Tag: 2002

  • Ed Balls – 2002 Speech on New Localism at the CIPFA Conference in Brighton

    Ed Balls – 2002 Speech on New Localism at the CIPFA Conference in Brighton

    The speech made by Ed Balls, the then Chief Economic Adviser to the Treasury, in Brighton on 12 June 2002.

    INTRODUCTION

    Let me thank you for inviting me to speak this morning at the start of what looks set to be a fascinating conference.

    CIPFA is widely recognised as a leading independent voice on local government and public finance issues. And, under the leadership of your President Chris Hurford and Chief Executive Steve Freer, you are a highly valued partner for central government. Let me thank you today, on behalf of the Chancellor and the Treasury, for your work in leading the steering group which has drawn up the new Prudential Code on Capital Finance for local government, in helping smooth the introduction of Resource Accounting and Budgeting and in working towards the convergence of best practice accounting standards across the public sector.

    These close ties are a sign of the value ministers place on this partnership with local government. Last year’s White Paper set out the next steps for that partnership. And I know that you will be hearing more on these issues this afternoon from the lead minister, Nick Raynsford, who is publishing the draft local government bill today.

    As well as Nick, you have an impressive range of speakers for this year’s conference, with the Rt Hon Clare Short topping the bill tomorrow. I am glad that you have invited Derek Wanless, who did such an expert job on the Long-Term Health Review.

    I am also pleased to be the warm-up act for my friend and colleague Geoff Mulgan. And, given this morning’s match, it is a great tribute to you all that so many of you have arrived on time.

    There is a huge range of expertise here today from across the public sector – local government, public sector audit, the NHS, the police service, the Regional Development Agencies, the Competition Commission, the Environment Agency.

    And I know – whether through tax, fiscal policy, accounting rules, financial regulation, public spending or the financial framework for local government – that the Treasury has a real impact – directly or indirectly – on the ability of you all to do the job you want to do.

    The role of the Treasury is always controversial – no effective finance ministry can ever be universally popular. It is no surprise that Peter Hennessy – in his history of Whitehall – calls the Treasury “the most scapegoated department in the Whitehall constellation”.

    But to the extent that that the old historical caricature of the Treasury as short-termist, centralising, secretive or miserly was ever deserved, I believe those days are gone.

    So I am going to talk this morning about the role that the Treasury – a strategic and long-term Treasury – is playing in delivering the government’s long-term goals.

    And, with the concluding phase of the Spending Review now under way, I want today to make the case that, in the spirit of Bank of England independence and the new approach to regional policy, we now need a new devolution – a new localism – in public service delivery that breaks with the short-termism of the past.

    THE HISTORIC ROLE OF THE TREASURY

    The Treasury is the oldest department in Whitehall, the collector of taxes for over 900 years.

    And throughout the last century it was consistently unpopular. Keynes described the deflationary “Treasury view” of the 1920s as “the natural result of standing half way between common sense and sound theory: it is the result of having abandoned one without having reached the other.” And he parodied the “dead-hand” Treasury view as “you must not do anything because this will only mean that you can’t do something else”.

    Indeed, when then historian Peter Clarke discovered in the archives from that period the Treasury’s copy of Lloyd George’s 1929 pamphlet ?We can conquer unemployment?, he found that a senior and anonymous Treasury official had defaced it with the words ?extravagance, inflation, bankruptcy”.

    Consistently since then the Treasury was seen as an institution which had narrow objectives – low inflation, sound money, expenditure control; short-termist and peculiarly non-strategic – at its best in a crisis; centralising – jealous of its power within Whitehall and beyond; and secretive – protective of information and distant from the outside world

    In his memoirs, Bernard Donoghue – then at the No 10 Policy Unit – describes lunch in 1974 following the OPEC oil shock with a “very senior Treasury official”. He asks why No 10 had been sent no Treasury papers on the threat of hyperinflation. The Treasury official replied: “politicians never deal with serious issues until they become the crisis, so at the Treasury we’re waiting till the crisis really blows up.”

    Reputations earned are hard to be rid of. And fairly or not – and often criticism of the Treasury’s past record has been unfair – this “Treasury view” has often been used as the scapegoat for the series of economic policy failures that have plagued Britain in the post-war period. Short-term macroeconomic failures: the devaluations of 1949 and 1967, the Barber boom, the failure of monetarism in the 1980s and Britain’s 1992 exit from the exchange rate mechanism. And the failure to tackle historic long-term weaknesses: low productivity, inadequate skills, long-term under-investment in infrastructure and the public services.

    THE NEW ROLE OF THE TREASURY

    Gordon Brown as Chancellor of the Exchequer has set out his mission to lay to rest the Treasury’s traditional “dead-hand” image. As he said in a pre-election speech at the Manchester Business School, “a Labour Treasury will be both a ministry for finance and a ministry for long-term economic and social renewal”.

    And with the leadership of our Permanent Secretary – soon to be the Cabinet Secretary – Sir Andrew Turnbull, the Treasury today is playing a new role in government in marked contrast to this historical caricature. The Treasury rightly prides itself on the quality, experience and hard-working nature of its staff, and under the leadership of Sir Andrew the department has been recruiting top-class graduates in record numbers. Anyone who doubts the commitment of the civil service to reform and adapt need only look at the management reforms that have been put in place at the Treasury over the last few years.

    But this new role for the Treasury is not only a reflection of the wider ambitions of this government and this Chancellor to meet long-term economic and social goals: higher productivity, full employment in every region, the abolition of child poverty, and world-class public services. It reflects too, I believe, a proper understanding of the failures of the past and the new challenges of making policy in today’s world.

    Let me illustrate with reference to the first and one of the most significant reforms of this government – the decision to make the Bank of England independent.

    That decision, and sticking to inherited spending plans for the first two years, demonstrated that the new government and the Treasury were determined to make a decisive break with the short-termism of past Labour and Conservative governments.

    But it was also a unique opportunity to learn from the failures of monetarism and the old rigid, secretive and centralised approach to macroeconomic policy-making.

    The failure of monetarism – in the 1980s and then with the ERM – was to introduce rigidity into UK monetary policy making at just the time when the reality of global capital markets demanded greater flexibility.

    In today’s global economy and fast-moving capital markets, responding flexibly and decisively to surprise economic events is critical for establishing a track record for delivering long-term stability. But without a credible framework that commands trust and a track record for making the right decisions, it is hard for policy to respond flexibly without immediately raising the suspicion that the government is about to sacrifice long-term stability and make a short-term dash for growth.

    So in this new world of global capital markets, and building on the reforms put in place after 1992, we put in place a new and post-monetarist macroeconomic model based on “constrained discretion”. This new British model of central bank independence is an approach in which the government sets and is therefore constrained by the symmetric inflation target to stick to long-term goals; but because the institutional framework commands market credibility and public trust, the independent central bank has the discretion necessary to respond flexibly and transparently to economic events.

    And, at the same time, we applied this model – where the public interest is pursued by devolving power to an independent agency charged with achieving clear long-term goals – to other areas of financial policy – establishing the Debt Management Office and the Financial Service Authority.

    This devolutionary act belied the conventional prejudice that the Treasury is short-termist, secretive or controlling and jealous of its power. But this “constrained discretion” model of policy making has also had wider applicability across the public sector.

    Because the old approach to policy where goals were not specified, lines of responsibility unclear, power guarded jealously at the centre and proper performance information concealed from the public, is no more appropriate for running a modern health service or delivering the best local public services.

    As with macroeconomic policy, so effective public service delivery requires discretion for public service managers with the maximum devolution of power to encourage flexibility and creativity and meet consumer demands; but this discretion must be constrained by clear long-term goals and proper accountability.

    Today it is simply not possible either to run economic policy or deliver strong public services that meet public expectations using top-down one-size-fits all solutions of the past. Because new information technologies, greater competition, a premium on skills and innovation, a wide-ranging media, increasingly demanding consumers, and varying local needs all work to expose the contradictions of old-style centralisation and a command and control approach to delivering public services.

    So the principles which guide this new model of modern policy making are:

    Clear long-term goals set by the elected government;

    A clear division of responsibility and accountability for achieving those goals with proper co-ordination at the centre;

    Maximum local flexibility and discretion to innovate, respond to local conditions and meet differing consumer demands;

    And, alongside this devolution of power, maximum transparency about both goals and progress in achieving them with proper scrutiny and accountability.

    Embracing this new approach to policy-making – this new localism – requires a very different Treasury.

    Where the old caricatured Treasury had narrower objectives, today the Treasury has broader goals with a new mission “to raise the rate of sustainable growth and achieve rising prosperity through creating economic and employment opportunities for all”.

    Where the old caricatured Treasury focused on short-term crisis management, the Treasury today sees its role as long-term and strategic.

    Where the old caricatured Treasury was of an institution that wanted to suck power into the centre, the new Treasury wants to devolve power and responsibility with enhanced local discretion to take the initiative and be creative.

    And where the old caricatured Treasury emphasised secrecy and control through non-disclosure, there is a new premium on transparency and openness as the route not just to greater accountability but also better policy outcomes and wider public trust.

    I know that any speech from a Treasury official extolling the virtues of devolution will be met with a sceptical ear. And rightly so. Because the principles I will set out today are hard to put into practice. Change takes time. In some areas we have not gone far enough fast enough. The easy option is always to resort to the old ways on difficult issues. And there is sometimes a tension between the desire to devolve flexibility and encourage local innovation with the fact that, often, it is ministers at the centre who remain accountable to parliament and the public for fiscal stability, tax, value for money and performance, as with the public-private partnership for the tube. But to those people who remain sceptical about our motives, that this is the same old centralising wolf, I hope today to persuade you to think again. Let me do so by discussing productivity and regional policy, public spending and local government in turn.

    PRODUCTIVITY AND REGIONAL POLICY

    Our policies to promote productivity and full employment in every region of Britain are being shaped by this new approach to policy making.

    Take competition policy, where we have now legislated to make individual competition decisions independent of ministers for both cartels and now complex monopolies. The DTI and the Treasury in financial sector cases remains responsible for the long-term goals of competition policy, for key appointments to the competition authorities and have the power to over-ride in exceptional circumstances. But on a day-to-day basis, with the goals of competition policy more clearly defined in legislation, decision-making has been devolved to the Office for Fair Trading and the Competition Commission who are now accountable to Parliament directly for case-by-case decisions making.

    This new model, based on constrained discretion, is also guiding our approach to regional policy where, with the Deputy Prime Minister and the DTI, the Treasury has championed a greater role for strategic economic policy-making and policy innovation at the regional and local level.

    The first generation of regional policy, before the war, was essentially ambulance work getting help to high unemployment areas. The second generation in the 1960s and 1970s was based on large capital and tax incentives delivered by the then Department of Industry, almost certainly opposed by the Treasury. It was inflexible but it was also top-down. And it did not work.

    The new approach to regional economic policy, wholeheartedly promoted by the Treasury is based on two principles – it aims to strengthen the long-term building blocks of growth – innovation, skills, the development of enterprise – by exploiting the indigenous strengths in each region and city. And it is bottom-up not top-down, with national government enabling powerful regional and local initiatives to work by providing the necessary flexibility and resources.

    This new regional policy is based on a genuine devolution of power in economic policy making to the Regional Development Agencies – with expanded budgets and – just as important – the “single pot” with 100% flexibility, including full EYF, to spend these resources to meet regional priorities.

    This “single pot” is a radical departure for central government. It is requiring a big culture change. For central government departments? role is long-term and strategic rather than short-term and micro-managing. But also a culture change in the regions as this devolution requires other regional and local economic players – the Learning and Skills Councils and the Small Business Service as well as local government – to work as part of the RDA regional strategy.

    In return for this devolution of power and discretion in decision-making we have demanded greater transparency and accountability. Each RDA has been required to agree stretching and long-term output targets with national government for the years ahead. Not, as we have repeatedly reminded Whitehall departments, as a backdoor way to regain control but so that each RDA is held properly to account by the national taxpayer but also within the region and by local government.

    Strengthening this new regional economic policy – with further support for the RDAs to promote enterprise and job creation in the regions – is a priority for the Spending Review.

    For the first time this Review will be based on a wider collection of regional needs and priorities. The RDA and the Government Office in each region have already submitted a Regional Priority Document to the Treasury. And we will publish greater information on the regional impact of the Spending Review to meet our productivity goals.

    But enhancing the role of the RDAs is not only about resources. We must also ask how we can effectively harness the new strategic leadership of the RDAs and make better co-ordinated policy in the regions across a range of areas where public spending impacts on regional economic strategies – planning, skills, transport and housing.

    To ensure proper regional and local accountability, the Deputy Prime Minister and the Chancellor last year allocated £5m to fund the eight Regional Assemblies outside London. Last month, the Deputy Prime Minister’s White Paper set out the detailed route map for those regions that want to go further and move to elected regional assemblies. And the Treasury has worked closely with the Deputy Prime Minister and the Cabinet Office to draw up a package of further financial freedoms and flexibilities to match greater accountability.

    FISCAL POLICY AND PUBLIC SPENDING

    The principles underpinning this new approach – clear long-term goals, a strategic centre, effective devolution matched by transparency and accountability – are also guiding the Treasury’s approach to fiscal policy and public spending.

    Since 1997 the Treasury has introduced and stayed with the same two long-term fiscal rules defined over the economic cycle. We have enshrined in legislation a Code for Fiscal Stability to codify in law the Treasury’s fiscal obligation and responsibilities. And while devolution of the management of the public finances and tax policy would not make sense, we have enhanced openness and transparency in fiscal policy-making, with key fiscal assumptions audited by the independent National Audit Office. It is this credible commitment to fiscal discipline that is enabling us to release record new resources to invest in the NHS and public services.

    At least as radical have been the changes that the Treasury has introduced in public spending planning and control since 1997 – one area where the old caricature clearly bears a resemblance to the truth.

    It is now widely recognised that the ideals of the Plowden approach, that set out to guide public spending decisions from the 1960s, were progressively eroded over the next two decades. This left a public spending regime that was short-termist, with annual budgeting and no distinction between current and capital spending which meant that long-term capital investment was too often sacrificed to meet short-term current pressures.

    It was ad-hoc and incrementalist with the centre of government paying too little attention to the need to coordinate between departments.

    Departments were not devolved the necessary freedom to plan properly, with no certainty about the following year’s budget, no End-Year Flexibility to carry forward under-spends and central control over public sector pay.

    And, worst of all, it emphasised controlling inputs rather than delivering outputs with no proper attempt to be accountable to the public for outcomes.

    The new approach to public spending, introduced since 1997, makes it possible to plan for the long-term with a clear distinction between current and capital spending as we steadily tackle the backlog of under-investment.

    Spending decisions are based on in-depth policy review, not simply on last year’s figures, and informed interdepartmental reviews to strengthen co-ordination across government.

    We have devolved spending power to departments with a three-year not one-year cycle and there is full End Year Flexibility for departments to move their budgets from one year to the next. With the introduction of Resource Accounting and Budgeting, departments will have greater freedom to manage their assets properly.

    And, most important, it is results-driven with targets for outputs set out in the Public Service Agreements which the Treasury agreed with each department as part of the 1998 and 2000 Spending Reviews – with floor targets to raise the performance of below average services and tackle inequalities in all the main public services – education, health, transport and crime.

    The introduction of PSA targets in the 1998 Comprehensive Spending Review was the most ambitious attempt internationally to set explicit goals for outcomes across the whole of Government.

    Some have interpreted the introduction of PSAs and output targets as an increase in Treasury interference and control. I disagree. We have rightly moved away from the old days when the Treasury signed the cheques or had to approve each and every spending project.
    The Treasury does work closely in partnership with a range of departments in the development of economic policy. But far from being a way of pulling power into the centre, PSAs are the constraint which allows effective and accountable devolution and discretion for departments. And making a reality of this devolution requires government to cascade these targets and financial flexibilities down from departments to front-line mangers instead of the old input controls of the past – and here progress has not been always as fast as it could have been.

