours’ downtime for maintenance. When it’s running, a new car emerges every 60 seconds, like clockwork. I stand at the entrance with Steward and watch them come out. Tick, tock. A new blue car. Tick, tock. A new red car. But for several weeks in 2008 to 2009, just as Barack Obama was taking over from George W Bush on a tidal wave of hope and change, the whole industry, Sterling Heights included, shut down completely. “It was a dark time everywhere,” she told me. “There was no traffic on the roads.” She remembers a picket where staff from local grocery stores and bars joined the auto workers. “They were all getting laid off, too.”

In 2007, the US car industry had directly employed more than a million people; but in 2008 alone it shed a tenth of those and was on the brink of catastrophe. Opinion is split on the main reason for this. Some say powerful unions led to unsustainable workforce practices: at the beginning of 2008, workers for American car manufacturers earned considerably more than their counterparts at foreign-owned car firms – up to 20 per cent more – and enjoyed better benefits. Others say that the Big Three US car firms (Chrysler, Ford and General Motors) suffered from outdated strategy, concentrating on big SUVs and pick-up trucks when consumers were turning towards more fuel-efficient models. Whatever the reason, when the credit crisis rolled around, the auto industry in Michigan and Ohio was already struggling.

“When the economy started taking the tank in 2007 our hours got cut; the number of cars getting built got cut,” says Steward, whose plant is owned by Chrysler. “I got laid off. My unemployment from the state ran out twice. I went through two times when I was like: ‘Oh my God, I’m not going to get any money at all.’ When I saw Obama on TV say that he was going to give the loans [to GM and Chrysler], it was like – it was like heaven. Heaven.”

In the closing days of the Bush administration, December 2008, just days before Obama took office, it became clear that General Motors and Chrysler were unable to cope, and they were given $17.4bn between them in emergency loans to stave off bankruptcy, using money from the federal $700bn bank bailout fund.

This alone wasn’t enough. When Obama moved in to the White House, he assembled a presidential task force, led by the financier and “car tsar”, Steven Rattner, and the treasury secretary, Tim Geithner. On 18 February, GM and Chrysler requested bridging loans: $16.6bn for General Motors and $5bn for Chrysler. They received them, but by April both were entering bankruptcy procedures. The task force stepped in and forced a restructuring of both companies – some loans, a rearrangement of assets, a deal for Chrysler that sold a 20 per cent stake in the firm to the Italian car manufacturer Fiat as well as 68 per cent to the union retirement medical fund, and a government stake of 61 per cent in GM.

Today, both are back from the brink and the future is bright. The US treasury still holds 26 per cent of GM, but the company is negotiating for ways to buy back its independence from the taxpayer – and on 24 May 2011, Chrysler repaid the last of its loans, several years ahead of schedule. The company held a party to celebrate, at the Sterling Heights Assembly plant.

****

North-west Ohio is flat. Dead flat. The kind of flat where you can see for miles, but where the horizon is always close. Between the towns, the roads are arrow-straight. Out here, where it could be 30 miles to the nearest shop or the nearest school, a car is more than just a tool; it’s a necessity. A religion.

This is the middle of the Rust Belt. The name came about as the industrial era was waning in the latter half of the 20th century, when the steel and manufacturing industries were beginning to lose out for the first time to cheaper competitors overseas that were faster to adapt to circumstances and less enthralled with unionisation and workers’ rights. The cities built on steel started to decay.

Today, because of the government rescue, the Rust Belt is still the home of the American auto industry. To the north in Michigan, Detroit - Motor City - is its beating heart, and Ohio is its muscle.

About 848,000 people here do jobs that are directly dependent on or tied to the auto industry. The Chevrolet plant in Lordstown produces the top-selling Cruze. A gigantic Chrysler plant in Toledo makes the Jeep Wrangler and Jeep Liberty; another factory there makes gearboxes for GM. The cities of Dayton, Kettering and Sandusky are home to GM parts-factories. Euclid, Ohio, makes seat covers. Vandalia, Ohio, has a door panel assembly factory. Chrysler makes steering columns and torque converters in Perrysburg, Ohio.

