John Redwood's Diary
Incisive and topical campaigns and commentary on today's issues and tomorrow's problems. Promoted by John Redwood 152 Grosvenor Road SW1V 3JL

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The choice in the election

The polls and betting suggest the choice is between a Conservative led majority government or a Corbyn Labour led minority government. There is a large divide between what Labour is offering and what the Conservatives propose.

Labour’s approach is  based on  large increases in taxes and borrowing, to finance a large expansion of the state. In particular they want to nationalise large swathes of the utility sector with discounted  compensation to existing owners, and wish to take 10% stakes in quoted companies.

The Conservative approach is likely to be based on the controlled increases in public spending on heath, education and the police they have announced, with some tax cuts to come. I would like to see the 1% of GDP stimulus from this combination that I have been arguing for.

We know from past experience at home and present experience abroad that the Labour high tax high spend high borrowing strategy will miscarry. Taxing the successful, hard working and prudent more will send some of them abroad and others will be less motivated to grow their businesses and create more jobs. Excessive borrowing by the state can crowd out credit for business and for individuals to buy assets for themselves. The Labour leadership have admired some latin American countries like Venezuela in the past for their generous expansion of welfare and state spending, only to see the misery economic collapse creates. Well intentioned socialism often ends up creating shortages in the shops,  a balance of payments and overseas borrowing crisis, and more poverty as businesses pull out and jobs are destroyed.

Conservative and Coalition economic policy since 2010 has stabilised a badly damaged economy and has created conditions for many more jobs including full time and better paid jobs to  be created. Inflation has stayed under good control, productivity has been disappointing and real wage growth like much of the rest of the advanced world weak. Banks are now stronger and debts under better control.

The right things to do  now are to pursue policies that can help lift productivity and therefore real wages at a faster pace, to ease conditions sensibly without alarming international investors.

Foreign leaders and elections

It is usually best if Presidents and Prime Ministers stay out of each other’s  elections . In free societies media interviewers can ask foreign leaders to make comments and they do so if they wish.

There are two big differences between President Obama’s intervention in our referendum and President Trump’s remarks yesterday. President Obama was clearly encouraged to intervene by the UK government who were committed to Remain. They  used the intervention to try to persuade voters, drawing attention to it as part of their case in the referendum. The UK government did not ask President Trump to make comments yesterday and is not planning to use his comments in their election campaign.

The retreat from globalisation

Tariffs and other barriers are going up between the USA and China, the USA and the EU, around Iran, between Japan and South Korea and between India and Pakistan over Kashmir. There is a new economic nationalism abroad.

It is also pronounced in some businesses and industries. The vehicle industry in particular is retreating to home factories under the weight of falling demand for diesel and petrol cars.

The Japanese car makers are moving more production from the EU to Japan, partly owing to a rare move to zero tariffs in their new Agreement with the EU. Ford is pulling out of European factories. If the Fiat/Chrysler/Peugeot merger goes ahead they may wish to concentrate EU production in the two home bases of Italy and France.

Globalisation is not always the right answer. Complex supply chains come about often because companies find cheaper components and raw materials from afar which they reckon they can weld into their production to cut costs. Sometimes this turns out to be a false economy. Long distance travel for components both increases travel costs and in some cases adds an additional risk of delay to supply. Too many competing suppliers may not breed good long term relationships between assembler and component maker.

There is a rival school of thought to globalisation which says working closely with a limited number of suppliers that are nearer to the main factory may produce better results. Today suppliers often have to operate full transparency with large corporate buyers, who will expect to know their costs, margin and investment rate. For certain finished products to qualify as coming from a given country for Free Trade Agreement purposes there is often a minimum total value requirement which affects how many components can be foreign sourced.

President Trump’s America first policy is designed to onshore jobs that have gone abroad. It is finding that in the current climate of industrial recession worldwide, with a particular problem in the vehicle industry, it is difficult to increase manufacturing jobs by these means. As the UK comes out of the EU we need to rebuild UK capacity to make more components for industry at home and produce more of our own food.

One of the reasons we need to get on with our exit from the EU is the opportunity it will give us to have our own trade policy, to lower our average tariff and to do a better job at promoting home produced food and goods . It has been damaging to be caught in the US/EU crossfire in the recent tariff disputes.

Prosperity not austerity

Hong Kong is in recession. Germany probably is in recession. Italy was in recession last year and still performing weakly.  The US and Chinese economies have slowed. It is time for a UK stimulus to boost our economy.

The government is right to increase spending on schools and hospitals. It also needs to provide some tax cuts for all to increase take home pay, make it cheaper to buy a home and a car and take VAT off items like female hygiene products, home insulation, and other ways of improving home fuel efficiency.