    The resources and reforms announced for health in this year’s Budget chart the way forward. The Treasury has agreed a five year budget with the department and full End-Year-Flexibility. The Department of Health and the NHS Executive are the strategic centre, setting objectives and shaping incentives. There is growing devolution of money, multi-year budgets and flexibility down to Primary Care Trusts and hospital Trusts, with money increasingly following patients. And there will also be new, tough and streamlined audit and inspection with two national regulators for health and social services with an annual report to Parliament and local reporting. Because the public has a right to know how their money is being spent and that spending and reform are being combined to deliver outputs.

    The role of Cabinet and Cabinet Committees, working with the Cabinet Office, the Treasury and No 10 – and increasingly central government departments too – should not be to direct and control the detailed delivery of services. It should be to create a framework in which local public service deliverers have the discretion to innovate and improve the services they provide, constrained by the need to reach high minimum standards. That is why, since the last election, the Delivery Unit in the Cabinet Office, working very closely with the Treasury, has assessed the strategic capacity of each main department to meet key PSA targets by incentivising good performance in local service delivery, working with the private and voluntary sectors where appropriate. And the Office of Public Service Reform, also in the Cabinet Office under the leadership of a former local government Chief Executive, Wendy Thomson, has also been developing this approach since last year.

    This philosophy is guiding our approach in this year’s Spending Review, now in its final phase. And we are again breaking new ground.

    In the 2000 Spending Review, we took the opportunity to improve the structure of the Government’s objectives and set more streamlined PSAs covering the additional expenditure and focusing harder on the things that really matter, with fewer targets, better focused on the important issues, and with data systems audited by the NAO.

    For the first time in this review, we are able to assess spending strategies in the light of performance to date against existing PSA targets. Which means that, the process of matching money with reform is being done in the light of experience of which reforms so far have worked and which have failed to meet expectations.

    Most important, in this Spending Review – working with hospitals, schools, police forces, transport and housing – the government is determined to go even further in matching money with reform through clear long-term targets and national standards and proper audit and accountability to ensure standards are met, combined with a new localism in public service delivery – greater local devolution, greater flexibility to achieve greater results and greater choice for consumers.

    LOCAL GOVERNMENT

    Let me turn finally to local government. Just as we made a start with regional policy in the last Parliament we also made a start in devolving power to local government, moving away from the destructive centralism characteristic of the years marked by universal capping, strict limits on borrowing and then the Poll Tax.

    The old caricature of the Treasury was of a department which – because of its desire to centralise power – was hostile to local government and to devolving real financial flexibility and accountability. I do not believe that this reputation is entirely fair.

    But, as in regional economic policy, so in local service delivery, a proper strategic division of responsibilities requires us to recognise that Whitehall does not know best – that effective service delivery for families and communities cannot come from central command and control but requires local initiative matched by local accountability. And with the Deputy Prime Minister John Prescott in the lead on local government issues, I can assure you that you have powerful champions across Whitehall.

    So to build a long-term and strategic partnership between central and local government, this government has devolved resources and flexibility and boosted financial support for councils, through real terms increases in revenue and in capital expenditure for four years.

    We have matched devolution with greater accountability with new constitutions for local government following local consultation and expanded the capacities of local government by introducing statutory community strategies produced by local partners.

    And we have developed Local Public Service Agreements, which match resources and greater flexibilities to outcome targets. And as we increase the number of local PSAs from 20 local authorities last year to the top-tier 150 by 2003, we will match them with further steps towards greater flexibility: flexibility and resources in return for reform.

    The White Paper last December set out new reforms that will significantly expand the freedoms and flexibilities available to local government and we have made good progress since then.

    There is not time today for an exhaustive list. But as you know, in addition to consulting on providing greater freedom for all councils to decide council tax discounts and exemptions, we intend to legislate for further freedom to use income collected locally from charges, we are making progress in Whitehall in identifying unnecessary bureaucracy to achieve the target of a 50 per cent reduction in the numbers of plans and strategies that government requires councils to produce and we are focussing on the difficult issue of ring-fencing as part of the Spending Review. And you know too that we intend to make councils themselves responsible for deciding how much they can prudently borrow. I know CIPFA are playing a leading role in drawing up the prudential guidelines for controlling capital investment. This will provide greater freedom for councils to invest. But it will also place more responsibility in the hands of individual councils to manage their own affairs – real financial flexibility in a prudent framework.

    Based on the same principles of constrained discretion high performing councils will receive extra freedoms to lead the way to further service improvements. For these councils, we will not use our reserve powers to cap council tax increases, as a first step towards our long term goal of dispensing with the power to cap altogether; we intend to legislate for new powers to free up councils to trade and work in partnership; we will grant more discretion over best value review programmes; and introduce a much lighter touch inspection regime.

    Decisions about high performing authorities will be based on the new comprehensive performance framework for local government – currently being piloted with 10 pathfinder areas. CPA will provide clear and concise information about councils’ performance, enabling us to make our inspection regimes more proportionate, to target support where it is most needed, to identify the small minority of failing councils in need of tough remedial action. It is also key to allowing us to go further with freedoms and flexibilities for councils.

    As the Chancellor said at the end of last year following the publication of the White paper, we are ready to go even further to enable local people to do more to make local decisions about meeting local needs and consider further radical options to ensure devolution of power and responsibility go hand in hand so that the public can get the best possible services. And once we have carried out further analysis, we shall establish a high level working group involving ministers and senior figures from local government to look at all aspects of the balance of funding, reviewing the evidence and looking at reform options.

    CONCLUSION

    In conclusion, I believe that we have moved beyond the old caricature of the Treasury as the department that likes to say no – reactive, short-termist, centralist and secretive – to a new long-term model for British economic policy based on clear and long-term objectives, devolution of power and transparent mechanisms for accountability. It is a new model – with power devolved to those best placed to make expert decisions to meet national goals and standards – that we are already applying from monetary and fiscal policy to financial service regulation, competition and regional policy and the new financial regime for local authorities – and we must now go further in the Spending Review with a new localism in public services.

    This new model requires – as the Prime Minister’s pamphlet on public service reform says – “a genuine partnership between government and the people in the front line.”

    The Treasury is committed to working in partnership – with departments, with the regions and local government. Because, as the Chancellor of the Exchequer said in his speech to the Local Government Association last December, it is only by national and local government working together – matching devolution and accountability – that we can hope to meet our shared long-term goals, creating a more enterprising economy and a fairer society.

    Thank you.

  • HISTORIC PRESS RELEASE : Adding it Up to better public services [June 2002]

    HISTORIC PRESS RELEASE : Adding it Up to better public services [June 2002]

    The press release issued by HM Treasury on 5 June 2002.

    Further improvement in vital public services will be more readily achievable through a new website sharing evidence which underpins key Government policies, Chief Secretary Paul Boateng announced today.

    Launching the website www.addingitup.gov.uk, Mr Boateng said:

    “The Adding It Up website marks a significant further step forward in improving public services.

    “It will enable Government Departments to enhance their store of important evidence used to determine the right policies to meet Government objectives, and to share the most up to date information about their own evidence base.

    “It will further strengthen the policy making process and, perhaps most importantly, influence the research community and stimulate debate to generate positive approaches to make further progress in the vital area of public service improvement.”

    Under the Adding It Up initiative major spending Departments have been asked to set out evidence organised according to their Public Service Agreement (PSA) Objectives. They have provided references to :

    • the most important research that has informed policy choice
    • set out work in progress that may influence future policy choices
    • programmes already in place to strengthen the evidence base further.

    The website actively seeks to stimulate debate with outside experts. Its aim is to give the research community wider perspectives on policy research priorities while also opening up Departments’ evidence bases, enabling them to gain insights from research activity being carried out elsewhere.

    The initial information contained in the website will be regularly updated and expanded to reflect the debate generated and the improvement of the evidence base over time.

  • Iain Duncan Smith – 2002 Speech in Birmingham

    Iain Duncan Smith – 2002 Speech in Birmingham

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, in Birmingham on 17 January 2002.

    Some people say that the world changed on September 11th. They say that we have entered a new era – that a period of peace and order has been shattered by a wholly new and unexpected threat.

    And they say that out of this, a different world must be born. A world in which everyday behaviour must change. A world which demands a seismic shift in the powers between Government and people. A world that requires the dissolution of old alliances and their replacement with new ones.

    They also say that it is a world that promises a new order. One in which the threat of terror can finally be subdued in favour of a permanent peace. In which alliances that have been forged to root out a specific enemy can be turned to a broader and permanent purpose.

    I do not see September 11th in those terms. I don’t believe that the world before September 11th was as benign as others, then or now, would have us believe. The end of the Cold War did not represent the triumph of reason and goodwill but a victory for a decades-long policy of credible and effective opposition to those who would destroy us. A victory for practicality, not pipe dreams.

    And as the communist threat ended, it was replaced by a myriad of other threats. That’s why, when fashionable opinion regarded a policy of strengthening our defences as being somehow unnecessary I was more determined of the need to defend against different threats. I have spoken often about the threat of rogue states and their connection with terrorism. I have also pointed out that their terror feeds off organised crime and, as a result, links right through to the drug dealers on our street corners and schools.

    And because I don’t believe that the period between the end of the Cold War and September 11th ushered in a new era of consensus, ‘the end of history’ as some have put it, I am concerned that there are some who say a new global settlement should be the principal goal of the Government.

    Conservatives take the world as it is, not as we would prefer it to be. Those on the Left are always prone to policies that rely on a view of the world as they would wish it to be. So-called ethical foreign policies, or public dreams of pivotal roles take us nowhere if they are built, not on a shrewd understanding of the world as it is, but on a refusal to contemplate a world that eludes attempts to control and order it.

    “Instead of aiming for an all-encompassing consensus built on a vision of a new world order, my instincts are always to build from the bottom up: to derive policy from the instincts and values of the people we represent, guided by our own values.

    To me the grandeur of the response to September 11th lies in the sum of instinctive reactions by a whole host of unrelated people and groups whose behaviour is impelled more by their values than by the deliberate enactment of an ambitious plan. The dying who sustained the lives of their loved ones with a final telephone call. The firefighters who instinctively plunged into the burning buildings to rescue others.

    The Mayor and the President who, in very different ways, found in themselves the ability to lead their people. The ties of history that caused Britain instantly and unswervingly to commit our help to our American friends in the fight against terrorism.

    Perhaps most of all the way sovereign nations came together for a singular, and very specific, purpose that has been conspicuous in its success.

    The steps that these thousands of individuals took were not grounded in some abstract theory, but in values and instincts expressed through actions.

    In Britain today the Government seems to be constantly finding ways to prevent people’s own instincts and values from guiding their behaviour. Whether it is in the public services, in companies or in local and national government, people’s actions are increasingly justified by, or even dictated by, policies with which they must comply. If there’s a single word that has gained currency over the last 30 years, and encapsulates much of what is going wrong, it is ‘compliance’.

    It is dangerous for at least two reasons. First, the more pervasive is the compliance mentality, the more we degrade the capacity of our employees and our neighbours to exercise personal influence and responsibility. We dumb down the individual.

    Second, it implies that the official view that replaces individual discretion will be wiser and more effective. We need more, not less discretion, as individuals, as teachers, as doctors, as social workers, as neighbours.

    My colleague Oliver Letwin, the Shadow Home Secretary, spoke last week about how we need to support and help families, schools, and communities in building the values that sustain a neighbourly society. An ethos of public service is one such value. Labour claim that the value of public service is incompatible with the private sector. But it is their own remorseless centralisation that is the gravest threat to the notion of public service. Our teachers, our nurses and our police officers will progressively lose their sense of vocation if all they are permitted to do is to follow detailed instructions from Whitehall. Labour are destroying, not building, the neighbourly society by not allowing people the freedom to express their values through their actions.

    At the heart of my politics is a belief that people’s values should be free to drive their behaviour. That applies to political parties as it does to individuals.

    I was recently asked in an interview whether there is a Conservative equivalent of Clause IV in the Labour Party’s constitution: an article of faith that we have to repeal to be seen as a modern party.

    The answer is that it is unimaginable that the Conservative Party should be faced with such a dilemma, because the idea of a Clause IV is inconceivable for us. Labour draw their policies from a blueprint for society. They have a top-down approach to policy which leaves them always susceptible to the glamour of grand schemes and global solutions.

    Blair may have removed Cause IV from Labour’s constitution, but he could not remove it from their hearts. He executed a coup de theâtre – milking the applause that were given to a symbolic clash of personalities, the repudiation the old and its replacement with the new.

    Characteristically, though, all of his efforts were focussed on changing the superficial expression, rather than the underlying instincts. Labour remain hostile by instinct to solutions that do not involve heavy state direction. It is no surprise that when Labour’s policies are tested by crisis they fall apart amid chaos and recriminations.

    Stephen Byers, once New Labour’s leading cheerleader for modernisation, now says that there is too much private sector in the Third Way.

    The Health Secretary, Alan Milburn said that he would ‘come down like a ton of bricks on anyone who has anything to do with the private sector’. He said, just six months ago, ‘thankfully we have one monopoly provider and that is the National Health Service and as long as there is a Labour government in power that will remain the case’. On Tuesday, in blind panic at the impossibility of delivering health improvements, he said that he wanted to see the end of the NHS as a ‘centrally run, monopoly provider of services’. When their rhetoric rails against their own instincts it is inevitable, that they should suffer the political equivalent of a nervous breakdown. They have no basis of principle for their policies, so they have nowhere to go, nowhere to turn. So they barricade themselves against reality with 5, 10 and even 20-year plans – each one more ludicrous than the last.

    John Prescott unveiled a 10-year plan for the railways in 1999. In 2000 we had a 10-year NHS National Plan. Last November the Chancellor announced a 20-year plan for the NHS. On Monday Stephen Byers rushed in another 10-year plan. Two year, two portfolios, four 10-year plans.

    Always a new plan – they never get shorter, and the Government never talks of being four years into a plan.

    They also have a cynical purpose. They take refuge in the abstract to distract people from what is all too real. They go to enormous lengths to prevent themselves from being judged.

    David Blunkett tries to turns the clock back to zero by blaming their failure on crime on his predecessor, Jack Straw. John Prescott said ‘judge us on transport after 5 years’. Five years come and Stephen Byers says it will take another 10. If anyone personifies Labour’s failure to hide behind plans rather than take responsibility it is Stephen Byers.

    This whole approach is alien to Conservatives. We have never believed in new world orders or domestic blueprints. We have always been the practical party, because we have never tried to cut ourselves loose from our principles, but instead have expressed them through our policies.

    Conservatives have been successful when we have articulated a clear view of the problems that Britain faces, and have found ways to solve them that rely on empowering people rather than pushing them around. ‘Trust the people’ has always been a powerful Conservative rallying cry. It has never let us down in the past, and it will not now. We have embarked on the most far-reaching renewal of our policies for a generation. It is our opportunity to refresh our sense of purpose, and to make connections way beyond our usual supporters.

    The first thing this requires is to be clear about our priorities. We can’t concentrate on everything at once, and nor should we. To govern is to choose, and as we prepare for government we will not flinch from making choices.

    We choose to concentrate on the issues that make most difference to people’s lives. So our efforts will be focussed on solving the crisis in our public services – the health service that makes people afraid to fall sick; schools that deprive millions of children of the opportunities that a first class education offers; a transport system that makes travelling in or between our cities an ordeal.

    And we will focus on the problems – and they include our public services – that are hardening the arteries of our economy turning it from one of the most flexible and dynamic in the Western world into one of the most overburdened, conformist and bureaucratic.

    We understand instinctively that the quality of our lives is influenced more by our families, our communities and our environment than by the economic forces that those on the Left think determine our well being. So we will sweep aside Labour’s ludicrous assertion that Britain’s streets are becoming safer than ever. We all know from experience that is not true, and we will look for the means to revive the neighbourliness that stops the conveyor belt of crime from ever taking hold. And we will address the concerns of a new generation for the condition of our environment. It is fertile territory for Conservative thinking. The best traditions of Conservatism are about our duties as stewards of an unending inheritance, rather than revolutionaries seeking to impose a new order.

