Showing posts with label Alistair Darling. Show all posts
Showing posts with label Alistair Darling. Show all posts

31 March 2014

Not Vince, surely?

The Guardian’s chief political correspondent, Nicholas Watt, had a scoop last week when he reported on 29 March:
A currency union will eventually be agreed between an independent Scotland and the remainder of the UK to ensure fiscal and economic stability on both sides of the border, according to a government minister at the heart of the pro-union campaign.
… "Of course there would be a currency union," the minister told the Guardian in remarks that will serve as a major boost to the Scottish first minister, Alex Salmond, who accused the UK's three main political parties of "bluff, bluster and bullying" after they all rejected a currency union. The minister, who would play a central role in the negotiations over the breakup of the UK if there were a yes vote, added: "There would be a highly complex set of negotiations after a yes vote, with many moving pieces. The UK wants to keep Trident nuclear weapons at Faslane and the Scottish government wants a currency union – you can see the outlines of a deal."
It seemed odd to me that, although in extremis almost everything is negotiable, the two issues highlighted in the article, the pound and nuclear weapons, were ones which both sides have taken such hard lines on. However, the commentariat seemed more interested in who the minister might be, with Benedict Brogan in his Morning Briefing email on 31 March pointing the finger very directly:
A CABINET MOLE HUNT
Whodunnit? There's a mole hunt underway in response to the Saturday Guardian's comments from a Cabinet minister that an independent Scotland would be able to keep the pound; on Today, Alistair Darling insisted that "The only way a currency union can work is if you have a single government". The name doing the rounds - and few will be surprised by this - is Vince Cable.
Watt appeared as one of the three bright young things on BBC1’s Sunday Politics on 30 March, though his comments during their ‘week ahead’ chatter with Andrew Neil at the end of the show seemed to be concentrating on an article in that day’s Observer by a clever old thing, Andrew Rawnsley. Of course, “the minister told the Guardian” not the Observer, so any resemblance to something posted about here over three years ago would be quite false.




12 March 2013

Damian McBride’s “100 or so”

Damian McBride was a Whitehall civil servant who became Head of Communications at the UK Treasury and then, from 2005 until he resigned in April 2009, was special adviser to British Prime Minister Gordon Brown. He is now Head of Communications at the Catholic aid agency CAFOD and recently appeared as a witness before the House of Commons Public Administration Committee examining The Future of the Civil Service. McBride posts on his blog every few weeks on topics relating to his experience in government.

His most recent post, Going To The Mattresses: the art of surviving a coup, concerns the various ways a Prime Minister whose position is under threat can foil his colleagues’ attempts to oust him:
… if they [No10] want to know what it takes to get through an attemped coup, they could do worse than study the record of Gordon Brown – the Charles De Gaulle of Downing Street when it came to surviving assassination attempts. Based on the Brown survival manual, I would ask them the following five key questions …
For the full questions and answers see McBride’s post! But here is one gem:
With David Miliband’s various abortive coups, there was a certain crude art to inducing their failure. I was often personally criticised for over-reacting to some new Miliband manoeuvre, ‘ramping it up’ as people would say. But given David’s tendency to treat rebellion like a reluctant bather inching his way into the sea at Skegness, it made sense to push him right in at the outset, on the grounds that he’d run straight back to his towel, and not try again for at least six months.
I thought the answer to one question gives some insight into the way people at No10, at least in Brown’s day, see the world
4. How’s your relationship with the media these days?  
As I’ve said, momentum is everything in an attempted coup: to succeed, the plotters must keep pushing the leader towards the cliff. The media are crucial in determining that momentum: if they say it’s fizzled out, then it has; if they say one more bad day will make the leader’s position untenable, then it will. But, even for the BBC, this is not an objective, scientific process; it’s about 100 or so very influential people at different media outlets forming a view based on their conversations with each other and with key players on either side of the plot, as well as, to some extent, on public attitudes. That is why, no matter how bad the coverage of Gordon Brown’s Premiership became, it was still vital for us to maintain strong and friendly relationships with those 100 or so people.
So who are these “100 or so” (my emphases above)? I doubt if anyone, including McBride, has ever had a definitive list while at the same time there are probably a couple of hundred who would like to think themselves as being on one. As for the comment “even for the BBC”, here is an extract from the Pollard Review into the way BBC2 Newsnight handled the Savile story:
43. In addition to the overall structure of the BBC, it is also helpful to provide some background as to the structure of the BBC News Group, and the relevant reporting lines within this group.  
44. The head of the News Group is the Director of News. Throughout the period considered by this Review, this was Helen Boaden.  
45. … in November 2011 .... Ms Boaden’s reporting line was vertical – to the Director General. The Director General’s own reporting line is to the BBC Trust and its Chairman Lord Patten.  
46. Beneath the Director of News sits a Deputy Director of News. Throughout the period considered by this Review, this was Stephen Mitchell. Mr Mitchell is also Head of News Programmes. As Deputy Director of News, Mr Mitchell reports to Ms Boaden and is, in that role, involved in dealing with a range of strategic issues affecting the whole of BBC News. As Head of News Programmes, he is responsible for a wide range of national radio and television news and current affairs programmes, including Newsnight and Panorama.  
47. Beneath Mr Mitchell sit the editors of the news programmes. Thus Mr Mitchell is the line manager of Peter Rippon, the editor of Newsnight (who stepped aside from his post in October 2012). There was thus a direct reporting line from Mr Rippon to Mr Mitchell (and then in turn from Mr Mitchell to Ms Boaden).  
48. Beneath the editors are their deputy editors. Mr Rippon’s deputies in late 2011 were Liz Gibbons and Shaminder Nahal. They reported to Mr Rippon, whose own reporting line went to Mr Mitchell (and so on) as set out above.  
49. Beneath the deputy editors are the programme presenters, reporters, and journalists, such as Jeremy Paxman, Meirion Jones and Liz MacKean.
Leaving the BBC teams aside (11 in the above alone) it is possible to start guessing who some of the “100 or so” might be. A quick scan of the Labels used just on this blog since October 2010 comes up with:
Alice Thompson, Andrew Marr, Andrew Rawnsley, Benedict Brogan, Charles Moore, David Aaronovitch, Fraser Nelson, George Parker, Guido Fawkes (Paul Staines), Iain Martin, Isabel Oakeshott, Janan Ganesh, Jim Naughtie, John Rentoul, Lionel Barber, Mary Anne Sieghart, Patrick Wintour, Peter Oborne, Polly Toynbee, Rachel Sylvester, Sarah Sands, Simon Jenkins, Tim Montgomerie, Toby Young.
Another 76 or so to go then, and of course, not all the names would be common to Tory, Labour or Lib Dem lists of “100 or so”.

