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Selling time. What passes for Theresa May’s strategy

April 3rd, 2019

Picture credit: Sunil Prasannan

We spend all our lives buying and selling time. We sell our time to employers. We trade time for convenience when deciding where we live and what we are prepared to pay for that.

Oddly, we talk of buying time but we never talk of selling time, even though we do both. This is a gap in the English language. For the last few months that has been all that Theresa May has been doing.

After Theresa May lost the Conservatives’ overall majority in the unnecessary 2017 general election, it was apparent that she had lost authority. She successfully bought time in the election’s wake (which on this occasion was the wake of a funeral and not of a boat) by telling MPs that she would serve as long as they still wanted her.

She used that time to negotiate the withdrawal agreement and the political declaration with the EU. This was unveiled in November and it received the type of critical reaction that theatrical types politely call mixed. With the clock ticking down on the Article 50 timetable to 29 March 2019, Theresa May had limited amounts of time at her disposal and she had to decide how to spend it to secure an acceptable result to her.

She concluded that her deal would not pass in December, so she decided to spend a month over Christmas working on MPs’ hearts and minds. She did not get the value she sought for what she sold: Generals December and January were never going to help her when MPs were hearing on all sides how vehemently constituents and party members felt about the subject.  

She did, however, get a windfall bonus that was worth that month and then some: as a result of her decision dissident Conservative MPs obtained and lost a vote of no confidence in her, cementing her in place as party leader for another year.  

You can argue whether it was unwise for the dissidents to shoot their bolt then or whether it was unwise for Conservative MPs then to give her their backing (or both).

Whatever, she got a freedom of manoeuvre in the short term that she did not previously have.  In order to secure this, she made another big sale of her personal time, this time promising publicly that she would not fight the next election.

She did not use her time well. Theresa May stuck rigidly to one path: the one that she had agreed with the EU. There have been murmurings in the papers that the EU is deeply unhappy with the way in which Britain has approached agreeing the withdrawal agreement.  

Hardline Leavers and unreconciled Remainers alike have grounds to object (as has anyone with a passing interest in good or even adequate governance) but the EU has not. The one thing that Theresa May has unflinchingly sought to do is secure the agreement that she had negotiated with them.

It has, however, been obvious for months that objective was unattainable. It should have been jettisoned much sooner. Instead, the Prime Minister sold the rest of January and all of February on manoeuvres to steamroller her deal through. It didn’t work. Anyone who could count, as LBJ would have advised her, would have seen it wouldn’t work.

She was aided by a supine Parliament, that accepted her airy and loosely-framed commitments rather than take control of the process sooner. As always, however, tactics without strategy is the longest way to defeat. She was defeated again in the second meaningful vote. She then threatened Parliament with the cliff edge of 29 March if it did not pass her deal.

This gambit was thwarted by the EU offering her more time, to at least 12 April, that she could not afford to seem not to take. She then sought to sell more of her personal time by promising her own MPs to resign if they passed the withdrawal agreement. This bargain was turned down.

Now, in extra time, Theresa May is down to trading remaining minutes, this time by seeking finally to involve the leader of the Labour party in what should always have been a national decision. If a deal is to be struck with him it will need to be struck by Monday if there are not to be more indicative votes.

The price of this bargain – for just six days – is huge. She has probably definitively lost a cohort of hard Leave backbenchers, many of whom appear to be seriously weighing voting against her in any Parliamentary vote of no confidence. Her party is splintering on both sides and if the Conservative party were to lose even three more MPs, it would no longer have a working majority with the DUP. Far more than three on each side of the party are very close to the end of the road with the party.

So what next? The Prime Minister is bereft of a strategy. This has been clear for some weeks. Perhaps some form of deal will be reached with Labour. Since the leader of the Opposition has no obvious reason to help the Prime Minister out, a failure to agree must be the likeliest outcome. If a deal is reached, it will inevitably involve something that will be called a customs union and very possibly some form of referendum (not to include this would devastate Labour’s own supporter base).  

Either of those would be too bitter a pill for most Conservatives to swallow. Both together look like a lethal cocktail for both the Conservatives and Theresa May. So for this reason too, an agreement looks less likely than a failure to agree.

In that case, there will be more indicative votes on Monday. The residual party discipline of the Conservatives can then be assumed to have definitively evaporated. This will not make finding a way forward that commands a majority of the Commons easier since the bulk of the Parliamentary Conservative party now dresses to No Deal.