    During the years ahead, people can count on the Conservatives always to have, at the forefront of our minds, the same concerns that they do.

    As we renew our policies we will not be content to listen only to the usual voices. I mean to expand the range of people and organisations that influence us.

    But the way we develop policy will be characterised by leadership and direction, and based firmly on Conservative values. Our values have stood the test of time. The problems may have changed, but the values that underpin our solutions are as relevant as ever.

    By their nature, Conservative values are not easy to capture in distilled form. Their true expression is through our policies and how we conduct ourselves. But as we renew our policies, and expose the failures of this government, these are the themes that will be consistently expressed.

    The first is that our policies will clearly help people to be more independent of the state. Labour is making Britain a nation of supplicants. Every time the Chancellor presents a budget, he draws more people into dependence on his largesse.

    Forty per cent of our fellow citizens will rely on means-tested benefits by 2003 – up from 25 per cent in 1997. When more and more people have to rely on the Government for their living we compromise their dignity and damage our economy and our democracy.

    We in Britain do not save enough – and societies saving as little as ours are heading for long-term welfare dependency.

    And we must go further. It’s not just a matter of increasing people’s independence, our policies must reduce the power of the state over people – and that is our second principle. Because I trust the people, I want people to have more freedom to shape their own lives.

    We have a Government of control freaks. For Labour, control is not a means to an end, but an end in itself.

    It was explicit in the old Clause IV, and is implicit in everything they do in Government. Their first instinct was to take the railways back into state control – without any idea of how this would help or even of what to do next. The chaos and misery that passengers are suffering is as nothing to them, compared with the self-satisfaction they feel from being in control.

    They bombard our teachers with orders and directives, and destroying their ability to act according to their instincts as professionals and as individuals. They attach so many strings to taxpayers’ money spent on health that hospitals have even less money to spend according to doctors’ priorities than before.

    And they take every opportunity to emasculate the institutions, like Parliament, that exist to hold them to account.

    Our policies will reduce compulsion by the state, and ensure that whenever the government exercises power it is effectively scrutinised, and that the rights of individuals are protected.

    As we reduce compulsion, so we increase the choices available to our citizens – and that is our third principle.

    Because Labour cannot bring themselves to trust people’s instincts, they are against choice. Among their first acts was to remove choice in our education system, by banning Grant Maintained schools – themselves established by parental choice – and scrapping the assisted places scheme.

    As a country, we have always been stubbornly varied. Our great cities still find their characters in the urban villages that make them up. Our counties are proud of how they differ from their neighbours. They embody a diversity that runs with the grain of Britain’s history and our character. But that diversity cannot be imposed. That is why the Government’s bogus regional agenda seeks to replace what is organic and historical, with something that is alien and unworkable. The only diversity that this Government will permit is one of its own design – a diversity that is not the outcome of choice, but its reverse – the attempted imposition of order.

    Choice does not equal insecurity. Indeed the opposite is true, which is why the fourth characteristic of our policies must be that they provide greater security for our fellow citizens.

    As we have grown more prosperous as a nation, we have lost some of the things that made us feel secure.

    It is a paradox that many of the very institutions that were meant to increase our sense of security have become some of the prime sources of insecurity in our lives. The NHS was conceived as a safeguard on which we could all rely. But for many – especially our most vulnerable citizens – the possibility of falling seriously ill and having to rely on the NHS is a nightmare. It adds to their worries, rather than reduces them.

    The Prime Minister said in the House of Commons last week that crime is falling. That is not the experience of millions of our fellow citizens, who feel less and less secure in our streets. Muggings are up by 40 per cent. Violent assaults are up by 20 per cent. And, as with our public services, it is the most vulnerable in our society who bear the brunt of the effect of crime.

    The only credible solution is decisive action to tackle at source the causes of these insecurities. Palliative measures offer only false comfort. In the late 1970s we recognised that the growing power of the trades unions was a source of increasing national insecurity – compromising our ability to earn a living. A decade of policies to mollify the threat of ever worsening industrial relations failed absolutely to resolve the insecurity that it bred. People predicted that the consequences of decisive action would be destabilising. They did the same when we reformed the British economy during the 1980s.

    But in both cases, the result of decisive action to address the causes, not mitigate the symptoms, was to restore a more fundamental security to our national life.

    Essential to the confidence that comes from competitiveness is our fifth principle – that our policies should remove obstacles to enterprise, both at home and abroad.

    Our businesses resent the fact that in more and more areas they must, in effect, obtain a licence to trade from the Government. It sometimes seems that what is not illegal is becoming compulsory.

    A government which says it sees the virtue of eliminating rules, taxes and regulations on international trade is oblivious of the fact that precisely these measures are taking over our own domestic economy. They have identical effects: impediments to trade whether in Britain or internationally impoverish us all and our policies will be characterised by removing them.

    The CBI itself puts the increased burden of business taxes at £5 billion a year. The Institute of Directors has put the added cost to business of regulations at a further £5 billion. And in the year 2000 alone 3,864 new regulations were introduced – the highest figure on record. No wonder our businesses have to struggle harder and harder to compete.

    The Government says it wants a new relationship with the private sector to pay for public service projects. But it will never work because they lack the basic instincts to avoid interference and control. Just look at the railways.

    Four things are needed when private capital is brought into public projects: clear information, on which customers and suppliers can make a choice; freedom for customers to choose; freedom for providers to manage their businesses; and sanctity of contracts.

    Labour lacks the most elementary appreciation of each of these. Take the health service, for example. Information about cost and performance is not available.

    Customers – GPs or patients are not free to choose their health provider. Private providers are not free to manage their businesses, but have to abide by NHS practices. Characteristically, the Government insists on total control.

    And if private capital providers can’t rely on the Government to keep to the terms of the deal – if the Government doesn’t hold to the sanctity of contracts – then there will be a huge risk premium on providing capital for public projects. After the Railtrack debacle what is the risk premium on dealing with this Government now?

    All of our policies will be informed by a vision of what our country is like at its best. They will be marked by more self-confidence in Britain than any of our opponents dare display.

    This Government has always been embarrassed by our traditions and our ways of doing things. They have tried to promote bogus makeovers for Britain as a nation – do you remember ‘Cool Britannia’? And when that failed, they have tried, as in their approach to Europe, to submerge the things that make us distinctive as a nation.

    Conservatives are confident about Britain’s future because we are comfortable with our past. Labour is neither.

    People don’t want grand schemes and elegant theories. What people want, in fact expect, from our democracy is something much more simple and yet far more difficult to achieve. They want us to give them the freedom to make life better, to help them when required and to get out of the way when we are not.

    So our policies will result in less politics in people’s lives, whereas the Government wants more. Policy renewal is inseparable from effective opposition. Our first duty is to expose the problems people in Britain face, especially where, as in so many areas, the Government attempts to disguise the scale of its failure by a culture of deceit.

    But the way that we oppose must also convey our own principles, and exemplify, rather than detract from, our own approach.

    Oliver Letwin’s analysis of crime is based on precisely the Conservative principles I have described of recognising the importance of allowing people’s values to govern their behaviour. He is showing that our approach is principled, intelligent and humane. The proposals that we announced this week to replace the House of Lords with a directly-elected Senate, standing above political patronage, shows that our principles can have striking expression. They underline the fact that we can recognise when the time has come for change, and we will embrace it in a way that reflects principle, not self-interest.

    In the months to come more flesh will be put on these bones of these principles for a distinctively Conservative approach to government. But within that skeleton, this backbone will be particularly important. For even before our far-reaching policy review has come up with its results, Labour will certainly try to discredit it, and us.

    Of course, that’s what politics is often about. And there’s nothing wrong with heated debates, or even the occasional polemic, as long as the issues are fully exposed as a result. But my distaste for New Labour’s political style is quite different.

    The Prime Minister used to say that the problem with Old Labour was that it confused means with ends. The problem with New Labour is that it its only purpose is to stay in power.

    This Government has impoverished politics. They have weakened all the institutions that could check or effectively scrutinise their actions – the Lords neutered, the Commons ignored, the media alternately cosseted and intimidated.

    The Prime Minister has appointed more peers more quickly than any holder of his office in history.

    Wasn’t it typical of New Labour that their plan for the House of Lords was to take the 80 per cent appointed House they created in 1999 and offer to turn it into an 80 per cent appointed House, with a further 20 per cent chosen by party bosses through closed lists?

    No wonder the sense of alienation with politics grows by the day.

    I am determined that the next Conservative Government will not just implement different policies that reflect our principles. Our whole approach to government will be fundamentally different. We will check the obsessive media manipulation, the suppression of debate, the erosion of constitutional checks and balances. We will stop burying bad news, adjusting targets and double counting public spending figures.

    We seek power for a purpose, we will pursue policy based on principle, and this will give our government clear direction.

    And we will conduct ourselves in opposition as we mean to conduct ourselves in government. Honest, principled politics is important. Because we trust people, we know the importance of persuading them to trust us.

  • Iain Duncan Smith – 2002 Speech to the Royal Institute for International Affairs

    Iain Duncan Smith – 2002 Speech to the Royal Institute for International Affairs

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, on 31 January 2002.

    For more than three-quarters of a century, British and foreign politicians alike have been beating a path to the doors of Chatham House in order to set out their wares before this distinguished and discriminating gathering. I am honoured and delighted to be invited to do likewise.

    Henry Kissinger’s most recent book, published before the outrages of 11th September, was provocatively entitled “Does America Need a Foreign Policy?” His answer, of course, was “yes”. Dr Kissinger argues that (I quote) “in the 1990s, American preeminence evolved less from any strategic design than a series of ad hoc decisions designed to satisfy domestic constituencies” which had “given rise to the temptation of acting as if the United States needed no long-range foreign policy at all”.

    Under President George W. Bush – as I learned for myself when I talked to him and senior members of his Administration – America does indeed now have such a policy. It is strong, focused, self-confident, realistic and governed by an intelligent perception of America’s national interest.

    In this, as in other respects, the Americans have much to remind us of.

    Dr Kissinger’s question about America was obviously asked tongue-in-cheek: a super-power does clearly need a long-range foreign policy. But Britain needs one just as much. We are the fourth largest economy, a power with global interests but limited resources to defend them. We have to be focused in our analysis, realistic in our objectives, staunch in our alliances, ingenious in our methods and resolute in our actions.

    And, to quote Kissinger again, our leaders need “the intuitive ability to sense the future and thereby master it”. It is a tall order. But, then, whoever said statesmanship was easy?

    Tuesday 11th September brought home to many the domestic imperative of foreign affairs. The terrorist outrages committed against New York and Washington transformed public perceptions throughout the West. Suddenly, people of all political persuasions and none were compelled to take stock of the dangers and the complexities of the world beyond our shores.

    It is essential, however, not to fall into the trap of believing that the world itself – along with perceptions of it – changed fundamentally on that fateful Tuesday.

    Most obviously, al-Qaeda was planning these attacks for a number of years beforehand. Indeed, arguably, if different decisions had been taken by the US authorities in the wake of earlier outrages the horrors of last September might have been avoided.

    As the title of this address suggests, Britain does indeed have to make its way in a “changing world”. But it is important to distinguish what changes from what stays the same.

    11th September was not, after all, the first time even in modern recollection when the world appeared to be undergoing fundamental change. It happened at the end of the Cold War. Freedom was extended to millions who had never known it. And geopolitics was all at once turned up-side-down. The world became uni-polar, with the United States as the only global superpower. The international system was more open but less predictable. It was one where the globalisation of both economics and culture were promoted by a communications revolution.

    But there also grew up a dangerously false view of realities. The Cold War had lasted so long that many people assumed that a stand-off between great powers was the usual state of affairs. And now that there was no such stand off, it was tacitly assumed that there was also no serious threat to peace.

    In fact, the end of the Cold War meant no such thing. It marked in many respects a return to earlier conditions – ones where a number of powers jostled for advantage, and where both alliances and tensions shifted in line with the circumstances of the day.

    Within this more fluid world NATO’s role retained its importance. And so did America’s leadership. But the old disciplines disappeared along with the old rigidities. Hence the rise of the rogue state. Hence also Saddam Hussein and the Gulf War.

    And then again the world seemed fundamentally to change on 11th September. Old rivalries have given way to at least one new partnership – that emerging between the West and Russia, whose strategic importance has been emphasised by the demands of the War Against Terrorism. So too, the rivalry between the US and China, which had grown sharply in recent years, has suddenly been put on hold. These, then, are some of the ways in which the world today has changed.

    And yet equally important is the extent to which the underlying realities have not changed at all – either with the end of the Cold War or with the start of the War on Terrorism. We have clearly not reached anything like the “End of History”, when swords are forged into ploughshares – or perhaps laptops – as the lure of prosperity transforms yesterday’s warrior into today’s entrepreneur.

    Yet these particular instances fail to get to the heart of the matter. Even before we analyse the risks that surround us we should at least always assume that they exist. For that is the way the world is. Human nature has made it so.

    The insight I have described here is at the heart of the Conservative view of foreign policy. Conservatives – with a big and a small “c” – are interested in the world as it is. We are realists; and we rejoice in the fact, because we know that it allows us to avoid succumbing to the distractions and descending into the cul-de-sacs that lure the unwary.

    There is, though, another view. And it is frequently proclaimed by the Prime Minister.

    The Conservative Party has supported, and will support, the Prime Minister whenever the national interest demands. But this does not detract from the fact that the present government has an approach to British foreign and security policy which is, at its very roots, misguided.

    The problem is simple and fundamental. It is that the Prime Minister seems to believe that there are no limits to what Britain, acting as part of an all-embracing global coalition of the Righteous, can and should do to make the world a better place. To judge from a speech he made earlier this month in Bangalore, he does not even see any limits to foreign policy, saying (I quote): “In today’s globally interdependent world foreign and domestic policy are part of the same thing”.

    If, of course, this means that you cannot have a successful foreign policy without also having a successful domestic policy, then there is a certain amount of truth in it. But, even then, it is not the whole truth. Countries which seek to pursue ambitious foreign policies which neither advance their interests nor match their resources are putting their standing and possibly their security at risk. And there is worse. An unfocused approach to foreign policy leads to, and is often devised in pursuit of, media grand-standing.

    The truth is that high profile diplomacy always contains it own temptations. Before foreign leaders decide to offer their personal services in sorting out long-standing international disputes, they should be clear about the answer to three searching questions. First: what do I expect to achieve?

    Second: what practical means are at my disposal?

    And third: am I best placed to do it?

    Without clarity on these points, the correct conclusion may be to stay at home.

    So much of today’s Designer Diplomacy demonstrates a worrying lack of realism. What is at work is a delusion about the way the world actually works, one which consists (in T. S. Eliot’s words) of : “Dreaming a system so perfect that no-one will need to be good”.

    Today’s utopian internationalists, who only have to glance at an opportunity for multilateral intervention in order to jump at it, run the risk of weakening national support for those military engagements which are fundamental to our security. Moreover, they fail to recognise that it is only when nations consider that their vital interests are engaged that they will make those sacrifices and shoulder those commitments that lead to successful outcomes.

    Let me take the War Against Terrorism as a decisive case in point.

    The attacks on the World Trade Centre and the Pentagon provoked such national, as well as international, outrage because no-one could fail to see that they were intended as attacks not just on America’s interests, policies, and actions but on America herself.

    I said at the time that America’s war was – and is – our war. That is both because our people and our interests are so close to those of America and because we also had the will and the means to make America’s struggle ours as well. But the fact remains that America unambiguously led the war – a sovereign power leading a coalition of sovereign powers.

    America has now demonstrated decisively that its capacity for action is the best guarantee of the world’s security. But America has also demonstrated that, no matter how powerful the currents of globalism and internationalism, the decisive strike against international terrorism required mobilising national loyalty, national pride and national willingness for sacrifice. That remains the most reliable way of ensuring that grave wrongs are punished and that just wars are won.