One of the above, Andrew Rawnsley, explains in Chapter 37 (Chamber of Horrors) of his The End of the Party the circumstances (the contents of some emails obtained by Guido Fawkes, also above) which led to McBride’s resignation from Brown’s team, and casts some light on his modus operandi:
… McBride had been Brown's chief propagandist for six years. He was also extremely tight with Ed Balls, closer some thought than he was to the Prime Minister. Balls, knowing that he would be spattered by association, raged at his friend: 'I can't believe you have been so f[xxx] stupid.  
The more scrupulous members of Brown's staff had long been horrified by what they saw of McBride at work. His modus operandi was to offer 'trades' to journalists who boosted Brown or killed stories that Number 10 didn't want published. Brown had ignored repeated warnings … to get rid of him. McBride was not a lone wolf; he was one razor-toothed but sloppy dog in the Brown pack with a licence from the Prime Minister.  
The e-mails were an extreme example of the macho and nasty tactics that had been employed on Brown's behalf by members of his cabal for many years. McBride operated in the dark side of Downing Street which was an expression of the dark side of Brown's personality. …(page 638)
Alistair Darling in Back from the Brink describes the aftermath of giving a bleak account of the UK’s economic prospects at odds with Brown’s views, to the Guardian:
… It was the briefing machine at No. 10 and Gordon's attack dogs, who fed the story and kept it running. I later described it as like 'the forces of hell' being unleashed on me. That's what it felt like. Damian McBride was no fan of mine - he clearly disapproved of Gordon's decision to appoint me as Chancellor. He used to look at me like the butler who resented the fact that his master had married someone he didn't approve of. I'm not sure that he ever spoke to me. He would give me a curt nod, nothing more. He had a group of journalists whom he briefed regularly, and when Catherine Mcleod [Darling’s Special Adviser] finally managed to meet with him, after repeated requests, he told her which journalists she should talk to and which not.  
… The attack dogs set about another colleague that summer. At the beginning of the summer recess, after the loss of the Glasgow East seat, David Miliband, then Foreign Secretary, had written an article for the Guardian in which he set out the need for a coherent political strategy to recover lost ground. It was a thoughtful piece, but it was interpreted by the inner circle as an attack on Gordon and a signal that David might launch a leadership attempt. Gordon was told by his team left behind at No. 10 that he should be relaxed about it. They were right. The article would have died a death had a cack-handed press operation not been mounted to trash David. (pages 106/7)
Darling also describes the emails which led to McBride’s resignation as:
… an all too predictable political catastrophe in No. 10, this time involving one of Gordon s spin doctors. Throughout his time in government, Gordon had relied heavily on these attack dogs, first Charlie Whelan, then Damian McBride. McBride had been caught out briefing against deputy leader Harriet Harman at party conference in October 2008 - by Harriet herself, who had overheard him. Rightly, she threatened to report him to the Cabinet Secretary unless Gordon did something about him. He promised to move McBride to where he could cause less trouble. It was to no avail. McBride's briefings against me to senior journalists and political editors were faithfully reported back. Gordon refused all entreaties by cabinet colleagues to let him go and tethered him instead in an office in No. 10. It was another flawed fix, and he continued to roam.  
Things finally came to a head when emails were published showing that McBride was involved in a shabby exercise to damage opposition figures and, in one case, the wife of a shadow minister. This time he had to go. Unfortunately, the disgrace did not leave with him. The repercussions for Gordon were disastrous. People had daily questioned our competence and our ability to control events. Now they had confirmation of what they suspected: we were a nasty party too. The perception was that our moral compass had irremediably lost its bearings. The McBride affair further destabilized the whole No. 10 operation.
In his post McBride mentions one of my Labels above:
If that instinct for survival – and everything that goes with it – is lacking in No10 at present, then it may point to a wider problem; with apologies to John Rentoul’s Banned List, something of an existential crisis.
who tweeted just after the post appeared:


I was surprised that the überpedant Rentoul should describe it as beautifully written. There were three howlers that even I could spot:

consiligieres instead of consiglieri
Charles De Gaulle instead of Charles de Gaulle
and “about 100 or so” is a redundancy.

But I may well make use of the “100 or so” label in future posts.

5 September 2012

The two Eds: smoke and fire or neither?

The majority of us, far from the inner circles of politics as we are, can only glean what is going on from what we are told by the media. Much of that is fed to us, directly or indirectly, by an army of media handlers and is intended to manipulate our opinions rather than to inform us. On the other hand, more than ever before there are numerous accounts what actually went on in the not too distant past available in the form of diaries and memoirs. So, although we have to pick our way through what is presented to us day by day, we probably have better tools for intelligent and sceptical scrutiny than people had even twenty years ago.