Theresa May can be counted upon not to take any step that will shorten her tenure as Prime Minister but she can be counted upon to take any step, including the burning of her own future, to extend her present. To that end, it would suit her better to look overborne by events than actively to have taken any step to bring about either a deal that her party would not stomach or actively to have taken any step to effect no deal.

So I expect there to be no breakthrough deal brokered by the party leaders, for indicative votes next Monday to take place, for the government to give no steer and, probably, for the institutional gridlock in the House of Commons to continue. By this point, the Conservative party may well have lost control of Parliament through further defections.

After that, who knows?  Can anyone even try to see further ahead than that?

Alastair Meeks





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Why punters have got it right making a 2019 general election a 45% chance

April 3rd, 2019

Following the latest developments in the Commons it is clear that the house as currently constituted is going to be troublesome for the prime minister whoever he or she is for as long as we don’t have a general election.

Theresa May’s decision in April two years ago to go early to the country has proved to be something of a disaster and if indeed she had achieved what she was hoping to do then the parliamentary arithmetic would have been much less tight. So there was nothing wrong with her strategy calling the election it was just her delivery and campaign methodology.

The big challenge facing Conservatives  is that there are few indications that a new election would produce an an outright majority for the party. The gap between the reds and blues is too tight and too close for comfort.

But it maybe, just maybe, that this seems the only alternative for the party. It might also be that there’s a new Conservative leader pretty soon who wants to assert his or her authority by winning a mandate of their own.

That Theresa May lost seats after calling an election when  the Tories were 20% up in the polls is going to continue to jinx whoever leads the party.

Looking at the voting intention polling  on the outcome of a hypothetical election within the next two to three  months it’s hard to see either LAB or the Conservatives winning a majority and the chances are that it would be as tight as it currently is at the moment.

Another factor is whether an early election would consolidate as a political force TIG or Change UK – which both main parties would hate to do. Heidi Allen and her team would love the opportunity to test their electoral potency against the current political backcloth. The first task will be holding their own seats and that, I’d suggest,  is going to be harder to do the longer it is since their break from the Tory and LAB parties.

The current betting on a 2019 General Election is that its a 45% chance. That seems about right.

Mike Smithson


 

 

 

 



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On the betting markets a no deal Brexit moves from a 37% chance on Monday to a 21% chance now

April 3rd, 2019

Chart of Betfair market from betdata.io

How TMay’s speech last night impacted on the betting

The top UK political betting market at the moment is the above one on whether there is actually going to be a no deal brexit in 2019. The chart is based on the Betfair Exchange where the bookmaker does not set the odds but punters are trading with each other.

The big message from Theresa May’s dramatic invitation to Jeremy Corbyn yesterday evening was that she does not want a no deal brexit is going to do what she can to avoid it.  Clearly the cabinet is very split as we saw with  extraordinary long meeting  yesterday without, it should be noted, any civil servants. This was  cabinet members only which is quite unusual.

For as well as being a huge move for the country as a whole this is massive in its potential impact it could have on the Conservative Party. It could lead to ministerial  resignation but so far there have been none.

What I think the hardliners have not fully factored in is that the referendum result in 2016 was actually very close and it would only have taken a 1.9% Leave to Remain swing for the outcome to have been different. It can be argued that a 51.9% to 48.1% split is no mandate for hard change.

The nation was divided then and still remains totally divided  and that surely should be factored in when it comes to working out Britain’s relationship with  the EU.

The political risks of a hard brexit, I’d argue, are substantial and Mrs May’s decision to reach out to the Labour leader is probably the wisest one she has made yet. Whether it produces the outcome she wants we will see. The clock is ticking.

Mike Smithson




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Meanwhile what’s been happening in the local elections

April 2nd, 2019

Harry Hayfield’s March 2019 Local By-Election Summary
Labour 6,624 votes (32% unchanged on last time) winning 6 seats (unchanged on last time)
Conservatives 5,024 votes (24% -1% on last time) winning 1 seat (unchanged on last time)
Liberal Democrats 3,626 votes (17% +4% on last time) winning 2 seats (unchanged on last time)
Green Party 1,641 votes (8% +1% on last time) winning 1 seat (+1 on last time)
Independents 1,154 votes (6% -3% on last time) winning 1 seat (unchanged on last time)
Local Independents 875 votes (4% unchanged on last time) winning 0 seats (-1 on last time)
Scottish National Party 865 votes (4% +1% on last time) winning 1 seat (unchanged on last time)
United Kingdom Independence Party 490 votes (2% -5% on last time) winning 0 seats (unchanged on last time)
Other Parties 508 votes (2% +2% on last time) winning 0 seats (unchanged on last time)
Labour lead of 1,600 votes (8%) on a swing of 0.5% from Lab to Con

