The British political system isn’t perfect, far from it.
And all of us involved are painfully aware that in general politicians are almost bottom of the league tables of public esteem, down there with journalists and estate agents. But we get some things right. And, for two linked and fundamental features of it I’d die fighting rather than see them go.
These are, first, the rule that Ministers have to be parliamentarians at the same time. Second, that members of the House of Commons are elected by the people to serve single member constituencies, and your duty is to represent everyone within your constituency regardless of whether they voted for you or not.
The value of our system is profound. For the fact that Ministers have their other job as MP acts as a built-in mechanism against the dangers of “national policy” quickly becoming too detached, and abstract from what is really happening on the ground.
Let me give one really big example. We’re in the middle of a financial crisis. The British Government has taken a series of measures to inject new capital into some key banks. If credit were to dry up, then so too would large parts of our economy. The sums involved are unprecedented, staggering.
So far, so good. But what about the effect on the ground? Blackburn with Darwen Council leader Colin Rigby and I held a “Business Summit” in Blackburn Town Hall last Friday. At just a few days’ notice nearly 100 businessman and women from across our local economy attended. Council officials, and senior businesspeople who now give advice to local entrepreneurs were on hand.
And I came away with a sheaf of notes and a much better understanding, from the coal face, of whether these national measures were – or weren’t – working, and suggestions for further action. Among the issues were:
* Banks and why was the gap between what they were paying each other for cash and what they were charging businesses so great?
* The government spends billions each year on goods and services. How could more of this go in orders to local firms?
* Energy prices. The energy companies were quick to hike their prices when their costs rose, but slow to lower them.
* Empty Property Business Rate. This was brought in when the economy was doing OK, but – said those present – made no sense when businesses couldn’t let or rent their vacant properties.
* Late payment by large private companies. Government, national and local is now a good payer. But there were complaints that some really big private firms were extending their terms of payment unilaterally, when their cash position is far better than the companies to which they owe money.
* Revenue and Customs – more time to pay VAT and PAYE owed.
* “Phoenix” companies. More should be done to clamp down on rogue directors who put companies into liquidation one day, and re-establish in the same premises but a different name the next.
I’ve already fed all these concerns and others to the Chancellor, Alistair Darling, and Peter Mandelson, the new Business Secretary. They are being actively considered.
I can make no promises on the outcomes just now but whatever happens the fact that local concerns have been delivered direct to the heart of government is thanks to the very nature of our constitution.
