The riots and the return to the big picture

Last week’s riots were shocking. The effect upon the many communities, families and individuals affected was undoubtedly profound. They have prompted plenty of soul searching and a wide range of diagnoses. If we are optimistic we should hope that they act as a catalyst for addressing problems of urban Britain that have been developing over many years.

The riots have not shown the political classes in a great light. There was the slow response from the Government – was this really a situation sufficiently serious to justify curtailing our vacations? There was the muddle over who has shaped policing strategy, leading to a potentially damaging war of words between the Government and senior police officers. And there is the extraordinary range of illiberal and disproportionate measures that David Cameron has seen fit to propose in response to the crisis. He seemed intent on manufacturing a full blown moral panic in order to take a worryingly authoritarian turn. Liberal Democrat MPs are clearly very uneasy at the way in which Mr Cameron has changed his tune from those far off days of compassionate Conservatism.

The riots have pushed just about everything else to the back of the news agenda for the last week. That is deeply unfortunate for at least two  reasons associated with this period of momentous – indeed unprecedented – economic turmoil. Read more of this post

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Steve Hilton, blues skies thinking and the resurgent deregulatory impulse

Steve Hilton has attracted flak across the old and new media following the FT’s revelations about his suggestions for stimulating economic growth. The proposals that hit the headlines included the abolition of maternity leave, labour market policies that contravened European law and the suspension of all consumer rights. Many have criticised the proposals for a range of offences including apparently overlooking the rule of law. Others have defended the utility of blue skies thinking when seeking ways to deal with the challenges that face us.

Personally I’m not averse to blue skies thinking. But the idea that off the wall thinking is central to the role of a strategy director is curious. One would have thought strategy should entail something rather more concrete and grounded, at some point in the process at least. And as someone more disposed to bottom up decision making and a Parliamentary party that is charged with representing the collective will of its members, I’m not so keen on the idea that one unelected, unaccountable and largely anonymous individual should have such influence over policy in the first place.

But the main thing that strikes me about these revelations is that they are not very “Blue Skies” at all. Read more of this post

Clegg’s curate’s egg of a speech

We all know about the cuts. And the claims that getting the public finances in order will act as a spur to a revival of private sector economic activity. We’re all – quite possibly including the Government – less clear on exactly how that revival is supposed to occur. We are promised a budget for growth in a few weeks time. But the speech on the economy that Nick Clegg delivered last week was eagerly awaited. Perhaps it would give some early signs of how precisely the Coalition is expecting current policy to deliver this bright new private sector-led dawn.

The speech has not been universally welcomed. David Blanchflower over at the New Statesman dismissed it as “empty waffle”. That’s harsh. But is it fair? One of the challenges is knowing quite how to read what was said. Cynics might say the challenge is knowing quite what, in what was said, to believe. Read more of this post

Curtailing access to Employment Tribunals – a liberal approach to fostering economic growth?

There is little disagreement that the economic growth figures for 2010 Q4 were very poor. When set alongside the performance of other developed economies they look even more anaemic. The Government is promising that the 2011 budget will be a budget for growth. But the Government is already bringing forward more focused initiatives with the justification that they are geared towards fostering private sector growth. Most recently Vince Cable has announced proposals for changes to employees’ access to Employment Tribunals.

The core proposal is that a worker will need to have been employed for two years, rather than the one year at present, before they are eligible to take a case of unfair dismissal to an Employment Tribunal. Defending a case that goes to Tribunal is expensive for employers, on average it is estimated to cost around £4,000. The argument is that the expense and bureaucratic nature of the process can act as a deterrent to taking on additional workers, particularly for small businesses. Lifting this burden will, the Government hopes, encourage employers to be more bullish in expanding their workforce.

The Government is also concerned that there has been a dramatic increase in cases taken to Employment Tribunal. The total number of claims rose between 2008-09 and 2009-10 by 56 per cent to 236,000. The Government suggests that its new approach will also be more effective in dealing with weak and vexatious claims. There is, of course, an implication there that the recent growth in claims is stuffed full of frivolous claims.

But is that a sensible inference for us to draw? Read more of this post