Britain

Blighty

  • Ed Miliband and the voters

    Labour's stunted progress in the polls

    Apr 20th 2011, 17:23 by J.G. | LONDON

    WE HAVE reviewed Ed Miliband's performance as Labour Party leader in the Britain pages this week. Having only squeaked a victory over his brother, David, for the party crown last September, and even then without the backing of Labour MPs or activists, little was expected of him. He has defied the bleakest of those prognostications: Labour are a united party, his performances in Parliament are now consistently solid, he has a clear strategy and he has wounded the government with attacks on both its competence and its social conscience. Doubts remain, however, particularly about his grasp of where the centre-ground in British politics really lies, and about his basic plausibility as a prime minister. The first of these problems can be worked on; the second might be more stubborn.

    The opinion polls are currently interesting. I expected Labour to be at least 10 percentage points ahead of the Tories by now, and perhaps 20 points ahead by the middle of this Parliament. The political cycle of the 1980s, when the government was loathed between elections but recovered in time for polling day, seemed to be on its way back. Mr Miliband's plan should be to practise a kind of electoral Keynesianism: rack up huge poll leads while the government is unpopular, so that the inevitable contraction that comes towards the end of the Parliament is affordable. But instead of building up a comfortable buffer, Labour has seen its lead narrow to the low single-figures, and the latest Ipsos MORI poll has them level with the Tories.

    Of course, it is still early in the Parliament. Labour could pull away as the government's spending cuts bite. But for the Tories to be roughly where they were at the last election should really perturb Mr Miliband's strategists. What if the prospective cuts have already been priced-in by voters? After all, they have been exposed to relentless talk of fiscal savagery for a year now, as well as thunderous protests and campaigns against the austerity programme. Unless the cuts turn out to really wound ordinary voters en masse, it may be that Labour's poll lead remains modest throughout the next few years. If so, the government resurgence that usually happens in the run-up to a general election (which is likely to be helped this time by an economy that is growing healthily by 2014/15) would not have to be very spectacular to wipe out Labour's advantage.

    This is conjecture, of course. There are four years, myriad cuts, and unforeseen events to come. But Mr Miliband must keep a nervous eye on those polls.

     

     

     

     

  • The Economist-MORI issues index

    Libya rising

    Apr 13th 2011, 18:11 by A.G. | LONDON

    Graphic showing what worries the BritishCONCERNS about the economy continue to weigh heavily on the minds of the British people, according to the April issue of The Economist/MORI issues index. Asked what was the most important issue facing the country, some 62% answered "the economy", up by eight percentage points on March. Economic worries dominate less than they did when David Cameron became prime minister in May 2010, but remain higher than they were when the nation breathed a sigh of relief as the end of the recession was announced in January that year.

    The polling also picked up rising concern about defence, foreign affairs and terrorism: 22% of Britons thought it the most pressing concern, up six percentage points on the previous month. That looks set to continue: following international talks about the crisis held in Qatar today, foreign secretary William Hague said Britain would offer more help to the Libyan rebels who first rose against Muammar Qaddafi almost four weeks ago. He had earlier told BBC Radio 4's Today programme that the situation in Libya was "fast-moving and unpredictable" and said he could not say when the crisis might end.

    All of which leaves less time for fretting about race relations and immigration at home: the downward trend that began when Mr Cameron took office has continued pretty much constantly and dipped strongly this month, falling nine percentage points to just 17%, the lowest level since April 2002. It is the first time in 18 months that race relations and immigration has fallen out of the top three concerns (unemployment is also a big worry).

    On the public services front, concern about the National Health Service increased slightly, despite-or perhaps because of-health secretary Andrew Lansley's pledge to halt, temporarily at least, sweeping reforms to the way in which hospital care is commissioned. That said, it is still extraordinarily low historically, at less than half the level when the Tories were last in charge in 1997. Schools, colleges and universities remain off the radar: just 14% of people think them important.

  • The takeover of Arsenal

    The most English of football clubs goes American

    Apr 12th 2011, 15:16 by J.G. | LONDON

    ANOTHER year, another foreign takeover of an English football club. Stan Kroenke, an American property magnate who married into the Wal-Mart retail dynasty, now owns 63% of Arsenal Football Club and is to make an offer for the rest. The club, which is valued at £731 million, becomes the last of England's "big four" to come under overseas control, following Chelsea, Manchester United and Liverpool. Other major clubs, such as Manchester City and Aston Villa, have also passed into foreign hands in recent years.

    Some foreign owners are attracted by the prestige and glamour of what is the most popular league in the most popular sport on the planet. Roman Abramovich, the Russian who bought Chelsea in 2003, and Sheikh Mansour bin Zayed Al Nahyan, an Abu Dhabi royal who took over Manchester City in 2008, are often put in this category. Both have sunk enormous sums of their own money into buying players and modernising their clubs' infrastructure. Both appear to want the return on their investment to take the form of trophies rather than profit. 

