What is the point of a Labour government?

In one word: competence. There has been such a shortage of it from UK governments in recent years that justifying this attribute would be enough.

What we don’t need is ideology. It led nowhere for Labour under Corbyn in Opposition and led the country over the cliff under Johnson/Cummings and Truss. Add in a lack of ideological compromise over EU membership, leading to Brexit, and the disaster of such an approach is clear.

Competence over ideology should be the point of this Labour government

In recent times, perhaps only Margaret Thatcher made ideology work. But she was competent, the country was badly off course, and her free market ideology often cloaked a good deal of compromise.

Over the pond, Trump, with his tariffs, DOGE, and embrace of strongmen/billionaires, represents a sort of anti-democratic philosophy that may also take his Administration over a cliff. One hopes so, although the consequence of Europe having to finally stand up for its own defence provides some compensation.

But back to the Labour government. It seems to be gradually finding its feet, and not just in international relations. Only Labour can reform the NHS and benefits system free from the charge of hard-hearted malice. Tackling unsustainable disability benefits and stripping the not fit for purpose NHS of some of its bureaucracy by abolishing NHS England is a good start to proving its ideological flexibility.

Prior to that, cutting the international aid budget to pay for increases in defence expenditure again strikes a blow for practicality over principle. Labour from the centre-left got away with it lightly. Even the Tories could not disagree.

Governing is messy. Unpredictable events drive the best laid plans off course. Competing priorities means good government has to compromise. Competence is everything, and that alone will dictate voters’ impressions of whether Starmer and co. deserve a second term.

There is so much more to do. Further NHS reform, changes to the planning system, initiatives to make the civil service and local government more efficient are all badly needed and now. This government needs to go further and faster but not with the burden of ideological certainty.

My betting today is that Labour will win the next election with an increased share of the vote but a sharply reduced majority. This is a similar prediction to that made by Jacob Rees-Mogg at a Spectator magazine meeting I attended! We shall see, but in the face of such hopeless Tory Opposition, they should do.

Today, it feels like a successful Labour government is the only barrier to highly damaging polarised politics washing up on our shores.

In the face of adversity, Starmer comes into his own…

I am not a Labour supporter, but I have always liked Starmer. Why?

First, and wisely, he doesn’t rely on charisma. Politics is not a game, and we are all tired of dishonest, charismatic personalities who are fundamentally incompetent, and that is only in the UK… Starmer is solid, serious, uncharismatic, and ideologically flexible. He held a big job successfully as Director of Public Prosecutions and, despite an uncertain start, now seems to be applying those skills to the role of PM.

After an uncertain start, Starmer seems to be finding his feet and that should be a relief to everyone…

Second, let’s explore that ideological flexibility. Life is too complex and too chaotic to assume a set ideology provides answers in all scenarios. Needs must. Starmer, only elected in 2015, is certainly centre-left but no idealogue. He supported Corbyn out of necessity whilst maintaining support for membership of the EU. He promptly ran for the leadership, promising to continue Corbyn’s policies before ditching them after victory. He suspended Corbyn from the Labour Party on the issue of anti-semitism. In office, he cut the winter fuel allowance, will tackle sickness benefits, and has slashed foreign aid to support an increased defence budget.

He is also ruthless. He fired Sue Gray, his chief of staff, for failing to get the politics right. He dismissed his Transport Secretary for misdemeanours he knew about when appointing her and failed to appoint his long-standing Shadow Cabinet colleague, Emily Thornberry, to any ministerial post for reasons unknown. Apparently, he doesn’t like the tittle tattle of ordinary politics and is not particularly clubbable. Good!

Starmer’s government has taken unpopular economic decisions, some of which are a mistake by sticking to past rash fiscal promises. But they were taken early in his administration. He is moving closer to the EU generally but cautiously and now takes the lead on Ukraine, treading a careful line between his allies and a rogue US presidency which makes the US in all but name a former ally. The latest act by Trump of suspending aid to Ukraine is, quite frankly, incredible and a waste of all the financial support the US previously provided.

