We are still failing to define ‘One Nation’ for the twenty-first century

Giles Marshall 11.20am

We need to define One Nation Conservatism. That is probably the most urgent task facing the Tory Reform Group, because until we do, and until we can also give it some political meat in terms of policy and outlook, we really don’t have much to offer as an alternative to the Conservative right-wing.

The problem of understanding what it should mean came up in Damian Green’s Macmillan Lecture yesterday evening. While he was on firm and fluent ground when discussing the need to articulate a case to remain a member of the EU, in my view he was uneasy in grasping the nettle of One Nation.

It is, he said, an ambiguous phrase beloved of the political classes.  That being said, what is distinctly ‘One Nation’ about the present Government? I’m afraid that I don’t believe ‘limiting immigration’ and ‘cutting welfare abuse’ are sufficient. For a thoughtful man and longstanding devotee to One Nation Conservatism, Mr Green must in his heart of hearts believe this too.

The problem we have is that our thinking remains too defined by the neo-liberal philosophy that parked itself in the Tory Party when Margaret Thatcher became leader. The triumph of individualism saw itself expressed politically through the emphasis on lower taxes, a smaller state and more self-help. There was nothing particularly ‘Conservative’ about any of this, and yet it has become the lodestar of Conservative political discussion today.

In its most traditional expression, Conservatism was defined as a transcendent alliance between the dead, the living and the yet to come.

Conservatism governed not as a form of short-term political self-interest, but as a commitment to the wellbeing of a society that was defined by more than the life-spans of those currently alive.

Within that broad vision was further acceptance that society’s prosperity and stability was best assured by considering the interests of the many.

This was transformed, almost accidentally, by Benjamin Disraeli’s articulation of ‘One Nation Conservatism’. It was a clever political commitment to broaden the Conservative party’s appeal to newly enfranchised voters and it was given brilliant form by the remarkable energies of the Home Secretary Richard Cross, who used the Victorian state to improve the lives of the poor far beyond anything the Liberals could manage. His reforming zeal was later replicated in the activities of politicians such as Neville Chamberlain and Harold Macmillan.

Macmillan in particular saw the virtue of state action to help the poor, inspired as he was by the conditions he witnessed during the Great Depression in his Stockton constituency. The social reforms enacted by Macmillan and his championing of economic planning are a long way removed from anything advocated by the modern Conservative party.  But then Macmillan’s Conservatism was inspired by a commitment to society, and to the enabling power of the state. It had no truck with the notion of an individual self-reliance that was a alien to vast numbers of citizens stuck in an invidious cycle of poverty.

The reason One Nation Conservatism has lost its sharpness is that its few remaining advocates are too willing to surrender much of the ground to an aggressive neo-liberal tendency. We seem happier to discuss social liberalism – admittedly important – than challenging some of the profoundly un-Conservative elements of the dominant ‘New Right’ tendency.

One Nation Conservatism needs to be properly defined for the twenty-first century. It could reap remarkable electoral rewards for a party that has too often in recent years seemed too divorced from the public it seeks to represent. As Damian Green said yesterday evening, “if the Conservative party does not like modern Britain, it is unlikely modern Britain will warm to the Conservative party.”

The Conservative party’s dominance of the twentieth century owed much to its One Nation outlook, in terms of both policy and rhetoric. Sadly, we are still struggling to recover either of them.

Follow Giles on Twitter @gilesmarshall

Macmillan Lecture 2013: ‘Keep Calm and Carry On Reforming’

 MACMILLAN LECTURE 2013

Keep Calm and Carry On Reforming 

By Rt Hon Damian Green MP

The previous occasion I delivered the Macmillan Lecture was in 2005, just after a disastrous election result for the Conservative Party which saw us make little progress even though Tony Blair’s Government was visibly crumbling.

“Why aren’t we thinking what they’re thinking” was the rather gloomy title, prompted by the thought that the lack of progress made it much more difficult to obtain an overall majority in the subsequent election—a sadly prescient point. One thought I was keen to make then is equally true in the very different world of today; that if the Conservative Party does not like modern Britain it is unlikely that modern Britain will warm to the Conservative Party.

Of course there is much that needs to be changed, and much that is changing because of this Government. As I say in the title of this lecture, we must carry on reforming.  But we should not let the long recovery from recession, or individual horrible incidents such as the Woolwich killing, leave us gloomy or grumpy as a country. It is less than twelve months since the world admired the best Olympics of the modern age. They admired not just our national organisational skills but the character, warmth and openness of the British people. We should not just keep calm, we should cheer up.

I should move from the national to the party.  The same injunction applies.  