    Mr Kroenke, who is much less wealthy, is thought to have a cooler focus on the bottom line. His stewardship of his various American sporting franchises, such as the Denver Nuggets basketball team, has been sober and strategic. People close to him talk in awestruck terms of football's global appeal; no American sport comes remotely close to matching its imperial reach. Arsenal are expected to become more ruthless in exploiting these far-flung markets, perhaps starting with a money-spinning tour of Asia in the summer, the kind of thing they have usually eschewed.

    Arsenal, based in north London, are some catch. The club has won the league more times than any other bar Manchester United and Liverpool. It dominated the English game before the war and has never been relegated out of the top division. If the size of a club is measured by its historic achievements and fanbase, it is by some distance the biggest club in the biggest city in Europe. Despite failing to win a trophy since 2005, it is well-positioned for the future. It has a young team and a modern 60,000-seater stadium, built in 2006, that is thought to generate more income per matchday than any regularly used venue in any sport.

    Once upon a time, the club was also revered as the ultimate in Englishness. Londoners of a certain age still refer to it as "the Arsenal". It was founded by workers at the Royal Arsenal, which manufactured firearms for the British military (the club's logo is, to this day, a cannon). Its owners have usually been a curious mix of self-made Jewish north Londoners and aristocrats with cartoonish names such as Sir "Chips" Keswick and Lady Nina Bracewell-Smith. For its perceived probity and grandeur, it was once known as "the Bank of England club". Its old stadium was so pretty that it was listed for protection by the National Trust, which is partly why the club could not expand the Art Deco venue.

    Most of this Englishness has faded over the past 15 years: the club's manager is French, its squad is multi-national even by football's cosmopolitan standards. Still, Arsenal's status as the last English-owned club of the big four was something it was quietly proud of, and will be sorry to lose.

  • National Union of Students

    So farewell then, Aaron Porter

    Apr 11th 2011, 14:13 by A.G. | LONDON

    Image of Aaron Porter

    Youth leans to the left. For the past four decades the National Union of Students (NUS) has been led mostly by presidents affiliated to the Labour Party, many of whom have since been elected to Parliament, the occasional independent and a handful of militants. On April 13th students meeting at their national conference in Gateshead will determine which left-leaning candidate will lead them next.

    The election is interesting because it is unexpected: an NUS president normally serves two terms but the current incumbent, Aaron Porter, decided against standing for re-election. Mr Porter, who has been a member of the Labour Party since 2006, cites the recent decision by the Conservative-Liberal Democrat coalition to allow English universities to charge up to £9,000 ($14,500) in annual tuition fees as the reason for his early departure.

    It was not just his failure to stop tuition fees from being raised that made him unpopular, Mr Porter infuriated many of the students he led for claiming success where they smelled failure. Like the LibDem leader and deputy prime minister Nick Clegg, he says he is proud of having secured generous government-backed loans for future students. Yet Mr Porter faced calls for a vote of no confidence in his leadership and, unlike Mr Clegg, concluded that the time was right for a new person to represent the interests of students as the new fees are introduced in September 2012

    Mr Porter riled the hotheads because, while they protested on the streets, he kept his cool, favouring lobbying over direct action (he was a regular guest on BBC2's Newsnight). He participated in the student march in November 2010, before the vote was taken in Parliament to allow English universities to charge higher fees, but condemned the students' trashing of Conservative Party headquarters and declined to support a further demonstration. Soon after he found himself being escourted to safety by police from a student rally he was due to address in Manchester. (Incidentally, the Jewish Chronicle reported that Mr Porter was subjected to anti-semitic abuse at that event; oddly, it said the same of his predecessor Wes Streeting two years earlier; and neither man is Jewish.)

    Healing the rift between the anger expressed by young people on the streets and their political representatives in office will be high on the to-do list of the next president, who will be chosen not by individual students but by the leaders of the university- and college-based unions that purport to represent them (young people are notoriously shy of voting, even for student presidents). Two of the four candidates standing for election come from within the organisation, and a third is closely involved.

    Shane Chowen, who spoke to the Manchester crowd when Mr Porter retreated and was pelted with eggs for his trouble, is a vice-president of the NUS. Mr Chowen has never enrolled at university: he represents those students who are educated in further education and sixth form colleges and thinks they should be given the same favourable terms on loans and grants as undergraduates receive. Should he be elected, he would be the first non-graduate to lead the NUS. Tipsters reckon the gap between him and his cloest rival, Liam Burns, who is president of NUS Scotland, is extremely narrow.

