quarta-feira, 28 de setembro de 2022

London Playbook: I’m loving Starmer instead — Kwarteng plays defense — Battered markets roundup

 


London Playbook: I’m loving Starmer instead — Kwarteng plays defense — Battered markets roundup

BY EMILIO CASALICCHIO

SEPTEMBER 28, 2022 8:01 AM

https://www.politico.eu/newsletter/london-playbook/im-loving-starmer-instead-shagged-markets-roundup-macrons-tantrum/

 

POLITICO London Playbook

By EMILIO CASALICCHIO

 

Good Wednesday morning. This is Emilio Casalicchio in the hot seat for the rest of this week.

 

I’M LOVING STARMER INSTEAD: The legendary Mirror bash at Labour conference in Liverpool did not disappoint last night, with half the shadow cabinet, senior LOTO staff and political advisers belting out 80s and 90s karaoke hits on a packed dancefloor. The live band opened the evening with a rendition of Highway to Hell, introduced as “a comment on the Tory party,” while attendees let their hair down after a tiring (if not a little dull) political jamboree.

 

Singing when winning: Labour leader Keir Starmer addressed the crowd and posed for selfies … his deputy Angela Rayner belted out “Don’t Stop Believin'” with Shadow Work and Pensions Secretary Jonathan Ashworth … Shadow Health Secretary Wes Streeting crooned “I’m loving Starmer instead” to the tune of Robbie Williams’ “Angels” … and Shadow Leveling Up Secretary Lisa Nandy was part of a raucous choir doing serious justice to Bon Jovi’s “Livin’ on a Prayer.”

 

Natch: Things got wild loooong after midnight when (you guessed it) “Things Can Only Get Better” started pounding from the stereo.

 

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Spotted in the heaving crowd: LOTO aides Morgan McSweeney, Deborah Mattinson, Matthew Doyle and Matt Pound … Frontbenchers Emily Thornberry, Nick Thomas-Symonds, Pat McFadden and Luke Pollard … Labour spinners and advisers Sophie Nazemi, Nick Parrott, Olly Longworth, Nicola Bartlett, Emma Barnes, Rich Simcox, Jonty Leibowitz, Pearl Sangha, Vidhya Alakeson, Henna Shah, John Lehal and Ryan Denston … ex-Labour aides Emma McNicholas, Reg Pula, Colette Bird, Charlie Rainsford and Holly Higgins.

 

Also spotted in the chaos: Half the parliamentary lobby, including Mirror team Kevin Maguire, John Stevens, Ben Glaze, Dan Bloom, Lizzy Buchan, Ash Cowburn, Aletha Adu and the Mirror chicken … hacks Oli Wright, Chris Smyth, Pippa Crerar, Jess Elgot, Rowena Mason, Aubrey Allegretti, Cathy Newman, Claire Ellicott, Natasha Clark, Jim Pickard, Seb Payne, Jen Williams, Tony Diver, Mason Boycott-Owen, Antonello Guerrera, Adam Bienkov, Paul Waugh, Hugo Gye, Kevin Schofield … and many, many more.

 

And of course … the Betting and Gaming Council’s Michael Dugher, Gary Follis and Michael Denoual, as the trade group sponsored the event.

 

Attracting shade … were numerous Holly and Phil wannabes who managed to skip the long queue to get in, including hacks and senior MPs. Playbook isn’t naming names, but received more than one complaint and is not amused.

 

DRIVING THE DAY

INFLICTING MORE STARM: Emboldened Labour leader Keir Starmer is touring broadcast studios right now and attacking the Conservatives over their latest fiscal embarrassment: a ticking off from the IMF. Following his well-received annual conference speech in Liverpool, during which he laid into Liz Truss and Kwasi Kwarteng over the rough and tumble sterling has suffered since their not-Budget last week, Starmer will warn that British families are at risk and urge the PM to reverse her plans. He’ll also seek to land Labour messages on public services, renewable fuel investment and housebuilding that the opposition has been looking to sell this week, and contrast them with Conservative tax cuts for the highest earners in the U.K.

