And The Winner Is...

As the dust settles on the battlefield that was the 2010 General Election, it is now possible to identify some big political winners and losers. The election promised to be a bloody encounter, with the aftermath resembling the Battle of Naseby, but for all its pre-match hype the election descended into a bizarre episode of It's a Knockout, where the result is rather inconsequential, but everyone enjoyed the ride. With Sky News' "political heavyweight" Adam Boulton as the over overexcited Stuart Hall, demeaning the contestants at every given opportunity as they attempt to carefully manoeuvre themselves through a political obstacle course.

On the surface it is possible to assert that David Cameron and the Conservative Party won the election, they won more seats and more of the popular vote than their rivals. However, given the unpopularity of the incumbent Prime Minister and government, the state of the economy, unemployment and the spectre of the Iraq War, this Tory victory almost feels like a defeat. The result - an unsatisfactory coalition with the Liberal Democrats and an election that the Bank of England Governor Mervyn King believes will leave the winning Party out of power for a generation due to the unpopularity of the necessary austerity measures. Parallels could be drawn with the 1992 General Election, in which neither the Labour or the Conservative Parties particularly wanted to win due to the gathering economic storm, and ultimately Labour's short term defeat was their long term gain.

Again a case could be made for the Liberal Democrats and Nick Clegg as the big winners of the 2010 General Election; an increase in their share of the popular vote, increased exposure on a national level and the possibility to influence legislation at a cabinet level. But, and there was always going to be a big but, are the Liberal Democrats trading short term influence for long term obscurity . Many voters feel betrayed that the Lib Dems are propping up a Tory administration that are ideologically significantly separate and are going to be used are a tool for David Cameron to modernise his own party. It will be too easy at the next general election for the Conservative Party to blame the Liberal Democrats for the failings of this current administration. Damned by both sides of the party, the Liberal Democrats could spend another thirty years waiting for a taste of power.

If there is a significant loser in this election there is little argument that Gordon Brown has achieved this most dubious of accolades. But it always was likely to happen, any incumbent Prime Minister has a record to defend and Gordon Brown just was not that good at defending his legacy. However, the Labour Party could be the big winners of the election in the long term, even though the electorate roundly rejected their current reincarnation. There obviously is a will amongst the British electorate for a progressive policy agenda, and probably the Labour Party would have polled better if Gordon Brown was not in power, but the loss was not a rout as many commentators had predicted. If the Labour Party reorganise and realign themselves during their period in opposition the next election could be a significant success - if Mervyn King is to be believed.

And the winner is... No one!

Fear and Loathing on the 2010 Tory Campaign Trail...

Harold Wilson once perfectly defined the British political landscape with his truism that a "week is a long time in politics", and for David Cameron the last week has possibly felt more like an epoch rather than just a long time. The only other person that can truly relate to this incredible sense of time distortion is the Chinese tanker Captain who crashed into the (not so insignificant) Great Barrier Reef, after sailing through illegal shipping lanes, causing untold environmental damage. He knew the outcome a long time before the accident happened, but he still tried in vain to turn the ship around, but those tankers take a lot of turning and the crash was inevitable.

This general election has already thrown up a few surprises (the Lib Dems second in YouGov latest opinion poll, anyone?), but the biggest surprise of the whole election campaign is the Tories inability to gain any significant political momentum. Given the economic conditions and the unpopularity of the incumbent government, the Tories must have believed that the election would be an easier fight than it has been...

The constant media references to the similarities between David Cameron and Tony Blair, have been somewhat misleading - giving the impression that the 2010 general election was going to be an inverse repeat of 1997, in which Labour swept to power on a popular tide of goodwill and hope. Probably a more insightful comparison would be to compare this election with 1992: the opposition in both examples are trying to reinvent themselves, attempting to throw off the shackles of negative public opinion and a lack of trust. Plus the rising spectre of increasing tough economic conditions, in which the harsh realities of a global recession will come to bear - the public may just be comforted by the devil they know.

There are several key factors which are impacting upon the Conservatives inability to gain a significant lead in the opinion polls:

• The Shadow Cabinet is weak and unable to connect with the public - in 1997 the Labour Shadow Cabinet was a significant strength of Tony Blair's election strategy, whether it was Robin Cook, Mo Mowlam, Gordon Brown, Jack Straw or David Blunkett; the Cabinet was prompted as a 'Cabinet of Talent'. Currently the Conservatives are appearing to focus solely on David Cameron and George Osborne, sidelining the poor(!) Chris Grayling for fear of costly gaffes. Even John Prescott was given meaningful airtime in comparison.

• Lack of a coherent message - the main focus of the Conservatives' election manifesto is the 'Big Society' in which the public can effect the running and management of many public institutions. The issues for most people are rooted in real problems, employment, transport or education, but the Tories have proposed an abstract concept that generates few pragmatic solutions for real issues. The Labour Party in 1997 offered a tangible response to the genuine concerns of the nation. The 'Big Society' is perceived as empty rhetoric, from the party that once claimed that "there is no such thing as society".