    Mark Bergfeld is a member of the NUS national executive council and takes the most militant stance of any of the presidential candidates, opposing the priniciple (first embraced by the Labour Party in 1998) that those who receive higher education should pay for it. Thomas Byrne has held no post in the organisation and is highly unlikely to win election but believes-correctly, in my opinion-that it is not high tuition fees that deter poor students from university, rather it is the failures of the state-school system.

    Mr Porter, meanwhile, says he has no desire to emulate Jim Murphy, who entered Parliament within a year of stepping down as NUS president and now serves as shadow secretary of state for defence. (Former home secretary Jack Straw and former education secretary Charles Clarke are also ex-NUS presidents, as was disgraced former MP Phil Woolas.) He would be well advised to wait awhile for the political stink to disperse.

  • Nick Clegg in Mexico

    Bilingual, and bi-opinioned

    Apr 6th 2011, 10:41 by T.W. | MEXICO CITY

    WITH a strong Castilian accent that amused and impressed his Mexican audience, Nick Clegg lisped his way through a tour of Mexico City on March 29th. The aim of the trip was to gee up transatlantic trade. But the next day's headlines in Mexico focused on the support that Mr Clegg expressed for the country's increasingly bloody fight against drug-traffickers. "United Kingdom endorses the fight against crime," said the headline in El Universal. "English government offers to support the anti-narco fight," announced Reforma, picking out a quote in which Mr Clegg told Mexico's president of his "admiration for the bravery that you and your government have shown in fighting against organised crime and drug trafficking."

    Is that really what Mr Clegg thinks? In the past, he and his party have been highly critical of the war on drugs, in Britain and abroad. As the Liberal Democrats' home affairs spokesman in 2007, Mr Clegg claimed that "the so-called war on drugs is failing", following the publication of a critical report by the RSA, a think tank.

    A few years earlier, the Lib Dem party conference had voted in favour of legalising-not just decriminalising-cannabis. One Lib Dem policy paper describes the system of prohibition as a "failure", explaining that: "Prohibition of drugs means that their supply is in the hands of criminals, who by definition operate clandestinely and beyond the scope of the law. Under the existing system it is not possible to regulate or control the supply in terms of quality, conditions of supply (e.g. age limits, sobriety), and price."

    In Latin America, it says, "Crop eradication has no proven track record of success in reducing global drug production, or street price and availability in the West. Local successes simply cause production to increase elsewhere. For example, reductions in coca fields in Bolivia and Peru from 1996 onwards led to an increase in cultivation in Colombia."

    Oddly, there was no mention of this on Mr Clegg’s Mexican adventure. Instead, the deputy prime minister only expressed repeated admiration for the "courage" that Mexico has shown in pursuing the policy that he very recently described as a failure. Mr Clegg was hardly likely publicly to slam the flagship policy of Mexico's president, Felipe Calderón. But nor was he obliged to give it such unquestioning support. Mr Calderón himself has called for a debate on legalising drugs (though he has made clear it is not his own preferred option), and the past two presidents of Mexico, Vicente Fox and Ernesto Zedillo, have come out in favour of legalising at least some drugs since they left office.

    As part of a coalition government, Mr Clegg often finds himself defending policies he has previously not been keen on. But in the case of drugs, he's not the only member of the government to have changed his mind rather radically. In 2002, David Cameron was a member of the parliamentary home affairs select committee that produced a landmark report on drugs, recommending among other things "that the Government initiates a discussion within the Commission on Narcotic Drugs of alternative ways-including the possibility of legalisation and regulation-to tackle the global drugs dilemma." At the time, Mr Cameron declared: "Drugs policy in this country has been failing for decades... I hope that our report will encourage fresh thinking and a new approach."

    The old approach now seems more popular with both the prime minister and his deputy. For Mexico, where 35,000 people have been killed by organised crime in the past four years, it’s a shame that both men seem to lack the cojones to say what they really think about the "failing", "so-called war on drugs".

  • Cutting public-sector bureaucracy

    Under the knife: The front line needs the back office

    Apr 5th 2011, 11:06 by Under the knife

    "Any cabinet minister, if we win the election, who comes to me and says 'here are my plans' and they involve front-line reductions, they'll be sent straight back to their department to go away and think again." - David Cameron, speaking on the Andrew Marr Show before the general election last May

    When it comes to public-sector spending cuts, there seems to be a near-universal consensus that front-line services should be prioritised, and funding cuts should fall on back office departments and staff. On the face of it, this sounds sensible: it is the front-line staff who actually provide a service to the public–the nurses, the teachers, the police officers and so on–so surely it makes sense to leave them untouched and get rid of a few surplus desk-jockeys if economies need to be made. I am oversimplifying, of course, but even I find the reasoning superficially compelling, despite the fact that it is effectively suggesting I should be out of a job (I deal with patients, but since I am not doing anything clinical I doubt I am really what most people have in mind when they talk about front-line staff).

