Don't even think about it: Why backbenchers must back off Cameron

Last month it was alleged by backbencher Bob Stewart that he had been approached by colleagues to form a leadership challenge to David Cameron. With ‘Borismania’ the centre piece of this year’s Party Conference, talk of an pending challenge has been filling the political gossip pages for weeks now, not helped by Boris’ regular public disagreements over government policy. What such a challenge would represent is highly detrimental to the Party and it begs the question over whether some in the party have learned the lessons of the past.

Not many of the core supporters or those of the grassroots would say that this frontbench is representative of their views or interests everytime, nevertheless overthrowing this leadership, without democratic mandate from the public would come at a massive cost to the Party going forward.

What those disgruntled on the back benches must remember, before pressing the issue of a change of leadership, is the context in which David Cameron assumed the leadership.  

The Party was left toxically divided by the ruthless casting aside of Thatcher throughout the difficult years of Major’s Premiership. This disunity continued after 1997 by the rise of popularity of so called ‘New Labour’, this marginalised the Tories, especially the unfashionable Right faction of the Party, leaving us simply unelectable.

Poor choices out of a poor selection of leadership candidates simply made this part of our history even more harrowing. What David Cameron, whatever his flaws may be, picked up in 2005 was a shambles. A broken Party, broken by the best part of 20 years of disunity, infighting, scandal and perceived ‘outdated’ and ‘out of touch’ principles. What Cameron did in his years in Opposition was modernise the party, reclaim and reach out our appeal to the electorate. Cameron, with the help of the incompetence of Brown in Number 10, put the Conservative Party back on the map and this is where we must stay.

Cameron’s change in approach and claim over the Centre Ground, paved the way for our return to Government, albeit not in triumphant fashion, with the failure to secure an overall majority. This return to power paved the way for Michael Gove’s excellent education reform and Iain Duncan-Smith’s welfare changes. Cameron’s gestures of modernisation, such as ‘hug a hoodie’ , ‘liberal conservatism’, support for gay marriage and ‘Web Cameron’ made a significant difference to the Party’s image, making us again credible and appealing to the wider public.

So where has it all gone wrong for Cameron? Ultimately this stems back to a poorly presented Budget and various ministerial scandals. But these issues have had such an exacerbated effect due to frustration over the slower than expected economic recovery, making such scandals further irritable to an already agitated public and Conservative backbench. But a change in leadership now would make the matter so much worse. Again, we would be a party rife with vicious division. It would be reminiscent of the Post-Thatcher era of infighting and detachment from reality. To the public it would appear that we would have learned nothing from this forgettable episode. But we cannot forget as the only winners here would be Labour and no doubt we would again be punished by the electorate.

So how can Cameron ensure this scenario no longer threatens to become reality? This all said it is the state of the economy that really matters. Not just for the public, but to those inside his own party.

Cameron and his inner circle of “metropolitan elites” must, of course oversee an economic recovery, bought by the public. They must do this by maintaining their sense of mission in wiping out the budget deficit. But they must also successfully turn their attention to growth. All efforts must be committed to presenting a credible set of policies to bring about growth and private sector jobs. Moving Michael Fallon to the Business department is long overdue and is a masterstroke to  change public perception that this Government has growth at the top of its agenda. This would surely sooth disgruntled backbenchers.

The frontbench must also, if they can reflect backbench opinion more in Government. If they can, given that it is a Coalition, they could bring more core conservative principles and policies to the agenda. But what the Right of the party must remember is that it is the moderate Centre which has a democratic mandate, not the Right. Anything beyond this is simply party politics.

Cameron cannot be judged by his backbenchers solely by what he does in Coalition, all effort and energies must be committed to securing a landslide majority in 2015. Then, Cameron must get the balance right between appeasing the Right of the Party and staying in touch with the moderate public. Cameron’s ability to assert himself is limited inevitably, by the presence of the Liberals in the Government. How Cameron would fare as the Leader of a majority Conservative Government is a question for the Party post-2015 and not a day before.

Britain back in recession: The key to growth that the coalition is missing

So the UK is technically back in recession, not as worrying as it sounds but nevertheless remains concerning and alludes to the government’s failure to generate wealth and therefore growth.