• Whilst other parties are weak on the topic of Europe, the Conservatives can not exploit their advantage - in the public's opinion the European Union is at a particularly low point, the rise of UKIP is testimony to this fact. The Labour Party and the Liberal Democrats are potentially committed to further European integration, but David Cameron is wary of using the populist EU stick to beat his opponents for fear that it may open old wounds, in the Conservative Party, that have only been plastered over - not healed. Witness the undercurrent of discontent at the 2009 Conservative Party conference, with David Cameron's pledge that if the Lisbon Treaty was ratified the next Tory government would work within its parameters.

• David Cameron's inability to connect with many of the electorate - whether this is due to old fashion class prejudice or the perception that he is style over substance, David Cameron has struggled to find a voice that speaks to a majority of people. This is not helped by an advertising campaign, organised by Andy Coulson, that appears to be confused and artificial. Most elections that are fought on the concept of 'change' have their vanguard amongst a section of the population that have been under-represented in previous regimes; youth, working class or ethnic sections of the community. It is difficult for the general public to believe that a privileged and wealthy white man is sincere about significant change - also it is not a typical election pledge by a party that is perceived to be more concerned with the conservation of society rather than its radical overhaul.

• The inability of the Conservative Party to reassure the public that the recession would have been better under their guidance - even though there are significant differences between Labour and Tory economic policy, it would have been impossible for the Conservative Party to have claimed that they would have avoided the recession with tighter regulations of the banking sector. After all it was the Conservative Party that actively encouraged deregulation of the finance sector allowing 'bankers' the freedom to recklessly gamble the country's economic stability by chasing larger profits.

 The Chinese tanker Captain and David Cameron have both discovered something important in the last fortnight - big ships take a long time to turn so it's vital to make sure that you have plotted correct course before you sail.

It's A New Dawn, But Same Day

Another month and another indicator that the British economy is slowly lurching out of recession. The Halifax have announced that house prices in Britain have risen by 1.2% in October and which represents a slight fall of 1.5% compared to a year ago, which is the smallest decline in the year on year statistic since this credit crunch began.

This, as a simplistic statistic, can appear to be encouraging news for the economy, demand increasing which implies that more people have renewed faith in their economic futures. Also the access to credit is becoming more freely available, so good news all around...

Not quite. Beneath the encouraging facade of these statistic, lays an uncomfortable truth; the rise in house prices might indicate economic recovery, but they almost definitely indicate a huge shortage of new houses. This short fall distorts the simple concepts of supply and demand, in which demand is relativity constant and supply is so small that drives up the price to the extent that it matches demand.

Until recently, people in the UK needed relatively easy access to credit in order to purchase a modest property, this can be seen in the incredibly dangerous mortgage deals that allowed people to borrow at six times their own salary. The result was this only masked the housing short fall, but did not attempt to solve the underlying issues.

Furthermore, the low interest rates that mortgage holders are currently enjoying are further masking this most serious of problems. The Government has lacked a coherent housing policy since 1997, arguments between government and councils are common place, but it is the government that should display effective leadership on the matter.

If the government does not address the serious issues in their housing policy Britain is doomed to repeat the simple mistakes of the past...

Quango and Cash

The quasi-autonomous non-governmental organisation (or for simplicity sake the Quango) has again become the political focus of a party in opposition. These organisations have always been an easy target due to their size, power and budgets; according to The Guardian there are 790 Quangos with a combined budget in excess of £34 billion.

Quangos are a simple target for the opposition as proven by Margaret Thatcher, Tony Blair, Gordon Brown and now David Cameron. Since the Quango, like the Civil Service, must remain politically impartial it becomes very simply to score political points off these organisations. It is similar to winning a debating competition where one participant has gagged and chained their opponent.

Furthermore, there has been little in the way of inspiration leadership from David Cameron, recently it almost seems that he is playing 'leader-of-the-opposition by numbers';

1. first attack the Governments public spending plans,
   
2. then mention how the opposition will increase efficiency of the public sector therefore saving the tax payer billions,
   
3. and finally attack Quangos

But like all leaders of the opposition before him, Mr Cameron has yet to outline what will replace these megaliths. It is very easy for Mr Cameron to comment that he will reduce the number of Quangos, but these institutions were created for a reason and currently do serve a purpose. So any organisation that replaces these Quangos will potentially have similar budgets and be similarly accountable.

Admittedly there needs to be reform of the system of Quangos, in terms of accountability and transparency, but to return them to their original government department would create a similar megalith just under a different guise and in a different place.

The result would be the next leader of the opposition would attack the size of the bureaucracy and government. Now that is a vicious circle...