    Unfortunately, though, things don't tend to be quite so cut-and-dried. Getting rid of paper-pushers doesn't get rid of the paper that needs pushing. All it does is push the responsibility for dealing with it onto those people who still have their jobs, regardless of whether or not they would normally be on the front line.

    The clinicians in my department already have to take on my workload if I take a day off (there isn't the budget to pay for a temp). If my job disappeared tomorrow, appointments would still need to be made, the phone would still need answering and letters to GPs would still need writing. None of these are optional extras that can be jettisoned to save a few quid.

    Admin posts are already starting to go at my hospital (albeit without compulsory redundancies so far, thankfully), but the admin workload isn't magically going to shrink to match. All that will happen is that we lucky ones who keep our jobs will have to work harder and, if there aren't enough admins around, then all the nurses, therapists, lab techs and other specialist staff are going to have to spend more of their time doing paperwork and less doing what they are actually trained and qualified to do. Which, needless to say, is going to hit front-line services pretty hard. Hospitals are not alone in this, it is also happening to the police force in Warwickshire, for example.

    This is not to say that all the paperwork done in hospitals or police forces is essential. I am sure it would be possible to reduce public-sector bureaucracy, though anyone who tried it would probably be surprised at how much hospital admin genuinely does serve a useful purpose. And if unnecessary form-filling were eliminated, then the hospital could almost certainly get rid of a few clerks and middle managers quite happily. But I don't know anyone in my hospital who expects the level of bureaucracy to decline significantly and soon. I am sure there are genuine efficiencies that can and will be made in the NHS as the spending cuts bite, but make no mistake: front-line services are sure to take a hit as well.

  • The Economist-MORI issues index

    The politics of the pump

    Mar 30th 2011, 17:38 by T.C. | LONDON

    The March issue of the Economist/Ipsos-MORI issues index is out. The Index asks respondents to list the "most important issues facing Britain". Data goes back as far as 1974, making it an interesting guide to the vicissitudes of public opinion over the years.

    Unsurprisingly, the economy remains the biggest concern, with 54% of respondents mentioning it, although that is down significantly (by six percentage points) since February's poll (bear in mind that the polling was not conducted recently enough to account for the lowered growth forecasts in last week's budget).

    A related worry, unemployment, bothers 25% of those answering the questions, although concern here has eased a little as well, by three percentage points. Race relations and immigration is the second most-mentioned issue.

    But the thing that has shot up over the past few months is concern over fuel prices, which has risen by 7 percentage points since Feburary's poll, to the highest level since July 2008, when oil prices peaked at $147 a barrel, a record in nominal terms. That makes George Osborne's concession last week on fuel tax look politically astute - although cutting petrol tax by a penny a litre is not going to provide a great deal of relief with prices reaching £1.33 a litre or more in some parts of the country. The concern over high petrol prices is particularly acute among the poor (21% fret about it), country-dwellers (20%) and Scots (27%).

    All this matters: Whitehall still retains institutional memories of the fuel price protests in 2000, which came out of a clear blue sky and saw oil refineries blockaded by angry truckers and farmers, queues at petrol stations and a disastrous dip in the opinion poll ratings of the governing Labour party. If oil prices continue to rise, Mr Osborne may decide more drastic action is needed.


    I've made the point before, but another striking feature of these polls is the degree of apparent satisfaction with public services. Concerns about the NHS, in particular, are at a decadal low (see chart). Given the controversial nature of the coalition's planned reforms, our polling suggests that, to borrow a bit of banking jargon, there are plenty of downside risks and hardly any upside. That may explain why even cabinet ministers are reputedly getting nervous about Andrew Lansley's plans, and why there is now talk that they might be watered down.

  • The anti-cuts march

    Ed Miliband's bad timing

    Mar 26th 2011, 15:29 by J.G. | LONDON

    FOR those of you not watching the television coverage of today's march against spending cuts in central London, let me offer you a vignette. On a big stage in front of the bulk of the protestors in Hyde Park, Brendan Barber, the head of the Trades Union Congress (TUC) warms up for Ed Miliband, the Labour leader, by screaming into the microphone about the injustice of the government's austerity mission. Meanwhile, Harriet Harman, Labour's deputy, stands to his side while Mr Miliband waits at the back. So far, so bad. Viewers who worry that the current Labour leadership is beholden to the unions and public-sector vested interests will hardly be changing their minds.