He seems to be finding his feet, has four more years, and should make the most of this stability. In such an uncertain world with such little choice in domestic politics, we must hope Starmer, and his government succeed.

Tories lose their way…

Hopeless. For Kemi Badenoch, the clock is ticking. An indifferent performer so far, lacking charisma, she is compounding error after error. No policies yet, except for one; chasing Reform as they top an opinion poll in The Times. Seemingly in response, she has just announced ruling out permanent residence for migrants on benefits. The Tories will always be Reform-lite whatever their dog-whistle policies and yet it is a cul-de-sac they seem happy to run into.

A new Tory leader, already under pressure…

Centrist, moderate Tories should be really angry about the direction of their Party. Cameron called a Brexit vote to see off the threat from the Right. That failed. Johnson’s Brexit deal was a triumph of style over damaging substance. Let’s ignore Truss and Sunak (too depressing) and focus on Badenoch. She is, so far, simply failing to reset the Party, still obsessed by culture politics and immigration with the deeply unpleasant, newly minted anti-immigrant Robert Jenrick (her leadership opponent), snapping at her heels.

A former Cabinet Minister, a friend of mine, said the Tory Party had to move to the Right to defeat populist right-wing forces. Well, that went well, didn’t it? Reform is now topping the polls; the Tory Party is almost wholly an anti-immigration Brexit party now but that still isn’t enough. Languishing at 21% in the polls (third place), its positioning has been a disaster. One aspect of recent opinion polls has also been overlooked. The Tory Party has made zero progress in winning back LibDem voters, crucial for any electoral success.

I was watching a re-run of the Brian Walden interview with Steve Coogan (Walden) and Harriet Walter (Thatcher). Brilliant, and politics is all the poorer for audiences failing to engage with a long-form, incisive political interview. But what struck me, for all the anti-EU rhetoric in losing her Chancellor, Lawson, was Thatcher’s commitment to a single market. It remained undiminished, understanding that concept was in the best interests of Britain. She rarely got sidelined. Economic prosperity was everything. She must be turning in her grave now.

The Tories need to ignore Reform and re-build a credible party based on economic competence and aspiration. They need to argue for their own reset on Europe, particularly with the likelihood of a sympathetic centre-right government being elected in Germany. With Trump in situ, making some concessions for joining a customs union would add to the Tories’ credibility (outside their shrinking, increasingly right-wing membership base), but if not that, further involvement in European defence and cooperation is a no-brainer.

Except, the Tory Party has shown little brains for some time. It is why it is where it is with no prospect of changing anytime soon. It worries only about its Right flank. If I were Labour, Reform or LibDem, I would be in a very happy place right now, at least relatively.

2025 may surprise on the upside…

My uncharacteristic mild optimism may only be due to too many right-wing commentators reading the last rites for liberal democracy. But there you go. They, rather than me, might be disappointed…

It is time for 2025 predictions but also to review those for 2024. Umm…

  • The Tories will go down to a heavy defeat, possibly even annihilation – an easy tick
  • The Tories will move further to the Right after the election – tick
  • Trump will not win the presidency… to be fair this prediction was changed in June after Biden’s disastrous debating performance but still… – a rather large cross
  • The populist Right will make gains in Italy, Germany and France – tick
  • Putin will win in Russia (tongue in cheek!) and Modi in India. Modi lost his populist majority but governs in a coalition – tick
  • The war in Ukraine will grind on but Western resolve will hold up – tick
  • Netanyahu will not survive the year as Israel’s Prime Minister – cross

2025 will be a bumpy year, but perhaps not as bad as expected...

Five out of seven predictions were correct, but I would have sacrificed them all just to be right about Trump. Hey, ho. Perhaps I underestimate the attraction of populists.