As an example, consider the story by Andrew Pierce in the Mail on Sunday on 2 September about poor relations between Leader of the Opposition Ed Miliband and Shadow Chancellor Ed Balls, The Ed to Ed feud that could wreck Miliband's No10 dream. The article is well worth reading in full, but some key extracts are:
Earlier this year, as Ed Miliband launched into one of his long-winded speeches to his shadow cabinet, everyone at least tried to create the impression they were giving the Labour leader their undivided attention. But there was one notable exception, a man who made no effort to conceal the fact the Labour leader had lost the interest of the room. Ed Balls, the pugnacious shadow chancellor and devout disciple of Gordon Brown, was nonchalantly reading and sending messages on his BlackBerry while Mr Miliband droned on. As Mr Balls tapped away, indifferent to the embarrassment of colleagues and anger of the Labour leader, Mr Miliband asserted his authority and snapped: ‘Ed, people can be just as interesting as BlackBerries . . .’ The spat was the latest sign that the relationship between the two men is breaking down both in public and private. They neither like nor trust each other and, crucially, Mr Balls thinks he could do Mr Miliband’s job much better. …  
But the poisonous history between the Eds goes back to the early days of the Blair era, when they were youthful advisers to Mr Brown after he became shadow chancellor in 1994 and then Chancellor in 1997. … Mr Balls was economics adviser, while Mr Miliband was a mere special adviser. Ed Balls, now 45, loved to lord it over his staff, just as he does today. Colleagues at the time recall he treated Mr Miliband, 42, like the ‘office boy’. Mr Balls liked Mr Miliband to make his coffee every morning. ‘He loved to bark out “coffee time”,’ says one well-informed source. ‘Ed sheepishly got up to make it.’ …  
Today as leader it is, of course, Mr Miliband who is more senior. It is he who plays the role of ‘chairman’, summing up the views of his colleagues at the end of shadow cabinet meetings. But, tellingly, this happens only after he has invited Mr Balls to give his verdict on the contributions made by other members of the shadow cabinet to any meeting. The result is that Mr Balls sometimes talks for three times as long as Mr Miliband. ‘A fly on the wall would assume Balls was leader,’ says one witness to the proceedings. …  
It should have been a marriage of equals between leader and shadow chancellor. They are both Oxford educated. Mr Balls studied at Harvard and Mr Miliband taught there. But increasingly these days whether it is in meetings or on the telephone, Mr Balls talks over his leader. It infuriates Mr Miliband but he does little other than shrug his shoulders and say: ‘That’s Ed.’ …  
But the problems between them go beyond personal ambition and resentment over the handling of the shadow chancellor portfolio. Mr Miliband is trying to detoxify the Labour brand so damaged by infighting between Blair and Brown. Labour pollsters have identified Gordon Brown’s term in Number 10 as a ‘huge negative’ for the party’s election prospects. And no one in the Labour Party is more closely associated with Mr Brown than Ed Balls. …  
One party figure said: ‘The two Eds have a fundamental disagreement over the City but Balls is making the running and bullying Miliband’s people into submission on a range of policies. ‘It began with Labour’s spending commitments, but now we have to get permission from the shadow chancellor’s office on everything from the future of Trident [nuclear missiles] to keeping open police stations at weekends. Power has shifted from one end of the shadow cabinet table to the other.’  
It is an uncanny echo of the Blair and Brown relationship. And the question is whether it will fester in the same way — and once again tear the Labour party apart.
So, what to make of this? Of course the Mail is a Conservative-supporting newspaper. It must be expected to run stories unhelpful to Labour, particularly in the hope of Labour’s opinion poll lead being dislodged by post-Olympics feel-good and all the positive spin that can be wrapped around the Coalition reshuffle. At the same time, how better to take the heat off a beleaguered Chancellor than to turn it up on his Shadow? Certainly at PMQs on 5 September David Cameron took up the opportunity presented by Pierce’s article:
The Prime Minister: First, I am glad that the right hon. Gentleman mentioned the issue of Chancellors, because I have got my first choice as Chancellor, while he has got his third choice as shadow Chancellor. Apparently, he still has to bring in the coffee every morning—that is how assertive and butch the Leader of the Opposition really is. … 
Edward Miliband: The difference between the shadow Chancellor and the Chancellor is that the shadow Chancellor was right about the economy and the Chancellor was wrong. …
The Prime Minister: … He praised his shadow Chancellor to the gunnels, but let us remember that it was the shadow Chancellor who landed us in this mess. Who was the City Minister when the City went bust? The shadow Chancellor. Who was the man who gave us the biggest budget deficit in the developed world? The shadow Chancellor. That is what that team has delivered and that is why the British people will never trust them again. …  
The Prime Minister: The big difference in British politics is that I do not want to move my Chancellor; the right hon. Gentleman cannot move his shadow Chancellor. The fact is that in spite of all the economic difficulty this is a strong and united Government, and in spite of all the opportunity this is a weak and divided Opposition.
On the other hand, Pierce has his reputation to protect so his references to:
Senior party figures are talking openly  
Colleagues at the time …
says one well-informed source.
One shadow cabinet source said 
The Miliband camp fears 
Blairites wryly observe  
One party figure said
are likely to have some substance and look as though they come from individuals close to Miliband. Mary Riddell had followed the Mail story up in the Daily Telegraph (another Tory-inclined paper) on 4 September in a thoughtful article (again worth reading in full) which, somewhat surprisingly, sought to redress the balance. Indeed, she gave the impression of having spoken to persons close to Balls:
The wars convulsing the Tories and the Lib Dems are supposedly being mirrored by a struggle between Ed Miliband and his pugnacious shadow chancellor, Ed Balls. The evidence for this stand-off is somewhat slight. Reports that Mr Balls sends messages on his BlackBerry while the leader is addressing shadow cabinet, and that he hogs the floor, are less than incendiary. Mr Balls is indeed an inveterate texter whose meeting room etiquette may leave something to be desired. None of that is new. …  
The shadow chancellor, capable of inspiring both loyalty and loathing, is a textbook villain. To those who do not like or trust him, he remains Gordon Brown’s “kneecapper”. Yet Mr Balls’s insistence that any policy with a cost attached should be cleared with him is indeed imperative, according to allies who point out that the worsening economic situation means that Labour cannot make any new spending promises for after 2015. Minor disgruntlement on some colleagues’ part has, supporters say, been blown up into a baseless storm. Certainly, the two Eds are not re-enacting the Blair/Brown campaign of mutually assured destruction. …  
And yet the rumours are not entirely baseless. Where Blair and Brown could stake out separate fiefdoms, with Mr Brown (or Mr Balls) calling the economic shots, now the economy is all that matters. That leaves the Eds encamped on the same terrain. No one disputes that there are differences. A Balls ally describes the divides as small and bridgeable, but another observer cites “real tensions and problems”. The latest poll lead, down to six per cent, gives little cause for complacency …  
Labour’s attempts to reforge a one-nation Britain will depend on the alignment of Planet Miliband and Planet Balls. That confluence will, in turn, mean determining exactly where power lies. The interests of both Eds, not to mention the party and the country, may rest on just how assertive the leader is prepared to be. Mr Miliband cannot afford the creeping perception, expressed by one insider, that he “is physically and mentally intimidated” by Mr Balls. While both men would dispute that impression, it is now incumbent on them to demonstrate its untruth.
And if we turn to the diaries and memoirs? An insight into life on Planet Balls during the Labour government comes from Alastair Campbell’s Diaries – for those who lack the stamina to reach down all four volumes, the index pages for Volumes 3 and 4 for “Balls, Ed” are shown below (left and right), and the tone of many of the entries is probably enough. One gets the impression of Campbell’s heart sinking whenever Balls came into sight. The entry “has a civilised discussion with AC” was presumably so rare an occurrence as to merit being recorded for posterity!