Defiance, Ohio, is a small town about an hour south of Toledo, three hours south of Detroit, with a population just shy of 17,000. On its outskirts is Defiance Casting Operations, a two-million-square-foot steel foundry that casts engine blocks and piston heads for GM. It directly employs 10 per cent of the town’s population. Downtown, in a branch of the private members’ club the Fraternal Order of Eagles, a poker tournament is in full swing.

One of the players at the tournament is Chris Mendez, an ex-marine who now works at the foundry. Does he feel like Obama saved his job? “There’s no doubt in my mind,” he says. “He saved all our jobs. [Before the bailout came,] over half the people at the plant were laid off. I was laid off. When they happened, when we had word that GM was going to be OK . . . it was great. I was overjoyed. I’ve got three kids; when I was laid off they were terrified. I’ll do everything I can to support him – and make sure he gets re-elected.”

Is the bailout his main reason for voting? “Yeah.” How does he feel about Mitt Romney? “I don’t like him. I think he’s for the rich. I think he’s anti-union and anti-labour.” Will the bail­out swing Ohio? “I really think it will.”

Outside the club, an old man with a walking stick, wearing a battered Stetson, is smoking a cigarette with hands that shake. Rick Kantout is a Vietnam veteran and retired GM employee, and when I bring up Romney his response is venomous. “I think he’s a son of a bitch.” He spits on the ground. “Romney and the Republicans aren’t for the middle class. They’re for their own self-interest.”

The White House may sit on Pennsylvania Avenue, but the state that makes most difference to winning it is Ohio. The ultimate bellwether, it may return only 18 votes in the electoral college, but only two presidents since 1896 have won the presidency without it. That’s why the candidates are making such a play for the hearts of its voters; both of the main campaigns have spent more money on advertising here than in any other state, and spent vast amounts of time on the stump here, too.

Romney supporters have been celebrating positive national polling in recent weeks. The first findings after the initial presidential debate on 3 October, by pollsters of the Pew Research Centre, showed Romney leading among likely voters for the first time by 4 points – an extraordinary 12-point swing from their previous poll in September. Gallup, too, found a (less dramatic) shift to Romney after the debate, showing him tied with the president on 47 per cent, and a Reuters/Ipsos poll showed the same. But in Ohio Obama has held his edge: a CNN poll released on 9 October put him still 4 points clear of Romney.

Why is this? The answer can be found in an op-ed article Romney wrote for the New York Times in November 2008, condemning the bailout. “If General Motors . . . and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye,” he declared, with devastating hubris.

The statement has been used against him endlessly. At the vice-presidential debate on 11 October, Joe Biden repeated Romney’s words twice in full. Romney has counterattacked on the campaign trail by pointing the finger at Chinese currency-lowpegging taking American jobs, but that argument is failing to fly here – unemployment in the state, at 7 per cent, is lower than the national average of 7.8 per cent, and that also is falling. One in every eight jobs in Ohio depends on the auto industry. As the local reporter Jack Palmer tells me, “Certainly, the Osama Bin Laden is dead and General Motors is alive message” – one of Obama’s and Biden’s central campaign slogans – “could go a very long way.”

The Obama for America campaign has spent an astonishing $52.75m so far in Ohio, its highest spend on any state in the US. One omni­present advert runs footage of Romney defending his position on Detroit. “Yes, that’s exactly what I said,” he says, in footage taken from a television interview: “that headline you read... ‘Let Detroit go bankrupt’.” Over and over again, it repeats. The message is inescapable and, to people like Rick Kantout, irrevocably damning.

****

The United Auto Workers union has more than 390,000 working members and twice that many retirees, most of them here in Ohio and in Michigan. As it is restricted by law from using union funds to run political activities, it has a separately funded political wing, known as the CAP – the Community Action Programme.