Perhaps this is the appropriate moment to fulfil the duty of all who deliver this lecture to quote Harold Macmillan; “It is the duty of Her Majesty’s Government neither to flap nor to falter.” Admirable advice which is both timeless and timely.  For centre-right politicians there are significant reasons to be both calm and cheerful , the most notable of which is the public’s reaction to the financial crisis and subsequent recession. It was the fond hope of those on the left, perhaps particularly those who grew up at the feet of Marxist philosophers, that this would be seen as a crisis of capitalism. The people would throw off the shackles of false consciousness and realise that free markets had failed, and that state spending, borrowing and control was the route out of recession.

Fortunately the British people have more sense than that, and tend to prefer the analysis that state spending and borrowing was precisely the route into recession. There is no spin in this analysis. Successive poll findings have shown  that even when Labour is enjoying a significant lead the Conservative team is markedly ahead on managing the economy. This is true even over the past few weeks, where calmness has not been the prevailing emotion.

The most recent Ipsos Mori poll showed a 14 percent lead for David Cameron on managing the economy. Truly, if it still is the economy, stupid, that sets the political tone we are winning the most important argument.  British Keynesianism failed in the 1970s, and enough people know that to ensure that its modern enthusiasts have little credibility. The world has not gone left since the crisis. Where right wing Governments have been ejected, as in France, the left-wing alternative is already in trouble. The economic facts of life are still Tory.

So keep calm. But also carry on reforming, and more particularly carry on reforming in a Tory way. There is gathering strength to the argument that the reforms we are seeing to, for example, immigration, welfare and education address exactly the issues that people want Government to concentrate on.

These key reforms have three significant features. The first is that they are as important to the success of the Government as the central economic policy. The second is that all of them are dependent on Conservative ideas and energy to drive them through. The third is that they are precisely on the Common Ground originally identified by Keith Joseph as the proper target for successful Government, rather than the centre ground.

So as well as winning the central economic argument we are reforming in the areas where the country needs changing, and we are doing so in a Conservative direction. This message cannot be sent too often or too loudly, particularly to traditional Conservative supporters. They want lower immigration, an end to abuse of the welfare state, and higher standards in schools. Conservative Ministers, drawing on Conservative principles and our Manifesto promises, are delivering this.  

On immigration, the latest figures show that net migration is down by more than a third since June 2010, and is now at its lowest level for a decade. At the same time as seeing this dramatic decline in overall numbers, which is the main requirement, we have continued to support economic growth by welcoming the brightest and best to the UK. Higher numbers of skilled worker visas were issued over the last year, as were university student visas. So we have lower immigration, and more selective immigration: both good Conservative policies.

On welfare, we have introduced the biggest welfare to work programme the UK has ever seen to get people back to work.  We also believe it must always pay to work – which is why we have capped benefits so that no one can get more on benefits than the average person earns in work. We want to help people escape poverty, not trap them in it. This reform is squarely in the tradition of  which Harold Macmillan would have approved.

The same is true with our education policy. We are making sure that every parent has the choice of a good local state school for their child, teachers have the powers they need to keep discipline in the classroom and the exam system is rigorous, respected and on a par with the world’s best.

We have a programme to improve the quality of teaching, including scholarships to attract the best graduates, higher literacy and numeracy requirements for trainee teachers and a network of ‘Teaching Schools’ across the country.  79 Free Schools and more than 2,000 new Academies have been delivered already. Many of them are in areas where most people have not been able, up to now, to gain access to an excellent education for their children. We are restoring discipline to the classroom with new search powers for teachers, an end to the ‘no-touch’ rule, and higher fines for truancy.

All of these essential reforms have been delivered by Conservatives working in a Coalition Government.

Which brings me to a theme which is particularly important for the Tory Reform Group, and all moderate Conservatives.  There may be areas of policy where we agree with Liberal Democrats, but we are not the same.  We believe in change and modernisation , and we recognise that what modernisation means changes over time, but we are first of all Conservatives. We have principles which are not shared even by the most orange of the Orange Bookers. We also do not regard ourselves in any way morally deficient compared to Liberal Democrats.

I get on very well with many of my LibDem Ministerial colleagues, but I am entitled to challenge their thesis that this Government can only be kept compassionate by their presence. There is a long and honourable tradition of decent Conservatives who want to help those who need help, and Macmillan himself was of course a prime example at all stages of his political career.

Macmillan  was alive to the difference. As he put it; “As usual the Liberals offer a mixture of sound and original ideas. Unfortunately none of the sound ideas is original and none of the original ideas is sound.”  We do have practical differences, as I discovered on a regular basis when I was Immigration Minister.