GAINS
Green Party GAIN Haddenham and Stone on Aylesbury Vale from Conservative
Labour GAIN Coxford on Southampton from Independent
Independent GAIN Holditch and Chesterton on Newcastle-under-Lyme from Labour
Conservatives GAIN Aveley and Uplands on Thurrock from Thurrock Independents

 

Since the referendum  there have been 739 local by-elections across the United Kingdom and I wondered what the REMAIN / LEAVE split was when those wards last voted and now the split is now, therefore using the excellent exit poll data produced by Lord Ashcroft after the referendum I have come up with the following estimate.

In those 739 wards, the vote at the time of the referendum was LEAVE 926,249 (50.16%) REMAIN 920,489 (49.84%). Assuming, and this is the leap of faith that I must beg people to endure, that the splits in voting have remained unchanged since the referendum, those 739 wards now split REMAIN 655,448 (54.49%) LEAVE 547,449 (45.51%) suggesting at least a 4% swing to REMAIN since the referendum (which if applied nationally would see REMAIN poll 52% and LEAVE poll 48%).

Another way of looking at the changes is to see which party is doing best in terms of seat changes in councils that voted LEAVE or REMAIN and there the answer is very clear cut indeed.

REMAIN councils change: Con -10, Lab -7, Lib Dem +12, Ind +2, Local Ind +1, Plaid +2
LEAVE councils change: Con -23, Lab -13, Lib Dem +42, UKIP -22, Green +7, Ind -3, Local Ind +4, Plaid +2

 

Harry Hayfield

 



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So TIG becomes Change UK in time for the possible Euro Elections

April 2nd, 2019

This could be good branding for possible Euro elections

One of he potentially big developments that came out at the end of last week was the decision by the Independent Group to seek registration as an official party under the name of  Change UK.

The grouping, of course, features the LAB MPs who left Corbyn’s party in February followed by the three women Tory MPs who left their party a few days later. It is the only grouping that has more women than men.

If there are European elections in the UK on May 23rd, and that is very dependent on events over the next 10 days, then the UK would be bound to participate. Its reported that election administrators are taking precautionary steps to ensure that if this does happen that they can make the arrangements in time.

Elections to the European Parliament in the UK take place under a system call the “closed party list.” Unlike general elections where voters indicates the individual of their choice in Euro elections they take a box against a party which field a list in each region. So a party’s name could be crucial.

It is this structure that has been very helpful to UKIP and indeed at the last Euro elections in 2014 the party finished top in the UK.

My guess is that the new party’s planned name Change, if that is acceptable, may be potentially very potent in a European election structure. We’ve all heard at different elections people making the call to “vote for change” and the new party has taken over the phrase. Under this banner it will be able to brand itself as the body that that seeks to do something differently.

I think that is quite smart and could potentially be very useful should the elections take place.

What is really interesting is what the relationship Change UK will have with the Lib Dems. What’ll happen if there is a parliamentary by-election in Brecon a seat at the Lib Dems used to hold – where the MP last month pleaded guilty to expenses fraud. That’s likely to trigger off a recall petition which could open the way for a by-election perhaps in early July. Change UK wouldn’t want its first Westminster by-election standoff be a fight with the LDs

Mike Smithson


 

 

 

 



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The Brexit deadlock: Some group has got to shift bit it is not clear who that will be

April 2nd, 2019

Who is going to fold first?

After another deadlocked day at Westminster the time is running out before the April 12th deadline and if the UK is not to slip out of the EU then without a deal then some grouping has got to change their previously set out strong position.

Let’s start with the EU itself. Will it hold to it’s now extension from the April 12th without a firm plan from the UK or will it actually relent and provide more time for the UK to sort itself out? My guess is that the is still room for manoeuvre there.

Back in the commons the groupings are very firm and very resolved. We know where the ERG group are going to because most seem entirely content and would welcome all the chaos and decline in economic activity a no deal would produce. That they’ll be made scapegoats for the ensuing chaos for years to come doesn’t seem to bother them.

What about the ardent advocates of People’s Vote who have rigidly stuck to their position and voted against all other possibilities? These include the entire TIG, almost all the Lib Dems and a sizeable chunk of Labour MPs. Their hope seems to be that if they stay resolved then TMay’s only option will be a second vote. They seem pretty firm but I just wonder.