The CAP boss in north-west Ohio is Joe Eureste. A lifelong union man, he started working for General Motors four days after graduating from high school in 1972 and has been there ever since. He has a deep sense of mission. “When people get fat and happy, they say it doesn’t matter,” Eureste tells me. “But it does. We have to make sure we keep it to the forefront that [the collapse of the auto industry] could have happened, and could happen again. A lot of people are appreciative of having their jobs, getting rehired. Our job is to make sure they don’t forget it.

“We were going to lose eight jobs in the community to every GM job lost. That’s a lot of people.” He laughs, and then refers to Romney’s old firm. “You were going to have your Bain Capitalists come in and pluck the meat off the bones, and discard pensions; how could they restructure otherwise? So when the government stepped in they helped us all survive.

“I keep telling people: make sure you remember who was on your side and who helped you. Some people have short memories. Our job is to make sure we don’t.”

In the parking lots that surround the vast steel fortress of the Defiance foundry are acres of Chevrolets, Buicks, Lincolns and Oldsmobiles, Fords and Cadillacs. I can’t see a single imported car. A bumper sticker on a GM pick-up truck says: “Out of a job yet? Keep buying foreign.” Opposite the main exit to the plant, a billboard carries the local Obama campaign’s favoured slogan: “Osama Bin Laden is dead. General Motors is alive.”

Dwight Chatham is the just-retired president of UAW Local 211, the union’s chapter in Defiance, which has 5,000 members – more than a quarter of the town – of whom roughly 3,500 are retirees. When I meet him at a coffee shop halfway between downtown and the foundry, I ask what would have happened if GM and Chrysler had been allowed to go under. He chews thoughtfully on a toothpick. “A lot of people would be out of work. A lot of people. I truly believe that if Obama hadn’t stepped in, the Defiance plant would have closed.”

What would that have done to the community? “It would have been devastating. Devastating. This is the largest plant in the county; it funnels a lot of money back in, to schools, the town. If it had closed –” he pauses, and shakes his head – “devastating.”

The chair of the Defiance County Democratic Party, Charlie Gray, grew up in a union household. “My father was the first shop committee chairman at this plant,” he says. “My mother was a union organiser.” I ask Gray if he thinks the bailout will help the president win votes. “It’s helped the president a lot. [People] realise what the situation would have been like without it.”

David Jackson, associate professor of political science at Bowling Green State University, 20 minutes south of Toledo, tells me that the bailout is a powerful influence on votes in the industrial north of Ohio. “It will definitely energise the union base. The bailout could be a real factor for turnout.”

That is crucial, he says. “This is looking like a turnout election, like 2004. It’s all about who can get their base out. [The bailout] will certainly get out the base for the Democrats.”

That’s important when you consider the diverse political make-up of Ohio as a whole. “Take the state of Ohio and draw the letter C on it in reverse, starting in Toledo,” Jackson says. “Going east along the top through Cleveland . . . that’s the section of the state where union membership is the strongest, the north part. In the 2010 election – a landslide year for Republicans nationally – the governor [Ted Strickland, a Democrat] came closest to re-election in the north.

“Then, going down the eastern border with Pennsylvania and West Virginia [in the old coal-mining areas of the Appalachian Mountains], that is Democrat as well, though in 2008 Obama underperformed Bill Clinton in those areas – because those are the working-class white voters he’s had trouble with.” The middle is more rural: conservative heartland, agricultural areas and wealthier towns. It is this diversity that makes Ohio such an important political indicator.

“The question,” Jackson says, “is can the union turnout in industrial north Ohio compensate for the Appalachian white Democrats [in the south and east] not turning out? That’s the question. I certainly think Obama has to be looking at it. Maybe it’s time he got Bill Clinton out campaigning for him down there.”