    Then the public-relations nightmare really begins. At the exact moment that Mr Miliband arrives at the lectern and begins speaking, black-clad protestors who had broken away from the main march begin misbehaving in the shopping areas of Regent Street and Oxford Street. Topshop, the high-street retailer accused of tax-dodging by many of the protestors, comes under assault. Various other shops close down as a precaution. The Metropolitan Police have just tweeted that some of their officers have been attacked by lightbulbs filled with ammonia.

    The television coverage shows footage of all this happening while the disembodied voice of Mr Miliband, speaking in Hyde Park, compares the march to the Suffragette cause, the civil rights movement in America and the anti-apartheid protests in South Africa. As the words "David Cameron, this is the big society!" tauntingly leave his lips, viewers are treated to the spectacle of police officers being charged at by protestors. Mr Miliband finishes his speech by invoking Martin Luther King.

    This embarrassing juxataposition of the speech with the violence is, according to some angry left-wing bloggers and tweeters, the dastardly work of Sky News. They are mistaken. I was watching the coverage on BBC News, who were carrying the same images and the same speech. How could they not?

    Now, of course, Mr Miliband was unable to see what was going on a mile of two away from Hyde Park. And it was a pure accident of timing that one breakaway march (which amounted to a tiny fraction of the hundreds of thousands peacefully demonstrating) turned ugly just as he began speaking.

    But it was his choice to address the rally in the first place, the latest stage in his curious political strategy of appealing to people who are already certain to vote Labour. It was his choice to go for the moral bombast of the apartheid and civil rights allusions in his speech, which were hostages to fortune. And he must have known that some kind of violence would take place today: it is only three months since the smashing-up of Parliament Square by protestors opposed to higher university tuition fees. Those few seconds of news coverage will have reached many viewers (it is Saturday, after all) and those who did not see it will probably have it brought to their attention in the coming weeks by the Tories' attack operation, who must not be able to believe their luck.

    It is not just the violent fringe of these protests that are a threat to Labour's credibility and electability, though. As Bagehot blogged yesterday, and as Philip Collins wrote in The Times, the decent and good-natured majority of the anti-cuts movement are often wilfully oblivious to the need for any spending cuts at all, and "the alternative" they campaign for is the old standby of getting assorted tycoons, banks and corporations to pay more in tax. Labour's decision to associate itself so closely with these groups (who, in their soft-headedness, are worryingly evocative of some of the company Labour kept in their 1980s dog-days) is, quietly but surely, damaging the brand of a party that is already seen by voters as too left-wing. It may also make Labour look swivel-eyed and perpetually angry, in the way the Tories once did.  In the short term, backing the protests might help rattle the government. In the long term, which slice of the electorate is Mr Miliband hoping to win over that he cannot already count on?

    As I watch the television coverage of the march making its way through London, and of an HSBC branch being smashed up by anarchists, my eye is drawn less and less to the angry protestors and more to the ordinary people milling around looking perturbed. Some are foreign tourists. The rest are called voters.

  • Nick Clegg caught on mic

    Coalition leaders in agreement shock

    Mar 25th 2011, 13:58 by J.G. | LONDON

    THIS is becoming absurd. It is understandable that a politico-media class that has not known a coalition government since the war sometimes struggles to grasp that the country is now governed by two parties who agree on much. It is also understandable, though in my view wrong, that many people dislike Nick Clegg for supposedly giving in to the Conservatives on major policy issues, such as the speed of deficit-reduction and the raising of tuition fees.

    But none of this justifies the hysteria that has met the deputy prime minister's off-hand (but, unknowingly, on-mic) quip to David Cameron as the two were making their way from a public appearance yesterday. After finding himself in agreement with the prime minister on most things during the question and answer session in Nottingham, which ended with a question about the new custom of televised debates between the main party leaders before general elections, Mr Clegg was caught saying to Mr Cameron: "If we keep doing this we won’t find anything to bloody disagree on in the bloody TV debates.” The clip is here.

    Apparently, this remark is controversial because it "proves" that Mr Clegg is failing to stick up for Liberal Democrat views within the coalition, preferring instead to go along with the Tories. Never mind that Mr Clegg was indicating that the two leaders agree, and not that he disagrees with Mr Cameron but capitulates to his views through sheer weakness. Never mind that, had Mr Clegg been recorded expressing discord rather than consensus, the people now accusing him of supine timidity or closet Toryism would be dismissing coalition government as inherently riven and unworkable. Never mind that Mr Clegg was clearly just bantering, and that the most embarrassing thing about his remarks was his quaint public-school addiction to the word "bloody", a word increasingly deployed only by the same kind of people who say "jolly".

    Go back to last summer. In those early days of the coalition, when many doubted that two previously hostile parties really could make common cause, it would have been a mini-triumph for the government had Mr Clegg been caught saying what he said yesterday. Less than a year on, the spectacle of agreement between members of the same government is seen as something scurrilous. Clearly, many people are analysing the coalition with a fundamentally different kind of lens. I just doubt that they know why.