 

Just as the Mirror knees-up was kicking off … the IMF issued a rare and damning statement chastising the government for its “large and untargeted fiscal packages” and warning that the moves could fuel the cost-of-living crisis and lead to an even more unequal Britain. The U.N. bank urged Truss to rethink in particular her cut to the top rate of income tax, which is set to benefit some of the wealthiest people in Britain. The government insisted its plan would boost growth and raise living standards.

 

Labour launches in: In a statement late last night, Shadow Chancellor Rachel Reeves said the IMF intervention “shows the seriousness of the situation” and insisted the government must set out “how it will fix the problems it created through its reckless decisions to waste money in an untargeted cut in the top rate of tax.” Expect Starmer to follow the line in his interviews this morning.

 

Follow the leader: Starmer is appearing on LBC (7.05 a.m.) … GMB (7.20 a.m.) … Times Radio (7.35 a.m.) … BBC 5Live (7.50 a.m.) … BBC Radio 4 (8.10 a.m.) … and BBC Breakfast (8.30 a.m.).

 

MAKE THE MOST OF IT: It’s something of a victory lap for the Labour boss at the end of a conference that suffered just one MP suspension for idiotic comments; just one regional chief attempting to steal the show to boost their leadership ambitions; and just one row that never quite became a row about proportional representation. Aside from all that, Labour managed to put on a proper suit, do up its tie and (literally) sing the national anthem. It even announced a few interesting policies (including a sweet, sweet trade scoop for POLITICO.)

 

Indeed: Even the high-wire moment of the Starmer speech seems to have landed well. The leader was on a high at the Mirror event last night, telling attendees Labour was feeling confident. Aides said the LOTO team achieved all its objectives for the high-profile moment, and that after his address Starmer celebrated with fizz at a thank-you event for staff before touring other receptions.

 

Paper review of conference: Starting with the friendlies, the overnight Guardian leader column reckons Starmer “is starting to stand for something,” and although some would like him to be bolder “has a better grip on the present than those he seeks to replace.” The Mirror leader declared: “No longer in the doldrums, Labour believes it can win. The confidence is infectious.”

 

Somewhere in the middle-ish: The Times thunders (as is its wont) that Starmer “has by no means enthused voters, in the way that Sir Tony Blair did after a long period of Tory government, but he has made Labour a serious contender once more.” The i newspaper points out that Labour is rising in the polls due to frustrations at the government rather than love for Starmer.

 

And the critics: The Mail leader hones in on now-suspended MP Rupa Huq for her comments about Kwasi Kwarteng being “superficially” black, arguing “the mask has slipped again. Despite Sir Kier’s protestations, Labour has proved beyond doubt it truly is the nasty party.” The Mail coverage of Starmer’s speech is a double page spread focused on whether Labour might be “plotting a Lib Dem pact” at the next election.

 

Still not friends: The Telegraph argues Labour “remains a party that is suspicious of wealth creation, envious of the rich and willing still to believe that industries work better in the hands of the state,” while the Sun insists: “Labour seem to believe simply not being Tories will hand them power. Starmer will need more than that.”

 

But making new friends: Right-wing GB News presenter Tom Harwood asked Starmer for a selfie at the Mirror party and was granted his wish.

 

Speech takes from the funnies: Among the sketch writers, Quentin Letts in the Times argues Starmer’s voice was “less honky, more like Rick Stein” but his “limb movements are, however, unconvincing.” In the Mail, Henry Deedes said he couldn’t help feeling he was “listening to a middle-ranking air-conditioning salesman who is particularly pleased by his third quarter results.” The best gag award goes to Rob Hutton in the Critic, about what he described as the “energized and passionate” speaker. Worth a look.

 

And on the ground: Most of the MPs Playbook spoke to were enthused about the address. “It was the most relaxed speech I’ve ever seen him do,” said one shadow Cabinet member. A senior MP said the 50-minute address felt much shorter — which Playbook assumes is a good sign after the feature-length bore-a-thon in 2021. Another prominent MP praised the speech and said Starmer “did what he needed to do” — although the grueling conference schedule still left some MPs in the front row struggling not to yawn on camera.

