Risks of Pruning Government

Everybody likes a good analogy. I don’t know if this one qualifies. We communicate by saying this thing is like this other thing. The first one being easier to understand than the one second. It’s a basic part of storytelling.

Who understands how government and its institutions grow? I’ve no doubt there are huge textbooks full of detailed analysis and complicated theories. Sitting on dusty library shelves. Written by knowledgeable and venerable academics.

I’m coming from a background that’s more practical. One of having mixed with and worked in bureaucratic structures built to serve a public good. Bureaucracies that have both traditional administrative and technical elements.

Here goes. Government, or rather the administrations, institutions and services are like a large oak tree. It’s kind of human pyramid in the sense that there’s a top and bottom. An upside-down tree minus the roots.

Oak trees are long lived. They have branches that are substantial so that they can carry a heavy load and suffer the battering of the wind and rain. Out on the furthest limbs they are young, spindly and vulnerable.

Today’s media is full of stories of what might come. There’s a new year in prospect. Across the Atlantic a new President is about to take-up office. Speculation is rife. One part of that speculation concerns the future of the large administration that is the federal state.

The Presidents favourite billionaire has ideas to take a chainsaw to the tree of administration. Generally speaking, a chainsaw isn’t the best tool for the job, but it certainly is scary. Maybe that’s the point. Keeping a huge, embedded administration on its toes.

My point, and I have one, which is more than I can say for Rory Stewart, a former minister, talking on the BBC this morning. My point is that pruning a tree requires the pruner to be competent. That’s having the attitude, skill and experience needed to make a good job of it.

Lopping off limbs of a working administration with the sole aim of saving money isn’t such a sound idea. Each branch has a purpose. It’s as well to have a comprehensive understanding of what that purpose is before the pruning starts. From that understanding can come a sound reason to prune.

Ideally, pruning should be good for the tree and good for everyone who depends upon it. Weak branches that suck-up energy even though their days are numbered should become firewood. Fledgling young branches that are heading out to explore new territory may need encouragement and support.

So, it is with government. There’s a lot of truth in Parkinson’s Law[1]. He knew a thing or two about bureaucracies. The clever bit is finding out where this phenomenon has taken off. Where the tree has grown way out of balance.

Will Musk be competent in pruning? Who knows. One thing is for sure. The potential for loping off a branch that is vital to health, wealth and happiness is all too real. Let’s watch and see.


[1] the law – “Work expands to fill the available time”

Level Playing Field

The back-office work of campaigning does take advantage of a lot of volunteering. That’s my experience. Giving time and energy for free and seeking to advance a worthwhile cause.

It would be nice if all political parties in this country where wholly supported by a membership that is both engaged in activities and willing to put their hands in their pockets, now and then. The reality is that, of all the eligible voters in this country, only a small fraction of them is committed enough to be a member of a recognised political party.

Even with a strong membership and a well-motivated bunch of volunteers, life is hard going unless there is a reasonable sized war chest to support campaigning work.

Come election time the range and breadth of communications that is necessary to be a competitive candidate is considerable. Thus, it is no surprise that history can turn on who has the most resources. That doesn’t always work but without a spending capacity rivals have most of the advantages.

Politicians seek the patronage of the wealthy as a pathway to power. We can remain pure and get engaged in arguments both ethical and moral as to the impact of patronage. Or we can accept that it is inevitable and ensure that strict rules exist to create a reasonably level playing field for all candidates. Since we can no more stop influence from flowing from one person to another than we can freeze gravity then a democratic society cannot must not have woolly rules on these matters.

Talk now is about financial donations that originate from abroad. That is when a wealthy person wishes to funnel money into a political party in a country other than the one of their citizenship. No prizes for guessing who or what this is about.

Now, I could say only UK citizens should be allowed to donate to UK political parties or organisations. Foreigners should be banned from involvement in national democratic processes. Trouble is that this subject is not so cut and dry as it might first seem.

