London Influence: Migration tightrope — Huawei
hibernation — Carers’ crunch
BY MATT
HONEYCOMBE-FOSTER
NOVEMBER
24, 2022 12:00 PM CET
POLITICO
PRO London Influence
By MATT
HONEYCOMBE-FOSTER
Hello and
welcome to London Influence, among the best newsletters narrowly focused on
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SNEAK PEEK
— The CBI
treads a careful line on migration as post-Brexit tensions continue to simmer.
— Chinese
tech giant Huawei is scaling back its lobbying work in Brussels, Paris and
London as it pivots to its domestic market.
— Britain’s
army of unpaid carers faces a bleak winter as costs soar and services struggle.
LOBBYING
WESTMINSTER
CBI’S FINE
LINE ON MIGRATION: The last time big business asked ministers to ease migration
rules, it got accused of being “addicted” to cheap labor and pilloried by
right-leaning pundits. But after a year of economic and political turmoil, the
CBI wants government to think again. And it’s adamant that it wants neither a
return to EU free movement of people — nor a cut-price way to do down British
workers.
Background:
It’s a tricky rope to walk for the Confederation of British Industry, which is
no stranger to getting dragged into the Brexit wars and this week bagged both
Rishi Sunak and Keir Starmer for its annual conference in Birmingham. The
business group, which represents 190,000 firms, has been pitching a targeted
relaxation of the U.K.’s immigration rules as one of several moves Sunak’s
government can make as it desperately tries to soften a lengthy projected
recession.
Number-crunching:
It’s hardly a secret that the U.K. is gripped by labor shortages right now. The
latest data from the Office for National Statistics puts the number of job
vacancies at 1,225,000 — a whopping 54 percent rise on pre-COVID levels.
But but but:
The CBI is at pains to point out that it’s not just calling for a free-for-all
to sort this. Instead, it’s trying to push a more nuanced message that it hopes
will land with a government still acutely aware immigration was a major
hot-button issue in the run-up to Brexit.
So why now?
The CBI’s chief U.K. Policy Director Matthew Fell tells Influence that the
autumn statement made it pretty plain the country is “running out of firepower
on both fiscal and monetary policy,” and warns that labor shortages right
across the economy “are choking off growth and leaving demand unmet.” That, he
says, means government should be “pulling all the levers and leaving no stone
unturned in the search for growth.” It will, he argues, need to make “some
choices that are difficult politically.”
Bigger
picture: It’s not just migration, but also planning, regulation and trade where
the CBI thinks there’s room for Sunak to be more bold.
And so: The
CBI argues that migration rules should be eased only in sectors where the U.K.
is unlikely to realistically be able to plug staffing and skills gaps soon, by
adding more jobs to its Shortage Occupations List (SOL). New arrivals should be
given fixed-term visas, the group says. “Nobody in business — including us here
at the CBI — no one’s calling for unchecked immigration or a return to free
movement of people,” Fell stresses.
Instead:
The business group wants the Migration Advisory Committee — which advises
government on the roles that should go on the SOL, to have more flexibility
over how it responds in a tight labor market. Right now, Fell says, there are
only “sporadic and infrequent updates” of the SOL, meaning “it’s always out
with pace with where the economic need is.”
Starmer’s
take: Labour Leader Starmer took his own tough message on migration to the
Birmingham gathering of business chiefs, saying firms need to wean themselves
off an “immigration dependency.” Fell argues that the opposition chief’s
position is “entirely consistent” with the CBI’s own stance, stressing that firms
are keen to both “step up investment in training and skilling” while also
backing an immigration system that can “address near-term shortages in the
economy.” He adds: “It’s not complete free movement. It is targeted and a
sensible use of immigration, weighted towards the areas of the economy where it
is most in need.”
Not the
motive: Fell is also keen to push back on the charge big business is hooked on
cheap hires, arguing that this ignores the real challenges entire sectors like
hospitality are facing right now. “Ultimately, I just don’t think that is the
motive at all,” Fell says of the cheap labor charge. “I think the motive is
actually getting people full stop as opposed to looking to drive down wages.”