Not every GM employee is enamoured with the bailout, nor is it the most important political issue for everyone in the north. Randy Peabody is a metalworker for GM of nearly 39 years’ standing, and a proud Republican for “moral reasons”. “I don’t support Obama,” he explains, “and I think the investors got a bad deal. The workers were given the farm; they did really, really well out of it. The auto industry . . . I think the government ought to stay out of it.”

There is no doubt that the United Auto Workers did extremely well from the bailout – or at least escaped most of the hardships that unionised labour usually suffers in a bankruptcy. Gold-plated pensions and benefits were protected for all those retiring, and workers at General Motors still enjoy wages 10 per cent higher on average than those at their foreign competitors.

President Obama has been accused of fav­ouritism, even cronyism, with the UAW. In the bankruptcy of Delphi, a parts manufacturer for GM, UAW members were paid certain benefits while non-union workers – 41,000 of them – were not. Local car dealerships, too, were cut with brute speed during the bailout. But none of them would have stayed open if GM and Chrysler had been allowed to go bankrupt, and union workers have taken some hits: there is still a no-strike clause in force at Chrysler and GM plants. “I think if we had more time, we might have asked all the stakeholders to sacrifice a little bit more,” Steven Rattner, one of the architects of the bailout under Obama, confessed at an event in 2011.

“We didn’t ask any active worker to cut his or her pay. We didn’t ask them to sacrifice any of their pension, and we maybe could have asked them to do a little bit more.” He said that, nonetheless, he considered the bailout to have been very successful overall: “A happy ending.”

I am reminded of this while on hold to Solidarity House, the UAW’s regional headquarters in Detroit. The hold-music is a pop song by Kelly Clarkson. “What doesn’t kill you makes you stronger,” she sings. 

****

The Renaissance Centre, on the shoreline that separates Detroit from Canada, is a vast 1970s edifice of seven enormous towers topped with a five-storey-high General Motors logo. Around its base, Motor City skulks like a shadow. At the base of the central tower is a showroom filled with gleaming new Cadillacs and Corvettes.

Greg Martin is GM’s director of global communications. “I can’t wait until this election is over,” he tells me. “We’re in a position no other company’s ever been in before, where we’re a central part in a political debate.” He shrugs helplessly. “We just want to be a great car company. We don’t want to be a political football.”

The year 2011 was the most profitable in GM’s history – $7.6bn in net income, $150.3bn revenue, after ten consecutive quarters of profitability. A stock-market flotation in 2010 generated $13.6bn for the US treasury and reduced government ownership from 60.8 per cent to 32 per cent. The company has just invested $47m in making improvements to the Defiance foundry. Chrysler’s balance sheet, too, is looking better. This year, the company had its best September since before the 2007 financial crisis, with sales up 12 per cent on September 2011. The Dodge Avenger – made at the plant in Sterling Heights – is up 89 per cent to a record high. Chrysler is spending $850m to expand the site to include a million-square-foot body shop and a new paint shop.

The day I meet Stacie Steward there, it is “Obama Tuesday”, when the workers wear campaign badges and talk about politics, showing their support for the president. This isn’t union-organised: just ordinary workers showing grass-roots support.

“I’d say the feeling in my plant is probably 80 to 85 per cent in support of Obama,” she says, “but you always run into those people that are hardcore Republicans. That’s fine, it’s a democracy. But like I tell everybody: ‘You be what you wanna be, but you gotta think about your job when you go into that ballot box. Think about who saved your job.’”

I ask what she thinks of Mitt Romney. “How could he say he’d have let Detroit go bankrupt? How could his heart be there? I think he’s an elitist, and his heart doesn’t know what middle class is. He’s out of touch. He’s not evil; he has a good Christian heart. But he just don’t un­derstand what it’s like to be a regular working Joe Blow that gotta go to work every day. He just don’t get it.”

David Jackson at Bowling Green State University is a betting man. “I put money on sports, horse races, so why not politics?” He says his money is still on the president despite Romney’s recent poll boost. “I think it’s going to be a 2- or 3-point nationwide Obama victory and a slightly larger electoral college victory.”