Those with dual citizenships may wish to contribute and participate. That sounds reasonable. Those with notable family ties may wish to contribute and participate. Certainly, there are reasonable cases to consider. What’s interesting here is the legitimacy of the interest and that it is of a “friendly” nature.

I’d like to go back to the mater of the level playing field. If a candidate meets the criteria set down for a given election, then the battle should be over achievements, ideas and policies and not over the size of bank balances. Financial donors should not be able to exert undue influence by throwing money at a campaign. That’s where there is a strong need for strict financial limits on donations or any form of beneficial contribution that comes from abroad.

POST: One subject that Australian’s are looking at:

Revitalising Manufacturing

Yes, it’s good to have good trading relations with other countries. With a degree of pragmatism – as many as possible. Naturally, there are lines drawn in cases where countries share little of the UK’s values or are dictator run aggressors. Counting the hundreds of sovereign countries there are around the globe, a majority are friendly and mostly interested in mutual wellbeing.

However, post-2016[1] we are still living in strange times in the UK. In the same breath as some people talk of sovereignty and surrender, they say an extremely wealthy man in the US can solve all the UK’s problems. This nonsense defies any kind of logic.

There’s a peculiar celebration of the UK joining the Asia-Pacific Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) bloc. As if we didn’t have a huge trading block on our immediate doorstep. Joining one that offers a tiny gain overtime whilst leaving the other has cost a massive economic hit. The one thousands of miles away is significantly culturally different but the one next door is one where we share a common history.

I learn that there’s no point even thinking that logic has any influence on a Brexit supporter. Non whatsoever. Their view of the world comes from some lost imperial age.

Sadly, Brexit talk is only mumbled in darkened corners. That whopping great elephant in the room continues to get ignored. Even the UK’s new Labour Government is carrying on as if there were the former Conservative bunglers. There’s some woolly talk of reconciliation. There’s a lot of right-wing scaremongering. Practically, not a lot is changing.

In real terms, both UK exports and imports of goods are lower than in 2016, having shrunk by 1% and 2%, respectively[2]. Which is crazy given the new economic horizons. Especially in the switch to the need for more environmentally responsible goods. We should be modernising and strengthening UK design and manufacturing. Not just a bit but putting a rocket under both. Half hearted nice words by minor Ministers don’t cut it.

International trade fantasies will not build a stronger domestic economy and that illusive positive growth that’s often talked about in political speeches. With the coming of highly advanced computing, like artificial intelligence, countries with predominantly service based economies are gong to struggle. Basic service orientated jobs are going to get more automated. Like the traditional factories Henry Ford would have recognised, office complexes are hollowing out.

At least the new Labour Government isn’t pushing wholesale reopening coal mines or returning to a dependency on North Sea oil rigs. That said, I’m unsure what their attitude and policy is to rock fracking and imported gas supplies.

To make real economic progress we (UK) must make Brexit history. With our colleagues in Europe, we can be an innovation powerhouse. Making home grown products for the world markets of the future. Not languishing in a tepid imperial past or tugging at the shirt tails of some mega weird pugilist.


[1] UK referendum result: Of those who voted, 51.89% voted to leave the EU (Leave), and 48.11% voted to remain a member of the EU (Remain).

[2] https://personal.lse.ac.uk/sampsont/BrexitUKTrade.pdf

John Gray’s Critique

If a dose of despondency is your Sunday morning tipple, I recommend BBC Radio 4’s “A Point of View[1]”. I often catch it as an alternative to listening to the driving rain bashing against the window as I wake-up on a Sunday morning.

What I dislike the most about John Gray’s analysis is that it dismisses all the hard-working people who daily strive to make the world a better place. I know, you are asking who John Gray is and what does he know? Well, he’s a British philosopher and author of a pile of serious books. He dabbles in political thinking and doom mongering.

On Sundays in the past, I relied heavily on Will Self creating an air of depressed inevitability that all the bad things about humans will eventually overcome us. A dower British journalist and political commentator who always seems to see the dark cloud instead of the silver lining.