Emotions
running high: The CBI policy chief sounds clear-eyed about the political
challenge the group faces in calling for an easing of immigration rules
post-Brexit. “It’s tricky,” he acknowledges. “Whenever you get into
immigration, obviously, it’s a hugely emotive issue. And the trouble is actually,
it’s often dealt with in binary terms: you know, is it good or bad?”
QUICK HITS
HUAWEI’S
EUROPEAN HIBERNATION: Chinese telecoms giant Huawei is pushing out its
pedigreed Western lobbyists, retrenching its European operations and putting
its ambitions for global leadership on ice.
That’s the
gist of a belting story on POLITICO’s front page this morning from Laurens
Cerulus and Sarah Wheaton. The pair document how Huawei lost the geopolitical
game against Washington — and is giving up on playing politics in Europe. They
spoke to more than 20 current and former staff and strategic advisers to the
company, many of whom requested not to be named.
What you
need to know: They found that the company is folding its split European
operations (currently divided into Western Europe on the one side, Central and
Eastern Europe and the Nordics on the other) into a single European region with
central command in Düsseldorf, Germany. It’s severely restricting the role that
its chief lobbying offices in Europe will play, including in Brussels, Berlin,
Paris and London.
The effect
it had on its comms staff: You may have noticed an exodus of senior Western
managers Huawei hired just a few years ago to counter the U.S. assault on its
business. That includes comms hotshots from its Brussels, London, Warsaw and
Paris operations.
Not so
fast, though: Industry officials said it’s too early to write Huawei off in
Europe. The firm still has considerable market presence and ongoing business
dealings with the Chinese vendor. Read the full deep dive into how Washington,
a pandemic and a war in Ukraine chased Huawei out of Europe here.
BRIGHT BLUE
BLAST: Punchy stuff from Bright Blue boss Ryan Shorthouse this week, as the
center-right think tank’s director announced he’s quitting and used a Guardian
interview to machine-gun the Conservatives’ direction of travel on his way out.
The 37-year-old
Shorthouse said the Tories had “failed my generation” by not tackling
“punishing housing and childcare costs” while presiding over “stagnant wages.”
While Shorthouse — who is heading for the private sector — trains plenty his of
fire on the disastrous Liz Truss mini-budget, he doesn’t exactly leave many
crumbs of comfort for Sunak either. “Rishi Sunak is a thoughtful and decent
person, but he is short-sighted politically and seems to be a bad judge of
character,” Shorthouse said of the new guy. But apart from that! Full interview
here.
THAT ONWARD
AND UPWARD JOKE AGAIN: Clutch of new hires at think tank Onward after director
Will Tanner was poached by Rishi Sunak and comms boss Jack Kelly moved to
become chief media officer at the Cabinet Office.
Ellie
Varley becomes head of communications after a stint as senior comms adviser to
Tory MP Dehenna Davison; Angus Lloyd-Skinner joins as deputy head of events and
development after a spell heading up events for the Spectator; Francois
Valentin is the new senior researcher for social fabric and future politics,
joining after serving as chief of staff to French politician Benjamin Haddad;
and Anna Dickinson is on board as senior research for the science superpower
project, coming on board from Public Policy Projects.
SPEAKING OF
WONKS: Guido crunched the numbers on the wonks who’ve been drafted in to
Sunak’s government as SpAds. Policy Exchange tops the list with six alum making
it into government, followed by the Center for Policy Studies and Onward. The
Institute for Economic Affairs, Taxpayers’ Alliance and the Adam Smith
Institute have all taken a tumble versus their representation in the Truss
administration. Full numbers here.
TENEO BAGS
NO. 10 BIZ VET: Big hire at agency Teneo, which brought in Boris Johnson’s
former No. 10 business engagement lead Alex Hickman as a senior managing
director. Hickman worked at No.10 for two and a half years, and co-founded the
think tank Open Europe.
FULLBROOK’S
PARLY PASS: Lobbyist Mark Fullbrook — who was, you may remember, briefly Liz
Truss’ chief of staff — holds a parliamentary pass, meaning he has access to
ministers, MPs and peers, the Guardian’s Henry Dyer revealed this week. The
pass is sponsored by his wife, Lorraine Fullbrook, a former Tory MP who was
elevated to the House of Lords in 2020. The spousal pass — which came to light
through a freedom of information request — is one 359 currently issued.