    This reflection leads to my first conclusion about the right priorities for British policy today. For me, as a Conservative, a successful foreign and security policy is one which always has a clear understanding of the national interest.

    That is not an isolationist principle: quite the reverse – it is precisely because our national interest is bound with the interests of other civilized nations that we must pursue a vigorous foreign policy. But we must always have a clear understanding of our mission.

    But, naturally, the national interest has to be viewed in the round, with intelligence and perception.

    In today’s interdependent world, the national interest can be damaged or advanced by crises arising far away from our shores – not unusually in the Middle East, home to most of the world’s hydrocarbon resources. But many other areas too, where international terrorism, or proliferation of weaponry, or destabilising ethnic tension, or human or ecological disaster threaten, will rightly concern us. The War Against Terrorism itself reinforces this truth. After all, when our troops were acting to smash the Taliban in Afghanistan they were also acting to cut off a deadly channel of heroin that kills young people in our cities at home.

    Moreover, it can sometimes arise, as in Kosovo, that a failure to take military action to protect an endangered civilian population would be morally culpable. It may also be right to intervene in order to maintain a great principle whose infraction with impunity could set a fatal precedent – for example, the principle that aggression shall not prosper, or that borders shall not be changed by force. And over and above all these security matters, the maintenance of global trade, promotion of global prosperity and enlargement of global freedom are real national concerns of Britain. But when we do, which was not the case in Kosovo at the outset, we must determine to put the right forces in place to force our plan.

    The history of our nation has qualified us well to play a major strategic and humanitarian role. The fact that Britain bestrides three spheres of influence: its Commonwealth, its special relationship with America and its partnership with other European states enables it to have influence over the response of the international community to disasters both natural and man-made.

    Other countries actually look to Britain to take a lead because of our heritage in international diplomacy and our reputation for getting things done.

    British NGO s are highly regarded and it is no surprise that the United Nations has just picked Oxfam as an acknowledged world expert to restore water supplies in Goma. Providing international help on this scale is resource hungry that is why hard questions need to be asked about the effectiveness of aid, making sure it gets into the right hands. And as far as possible helping to make a country self-reliant and not dependent.

    Reform of international organisations through whom Britain channels its multi-lateral aid should not escape our attention. European Development assistance accounts for a third of all our giving and although there has been some progress in cutting red tape and speeding up EU relief efforts, much more needs to be done. Britain’s role on the international stage is an important part of our nation’s identity. Being respected for the quality of our help to others in trouble is something we can be rightly proud of.

    The second follows from a clear understanding of our priorities. It is that diplomacy is no substitute for strong defence, and foreign entanglements that leave British forces overstretched and vulnerable are to be avoided.

    Britain is not just another second order world power. We are unique, and our uniqueness lends our opinions weight. No other power enjoys the combination of far-flung links through the Commonwealth, or our special standing in the Gulf, or our place at the historic hub of the English speaking world or our long tradition of civil peace or our international reputation for decency and fair-dealing. These are all important advantages. But while trumpeting all these claims, let’s not forget something else: Jaw-Jaw is indeed preferable to War-War – but investment in defence is also an investment in our international influence. We are listened to, above all, because we are permanent member of the UN Security Council, and a nuclear power with highly effective armed forces – and because we benefit from a uniquely close relationship with the only global superpower. Each of these – our defence preparedness and our alliance with America – is vital to our national interest.

    Happily, our relations with our great ally are in good repair, though I should like to see them stronger still, as I shall explain.

    Our lack of defence preparedness, however, gives greater cause for concern. The size of our armed forces has been shrinking at the same time as they have been tasked with extra commitments – the most recent being a new peacekeeping mission in Kabul which is much less well-defined than the original objective of removing the Taliban and al-Qaeda.

    What any sensible British Government has to recognise, and then to act upon, is that we cannot hope to do more in the world and yet spend less on it. That’s called facing up to reality.

    In the US today, there is a drive towards further strengthening of military capabilities. In Europe, however, it is a very different picture. According to the latest figures from the International Institute for Strategic Studies, EU countries’ defence spending continues to fall. This is deeply disturbing, and there is no sign yet that the events of 11th September have shaken Europeans – or the British Government – out of their complacency.

    That brings me to my third conclusion – the vital strategic importance of our relationship with America. For it is upon our American friends’ cooperation that our effectiveness as a military power and our security as a nation depend. Not the least of the positive inheritance from the Conservative eighties and nineties is that Americans know that Britain is America’s most reliable ally. It is to the credit of the Prime Minister that he has reinforced that perception by his well-chosen words of support during recent months. In fact, at an emotional level the Trans-Atlantic relationship has rarely been closer.

    This emotion also reflects a deep reality. People sometimes query the importance of the “special relationship” and suggest that it is just nostalgia. It isn’t. It reflects the fact that the British and Americans see the world in much the same way – which itself reflects our shared history, language, culture, values and beliefs. And it is upon such foundations that international relationships are built. Yet while psychological closeness is important, it is not a substitute for decision-making.

    Since September 11th something else has changed. We have all but seen the last of the attempts to induce America to abandon its plans for Ballistic Missile Defence. Russia has been constructive over the issue, recognizing that the ABM Treaty was based on a military doctrine which has substantially changed. The priority now is not so much to deter a massive nuclear strike: it is to protect ourselves, our forces and our allies from missile attack by rogue states or from the risk of accidental missile launches.

    I believe that the British Government should have given stronger support to President Bush’s plans and led the debate here in Europe. Indeed, we should be doing all we can to take advantage of them. Just as we benefit from America’s nuclear umbrella, so we should also seek to benefit from its Ballistic Missile shield. Staying outside it by default would be to take an unforgivable risk with our nation’s security.

    A further piece of confusion is also discernable on the political horizon. Labour’s position on Ballistic Missile Defence is explicable by the internal politics of the Labour Party.

    Yet America is determined to see this enterprise through – and rightly so. Washington clearly sees that the problem of rogue states and the problem of international terrorism are intimately connected.

    The world cannot be safe while Saddam Hussein is free to develop weapons of mass destruction. Nor can we accept that, simply because they were hostile to the Taliban, other states which actively support terrorism should be treated as if they were upstanding members of the international community. Britain should give absolute support to the measures necessary to ensure that events like those of 11th September are never repeated.

    We should always recognize that our ability to help shape the thinking of the USA is greatest if we retain the capacity to act. If all we have to offer is our wisdom, our influence is likely to be diminished.

    The confusions evident in this Government’s approach to foreign and security policy are also reflected in its confused approach to Europe. What is required is a clear, consistent strategy to promote Britain’s national interests in all our dealings with the European Union – and that is my fourth conclusion. This is a larger topic than can conveniently be covered here. But the main components of the Conservative Party’s policy are well known and enjoy very widespread support.

    They are, first, that we believe that the European Union continues to have great potential to help bring stability and prosperity to what should be a growing number of member states. To deliver that the EU needs radical reform, and that reform should be built from the bottom up rather than from the top down – in other words from the nation states and their parliamentary and political systems. A Conservative government would lead that process of reform, rather than pursue the Government’s policy of continual drift.

    The statements of both the present Right-of-Centre Italian Government and of the Conservative Candidate for the German Chancellorship demonstrate that the kind of concerns we have about over-centralisation are widely shared – even within countries which have been at the forefront of closer European integration.

    Second, and in keeping with this, we continue to oppose Sterling’s abolition in favour of the Euro. Our view is that there will never be a single interest rate and a single monetary policy which are right for all European countries. We remember the effects of the ERM. We also note the disastrous consequences of a fixed exchange rate in Argentina. We shall strongly, and I believe successfully, argue for retention of the Pound in any referendum which is called.

    Third, we believe that the proposed European Rapid Reaction Force is an exercise in politics not in serious security policy. It is – and has been intended as – an alternative to NATO, the most successful defence organisation that the world has ever seen. It will involve duplication. It will lack credibility. It will create confusion about Western aims. It risks decoupling Europe from America. It will add nothing to European defence capabilities, which as I have already noted are actually declining. In short, the European Army is a venture which only makes sense if it is regarded as a necessary part of creating a European superstate – something which the Prime Minister denies is his intention.

    The fifth element of our Conservative foreign policy concerns supranational organisations more widely. International cooperation between sovereign states is and always will be necessary to achieve practical objectives which would be beyond countries acting alone. That is why we have always been supportive of international bodies including the United Nations and the World Trade Organisation. The danger today, however, is that some supranational organisations are being invested with more powers than they are suited to wield.

    For example, we expressed our concerns in the last parliament about how the blueprint for an International Criminal Court would work in practice. It may, as in the cases of Yugoslavia and Rwanda, be necessary to set up special courts to deal with altogether unique circumstances. But we must avoid at all costs creating a situation which makes it more difficult for law-abiding nations to pursue just action, because it is their officials or soldiers which will find themselves having to answer to such a political body, not those from countries which scorn all law.

    There are parallel issues in economic affairs. We need to find and retain the right balance between global and national decision-making. The World Trade Organisation, as successor to the GATT, does sterling work in helping integrate the global market place. Removing obstacles to trade is the single most important task international economic decision makers have – for trade is the driving force of prosperity. But at the same time we should be cautious about more ambitious plans that have been mooted to create a “New Economic Order”.

    We should, in fact, remember: supranational organisations never of themselves kept the peace – that has been left to well-armed nation states. And supranational organisations never of themselves made nations rich – that was the work of countless individuals producing and consuming in the market place, in the context of fair and democratic institutions.

    I have tried to cover a wide canvas today, and some details will need to be filled in on other occasions. But the five axioms I have set out – and the philosophy which underpins them – are, I believe, clear, consistent and coherent. They stem from a view of the world, a world seen through Conservative eyes. The great Macaulay was not, of course, a Conservative – though I fancy he would be today. I warm to his observation, all the same, that “an acre in Middlesex is worth a principality in Utopia”. Our historian would doubtless be extremely surprised at the cost of land in Middlesex. But I am sure he would not be at all surprised to find preoccupations with Utopia still generating political folly. The next Conservative Government will try to change that.

  • Iain Duncan Smith – 2002 Speech to Students at Westminster Central Hall

    Iain Duncan Smith – 2002 Speech to Students at Westminster Central Hall

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, in London on 5 February 2002.

    It is a great pleasure for me to speak at the Westminster Day 2002 today and I am very grateful to you for inviting me. I know that my predecessor, William Hague, very much enjoyed coming to the Westminster Day and I look forward to doing what I can to support it in the future.

    One of the reasons for that is the importance that I attach to encouraging people from all walks of life, whatever their background, to take an interest in politics and what their political leaders are actually doing. That applies just as much to people of my own generation as it does to people of your generation. It is important because the decisions that are made here in Westminster can have a huge impact on all our lives.

    Questions about the future of our health service, about our education system, about the actions we will take to protect the state of the environment and to help those in our world less fortunate than ourselves, all of these will be decided through our political process.

    Our world is moving at a bewildering pace. It is important that democratic institutions guarantee our security at such a time, while leaving us free to take advantage of the opportunities that change presents us.

    But you cannot understand the power of politics without recognising first its place in modern life. At the very time when people are looking to politics for more and more answers, there has never been a more glaring disconnection between politicians and the people whom they are elected to represent.

    Active participation in politics is now very much a minority pastime. General apathy with politics is now leading to dangerously low levels of participation in the democratic process itself.

    Huge numbers of people cannot be bothered to vote. For them politics is just one big turn off.

    That was demonstrated clearly at the General Election last year. At just 59 per cent we had the lowest turnout of voters at any Election since 1918 – and even then there were exceptional circumstances at work. Alarmingly for the state of our politics, more people stayed at home and didn’t vote on polling day than actually went out and voted for the party that won.

    Among younger people the situation was more shocking. Just before the election an opinion poll for the BBC showed just 38 per cent of 18-24 year olds intending to vote, while among 25-34 year olds the figure was still only 45 per cent.

    This isn’t a partisan point at all but there is a strong argument for saying that the real winner at the Election was apathy.

    As a candidate, I met countless numbers of people who said to me that there was simply no point in voting. “They’re all the same – after your vote and then do nothing when they get in”. “Voting never changes anything. “It makes no difference to me”. They’re just in it for themselves”.

    So it almost goes without saying that the image of politics and politicians, especially among younger people, is not a good one. It is borne out in opinion polls that regularly place politicians among the least trustworthy members of society.

    There are numerous reasons for this. I don’t doubt that the various scandals that have hit all parties in recent years have tarnished the general image of politicians.

    There is a widespread feeling that Parliament no longer matters – that it is marginal to events and not a place where people can get things done.

    The language of politics is so often not the language of people and the priorities of politicians sometimes don’t appear to be the people’s priorities. As a result, political leaders seem to be remote arguing about obscure matters that have little or no relevance to people’s day-to-day experiences.

    There is the growth of single-issue pressure groups that channel people’s energies and act as an outlet for their political grievances rather than political parties.

    And, of course, there is the perfectly understandable fact that most people don’t sit around agonising about the day’s events at Westminster but simply want to get on with their lives.

    These, then, are the problems. What are the solutions?

    The first is that both politicians and voters must rise above the ritual cynicism that has become too ingrained in the conduct of politics.

    Britain does not need to be a nation of full time political junkies. But we should recognise that among all the freedoms we have in the country the democratic right to vote in, and to throw out, the Government of the day is perhaps the most priceless.

    Look at what is happening in places like Zimbabwe today, where free and fair elections are in peril. 20 years ago I served with the Army in Zimbabwe as we helped to help transform that country from white minority rule into a multiracial, multiparty state. Now, step-by-step it is becoming a dictatorship, unless we do something to stop it. That’s why democracy matters.

    Think of the first fully democratic elections in South Africa after the end of apartheid, when people from the black townships got up at dawn, walked for miles and then queued for hours simply in order to exercise their new-found freedom to vote after years of political struggle and oppression. That’s why democracy matters.

    When you see in Afghanistan today, women free to walk the streets by themselves, free to go to school and free to teach in those same schools because we lifted that country from the tyranny of the Taliban. That’s why democracy matters.

    If we pretend otherwise, if we allow our own cynicism to obscure what a precious and hard-earned thing democracy is, then we cheapen not only ourselves we cheapen those who have lived without it for far too long.

    We only have to look at our own country to see the power of democracy. Britain has become a very different place in the last 20 years in part because of the electoral successes of Margaret Thatcher, whether your parents agreed with her or voted for her.

    The second thing we can do to revive our democratic culture, is to engineer an outbreak of honesty. You might think this a particularly difficult thing for a politician to achieve!

    After all we live in an age of spin, soundbites and media manipulation, partly because we are led to believe that what looks and sounds good is more important than what is good.

    This not only insults you as future voters, it does politicians a disservice too. I became involved in politics because I believed in certain things:

    – that the more choice and more freedom people have the better their lives are;
    – that the traditional rights and laws which shape the way we live our lives in Britain should be preserved for future generations;
    – that governments don’t have all the answers and are at their worst when they pretend that they do.

    These beliefs haven’t changed. If you ask me what it is that politicians do, I would say we are in the business of ‘practical idealism’. Politics is at its best and its most honest when it is driven by values, when the political debate is between the policies which flow from different principles.

    These principles will differ from party to party. For the Conservatives it is about putting more trust in people and taking the world as we find it, rather than the way we would like it to be. That is where we start from when we seek to improve things.

    Some of these improvements will be modest. It doesn’t make them any less worthwhile. Today my colleague Caroline Spelman is announcing an appeal launched with Islamic Relief to raise money for a mobile ambulance that will help treat landmine victims in Afghanistan. It is a practical step that will help thousands of victims. It is the sort of initiative that is replicated by countless thousands of people in this country up and down our country every day.

    Trusting people means trusting their instincts, their desire to improve their neighbourhoods, to help out in their communities, to lend a hand to people on the other side of the world.

    In our public services, it means giving more power to doctors and nurses and to teachers so that they can offer the quality of health care or education that they joined their respective professions to give. It is a simple vision rather than a grand design, but putting it into practice is far from easy. It means looking again at the way we run our hospitals and schools.

