Tag Archives: osborne

Scottish referendum results: winners and losers

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The results are in, and Scotland did not vote yesterday to become a sovereign, independent country.scotlandUnited Kingdom Flag Icon

Scottish residents — and all British citizens — will wake up today to find that, however narrowly, the United Kingdom will remain as united today as it was yesterday, from a formal standpoint.

With all 32 local councils reporting, the ‘Yes’ camp has won 1.618 million votes (44.7% of the vote) against 2.002 million votes (55.3% of the vote) in favor of remaining within the British union, capping a 19-month campaign that resulted in a staggering 84.6% turnout in Thursday’s vote.

Moreover, ‘Yes’ won four councils, including Glasgow, Scotland’s largest city:

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But the close call has shaken the fundamental constitutional structure of the United Kingdom, and Scotland’s vote will now dominate the political agenda in the final eight months before the entire country votes in a general election next May, for better or worse.

So who comes out of the referendum’s marathon campaign looking better? Who comes out of the campaign bruised? Here’s Suffragio‘s tally of the winners and losers, following what must be one of the most historic elections of the 2010s in one of the world’s oldest democracies.

The Winners

1. Scottish nationalism 

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The nationalists lost Thursday’s referendum. So why are they still ‘winners’ in a political sense? Continue reading Scottish referendum results: winners and losers

Scotland votes: Should it stay or should it go?

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Today, residents of Scotland, a region of 5.3 million people, will vote in referendum that’s been scheduled for 19 months, and that will ask one simple question:scotlandUnited Kingdom Flag Icon

Should Scotland be an independent country?

The answer could change the economic, social and cultural outcomes of the lives of both English and Scottish residents for generations to come.

With polls set to open shortly, Suffragio looks at ten policy (and other) issues that Scots are considering as they cast their ballots, either to become an independent state or to remain part of the United Kingdom. Continue reading Scotland votes: Should it stay or should it go?

Why would an independent Scotland even want to keep the pound?

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Who cares about the pound anyway? scotlandUnited Kingdom Flag Icon

In the campaign for Scottish independence, key ‘Yes’ camp leaders consistently argue that a sovereign Scotland could retain the British pound as currency, and they’ve decried statements from British officials that Scotland wouldn’t be permitted to use the pound in the event that Scottish voters opt for independence in the September 18 referendum.

But putting aside whether, as a technical matter, Scotland would be able to adopt the pound, the greater issue is why it would actually want to do so — either in a formal currency union with the rest of the United Kingdom or by informally adopting the pound sterling as Scotland’s currency (‘Sterlingisation’).

Even though polls show the ‘Yes’ campaign narrowing the gap with the ‘No’ side, (the latest YouGov survey, taken between September 2 and 5, gave the ‘Yes’ camp its first lead of 47% to 45%, with 7% undecided), almost every poll in the last year shows more Scottish voters  opposed to independence than in favor of it.

If the ‘Yes’ side falls short, one of the key questions will be whether the decision to embrace the pound as an independent Scotland’s currency was wise as a strategic matter. But if the ‘Yes’ side carries the referendum, Scotland’s first minister Alex Salmond will have to confront what kind of independence he’s actually won for a new country yoked on Day One to monetary policy dictated by the Bank of England.

It’s odd that the campaign’s fight over the pound has become such a central debate, but it’s possibly even odder that Salmond would cling to the pound (and other indicia of the union, such as the British monarchy) in his campaign for independence.

George Osborne, chancellor of the exchequer, has attempted to maintain a united front among his own Conservative Party, the Liberal Democrats and Labour that Scotland would not be able to avail itself of the pound if it becomes an independent country. But there’s plenty of skepticism that the remaining United Kingdom of England, Wales and Northern Ireland would actually be able to stop Scotland from doing so. Continue reading Why would an independent Scotland even want to keep the pound?

Miliband’s EU hedge makes a disastrous referendum more likely

edmiliLabour leader Ed Miliband announced yesterday that, if elected prime minister after next year’s general election, he would not hold a referendum on the United Kingdom’s continued (now 41-year) membership on the European Union.United Kingdom Flag Icon

At first glance, it sounds like exactly the type of pledge that plenty of pro-European British constituencies, including much of the business community, would applaud — eliminating the uncertainty of the United Kingdom’s future within the European Union that features prominently in the current government’s referendum promise.