 

From the grandees: New Labour architect Peter Mandelson told Playbook that Starmer “will leave Liverpool with his electoral appeal and authority hugely enhanced.” One long serving Labour MP and former shadow Cabinet member who has been critical of Starmer in the past texted to note that the speech set out a clear vision without promising “the land of milk and honey” and marked “a massive turning point for Labour and for British politics.”

 

Less impressed: “He’s a terrible public speaker,” said one Labour aide. “He spoke for almost an hour but didn’t say anything.” One Labour MP on the left said the speech was good, with “fine” policies and “nice flourishes,” but accused Starmer of allowing “an anti-left bullying culture to develop in his staff and in the party” — pointing to efforts to deselect left-wing MPs and the expulsion of members on “trumped-up charges.”

 

Notable that … the Socialist Campaign Group of hard left MPs has avoided making criticism of Starmer or his speech, despite holding a big event last night that would have afforded it ample opportunity. Have a look through its Twitter feed to see some of what was said. Members of the group did not respond to calls or texts for comment on the speech last night, while left-wing campaigner Owen Jones was sanguine about the address (and got stick for it from his comrades on Twitter.)

 

Back in the box: It does feel as though the heckles from left wingers during the Starmer speech in 2021 were the last gasps of the hard-fought Jeremy Corbyn era. “The Corbynites have thrown in the towel,” one senior Labour figure told Playbook. “They’re not even in the corner of the room. They’re in a different room altogether.” A shadow Cabinet member added that “the left aren’t feeling at home here.”

 

Indeed: Playbook knows left wingers who became new members and went as far as working for Momentum and taking paid jobs in Labour during the Corbyn era, but who have now lost all interest and let their memberships lapse.

 

NOW READ THIS: The crack POLITICO team of Esther Webber, Eleni Courea and Ailbhe Rea — with some help from your Playbook author — has filed its take on whether “no drama Starmer” might be quietly marching the Labour Party back to power. The team notes that although there was none of the internecine strife Labour watchers have grown accustomed to at conference, there was also precious little buzz about the place either. But despite the muted backdrop, party members and strategists are starting to believe victory could be in sight. “We can smell power,” said one shadow Cabinet member. “There is no more sobering reason to unite.”

 

TODAY IN LIVERPOOL

CONFERENCE ISN’T OVER: Despite the Keir speech being behind us there are still main-stage events happening at the Liverpool arena this morning. Labour moved the leader’s speech back to the pre-Miliband slot of Tuesday instead of Wednesday so that Starmer could make the most of hobnobbing with business-types last night without having to rush off for speech prep.

 

And there were a good few to hobnob: Numerous people at conference said it was the biggest business contingent seen at the event for more than a decade — the crowning moment being a packed Bloomberg reception at which top-notch cocktails were handed out. One Labour aide said it was weird to turn around from a bar and see a “sea of suits.” The Guardian’s Jess Elgot has a full piece on the biz world waking up to the fact that networking with senior Labour people might now be a good idea.

 

Stage times: This morning it’s the turn of future Labour leadership candidates (we all assume) Wes Streeting (9.55 a.m.) … Rosena Allin-Khan (10 a.m.) and Bridget Phillipson (11.20 a.m.)

 

Streets ahead: Shadow Health Sec Streeting will demand that GPs in England provide face-to-face appointments for all patients who want them. He will also insist appointments must be book-able on the NHS app, arguing “patients must come first.” Ben Glaze got the exclusive in the Mirror.

 

Bridget the gap: Shadow Education Sec Phillipson meanwhile will pledge to introduce funded breakfast clubs for each primary school in England, as a first step toward setting out a bigger package of childcare reforms.

 

And there’s more: At 11.30 a.m. Belarusian opposition speaker Svetlana Tikhanovskaya will address the conference hall as a special guest speaker. She will (of course) stick two verbal fingers up at Vladimir Putin and his close bud, the Belarusian leader Alexander Lukashenko.