    It is one of the reasons why my Conservative colleagues have spent so much time looking at the way other countries run their public services in France, Germany and Sweden to see what we can learn, to see what might be made to work here.

    It means breaking away from old thinking, from the dogma and ideology that has characterised too much of our political debate on these issues for too long.

    What really matters is that people are treated more quickly and to a higher standard in our hospitals; that more pupils have the chance to achieve the same qualifications and learn the same respect for themselves and for others that many of you here today take for granted.

    This is the sharp end of politics. The democratic debate over the future of our hospitals and schools will shape the health care your parents and grandparents receive, it will also shape the education your children and grandchildren get when you are their age.

    It is nothing less than a debate about the future direction of this country, about the future direction of your lives. If you want to be involved in that debate, now is the time.

  • Peter Ainsworth – 2002 Speech at the Tenant Farmers Association AGM

    Peter Ainsworth – 2002 Speech at the Tenant Farmers Association AGM

    The speech made by Peter Ainsworth, the then Shadow Secretary of State for Environment, Food and Rural Affairs, on 12 February 2002.

    I know that this has been for many of you a truly terrible year. Your chairman has described it as ‘horrendous’.

    It was horrendous even by the standards which your industry had sadly come to expect.

    In the three years to June 2001, over 60,000 farming jobs were lost, and total farm incomes crashed from over £5 billion to £1.8 billion. What other industry could take that kind of punishment and survive?

    By the start of last year, for many of you, achieving the National Minimum Wage was a pipe dream.

    You could be forgiven for asking what you had done wrong to invite the series of traumas, akin to the plagues of Ancient Egypt, which one after another struck. BSE, Classical Swine Fever, dreadful harvests, unprecedented rainfall, a collapse in commodity prices.

    And just when you thought it could not possibly get worse – it did.

    Next week will see the grim anniversary of the date on which Foot and Mouth became official.

    The scale of the disaster remains vividly in the mind. Over 2000 confirmed cases across thirty counties. Many of you saw your livelihoods quite literally vanish before your eyes as some 6.5 million animals were slaughtered, often in brutal circumstances, on nearly 10,000 farms.

    These are the official figures.

    Some estimates have put the number of animals slaughtered at nearer 10 million.

    I know that these numbers, horrific as they are, don’t tell the whole story. It is hard for anyone who was not directly touched by the tragedy to understand the emotional impact on the farming communities and families where the culling took place.

    I am acutely aware of the vital role played by this Association in providing advice, information and consolation during those painful months. It was a ghastly time, but the worst of times can often bring out the best in people and the whole country was moved by the resilience, determination and decency of the farming community during those days.

    There remain many questions to be answered by the Government over its handling of Foot and Mouth. When, precisely, did Ministers first become aware that the disease had broken out? Why was there a three day delay in imposing a total movement ban? Why were Ministers so slow in grasping the need for urgent action? Why was there no contingency plan in place? Why didn’t they mobilise local vets? Why did they rule out vaccination? Why was chaos allowed to develop before the army was finally called in to help with the disposal of carcasses? Was contiguous culling carried out legally? Who drew up the maps on which the culling was based? Why does the Prime Minister refer all enquiries to Defra when it was he who assumed personal responsibility for managing the outbreak?

    Were the Government’s eyes so transfixed by the date of the General Election that they couldn’t see the tragedy unfolding before them?

    All these questions, and more, we will continue to ask.

    But the honest way to learn the Lessons of Foot and Mouth would be to hold an independent public inquiry.

    Just why the Government has set its face against a thorough public scrutiny of its handling of the disease can only be guessed at. The fact is that if they have nothing to hide they have nothing to fear from a Public Inquiry, and in the absence of openness, we are left to draw our own conclusions about what it is they do not want to have exposed.

    What is certain is that the Prime Minister’s stance on this issue has done nothing whatever to heal the growing rift between Government and countryside which was already all too visible before the last Election.

    To make matters worse, the first measure introduced by the Government since the outbreak, the Animal Health Bill (Animal Death Bill) confers sweeping new powers of entry and destruction on Ministers and officials, and insinuates that farmers were chiefly responsible for the spread of Foot and Mouth.

    The uncompensated financial loss caused by Foot and Mouth to the livestock industry stands at over £1 billion.

    But the true costs to the wider economy have been far greater.

    It was only in the aftermath of the devastation that the Government seems to have begun to grasp the idea that farming is not an isolated activity, and that what happens to farming affects us all. That is why the future of agricultural policy is so important.

    Much has been said and written of the opportunities which now exist to develop a radical new approach to farming policy, but Ministers who lecture the rural community about the need for change must remember that before change must come trust. There remains an urgent need to restore consumer confidence in British farm produce, but equally urgent is the need to address the dysfunctional relationship between Government and the farming community.

    The most important policy objective must be to enable a return to profitable farming; this, more than any new regulations, will help to ensure the future of the rural environment. In fact the swathes of red tape are part of the problem and the Curry report has some useful recommendations to make in this area. Of course there is a need for regulation where issues concerning human health, the environment and animal welfare are concerned, but the command and control culture which originates from the Common Agricultural Policy and finds its expression in the Defra paperchase would be quaint if it were not so damaging.

    In all the discussions about the Future of farming, too little attention has been paid to the particular difficulties suffered by the tenant farmers. Given that you account for some 9.5 million hectares, 40% of land farmed in this country, your interests might be expected to form rather more than a footnote.

    If structural changes are believed to be necessary to farming, then Government thinking must take account of tenant farmers. With no assets to rely on, facing retirement can be a daunting prospect.

    That is why, before the last Election, we promised to use the Rural Development Regulation to introduce a retirement package for tenant farmers which would not only benefit existing tenants but also, importantly, help encourage newcomers into the tenanted sector.

    The Government made a similar pledge but so far they have done nothing to keep it; and we will work with you to hold them to their promise.

    Many of the problems facing farming and the environment will yield no easy or quick solutions, but a determined effort to get government out of the daily management of rural businesses would be a start.

    It seems that hardly a week goes by without some new regulation making life harder. In fact, since 1997 there have been a staggering 15,000 new regulations which have impacted on farming in some way. From the Right to Roam to the vibration of tractors, nothing can be allowed to happen without Ministerial approval and the endless, wasteful unproductive bureaucracy that goes with it.

    As Iain Duncan Smith said recently;:

    “It sometimes sees that what is not illegal is becoming compulsory”.

    What is happening to our country? What is happening to our freedom?

    And what is the meaning of Free Trade when British farmers are being asked to compete for supermarket orders with overseas producers who are less constrained by animal welfare, hygiene and environmental regulations?

    We must ensure that you are able to compete on fair terms.

    When it comes to farming, I want to hear a little less about free trade and a lot more about fair trade.

    The Curry Report had little to say about this, but it had much to say about modulation; indeed although it contains helpful thinking on better marketing and streamlining bureaucracy, modulation is its Big Idea.

    I am keen to help you do what, by and large, you have always done: manage the environment in sustainable way. The beauty of our landscape is of huge economic benefit, but it is more than that. For most of us, whether we live in the countryside or in cities, it has an intangible strength; something which cannot be adequately portrayed in a picture postcard; something essential to the way we think of ourselves as a nation.

    This environment is your work place and it has been fashioned by farmers over the centuries. It didn’t get there by accident, it got there because of you and your predecessors.

    But the words sustainable development become meaningless if sustainable does not also mean profitable.

    What worries me about the enthusiasm shown by Curry for modulation is that, under existing EU laws, it could simply mean that the taxpayer ends up paying an even higher bill, whilst farm incomes continue to decline and farmers become more, not less, dependent on the state.

    I will not attempt, this afternoon, to reform the CAP, although radical reform is urgently needed. The present stand off between the Commission on the one hand and Poland on the other shows just how great the problems are. Let me just say that you have a right to expect the British Government to have identified clear objectives long before now and to be taking a lead in mapping out the future of European agricultural policy. Well, if you know what Margaret Beckett wants out of CAP Reform do let me know, because I haven’t got a clue and don’t suppose she has either.

    The problems centred around the CAP and WTO talks must not be allowed to divert attention from measures which could be taken now. I have touched some of them:

    Start cutting bureaucracy now;

    Begin to rebuild trust;

    Help with retirement plans;

    Encourage new entrants to farming;

    Tackle unfair imports.

    And how about this? Margaret Beckett is keen to talk about encouraging local consumption of local food. We all think this is a good idea. Why doesn’t the Government take a look at its own food procurement policies and put its money where its mouth is (or vice versa)?

    Finally, the negligent approach to controlling illegal food imports is a disgrace which should be put right immediately. After all that went wrong last year, after all the waste and the cost and the heartbreak, perhaps the most disturbing thought is that literally nothing has been done to prevent Foot and Mouth being imported again tomorrow.

    I am once again, extremely grateful for the opportunity to share some thoughts with you today.

    In the months ahead, I look forward to working with TFA to develop the policies which you need, which we all need, for rural Britain to reverse the years of decline and to become once again a vibrant place to work and a source of physical and emotional nourishment.

    And I will never forget that all too often, Government has been part of the problem not part of the solution.

  • Theresa May – 2002 Speech to the Annual Royal Institute of British Architects Council Club Dinner

    Theresa May – 2002 Speech to the Annual Royal Institute of British Architects Council Club Dinner

    The speech made by Theresa May, the then Shadow Secretary of State for Transport, Local Government and the Regions, on 14 February 2002.

    I often find when I do radio interviews that I am asked for my correct title. When I tell them it is Shadow Secretary of State for Transport Local Government and the Regions they usually recoil in horror. Can we shorten it they say?

    I guess that to many people at first sight there is little that seems to marry together the various bits of this wide department, but I believe there is much that brings the issues together. It is what I call the Quality of Life department because it deals with the matters that affect people’s everyday quality of life – The things that can make the difference between a good and a bad day.

    How was the traffic taking the children to school, did the train run on time – or at all. How long did you wait for the bus? Did you trip up on that uneven pavement the council’s left for months – and they haven’t collected all the rubbish sacks again and the street lights weren’t working last night.

    And the traffic’s so much worse since they built that new development on the outskirts of the town – goodness knows what it will be like if that superstore gets the go-ahead. And now of course the primary school’s full – do you know how long it took me to get an appointment at the doctor’s surgery and what’s more the new houses don’t even look nice.

    Although the word environment no longer appears in the Department’s title and responsibility for the environment has moved to another department, the DTLR’s responsibilities palpably deal with the overall environment in which we live and the quality of life we experience.

    At this stage I should perhaps deliver an Opposition health warning. Our process of policy renewal has only recently started and I will not be able to set out for you tonight specific policy proposals. What I do hope to do is to stand back and identify the issues as I see them and show the direction in which our thinking is developing and I should say that in some areas there is some agreement with the Government at least on the aims of policy if not on delivery.

    But on one thing we are clear. As we develop policy we want to produce policy that meets the needs of people’s lives. This is not about Westminster knowing best. It is about understanding how people lead their lives, the problems they face and the issues that need to be addressed and developing policy to do just that. So involvement of people is important.

    Central to the question of environmental quality of course, is the planning system.

    Everyone is agreed that the planning system in England and Wales is in need of reform. The sorry saga of Terminal 5 exposed how the appeals system is cumbersome and costly. In my own constituency I see the resigned frustration felt as residents face a third planning inquiry on the development of motorway service areas on the M4.

    I think most would agree that there are too many tomes of regulations and guidance – the plethora of RPGs, PPGs and MPGs on top of UDPs and Structure Plans are inaccessible and unaffordable for local people and for business.

    My own concern is that these problems, together with the inconsistency of decisions, the uncertainty of timetables, and lack of information has generated a lack of confidence in the planning system. Too often developers feel they don’t get a fair crack of the whip as they despair at the last minute intervention of local lobby groups, and individuals and community groups feel that the odds are stacked against them as the developer has all the money and the means to keep coming back with application after application.

    So I agree with the Government that we need to make changes in the system, but I am not convinced that the Planning Green Paper is the answer. And indeed upon reflection, many planning professionals and business leaders are increasingly voicing their concern about its impact.

    I don’t want to spend long on the Green Paper tonight. I simply want to say this.

    We wholeheartedly support the removal of unnecessary planning red-tape, but we do not support proposals that look as if they will strip local communities of their voice and weaken environmental protection.

    The problems with planning are not just of cost, delay and lack of certainty. Whitehall politicians and regional bureaucrats too often override the wishes of local communities, resulting in loss of local character, uniformity of architecture and unsustainable development.

    The Green Paper proposes that 90% of planning decisions will be decided by officers, rather than elected councillors. This isn’t the best way to speed up planning decisions – and whereas business may welcome not being subject to the whim of elected councillors, local people will feel their democratic check on plans has been removed.

    And then there are the concerns about the proposals for dealing with major infrastructure projects. Will Parliament have the time for the complex issues such proposals raise to be properly addressed?

    Certainly, planning should be made more accessible to business. But weakening local residents’ say on local planning is a retrograde step.

    So I don’t think the Planning Green Paper is the answer.

    Indeed maybe it addressed the wrong question. What it assumed was that the issue was about delays and the need to speed the system up for business. I suggest that the fundamental question is how to restore integrity in the system and hence people’s confidence in it.

    For too many people their first inkling of a major development locally comes when they see an application notice or an article in the local paper. Neighbours talk. A residents action group is set up and immediately the focus is on stopping the development. The system immediately becomes adversarial.

    How much better if there was more involvement of people up-front so that discussions on what was needed locally and how it could be provided took place before decisions on a particular proposal.

    But there is another aspect of development proposals which I think is too often overlooked and that is the quality of the buildings and their design.

    Sadly for a variety of reasons today there are not many local authorities who are able to say that they have within their planning departments people with the design skills needed to make proper judgements about these quality issues. Indeed for too many planning departments particularly in the south east it is very difficult to get enough staff, let alone staff who have the skills to assess the design quality of a proposal.

    And when you do get them they rarely have the time to look at such issues. Indeed too often planners are so stretched that the process is simply mechanistic.

    That doesn’t improve the quality of the built environment which is so important for the quality of life. There is a very real need to look at what is happening in our planning departments. The problem for local authorities with stretched budgets is that education and social services naturally take precedence over planning.

    We need to understand rather better the way in which good design and planning can impact on the quality of life. We need to give far more attention to developing buildings that reflect people’s way of life and the needs of the local community and of the wider environment.

    Allied to this is my concern that planning needs to take more account of the context of development. Planning decisions particularly on significant developments need to be able to be set into the context of wider infrastructure issues – not just roads but can the local infrastructure for example on schools cope with the impact.

    And I do believe in this context again that design is important. If the housing application for the edge of the rural village is for identikit boxes which bear no resemblance to the village architecture or show no respect for the environment then they are more likely to be rejected by local people and the developer is more likely to find an inquiry on his hands with all the delay, uncertainty and cost that entails.

    That is not to say that all design must mirror the style of the area into which it fits. After all rural villages generally show a diversity of types of housing and of design. They have evolved over the years and evolution of design is important. And uniformity within a development can also create problems. But if the development stuck on the end of the village that nobody wanted is also badly designed it adds fuel to local discontent which has an impact on those who live there and on how they fit into the local community.

    So taking time and care on design is important. It should always be so, but it is particularly important when the pressure on space and on greenfields and Green Belt is as great as it is today.

    Today we see Government continuing to push a centrally-driven housebuilding policy. We believe in home ownership and support the construction of more quality housing to buy and rent. But the issue is where they should be put and what sort of houses they should be.

    Building houses in the Green Belt and perpetuating the neglect of our inner-cities, just fuels migration to the suburbs, and in turn, encourages yet more demand-led greenfield development.

    The state of our cities matters. Over the years governments have introduced regeneration programmes but too often today local communities find themselves mired in the red tape of these programmes.

    Yet planning is a practical way that our inner-cities can be helped, if we take a more holistic approach and if we focus on the quality of the built environment.

    As the President and possibly others will know I am wont on occasions such as this to refer to Alice Coleman and her book Utopia on Trial.