  • The 2011 budget

    Sound and fury

    Mar 23rd 2011, 16:24 by T.C. | LONDON

    THE annual budget speech is one of the great set-pieces of British politics. Ministers and civil servants burn the midnight oil for weeks, searching for precisely the right mix of stern rectitude and popular handouts. The details are kept a carefully guarded secret, apart from the string of carefully-planned leaks to sympathetic newspapers. When the big day arrives, the chancellor, clutching the red box containing the precious document, poses for his ritual photograph in Downing Street before heading to Parliament to given an hour-long speech covering everything from tax breaks on capital investments to the price of beer.

    Yet what if there isn’t much to say? There are big, serious arguments going on about the direction of Britain’s economic policy. The governing Liberal Democrat-Conservative coalition believes that fiscal rectitude is necessary to mollify investors worried by the scale of the country’s debts, and that cutting the deficit must therefore be the first priority. The opposition Labour party, for its part, thinks such talk is overblown, and argues that sharp public-spending cuts risk snuffing out the country’s fragile recovery.

    But you wouldn’t know any of that from the Budget speech itself, for despite the saturation press coverage, Mr Osborne’s announcements were rather thin. The general principle of  tax rises and eye-watering spending cuts to reduce the deficit had been set out in the coalition’s emergency Budget last June, and Mr Osborne did not deviate from that course. With the exception of growth, which at 1.7% for next year was lower than the 2.1% originally forecast, most of today’s fiscal projections were little changed from those outlined in the Pre-Budget Report—a sort of mini-Budget in its own right—in November. That left rather little for the chancellor to talk about.

    True, there were some headline-grabbing tweaks to the tax system, chief among them the abandonment of the “fuel duty escalator”, a tax on petrol designed to rise every year faster than the rate of inflation, and introduced by the previous Conservative government in 1993. Motorists have been fulminating over petrol prices of £1.33 a litre and more, much of which is accounted for by Britain’s high levels of fuel duty. Mr Osborne scrapped a planned increase in the tax due to take effect next month, and instead cut it by 1p per litre. The lost revenue will be made up by a £2 billion ($3.4 billion) rise in a tax applied to firms producing oil and gas from the North Sea, which will remain in effect as long as oil prices stay above about $75 per barrel. Other crowd-pleasers included a tax on private jets and a “crackdown” on tax avoidance schemes that aims to raise around £1 billion a year

    Things were thinner still on the spending front. Plans for state subsidies for young home-buyers (possibly unwise given Britain’s still-expensive housing) and more cash for big science facilities gave way to micromanaging announcements about railway routes in Manchester and a £100m fund to repair some of the potholes on Britain’s roads. A Green Investment Bank, intended to encourage spending on renewable energy, will be set up but will be forbidden from borrowing any money until 2015.

    With comparatively little to say about tax and spending, the chancellor was keen to talk up his plan for growth. The idea of a “pro-growth” budget is difficult for many Tories, who cleave to the view that the best thing the government can do when managing the economy is to adopt the Hippocratic principle of “do no harm”, and then get out of the way while the general population gets on with the business of wealth creation.

    Nevertheless, Mr Osborne announced a new generation of “enterprise zones”, a flashback to the 1980s under which firms in the designated areas (mostly poor urban places with state-dominated economies) will have their rents paid by the government, discounts on businesses rates and access to “super-fast” broadband. A presumption in favour of economic growth will be enshrined in planning law, which ought to make it easier to build houses, factories, roads, power stations and the like. Corporation tax will be cut by two percentage points this year, rather than the one point previously advertised, to 26%, and eventually to 23% by 2014—“the lowest in the G7”, said the chancellor proudly, although still almost double the level in neighbouring Ireland.

    So Britain will continue on its austere course. The next big set-piece will be the announcement of growth figures for the first quarter of the year, due out a month from now. The Office of Budget Responsibility, an independent economic forecaster, is predicting an expansion of 0.8%. If the figures come in substantially lower than that, the pressure on the Chancellor to change his mind will grow. But having argued so strongly for austerity, Mr Osborne will find it hard to change course even if he wants to. So ignore the flashbulbs, the parliamentary jeering and cheering and the speechifying. Some potholes will be fixed, petrol prices will come down a little and beer will get a little more expensive. But the big decisions have already been taken, and they will not be changed.

  • Choice in health

    Under the knife: The problem with choice

    Mar 22nd 2011, 9:41 by Under the knife

    When it comes to health policy, 'choice' has been the mantra of...well...choice for successive governments for about as long as I can remember. The current government's reforms, we're told, are not only going to transfer power from the tyrannical rule of managers and put it in the hands of GPs, but will also bring 'real patient choice' to the NHS for the first time.