 

But before the main stage opens: Labour bigwigs will be binning the messages pro-EU campaigners left hanging from their bedroom doors last night. The European Movement UK group snuck into the Pullman (where the important people sleep) and the Jury’s Inn and stuck ‘do not disturb’ hangers on all the doors with the message: “Please don’t close the door on Europe.” Pics here.

 

THE KAMI-KWASI BUDGET

IT’S FINE, HONEST: Chancellor Kwasi Kwarteng will seek to reassure U.S. banking bosses today that the government has not lost control of the U.K. economy, as the Conservative war over its financial chaos continues to rage. Kwarteng will hold an in-person meeting in the Treasury with firms including Bank of America, JP Morgan, Standard Chartered, Citi, UBS, Morgan Stanley and Bloomberg. The idea is to gather ideas for his “Big Bang 2.0” package due to be announced next month — but aides accept he will be asked to comment on the ongoing turmoil.

 

Suggested question: Has the first bang not been big enough?

 

Here’s a preview: The finance bosses will no doubt get the same patter Kwarteng offered to Conservative MPs on a “cool heads” call yesterday afternoon. Playbook’s Eleni Courea hears the chancellor reassured the 84 people on the call that fiscal-term responsibility would be delivered in the medium term because the government is “all Conservatives.” He urged MPs to “stick with this,” promising: “We can see this through.” Bloomberg’s Kitty Donaldson has heard similar.

 

No surprise: One MP on the call said Kwarteng faced a “flood of questions” about mortgage interest rates, after lenders started tripping the F out and canceling deals.

 

Of course: Both Downing Street and HMT denied that Truss and Kwarteng argued over the government response to the financial madness, as Sam Coates said they would.

 

100 percent not panicking: Telegraph Pol Ed Ben Riley-Smith has been briefed that six big announcements on supply side reforms are being worked up for the next six weeks. The drive is said to have been dubbed “Operation Rolling Thunder” after America’s blitz bombardment tactics in Vietnam. The Tele notes hope that a Truss pledge to increase mortgage eligibility could help with the lending turmoil. Playbook wonders what the IMF will think of that.

 

Fingers in ears I: Former Brexit negotiator David Frost last night urged Truss and Kwarteng to ignore all talk of a crisis and blasted the IMF over its intervention. Former Cabinet minister Julian Smith responded: “Arghhhhhhhhhhhhhhhhh,” which Playbook assumes translates as “invaluable guidance, oh wise one.”

 

Fingers in ears II: This little-noticed Telegraph piece from Patrick Minford (one of the free marketeer brains Truss is a big fan of) ends with the line: “We should let markets work and pay no attention to idiots who cry ‘crisis.’”

 

Fingers in ears III: The Daily Mail tucked the IMF story into a corner on page 15, and led it with criticism of the IMF from Conservatives.

 

Fingers in ears IV? It’s hard to know how the government will respond at the moment. In its own response to the IMF, a Treasury spokesperson said ministers are focused on boosting growth to raise living standards, and that the planned November 23 statement from Kwarteng will set out further details on fiscal rules, including ensuring that debt falls as a share of GDP in the medium term. The markets are gagging for that detail. Don’t expect Truss or Kwarteng to appear in public today.

 

Markets-are-shagged round-up: HMT officials warned Truss and Kwarteng that their economic plans could lead to turmoil, the i newspaper team reports … Required spending cuts in the wake of the not-Budget could finish the NHS, a former Bank of England boss has warned … TalkTV’s Tom Newton Dunn is leading the Conservative rulebook debate about whether Liz Truss could be deposed in the next 12 months … and the FT is now writing articles like: “Is Britain now in a full-blown economic crisis?” because nothing is real until it’s both full and blown.

 

Speaking of Truss being deposed … Conservative MP and letter-of-no-confidence-enthusiast Roger Gale is on GMB at 8.10 a.m. this morning. Could he announce that a letter has been submitted?

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