The UK economy has been slowed by the world background and by its own tight monetary and fiscal policies. It’s time to relax sensibly. The aim should be prosperity for the many, with more and better paid jobs.

This site in the Election

All MPs lose their jobs when Parliament dissolves. This is not an official MP website so it makes no great difference to this site. I will continue with the blogs and will declare the costs of the site as an election expense.

I have amended my biography. All past references to my role as MP will stay in the archived materials but are of course references to my last service and not to my current position.I am the Prospective Conservative candidate for Wokingham and will write some blogs about the election. I will continue to provide general commentary about other issues where appropriate.

I will not be publishing contributor exhortations to vote for other parties or overtly partisan anti Conservative material during the election period. There will be plenty of that elsewhere. Contributors should not name candidates or particular seats in pieces either to promote or denigrate. National campaigns, policies and arguments are of wider interest.

All articles will be written and published by John Redwood of 30 Rose Street Wokingham RG40 1XU

The Conservative election agent is David Edmonds of 30 Rose Street Wokingham RG40 1XU

Promoted by David Edmonds on behalf of John Redwood, both of 30 Rose Street Wokingham RG40 1XU

What should an election be about?

The government wants an election because it wants to end the impasse of this Parliament. It rightly sees that it is kept in office but not allowed to govern. There is no alternative government on offer in this Parliament that would have a majority to govern. The election should be about who is best suited to form that government.

Elections are the ultimate democratic act. The government may wish to define the debate its way. The Leader of the Opposition may wish to define it in a different way. In practice it will be defined as a result of a jostle of forces and voices trying to shift or dominate the agenda of the debate.

On this occasion it may well be that there is some shared interest between Conservative and Labour over what they want to talk about. Both want to pose the same choice of a majority government led by one or other of the main parties of the outgoing Parliament. Both will look beyond Brexit to issues of tax and spend, their approach to public service quality and reform, nationalisation and privatisation. There will be a genuine choice between a more socialist government than has been on offer for many years, and a Conservative government.

The Lib Dems and SNP will wish to make it an argument about Brexit, peddling their view that the public got it wrong in 2016. They will advance various ways of overturning or cancelling the Brexit vote and will seek to bring the conversation back to this single question that has consumed the last two Parliaments.

What do you want the election to be about , as it your election too?

My speech during the debate on an Early Parliamentary General Election, 28 October 2019

John Redwood (Wokingham) (Con): This Parliament is once again misjudging the mood of the public. We were elected here to do serious things on behalf of our public. Conservative and Labour MPs alike were elected to see Brexit through. Three years and four months later, there is no sign of that. Instead, we have this discordant, argumentative Parliament that will do nothing. It will not throw the Government out of office and it will not allow the Government to govern. We owe it to the British people either to allow our Government to govern or to let the British people decide on a better group of MPs who can form a Government and do positive things for our country.

Andrew Percy (Brigg and Goole) (Con): Every constituency in my region voted at the 2016 referendum by a huge margin to leave the European Union. At that time, lots of my constituents, in some of the most deprived communities of this country, told me that they did not trust this Parliament to deliver it. They said, “We won’t get it. They’ll never let us leave.” The five Conservatives out of the 10 MPs in my region might have voted to deliver Brexit, but is not the truth of it that the Labour MPs across my region, bar one or two examples, are never going to vote to leave the European Union, sadly proving right my constituents who said, “They’ll never let us leave”?

John Redwood: My hon. Friend is right, but it is now about more than Brexit. It is about confidence in our parliamentary system to deliver orderly government that can do things for the people or to allow the public to decide who should be a better Government, because the House has no confidence in the Government.

This Parliament needs to put through a Budget quite soon. Our economy needs a boost, and we need to know whether we can have the tax cuts as well as the spending increases, but I suspect that the Government fear bringing a Budget to the House because they think there will be no co-operation as they do not have a majority and this Parliament will not allow a majority to be formed.

This Government have recently brought a Queen’s Speech to the House. It contains a number of good measures that I do not think were ideological or Conservative provocations to socialists and those of a more left-wing nature. They were chosen to build some consensus and address the issues that worry people. But again, I think the Government rightly fear that any one of those measures, if introduced, would probably meet with resistance and a lack of co-operation, in exactly the way that we have been experiencing with all these other measures.

But above all, this House needs to think what message it is sending to all our partners, friends and allies—countries around the world; the businesses that our businesses do business with; all those contacts we have around the globe. They see this country as a great beacon of democracy—a country of great experience in the art of democratic government; a country that has often led the world in putting forward and fighting for those freedoms and showing how they can improve the lives of those governed by them. But instead we are sending a message that we do not know what we are doing and can never agree about anything—that all we can do is have endless rows in this place, for the entertainment of people here perhaps, but to the denigration of our country and the undermining of its position.