There are similar debates about key issues such as childcare. All of these debates can be, and are, resolved within Government, as they would be whether it was a Coalition or a one-party administration. But they illustrate that the moderate Conservative tradition is a vital part of any Conservative mix, and is distinctive from the instincts and habits that the LibDems bring to politics.

This distinction is key for those who worry that in the Coalition the tail is wagging the dog. We are reforming and we are reforming in a Conservative direction. Every Conservative policy is about promoting opportunity and social mobility.  We know that  making Britain succeed globally and allowing people to achieve their aspirations are the two keys to a successful society. Economic growth and individual growth need to go hand in hand. This is the basis for economic and social policy under this Government and I cannot understand why any Conservative, whichever tradition they adhere to, would object in principle to this approach.

There will always be disagreements about tactics and day-to-day priorities but these must not be allowed to divide the right, when the only beneficiaries will be the left. All  of us who campaigned so hard and so successfully to preserve a first-past-the-post electoral system must accept the consequences. Under first-past-the post a serious party that aspires to Government has to be a broad coalition.  This in turn requires a degree of self-discipline and capacity to compromise. If we Conservatives forget that, our opponents will be the beneficiaries.

This means that the tone of the discourse between Conservatives is important. If we sound as though we dislike each other, others will draw the obvious conclusion. I love Twitter, but its general tone should not be a guide to how Conservatives address each other. Disagreement on an issue, however emotive, does not mean treachery, or not being a proper Conservative. Politics is a team game, and mutual loyalty is vital for a successful team.

The biggest and longest-running cause of Conservative discord is Europe. Every Conservative should have a high regard for the lessons of history, and the party’s history on this issue since the 1990s is terrible. The effect of this has been, ironically and yet predictably, that Britain’s fate in Europe has been in the hands of those who have no sympathy at all for the Eurosceptic viewpoint. Surely we are all able to learn this lesson of history and not repeat it.

I am not just lecturing others. We must all learn lessons. For years pro-Europeans opposed the idea of a referendum. But the strategy of negotiating a new settlement, and then putting that to British people, is clearly the right one for current times. Most British people want it to happen. So much has changed since the 1975 vote that it is time to put the argument again. I hope and expect that the outcome of this process will be to renegotiate, reform, and revalidate Britain’s place in Europe. The Prime Minister has made clear that this plan will be central to Conservative policy up to and beyond the next election. It is time for the whole party to get behind it. And it is possible for those who hold the whole range of views on Europe to do so.

For those of us sympathetic to the European argument this is an opportunity to make our case, and the Prime Minister’s case, that a properly reformed EU will be hugely to Britain’s advantage. For too long only a few lonely voices in the Conservative Party have made the case that we are better off in. Those of us who hold that view cannot wait for the few weeks before a Referendum to argue our corner.  There is a hard-headed Conservative case for Britain’s membership of the EU, for all its imperfections, and it needs to be heard.

The core of the argument is economic. All sectors of industry agree that we are better off in. Let’s start with manufacturing. Five out of every six cars made in this country are exported, and 700,000 jobs depend on the industry.  How many of those firms would invest long-term in Britain outside the EU? No wonder Ford’s European Chief Executive, Stephen Oddell, has said that “Leaving a trading partner where 50% of your exports go… would be devastating for the UK economy.”  

Then there is the City, often seen as the part of the economy most hampered by EU rules. Goldman Sachs are unlikely to be sentimental about the economic effects of leaving, and they have concluded that departure would be a loss/loss scenario, in which the loss would be greater for the UK than the EU.  In particular they argue that “The UK’s ability to conduct business in financial services across the European Union is likely to be severely compromised by a departure from the EU.”

Then there is the argument that we should concentrate on the fast-growing economies in Asia and South America rather than sclerotic old Europe.  I have never understood how you make it easier to export to China by making it more difficult to export to Germany, and indeed the German example is surely one to follow. Last year Germany exported $804bn worth of goods to Europe, and another $519bn to the rest of the world. They are complementary markets, not alternatives.

Finally there is the argument that our businesses have to obey all these petty rules that hinder them. Does anyone imagine that the rules would be less onerous, or indeed less of a hindrance to British business, if they were made without any input from Britain? Since Britain will need to trade with Europe, we would be putting an added burden on our business, not removing one. And we would have to pay a large fee for access to the Single Market, as Norway does. The idea that we can remove all the irritations, but retain all the benefits, is not worthy even of the saloon bar.

Of course there is need for reform, not just for Britain’s sake but for Europe’s. We need a Transatlantic Free Trade deal. We need a single market in a number of new areas, including digital services. Above all, we need a reform deal which will deliver benefits to every country in the EU, so that others will be as keen as we are on reform.  This will show how beneficial it can be when Britain plays a leading role in Europe.