Despite the grim tales of these speakers, they often have, lost in their rhetoric, a smidgen of wisdom. This morning John Gray argues that we need a new response to the growth of the right-wing charlatans who are rapidly climbing the greasy pole of national political life.

Naturally, a lot of us thought that’s what the UK General Election last July was all about. A reoccupation of the centre ground of British politics by the Labour Party. A renewed liberal democratic political consensus would emerge and save us all. Strangely, it doesn’t seem to be working out that way. Although, it might be a bit harsh to judge after only a few months.

Last night, I watched the second episode of the BBC’s period drama Wolf Hall[2]. My God, it’s good entertainment. A little heavy in places. Sharp and brilliantly executed. That last word being the key one. Tudor history is a reminder of how vicious political manoeuvring can be. Having a master, a King, who is determined to make the world turn around him and no one else.

So, should I agree with the likes of John Gray? That a darkness slithers around in human hearts. That we’d better be prepared, shake-off the status-quo and look for new ways to head-off the marketing men’s populist politics. Voiced by bombastic demigods and radical twerps.

He’s right in the sense that today’s politics is behind the curve. British political parties were forged in a different age. Largely, baring the virtues they espouse, they are outdated. Sure, fairness, liberty, and equality have not fallen out of fashion. But maybe the language surrounding them belongs in the 19th and 20th centuries.

One thing is for sure, Willo the Wisps, like Kemi Badenoch offer nothing new. Reform is just a cover for the populist worst of human nature. Yes, we do need someone to break new ground in British politics.

Oh, for a more cheerful Sunday morning.


[1] https://www.bbc.co.uk/sounds/play/m00254hz

[2] https://www.bbc.co.uk/iplayer/episodes/m002473m/wolf-hall

Labour’s IHT Policy: A Threat to Family Farms?

Labour is driving down a road it’s driven before. It’s a shame when the two biggest political parties in Britain are so captured by their past that they can no more look forward than a duck can master arithmetic.

Post Second World War the country was broke. Rising taxes were inevitable to pay down debt. The British State was far more directly involved in everyday economic decisions than it is now.

Inheritance Tax (IHT) got its status as a loathed tax partially because of the necessary actions of the post-1945 Government. At that time, “estate duty” was increased to 80%. This generated increase tax revenue but led to the breakup of large country estates up and down Britain. Ironically, the breakup of country estates created an opportunity for some tenant farmers. As the estates were sold off in lots so tenants could become owners, if they could raise the finance.

So, you might say farmers paying IHT at 20% isn’t so bad by comparison. The amount of generated increase tax revenue isn’t much. With one hand the Government is subsidising farmers and with the other hand it’s taking a cut of their lifetime acquired assets.

Another side of the coin is the cost-of-living crisis. Certainly, winter heating costs have been a matter of great concern for a lot of people. Food too is an absolutely essential expense. Hence, the growth of food banks in every part of the country. This shouldn’t be accepted as the norm.

All of this is happening at a time when the nation’s supermarkets are making healthy profits. Keeping cheap food on the shelves with, in some cases, the philosophy of sell it cheap and pile it high. Industrialised and highly processed food coming in at the lowest prices to the customer. At the other end of the supply chain, forcing down farm gate prices.

You would think that getting national food production, the job done by farmers, right would be an imperative for Government. You would think that a regular dialogue with farmers might be quite important. Wouldn’t you?

The problem with Labour’s 20% IHT and the threshold of 1 million is that it’s not going to have much impact of those who own large country estates to avoid other taxes, like CGT. It’s not going to have much impact on large corporate agricultural enterprises. It may not even have much overall impact on land prices. Afterall, they don’t make it anymore.

But it’s going to clobber small and medium sized enterprises, very often family farms. It will clobber far more than the Treasury’s last-minute calculations say[1]. The reason is clear. The profitability of family farming has been dire over recent years. Add a new tax bill and selling-up will be the most attractive option for many potential next generation farmers.

Then the question must be asked what’s it all about? What are the values underpinning this policy? There I go back to the start. Does Labour perceive these working people as “rich”. Their logic may go, why shouldn’t the rich pay more after the Conservative Government that they supported has made such a mess of the country? One way of seeing where we are.