A broader perspective can be found in the Epilogue in Alistair Darling’s memoir of his time as Gordon Brown’s Chancellor from 2007 to 2010, Back from the Brink:
Perhaps most damaging, for Gordon in particular, but for all of us in the end, was that he surrounded himself with a cadre of people whose preoccupation was the removal of Tony Blair and the installation of Gordon Brown. They had their own reasons, some political, others personal, but blind loyalty meant that Gordon was only told that which he wanted - or could bear - to hear and that meant, ultimately, that he was ill-served. Speaking truth to power never came into it.  
It would be wrong to claim that there was a plot to get rid of Tony Blair; there was no plot. A plot is secret. This was an open campaign, and as far as the Brownite cabal was concerned, you were with them or against them. It was a fairly brutal regime, and many of us fell foul of it. After Gordon became Prime Minister, the cabal sought fresh enemies and as chancellor I quickly found myself in the firing line. Their underhand tactics, particularly the continuous briefings and leaks to the media, were difficult to bear and were also incredibly damaging to the reputation of the party. Tony and Gordon dominated the Labour party for more than ten years and were an overwhelming force for good, but by the end their feud allowed a cancer to grow which, I believe, contributed to our defeat in 2010. The lessons of this crisis have yet to be fully Iearned and the consequences of what happened are still playing out. (pages 322/323)
All of which leads me to conclude that the smoke isn’t concocted and to suspect fire. After all, I can remember people telling me a few decades ago that newspaper stories about the problems between Prince Charles and Princess Diana were invented, and something similar about the early reports of the Blair-Brown feud. In fact, while the reports in the media may not always have been accurate or complete, the underlying sense of the situation in both cases wasn’t too far from what turned out eventually to have been the reality.


ADDENDUM 6 September

Ed Balls was interviewed today for the Independent by Steve Richards and Andrew Grice, and dismissed the subject discussed above as “complete and utter, total garbage”. In more detail:
… There have been reports of seething tensions between the "two Eds" over policy and Balls' apparent rudeness towards Miliband in Shadow Cabinet meetings. His version is expansive and unequivocal.  
"I came back from holiday and discovered while Ed was also on holiday we are having this big dispute. It was more laughable than concerning. I got back on Sunday and we spent an hour and a half together three days running, talking about what we are doing and where we are going and we spent very little time talking about these stories because they are complete and utter, total garbage."  
The Shadow Chancellor dismisses the stories by placing their complex relationship in a much wider context –the now openly-admitted running battle between the two Eds' former bosses Gordon Brown and Tony Blair. "We are two of the people who in the last Government were trying to fix problems with Alastair Campbell and others. We have learnt from all those problems. The reality with me and Ed is that if there's a problem we sort it out between us because we have the sort of relationship where we can sit down in a room and resolve it and that's how it will be. If there's anyone – whether its Conservatives… or any other noises offs who think their briefings can become a self-fulfilling prophecy by inventing this kind of stuff – we will prove them totally and utterly wrong."  
One allegation, that presumably came from within the Shadow Cabinet, is that Balls ostentatiously consults his BlackBerry while Miliband speaks at length to his frontbench team. Balls jokes about the habit and suggests he is by no means the most addicted to the device. "I was the first person who informed the Leader of Opposition during a Shadow Cabinet meeting a year or so ago about the forthcoming Royal Wedding. All of us are a bit guilty of using our BlackBerry but Yvette [Cooper, Balls' wife] said to me: 'Me and Douglas [Alexander, Shadow Foreign Secretary] are far worse than you!' "
Readers might be forgiven for concluding that Balls’ recollection of his relationship with Campbell is as shaky as his wife’s grammar. The article concludes:
Today Miliband and Balls speak at a special conference on economic policy. Balls describes it as one of several "stepping stones" towards the next election, in which they seek to frame and win the "intellectual" as well as the political debate. More Labour policy detail will come next year, as Labour combines Miliband's "responsible capitalism" agenda with the party's traditional goal of redistributing wealth. "We need to look at the rules that govern competition, corporate governance. They need work in a long- term way. But for a route to a fairer society the minimum wage and tax credits are essential."  
Whether the "two Eds" succeed in navigating the "stepping stones" together is one of the biggest questions in British politics. For sure, they are fully aware of the fatal consequences if they fail to do so. ...