This European reform will be consistent with all the other hard-headed, unsentimental, pragmatic, Conservative reforms which the Government has embarked on. It will fit in with a wider modernising agenda which is nothing to do with party image and everything to do with making Britain (and Europe) fit to compete in the modern world. All these reforms, taken together, will change Britain for the better. So the job of all Conservatives at this point is neither to flap nor falter, but to get on with the job of persuading people that Conservative principles in action give all British people the chance to succeed. We should be proud of our record so far, and we know there is much more to come. We have an important job to do. We should devote all our energy and time to doing it. 

Europe is worth fighting for - maybe not this Europe, but a better Europe is at least worth a try

Nik Darlington 10.30am

This evening the annual Macmillan Lecture is being delivered in Parliament by Damian Green, police minister and TRG vice-president.

Mr Green will state the unequivocal Conservative case for the EU, rejecting clarion calls for an immediate exit yet insisting that the British people are overdue their say on our membership. Giving the Prime Minister his strongest backing, Mr Green will make the case for allowing negotiations to proceed and for an improved settlement to be put to the British people.

Of course, the British people have every right to reject EU membership even then. Conservatives sympathetic to the EU today are not blindly uncritical. Without democratic consent the EU is but a hollow bureaucratic shell. Indeed, a shell that in this day and age looks increasingly like a fossil.

There is a case to be made for the EU, but it has to be made on Conservative principles of free trade and democracy. It is on precisely those principles that the EU’s biggest critics have assumed to abandon the field. Europe is worth fighting for. Maybe not this Europe as it stands (or falls), but a better Europe is at least worth a stab.

Progressive Conservatives should support a Land Value Tax

David Cowan 9.51am

In this year’s Macmillan Lecture, the Conservative MP Nick Boles proposed a series of ideas to improve Britain’s economic competitiveness. By far the most fascinating idea was a land value tax.

In the past it has usually been those on the socialistic Left and the libertarian Right who have advocated a land value tax (LVT). But Mr Boles is a prominent Conservative moderniser, founder of the Policy Exchange think tank, and known to be close to the party leadership.

The introduction of a LVT ought to be viewed as the most legitimate way to raise new revenue.

For too long, landowners and speculators have been able to reap sizeable economic outputs from rising land values, though contributing little economic input. One example being how the construction of the Jubilee line sent surrounding land values shooting up to £10 billion, to the benefit of landowners, while taxpayers still had to foot the bill.

The idea strikes to the heart of David Cameron’s vision of responsible capitalism:

“We need to reconnect the principles of risk, hard work, and success with reward”.

Another benefit of LVT is it would create a more stable and productive land market. There would be no benefit in owning land without utilising it since landowners would have to raise enough income to pay the LVT bill. The reduction in speculative activity would help drive down prices and rent, so ensuring that growth in the land market is based on sustainable and real returns instead of artificial and speculative booms.

LVT would also be a new ‘eco-tax’ that discourages construction on expensive ‘greenfield’ areas in favour of cheaper ‘brownfield sites’, so limiting urban sprawl. This brings the consequent benefits of reduced commuting distances and less costly road works, which contribute to CO2 emissions and atmospheric pollution.

However, Mr Boles’ LVT proposal should go a step further. Properties of all shapes and sizes are already overtaxed by the likes of council tax, business rates, stamp duty land tax, planning charges, and landfill tax. If these taxes were to remain then LVT would be burdening people with further unwelcome costs.

Instead, LVT should replace those property taxes - either entirely or at the very least mostly.

It would still raise sufficient revenue if pitched at the correct rate and included main homes, with exemptions for farmland, national parks, charities and pensioners’ main homes. The fact that LVT would also apply to land which at the moment is not taxed at all goes to show how it would raise more revenue than the current property taxes that place a heavy burden on ordinary homeowners.

This would be simple to implement since land cannot be hidden in an offshore tax haven and calculating the tax bill would be made easier by the fact that land values are already measured by the market, therefore compliance costs could be reduced. The same bureaucratic processes for collecting business rates could readily be translated to the collection of LVT.

The LVT would not harm enterprise. It would boost productivity, discourage urban sprawl, could replace the plethora of punitive property taxes, and would be relatively simple to administer and collect.

The extra revenue raised would be enough to fund a radical package of tax cuts to “put fuel into the tank of the British economy”, as George Osborne promised last year, and would reconnect the link between effort and reward by making sure everyone pays their fair share. This is very much a policy that ought to be part of any modern, progressive Conservative agenda.

Follow David on Twitter @david_cowan