It’s hard to see what Miliband has to gain politically or strategically with his new pronouncement on a future EU referendum, a essentially in reaction to Cameron’s position from last year.  It will satisfy neither pro-European nor anti-European voices, allows Cameron to bill himself as a champion of democratic choice, adds additional uncertainty (especially with the likelihood of a new Berlin-led EU treaty effort in the years ahead), and locks Miliband into what could be incredibly short-sighted  policy.

Most of all, it shows why so many Brits, including plenty of Labour supporters, fear that Miliband doesn’t have the skills to make it to 10 Downing Street. Continue reading Miliband’s EU hedge makes a disastrous referendum more likely

A bad day for Boris — London’s mayor called ‘nasty piece of work’ in interview

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Boris Johnson, reelected last year as London’s major and often discussed as a potential Tory successor to prime minister David Cameron, had a very bad weekend.United Kingdom Flag Icon

In an interview with the BBC’s Eddie Mair, Johnson hemmed and hawed over whether he once invented a quote 30 years ago as a young news reporter, lied to former Conservative leader Michael Howard over an affair and a controversial phone conversation from 1990 between Johnson and a friend who wanted to, perhaps, assault a journalist (the journalist was never assaulted, though), each of which are revelations to be discussed in an upcoming documentary about Johnson’s life.

The interview culminates with Mair asking, ‘you’re a nasty piece of work, aren’t you?’

Mair finishes the interview challenging Johnson’s integrity even further for refusing to answer whether he wants to be prime minister one day.

I’m not sure that the questions were entirely relevant to Johnson’s role today as a two-term mayor of London, but it was nonetheless painful to watch Johnson dissemble throughout the interview, especially given the easy manner that ‘Boris’ generally has in public, which was clearly on display during the 2012 summer Olympics.

I’ve seen bad interviews before, and this is about as bad as the infamous Roger Mudd interview with the late U.S. senator Ted Kennedy in 1979 when Kennedy couldn’t give a compelling answer as to why he wanted to be president (Kennedy was challenging U.S. president Jimmy Carter at the time for the Democratic Party’s nomination).

The interview doesn’t necessarily end his chances to become prime minister one day, and it may well backfire on Mair, but it will also certainly renew and reinforce existing doubts about the London mayor’s discipline and his image — it’s the downside to the boyish, off-the-cuff charm that has made him such a noteworthy foil to the more dour Cameron and his chancellor of the exchequer, George Osborne.

Watch the choice clips from the interview below the jump:

Continue reading A bad day for Boris — London’s mayor called ‘nasty piece of work’ in interview

Should David Cameron change course over the UK budget?

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The United Kingdom is closer to May 2015 than it is to May 2010, which is to say that it’s closer to the next general election than to the previous one.United Kingdom Flag Icon

With the announcement of the 2013 budget coming later this month, likely to be very controversial if it features, as expected, ever more aggressive expenditure cuts, what does UK prime minister David Cameron have to show for his government’s efforts?

The prevailing conventional wisdom today is that Cameron and his chancellor of the exchequer George Osborne (pictured above) have pushed blindly forward with budget cuts at the sake of economic growth by reducing government expenditures at a time when the global economic slump — and an even deeper economic malaise on continental Europe — have left the UK economy battered.  If you look at British GDP growth during the Cameron years (see below — the Labour government years are red, the Cameron years blue), it’s hard to deny that it’s sputtering:

UK GDP

 

One way to look at the chart above is that following the 2008 global financial panic, the United Kingdom was recovering just fine under the leadership of Labour prime minister Gordon Brown, and that the election of the Tory-led coalition and its resulting budget cuts have taken the steam out of what was a modest, if steady, economic recovery.  Those cuts have hastened further financial insecurity in the United Kingdom, critics charge, and you need look no further than Moody’s downgrade of the UK’s credit rating last month from from ‘AAA’ to ‘AA+’ for the first time since 1978.

An equally compelling response is that British revenues were always bound to fall, given the outsized effect of banking profits on the UK economy, and that meant that expenditure corrections were inevitable in order to bring the budget out from double-digit deficit.  In any event, 13 years of Labour government left the budget with plenty of fat to trim from welfare spending.  Despite the downgraded credit rating, the 10-year British debt features a relatively low yield of around 2% (a little lower than France’s and a bit higher than Germany’s), and we talk about the United Kingdom in the same way we talk about the Netherlands, Belgium and Germany — not the way we talk about Iceland, Ireland, Spain, Italy or Greece.  Given the large role the finance plays in the British economy, it wasn’t preordained that the United Kingdom would be more like France than, say, Ireland.