ADDENDUM 7 September

The Independent has come back to the subject again today, this time in the form of an opinion piece from its chief political commentator, Steve Richards. Although headed Ed and Ed won't split – they know there's too much at stake and sub-headed There will be no repeat of the Blair/Brown rivalry that still traumatises Labour, what follows is a little more ambivalent by the end:
The relationship between Ed Miliband and Ed Balls is the most important in British politics. David Cameron and George Osborne are in power but their relationship is settled and fully formed. As close friends, they have set their course. The more complex and less harmonious relationship between the two Eds evolves with big strategic and policy decisions still to take. If they can make the partnership work, Labour's chances of winning the next election will be high. If they fail to do so, Labour will lose, irrespective of the Coalition's obvious failings.  
The media tends to frame the present by what has happened in the immediate past. In the case of Miliband and Balls, the temptation to present the duo as a repeat of the Blair/Brown rivalry is proving irresistible, not least because the parallels are obvious. Like Brown, Balls was the more senior figure when the leadership vacancy arose. Like Blair and Brown, the two Eds are two contrasting personalities.  
… Unlike Cameron and Osborne, they are not close. When Miliband left the Treasury for a year in the US, he told friends it was to get a break from Balls as much as from Brown. Not surprisingly, given his experience and range, Balls would at some point like to be leader and Prime Minister. Miliband is nervily aware of this and gets worked up when he reads that Balls is the real leader of the Labour Party. 
So there are the outlines of a potential collapse of a relationship even before an election is won. For their part, Blair and Brown won three. Yet the parallel is too easy and superficial. It does not stand up to closer scrutiny. The differences between the Blair/Brown relationship and the one between the two Eds are far more marked and significant than the similarities. If I were Cameron and Osborne, I would not count on a major split. 
… In terms of ministerial pasts and proximity to power, the two of them are the most experienced leader of the Opposition and shadow Chancellor for decades. Unlike most such duos, they also have a big chance of winning an election after a single term. Given this benevolent context, they will have only themselves to blame if they give fatal ammunition to malevolent internal briefers who only help Cameron and Osborne, the duo who prove that genuine friendship does not guarantee a smooth political ride.

17 October 2011

Perhaps Willetts Has Only Got One Brain

demography, n. That branch of anthropology which deals with the life-conditions of communities of people, as shown by statistics of births, deaths, diseases, etc. [Oxford English Dictionary]

David Willetts is a British Conservative politician who currently holds the post of Minister of State for Universities and Science. He attends the Coalition Cabinet and would probably have been given a higher-ranking post if the Tories had achieved an overall majority at the 2010 election. Wikipedia states:
Due to his careful intellectual approach, ties to academia, his unusually policy-heavy background and his high hairline, he has acquired the nickname "Two Brains”
for which the Guardian’s Michael White claims credit. In February 2010, Willetts’ book, The Pinch, was published, and, after a last-minute delay, appeared in May as a paperback and supplemented with an Afterword. Given the subtitle, How the baby boomers took their children’s future – and why they should give it back, I was expecting to find it uncomfortable reading (yes, I am one by Willetts’ reckoning, see below). But to my surprise, given the credentials of its author, I also found it to be flawed and I will try to explain why (page references are to the paperback edition).
Willett’s thesis is given in the Introduction:
The boomers, roughly those born between 1945 and 1965, have done and continue to do some great things but now the bills are coming in; and it is the younger generation who will pay them. We have a good idea of what at least some of these future costs are - the cost of climate change, the cost of investing in the infrastructure our economy will need if we are to prosper, the cost of paying pensions when the big boomer cohort retires, on top of the cost of servicing the debt the government has built up. The charge is that the boomers have been guilty of a monumental failure to protect the interests of future generations. (page xv)
and the book then consists of a tour of modern Britain, guided by the author’s well-furnished mind, seeking to justify his proposition.

Some of it undoubtedly is thought-provoking. For example, Chapter 9, Time for Childhood, reveals a deplorable neglect of their teenage children by British parents. The microeconomics of the housing market with regard to Eastern European immigrants is explained very clearly (page 225 et seq), and David Aaronovitch’s recent article in The Times (£) in defence of immigration would have benefited from giving it some consideration. Willetts also makes some interesting points (pages 206-208) about the consequences of the expansion of participation in higher education by middle-class females, one of which is a negative impact on overall social mobility. (The extent to which the female majority of university graduates will have repaid their student loans after 30 years is not an issue the Universities Minister seems to address).

But there are also some meanderings. Chapter 1, Who We Are, is an essay about the British family and the British political tradition:
I believe this great tradition can be revitalized and renewed by enriching it with the insights of the Cambridge school of family history whose leading thinkers such as Peter Laslett and Alan Macfarlane offer a serious and empirically grounded account of our social structure, focusing on our nuclear families. It shows what is distinctive about England: it is our family structure which is the key. (page 22)
all supported by statistics about land transactions in Leighton Buzzard 1464 to 1508, and the like. Fascinating stuff, but perhaps of limited relevance to modern Britain, where 11.6% of the resident population in 2010 was born overseas - a third of the population in London. One gets the feeling that, if in doubt, Willetts does not care to leave it out. Chapter 7, Why Bother About the Future, cites Condorcet’s Sketch for a Historical Picture of the Human Mind, William Godwin’s Enquiry Concerning Political Justice and its Influence on General Virtue and Happiness, Thomas Malthus’ Essay on the Principle of Population, Moore’s Law, Nicholas Stern and Margaret Thatcher in its first four pages (135-138). The preceding Chapter 6, Ages and Stages, had made more of a concession to lesser intellects, with references to Absolutely Fabulous, The Simpsons, Sex in the City, and Friends, and for readers, Lord of the Flies.

