Maitland Political Insight Conservative Party Conference 2015

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Maitland Political Insight Conservative Party Conference 2015
Maitland Political Insight
Conservative Party Conference 2015
Maitland Political Insight Conservative Party Conference 2015
Conservative Conference
                                                                  2015

          Maitland Political Insight
                     -
          Conservative Conference
                     -
             September 2015

                                        Contents

Introduction                                                             3

Policy Summary                                                           5

Secretary of State for Business, Innovation and Skills                   6

The Chancellor                                                           6

The EU                                                                   7

London and Beyond                                                        8

Immigration                                                              9

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Maitland Political Insight Conservative Party Conference 2015
Conservative Conference
                                                                            2015

Introduction by Maitland Partner, James
Drewer

James was previously a press secretary at Conservative Party
HQ.

Sometimes, when a leader is at the peak of their power and confidence they have the ability to
change an entire conference in under an hour.

At Conservative Party conference this week David Cameron did just this. His speech had the crowd
on their feet on five occasions. With housing policies he reached to the Thatcherite past. With
rhetoric he dressed Labour troupes in Tory logic, planting himself firmly in the centre ground. It was
his best speech as Prime Minister; much of it seemed to either come straight from his heart, or,
cynically, the pen of the “Big Society” creator Steve Hilton. The speech started with Cameron
saying his “two favourite” words; “exit poll,” to cheers. It ended with him staring down the camera,
and saying to those people who carried Tony Blair to power in 1997 I want to make “these 2010s a
defining decade for our country, the turnaround decade, one which people will look back on and
say: that’s the time when the tide turned.”

His barnstormer was light on specific policy but that wasn’t the point. He took the party out of its
comfort zone into areas usually better trodden by centre-left politicians, setting himself up as a
social justice warrior by proclaiming that “you can’t have true opportunity without real equality.” It is
possible that this could become a totemic moment in the recent history of the Party. For Cameron
and many others at conference in Manchester they can see the opportunity to seize the centre
ground. Mr Cameron has recently openly mused about the possibility of the Tories winning General
Elections with 43% of the popular vote – something that has seemed impossible just a few months
ago.

The conference was not, beyond parts of the Leaders speech, a celebratory affair – although nearly
every speech opened with “I am delighted to be the first Conservative Secretary of State for X in 18
long years”, followed by a hearty clap. The on-going protest outside the Conference created a kind
of ‘them and us’ atmosphere and equally a kind of defiance, most exuberantly illustrated by Boris
Johnson; “As I came into the conference area yesterday we had to go through a kind of Khyber
pass with protestors on either side hurling eggs and water bombs. Perhaps some of you had the
same experience. Were we intimidated? No!”

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With lanyards hiding behind jumpers the Tory faithful filed into the conference centre greeted by the
blue banners reminding them of the “7-day NHS” and other Tory election promises - perhaps
subconsciously mocking the famous Ed-stone which Ed Miliband planned to have in the rose
garden in Downing Street. These Tories though were not in a smug mood, with a wafer thin
majority, a Comprehensive Spending Review and controversial new Tax Credit rules all in the in-
tray before Christmas, there was much more politics than joviality at the Fringe events and
watering holes in Manchester.

Alongside the serious policy discussions was the murmur and chatter of political gossip, mainly
about party leadership. Eyebrows were raised when the Labour Leader Jeremy Corbyn turned
down the Institute of Directors and instead appeared at a Communication Workers Union
sponsored rally a few minutes down the road from the Conference hall. Corbyn is not seen as a
threat by the Tory faithful, if anything, an opportunity for the Tories to win an election by a landslide.

The other leadership chatter was much closer to home, the race to be the next Tory leader is
bubbling below the surface. Boris Johnson went for the “you’re a Tory, feel good” approach staking
claim to the One Nationers in the crowd. Theresa May went for the more Eurosceptic conservative
members, in a speech about immigration. George Osborne, showing his reach across the
Government highlighted his passion for the “Northern Powerhouse”, not a cuddly One Nationer nor
an arch-Eurosceptic, but a functional pragmatic and reasonable “common-ground” Tory.

Meanwhile David Cameron confirmed he would in this, his last term, be on a crusade to leave the
party in the centre-ground. His aim is to hand over to the next Tory leader a giant electorate
delivering a Thatcher or Blair-style majority. Whether he will achieve this or not, only time will tell.

But for now, please enjoy this Insight into the goings on of the Conservative Party Conference
2015.