Trouble is that they have aimed at the wrong target.


[1] https://www.channel4.com/news/how-many-farmers-will-have-to-pay-inheritance-tax

UK Farmers’ Unrest: Budget Shock and Political Implications

Yesterday, central London was full of British farmers. Far more than was anticipated. It’s a countryside revolt. Or at least the seed corn of unrest. It needs to be addressed quickly.

The UK Government Budget sprung an unexpected shock on farmers. Newly elected, everyone expected them to try to correct the spending mess left by their predecessors. However, few expected them to make-up last minute figures to do something they said they wouldn’t do.

Lots of family farmers could be singing the classic Beatles song “Yesterday”. Troubles seemed so far away before the general election. Now, they seem here to stay.

Like androids, and the Tories before them, Labour Members of Parliament (MPs) are trotting out lines prepared for them by their masters. The political excuse trotted out robotically is that the theoretical threshold for taxation is £3 million and not £1 million as everyone is saying. Therefore, they say, fewer farm businesses will be impacted by their new death tax.

When something goes wrong in Government one of the best strategies is to address the facts immediately, apologies for any error, take the temporary hit and move on quickly. Stonewalling and wibbling is an extremely poor approach.

For a start, many farmers will not be able to take-up the tax reliefs Labour MPs are talking about. Farming is a hazardous profession. Sadly, unexpected deaths are not unusual. If such an event occurs this could then result in compounded tragedy, that is the death of a family business too.

Farmers are pointing out that significantly wealthy people will still use land purchase to avoid tax. They will have complex and detailed tax planning services at their fingertips.

Agricultural land values have increased dramatically in recent decades. Yes, there is an issue to be addressed with respect to land value. Housing development land is an astronomical price. It’s one of the drivers that is making house prices unaffordable for many people.

Labour needs to recognise that it’s not food producers who are driving these negative phenomena. It’s not small and medium sized family farms who are the problem makers.

Not only is this new inheritance tax very poor politics by Labour, but it’s also not going to crack the problem that they might wisely wish to crack. I’d say, think again. At least consult.

Ignoring Climate Change?

In a way, I’m not immune from a little hypocrisy. Petrol prices go up and I’m not going to jump for joy. Prices go down. I’m not suddenly thinking that’s just going to encourage more consumption. No, I’m looking at the pound in my pocket. It will cost me less to fill up the tank.

There was a whole swath of apocalyptic tales of the world in the 1970s. The “oil crisis” of 1973 should have been a warning. Humanity might have taken the opportunity to look at the trends related to oil and gas consumption. There might have been a more sustained reaction.

Instead, alternative lifestyles, renewable energy projects and energy conservation were thought of as quaint novelties or scientific curiosities that would never really catch on. The political addiction to short-termism overrode consideration of substantial change. Increased exploration led to new sources of oil and gas being found.

Today, we should know better. The fight against climate change has a decade of talk behind it. Humanity knows that the link exists between burning hydrocarbon and a changing global climate. We are ignorant no more. Now, I almost wish I hadn’t written that last sentence.

Across the pond there’s a powerful nation. One that influences the behaviour of 100s of other nations. The US is the largest producer of oil and gas in the world. However, until the last few weeks it had recognised that maybe that isn’t a good formula for the future.

Back to that dollar in the pocket. Despite the US being a powerful nation many its people didn’t feel that way. All politics is local. When filling up with gas gets more expensive people do not jump for joy. In fact, there’s that human tendance to romanticise the past and remember when everything was cheaper. Life was easier. Can’t we go back?

It’s being reported that US President elect Trump’s choice for energy secretary is going to be like turning the clocks back. Prospect is that the fight against climate change is going to get a back seat. At least for the next 4-years.

Does this spell global disaster? Well, it certainly is a great big lost opportunity. Just like here in the UK, Brexit ignited the tendance to romanticise the past. It looks as if the same phenomena have taken root in the US. Burning more and more hydrocarbons is like a sugar rush. A boom to begin then followed by exhaustion. I expect after this presidential term the results will be one of regret. Just like Brexit. A wonderment – why on earth did we do that?