Industry body the PRCA has previously urged parliament to clamp down on the
scores of lobbying-linked passes out there in the wild.
Remember
kids: The only appropriate use of one of these passes is to buy Influence a hot
chocolate in PCH and leak state secrets.
ON THE BALL
LOBBYING: England’s World Cup opener was not just a chance for Gareth Southgate
to show off his squad’s talents. Westminster lobbyists were quick to use the
Qatari kick-off as an excuse to charm policymakers. The Football Association
put up a big screen in the Attlee Room in the Lords and got plenty of MPs and
hacks, including former Deputy PM Damian Green, along. Environment Secretary
Thérèse Coffey was spotted at Coca Cola’s Two Chairmen pub screening.
And: It
wasn’t just business wooing policymakers, either. The Mirror reports that
Labour’s Keir Starmer hosted bosses from firms including arms giant BAE Systems
in his Commons office suite on Monday night, alongside MPs who watched Wales’
World Cup match in the corner.
SLICE OF
WARBURTON: Rap on the knuckles for suspended Tory MP David Warburton after he
failed to declare a loan given to him by Russian-born Roman Joukovski.
The
details: An investigation by the Parliamentary Commissioner for Standards found
that Warburton was loaned £150,000 through an intermediary company, Castlebrook
Associates Limited and that, during the time the loan was active, the MP
“assisted Mr Joukovski in his dealings with” the Financial Conduct Authority.
But but
but: While the commissioner concluded that the loan should have been registered
and declared when writing to the FCA, she was satisfied the money had “not influenced
Mr Warburton’s words or actions as a member” and that his letter “did not
amount to paid advocacy.” Warburton has accepted the watchdog’s position and
apologized for a breach of the code. He’s also agreed to log the loan on the
register of MPs interests. Full verdict here.
THE
HEADLINES WRITE THEMSELVES: Owen Paterson, who once called for Britain to leave
the European Court of Human Rights to be abolished, is taking British
authorities to … the European Court of Human Rights after a probe found he
breached parliament’s lobbying rules. More here.
CAMPAIGN
CORNER
THE CARING
CRUNCH: Debate in Westminster may be raging over the state of the NHS and the
strains on the social care system, but across the country an army of unpaid
carers is quietly looking after loved ones who need help with illness,
disability and aging.
Campaigning
charity Carers UK estimates that 6.5 million people in the U.K. provide unpaid
care for family members and friends — but it’s now warning that these people
face a bleak winter as public services struggle and the cost of living soars.
And it’s trying to persuade the Treasury that acting to better support carers
is an investment, not just a money sink.
Services
straining: Emily Holzhausen, director of policy and public affairs at Carers
UK, tells Influence that a functioning social care system “is absolutely vital
for people to juggle work and care — and for people to have breaks.” Yet
waiting lists keep on climbing, and there’s no end in sight for the
long-running funding dilemma that’s vexed successive governments.
Treatment
delays: Meanwhile, rising health service waiting times aren’t just hitting
people in need of care — it’s also taking its toll on carers themselves. Carers
UK’s latest research shows that some 34 percent of carers have been waiting
over a year for treatment, which Holzhausen says “is putting enormous pressure
on their health and wellbeing and ability to care” at the same time.
Cost of
living crisis: On top of all this, mounting inflation is eating into the
limited financial help which is available for already hard-pressed carers.
While the charity welcomed Jeremy Hunt’s autumn statement decision to increase
key benefits in line with inflation from April, it’s not convinced that the
Carer’s Allowance — a payment currently set at £69.70 a week for people who
give at least 35 hours a week of care to someone already in receipt of benefits
— goes anything like far enough. Carers UK had been hoping for a £500 one-off
payment to help recipients through the come winter, as well as changes to the
payment to better support people working part-time.
Why that’s
needed: The charity’s research shows that two in five of those in receipt of
Carer’s Allowance are already in debt as a result of their caring obligations.
“It’s really challenging,” says Holzhausen, “because is quite often a private
matter and it can be very invisible. So when we have challenges in public
services, we often don’t see the increased amount of care that families start
taking on. But that can have a really big impact on their health and wellbeing,
their ability to juggle work and stay in work, and on their relationships — as
well as obviously on their finances.” Holzhausen says the charity is already
hearing from carers “who are cutting back on meals” and on the heating “they
desperately need to keep well” as energy bills climb, raising the prospect that
more and more will find it harder to keep on top of all their commitments.