So why some optimism for 2025? Well, mainly because populist support has been ‘priced in’, and too many people are dancing too heavily on the grave of moderates. Here we go:

  1. Trump will not be the all-conquering extremist many predict and may surprise on the upside. Janan Ganesh from the Financial Times at my Company’s investment seminar last November predicted Trump would be uncontrollable simply because he doesn’t face re-election. I am not so sure. Despite a largely competent start in picking his rather extreme Cabinet, he probably only has two years to make a difference before Congressional elections give back the House to the Democrats (an early 2026 prediction). As argued before, many of his policies are contradictory, his Cabinet is likely to be ineffectually chaotic, he has softened on Ukraine (though right to challenge Europe on defence expenditure), he might just want to be a little more popular in his final years or may simply lose interest in governing radically or governing at all.
  2. Labour will have a torrid time (its communications skills are still hopeless), but it has four years, and glimmers of progress towards its targets will appear by the end of 2025. The UK will appear a beacon of stability internationally, and this will ultimately benefit the government.
  3. Starmer will lead Labour throughout 2025 and into the next General Election despite mutterings.
  4. Reform UK will have a strong year but are close to peaking. Don’t underestimate the hostility of a large proportion of the electorate towards Farage and the likes of his backers such as Trump/Musk. Although Farage and Musk now appear to have fallen out. What a shame.
  5. The Tories will have a terrible year and will flatline in the polls. Badenoch has not found her feet yet and seems to have forgotten the Tories’ way back to power is to regain their reputation for economic competence. Too early, I know, but she is unlikely to lead her Party into the next General Election. Such turmoil in the main opposition party will benefit Reform but also Labour.
  6. It is too early to predict events in France although things do not look promising but there will be better news in Germany. The unstable largely left-wing coalition will be heavily defeated in February, ushering in a centre-right CDU/CSU coalition government despite the rise of the extreme AfD.
  7. A miserable year for China. Slowing growth, a possible trade war with the US and Xi’s dominance starting to grate across the country means there will be no move on Taiwan despite bellicose noises. China simply cannot afford the economic consequences, particularly when they are also losing ground to their unfriendly neighbour, India.
  8. Not least Russia/Ukraine. See first prediction above. Trump will eventually force a tougher peace solution on Putin over Ukraine than Putin wants. Putin is winning the war but at great human and economic cost. A Trump led ‘solution’ will probably involve greater support for Ukraine from Europe, guarantees on borders, but not fully on Ukraine’s terms and no NATO membership. It is 50/50, whether the war ends this year. Even this blog knows when not to put your neck out…
  9. Lastly, the Middle East. The war in Gaza will end this year but on Israel’s terms.

That’s it folks. A roller coaster of a year but optimism is based on the fact that progress towards the death of liberal democracy will stall…

Happy New Year!

Tories on course to make the wrong leadership choice

They never learn. They never learn. The Party membership is to the right of ordinary Conservative voters and their final, decisive role in choosing the next leader (they vote between the last two leading candidates after MPs have chosen the shortlist) is likely to take the Tories into a cul-de-sac of their own making.

Who are the runners and riders in what (quite rightly) will probably be a lengthy leadership campaign but with no certainty of redemption at the end of it?

A poll of members today confirmed the current favourite is Kemi Badenoch. Why? She has no legislative achievements to her name, is unnecessarily aggressive, particularly with the media, and seems to have made her name by pursuing culture wars. Whilst her views may be sincerely held, that is hardly where the Tories are going to regain voters.

Nobody above is likely to be the next Prime Minister…

Then there is Suella Braverman. To the right even of the most die-hard Tory members although still attracting the votes of 16% of them, she has disgraced herself with an article just before the election damning the Tory election campaign and then this week with her homophobic rant. She is truly awful. Extreme, disloyal and with no sense of public service. The sooner she joins Reform, the better.

Right-wing Priti Patel, another former Home Secretary, is mooted to be standing but is not up to the job. Caught dancing with Farage last year, although now claiming he has no future in the Tory Party, she should perhaps dance off to Reform too.

Finally, on the Right, the smarmy, reinvented immigration hard-liner, Robert Jenrick, who left Sunak’s government in a sulk at not getting a full cabinet post, is simply not credible.