How can a Government conduct international negotiations when everything they propose is undermined or voted against by the Opposition, because we do not have a majority? Above all, how can we get to the point where this House decides that it is good legislation to say that the Prime Minister has to break his promises—where it has turned the demand that he break his promises into something that this House calls an Act of Parliament? No wonder we look ridiculous. No wonder we cannot resolve Brexit. No wonder we cannot have a Budget to promote our economy. No wonder we cannot govern with aplomb in the interests of the British people.

The Prime Minister is right that if this House cannot do better, it must dissolve and ask the people to choose a better Parliament. Either we need to be a better Parliament or they need to choose a better Parliament as soon as possible.

“Let them take the bus” says Green enthusiast

In recent discussions I have been having about the costs and timetable for getting to zero net carbon dioxide as various governments now want, I have been asking about who will be paying for the electric vehicles and the heat pumps it will take.

Millions of people in the UK on below average incomes will need to replace their cars and vans with electric versions. They will be expected to replace old gas and oil boilers with  heat pumps and new boilers or with all electric systems. How easy will it be for them to afford the new machines and systems?

One person responded to my query by saying  buses and trains will all go electric thanks to taxpayer and public sector financed investment. People can then take the bus and dispense with the car they said. Many people do not live in cities with frequent bus services.

They seem to have in mind a them and us world, where the better off will still be able to afford the new vehicles and the all electric systems, whilst many others will in their view no longer have personal transport. Let them take the  bus, is a paraphrase of their position.

This is a poor answer at best, as surely the many should have access to higher living standards and greater convenience. It is  no answer to the needs of the small business person who needs a van to get to each appointment, taking the tools and spares needed for the assignment. Everyone from plumber to builder, from delivery business to mobile service provider needs personal transport tailored to their work. Many families need a car to get food back from the shops and to take the children to school as well as to get themselves to work.

For those places wanting zero net carbon as they call it by 2030 it will be soon that people need to spend the money on completely transforming their domestic heating, and to start thinking about new vehicles for the end of the next decade. We are talking about a colossal joint investment, where those just managing on current incomes will find it difficult to find the cash  for potentially large expenditures.

I also  see there is consumer resistance to some of these changes even where there is no direct additional cost involved. The electricity companies are urging   people to allow works in their  homes to change over meters. People with busy lives find it difficult to book out a day to supervise the work, and many are apprehensive about works in their home when the current system works just fine. The absence of any perceived personal benefit from the new meters has put lots of  people off. Some circulate rumours the firms strenuously deny that there is some ulterior motive on future  tariff and supply interruption that the new meters might bring. Indeed part of the case for these meters is that in future there could be variable tariffs with higher charges at certain times of day, with more control over energy supply by the utility. It will need a stronger case as to the benefits to get more people to allow these installations,.

Anyone for an election?

It is unlikely this Parliament is about to vote to dissolve itself and hold an election. The massed ranks of the Opposition parties, usually so keen for an election, are shy about meeting electors on the doorstep and giving them the chance of change. The SNP and Lib Dem offer is tactical and linked to trying to stop Brexit. They are busy lobbying the EU to keep us in The EU  for longer as a precondition for any election.

Labour after months of demands for a poll now say they wish to take so called No deal off the agenda first. They now say that could take them to December 2020 to be sure of that. They might as well say they do not want an election before the Thames freezes over. Given their strong belief in Global warming they should feel safe for a few years with that pledge.

Boris Johnson told the rallies and meetings before he became Leader that he did not want an early election. He assumed he could deliver Brexit on 31 October.

Now he is desperate for one, given the impasse in Parliament and the way his majority has disappeared.

A General election could break the logjam in this rotten Parliament if electors are in decisive mood. Were  the vote to splinter too much with four or five parties in contention, we could end up with another hung Parliament which could perpetuate the block over Brexit and the difficulty in forming a government with a majority that can do things..

One of the most common messages I currently receive is Cromwell’s speech when dissolving the Long Parliament. This much purged Parliament wished to perpetuate itself after the death of the King and the advent of the Commonwealth. Presumably my correspondents  think they see similarities to today.

There are however very important differences. Cromwell arrived with 40 soldiers to close the Parliament down, using the force of the New Model Army against Parliament. He did not plan a new Parliament, but planned a personal autocracy as he became Lord Protector.

What we want instead is an election to try to change the personnel of Parliament. The gap between what this Parliament wants about Brexit and want voters want is too great. Worse still, many MPs were elected to see Brexit through only to go back on their word  and do everything in their power to delay or prevent Brexit.