Invest to
save: As well as calling for more targeted financial help for the people it
supports, Carers UK has been urging the government to make “sustainable
long-term investment” in the social care system. Holzhausen warns that if more
places aren’t made available, carers may have to pare back their employment
hours in order to keep up with their commitments to the family and friends who
need them. “We should be seeing it really as an economic investment,” she says
of social care.
“It’s not
right that somebody has to give up work to care, and faces poverty because
they’re looking after their mum with dementia,” she adds, “or because their
partner has a stroke, or because they have a disabled child and the care is so
complex that it falls through all the time and it’s impossible for them to
work. You know, we need to look at this differently to make sure that families
are supported.”
ON THE MOVE
Agency
Lansons unveiled a smattering of new advisers, including columnist and former
Tony Blair speechwriter Philip Collins; Sarah Bates, chair of the John Lewis
Partnership Pensions Trust and co-founder of the Diversity Project; Shereen
Daniels, author and managing director of HR rewired; and David Wheldon, former
CMO of the Royal Bank of Scotland.
Hanbury
Strategy associate director Jamie Williams is making the leap to Labour as
Shadow Justice Secretary Steve Reed‘s adviser. He’ll be focusing on comms and
media.
Felicity
Handley joined Hanbury as an associate director, after a spell as public
affairs manager at BRE.
Katarina
Stawska-Hughes joined Sovereign Strategy as a senior account manager. She was
previously business relations and endorsements manager at Labour, and has
worked for UK Trade and Investment.
Dods
long-serving political engagement manager Alexandra Hancock is off to become
public affairs manager at UK Sport.
Consultancy
Lexington named Sally Donovan-Smith as its new head of healthcare brand and
medical communication. Donovan-Smith has worked for a host of pharma firms
including Sanofi and Novartis, and latterly led corporate comms at health data
firm Lumanity.
Global
Counsel bagged UK Finance’s David Song as an associate director for financial
services; as well as Rud Pedersen’s Constantine Arvanitis as senior associate
on the same beat.
Sophie
Adelman is the new director of speechwriting and research at the London Stock
Exchange Group. She was most recently head of strategic comms at the Cabinet
Office.
Max
Sugarman is the new chief executive of trade group Intelligent Transport
Systems after a spell as head of policy and public affairs at the Catapult
Network. Sugarman’s also co-chair of PR body the CIPR’s public affairs group.
Peter Smeed
is the new lead for public affairs and policy engagement at Digital Catapult,
moving from science and tech
agency
April Six.
Speaking of
the CIPR: Check out the latest names making up the body’s public affairs group,
including DeHavilland’s David Boot and Conservatives in Comms chief Adam
Honeysett-Watts.
Royal
College of Nursing comms director Nicole Valentinuzzi moved to become assistant
director of external relations for Mayor of London Sadiq Khan at City Hall.
FGS
Global‘s Sachin Gulrajani joined the Food and Drink Federation as a senior
public affairs executive.
Dominick
Moxon-Tritsch is the new VP for public policy in Europe at groceries start-up
Getir. He’s previously worked for Bolt, Hermes and Addison Lee.
Amen Tesfay
is joining games industry lobby UKIE as policy and public affairs officer. It
follows a stint with Hanbury.
Bright
Blue’s Phoebe Arslanagić-Wakefield moved on to become senior policy adviser for
Impetus.
Mea culpa
(a weekly feature): A recent Influence gave the wrong job title to Bright
Blue’s Max Anderson. He’s actually been promoted to comms manager at the think
tank, but in our defense we are totally rubbish at journalism and always tired.
Jobs jobs
jobs: TikTok‘s after a child safety public policy lead … Energy firm SSE is
hiring for a public affairs and policy manager … Amnesty International is
hunting for a global head of news and media … Public affairs and campaigns
manager gig going at Centrepoint … Water watchdog Ofwat‘s recruiting for a head
of external affairs … Two comms jobs going at the Information Commissioner’s
Office.
Thanks: To
Kate Day for taking roughly 10,000 words out of this, including the extended
essay on everyone who has ever wronged Influence.
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