    But a quick search of the Department of Health website reveals a plan for reform which promises to 'strengthen patient choice' from a full eleven years ago, and I'm sure a brief look through their paper archives would reveal documents saying similar things for many years prior to that too. I understand the motivation for this, though; everyone likes to feel like they have a decent level of control over their lives, and it's hard to deny that when it comes to availing themselves of public services, people can often be made to feel like they're very much in the passenger seat. Giving people options – about which GP practice to join or whether they really want to go in for surgery to deal with that trapped nerve, for example – gives them a much greater feeling of autonomy, and that can hardly be a bad thing, right?

    Well, sort of. The thing is, not much I've seen of working in the NHS has made me think choice is all it's cracked up to be. Not that it's a bad thing, you understand, (though apparently evidence suggests that it can be sometimes); it just seems a bit odd to prize it so highly relative to everything else.

    For one thing, there's the problem of actually getting access to the information that would enable you to make a meaningful comparison between the different places you could go for treatment. This information is freely available from an admirably accessible and easy-to-use website called NHS Choices, which would be a perfect solution if not for the fact that the people most likely to need medical care tend to be elderly, and 60% of over-65s have never accessed the internet in their lives. And even if every pensioner was a keen silver surfer, a lot of people genuinely aren't interested in having a choice of hospital anyway. A large proportion of the people who come to the department where I work have been using the hospital for decades and wouldn't dream of going anywhere else – not because the care we provide is particularly amazing, but just because we're their local hospital and they've always come here. And this is in a big city; imagine how much more true that's likely to be for a small district hospital in rural North Yorkshire where the nearest alternative is an hour's drive away on winding country roads.

    Or take waiting lists. These are probably one of the biggest obstacles to improving patient care where I work. They were notoriously bad throughout the country back in the 1990s, then got considerably better over the past few years, and are now getting worse again as targets are abolished and the funding shortfalls start to kick in (meaning that managers – including my own – are very reluctant to hire locums or pay overtime for extra clinics). I've seen waiting times in one of the departments where I work go up by roughly a third – from six weeks to eight – in about as many months. Two extra weeks might not sound that long to wait, but if you're in constant pain (as a lot of patients will be whose cases aren't urgent) it's pretty likely you'll be acutely aware of every extra day.

    And giving patients a choice about which hospital to go to doesn't help with this. If the reason for the long waiting list was that the department where I work was being run less efficiently than the one run by our counterparts in the hospital up the road – and if patients had access to detailed, up-to-date information about waiting times – then maybe letting patients choose which hospital to go to would do some good. But our waiting times have gone up because budgets are tighter and because the trust doesn't get fined for patients who have to wait too long for treatment any more. Both of those are going to apply to every hospital in the country. Letting patients choose to go to the equally-struggling department in the hospital up the road (or letting GPs choose, as is also going to happen with the new reforms) isn't going to improve things much.

    The NHS is a long way from perfect; anyone can see that. I see it on a daily basis. I'm not just not sure how 'choice' is meant to help.

  • Our pre-budget opinion poll

    Mixed news for the government from the public

    Mar 17th 2011, 14:15 by J.G. | LONDON

    IN ADVANCE of the budget on March 23rd, The Economist commissioned a poll from Ipsos MORI to gauge the state of public opinion on matters fiscal. You can read some of the results in this week's edition of the newspaper. The news is mixed for George Osborne, the chancellor of the exchequer. 70% of Britons think that his deficit reduction plan is too quick for a fragile economy, 71% believe it will affect the poor most of all, and only 28% say it strikes the right balance between spending cuts and tax rises (more are worried about the former than the latter). The government's insistence that "we are all in this together" is manifestly getting nowhere.

    More happily for Mr Osborne, voters are more inclined to blame the previous Labour government for this fiscal pain than the Conservative-Liberal Democrat coalition, by a margin of 49% to 26%. Given a broader range of culprits to choose from, only 10% say the coalition is most to blame for the spending cuts. The state of the global economy (18%), the banks (29%) and, again, Labour (31%) are the more commonly fingered as villains.

    It is Mr Osborne's political strategy to form an indelible link in voters' minds between the Labour Party and fiscal irresponsibility. He brings up Labour's record whenever he can, as do other ministers and attack-dog MPs on the backbenches. Whenever they do, there are groans of exasperation from bored audiences. It is tempting to assume that this means the government would be smart to stop blaming its predecessors. But Mr Osborne knows one of the golden rules of political messaging: endless repetition works. The message has to be vaguely plausible to begin with, of course, but that is necessary not sufficient for it to really lodge in voters' minds.

    2015 is a long time away but the basic shape of the political argument at the next general election may already be taking shape: what will voters dislike most, a government they see as needlessly austere and socially unjust, or an opposition they regard as incompetent and indirectly culpable for the austerity itself?

