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The real reason the Tories can't turn the UK into a post-Brexit tax haven

The Brexiteers attacking Philip Hammond should remember that the Conservatives don't have a parliamentary majority. 

“The British people are not going to lie down and say, too bad, we’ve been wounded,” Philip Hammond warned back in January. Were the EU to deny the UK a beneficial trade deal, the Chancellor told German newspaper Welt am Sonntag, “we will change our [economic] model”. Tax cuts and deregulation would be deployed to transform Britain into a free market upstart capable of undercutting Brussels. 

Six months later, Hammond is arguing the diametrical reverse. “I often hear it said that the UK is considering participating in unfair competition in regulation and tax,” the Chancellor told Le Monde. “That is neither our plan nor our vision for the future. The amount of tax we raise as a percentage of our GDP puts us right in the middle of the pack. We don’t want that to change, even after we’ve left the EU. I would expect us to remain a country with a social, economic and cultural model that is recognisably European.”

Unsurprisingly, the Chancellor is being mocked from all sides for disagreeing with himself. “It’s one thing for cabinet members to contradict each other, but Hammond is taking the art of the Tory rift up a level – and creating a cabinet split with himself,” wrote Spectator editor Fraser Nelson. “This government has broken down into farce,” declared Labour's shadow chief secretary to the Treasury Peter Dowd. “The Chancellor is not only disagreeing with cabinet colleagues over Brexit, he is now in open dispute with himself given it is only his own comments on the matter in January which he is pretending to contradict.”

But there's an important point such derision ignores. In between Hammond's interviews there was the small matter of a general election. Had the Conservatives won the large majority they expected, the threat of a free market Brexit would remain. But without a majority at all, it is inconceivable. The Tories simply do not have the votes they need to slash taxes and regulation (as I noted last week.) Britain will not become the Hong Kong of the west (the oft-cited Singapore is a hotbed of interventionism.)

Though the hard Brexiteers will blame the “soft” Hammond for repudiating this path, the true blame lies with the voters. Had the Tories stood on the libertarian manifesto proposed by some, they would likely have fared worse, not better. As Labour's performance demonstrated, many voters crave a larger state. The Conservatives' free market wing has long hoped to use Brexit as a Trojan Horse to remake Britain as a low-tax, small-state utopia. But as Hammond has accurately surmised, that option no longer exists. 

George Eaton is political editor of the New Statesman.

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Michael Carrick is the “Geordie Pirlo” that England misunderstood

The Manchester United legend’s retirement announcement should leave Three Lions fans wondering what if?

That it came in the months leading up to a World Cup arguably added an exclamation point to the announcement of Michael Carrick’s impending retirement. The Manchester United midfielder, who is expected to take up a coaching role with the club afterwards, will hang up his boots at the end of the season. And United boss Jose Mourinho’s keenness to keep Carrick at Old Trafford in some capacity only serves to emphasise how highly he rates the 36-year-old.

But Carrick’s curtain call in May will be caveated by one striking anomaly on an otherwise imperious CV: his international career. Although at club level Carrick has excelled – winning every top tier honour a player based in England possibly can – he looks set to retire with just 34 caps for his country, and just one of those was earned at a major tournament.

This, in part, is down to the quality of competition he has faced. Indeed, much of the conversation around England’s midfield in the early to mid-noughties centred on finding a system that could accommodate both box-to-box dynamos Steven Gerrard and Frank Lampard.

As time went on, however, focus shifted towards trequartistas, advanced playmakers and those with more mobile, harrying playing styles. And the likes of Jack Wilshere, Ross Barkley, Jordan Henderson and Dele Alli were brought into the frame more frequently than Carrick, whose deep-lying capabilities were not utilised to their full potential. That nearly 65 per cent of Carrick’s England caps have come in friendlies shows how undervalued he was. 

In fairness, Carrick does not embody similar characteristics to many of his England midfield contemporaries, including a laudable lack of ego. He is not blessed with lung-busting pace, nor is he enough of a ball-winner to shield a back four solo. Yet his passing and distribution satisfy world-class criteria, with a range only matched, as far as England internationals go, by his former United team-mate Paul Scholes, who was also misused when playing for his country.

Rather, the player Carrick resembles most isn’t English at all; it’s Andrea Pirlo, minus the free-kicks. When comparisons between the mild-mannered Geordie and Italian football’s coolest customer first emerged, they were dismissed in some quarters as hyperbole. Yet watching Carrick confirm his retirement plans this week, perfectly bearded and reflecting on a trophy-laden 12-year spell at one of world football’s grandest institutions, the parallels have become harder to deny.

Michael Carrick at a press event ahead of Manchester United's Champions League game this week. Photo: Getty.

Where other players would have been shown the door much sooner, both Pirlo and Carrick’s efficient style of play – built on patience, possession and precision – gifted them twilights as impressive as many others’ peaks. That at 36, Carrick is still playing for a team in the top two of the top division in English football, rather than in lower-league or moneyed foreign obscurity, speaks volumes. At the same age, Pirlo started for Juventus in the Champions League final of 2015.

It is ill health, not a decline in ability, which is finally bringing Carrick’s career to a close. After saying he “felt strange” during the second-half of United’s 4-1 win over Burton Albion earlier this season, he had a cardiac ablation procedure to treat an irregular heart rhythm. He has since been limited to just three more appearances this term, of which United won two. 

And just how key to United’s success Carrick has been since his £18m signing from Tottenham in 2006 cannot be overstated. He was United’s sole signing that summer, yielding only modest excitement, and there were some Red Devils fans displeased with then manager Sir Alex Ferguson’s decision to assign Carrick the number 16 jersey previously worn by departed captain Roy Keane. Less than a year later, though, United won their first league title in four years. The following season, United won the league and Champions League double, with Carrick playing 49 times across all competitions.

Failing to regularly deploy Carrick in his favoured role – one that is nominally defensive in its position at the base of midfield, but also creative in providing through-balls to the players ahead – must be considered one of the most criminal oversights of successive England managers’ tenures. Unfortunately, Carrick’s heart condition means that current boss Gareth Southgate is unlikely to be able to make amends this summer.

By pressing space, rather than players, Carrick compensates for his lack of speed by marking passing channels and intercepting. He is forever watching the game around him and his unwillingness to commit passes prematurely and lose possession is as valuable an asset as when he does spot an opening.

Ultimately, while Carrick can have few regrets about his illustrious career, England fans and management alike can have plenty. Via West Ham, Spurs and United, the Wallsend-born émigré has earned his billing as one of the most gifted midfielders of his generation, but he’d never let on.

Rohan Banerjee is a Special Projects Writer at the New Statesman. He co-hosts the No Country For Brown Men podcast.