Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. Could Chris Huhne take Nick Clegg or David Cameron with him? (Daily Telegraph)

The by-election in Eastleigh brought about by the Lib Dem's resignation will be fought viciously and will expose every rift in the coalition, writes Peter Oborne.

2. A crisis needs a firewall not a ringfence (Financial Times)

We cannot solve our banking problems until the eurozone does too, says Alistair Darling.

3. Gay marriage: no one can stop this social revolution now (Independent)

Some lives will be improved, a wider signal conveyed about tolerance, but the legalisation of gay marriage will have a negligible effect on the next election, says Steve Richards.

4. The shadow of 1914 falls over the Pacific (Financial Times)

China, like Germany 100 years ago, fears the established power is intent on blocking its ascent, writes Gideon Rachman. 

5. Voters won’t listen if the Tories talk only among themselves (Daily Telegraph)

The Mid-Staffs report demands a united front, but the party is rowing over gay marriage, writes Benedict Brogan.

6. The end of nuclear power? Careful what you wish for (Guardian)

Flawed and stalled as the plans for toxic waste may be, at least they exist, says George Monbiot. There is no way to clean up CO2, the greater evil.

7. There’s no such thing as an MP’s private life (Times) (£)

Chris Huhne’s fall was personal, not political, writes Rachel Sylvester. But in today’s Westminster pressure cooker that counts for nothing.

8. George Osborne: hedging his bets (Guardian)

The Chancellor wants to eat his cake and have it when it comes to banking reform, says a Guardian editorial. 

9. Gay marriage and a split no one wanted (Daily Mail)

In the depths of the worst economic crisis in living memory, the Prime Minister has pushed this fringe obsession to the top of his programme for government, says a Daily Mail editorial.

10. Israel, Palestine and the mapping of power (Guardian)

In portraying politics rather than geography, Ramallah and Jerusalem are displaying instincts as ancient as Ptolemy, writes Tristram Hunt. 

Photo: Getty
Show Hide image

Love him or loathe him, Britain needs more Alan Sugar

Big business is driving down wages, failing to invest, and funnelling rewards to the richest.  Entrepreneurs - and the state - need to fill the gap. 

The business baron who loves a bust-up has just been hired by Her Majesty’s Government to tour the country inspiring the next generation of apprentices. And he’s got his work cut out for him.  

Britain is loads more enterprising than it used to be - but the truth is, we’re miles behind our rivals. The good news is that Britain boasts nearly two million more firms than at the turn of the century. Over 40 per cent of Europe’s “unicorns” (new firms worth over $1 billion) are UK based. And by the next election, there will be more self-employed people than public service workers. 

But, here’s the bad news. Globally, we’re only 48th out of 60 in the global enterprise league table - and of the top 300 companies created in the last thirty years, only a handful are British. The only two British websites in the global 100 were actually founded in America - google.co.uk and amazon.co.uk. Worst of all, according to new House of Commons library figures which I commissioned this week, over a million people have left entrepreneurial activity in the last three years. 

Yet in my new history of British capitalism, Dragons, published today, I show how we’re a nation built by some of the greatest entrepreneurs on the planet. They were the buccaneers like Robert Rich, who built the trading companies and colonies of north America. The traders like Thomas Diamond Pitt who built old multi-nationals like the East India Company. They were industrial revolutionaries like Matthew Boulton who perfected the steam engines, and capitalists like Nathan Rothschild who built the bond market. Down the ages, there were of course great rogues and fraudsters, slavers, opium dealers and imperialists, like George Hudson, William Jardine and Cecil Rhodes. And through the centuries, women were in particular, were frozen out of the power structures of the market. 

But, throughout our past, great visionaries like George Cadbury, William Lever and John Spedan Lewis not only created new wealth but invented new ways to share it, from Port Sunlight to Bournville, to the board rooms of the John Lewis Partnership. 

Theirs is the entrepreneurial spirit we are going to need to rebuild Britain. Why? Because we can no longer leave the task to big business. Big business is driving down wages, failing to invest, and funnelling rewards to the richest. Today, UK firms are sitting on an extraordinary £522 billion in cash. And that’s after they lavished out £100 billion in share buy-backs in 2014. According to Larry Fink, the head of Black Rock which is the world’s biggest investment manager, the gargantuans of the global economy are simply failing to invest in the new jobs and industries of the future. 

So we’re depending on our entrepreneurs to turn new ideas into new industries and new industries into new jobs - whether it is in big data, cyber-security, driverless cars, the internet of things, or genetic medicine. It’s not just good for progress. It’s good for jobs. In fact, if our young people today were as entrepreneurial as their counterparts in Germany or America, its estimated they would create an extra 100,000 jobs. 

The big lesson from 600 years of the history of capitalism is simple: entrepreneurs make history - by inventing the future. So we need the government to start doing an awful lot more for the enterprise economy; spreading enterprise education, investing more in science, shifting government contracts to small high growth firms, and sorting out the banking system. But if we want a better future for Britain, we need an awful lot more entrepreneurs to do well. And so we need AlanSugar to succeed.  

Dragons: Ten Entrepreneurs Who Built Britain is published by Head of Zeus today

Liam Byrne is Labour MP for Birmingham Hodge Hill, cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.