He is unequivocal about his home state. “Obama will carry Ohio. It’ll be an election based on turnout, and they [the unions and the Obama campaign] have a better turnout operation. That’s something that’s really changed over eight years: [John] Kerry had a terrible turnout operation [in 2004]. But Obama doesn’t mess around with this stuff, and this – this is a turnout election.”

As I get off the phone, the ad spot is running again on the TV. The sound is off but I know the words by heart now. Most of the population of Ohio does. “Yes, that’s exactly what I said,” Romney is saying. On the screen he even seems to sag, but the punchline is as inevitable as ever. I read his lips: “Let Detroit . . . go bankrupt.”

Nicky Woolf is reporting for the New Statesman from the US. He tweets @NickyWoolf.

This article first appeared in the 05 November 2012 issue of the New Statesman, What if Romney wins?

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The Brexit odd squad

The Brexiters are resilient and have the support of some unlikely foreign allies. Can they really topple the political establishment and lead Britain out of the European Union?

Look at the troops arrayed on the Leave and the Remain sides in the June referendum and you might think that our continued membership of the European Union is assured. On the side of staying in the EU are Britain’s four living prime ministers, the International Monetary Fund, the Treasury, most members of the Labour and Liberal Democrat parties, the Trades Union Congress, the Confederation of British Industry, the governor of the Bank of England, the head of the NHS, Britain’s three largest trade unions and the US president. Leave has Boris Johnson, Nigel Farage and the contested ghost of Margaret Thatcher.

Yet few expect the final result of Britain’s In/Out referendum to be as asymmetric as that roll-call would suggest. At the top of the pro-EU campaign Britain Stronger in Europe, there is no doubt: it could lose.

So what – and who – is responsible for the unlikely appeal of Brexit’s “odd squad”? And how do they work together when their side is so fractious and its big personalities seem so uninterested in teamwork?

The story begins on the morning of 20 February, when David Cameron summoned his cabinet to announce the results of his EU renegotiation and ask his ministers to support Britain’s continued membership of the Union. Those who did left by the front door; the six dissidents were asked to leave by the tradesman’s entrance.

Nipping out the back were the full cabinet members Iain Duncan Smith, Michael Gove, Chris Grayling, Theresa Villiers and John Whittingdale, plus the employment minister, Priti Patel, who has the right to attend cabinet meetings. They soon reconvened at Vote Leave’s headquarters, a nondescript tower block in Westminster, where they posed with a giant sign bearing the campaign’s slogan “Vote Leave, take control” – a sight more reminiscent of a group of local councillors vowing to protect a bus lane than the upper reaches of the British political class.

Then again, the cabinet Leavers are not, on the whole, an impressive bunch. Villiers and Grayling were among the casualties of the formation of the coalition government in 2010, moving from their briefs to make way for Lib Dems, and both had to be content with junior posts until the 2012 reshuffle. Since then, Villiers has been a competent if uninspiring operator in Northern Ireland. Grayling was widely held to be a failure at the Ministry of Justice and now serves as Leader of the House of Commons, historically the antechamber between full cabinet rank and the wilderness.

As for Whittingdale, he is that rare creature in Whitehall: a secretary of state for culture, media and sport who does not regard the post as a stepping stone to bigger things. As the recent white paper on the future of the BBC showed, the golden thread of his thinking is scepticism: towards the EU, the BBC and regulation of the press. He was Margaret Thatcher’s last political secretary in Downing Street and, after becoming an MP in the 1992 election, he set up meetings between the former prime minister and his fellow new boys from the 1992 intake – meetings that John Major blamed for fanning the flames of Eurosceptic rebellion in the dog days of his premiership.

Priti Patel also has impeccable Eurosceptic credentials. She cut her teeth as a press officer to the Referendum Party, set up in a doomed attempt to secure an In/Out referendum in 1997. Following William Hague’s election as Tory leader and the adoption of complete hostility towards the single currency, she joined the Conservative Party, becoming an MP in 2010.