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                                         Policy Summary

Treasury & Business

• All business rates collected by local governments will be kept by Councils instead of being sent
  to Whitehall
• Treasury will work with Councils to create half a dozen British Wealth Funds instead of 89
  different local government pension funds
• Increased asset sales to ensure the government is “spending a greater proportion of our national
  income on capital investment”
• A sell off of Lloyds bank shares
• Confirmation of 2% spending on defence and 0.7% on international development

Infrastructure

• Establishing an independent National Infrastructure Commission to advise the government on
  infrastructure projects, led by Labour peer Lord Adonis

Housing

• Extending the Right to Buy scheme to Housing Association tenants
• Allowing developers to build affordable housing to buy and not just for rent

Environment

• Trebling the number of apprenticeships in the food and farming industry

Health

• More spending “than ever before” on the NHS
• 750m scheme to improve primary care premises and technology

Foreign Affairs & Defence

• Committing to spend 2% of GDP on defence
• Committing to renewing the UKs nuclear deterrent with 4 new trident submarines

Education

• Creating 500 new free schools

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Secretary of State of Business Innovation and Skills, Sajid Javid

Even before Sajid Javid took to the stage there was an expectation that the Treasury and
Department for Business, Innovation and Skills will work more closely together than was the case
during the Coalition Government. Sajid Javid is one of the Osbornites in Cameron’s Cabinet and
his speech was full of Osborne sign-posting. The main themes were attacking Labour, who Javid
“will not let wreck our country”, attacking the unions, particularly the leader of Unite, “red-Len”
McCluskey and emphasising that the Government will be a “One Nation” force “shamelessly
supporting business”. Javid’s appeal was to the blue collar workers, he told conference “we are the
Party for the people raising their kids in the flat above the family shop”.

The other Osbornism was a spot of political cross-dressing. Javid sent a shot across the bows at
misbehaving businesses. Borrowing some rhetoric from the Labour party songbook he said “being
pro-business does not mean that you turn a blind eye to bad practice. Whether you're a bank
rigging interest rates, a car manufacturer cheating on emissions, or a company not paying your fair
share of tax…. we will come after you.”

Overall there was nothing in the way of new policy, although he did defend the Government’s
controversial plans to “democratise” union striking laws (more info here). The important take home
from the speech is that BIS and Treasury are working closely, Javid’s speech teed up the ball for
Osborne to drive home in his keynote address. The battle over who makes policy announcements,
Chancellor or Business Secretary, is for now, completely dormant.

The Chancellor, George Osborne

Chancellor George Osborne delivered his much anticipated speech to the Tory conference on the
Monday of conference. Proclaiming that “we are the builders”, a phrase joining the Tory’s political
lexicon alongside “Northern Powerhouse” and “long-term economic plan” , Mr Osborne used it six
times as he restated the Government’s commitment to getting Britain building.

The speech emphasised infrastructure and devolution, or “power to the people.” He outed his
younger self as being “one of those people who thought if it’s not happening in London, it’s not
happening anywhere.” A reformed man, the Chancellor praised devolution and elected Mayors in
Greater Manchester and South Yorkshire.
Key policy announcements:
• Increased asset sales to ensure the Government is “spending a greater proportion of our
  national income on capital investment”
• An independent National Infrastructure Commission; led by ex- Labour Transport Secretary Lord
  Adonis
• To allow local government to keep the rates they collect from business, ending the nationwide
  business rate tax and allowing elected Mayors to raise it by 2% for infrastructure spending
• A sell off of Lloyds shares
• Confirmation of 2% spending on defence and 0.7% on international development

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Mr Osborne told conference “the future favours the bold”, and that was partly the point of the
speech, as Osborne manoeuvres to become the Prime Minister in 2019. He used his speech to
show the reach of his tentacles; confirming policy already made about the international
development, defence and NHS spending he highlighted to the Tory faithful the broad reach of his
influence.

It was also a speech that was aimed towards the centre-ground of politics; “do you know what the
supporters of the new Labour leadership now call anyone who believes in strong national defence,
a market economy, and the country living within its means? They call them Tories. Well, it’s our job
to make sure they’re absolutely right.”

The consensus was that while Osborne’s speech will never appear on t-shirts or posters in
students dorm rooms, it was wise, strategic and wily, praising Labour’s achievements like the
“NHS” and “workers’ rights”, saying to the party and country: I’ll be a One-Nation leader, when the
time comes.

The EU

The biggest issue looming on the horizon for the Conservatives remains the European Union. The
conference fringe agenda was dominated by discussions on the renegotiations and forthcoming
referendum, laying bare divisions in the party that have rumbled and occasionally surfaced since
the trauma of the Maastricht Treaty.