But where are the flaws? In my view, these stem principally from Willett’s interpretation of British 20th century demography:
… not many people were born in the 1930s. … Then, in the 1940s, contrary to all the official forecasts, the baby boom got underway. The first surge had already started during the War, with births rising from the early 1940s to reach an exceptional peak of more than one million in 1947. Four key factors led to this dramatic rise in fertility rates. First, after the low fertility of the 1930s, women faced the choice of either not having children at all or getting on with it even in the unpropitious circumstances of the War. Think of the decline and surges in birth rates as like someone playing an accordion. Births can be low and spread out as people put off having children, but then births get compressed together in a few years. Second, high wartime employment for women (as well as men) provided financial security that encouraged more children. Third, the Second World War saw a sudden and enormous increase in government-funded local authority nurseries on a scale not to be seen again for at least fifty years. Fourth, there was a direct financial incentive as a soldier's pay was increased if he had children. Britain had a pro-natalist policy, without even realizing it. After the first baby boom there was then a modest decline during the early 1950s before the baby boom reached a second peak in 1964 and 1965, declining steadily over the next decade. These twin peaks are very different from the American post-War baby boom which grew steadily to one sustained high plateau in 1957-61. (pages 37,38)
Being a techie I found this description of demography without a graph (or chart) slightly disconcerting. But charts then are not really Willetts’ style, as for example when making a very significant point about social mobility on page 201/202:
… Imagine two curves with the performance of the high-ability low-income child declining over time while the performance of the low-ability high-income child improves. The two curves cross over long before the age of 11: bright children from modest backgrounds have already fallen behind less intelligent children from more affluent social economic backgrounds.
rather than “Imagine two curves”, wouldn’t it have been better to plot them?

However, in the paperback Afterword, when Willetts returns to defining the baby boom, this time there is a graph to support the demography:.
… There is [, however,] no authoritative definition of baby boomers, but neither is it just a transient cultural label. It rests on incontestable demographic facts and serious analysis of what happens to an economy after a surge in the birth rate. And now I can correct a very serious omission from the book - a chart showing the number of births in the UK since the 1930s ('Baby Boom and Bust', p.271). This chart is probably the single most valuable data set in understanding our post-war economic and social history. You can see the youthful turbulence of the 1960s comes from that first surge in the birth rate after 1945. There is a second peak, too, that lead [sic] to a second and rather more hard-edged surge of youthful turbulence with the poll tax riots and raves. There is a dip between these two peaks of the birth rate in 1947 and 1964, but it is not a deep dip. Indeed, for the twenty years after World War Two, the crude birth rate - literally the number of babies born in the UK - never fell below 800,000 per year. Since then it has never reached that level. That was the baby boom: if you were born then, you are a baby boomer. (pages 266, 267).
To me, two peaks with a dip do not constitute a sustained boom. A different chart, and one which would have been readily available to Willetts, was provided in a Research Paper published in 1999 by the House of Commons Library, A Century of Change: Trends in UK statistics since 1900.

This tells a rather different story of British 20th century demography. The two World Wars were both followed by short sharp surges in live births soon after demobilisation of the men who had been conscripted to fight. The children born after the First World War in the 1920 surge were, as it turned out, destined to fight in the Second. Then, after victory in 1945, those who survived were able to return home to start their own families. Thankfully, those who were born in that second 1946/1947 surge never had to be conscripted and were able to spread their family-building over a longer period, but nonetheless the concentration was enough to cause a further bump in the birth rate in the 1960s.

To underline this interpretation, the next pair of charts show the numbers of men and women being demobilised from the Armed Forces in 1945 and 1946, and births in England and Wales in the final years of that decade. That there was a lag of about three quarters (nine months!) between demobilisation and maternal deliveries shouldn’t come as a surprise. Probably nor should the drop in births in the last two quarters of 1945. This reflected the lower number of young males present in the UK after D Day in June 1944!

The UK experience was not the same as that of the United States which did have a sustained “baby boom”. This also started with a higher birth rate after GI demobilisation, but then continued more or less unabated through to the 1960s, as can be seen in the chart below.

Having committed himself to the notion of US-style ‘baby boomers’ here, Willetts starts hammering US square facts into round UK holes, for example:
[The UK] sent soldiers to Korea and stayed out of Vietnam. But Vietnam happened during the formative years of the baby boomers and so casts a far longer shadow than Korea, which was only a decade earlier, and actually saw British soldiers fighting and dying. (page 61)
Certainly, and deplorably, in the UK Korea is largely a forgotten war (though not in Gloucestershire, SW England), but Vietnam surely casts very little shadow except as a US import in the form of films and music. Ironically, the most frequent reference to Vietnam in recent years has been as a foreign policy counterpoint to the UK’s involvement with the US in the Iraq war.

Willetts is also convinced that “our culture is weighted towards the baby boomers” and takes pop music as an example, again relying on the US experience to support his argument:
Albums from the boomers' adolescence do extremely well, even on a demographically adjusted basis. … big cohorts enjoy far deeper musical markets with much greater diversity than do their colleagues in other cohorts. As a consequence, a big cohort may actually deliver a genuine improvement in performance that is more than proportionate to its size. So the baby boomers did have something special going for them and this may have magnified their cultural impact. Another survey, on the fortieth anniversary of Woodstock in 2009, shows how the boomers' musical tastes have spread to other generations of Americans. The great bands of the sixties have an extraordinarily wide appeal - the Beatles in particular are in the top four of most popular musical performers for every age group, with the Rolling Stones not far behind. (page 62)
Of course, the Beatles, born 1940 to 1943, and the Stones members in their 1965 heyday, born 1936 to 1943, all arrived well before the end of the Second World War. (The only Rolling Stone born after the war is Ronnie Wood (b 1947), who joined in 1975).

