Tuesday, March 21, 2017

THERESA DIGS IN

  
Beset and besieged by a variety of jackals and vultures, Theresa May has staunchly hunkered down to address all the financial, constitutional and social problems facing the United Kingdom. The electorate expects firm, fair and coherent government and demands that the government quickly masters the complexities of Brexit – so far there have been mixed results and a headmaster’s report would use the time-honoured phrase “could do better”.

Theresa May at work

The great positive is that Parliament has finally approved the triggering of Article 50, now scheduled for 29 March, and the Royal Assent has been given. Negotiations will presumably begin soon. The passage through the Commons was easy enough as Jeremy Corbyn’s opposition from Labour was pathetically muted. The Lords made predictably Establishment noises fortified by last-ditch pleas from arch-Europhile, and erstwhile darling of the Tory faithful, Michael Heseltine:  but they realised their very existence would be jeopardised if they defied the Commons on this crucial issue and they finally concurred. No doubt there will be dozens of ministerial statements, parliamentary questions and second-line debates but there will only be one make-or-break vote on the final terms sometime in 2018-19. One hopes that by that time some kind of national consensus will have emerged.


The UK’s financial performance has much exceeded the deep gloom forecast by the Remainers in their Project Fear campaign, growing second only to Germany in Europe. The weakness of sterling helps exports and attracts inward investment but will also boost inflation. But so far, so good. Philip Hammond’s Spring Budget however proved to be a shambles. A central measure was a modest increase in NIC of 2% for the self-employed. This broke a 2015 manifesto pledge not to increase NIC costs and the self-employed are dearly cherished by the Tories. Backbenchers protested vociferously and May forced Hammond to withdraw this measure, demonstrating weak pre-budget liaison between No10 and the Treasury and maybe wobbly political will from Theresa herself. This does not augur well for the looming abrasive negotiations with the EU – we need nerveless and committed representatives at that little party which has every chance of turning particularly nasty.


Talking of the particularly nasty, Nicola Sturgeon, leader of the SNP and First Minister of Scotland announced that she would ask the UK government to approve the holding of a second Independence referendum. She lost the first 55-45% in 2014, but the Brexit vote is judged, fairly enough, “a material change of circumstances” and 62% of Scots voted to remain in the EU in the Leave/Remain vote of 2016. Theresa May has not refused an eventual referendum but states it cannot take place until after Brexit. This position was applauded by veteran SNP/Labour man Jim Sillars as “sensible”.  Predictably the SNP is theatrically outraged, but remember the SNP is “a grievance machine” unwilling to agree anything that does not suit its fanatical independence cravings.

Scotland's least enjoyed export, Nicola Sturgeon

Sadly, as a Scots Unionist, at present the SNP is politically dominant in my native country. The polls say that support for independence is waning – we will see to what extent in the May 4 local elections – but Labour seems ineffective and the Tories, doughtily led by Ruth Davidson, enjoys minority (if well-informed) support. The intellectual case for independence has never looked weaker: the SNP presides over a country with a much worse growth rate than the UK, North Sea oil revenues have nose-dived from £1.8bn in 2015 to just £60m in 2016 and an independent Scotland would have at 9.7% the 2nd highest Debt/GDP ratio in the developed world. Her admission to the EU would be long delayed, the necessary “hard border” between Scotland and England would undermine Scots business, a new Scots currency would be required and so on ad infinitum. Sensible Scots see that remaining within the Union, subsidised by the UK, is crucial.


The SNP could not care less about these facts. La Sturgeon struts about as if she were already the President of the Scots Republic and any price, even bankruptcy, is worth paying for achieving her Holy Grail of Independence. Her bubble deserves to be pricked but Theresa avoids direct confrontation, at least for now. The Scots Parliament will pass a motion asking for a 2nd independence referendum, but Theresa should resist these unwelcome pressures, as legally she has every right to do. Only she can fix a date for a referendum.


Theresa May’s position is not ideal. She lacks the authority of an election winner, as her eminence is the result of an inter-party Tory cabal. Her parliamentary majority of about 12 is much too thin for comfort and all the signs are it would be materially increased were there to be an early election. But Brexit business must take priority and calling an election requires far more guile than previously, under the 2011 Fixed Parliament Act. Opposition led by ineffable Jeremy Corbyn, pipsqueak Tim Farron and unlovable Nicola Sturgeon should easily enough be overcome, yet Theresa declines to call a poll. She probably wants to have more to boast about in terms of Brexit and economic progress. Meanwhile she has to grin and bear the poison arrows from hostile opponents and media.


2017 is certain to be a sticky year. Trump appears to be totally lacking in presidential qualities and his erratic domestic and foreign policies can cause mayhem. Germany and France will be distracted by national elections, but we should not be too much swayed by talk of radical political change. Marine Le Pen will not become French President nor will Merkel’s Christian Democrats lose their grip on power in Germany. The muted showing by Geert Wilders in the Netherlands shows that stodgy Europeans are not much attracted to revolutions these days. The EU as an institution will have to curb its ambitions and a two-speed Europe may well emerge. A predatory Russia will sniff for territorial prey on her borders, in say Latvia and Ukraine, putting NATO’s resolve and solidarity to the test.


Theresa May is not a flamboyant type but she has the experience and single-mindedness to lead the UK to what it wants to be – a prosperous cosmopolitan nation in a new arrangement outside the restrictions of the EU but cooperating closely with Europe in many vital fields. I hope most of the nation can in time unify around such a programme.



SMD
21.03.17
Text Copyright ©Sidney Donald 2017

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