Still, there’s an opportunity for other countries to race ahead with advanced and alternative technologies to reduce energy dependency. It’s hard to think and act long-term. I’m confident it can be done. If it’s done successfully the prize will be great.

Budgets

You can’t live with them, and you can’t live without them. That’s budgets. Most of us budget even if we don’t write it down. I’ve got a certain amount in my bank account. If I spend more than is stamped at the end of my statement, then trouble may ensure. Not always given our modern dependency on credit. A problem arises only when spending gets out of control.

Mr Micawber cautioned about debt’s downside: “Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty-pound and six, result misery.” In his time, Charles Dickens was acutely aware of what unsustainable debt could do to people.

We’ve had weeks where the news media has created a landslide of content on a budget. The repetition of point scoring has got tedious. It’s way out of normal everyday human experience. I don’t know about you, but I can’t easily relate to a number like £1,226 billion[1]. Every year public expenditure totals numbers of that order. It happens. It’s real.

Today, our UK “billion” is a thousand million. That’s spelled out as a one followed by nine noughts. At one time in the past the UK “billion” meant a million million. That’s spelled out as a one followed by twelve noughts. That got dropped for the sake of international harmony.

I have used such numbers in lectures on aviation safety. To think, I often got people glazing over when I talked about ten to the minus nine per flight hour. That’s a billionth of something. A mighty small number. In these cases, a number denoting a probability of something happening.

So, here we are in October getting excited over a change of couple of hundredth of typical annual national expenditure. Not without reason. That figure sound like a small number, and it would be, if it wasn’t for the subject Dickens raises, namely debt.

Wisdom comes from learning from experience. Lessons learned are incredibly valuable. That’s not rocket science. Only we need to factor in how easily we forget bad experiences.

In terms of budgeting, recently two reckless politicians taught us a lot[2]. Truss and Kwarteng sound like a comedy double act or a dodgy back street lawyers office. Those two monster brains had the marvellous idea of borrowing more to give it away. In a short flash of genius what they did increased borrowing costs and spooked just about everyone.

Debt matters. Nation States are not like people, so the home economics analogies don’t stand up. However, borrow too much without being absolutely clear as to the answer for question like – who, what, where, when, why and how and the results are likely to be extremely unpleasant.

Let’s see if the day ends with a pint of beer being more expensive or not. Love them or hate them, budgets are not going away anytime soon.


[1] https://obr.uk/forecasts-in-depth/brief-guides-and-explainers/public-finances/

[2] https://www.niesr.ac.uk/blog/truss-kwarteng-mini-budget-one-year

National Rejoin March: Unity for a European Future

The European Movement[1] has been around for 75-years. Yesterday, I was surrounded by a good number of their membership. That, and many Liberal Democrats. People, young and old, from communities up and down Britain. There were lots of people from the creative industries, so badly hit by Brexit. In fact, there were people of every political background marching through the streets of central London.

Everybody had gathered in central London with the aim of reversing the tragedy that is Brexit. I say “is” and not “was” because the disaster continues to have marked repercussions on everyday life. Reclaiming the freedoms that we once had has brought people together in large numbers.

On Saturday, pro-European campaigners made their way from Park Lane to Parliament Square for the third annual National Rejoin March (NRM)[2]. The weather smiled on the gathering. It couldn’t have been better in the light of torrential rain and the endless storms of past days. The sunshine and blue skies warmed my sprit.

The occasional chant of “Boll*cks to Brexit” has been replaced by Reset, Repair, Rejoin. As is the tradition of these events, posters ranged from the more obvious slogans, like #BinBrexit to the imaginative and sometimes bizarre. The group dressed in eye catching elephant costumes had a point to make. The elephant in the room being the protesters theme.

