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.

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How the Conservatives lost the argument over austerity

After repeatedly missing their deficit targets, the Tories can no longer present spending cuts as essential.

“The age of irresponsibility is giving way to the age of austerity,” declared David Cameron at the Conservatives' 2009 spring conference. Fear of spending cuts helped deny his party a majority a year later, but by 2015 the Tories claimed vindication. By framing austerity as unavoidable, they had trapped Labour in a political no man's land. Though voters did not relish cuts, polling consistently showed that they regarded them as necessary.

But only two years later, it is the Conservatives who appear trapped. An austerity-weary electorate has deprived them of their majority and the argument for fiscal restraint is growing weaker by the day. If cuts are the supposed rule, then the £1bn gifted to the Democratic Unionist Party is the most glaring exception. Michael Fallon, the Defence Secretary, sought to justify this largesse as "investment" into "the infrastructure of Northern Ireland" from "which everybody will benefit" – a classic Keynesian argument. But this did not, he hastened to add, mean the end of austerity: "Austerity is never over until we clear the deficit."

Britain's deficit (which peaked at £153bn in 2009-10) was the original and pre-eminent justification for cuts. Unless borrowing was largely eliminated by 2015, George Osborne warned, Britain's public finances would become unsustainable. But as time has passed, this argument has become progressively weaker. The UK has cumulatively borrowed £200bn more than promised by Osborne, yet apocalypse has been averted. With its low borrowing costs, an independent currency and a lender of last resort (the Bank of England), the UK is able to tolerate consistent deficits (borrowing stood at £46.6bn in 2016-17).

In defiance of all this, Osborne vowed to achieve a budget surplus by 2019-20 (a goal achieved by the UK in just 12 years since 1948). The Tories made the target in the knowledge that promised tax cuts and spending increases would make it almost impossible to attain – but it was a political weapon with which to wound Labour.

Brexit, however, forced the Conservatives to disarm. Mindful of the economic instability to come, Philip Hammond postponed the surplus target to 2025 (15 years after Osborne's original goal). Britain's past and future borrowing levels mean the deficit has lost its political potency.

In these circumstances, it is unsurprising that voters are increasingly inclined to look for full-scale alternatives. Labour has remade itself as an unambiguously anti-austerity party and Britain's public realm is frayed from seven years of cuts: overburdened schools and hospitals, dilapidated infrastructure, potholed roads, uncollected bins.

Through a shift in rhetoric, Theresa May acknowledged voters' weariness with austerity but her policies did not match. Though the pace of cuts was slowed, signature measures such as the public sector pay cap and the freeze in working-age benefits endured. May's cold insistence to an underpaid nurse that there was no "magic money tree" exemplified the Tories' predicament.

In his recent Mansion House speech, Philip Hammond conceded that voters were impatient "after seven years of hard slog” but vowed to "make anew the case" for austerity. But other Tories believe they need to stop fighting a losing battle. The Conservatives' historic strength has been their adaptability. Depending on circumstance, they have been Europhile and Eurosceptic, statist and laissez-faire, isolationist and interventionist. If the Tories are to retain power, yet another metamorphosis may be needed: from austerity to stimulus.

George Eaton is political editor of the New Statesman.

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