Nonetheless, polls show Cameron’s Conservative Party well behind the Labour Party in advance of the next election by around 10%, making Labour under the leadership of Ed Miliband and shadow chancellor Ed Balls, a Brown protégé, implausibly more popular than at any time since before former prime minister Tony Blair’s popularity tanked over the Iraq war.  Despite Cameron’s ‘modernization’ campaign, which notched its first notable triumph with the recognition of same-sex marriage in February, over the howls of some of his more old-fashioned Tory colleagues, he remains deeply unpopular.

Meanwhile, the upstart and nakedly anti-Europe United Kingdom Independence Party — Cameron famously once called them a bunch of ‘fruitcases, loonies and closet racists’ — has grown to the point that it now outpolls Cameron’s governing coalition partners, the Liberal Democratic Party. UKIP even edged out the Tories in a recent by-election in Eastleigh, and Cameron has relented to calls for the first-ever referendum on the continued UK membership in the European Union (though, targeted as it is for 2017, it assumes that Cameron will actually be in power after the next election).

Nervous Tory backbenchers, already wary of local elections in May and European elections in 2014, are already starting to sound the alarms of a leadership challenge against Cameron, though it’s nothing (yet) like the kind of constant embattlement that plagued former Labour prime minister Gordon Brown.

Former Conservative prime minister Margaret Thatcher faced an even more dire midterm slump in the early 1980s and still managed to win the 1983 general election handily, but if the current Labour lead settles or even widens, political gravity could well paralyze the government in 2013 and 2014 in the same way as Brown’s last years in government or former Tory prime minister John Major’s.

It’s worth pausing to note what the Cameron-led coalition government has and has not done.

Continue reading Should David Cameron change course over the UK budget?

Tensions start to appear in Tory-Lib Dem coalition in the UK

There might be no more yawn-inducing issue in UK politics than House of Lords reform.

But that issue has led to the greatest moment of crisis between the Conservative Party and the Liberal Democratic Party, which together govern the United Kingdom in a first-of-its-kind Tory-Lib Dem coalition government.

The importance of the week’s jousting is not about electoral reform, to save the suspense.

It’s about the that it marked the first major tear in the Coalition: a Tory bid to stymie Lords reform led Lib Dem leader and deputy prime minister Nick Clegg (pictured above, right) to declare that he would direct his party to vote against another electoral reform measure supported by the Tories.  It’s the first time Clegg has so aggressively and directly fought back against his Coalition partner.

Right-wing newspapers are already savaging Clegg.  But for its faults, the two-party Coalition still remains more united and disciplined than the Tories were (when they were governing by themselves!) in the last years of John Major’s government in the mid-1990s, when Europe and scandal hopelessly split an undisciplined party.  It’s probably more united than the New Labour government in its last years, hopelessly split between Blairites and Brownites on the basis of no true underlying policy differences.

The most alarmist talk about the danger to Cameron’s government is overstated — more most surprising, perhaps, is that the Coalition made it nearly halfway through the natural term of the parliament with so much unity.  Clegg has not yet flinched in giving his party’s support to Tory leader and prime minister David Cameron (pictured above, left), even as the budget cuts of a severe austerity program implemented by Tory chancellor of the exchequer George Osborne seem to be dragging the UK economy back into a double-dip recession, to say nothing of student fees or other policies that are less than satisfying to the Lib Dem rank-and-file, which has typically been more of the left than of the right.

As The Guardian notes, Clegg can claim a moderating influence on the current government:

Most of the cases that [Clegg] can demonstrate are negative ones. The Lib Dems have played a vital role in making Tory legislation less extreme, less red meat. The health reforms could have been worse; Europe policy would have been more barking; welfare changes would have hurt the vulnerable even more.

But voters don’t seem to be giving Clegg much credit.  The center-left Labour now has a five-point lead over the Tories (39% to 34%) in the latest Guardian/ICM poll from late June, but the Lib Dems have taken the greatest electoral brunt with just 14% support, a sharp fall from its 23% vote in May 2010.

Luckily for Clegg and Cameron, most of the UK was too busy on holiday or watching the Olympic Games in London to notice (although Cameron must not be thrilled that his semi-rival, London mayor Boris Johnson, has received such fawning attention).

So what happened? Continue reading Tensions start to appear in Tory-Lib Dem coalition in the UK