In bolstering his argument, Willetts leaves no stone unturned, for example on page 129:
The two most violent riots in post-War London were the Grosvenor Square riots of 1968 and the Brixton and Broadwater Farm riots of 1985. They occurred around twenty years after each of the post-War baby boom peaks.
This ignores the four days of vicious rioting in London’s Notting Hill in 1958, and as the charts above show, the UK birth rate in the late 1930s was low. The August 2011 riots, (which obviously were after the publication of The Pinch) could be argued as evidence supporting Willett’s theory, given the small birth peak circa 1990, but alternative, and possibly more convincing, explanations may emerge.

I suspect Willetts’ reluctance to use charts stems, despite his think tank credentials, from a deeper disinclination towards numeracy. For example, his interpretation of Table 1 on page 72 is doubtful:
The table shows half of all wealth in owner-occupied housing, £1,030bn, belongs to the baby boomers and only about £330bn or 15 per cent to everyone aged under 44. A separate analysis using different data estimates total net housing wealth in 2009 at £2.9tn. Of this only £550bn belonged to the under 50s, and £2,350bn belonged to the over-50s of which £1,300bn belonged to those aged between 50 and pension age. This is stark evidence of the concentration of housing wealth in the hands of the over-50s, particularly the boomers.
Ignoring the way he has chosen to mix trillions and billions (sums which now seem small beer in comparison with bank and euro bailouts), there are some obvious flaws in this argument, based as it is on Net wealth. Firstly, there is no data on the numbers of people in each age group, but surely there are many more over 65s than in each of the three ten-year groups? Secondly, the variation in the Gross wealth in the groups above 35 isn’t great, but the older groups have smaller Mortgages outstanding – what a surprise! As an insight this ranks with the apocryphal sociological finding that “taller men wear longer trousers”.

If nothing else, the presence of a minor error concerning something insignificant serves as a reminder of the need to keep a critical eye on all material purporting to be factual (including this blog). Game theory is introduced encouragingly on page 86:
Game theory has suffered from some terrible PR. Two geniuses of game theory star in famous films. The inventor of game theory, John von Neuman, was the model for Dr Strangelove, acted by Peter Sellers as a mad Nazi who can barely restrain his arm's indiscriminate urge to give a Hitler salute. John Nash does slightly better with Russell Crowe in A Beautiful Mind …
Certainly von Neuman, like Edward Teller and Werner von Braun, has been seen as part of the inspiration for Dr Strangelove (who came in the film from the BLAND Corporation), but if he was modelled on anyone it was probably Herman Kahn (from RAND, the archetypal think tank). Realistically, Strangelove was a composite caricature and owed much to Sellers’ own inspiration.

So, what of Willetts’ original indictment? Firstly, the idea of a British “baby boom” is flawed. But there was a demographic phenomenon which used to be called “the post-war bulge”, particularly at the time when its members were moving as a cohort through the educational system. In the late 1950s the UK was still in the selective tripartite era when so much hinged on performance in the 11+ examinations. There would almost certainly have been much more competition in the late 1950s for places in the type of elite direct grant school which Willetts attended, than in the 1960s for children a few years younger.

But apart from having made an inappropriate analogy with the US, is the substance of his argument valid – have we taken our children’s future? When attempting to answer this, it helps to bear in mind what are probably the only two certainties of human existence. Firstly, none of us had any say as to the time and place into which we are born. Secondly, we will die. “We brought nothing into this world, neither may we carry anything out of this world”, as the Anglican Book of Common Prayer puts it.

Many of us born in Britain in the post-War years are well-aware of the relatively easy time we have had, at least up until the present, by comparison with our elders. Perhaps the most luckless group in British history were those born between 1890 and 1900, so many of the men dying or injured in the trenches, so many of the women then deprived of husbands and children. The men and women born between 1915 and 1925 had to fight in, or endure at home, a second World War. By comparison we have been very lucky. We certainly didn’t invent the final salary pension systems some of us joined, but they were there. And those of us lucky enough to be able to buy houses (with big mortgages at high interest rates) did so to get a roof over our heads, not in expectation of the enormous house price inflation which we were to benefit from. But we were just borne along on the tide of our times, and luckily for us, so far it has not been particularly turbulent. The 11+, the Cuban Missile Crisis and the three-day week were minor tribulations by comparison with the blitz and Dunkirk, and IRA terrorism and the Falklands campaign were insignificant (although people I knew died as a consequence) in comparison with the Somme and D Day.