The moderate candidates so far are James Cleverly, Tom Tugendhat and Victoria Atkins. All three are decent people but Cleverly will simply be a short-term, stop-gap leader and it doesn’t feel Atkins is quite ready for it. Tom Tugendhat is the best bet but is unlikely to clear the hurdle set by the Tory membership. Sadly, the estimable Jeremy Hunt has understandably ruled himself out of the contest.

A few points to note. The Tories lost most of their key southern seats to the LibDems. How the hell are they going to regain them by moving to the right? What’s left of the Tory parliamentary party is fairly centrist. Perhaps the membership will surprise us with a more moderate choice if enough have cleared off to Reform by the time of the vote. If the Tories embrace Farage/Reform in any way, it will be the permanent end of the Tory Party. If I were the LibDems, I would already be making plans now to entice moderate Tory MPs to join them if this unlikely occurrence happens. More on that in a future blog.

What is almost certain is the next Tory leader will not be the next Prime Minister. In fact the next leader, whilst fulfilling the important role of trying to hold the government to account, will largely be an irrelevance. Just ask William Hague.

Time for the Tories to tackle Farage head on

Well, I have to say last week’s pre-election blog was pretty much accurate. As expected, the Tories got over 100 seats (I have won £10 and a lobster dinner!) as Reform fell back a little. Labour romped home, albeit with a disappointing share of the vote and the LibDems had a great night too. Throughout the campaign they looked like the only politicians enjoying themselves. Good for them. The almost total wipe-out of the SNP was perhaps the biggest surprise of the night. That’s Scottish independence on the backburner for a generation.

For now, everybody should hope Starmer succeeds…

But the Tories’ 121 seat defeat was the worst result in their history. After 14 years of missteps (that’s putting it politely…) where does this well-deserved defenestration leave them?

Do you remember the raison d’etre of calling the Brexit referendum in the first place, which sowed the seeds of their ultimate demise? It was to cure the Tory Party of its internal splits on Europe. Err… that went well, didn’t it…?

Here we are 8 years on, and the hugely diminished Tory Party is now plagued by a resurgent anti-Europe, anti-immigration Reform UK party, with 4m votes and 5 seats in parliament. All that cosying up to the Right by Sunak and his predecessors came to naught. The ridiculous Rwanda plan was a perfect example. Peddled in the dying days of the last government by a Prime Minister who didn’t really believe in it, it was a waste of time, making the Tories look unpleasant, and incompetent at the same time.

There is only one solution for the long term recovery of the Tory Party. Tackle Farage and Reform UK with their dog whistle rhetoric head on. To paraphrase Matthew Parris, the more you compromise with the populist Right, the more ground they want. Now is the time to give them nothing.

With Labour securing 412 seats on only 34% of the vote and a largely sympathetic LibDem Party, the country will need thoughtful, moderate, centre-right Opposition. One that outlines the benefits of effectively controlled immigration, that advocates closer ties with Europe both economically and to sort out the boats crisis, that praises the advantages of a multicultural Britain, that understands the economic pressures on poorer voters and comes up with solutions that don’t simply involve talking about taxes and lashing out at minorities/the EU. The Tories also specifically need to pivot to offering policies for a younger generation of voters. They should support Starmer, where he is getting things right (not follow the ridiculous advice from the anti-patriot Johnson who advocates attacking him from the start). They should regain a reputation for steady, quiet competence.

The Tories lost voters to a range of parties, not just Reform. Notably the LibDems in the south. It was their clowning incompetence that did for them, not being insufficiently right-wing.

There is a gaping hole in the centre-right of politics from where elections are won and the Tories must move there, understanding recovery may take ten years. With careful analysis, a new leader, who almost certainly will not become the next Prime Minister, should take time to root out Farage/Reform at their source and let them wither on the fringes of politics. It is where they belong.

Too close to call…

By that, I mean whether the Tories gain over 100 seats or not… reinforced by yesterday’s YouGov poll.

In what will be a well-deserved calamitous result for the Tories, they will face a wipe-out across the country, not so much due to a huge swell of support for Labour but a combination of the collapse of the SNP, resurgent LibDems in the South, Reform attacking from the Right and tactical voting to oust as many Tories as possible. It is time for a change.