The key to this is not to reverse austerity measures. They are necessary in order to lower the absurd debt run up over past years. What the government need to do is something about the policies that obstruct growth and enterprise which deter business coming into the UK.

Firstly the government need to lower corporation tax. Osborne lowered this in the Budget earlier this year from 26% to 24% but as I argued in my post on the Budget, this is not competitive enough. Corporations are essential for economic growth, therefore we must work with them, and not against, in order to alleviate us out of recession.  Director of the Centre for Policy Studies Tim Knox is one of numerous business voices who make a compelling argument to lower corporation tax to something nearer 10-15p. What a much lower rate of corporation tax will do is ensure that the UK is one of the fastest growers in the world. We need to attract the business confidence of foreign wealth generators.

Another crucial area of policy that needs to be addressed is employment legislation. The power of Trade Unions over political life may have substantially curbed thanks to Thatcher, but whilst Labour did not reverse this trend, they instead committed to statute the regressive will of the Unions. The rise in compensation culture and other disproportionate legislation has had the knock on effect of deterring businesses from expanding their work force. Whilst public sector employment is largely due to the impact of sector cuts, unemployment has become such a problem due to the lack of jobs generated in the private sector. Attracting and supporting business in these areas is the only way of resolving this unemployment.

The minimum wage also needs to be examined. In theory this protects workers from exploitation but actually in practice the policy has failed to do this. Labour neglected to link the minimum wage in line with inflation, therefore it contributed to the depression of wages, making the policy meaningless. Leaving this to the market is a way of resolving this. Many would pay more competitively if not for the government endorsement of a low minimum wage. The market knows best when dictating wage levels.

And what about retail? One of the least business-friendly policies in the Budget was rise in business rates to 5.8pc. This is no way to grow an economy as it burdens all businesses on the high street, especially small and local businesses yet was not addressed in the Budget. Business rates are a means used by local councils to generate funding, but what the state are in practice achieving with this policy is first and foremost, obstructing business from generating wealth which then has a knock-on consequence of ensuring that councils collect less taxation, due to lower profits. A lower business rate would, in reality see Councils collect more taxation from a larger pool of profit. This would also contribute massively to the overall national economy. Business rates must be addressed.

There is a common theme running through these problems with government economic policy.  That is when the government does less, they are in fact doing more. My concern with what the coalition is doing in respect to the economy is not with what they aren’t doing, but with what they are doing too much of.

This has even permeated to their austerity measures in the form of VAT. VAT is impacting disproportionately on ordinary people whom make up the majority of consumers. The rise of VAT to 20% has hit people and businesses alike very hard. High VAT by the government is a lazy, short-termist measure of generating revenue when in fact what the government needs to do is assist business in generating wealth. They can do this through addressing the obstructive policies that I have talked about. The state deterring consumers from purchasing in this respect is indicative of too much government in the day-to-day lives of citizens. Government must not  put the breaks on prosperity. This clearly is not in consumer interests, neither is it a policy conducive to business.

The government therefore must do less, if they want to do more. Very simple in theory, but is evidently politically challenging to a coalition. The government can’t afford to be afraid of making unpopular decisions. What the public need from the government is the will to generate growth and concern themselves less with  shaking off the image of being “posh boys”.  The public will be forgiving in the long term if the government takes the tough decisions in order to sort out the economy. That is the mandate from which Cameron was elected. But what the public won’t accept is pain without a clear end goal in sight which promises better times. Cameron can afford to be unpopular, but he can’t afford to fail.

Why both Kinnock and Cameron failed to win open-goal elections

Easter Monday and the 1992 General Election is treading on Twitter. This struck me as very odd. I soon discovered that the BBC was airing the footage of election night on their Parliament channel. Whilst I still don’t quite understand its festive significance it has certainly made for fascinating viewing, twenty years after John Major, against all odds and polls surged to a late majority to bring home a fourth consecutive election victory for the Conservatives.

