In this week’s New Statesman: Assange, alone

Jemima Khan on how Julian Assange alienated his allies. PLUS: Who really runs Britain? We reveal the most powerful people you've never heard of.

Jemima Khan: How an Assange supporter became a sceptic

New Statesman associate editor Jemima Khan writes following the Sundance Film Festival premiere of We Steal Secrets, a WikiLeaks documentary she executive-produced and which “[Julian] Assange denounced before seeing”.  She writes:

In many ways, the film’s narrative arc mirrors my own journey with Assange, from admiration to demoralisation.

Once an Assange admirer and committed supporter, Khan even stood bail for the WikiLeaks editor-in-chief in 2010. She reveals in this exclusive essay how he lost her, and others’, support.

Read this piece in full now.

 

The Shadow Power List: Who really runs Britain?

The new “establishment” of Britain do not reside in Whitehall. They are the directors and chief executives of the companies to which much of the government’s functions have been outsourced. They are unelected, often unaccountable and in charge of ever more of our public services – shaping our lives outside the spotlight. In a special report we profile eleven people “who hold the very British brand of inconspicuous power”.

Rafael Behr writes:

Power in Britain is not contained within boundaries easily definable as “government” . . .

Where we experience the humiliation of powerlessness, this is as likely to be at the hands of a private company as a state institution. When it is a state service, there is every chance its functions have been outsourced to a private provider. ..

[Power] resides on the boards of companies no one has heard of, in quangos, in hedge funds, in networks of friends and former ministerial advisers who work for charitable bodies with opaque remits.

Featuring:

Christopher Hyman, Chief executive, Serco

The National Nuclear Laboratory, the Docklands Light Railway, immigration detention centres, the London cycle hire scheme, NHS Suffolk, the National Border Targeting Centre, air-traffic control services, waste collection for local authorities, maintenance services for ballistic missiles, government websites, prisons and a young offender institution – there is almost no branch of government that has not been penetrated by Serco, the outsourcing behemoth. And few have benefited more from the growth of this shadow state than the company’s chief executive, Christopher Hyman.

Sam Laidlaw, Chief executive, Centrica

Sam Laidlaw, of the privatised utility company Centrica (formerly British Gas), has been described as the “aristocrat” of the energy industry – and his family history indicates how the British ruling class has adapted over the course of a century, from empire to social democracy and the free market. His grandfather Hugh was an executive of the Anglo-Persian Oil Company in India, a forerunner of BP; his father, Christophor, worked his way up through BP to become deputy chairman

Joanna Shields, Chief executive, Tech City

Joanna Shields, the new chief executive of the Tech City Investment Organisation, has internet pedigree, having worked with Google, Bebo, AOL and Facebook. She may have been unable to save Bebo, one of the social networks caught in the squeeze between the dwindling Myspace and nascent Facebook, but her reputation in the tech world remains strong. Her task now is to transform Tech City into Britain’s version of Silicon Valley.

Tony Mitchell, Director, Tesco, supply chain

Tony Mitchell is the model of a Tesco company man. He started on the shop floor in 1978 and worked his way up to store manager, then eventually to head office, and now Mitchell decides what £1 in every £7 in the UK is spent on. Getting on to the shelves at Tesco can make a young company, and getting thrown off them is likely to be the death knell.

 

Rafael Behr: If Tory MPs can’t decide what kind of party they want, they’ll have to work it out in opposition

In the Politics Column, Rafael Behr writes on the split within the Conservative party, more than half of whom refused “to accept the Prime Minister’s moral lead on gay marriage” in Tuesday’s free vote. This “expresses a more profound reluctance to be led” writes Behr. Many Tories feel they have lost “any sense of ownership” within the government programme:

But complaints that Cameron is inadequately Conservative are “absurd” considering his implementation of core Conservative ideas – in short “he is the ultimate valediction of 20th-century Conservatism.”

If his party thinks that is a monstrous creation, it faces an epic task working out what it wants to be instead. It is the kind of work can only be done in opposition.

Read this piece in full now.

 

PLUS

 

Nicholas Wapshott: What David Cameron can learn from Abraham Lincoln

In the NS Essay, Nicholas Waptshop draws parallels between Lincoln’s fight to repair the union with Cameron’s modern woes over Scottish secession and the EU referendum. He goes on out outline the similarities and differences between the Prime Minister and the 16th US President.

There are poignant similarities between the conundrum that Lincoln encountered 150 years ago and the dilemma David Cameron faces today. They are both confronted with threats to the very existence of the nations they govern . . .

But while Lincoln was presented with the simple option of whether to take up arms to defend the Union or watch as his country split in two, Cam­eron has no such easy choice.

 

Laurie Penny: Ten years ago we marched against the Iraq war and I learned a lesson in betrayal

Ten years ago this month, millions of people all over the world marched against the war in Iraq- and were ignored. I was one of them...

Tony Blair’s decision to take Britain into the American’s war in Iraq was an immediate, material calamity for millions of people in the Middle East. I’m writing here, though, about the effect of that decision on the generation in the west who were children then and are adults now. For us, the sense of betrayal was life-changing.

 

In The Critics

Much of the Critics section of this week’s New Statesman is devoted to our annual history special. Featuring the historian David Cesarani on the changing face of Holocaust historiography, John Gray on the long and bloody history of political violence, and Britain’s former special representative in Afghanistan Sherard Cowper-Coles reviewing Return of a King: the Battle for Afghanistan by William Dalrymple and Games Without Rules: the Often Interrupted History of Afghanistan by Tamim Ansary.

  • Jonathan Derbyshire interviews historian Norman Stone
  • Ryan Gilbey reviews Pablo Larraín’s film No
  • Kate Mossman reviews new albums by Anaïs Mitchell and Jackie Oates
  • Thomas Calvocoressi visits “Light Show”, a new exhibition at the Hayward Gallery
  • Will Self’s Madness of Crowds.

This and much more in our “In The Critics” blog on Cultural Capital.

Purchase a copy of this week's New Statesman in newsstands today, or online at: subscribe.newstatesman.com

Charlotte Simmonds is a writer and blogger living in London. She was formerly an editorial assistant at the New Statesman. You can follow her on Twitter @thesmallgalleon.

Getty
Show Hide image

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.