Tories fighting to clear 100 seats…

I confess that I have had two bets on the election outcome for some time. Neither will make me rich, and neither are due to insider knowledge… One is with a colleague for £10 and one with a journalist for a lobster supper, and both are based on my view that the Tories will gain over 100 seats. Why?

There is a genuine fear amongst some of the electorate that Labour’s majority will be too great. Probably even Starmer doesn’t want a 200 seat majority. Imagine the indiscipline and lack of mandate based on 40% or so of the vote. Enough former Tory voters may well pull back from the brink of voting Reform, who will still have a reasonable night regardless.

What will not help the Tories’ cause is the last minute, almost insulting appearance of Boris Johnson on the campaign trail. No doubt emboldened by the resurgence of Donald Trump, this ludicrous, narcissistic character believes he can perhaps be the Tories’ post-election saviour when, in reality, he is the principal architect of the party’s demise. His appearance will simply remind floating voters of this.

What a battle lies ahead for the soul of what is left of a once impregnable Tory Party, already written off by a deeply unhelpful article in yesterday’s Telegraph by the charming former Home Secretary, Suella Braverman. But that is for another day. Sunak, who has fought a somewhat ill-judged but brave campaign, deserves better.

As France toys with fascism – there is no other word for it – and Trump prospers at the expense of a clearly too frail Biden, the UK, for all the problems the country faces, could be a beacon of stability in a sea of polarisation after today. And if for no other reason, that is a note of optimism on which to end this overly long, tedious election campaign.

Happy voting!

The Tories only become interesting after July 4th…

That is if they survive, of course… Incredibly, the election continues to get worse for the Tories. The latest opinion polls, on average, have them winning just a hundred or so seats maximum with Labour’s majority being 250 plus. Reform UK may scrape a few seats, but only the LibDems seem to be the ones having some FUN. I won’t hear it against Ed Davey. His stunts are getting him publicity, and his role caring for his son has really resonated. They may surprise on the upside, adding to the Tories’ woes in the South/Southwest.

If they don’t self-destruct, the Tories become interesting again… on a 10 year view…

This blog feels the Tories will do a little better on the night as former Tory voters peer into the abyss and pull back from Reform. They will at least remain the second largest party, but it is pretty clear Labour is on course for a huge majority. The interest on election night will be less about the outcome and more about the scale of the Tories’ defeat and results in individual seats.

The Tories will be out of power for a generation and deservedly so. Attention will initially be on the new government and some actual policies, but Labour will have an opaque mandate, and over time the focus will switch to a decent Opposition holding the government to account.

So, back to the Tories. Despite relative moderates being well represented in parliament on most election outcomes, courtesy of its inglorious members, the Tory Party will almost certainly move to the Right. Moderate MPs, who are usually hopeless in leadership elections, will not be organised enough to block this and will get tripped up by the membership if they were. But therein lies electoral oblivion. A move back to centre ground beckons second time around on a long-term view. The question is who can be bothered to wait?

In the meantime, there is Farage/Reform. They will not merge with the Tories, and if they did, the Party would irrevocably split. Incidentally, if Boris Johnson tries his hand at leadership again, it would be the same result. No more Tory Party. Whilst new centre ground parties have a terrible record of succeeding, the total defenestration of the Tories would present unique territory for them to thrive.

So, on the basis that the electorate will want a competitive political landscape, attention will eventually turn back to the Tories or, if they self-annihilate, their successors. Whatever path is taken, the Opposition will probably have a good 10 years to even draw level.

Things can only get better…

I have an idea to rejuvenate the Tories’ election campaign. They should adopt Tony Blair’s 1997 campaign tune, ‘Things Can Only Get Better’ by D:Ream on the basis things can’t get any worse…

The Tory campaign has been a disaster and it showed in Sunak’s body language in the Sky News interview last night. He looked utterly dejected and gave the impression he couldn’t wait for the whole awful experience to be over. California beckons whatever Sunak says.