The Eurosceptic Conservatives for Britain group, buoyed by the appointment of former Chancellor
Lord Lawson to be its public face, made its presence felt in Manchester. Chairman Steve Baker
MP told a packed fringe event that the Government will “realistically come back with very little” from
its renegotiations, teeing up the group to lead the campaign for British withdrawal.

Of the party’s leadership contenders, Boris Johnson and Theresa May took the hardest line on the
EU, vying for the favour of the Tory right. The duo used their speeches to make it clear that
restrictions on the free movement of people must be included in the Prime Minister’s discussions
with Brussels, something that had been taken off the table after receiving a frosty reception from
other member states.

In contrast, even Foreign Secretary Philip Hammond, considered by many to be in favour of Brexit,
tried to play down expectations by saying that “no politician in eastern Europe is going to support
the end of freedom of movement. It would be domestic political suicide.” This is likely to be the
clearest fault line in the disagreement over EU membership and will be a rallying point for Tory
“Outers” should the PM fall short of their expectations.

For his part the Chancellor, who has always seen the EU in a far more positive light than many of
his colleagues, has his sights set firmly on positioning the Tories in the centre ground following the

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election of Jeremy Corbyn. Though Osborne highlighted the need for reform, he still gave a firm
commitment to Britain’s place in Europe and spoke to the benefits of remaining in the Single
Market.

This was echoed by the Prime Minister in his address as he stated “we know what’s right about it –
it’s the biggest single market in the world.” However he also stated “we all know what’s wrong with
the EU – it’s got too big, too bossy, too interfering.”

All ministers are serving under the expectation that they will back Cameron’s attempts at reform
and eventual recommendation. This embrace of collective responsibility has not been replicated by
Tory backbenchers, and there will doubtless be more dissent in the ranks as the vote approaches.

London and Beyond

The Mayor of London Boris Johnson

Boris’ speech contained the usual gags but it had serious messages too. He showed his
commitment to One-Nation Toryism saying that the party could not “ignore the gulf in pay packets
that yawns wider year by year” and at the same time he also set out a principled stance against
high levels of immigration and his desire to see a reformed European Union.

He also praised his own time in City Hall, such as cutting council tax by 27% over the last 8 years,
presiding over falling crime and murder rates and improved air quality. Looking to the future, Boris
renewed his commitment to installing the garden bridge, extending the Northern Line and
delivering a 24-hour Underground service.

The Conservative Party will be looking for a successor in 2020, as the PM confirmed in his speech
on Wednesday. Whilst it is continuity, represented by George Osborne, that looks most attractive
to activists at the moment, Boris’ speech showed he is re-establishing himself as a potential leader
that may well be drawn upon should the party enter any troubles.

Conservative Mayoral Candidate Zac Goldsmith

Zac Goldsmith’s first speech as the Conservative candidate for London Mayor was dominated by
infrastructure and the environment. He showed support for Crossrail 2, called for more tax powers
for City Hall and promised to get more institutional investors funding housing development.

The Richmond MP said the “biggest challenge London faces is housing” and said “ we can build
the homes London needs without destroying the green spaces we love”.

The Mayoral candidate pledged to use the Mayor’s Land Commission to identify publically owned
brownfield land to build on; use institutional investors to fund housing development and consult

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communities on house building and to listen to local opinion. Goldsmith demonstrated his
commitment to improving the environment saying that he wants the capital to become the
“greenest city on earth” and though he didn’t mention airport expansion in his speech today which
he is opposed to, he made clear the environment would be central to his campaign.

Immigration

Conservative Party conference could not be expected to pass without any mention of immigration,
and this year it formed the centre piece of the Home Secretary’s address. Theresa May stated that
“Of course immigrants plug skills shortages and it is right we should try to attract the best talent in
the world, but not every person coming to Britain right now is a skilled electrician, engineer or
doctor.” Perhaps her most controversial comment that high levels of immigration make it
impossible to have a "cohesive society".

The speech was quickly leapt upon by many in business and the media, Simon Walker. Director
General of the Institute of Directors, said: “It is yet another example of the Home Secretary turning
away the world’s best and brightest, putting internal party politics ahead of the country, and helping
our competitor economies instead of our own.”

It is noteworthy that the Prime Minister used his speech to praise the impact that immigrants have
on the country, in reference to Priti Patel and Sajid Javid the Prime Minister stated “when the child
of immigrants sees our flag, he feels so loyal to this country – his country – he wants to put on a
uniform and defend it.”

By the time the PM’s address was finished Theresa May looked out of step with the party; Times
journalist Hugo Rifkind tweeted “May’s speech was so ten years ago.” Cameron took the side of
business and the treasury who generally see immigration as one the key reasons for Britain’s
growth and improving productivity.

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