THE SURVEY ASSOCIATION – POLITICAL REVIEW, 21 DECEMBER 2012 – 31 January 2013

The Month in Politics

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Following a quiet Christmas break, the Government began 2013 by publishing a ‘mid-term review’, which took stock of progress made since the Coalition Government came to power in 2010. Whilst much of the document was simply a list of Government achievements to date, it also foreshadowed new policy announcements, including supporting working families with childcare costs, improving the state pension and helping people towards home ownership. A full outline of the review is included below.
Europe was high on the agenda this month, with the Prime Minister delivering a long-anticipated speech on the future of the UK within the European Union. Mr Cameron promised that the Conservative Manifesto for the 2015 general election will contain a commitment to negotiate a “new settlement” with the UK’s European partners in the next Parliament, and then to hold a referendum on whether to stay in the EU on the new terms; or leave altogether. The Prime Minister said that the British people’s support for the EU is currently “wafer thin” and promised to seek “fundamental, far reaching change” to restore accountability of the institution among Britons. The speech was largely well received by the UK media and the British public, and led to a boost in the Prime Minister’s ratings. Perhaps the most encouraging response to the Prime Minister’s EU speech was from his own backbenchers, many of whom have become increasingly hostile towards Mr Cameron in recent months.
There was further bad news for the Government on the UK economy this month, which contracted by 0.3% in the final three months of 2013, according to the Office for National Statistics. This follows positive growth of 0.9% in the preceding quarter, and means that should the economy contract further in Q1 2013, the UK economy will be facing an unprecedented ‘triple dip’ recession. Figures show that the manufacturing sector in particular is suffering, whilst services have performed better. However, employment figures paint a different picture, with unemployment falling and the number of people in work reaching a record high. Unemployment fell by 37,000 in the three months to the end of November, with the number of people claiming benefits also falling.
Also this month, two high profile Peers stood down from the Government to pursue roles away from the frontline of politics. Lord Strathclyde, Leader of the House of Lords and arguably the Government’s most influential peer, resigned to take up a role in the private sector and will be replaced by former Education Minister Lord Hill. Lord Marland, Under-Secretary of State at the Department for Business Innovation and Skills also stood down from his role, he will be replaced as the Business, Innovation and Skills lead in the Lords by the former Government Whip Viscount Younger of Leckie.
In another major speech this month, David Cameron addressed the World Economic Forum in Davos, marking Britain’s presidency of the G8. He addressed another key issue that has continued to surface in politics during January, advising the audience that trade, tax and transparency would be the central themes of Britain’s leadership. He criticised companies who avoid paying fair levels of tax and called for greater transparency over business ownerships in developing countries. Cameron also warned of a long battle against terrorism and extremism after the attacks in Algeria.

In depth: Coalition Midterm Review

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Shortly after the Christmas break, the Coalition Government published their midterm review – an assessment of the pledges made in the Coalition Agreement and progress to date. Whilst much of the document was simply a list of Government achievements to date, it also foreshadowed new policy announcements, including supporting working families with childcare costs, improving the state pension and helping people towards home ownership.
The chapter on Business, Enterprise and Growth reiterated the Government’s belief that the private sector and SMEs in particular, are crucial drivers of jobs and growth for our country. The passage highlighted efforts to retain competitiveness in the UK’s tax system; the development of the Government’s industrial strategy; and significant investments in infrastructure following the publication of the National Infrastructure Plan. On local and regional growth, adjustments to the National Planning Policy Framework in favour of sustainable development were mentioned along with increased control for local authorities over the planning system and improved links with Local Enterprise Partnerships to drive economic growth and job creation locally. Going forward, the review highlighted that the Government’s industrial strategy will be developed alongside sector-specific strategies; infrastructure projects will be supported by Government-underwritten debt guarantees; and house building will also receive a boost through a debt guarantee scheme for the building of new affordable homes and homes for private rent.
On Flooding, again there was little ‘new’ policy outlined with the Government outlining its pledge of to invest more than £2.3 billion in flood defences and stating “we expect to exceed our target to improve protection for 145,000 homes by 2015, while also supporting flood-prone communities to access insurance”.
The section on Energy details elements of the Energy Bill already known, saying that the Government will help to secure the £110 billion investment needed to meet electricity demand in return for a minimum price for electricity generation.
The publication led to controversy however, after a Number 10 adviser was photographed with a memo stating that there was an unpublished annex to the document, assessing other targets that could lead to “unfavourable copy”. The latter document was published in full shortly afterwards, revealing that Whitehall has missed around 70 specific targets over the last two and a half years, in areas ranging from pensions to criminal justice.
The full report can be found online here and the annex can be viewed online here.