She is best known for contributing to Britannia Unchained, a series of essays by Patel and four of her fellow 2010-ers (including Dominic Raab, widely expected to run for the Tory leadership next time). The book was intended to provide the intellectual ballast for a revivified Thatcherism, though the only part that attracted headlines was the claim that British workers were “among the worst idlers in the world”.

This dubious crew of ministerial heavyweights has grown marginally more likeable since Duncan Smith’s resignation as work and pensions secretary. Yet it is not his six-year tenure as a minister but his two-year stint as Tory leader that has left the biggest mark on the Brexit debate, with his former hires among the loudest advocates for a Leave vote – including the founding editor of ConservativeHome, Tim Montgomerie, now at Gove’s old newspaper the Times. (In the unhappiest periods of Cameron’s first term, when the Prime Minister was frequently criticised by Montgomerie in that newspaper, Cameroons would mutter about the irony that one of their sharpest critics had served as chief of staff to the least successful leader of the Conservative Party in its history.)

As for Michael Gove, though he is loved by lobby journalists, he remains a hate figure in the country at large and particularly among teachers, as a result of his belligerent tactics during his time as secretary of state for education.

***

The last of the senior Brexit-supporting Tories didn’t leave through the back door that morning because he hadn’t yet declared his position. That came the next day, in a media scrum outside his home in Islington, north London.

The former mayor of London Boris Johnson is still Britain’s most popular politician, surviving crises and scandals that would have left others dead in the water. He is also the only politician whom the Remain campaign truly fears. But Johnson is not a wholly congenial presence among Britain’s Brexiters. Although he is a far more adept planner than his dishevelled appearance – or his paper-thin record at City Hall – would suggest, he can be difficult to manage. His  weekly Telegraph column has largely been turned to cheerleading for Brexit but Vote Leave’s biggest gun doesn’t always point in the direction its chief strategists would like.

During Barack Obama’s visit to the UK in April, Johnson became embroiled in a war of words in which he suggested that the president had an ancestral dislike of Britain because of his “part-Kenyan” heritage. Having made this racially charged argument in the Sun, he extended the story needlessly by giving a similarly robust interview to the Daily Mail, much to the frustration of staffers at Vote Leave.

So there you have it. An unpopular firebrand, an unsuccessful former Tory leader, four relative nonentities and a blond bombshell who is considered clever but uncontrollable. It is less a huddle of Big Beasts than a grotesque menagerie – and these are among the sensible, mainstream voices on the Leave side. The other politicians who can get on to the Sunday shows to talk Brexit include Nigel Farage, who is adored by the four million people in Britain who voted Ukip in last year’s general election – and hated by the remaining 42 million. Yet he is a national treasure compared to George Galloway, formerly of Labour, who secured just 37,000 votes in the mayoral election. An unkind observer might say that none of the Brexit-backing politicians can stop traffic: half of them because they are unknown and the other half because most people would quite like to run them over.

There are also few compelling figures from business, sport, entertainment and science backing Brexit. Ian Botham is a rare celebrity Outer. “Cricket is a game where you achieve the greatest success when you are confident in your own ability to go out and stand proud,” he wrote in the Sunday Times. “Britain has that spirit.” In April, a slew of acts withdrew from a gig in Birmingham after finding out that it was organised by Leave.EU. Only Phats & Small, whose last hit was in 1999, refused to pull out.

Then there’s the infighting. To give just one example of the ongoing civil war, Vote Leave – the officially recognised campaign group for Brexit – believes Farage is so toxic to its cause that it regards his invitation to appear in a TV discussion alongside Cameron as an establishment stitch-up. “ITV has effectively joined the official In campaign,” said a Vote Leave statement to journalists on 11 May, written by Dominic Cummings, the campaign’s director. “There will be consequences for its future – the people in No 10 won’t be there for long.”