This is like a high risk game high stake game of poker when everything depends on who will fold first.

Are we going to see some more Tory MPs get behind Theresa May’s deal assuming she’s able to bring it back to the house yet again? The talk last night was of this been linked to a general election threat though I still can’t see Theresa May really being in a position to enforce that.

My guess is that the EU will grant more time and which inevitably leads to UK participation in the Euro elections next month.

Mike Smithson




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The chaos continues as MPs reject all Brexit options

April 1st, 2019

TSE



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CON leadership betting analysis: This is less about Brexit and more about personal characteristics

April 1st, 2019

After TMay the Tories need someone who does “human”

Every day it seems we have a new potential candidate for the next Conservative leader. Liz Truss tells us how she will say what she wants and wear what she wants in the Sunday Times, Dominic Raab tells us what he will do about knife crime, Even IDS may be making a comeback (sorry, joke – I am assuming that was the April’s Fool Day story, right?)

However, one theme that is consistently common is that the key determinant of the next leader is their stance on Brexit. JRM writes at the weekend  that the next leader must be a Brexiteer. Javid and Hunt (and others such as Truss) have seen the light and favour no deal over a softer Brexit to atone for their previous Remain sins. Meanwhile, Amber Rudd positions herself as the Joan of Arc of the Remain Conservatives, ready to free the party from the filthy, St George-worshipping Brexiteer hordes.

I think, though, we may be looking at the wrong key parameter for what will determine the next Conservative leader. In a case where a political leader is seen as a failure and / or tainted, the reaction tends to produce a leader who is seen as the opposite (Corbyn after Miliband springs to mind, Thatcher after Heath etc).

In May’s case, it is not her views on Brexit that are the issue, it is she just doesn’t “do” human. She finds it tough to be emotionally warm to those she hasn’t known for a long time and she seems naturally secretive. It is that inability to connect that is causing the problems. 

I think most Conservative MPs and, less so, members get that. There is grudging admiration for her tenacity but a realisation that it is the lack of human empathy that has caused many of the problems we are seeing now.

That means that the key lesson that Conservative MPs take from May’s Premiership is not they need a committed Brexiteer or, conversely, a Remainer to stop the Brexit faction but that the next leader should be someone who does human: is comfortable in their own skin, is not necessarily perfect but who can actually connect with what ordinary people are thinking and whom people would like – in effect, someone with whom they would like to go down the pub for a pint (and, no, I am not thinking Farage).

It gets forgotten but the headbangers on both sides are a minority in the Conservative party. Most Tory MPs are concerned with their jobs. They look at the latest Delta poll  and the threat of an election and a P45 is suddenly looming very closely. Their focus will be on a candidate who is likely to win. While the membership is obviously more ideological, the threat of Corbyn as PM is likely to be seen as so grave that the focus will switch to who is the candidate who can win over the electorate.

What does that mean in terms of betting tips for the next Conservative leader (and PM – I think given the FTPA, it is better to bet on the PM odds for whom you think will be the next Conservative leader)? I think you can discard a whole swathe of the most mentioned names  because they come across as just not normal people and whom a trip to the bar with would be a pain not a pleasure. Bet against Raab, Hunt, Javid, Gove, Rudd or similar politicians on this score (but I wouldn’t put JRM in that camp – I think, on balance, he pulls it off). They are not the sort of individuals you want to spend an evening with after work.

Who does that leave (pardon the pun)? I think Boris Johnson, for all his faults, comes out well. I know many people on here don’t like him and he has skeletons galore but most people are not saints and look where having a saint as PM got us this time around.  I’ve tipped Esther McVey on her before (she is 66/1 for next PM) and I still think she is worth a punt – she is clearly interested and her interview in the Times is clearly making a play for the social mobility / working class Tory angle (and she loves dogs – never underestimate how well that goes down well with a big chunk of the population). Liz Truss is also making her play and has a good back story (and at 100/1 is a good long shot) but I fear she comes across as a little bit too geeky / needy, which may put voters off.

You will notice there are no Remainers on the list. The reason for that is that none of them really comes across as having warm characteristics, more of a “I know best you stupid people” attitude. I would argue it is this, rather than their views on Brexit, which would be the main impediment to becoming leader. Rudd is a case in point – her whole manner would just be off putting to a swathe of the population who would feel as though they are being talked down. If I’m right, Remainers will only have themselves to blame for one of their standard bearers not making the cut by coming across as too clever and arrogant by half.

TheKitchenCabinet