A running theme in the coverage is the concern at the somewhat forgotten recession of the 1990s. The Tory victory undermined the election success Giant of “It’s the economy, stupid”. This alludes to the fact that the economy is the central issue going into an election. If the government get this right, then they get rewarded however if the economy goes pear-shaped under the governments watch, then they are punished by the public. Surely John Major’s government couldn’t have won yet they did. The question for politicians at the time was ‘”why?”. Understanding of this in 1992 is no less relevant today.

The truth is the Conservatives were there for the taking. The economy was in trouble, the party was much divided and was led by a man who had already governed unconvincingly for several years without a direct mandate or approval from the British public. This prima facie ought to have been enough to secure electoral humiliation and a Labour victory. This however proved no more than a pipe-dream for the Left.

Where Labour ultimately missed this open goal opportunity was ensured by their failure to secure economic credibility. Whilst Kinnock’s reforms to the party were noteworthy, he did however fail to shake off sufficiently the influence of the socialist left and the trade unions over Labour. Labour had not yet got to grips with the fundamental principles behind the country’s dramatic economic renewal. This was through enterprise, growth, prudent public spending and most significantly of all low taxation.

Labour need not have waited until 1997 to claim power from the demising Conservatives, had they accepted these principles then they could have won confidence. However what undermined Labour was their stubborn, constitutional dogmatic commitment to socialism, their willingness to encourage government dependency, their inability to adequately stand up to the trade unions and their determined subscription to unreasonable taxes. What this meant was the public could not trust them and this was translated electorally in what was one of the greatest election underachievements in our history.

This was all impressively addressed going into election in 1997 by Tony Blair, Gordon Brown and Peter Mandelson with the birth of ‘New Labour’. This demonstrated that the Labour Party could be rid of the stigma of loony leftism and was capable of forming a credible alternative to the Conservatives.

Now let’s examine the greatest underachievement in election history. The Conservative failure to secure a majority in the 2010 contest. Gordon Brown was the most unpopular Prime Minister in a very long time, the party was hugely divided and riddled with scandal.

Cameron won the argument in respect to achieving public recognition that spending cuts were necessary. This was candidly achieved with lines such as “We are only asking to cut 1p in every pound”. Whilst this was true, in Chancellor Polls of Vince Cable, Alistair Darling and George Osborne, Osborne actually had the lowest public confidence whilst actually Vince Cable had the largest. This shows that in 2010 the public were more convinced that we needed to get Labour out of power than we were that the Tories were the right party for governance.

Where I believe Cameron and Osborne failed was in their failure to relate to the people. Where Kinnock went into election armed with many policies, albeit wrong ones, Cameron kept his cards very close to his chest. The centre piece of the opposition years was the Big Society agenda. This failed to really talk to people. What is meant by the ‘Big Society’ is still unclear today but this was even more the case back in 2010. Nobody knew what the ‘Big Society’ meant. Where Cameron could have won the election was to go further. Winning the debate on austerity was not enough. You can’t win an election without any policies, no matter how unpopular the government were.

What Cameron needed was commitments to lower taxes. Labours tax policy under Brown moved away from the fiscally prudent New Labour approach. ‘Big Society’ sounds great but was too airy fairy. It does not directly affect the individual lives of voters and their families. Commitments to lower taxes do. Bringing the lowest paid people out of income taxation, lowering the crippling tax burden on Middle England and an alternative to Labour’s unsustainable welfare policies ought to have been the clear and simple message that gets the public on board. This alongside their success in shaping the economic debate towards austerity would no doubt have won over the British people.

What the 1992 election shows is what we already really knew. The public flirted with socialism in 1992 in desperation in order to get the Tories out, but just about resisted and waited for Labour to return with a much more realistic proposition in 1997. Thatcher well and truly got the country on side in terms of moving the country away from the post-war consensus era. Ironically it was in the years following Thatcher's departure that arguably ensured the prospects of socialism had well and truly died.

Labour lost 1992 because the public couldn’t trust them and their economic policy. On a slight variation, Cameron failed to win outright in 2010 because his economic policy was not explicit enough, voters understandably did not want to take a lurch into the unknown. The lesson for Cameron was that what the public want from a government is a degree of certainty as to what they will get from a party if they win, not only that but even more crucially the voters have to like it. Perhaps this is something that Cameron and Osborne did not trust.