***

In the light of all this, why are the pro-Europeans so worried? Many feel that the current campaign is beginning to remind them of a nightmare year: 2011, when Britain voted decisively to reject electoral reform by moving from first-past-the-post to the Alternative Vote (AV). Around the time of the 2010 general election, polls had shown that Britain was in favour of the change by a 27-point margin. But on 5 May 2011, more than two-thirds of voters said No to AV, which ended up more than 35 points ahead.

What undid the Alternative Vote was a ruthlessly effective campaign against it – one that was almost completely fact-free. No2AV focused relentlessly on the cost of a new voting system; poster after poster made reference to its illusory price tag of £250m. “He needs bulletproof vests,” intoned one illustrated with a picture of a soldier, “NOT an alternative voting system.” Another came with a picture of a baby: “She needs a new cardiac facility, NOT an alternative voting system.”

As one veteran of the pro-AV campaign recalled recently: “It was impossible to fight. How do you repudiate it without repeating it? We never found a way.”

That appeal to economic interests was so powerful that Vote Leave has come up with a similarly memorable figure: the £350m weekly cost of Britain’s EU membership. This has been debunked by fact-checkers such as Full Fact, which estimates that the UK pays roughly £9.8bn a year once money back is taken into account. Regardless, Vote Leave keeps quoting the figure – and no wonder, because the chief executive of Vote Leave is also the architect of No2AV’s crushing victory: a 38-year-old LSE graduate called Matthew Elliott.

Despite Vote Leave’s anti-politics flavour, Elliott is a Westminster insider and well connected in the wonk world. He is the founder of the Taxpayers’ Alliance, the most high-profile of a close network of think tanks that are a proving ground for a rising generation of right-wingers. The Taxpayers’ Alliance, the Institute of Economic Affairs and the Adam Smith Institute together form what one alumnus jokingly calls a “Sorbonne for neoliberals”.

Much of Vote Leave’s staff is drawn from another Elliott creation: Business for Britain. The group was set up ostensibly to lobby for David Cameron to renegotiate Britain’s membership of the EU but was in reality designed as a Leave campaign in utero. Accordingly, many of its early recruits have ended up moving across.

Elliott is regarded as having a keen eye for talent and for being generous with his time. At each organisation where he has worked, he has taken care to bring on promising protégés. Alumni of the Elliott school include Susie Squire, who spent two years at the heart of Cameron’s administration as press secretary; Nick Pickles, head of UK public policy at Twitter; and Dylan Sharpe, the combative head of public relations at the Sun. Most of his favourite employees have three things in common: libertarian politics, a cut-throat instinct and loyalty to him personally. Those who have worked for Elliott largely speak highly of him.

The same cannot be said for the second leading player in Vote Leave who has the Remain side worried: Gove’s former henchman Dominic Cummings. David Laws – who, as a junior minister, worked closely with Cummings when he was at Gove’s Department for Education – describes him as a “grade-A political Rottweiler”. “As well as being bright,” Laws writes in his memoirs, “Dom Cummings was also blunt, rude, impatient and tactless.” According to friends of both, without Cummings’s encouragement, Gove would have been a mostly silent presence in the Leave campaign because of his close friendship with Cameron.

The former special adviser’s commitment to anti-Europeanism is a long-held one – his first job in politics was at Britain for Sterling, which lobbied against Britain joining the European single currency in the 1990s. Thereafter, he worked for Iain Duncan Smith during his brief and unhappy leadership. A former staffer from that time remembers him as an “abrasive presence”.

After Duncan Smith’s removal as Tory leader, Cummings retreated to his native Durham, where he helped to engineer victory for the No side in the referendum on whether to give the north-east its own devolved assembly. It was the tactics used in that referendum – an endless focus on costs, coupled with personal attacks on the credentials of the Yes side – which were taken on and extended by Elliott during the AV contest. Those tactics are once again on display in this referendum.