Standing next to me, one young lad asked his mate why he had decided to be on this rejoin march. I thought his response most was appt: “Because I want to be on the right side of history”. To me that just about sums it up. Brexit is an aberration. Eventually, after a great deal of to-and-fro the strong likelihood is that the UK will rejoin the European Union (EU), or its successor. Everything we know points in that direction. It may take a decade. It may take more.

The Labour Party won the 4th July UK General Election, and while it pledged not to reopen the main parts of Britain’s deal to leave the EU, does claim to want a significant reset. So far, the indications are that this policy line is typical political rhetoric, and little more. But it must be said that this is the early days of a new British government. If their claim to want growth in the economy to fuel spending on public services is honest, they would be mighty foolish to discount rejoining the European Single Market.

Thousands gathered in London. This will go on year after year. The diminishing number of objectors, who chant from the sidelines, remind me of the “Dead Parrot Sketch”[3]. For all intents and purposes all the arguments for Brexit have perished, much like the poor parrot. Even when that’s an obvious fact there are still those few people who will defend it to the hilt. As we walked down St James’s Street a well dressed bloke in a side street seemed most agitated. Shouted abuses and ran off. I looked around. We all shrugged our shoulders. I certainly thought – what a sad man.

I’m sure Britain can reclaim its place in Europe. It will take resolve and continuous effort but, as has been pointed out, this campaign is on the right side of history.


[1] www.europeanmovement.co.uk

[2] https://uk.news.yahoo.com/protesters-call-uk-rejoin-european-154046221.html?

[3] https://youtu.be/vZw35VUBdzo

Last Night

Nice to see a flood of blue at the BBC PROMS last night. I’m not just talking about the wonderful Angel Blue[1]. I was not there. Watched the whole performance at home on the TV this year.

It’s great to hear that GB News went apoplectic. To quote: “The Last Night of the Proms has been swamped in controversy yet again after a sea of EU flags were spotted being flown by event-goers – despite imposing a ban on “protest flags” ahead of time.”

For one, there’s no controversy. For two, there was no protest flags. For three, there’s always all sorts of flags. Making up stuff is the sad habit of bored journalists with space to fill. If I can call them journalist. Click bait writers – now that’s just off-the-shelf hype makers.

Look. In a free country and let’s face it, that’s what the singing in the Royal Albert Hall is about. Land of hope and glory. If the this year’s BBC Prom goers want to hold up EU flags, it’s entirely up to them. No one is forcing them to do so. It wasn’t a mandate from on high.

I was disappointed not to see more flags. My experience of having been at the Last Night twice is that one fun thing to do is to figure out what some of the more obscure flags mean or where they represent. A Caribbean country, Devon, Cornwall, Isle of Man, or a remote Scottish Island. And lots of friendly countries, like the US. Well, dependent on the current presidential race.

Right-wing commentators often push a line that is prescriptive with respect to their opponents but take the view that they should be able to do whatever they like in the name of freedom. I believe that there’s no part of the right of politics that doesn’t hold this self-serving view.

It’s like the often-quoted view of the Conservative Party elite. They take the line that their people are born to rule. It’s not a joke. This week, it’s mighty interesting to read the reflections on recent events coming from Lord Brady[2].

The country is so incredibly fortunate now it has shaken off the fading embers of 14 years of Conservative Party misrule. Who knows what dreadful havoc would have ensued if they had retained power. It’s a much better autumn that might have been.

This is the time to re-think Britain’s relationship with our near neighbours. For a start, all aspects of unnecessary negativity and the dogma of Brexit need to be put asunder. No more ridiculous caveats on every policy and speech just to appease a right-wing media. No more neurotic ducking and diving to keep the outer extremes on-side.

Brexit was a rubbish idea. It was heavily sold by charlatans. It has failed. Corrective action is long overdue. I do not know what shape that corrective action will take but it needs to be immediate and sincere. And with a long-term perspective in mind.

POST: The next generation have the right idea Gen Z leads drive to reverse Brexit in new poll on EU referendum | The Independent


[1] https://angeljoyblue.com/

[2] https://www.independent.co.uk/news/uk/politics/sunak-election-brady-confidence-letters-tory-b2612966.html