    When I read Utopia on Trial it all seemed such common sense yet common sense that had been ignored by planners and architects alike. Buildings and spaces should be designed with people in mind and with an understanding of people’s need for identity in place and space. Designing buildings and spaces to give people greater safety both in reality and in perception is important. It can in itself help to provide the environment that improves quality of life not destroys it.

    And design needs to understand people’s sense of place and identity with place. Buildings and spaces over which no-one feels ownership and for which no-one feels responsible encourage the destruction of the environment and the reduction in the quality of life.

    I was interested to read an article in the Estates Gazette about a seminar run by the Estates Gazette and Grosvenor Estates last autumn during which Sir Terry Farrell referred to large scale urban development as “a game of chess where nobody says what moves they are going to make next”. These are the problems faced in this system – exacerbated by the lack of confidence in it. At the same seminar Hugh Bullock Director of Gerald Eve said “We are beginning to see the realisation that urban regeneration is about rebuilding local elements of society”. Again quality of life comes through as an issue.

    Urban regeneration is not only valuable in its own right and in terms of the quality of life for individuals in urban areas, but it its also important in redressing the balance of demand between urban and rural development. It takes pressure off greeenfields and that benefits urban areas and those who live in them as well as rural areas and those who live in them.

    We should be protecting our green spaces. New housing should be targeted at areas with the most brownfield land and towards areas most in need of regeneration, rather than blindly applying arbitrary, regional and national targets. There should be no binding national or regional housebuilding targets, forcing Green Belt to be replaced with urban sprawl.

    Instead, central government must concentrate on working with local government and local people to help create residential cities where people want to live. Urban renewal and environmental protection go hand and hand, and the reform of the planning process must recognise this.

    Urban renewal has another benefit of course and that is in terms of sustainability. Living close to the place of work reduces the number or length of journeys people make. It can reduce the reliance on the car, particularly if good urban transit systems are in place. So planning urban design and transport are part of the same jigsaw puzzle and those taking individual decisions need to know the whole picture before they can piece together the individual pieces.

    Sustainability is important in other ways too. I am pleased to have in my constituency a project of Integer homes that are designed for energy efficiency right down to the Alpine sedum growing on the rooves. They are a housing association project so they are designed as affordable housing for which affordability has been taken a stage further. Initial estimates suggest that they could reduce energy costs by 30-50%. I have to say there have been teething problems since the first residents moved in but then every new building has such problems.

    Of course we need to give them time to settle down and the proof of pudding has yet to come after people have been living in them for say a year. But if they do what they claim then I believe this and other developments like it will be another important example of the role design can play in providing for sustainability.

    Doing all this of course needs architects and planners and politicians who understand the issues and who are willing to move forward and be innovative.

    At the Estates Gazette seminar I referred to earlier John Gummer said what we need is a different approach and attitude from politicians. Planning should not be about gate-keeping but about enabling.

    I know Mr President the importance that the Royal Institute is now placing on requiring students to show the necessary skills to embrace the needs of sustainability within their work and I welcome that and support you in that work.

    The aim of all involved – planners architects and the politicians who are taking policy and individual decisions – should be planning and designing for people and planning and designing for the future.

    By setting policy and making decisions that recognise and meet the needs of people and the wider community, by understanding the role played by good design and the quality of the built environment in improving the quality of life then we can all be not gatekeepers but enablers.

  • David Davis – 2002 Speech to the Newspaper Society

    David Davis – 2002 Speech to the Newspaper Society

    The speech made by David Davis, the then Chair of the Conservative Party, in London on 21 February 2002.

    In a few weeks we will celebrate 5 years of New Labour in power. Even as we speak, glossy proofs of a Government 5-year Report will be lying on Alastair Campbell’s desk.

    Never were the ritual words “Check against Delivery” more appropriate.

    For nearly 5 years into government, what exactly have New Labour achieved?

    They’ve turned the constitution upside down – with a strategic sense that reminds me of Pooh Bear trying to work out how to open a honey jar.

    They’ve also kept the economy on a fairly even keel, largely by sticking to the 3-year economic plan laid down by the previous government – though I worry about the effects of the huge structural increases in taxation, spending and regulation now kicking in.

    And they have, of course, done what Tony Blair always said he wanted most of all – won two elections.

    On the other hand it is now clear that on the key issues that touch nearly 60 million real lives – health, transport, crime, schools, welfare reform – New Labour are utterly incapable of delivering the improvements they promised. New Labour will fail in the next four years – fail as a government, fail the “instruction to deliver” that was Tony Blair’s key message at the last election.

    They will fail for four reasons intrinsic to New Labour’s whole approach.

    Lack of philosophy and principle

    The first – and most serious – is that they lack any roots in philosophy or principle.

    The longer we live with it, the harder it becomes to understand what New Labour or Blairism actually amounts to.

    We have all followed their public search for the truth of political life. Cool Britannia – Third Way – communitarianism – stakeholder society.

    We have all watched a procession of gurus trekking into No.10 – from Will Hutton via Antony Giddens to the new wunderkind, John Birt, and his “blue-skies thinking”.

    Frankly, it is all pretty fragile stuff.

    In reality, the Third Way is a political posture – a rhetorical device – no more, no less. It is defined by what it is not, rather than by what it is.

    Unfortunately, the Third Way is sometimes the worst of choices – and certainly not always the best. Ask anyone who’s been fooled by the three-card trick.

    Obsession with perception management

    This lack of any serious philosophy gives free reign to the second fatal flaw in Blairism – an obsession with perception management. Of course, politicians down the ages have worried about what people think. It is inherent in democracy. Indeed, it is one reason I am here today.

    But this government is more obsessed with perceptions, with “spin”, than any in history.

    Politicians should worry about what the people think. What they should not do is allow that to override issues of real achievement, let alone allow management of perception to displace the proper running of government, as has happened all too often in recent years

    Let me give just one example. New Labour recognised that you get almost as big a headline for “Government spends £10 million” as you do for “Government spends £10 billion”.

    So they created literally hundreds of initiatives to “fix this” or “change that”. One offender was the Department of Education under David Blunkett. It unleashed an artillery barrage of paper on the staff rooms of England. As a result, it seriously undermined teacher morale, with little or no benefit to educational attainment.

    The gain for government was a weekly headline and a perception of action. The danger was that ministers confused activity with achievement, mere change with real progress.

    Many other sins, of course, arise from an obsession with perception:

    · the willingness to fiddle figures

    · deceitful management of news

    · pressurising of civil servants

    · twisting of policy priorities to win a headline

    · intoxication with propaganda to a point that corrupts the entire operation of the government machine.

    Most of these sins are more than obvious to this audience. So I need not say Jo Moore.

    Instead, I will move on to a third fatal vice of New Labour – related to its obsession with perception, and almost as pernicious. Its constant short-termism.

    Political short-termism

    Old and New Labour both often accuse business of short-termism. In fact, business is capable of being enormously long-sighted and creative, whether we look at the creation of canals and railways that underpinned the Industrial Revolution, or the huge electronic, telecoms and software infrastructure supporting the modern economy.

    No business is, in fact, as short-term as a politician under pressure. (I should know – after all, I was a minister in the last Conservative government).

    But this government is even more short-termist than most. It has raised inconsistency to art form. Its obsession with public perception makes it a slave to polls and focus groups and sends it flailing back and forth like seaweed in the turning tide.

    That is why Stephen Byers embraces the private sector, then turns on it 6 months later. Why Alan Milburn does exactly the opposite, at exactly the same time.

    Labour made short-termism a core political tactic. They adopted the words and imagery of New Labour to dissociate themselves from their own past. The success of the tactic is so deeply ingrained they cannot help repeating it endlessly even in Government. Thus:

    · The 2001 election was fought not on defending their record, but on an entirely new set of promises.

    · They launch 10-year plans for health, railways, or crime, but we never find ourselves even 4 or 5 years into a 10-year plan – long before then the plan has been superseded by another one, with a new flourish and no acknowledgement of its predecessor.

    · Exactly the same happens to ministers. David Blunkett positions himself as a new broom, a fresh start, by repudiating his predecessor Jack Straw. Stephen Byers does the same in transport contrasting himself with John Prescott. Patricia Hewitt elaborately distances herself from the record of Stephen Byers at DTI.

    Every year is year zero – so no recognition of failure, no responsibility, no accountability.

    Philosophical incoherence and weak comprehension of policies

    This cocktail of philosophical incoherence and short-term expediency explains Labour’s total failure on the central planks of the public service policies on which they were elected.

    It is why they promised welfare reform, but have brought more and more people into benefits than ever before.

    Why they pledged to solve public transport, but have presided over five years of dither, bickering, inactivity and decay.

    In fact, all too often, when they attempt a new policy, they appear not to understand what they are doing. Their aims are confused; the outcomes are often perverse.

    Take the Private Finance Initiative, or Public Private Partnerships, to use the New Labour alias.

    At its best it can introduce private sector levels of innovation to public services, delivering a lot more public service bang for the taxpayer’s buck.

    But it is not easy to manage. Delivering the benefits of PFI requires clarity of thought, firmness of purpose and adherence to principle.

    It means giving consumers a choice so they can force providers to deliver. It means allowing providers the freedom to manage so they can innovate and improve. It requires transparency so that producers and consumers can make informed choices. And it demands a level of trust between government, the customer and the provider that contracts will be honoured.

    Time and again, Labour’s actions have flown in the face of these principles.

    The Railtrack fiasco shows just how little trust now exists between the private sector and this Government. By abolishing GP fundholding and dismantling GM schools, Labour have shown just what they think of consumer choice.

    Their co-dependent relationship with the unions means they cannot give public service managers the freedom to actually manage.

    And the idea of freely available information about public sector performance flies in the face of Labour’s obsession with media management. Again I will say Jo Moore.

    When it comes to delivering the real benefits of PFI, Labour fail on every count. What we are left with is a piece of creative accounting. Public services on the never-never. Expensive. Low performance. But politically convenient.

    Nowhere is this confusion and incoherence more evident than in the mind of the Prime Minister. First, he claims public sector unions have left scars on his back by opposing his reforms. Then he tells them they are heroes. 10 days later he briefs they are to be counted among the “wreckers”. 24 hours after that, they are given an apology by his political secretary.

    There is no long-term political compass at work here. It is small wonder we have watched for five years as Labour groped in the dark for a Tube policy while the service has slid from poor, to inadequate, to intolerable. But not to worry. Instead of a 10-year plan, we now have a 30-year plan for its revival. Somehow, I do not think that Mr Byers will be here to see its completion.

    The centralising mentality

    Throughout all the twists and turns, the advances and retreats, only one thing about Labour remains constant. Tony Blair may have taken Clause IV out of the Constitution of the Labour Party, but he has been unable to erase it from their hearts, minds and instincts.

    Time and again Ministers attack problems with a big government, command-economy, centre-knows-best outlook. So we have avalanches of initiatives, the most complex tax rules ever; and more regulations per year than ever before in British history.

    But human behaviour will always frustrate the planners’ best intentions.

    The Government demands that waiting lists be cut. So in the NHS easy operations are done before the urgent, the expedient before the important.

    The Government sets targets for MMR jabs. So some GPs faced with concerned parents move their children off their lists altogether.

    This top-down approach to reform fails to solve the existing problems and creates a raft of new ones. And all the time faith in public services falls further.

    The tyranny of targets is achieving precisely the opposite to that which the Government intended, which is why public services are going backwards.

    In Opposition they spent all their time deciding how to get back into power, how to stay in power, but not what to do once they were in power.

    So a government of control freaks now find themselves, to paraphrase Norman Lamont, in power but not in control. Not in control of events; not in control of the government machine; not in control of public service delivery.

    And as the years pass, their undoubted control of the government spin machine looks more and more like a desperate attempt to paper over the cracks.

    The task of the Conservative Party is to get to grips with this underlying failure to govern and to end the climate of media manipulation that has become a substitute for real achievement.

    Serious questions now have to be asked about the health of our political culture. Our civil service has been compromised. Our public servants are being drawn day-by-day into a culture of deceit.

    The standards of public administration in this country – long the envy of the world – are being undermined and with them our public’s faith in the democratic process.

    We need to take some urgent and radical steps to restore the impartiality of the civil service and to shore-up the integrity of our political system.

    We have already come up with a number of proposals to strengthen both Houses of Parliament, but we need to go further.

    We need to slim down the swelling apparat of advisers, spin doctors, envoys and czars – and subject them to scrutiny by Parliament. And I am becoming convinced we need a new Civil Service Act to lay down ground rules for political appointees in government, set out the rights and duties of civil servants, and introduce safeguards against coercion.

    The government has promised such an Act. But we have been here before, with Freedom of Information Bill, campaigned for in ’97, castrated in 2000, the sorry remains to be delivered in 2005.

    For a Civil Services Act to work, and stop dead the new corruption at the core of our constitution, it must at very least do 3 things.

    First is must take control and arbitration of the Ministerial code of conduct away from the Prime Minister, and put it under the control of a Parliamentary tribunal consisting solely of senior Privy Councillors, and on which no political Party has a majority. Whether a Minister has transgressed will then be decided without concern for the convenience of the government of the day.

    Secondly, the code of conduct of special advisers should be tightened up, and also put under the supervision of the tribunal. I am afraid that the civilised, gentlemanly methods of the Civil Service have not proved up to the job of policing the behaviour of this new tribe of special advisers, and it is time they came under control.

    Thirdly, we do not believe that political appointees should be able to command independent civil servants. That never used to be the case, but this government, on the day it took office, excepted themselves from this long-standing rule, giving these powers to Alastair Campbell and Jonathan Powell. Too many of the problems we have witnessed in the last few weeks, months and years, too much of the institutionalised influence peddling, have their origins in this original pernicious action. No government should be allowed to do it again.

    When I hear the Prime Minister now plans to change the role of the Cabinet Secretary, hitherto the bulwark of civil service independence, but increasingly now pressurised and squeezed, I think the need for such an Act is more urgent. We will not restore confidence in our political process unless we also restore confidence in the way political power is exercised.

    Governments in office may find accountability inconvenient. But accountability is a proper test of their policies and their actions. This government has failed the test. The next Conservative government will not – we will start as we mean to go on, by acting upon our commitment to a new kind of politics.

  • David Willetts – 2002 Speech to Conservative Future

    David Willetts – 2002 Speech to Conservative Future

    The speech made by David Willetts, the then Shadow Secretary of State for Work and Pensions, at the Conservative Future conference on 27 February 2002.

    Tomorrow I go to Birmingham for the first of our One Nation Hearings. Throughout the year Iain Duncan Smith, myself and other colleagues will be visiting some of Britain’s most hard-pressed communities. Our purpose is not to give a lecture on how people should behave but instead to listen to the experiences of our poorest fellow citizens. We will also meet the teachers, social workers, the faith-based groups and the local volunteers who are dedicated to helping these communities. We will listen and we will learn. We will be honest about the limits of what government can do but we will also see at first hand what works and what doesn’t so that our policies can be more effective.

    I will visit some of the poorest parts of Birmingham to see how people are being helped to overcome problems such as indebtedness, homelessness, drug addiction and family breakdown. My time in Birmingham will conclude with a meeting with professionals to learn from their experience of serving hard-pressed communities. It is just the first of a series of visits.

    Over the course of the coming year the Hearings will cover urban areas – both inner-city and much neglected out-of-town housing estates. We will also be visiting rural communities where the reality of poverty is different but often as deep. We will be going to all parts of Britain. The second Hearing will take place in Kent where the Conservative County Council is pioneering a strategy to reduce welfare dependency by intervening early and by strengthening civil society. The process will culminate in November at a special Hearing with Iain Duncan Smith.

    This exercise will get us back in touch with parts of our country which fear that politicians in general and we in the Conservative party in particular have forgotten about them. And they might have forgotten about us as well. After all, political relationships have to work both ways.