Unfortunately for Sunak and the Tory Party, Sunak is no politician…

What has gone so badly wrong? Well, the obvious reasons are launching the surprise campaign in the rain on an unprepared Party, flinging untested policies into the arena such as National Service and then the D-Day debacle. Sunak’s colleagues are not with him, and he paints a lonely campaigning figure. He may be the most decent Tory leader of recent times (not much competition there), but he is a hopeless politician. Why an earth didn’t he wait? By November there would have been at least one interest rate cut and Rwanda flights which never resonated with the electorate anyway (only Sunak knows why he tied his future to this ridiculous policy) may or may not have taken off. It wouldn’t have really mattered. Sound stewardship of the economy, proving he was on top of its recovery would have been his best bet. Unless, of course, he thinks economic news will only get worse over the summer, a point not lost on the electorate.

And then there is Reform UK and the dog whistler, Farage. The Brexit referendum in the first place, the populism of Johnson, the disastrous tax cutting Truss, Rwanda and countless other nods to the Right including the initial appointment of Suella Braverman as Home Secretary were all meant to assuage these folks and see them off. As one surveys the wreckage of the Tory Party, you wonder how the Foreign Secretary feels… Sunak, coming at the fag-end of a long Tory administration, was always going to have a tough time but he should have tacked firmly to the centre on day 1 and faced down his right-wing critics. The more you give, the more they take… We are now in the position where Reform are snapping at the heels of the Tories and Farage has a reasonable chance of becoming an MP before ‘taking over’ a defenestrated Tory Party.

Incidentally, the fight for the soul of a shrunken Tory Party after the election, ex-Sunak, should be one Tory moderates relish. There are many blogs on this to come…

Then bizarrely today, we have a Sunak aide being investigated by the Gambling Commission for pre-election betting on the date of the General Election. A case of insider dealing it seems… but why only place £100 at 5:1? A win of £500 does not seem sufficient compensation for a ruined career… Tory advisers can’t even get this right.

In the meantime, Starmer and the Labour Party generally look confident. They have barely put a foot wrong, and their safety-first approach gives the appearance of a government in waiting. It appears a largely effortless march to power. Of course, there are dangers in this but not too many.

Week 3 to Labour then. In fact Week 3 to almost everyone except the hapless Tories.

Another good week for Labour…

There is so much to write about… The ANC has lost its majority in South Africa and Trump has been criminally convicted on all 34 accounts in the hush-money case. More on the latter topic next week when I am based in New York for a few days. I can’t wait!

Now to the General Election in the UK. It has been another good week for Labour which has extended its lead in several opinion polls. Despite indications that the public likes some of the Tories’ new policy ideas such as National Service, they are making no impact on the party’s fortunes. Why is this?

The electorate has simply made up its mind. It is time for a change, and it would have to be a truly momentous incident for this settled view to be revised. Sunak is campaigning like an underdog opposition leader bouncing around with new ideas to try and attract attention. Starmer, meanwhile, is saying very little and campaigning more like a prime minister. Very wise and the contrast in styles has not escaped the notice of voters to Starmer’s benefit.

Looking and sounding tough on the hard left whilst reinstating Diane Abbott…

Of course there will be bumps in the road for Labour but one of them is not the row over whether Diane Abbott should be a formal Labour candidate or not. Actually, it has just been announced she can stand as an official Labour candidate in her constituency. A not very insightful column from Stephen Bush of the FT suggests all this brutal factionalism is showing Labour’s not very nice, machine politics side. Nonsense.

Labour has always been criticised for being too nice, not ruthless enough. Hence the Tories’ never-ending election success. The deselection of Corbyn and the row over the suspension and reinstatement of Diane Abbott just shines a light on how tough Starmer has been in clearing out the hard left. It reinforces the narrative that Labour has changed under Starmer, and nothing will get in the way of it attaining power. In other wording, despite whinging from the sidelines by a few journalists and Labour activists, Starmer emerges stronger from all this.

So far, the election campaign has been thoroughly boring. Only the TV debates and the last few anxious days in the run-up to election day will liven things up. In the meantime, round 2 to Labour.