But are the forces which are likely to shape the destiny of future generations of our making – Islamic fundamentalism, globalisation, deindustrialisation in the Western economies, the rise of China, India and other new powers? – Hardly. Climate change (one of the bills to be paid which Willetts blames on the baby boomers), if it is man-made, is being driven by the rising living standards of hundreds of millions of people in these countries, not by the past consumption of the million or so born post-War in the UK. Even so, Willetts is wrong to suggest that we are indifferent to the interests of our descendants, as recent UK political history clearly shows. Alistair Darling in Back from the Brink, an account of his 1000 days as Chancellor of the Exchequer up to April 2010, devotes the second chapter to The Election that Never Was in 2007:
When we arrived in Bournemouth [for the Labour party annual conference], it was clear that the pro-election faction in the Brown circle was in the ascendancy. The atmosphere was febrile. By the Wednesday of the conference journalists were being briefed, anonymously of course, that there would be an election. Then there were angry and rebarbative denials. Having spoken to Gordon, I didn't think that there would be an election. The problem was that the spin machine was allowed to run out of control and fed the story.
… The Tories, who had had a bad summer trailing us in the polls, pulled off a theatrical coup at their conference the week after ours. George Osborne announced an inheritance tax break that in any other circumstances would have been seen as unaffordable, as was shown by the watered-down version they came up with following the 2010 election. … So, when it finally came, the announcement that there would be no election was a disaster. (pages 36,37)
So what exactly did Osborne offer?
When inheritance tax was first introduced it was designed to hit the very rich. But the very rich hire expensive advisers to make sure they don't pay it. Instead, thanks to Gordon Brown, this unfair tax falls increasingly on the aspirations of ordinary people. So now well over a third of homeowners in Britain have the threat of inheritance tax hanging over them. These are people who have worked all their lives. People who have saved money all their lives. People who have already paid taxes once on their income. People whose only crime in the eyes of the taxman is that instead of spending their savings on themselves, they want to pass something on to their families. People who feel the most basic human instinct of all: they aspire to a better life for their children and their grandchildren. Our Government will be on their side. The next Conservative Government will raise the Inheritance Tax threshold to £1 million. That means, we will take the family home out of inheritance tax. In a Conservative Britain, nine million families will benefit. In a Conservative Britain, only millionaires will pay death duties. In a Conservative Britain, you will not be punished for working hard and saving hard. You will not be penalised for wanting a better life for your children. [My emphasis in bold]
It was this passage, attractive both to those who ‘can’t take it with them’ and to their beneficiaries, which boosted the Tories’ poll ratings, and postponed the election. If Willetts wasn’t at the conference to hear it, he certainly knew about it and would have appreciated the appeal of the sentiments it expressed. He is also well aware that many parents, happily still in this world, are helping their children, if they are in a position to do so, and, indeed, he refers to ‘the bank of mum and dad’ ( p223). Of course, what politicians choose to deliver is rarely what they offered, and inheritance tax reform was effectively abandoned as part of the coalition agreement.

And it is as the work of a politician, that Willetts’ book is best regarded. If a government wants to redress a perceived general imbalance between different generations, particularly at a time of falling living standards, but regards easing the inheritance of assets within families as inhibiting social mobility, or too expensive, the power to do something about it is in their hands. Back in February I commented here on a paper produced by the Institute of Economic Affairs, Sharing the burden - How the older generation should suffer its share of the cuts. This assessed the savings that could be achieved by the removal of various benefits and allowances totalling £18.5bn pa. Of course, any government which implemented such a package would have to accept the electoral consequences, particularly given the greater inclination of older people to vote.

Two final points. Firstly, Willetts frets about the cost of the infrastructure that “our economy will need if we are to prosper”. Certainly, the UK, particularly by comparison with France, could be in a better state. But where did that stem from? Denis Kavanagh, Emeritus Professor of Politics at Liverpool, and co-author of The British General Election Series, has remarked:
But the Thatcher era also meant a massive under-investment in infrastructure, particularly railways, roads, schools and universities.
The UK was self-sufficient in oil during the period when Thatcher (b 1925) was Prime Minister and Nigel Lawson (b 1932) Chancellor of the Exchequer. If the proceeds of that considerable boost to the British economy should have been better used, the responsibility is hardly that of the post-war contingent. Secondly, Willetts is concerned about the “cost of paying pensions when the big boomer cohort retires”. This event has been predictable for over 60 years, and the creation of a ‘Sovereign Wealth Fund’ of the Norwegian kind during the oil-rich years could have helped cover it. Alternatively, the Second World War debt to the US may have been paid off in 2006 (page 168; guess out of whose taxes) but some of the indirect costs of the war, like the pensions of the bulge of children born after it will have to be carried for some time. Of course, if there had not been a war, and no mass conscription after 1941, their parents would still have had similarly-sized families, but not in such a short period, and not now all turning pensioners at once.

Which leads to probably the most thoughtless remark in the whole book. After quoting Adam Smith on the virtues of prudence, Willetts observes that
Modern life is full of new temptations. Our self-control is tested in a way that was not possible until Britain emerged from austerity after the War – when one of the first responses was of course a baby boom.
It’s a pity that instead of misappropriating the Americanism ‘baby boomers’ Willetts didn’t give some consideration to Tom Brakow’s ‘Greatest Generation’, meaning those who grew up in the US during the deprivation of the Great Depression, and then went on to fight in World War II. I said at the beginning of this post that by Willetts’ definition I am a ‘baby boomer’, although I prefer to think of myself as part of the ‘post-war bulge’. As it happens, both my parents were born in 1920, in the aftermath of World War I in which their fathers had fought. As a reservist my father was mobilised in September 1939, and was not demobilised until 1946, returning to his wife nearly five years after their wartime marriage. I don’t think my arrival the following year was due to a lack of ‘self-control’ on their part. It is an insult to them, and to hundreds of thousands of other couples with similar stories of wartime separation, to suggest that it was.

Fortunately, the British ‘Greatest Generation’ were a stoical lot, and rather than take offence, would probably just accept, to the tune of Colonel Bogey of course, that “Willetts Has Only Got One Brain” – like the rest of us.

NOTE ON DATA

The first chart above, 'Baby Boom and Bust', and the later Table came from The Pinch paperback, and the second chart came from the House of Commons Library Research Paper as cited.

In the third chart, the demobilisation data (men and women discharged from HM Armed and Auxiliary forces in 1945/46) came from Alan Allport’s website which supports his book Demobbed: Coming Home After World War Two.
Also in the third chart, the England and Wales births came from the Registrar General’s Quarterly reports as reported in The Times from 1943 to 1949 and now available on their archive website to subscribers. It was one of these reports that made the comment about the fall in the birth rate after D Day. If anyone can supply the total UK births during this period, I would be happy to replace the England and Wales data in the chart.

The US births in the fourth chart come from data provided by the Centers for Disease Control and Prevention at www.cdc.gov/nchs/data/statab/natfinal2003.annvol1_01.pdf.

The 2010 voting turnout data are reproduced from a previous post here.