    The exercise will also get us back in touch with the finest traditions of our own party. We are calling this project One Nation Hearings as a reminder of the One Nation tradition in Conservatism. That expression goes back to a powerful, passage in Disraeli’s novel ‘Sybil’. It is worth reminding ourselves what he said. He describes:

    “‘Two nations between whom there is no intercourse and no sympathy; who are as ignorant of each other’s habits, thoughts, and feelings, as if they were dwellers in different zones, or inhabitants of different planets; who are formed by a different breeding, are fed by different food, are ordered by different manners, and are not governed by the same laws.’ ‘You speak of -‘ said Egremont, hesitatingly. ‘THE RICH AND THE POOR.’”

    That passage can still send a frisson of emotion through us today. It reminds us that throughout our history Conservatives have tried to tackle what used to be called the Condition of England question though it applies equally across the whole of the United Kingdom. We may have been the party of property, but we recognised the obligations to the community that property brought with it. We are the party of the free market but we understand that a free market does not operate in a vacuum. It is rooted in a society and that brings with it obligations to our fellow citizens which we must honour.

    At Lord Hailsham’s memorial service the other week I was reminded of his observation that economic liberalism is “very nearly true”. Free market economics may be valid but there is more to life – and to politics – than economics. Because Britain’s problems in the 1980s were above all economic, we shone an intense searchlight beam of economic analysis on them. We appeared to become the economics party. But economics, like patriotism, is not enough.

    Nowhere can we see this more clearly then when we reflect on poverty. It is in a way as starkly materialistic a question as you face in modern politics. When Governments set rates for benefits they are deciding how much our poorest citizens should live on. But it is no good just trying to tackle poverty in this way. It has to be part of a much wider debate about deprivation and social decay, family breakdown and the abuse of drugs and alcohol.

    Back in 1999, Tony Blair said: “Our historic aim will be for ours to be the first generation to end child poverty, and it will take a generation. It is a twenty year mission but I believe it can be done.” Since then the experts have warned, in the words of the Rowntree Foundation, that “The latest available data on the number of children and people living in poor households reveals little change, confirming the slow start for the Government’s policy commitment to eradicate child poverty within a generation”. But however admirable Tony Blair’s aim, there is another problem as well. His measure of success is exclusively a financial one. Eliminating poverty is defined by ministers as no children in families with less than 60% of median income. They appear to believe they will eliminate poverty with extra spending on welfare benefits. Of course, money is important. But all the evidence from all the post-war attempts at eliminating poverty by expanding benefits is that it can’t be done that way. And what if a family that does receive this extra money is unable to let their children out to play because there are used syringes on the stairwell outside their flat? And what if their children are unable to learn because of an endlessly changing cast of supply teachers at the local school? Isn’t that poverty too?

    This evening I am going to look at each of these issues – the financial and the social – in turn. Then we might also see some common themes between the two ways of thinking about poverty.

    It is easy to understand why we start by thinking of poverty in terms of incomes and benefits. There are millions of people in this country who are struggling to make ends meet on incomes that you or I would struggle to manage on. They face a relentless battle to get hold of what most people regard as life’s essentials. The figures are stark. 14 million people live on less than £151 a week or £7,850 a year.

    In the past we Conservatives got ourselves into the situation where we appeared to deny there was a problem. Well, there is a problem. There are millions of people in our country who are in need. They are our fellow citizens. We do have an obligation to our fellow citizens at times when their incomes are low. We should not begrudge people the help that they need then. The old ways of discharging that obligation through the traditional welfare state may have failed but that does not extinguish the obligation; it adds to it. Our further obligation is to think afresh about how we can help our fellow citizens. That must include tackling welfare reform, which Labour promised to do so emphatically but where they have sadly recorded one of their most conspicuous failures.

    The more than £100 billion a year, we spend on social security benefits is a very powerful intervention in the lives of millions of people. It affects their behaviour and their values. It can do good, not least in the simple and most obvious form of providing people with money when they otherwise wouldn’t have any. But it also has the potential to do harm. And one of the most pernicious ways in which it can do this is by trapping more and more families on means tests. There are now millions of British families who know that if they work a bit harder or save a bit more they will be barely better off. They feel the system is making fools of them.

    Labour ministers used to be clear about means-tests. In 1993 Gordon Brown said, ‘I want to achieve what in 50 years of the welfare state has never been achieved. The end of the means test for our elderly people’. But since Labour came to office means-testing has increased inexorably.

    When we entered office in 1979, 57 per cent of pensioners were on some form of means-tested benefit. By 1995, this had fallen to 38 per cent. This figure is now rising again. In fact, according to the House of Commons Library, once the Pension Credit has been introduced in 2003, we will be back to around 57 per cent of pensioners on means-tests. Eighteen years of progress will have been reversed in just six years.

    We are also seeing a big increase in the number of non-pensioners in receipt of means-tested benefits. According to the House of Commons Library, 38 per cent of all households will be on means-tests by next year.

    As means-testing becomes more common, the problems inherent within means-tests become more widespread. For example, take-up of all the main means-tested benefits is on the decline. This is precisely what the Prime Minister predicted when he admitted in 1998 that ‘there are problems if you move to too much means-testing, as you can see with pensioners who do not take up Income Support’.

    Gordon Brown has decided deliberately and consciously to go for means-tests that taper out very gradually and go further up the income scale than ever before. This has two consequences, which fatally undermine his war on poverty.

    First, you spend a lot of money on these more extensive means-tested benefits because you are paying them out to people on middle incomes who were not previously within the system. That means you increase spending on benefits by billions of pounds without getting much more money to the poorest people. That is why Gordon Brown has increased spending on benefits and credits by so much and yet has had such little impact on poverty.

    Secondly, means tests have corrosive effects on behaviour about which Frank Field has warned so eloquently. If you save a little, or study to get that extra vocational qualification, or work some extra overtime, you are barely better off. This is debilitating for precisely the people and communities we most want to help. It is exactly the wrong message. There must be a better way. And in our One Nation Hearings I want to explore what that might be.

    One person we can learn from is Beveridge. It was his great insight that you could target help on people who need it without means-testing if you define categories of benefit recipients carefully enough. Nowadays we tend to assume means-testing and targeting are synonymous. But they aren’t. Means-testing is just one way to target help. There are other ways. Another way to target help is by age.

    We know that poorer families tend to be families with young children. That is when a parent, usually the mother, may still withdraw from the workforce for at least a few years. The arrival of the first child in particular can be a real burden for the family finances, as they suddenly move from double income, no kids to one income and three mouths to feed.

    The same argument applies at the other end of the age scale. We know that older pensioners tend to be poorer. That extra 25 pence on the pension which you get when you reach the age of eighty causes great anger to pensioners because it is so small. But it is the last vestigial remnant in the system of recognition that older pensioners tend to have lower incomes and also higher expenses.

    One of the ideas which I want to explore in the Hearings is whether there is scope for targeting help on younger families and older pensioners as a way of tackling poverty without such heavy reliance on means-testing.

    It is easy to imagine Gordon Brown and Ed Balls poring over their computer screens in the Treasury as they fine-tune ever more intricate adjustments to the incomes of millions of people. In the end we all become like toys for them to play with as they fix our incomes down to the last penny. But the problem of Britain’s tax and benefit system is not that we lack enough tax and benefit instruments to fine-tune the income distribution. Our problem is the opposite. Our problem is that our poorest fellow citizens are trapped in a system that is so complicated that many of them do not get the benefits to which they are entitled. How can Gordon Brown expect a family to master the difference between the Working Families Tax Credit, the Childcare Tax Credit, the Children’s Tax Credit, the Baby Tax Credit, the Child Tax Credit, and the Working Tax Credit? And it’s not just complicated, it’s humiliating too. No wonder his tax credits have such a low level of take-up.

    That is why welfare reform is so important. But it is not enough on its own. Beveridge spoke very powerfully of the giants to be slain in his famous report of 1942: ‘Want is only one of five giants on the road to reconstruction … the others are Disease, Ignorance, Squalor and Idleness’. That powerful list, with what must have been its deliberate echo of Bunyan’s Pilgrim’s Progress, reminds us that social security cannot be tackled on its own as some technocratic subject. It has to be part of a wider social vision.

    One simple but little known fact about all these means-tested benefits shows vividly how they shape and are shaped by wider changes in society. The main recipients of these benefits are women. Female recipients of Income Support, the main means-tested benefit, outnumber men by two to one (2.7 million females and 1.3 million males). Poor pensioners are predominantly elderly widows living on their own. Poor families are disproportionately headed by lone parents. Lone parents in low paid jobs make up more than half of all recipients of the Working Families Tax Credit. Poverty in this country above all afflicts women and children.

    This must be related to massive changes in the family. In the past one of the many functions of marriage and the family was to transfer income from working men to non-working women. Take away the man and his income – either by death, or divorce or unemployment or abandonment – and many women find themselves in poverty. As the family has proved less able to support women and children so the tax and benefit system has nationalised some of these functions. Earners sustain non-earners via taxes and benefits instead of through a personal relationship. And in our poorest areas the two parent family has proved particularly fragile. This is not because people are bad. In fact, I applaud lone parents who are doing their best to bring up their children after the father has walked out on them. But we can’t be serious about the causes of poverty and how we tackle them unless we think about the family as well. It is difficult to envisage the renewal of our poorest communities without a strengthening of the family.

    The problem of poverty is increasingly a geographical one. That is why we have to think about communities and neighbourhoods too. Poor people often live in poor areas. It is no good simply handing over benefit payments if an area remains a breeding ground for poverty and decay. But equally there is no point spending lots of money on physical improvements to an area, including investing in new housing, if it doesn’t help the people who live there. Indeed there has been some very challenging research showing that sometimes urban renewal projects leave poor people worse off than they were before with higher bills for public services and in the shops as well. The challenge therefore is to help both poor people and poor areas. That is why successive governments have launched area-based initiatives. They have expanded enormously under this government. Here is a list of all the area-based initiatives which are in operation at present:

    · Action Teams for Jobs.
    · Active Community Programme
    · Children’s Fund.
    · Coalfields
    · Community Champions
    · Community Chest
    · Community Empowerment Fund
    · Community Legal Service Partnerships
    · Creative Partnerships
    · Crime Reduction Programme
    · Early Excellence Centres
    · European Regional Development Fund
    · Excellence in Cities.
    · Health Action Zones
    · Healthy Living Centres
    · Healthy Schools Programme
    · Neighbourhood Management
    · Neighbourhood Renewal Fund
    · Neighbourhood Support Fund
    · Neighbourhood Wardens
    · New Deal for Communities
    · Playing Fields and Community Green
    · Single Regeneration Budget
    · Spaces for Sport and Arts
    · Sports Action Zones
    · Sure Start
    · Sure Start Plus
    · Urban Regeneration Companies

    That adds up to thirty different area-based initiatives. What is your reaction to that extraordinary list? One response, which I am sure many people feel, is that at least Labour are trying. These schemes might not all work but at least some will some of the time. The commentators probably feel that at least this list shows Labour’s heart is in the right place.

    But now instead of responding to that list as an observer, imagine instead that you are a resident in one of our most deprived areas. Imagine that you are a lone parent in a run down estate who wants to set up a group for under fives, or you are a shop keeper fed up with vandalism and harassment who wants to know how to get CCTV installed. Then the sheer multiplicity of these schemes itself becomes yet another barrier. You don’t feel that this is a great example of innovative social policy. Instead as someone who has to navigate their way through them, it seems more like an obstacle course.

    You may think that I am exaggerating the size of the problem. After all, not every scheme applies in every part of the country, so in practice you can’t apply for every scheme – another source of confusion and unfairness incidentally. But I have asked the House of Commons library to calculate how many of these schemes apply in our most deprived wards. Here is their list of the number of schemes in our ten most deprived areas:

    Our poorest communities, which are desperately short of people to help them, have to sustain this elaborate structure of special projects. Are 21 separate initiatives the best way to help Tower Hamlets?

    Even the government knows that it has got a problem and that the growth of these area-based initiatives is out of hand. Let me quote Peter Mandelson in 1997 when he was a Cabinet Office Minister: “There is a proliferation of programmes with insufficient collaboration between the different agencies involved at national, local, and area level. As a result we are spending vast sums of money, often over and over again on the same people through different programmes, without improving their ability to participate in the economy and society.”

    He recognised that the splurge of activity in different departments after Labour won in 1997 needed to be co-ordinated. They set up the Social Exclusion Unit therefore. It was supposed to carry out a cull of these schemes and ensure that they were better focused. Two years later on there was another enquiry into the problem of area-based initiatives. The Performance and Innovation Unit reported in February 2000 as follows: “the clear evidence from those on the ground and from the PIU’s own analysis is that there are too many Government iniatives, causing confusion; not enough co-ordination; and too much time spent on negotiating the system, rather than delivering. … Area-based initiatives … have created a very substantial bureaucratic burden for those on the ground.”

    Then late last year, one of Peter Mandelson’s successors in the Cabinet Office, Barbara Roche, gave a speech in which she said: “Area-based initiatives are often necessary and can make a real impact. They allow for the introduction of new ideas and for deep-seated problems to be tackled. Yet they seldom represent a long-term solution. Too often a lack of integration between Departments has contributed to fragmentation and separation of initiatives.” More than four years on, this was precisely the problem that Mandelson had identified.

    The response is typical of New Labour. We get another unit – a new Regional Coordination Unit inside the Cabinet Office. But they keep the old unit, the Social Exclusion Unit, as well. Schemes multiply, reports on the multiplicity of schemes multiply, units to tackle the multiplicity of schemes multiply, and meanwhile the problems multiply as well.

    That is not the end of it. Much of this money is allocated by a process of competitive bidding. This is an imaginative idea but it is now out of control. All around the country decent people who want to be running youth clubs or caring for elderly people are instead putting all their time and energy into filling out pages and pages of forms to bid for penny packets of money under some special scheme. Our hard-pressed communities are often desperately short of dedicated people, volunteers or professionals, who will give their time and effort. The last thing they need is such an enormous diversion of their energies into this extraordinary time-consuming and dispiriting process.

    The other day I met someone whose job epitomises Labour’s style of government. No, he was not a spin doctor. But I think his job captures the spirit of Labour just as well. He was a bid writer. Day in, day out, his job was to write bids for money from special government schemes. Many local authorities have special units whose sole job is to bid for money under these schemes. The larger charities employ bid writers too. And a head teacher recently told me that if he bid for money under every Department of Education scheme, he could expect a 50% success rate. He would then spend the money in exactly the way he would have spent it had it been allocated as core funding. But putting in all the bids was taking up half of his time as head teacher.

    I asked the bid writer what his success rate was and he described it just like a professional gambler in Las Vegas. He said he had some good runs when a lot of his bids got through but then he went through a bad patch when he was off form and sometimes did not succeed in a bid for weeks. He said the secret of winning was to discover the key words that the people administering the bids wanted to hear. And how did you discover the key words? You went to lots of meetings. Once you got yourself in the network and were at meetings and seminars with the officials and consultants running the schemes you knew the right buzz words. But there is no link whatsoever between the likelihood of getting to the right meetings and actually having a good project for hard-pressed areas. The schemes that succeed are well-advised and well-connected. That means the larger agencies who can put in the time and effort to learning the rules of the game. The whole system is systematically biased against the small and the local, the innovative and the voluntary.

    There has got to be a better way. During our One Nation Hearings we will be asking people from our most deprived areas how we can construct a system that works for them better. One of the most exciting developments in social policy over the past few years has been the idea of social entrepreneurs. People with the skills of the entrepreneur – above all, inventiveness and vigour – turn them to tackling social problems. The Bromley-by-Bow Centre is at the heart of this movement. It is at the heart of the battle against the bureaucratisation of not just public services but the voluntary sector as well. That is a battle they are fighting on behalf of everyone who cares about decent services for people in our deprived areas.

    Earlier this month, during a visit to Glasgow, Iain Duncan Smith observed the work of a successful community project serving one of the poorest urban communities in Europe. The project operates out of previously hard-to-let council flats that had become heavily associated with drug abuse and crime. Local people reclaimed the flats and now operate youth, literacy and family support services from them.