Stakeholder Issues

Issue / Date / Detail
High Speed 2 route announced / 28.01.13 / The Department for Transport and HS2 published plans for the 211-mile northern phase two route ofHS2, following the confirmation a year ago of HS2’s 140-mile southern phase one route between London and Birmingham,
The phase one route between London and Birmingham will start construction in four years and open to passengers in 13 years while the routes announced this month, running from Birmingham to Manchester and Leeds, will open six years after that.
Secretary of State for Transport Patrick McLoughlin also confirmed that the consultation on the proposed phase two routes will be brought forward to start in 2013 rather than in 2014. He has also ordered the Department for Transport to look into whether the project can be fast-tracked so that the second phase ofHS2is completed ahead of the scheduled completion date of 2032.
Commenting on the announcement, Prime Minister David Cameron said:
“Linking communities and businesses across the country and shrinking the distances between our greatest cities, high speed rail is an engine for growth that will help to drive regional regeneration and invigorate our regional economies. It is vital that we get on board the high-speed revolution.”
“We are in a global race and this government’s decision to make high speed rail a reality is another example of the action we taking to equip Britain to compete and thrive in that race. High speed rail is a catalyst that will help to secure economic prosperity across Britain, rebalance our economy and support tens of thousands of jobs.”
Transport Secretary Patrick McLoughlin said:
“The Olympics showed us that Britain has the confidence to seize opportunities today in order to secure our success tomorrow andHS2is no different. It is about an investment in infrastructure that will deliver a priceless dividend: 351 miles of new railways helping people to jobs and goods to market.”
“While doing nothing would be the easy choice it would also be the irresponsible choice. This is an unparalleled opportunity to secure a step-change in Britain’s competitiveness and this government will do everything possible to ensure that the towns and cities in the Midlands and the north get the connections they need and deserve to thrive.
“HS2will be woven into the transport fabric of the nation, accessible to all, and I believe these proposed routes offer a great starting point for the process of engagement to follow. As with previous consultations, we will work closely with communities and interested parties to find the right balance between delivering the essential infrastructure that we need and respecting the rights and justifiable concerns of those who will be most affected byHS2’s construction.”
Further information can be found online here.
Energy Bill update / Ongoing / The Energy Bill continues its passage through Parliament with the Bill reaching Committee Stage where a group of MPs, including Government and Shadow Ministers, are responsible for scrutinising the impact of the Bill through hearing from industry stakeholders directly and examining and amending the legislation line-by-line.
During its first week of sitting, the Committee heard that stakeholders largely welcomed the proposed reforms and recent announcements from the Government have given further clarity to some measures however several witnesses stressed the need to maintain the pace of announcements. The Government’s provision to set a decarbonisation target following the fifth Carbon Budget in 2016 drew criticism from witnesses and Opposition MPs on the committee; with Government committee members seeking to highlight the increased costs involved to consumers should such a target be put in place.
Following four oral evidence sessions, the Committee began line-by-line scrutiny of the legislation and have made considerable progress. Key elements covered so far include passing sections concerning the contracts for difference framework to manage payments to and from energy generators, and provisions to develop a capacity market to manage peaks and troughs in energy demand and supply as more renewable energy projects contribute to the UK’s generation portfolio.
Further information on the progress of the Bill can be found online here.

Policy: Business Support Issues

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Issue / Date / Detail /
Employers get apprenticeship boost / 08.01.13 / Further support has been announced by the Government to support small and medium-sized businesses recruit and train apprentices. The Government confirmed an extension of the ‘Apprenticeship Grant for Employers’ for 16-24 year olds to March 2014, the £1,500 grant is available to help businesses with less than 1000 employees take on an apprentice.
Initially only on offer during the 2012/13 financial year, the funding has been extended following a positive response from employers. It has also been increased so eligible employers can claim the grant for up to ten apprentices.
Vince Cable MP, Secretary of State for Business Innovation and Skills, said:
“I know it can be a big decision for busy, small companies to take on an apprentice. Employers may be concerned about the time recruitment and training will take, and anxious about how it will work. So the £1500 grant is a token to acknowledge this and thank employers. I hope many more people will take us up on our cash incentive to grow their business, and train up the workforce of the future.”
David Way, chief executive of the National Apprenticeship Service, said:
“We know that many businesses believe Apprenticeships deliver the skills needed for growth so we are delighted AGE 16-24 has been positively received by employers for helping them to do just that.
“Apprenticeships come with a guarantee of quality, giving young people a job with training, and are proven to deliver a significant return on investment, so this really is a win-win initiative for employers. There has never been a better time to recruit an apprentice, so I hope more organisations will look at how they can benefit from this grant over the coming 12 months and reap the rewards of a more motivated, skilled and qualified workforce.”
Further information can be found online here.
More funding available through the Regional Growth Fund / 17.01.13 / The Deputy Prime Minister called on businesses across the country to bid for a share of the £350 million Regional Growth Fund.
The Regional Growth Fund has already helped 180 projects get started, creating local jobs and attracting significant private sector investment. Bids are invited for projects that will directly create jobs through private sector enterprise and growth and for projects that will enable or unlock future private sector growth, particularly in those areas and communities that are currently dependent on the public sector.
Round 4 of the Regional Growth Fund will close to applications on 20 March at noon, potential applicants are invited to attend informative events in their region for support and further help with the application process. The first of these will be in Manchester on 31 January 2013 and is open to any organisation interested in bidding.
Deputy Prime Minister Nick Clegg MP said:
“The Regional Growth Fund is already proving a shrewd investment by providing a welcome boost to jobs and growth across the country, with thousands of jobs created, businesses expanding into new markets and manufacturing new products. With this next round of funding, I would urge England’s budding businesses to produce top quality bids to access the money that can help them grow.
“There’ll be stiff competition, and we can only invest in those projects that will lead to sustainable jobs and the best value for money. Boosting jobs and growth is our number one priority for Britain right now. That is why I am so pleased to be opening a fourth round of the Regional Growth Fund which supports growth across a range of industries.”