That partly explains why, on the Remain side, Cummings is respected and feared in equal measure. Yet his confrontational approach often proves his undoing: for instance, he understood the importance of giving a cross-party sheen to Vote Leave (not least to secure the official campaign designation), yet his conduct led to the departure of the Eurosceptic Labour MP Kate Hoey. “We live in a world where people get things by being nice to each other,” reflects a former colleague of Cummings, “and Dom doesn’t really work like that.”

Hoey’s walkout set the ball rolling on another, less dramatic exit: John Mills, Labour’s largest private individual donor and a Brexiter of many years’ standing. He feared the Vote Leave brand had become irrevocably Conservative. (Unlike Hoey, Mills remains on speaking terms with Vote Leave.)

Friends say that, for Elliott, who has been “planning this [campaign] for some time”, Cummings’s disposition is a price worth paying for his tactical nous. It was Cummings who was the architect of Vote Leave’s two-pronged strategy: claiming that the money we now pay to the EU could go towards the NHS, and suggesting that Brexit will allow us to cut immigration by “regaining control of our borders”.

The perceived cut-through of the latter message with older Labour voters was behind Vote Leave’s big tactical gamble. On 8 May, an official statement by the campaign declared that leaving the EU would also entail leaving the single market.

That decision is unlikely to find favour with big businesses that rely on international trade but it does allow Vote Leave to make strong and unambiguous claims about cutting immigration. If we are outside the European Union but inside the single market (as Norway is), we would have to accept free movement of labour. If we leave the single market, however, we could introduce a points-based entry system, or even finally achieve Cameron’s otherwise impossible cap on net migration.

Upset business but win over small-C conservative voters: it’s a big risk for the Brexiters to take. It represents a throw of the dice by Cummings, who sidelined Nigel Farage precisely in order to minimise the campaign’s focus on immigration. But with the vote scheduled to take place on 23 June and a repeat of last year’s refugee crisis in the Mediterranean looming, security and borders are likely to be at the forefront of voters’ minds. For all that those on the Brexit side have denounced Cameron for running a repeat of “Project Fear”, they know that they have to make change less terrifying than maintaining the status quo.

***

In their quest to take Britain out of the EU, the Brexiters have a simple, if high-stakes, strategy. They want to appear to be the underdogs (hence their repeated complaints about the government’s £9m pro-EU leaflet) and as a scrappier, grass-roots campaign taking on the might of the establishment. Naturally, this image doesn’t reflect an unvarnished truth: the press has been largely onside and senior editors and columnists are very willing to take Vote Leave’s calls.

There is also no concern about keeping the lights on. Arron Banks, the insurance magnate who bankrolled Ukip at the 2015 general election, might have refused to fund Vote Leave after it triumphed over his favoured vehicle, Leave.EU – he has called Matthew Elliott “Lord Elliott of Loserville” and threatened to sue the Electoral Commission for naming Vote Leave the official voice of Brexit – but insiders say that the campaign’s financial position is nothing to worry about.

If Vote Leave wins, it will have scored an extraordinary victory – and, it should be noted, defied the hopes of most of our allies in the rest of the world. The politicians backing Britain’s continued membership of the EU include not just Barack Obama but his likely successor, Hillary Clinton, as well as the prime ministers of Canada, New Zealand and Australia.

There is a vanishingly small number of international politicians who back Brexit. Like the inner core of Vote Leave, they are overwhelmingly drawn from the right-wing fringe – US Republicans such as Ted Cruz and Donald Trump and the French National Front leader, Marine Le Pen, who, unhappily for the Brexiters, is expected to visit Britain to support their case.

The only foreign leader who seriously supports a British Leave vote in June is a man praised by Nigel Farage and whose country Dominic Cummings spent several years working in: Vladimir Putin, who, as far as British voters are concerned, is even more toxic than Farage, Galloway or Gove.

When Britain’s odd squad looks abroad for allies, its options are few – but this ragtag collective is far from beaten. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics. 

This article first appeared in the 26 May 2016 issue of the New Statesman, The Brexit odd squad