    Let me give you now an indication of how I think we should set about reforming this extraordinary apparatus. The central principle must surely be that we fund institutions and professions not schemes and consultants. What happens now is that a shifting kaleidoscope of consultants appear in a deprived area in order to advise on schemes, and then when the money comes in it has to be doled out on very restrictive terms for special projects. But meanwhile the core funding for the most important public services in the area, health or education or police, does not grow much at all. And in order to get more money all these public services have to start playing the bidding game as well.

    The problem with all this is not just the waste of effort and the humiliating games that people have to play in order to get money. There is something else that gets to the heart of the problems in our most deprived communities. There have been so many schemes over the years, under successive governments, that many people in our deprived areas have become deeply cynical about all of them. They have seen consultants come and go. They have seen schemes come and go. They will extract some money from them if they can but they do not take any of them very seriously. What they respect and value is people who stick with them.

    We have got a very deprived council estate in my constituency, Leigh Park. Looking back on my ten years as the MP for Havant I am struck by how many changes there have been in the employers, the senior police officers, the health managers, the social services staff, the people running the social housing in our area. They all individually are behaving in a perfectly understandable way as their careers develop and they move on and move up. But what the community really needs is stability. What they really value is the teacher or head teacher who has not gone on a promotion to a new job but is staying with them year on year. They value the local policeman who has been out on the beat so long that he has real local knowledge. One of the strengths of our GPs is how many of them, once they become partners in a practice, will stay in an area for years.

    Even the teachers, the doctors and the police officers drive home in an evening away from the estate. Again I do not blame them for it. The strains and stresses of their jobs are so intense that they would get completely burnt out if they were there day and night. But that is why I have come to value particularly the quite extraordinary service to our deprived communities from the clergy. They do still live amongst their flock. They are often the only professionals who live day and night on our tough estates. The enduring presence of our Methodist, Catholic and Anglican priests in our most deprived areas is real Christian witness and something of which our churches can be proud. Many of Britain’s other faith communities demonstrate a similar level of commitment. They intuitively grasp something very important which has passed the Government by. Instead of innovation, change and instability our most deprived areas need constancy, commitment and stability.

    Now we are in a position to see the links between social security and financial policies to tackle poverty and the wider social issues as well. What we can see is that they both suffer from exactly the same problem of relentless experimentation on the very people and communities who are least able to sustain the pressures. How has this happened?

    I don’t want to question the motives of Labour ministers. Many of them are personally committed to attacking poverty. It is what many of them claim brought them into politics and I have no reason to doubt them. But I have to say that New Labour’s preoccupation with the media has deeply damaged their approach to poverty. The needs of the poor people in our deprived communities are exactly the opposite of the needs of media management. And it is the media agenda which wins. Ministers feed the media with new schemes and new announcements and new initiatives. Their obsession with the media is indeed the cancer at the heart of the Labour project. It is the stuff of tragedy – the behaviour they learnt in order to gain office is itself the biggest obstacle to a successful policy for tackling poverty once they are in office. What we must offer with the steady integrity of Iain Duncan Smith is to bring straightforward honesty into politics.

    The renewal of our approach to poverty is not just essential for people living in our most hard-pressed areas. It is also crucial to the renewal of Conservatism itself. It forces us to think afresh about how our principles can be made relevant to our poorest fellow citizens.

    They have been let down by the state. Indeed one of the most striking features of these areas is that they are highly dependent on the public sector for both money and services. It was an opportunity for the public sector to show what it could do. But the reality is that it has been a sad disappointment. I do not believe that ever more public sector involvement is the right solution. But we cannot leave people to sink or swim. Rolling back the state does not of itself solve an area’s problems.

    The Chief Rabbi has challenged us to break out of the stale market versus state arguments and think more freely: ‘The Right may blame the State. The Left may blame the market. But neither diagnosis is correct. The road we have begun to travel, of economic affluence and spiritual poverty, of ever more powerful states and markets and ever weaker families and communities, cannot but end in tragedy.’

    The fact is that the old policy levers are not enough. Hundreds of thousands of people living in hard-pressed communities are not being touched by rising stock markets, government initiatives and technological innovations. They lack the basic skills and confidence to take the opportunities presented by our times. They need a deeper more personal care that cannot be provided by the market or the state.

    The way ahead must surely be the revival of all those people-sized institutions which stand between the individual and the state. These are the institutions that provide people with personal care and challenge. They help all of us meet life’s greatest challenges. They provide us with our identity and a sense of belonging. We want to see stronger local communities and networks of neighbourliness. That is what society is all about. We have been busy preaching the virtues of civil society to the old Soviet Bloc whilst at the same time our own civil society has been enfeebled. It has suffered from twin attacks from an intrusive state and the remorseless spread of commercial values into every corner of life.

    I have long believed that the future for our party is as the party which stands for not just the individual on his or her own but the individual in voluntary association with others. Individuals need not just work together through the state or through a commercial enterprise. They can also do so through all the rich variety of civic institutions which have historically been one of the most distinctive features of our country. I called this Civic Conservatism. Oliver Letwin in his fine speech recently gave it the rather better name of the neighbourly society. That must be the way ahead for our party. It is the way ahead for our most hard-pressed neighbourhoods. It is the way ahead for our poorest and most vulnerable fellow citizens. It is the way ahead for our country.

  • David Davis – 2002 Speech at the Conservative Local Government Conference

    David Davis – 2002 Speech at the Conservative Local Government Conference

    The speech made by David Davis, the then Conservative Party chair, in Watford on 28 February 2002.

    Chairman, ladies and gentlemen, I am delighted to be here with you today at the beginning of the conference. A conference at which we have the opportunity to express our belief in the importance of local government, and to learn how we can build on the progress which we have made in local elections since our 1997 election defeat.

    In 1997, the Conservative Party was the third party in local government. By the end of the last Parliament we had made significant strides and gained 2,500 Councillors. We are now the second party in local government.

    It must now be our aim to restore our standing as the first party of local government by the end of this Parliament, and to become, once again, the natural party of local government.

    These elections will be the largest set of local elections since 1999. As such, they represent a major chance to continue our recovery. Not only will that ensure that more people benefit from Conservative local government, it will strengthen our organisation around the country and weaken the Labour and Liberal Democrat organisations. We know to our cost from our experience in the mid-1990s what damage the loss of experienced local councillors does to this Party’s organisation.

    As such, I could not be talking to a more important group of people. In those parts of the country that have few, or in some cases no, Conservative MPs, the people in this room and your colleagues who could not be here today are the only public face of the Conservative Party.

    As Chairman of the Party, I will ensure that you receive the support which you require from Central Office. We will ensure that you receive first class campaigning advice and that when the Party launches a national campaign you have the material you need to play a leading role in that campaign in your area. We are now in the era of joined-up campaigning.

    For example, we have talked to councillors and produced a crime campaign to highlight the Government’s dreadful record on crime – a campaign with leaflets, petitions and back-up material which you can order from Central Office.

    We will also be mobilising the entire Party to highlight Britain’s Crime Crisis on our April 20th Action Day.

    And, for those of you fighting the Liberal Democrats, there will be support from the new Liberal Democrat Campaign Unit I have set up at Central Office headed by Angela Browning.

    This Unit will work with you to ensure that you have the ammunition to deliver our message on the ground consistently, and with the intensity required to match and surpass the efforts of the Liberal Democrats. To make it clear that it is the Conservative Party which is aware of the issues that matter to people, and that it will work tirelessly to address them.

    The Unit will be visiting constituencies in the near future to discuss the needs of Associations. From these discussions, an action plan particular to each constituency will be formulated which will set out a timetable of campaigning work.

    Central Office will not then leave you on your own. It will work with you every step of the way, and provide support for the long-term effort which will be required. For it will not be easy.

    Related to our campaigning against the Liberal Democrats is the question of entering into coalition with them.

    I realise that sometimes you are faced with difficult decisions. Perhaps Labour have been running a particular council for years and services have reached rock bottom.

    As soon as Labour lose overall control it may be tempting to do a deal with the Liberal Democrats. When we are asked about the wisdom of doing so, we have in the past always advised against.

    We will be monitoring the election results in those areas where we have gone into coalition with one of our political opponents or tried to run a minority administration without the votes to pass our budget to see how they compare with results in other areas. By doing so, we will be able to provide an informed opinion about the reality and consequences of such coalitions.

    For we must never forget what the Liberal Democrats are really like. In Sheffield they licensed a Thai message parlour on the condition that it installed disabled access. This is a Party whose International Development spokeswoman sent out a press release claiming she was opening a hospice that had yet to be built.

    Their capacity for dishonesty is unparalleled, their habits of deceit are unbelievable, a party whose untrustworthiness is surpassed only by their hypocrisy. And, whilst they are invariably the first to claim credit for popular policies, it is a rare day when they actually do any real work for their constituents. They should be approached with extreme caution.

    So I will report back to you on our analysis of these results, so that you can make well-informed decisions about how to deal with these difficult situations.

    I am determined, then, to strengthen the relationship between the national party and our councillors, a relationship based on openness and mutual respect.

    And we are determined to practice what we preach. During this Conference you will hear from Theresa May and Iain Duncan Smith about how we intend to put councils and councillors in the driving seat of our public service reforms.

    You are the people closest to the communities you serve. You understand better than anyone what needs to be done to make life better for your residents. I can make you this promise. As we develop new policies on crime, health and education in the months and years ahead, we will be looking for ways to make that local experience count.

    With your help we can revive local government in this country and turn our councils into laboratories of democracy that will improve public services in this country. In the process we will redefine the relationship between local and national politics.

    During this Conference, you will be hearing more about the improved service Central Office will be offering, and from a number of Shadow Cabinet members. I would like to spend the rest of my speech talking about the key local elections that will take place in two months time.

    We should not underestimate the importance of extending the benefits of Conservative local government to more and more people. The evidence from the Audit Commission’s performance indicators show that Conservative councils deliver better quality public services while still charging lower council taxes.

    Labour and Liberal Democrat councils have the highest council taxes in England. Thirteen of the councils with the top twenty highest council taxes in England are Labour-controlled. None are Conservative.

    In contrast to the record of Conservative administrations, both Labour and Liberal Democrat controlled councils betray a wasteful and disdainful attitude which is far from the image they try to present.

    Like Labour-controlled Norwich City Council which decided to chop down a series of horse chestnut trees on the grounds that conkers could pose a hazard to children, despite the fact that the trees had been there for years.

    Like Labour-controlled Doncaster Council which sent its maintenance workers on half-day courses to teach them how to change a light bulb. The council also spent £5,000 to teach its workers how to climb ladders.

    Like Labour/Liberal Democrat-controlled Gloucestershire, whose Liberal Democrat Group Leader said that answering a question about the cost of refurbishing the County Council Cabinet Office would not be a good use of officers’ time.

    Like Labour-controlled Birmingham, which spent £85,000 on 193 trips abroad by councillors and officials in a single year, despite a supposed clamp down on globe-trotting.

    Though these examples may appear to be trivial, they betray the mind-set which leads to incompetence, and failure to deliver essential services to local communities.

    Such as the councils in Islington and Haringey. Both received damning OFSTED reports. In the case of Islington, the council lost control of school services, which were contracted out.

    The Government’s consultants, Capita, described Haringey’s education department as “dysfunctional”. As a result, Haringey was stripped of its core education services.

    It is little wonder that Labour have spent their five years in office centralising power at every turn.

    When they look at their record in local government they know they can’t trust their own Party in the dark.

    They were elected promising to combine the honesty of John Prescott with the subtlety of Peter Mandelson. Instead they have combined the subtlety of John Prescott with the honesty of Stephen Byers.

    Yesterday Labour announced they were dropping three major bills in Parliament on reforming the House of Lords, overhauling the criminal justice system and extraditing terrorist suspects. Why? So they could make way for a bill banning foxhunting.

    And why did they do that? To reward the left of their party for giving unanswering and unthinking support to Stephen Byers this week – despite the chaos in his Department, despite the lies, despite the bullying of civil servants, despite the pattern of disgraceful behaviour that did nothing to promote better transport, but did anything to promote the narrow interests of New Labour.

    It tells you everything you need to know about this Government. At the first sign of trouble, the unspeakable seeks to outlaw the pursuit of the inedible. Tony Blair practices politics without probity and power without priorities.

    It is his failure to deliver, his record of rising crime and failing transport, of increased council taxes and declining services that we will be running against in May.

    May’s elections are also the first nationwide electoral test for the Party since the General Election – a chance to put our General Election defeat behind us and start us on the road to victory at the next Election.

    They are not a battleground that we would have chosen – many of the seats up for election are in London, one of the few parts of the country where we did worse in 2001 than we did in 1997. Even outside London, the elections are largely being fought in Labour territory – the metropolitan areas around Birmingham, Leeds, Liverpool, Manchester, Newcastle and Sheffield. Nevertheless we are determined to do well.

    The media will judge our performance against three criteria – our share of the vote, the number of seats we win and the number of councils we win.

    Our strategy therefore has four key elements.

    First: to maximise our share of the vote by contesting as many seats as possible. In the equivalent set of elections four years ago, the Conservative Party fielded candidates for just over 93 per cent of the seats. Labour fielded candidates for just over 97 per cent and the Liberal Democrats for nearly 82 per cent. Next May, we must aim to field more candidates than Labour. Unless there are exceptional circumstances, we should field a candidate for every seat.

    Second: to maximise the number of seats we win by encouraging constituency associations to target their resources on marginal wards. Too many times in the past we have built up our majorities in the seats we already hold while missing out on neighbouring marginal seats by a handful of votes.

    Third: to maximise the number of councils we win by targeting Central Office resources on the most marginal councils. If you do not have local elections this year, it is vital that you help in one of these target councils.

    And, finally, to ensure that if we achieve a good result the media report it as such. Labour are already spinning that they are going to lose 500 seats so that if they lose a couple of hundred they can claim it as a triumph. We must not let them get away with it.

    The results of local government by-elections over the last few months show that where we work hard and follow the campaigning tactics you will hear outlined at this Conference, we can win.

    So we recognise that there is a great deal of work underway to improve the campaigning support that we provide to Constituency Associations, councillors and Party activists around the country.

    But this is going to be hard work and I want you to be involved. The rebuilding of our local government base brings huge advantages to our Party and I would like to see more involvement from our councillors at every level.

    As I have said, our first effort must be to get the best possible results this May. However, following these elections, we will be focusing on the important role which the Conservative Councillors Association should be playing in the future.

    So I want to talk about how the Conservative Councillors Association can be more involved in some important areas:

    In providing expert input to our policy review

    In helping us to build up a set of good news stories about successful Conservative policies in action

    In helping to resource and run our campaigning support for constituencies so that we can provide campaigning material and advice to rival and beat the Liberal Democrats.

    In providing a forum for activists as well as councillors to train as campaigners.

    I am serious about working with you to ensure that the Conservative Councillors Association is at the heart of our campaigning revival. It is an important priority for me and vital for the Party.

    We should be under no illusions about what we are up against. Anyone involved in a target seat during the last election knows exactly what I mean. Labour made up to 50,000 telephone calls in many of our target seats. In one seat we lost to the Liberals, in the last six months they delivered half a million leaflets, that’s 15 per household.

    We have to fight fire with fire. That does not just mean commitment and hard slog – though there will be plenty of that, it means smarter, more professional campaigning. That is why the CCA is so important. That is why these council elections are the top priority in Central Office over the next nine weeks.

    I hope that you will all find this conference enjoyable, interesting and, above all, useful. The coming local elections, and each one following, are enormously important in their own right. But each successful result is also one more step to removing this disgraceful government from power, and towards the next Conservative victory.

    Finally, before I finish, Mr Chairman, there is one more thing I have to say. I understand that this weekend you are standing down as Chairman of the Conservative Councillors’ Association after four years of distinguished service. On behalf of everyone here today and those who were unable to attend can I thank you for everything you have done for Conservative local government and for the Party as a whole.”