    As for the chancellor's own political prospects, the poll makes for bleaker reading. If David Cameron were to step down as prime minister, only 9% of voters think Mr Osborne would be the most capable replacement. 28% favour William Hague, the recently beleagured foreign secretary, 18% plump for Nick Clegg, the Liberal Democrat deputy prime minister, and 8% choose Liam Fox, the defence secretary.

    Bleak reading, as I say, but not surprising for someone as realistic as Mr Osborne, who knows that voters see him as cocky and over-privileged. Mr Hague, too, is wryly dismissive of polls attesting to his popularity, of which there have been quite a few since he quit as Conservative leader in 2001. Britons have a habit of warming to public figures after a defeat or humiliation. The real surprise in this section of the poll is, in my view, the relatively high support for Mr Clegg, ostensibly the most despised man in politics.

    In another question, only 8% of respondents said the Lib Dems had been more true to their pre-election proposals than the Tories, who were backed by 44%. You would think that the leader of a party with such a serious problem of trust would not be favoured as a future prime minister by 18% of the public. But then remind yourself of the question: who would make the most "capable" prime minister? Mr Clegg's advisers think his best hope is to trade likeability for credibility, to portray the policy u-turns he has made as grown-up compromises to preserve a stable government. A single poll does not mean their strategy is working, but it does offer a glimmer of hope. Which, these days, counts for quite a lot for the Lib Dems.

    The complete polling results can be found here

  • Benefits and immigrants

    Keeping the coffers shut

    Mar 17th 2011, 7:24 by M.S. | LONDON

    NOTORIOUSLY sceptical about the merits of both immigration and the European Union, Britons have worried for decades about “benefit tourism”. They are just about prepared to accept large numbers of people coming to Britain to work, but suggest that some are coming to tap into the British welfare state and the talk gets nasty. The fact that migrant workers from the eight countries which joined the EU in 2004 are now poised to get full access to British benefits when transition arrangements expire at the end of April is already making headlines. So an important decision by the Supreme Court this week pleased those who feared that the state coffers were about to be opened wider for EU migrants who haven’t worked here, too.

    The case concerned Galina Patmalniece, now 72, who came to Britain in 2000 after retiring from 40 years work in Latvia’s factories and kitchens. Russian-born, she initially sought asylum on the grounds that she faced persecution if she returned to Latvia. She was eventually denied it, and in 2004 her country joined the EU.

    As an EU national, and with only a Latvian state pension of as little as £50 (depending on the exchange rate) a month to live on, Miss Patmalniece then applied for means-tested state pension credit. At current levels this can top up a single pensioner’s income to almost £133 a week. Denied the pension credit (though, separately, she did get council housing), she appealed. Her case wended its way through the system. In June 2009 the Court of Appeal said the government was entitled to withhold the benefit. On March 16th, by a four-to-one majority, the Supreme Court agreed.

    The basic issue was whether the conditions Britain imposes for giving out the pension were compatible with a rule of EU law that prohibits discrimination on the grounds of nationality for this sort of benefit. Britain requires recipients to be “habitually resident”, and for most people this involves having the right to reside here. British citizens have that right automatically but most other EU nationals (there is an Irish complication) do not: broadly, they must be able to support themselves.

    With no family or work in Britain, and only her Latvian pension, Miss Patmalniece did not legally have the right to reside here, the government held, though it did not seek to deport her. Miss Patmalniece’s lawyers argued that the test discriminated against her directly on the grounds of her nationality. A British citizen who returned to Britain after working for 40 or so years in Latvia would have qualified for the pension credit.

    The arguments in the case are fiendishly complex, roaming from Luxembourg to London and featuring an unhealthy enthusiasm for double negatives. At the end of
    the day, and relying in part on a 2010 decision of the European Court of Justice (ECJ), the Supreme Court found that the requirement amounted only to indirect discrimination (some EU nationals could get the right to reside, and some British and Irish nationals would fail to pass other bits of the habitual-residence test).

    Though EU law frowns on indirect discrimination, it can be justified in some circumstances, and this was one. A majority of the Supreme Court judges reckoned the aim of protecting the public purse from the ravages of benefit tourism was legitimate and the measures to achieve it were objectively applied.

    Britain has a problem where EU migrants are concerned. It doesn’t remove people who cannot support themselves, as it is entitled to, but neither is it disposed to give them enough to live on. That is why you get concentrations of semi-employed Poles, say, sleeping rough in empty ground behind billboards in Slough. This does nothing for the Poles and nothing for Slough either. Miss Patmalniece was lucky to get a secure council flat; she was one of the last in her circumstances to do so and today, after rule changes, would not qualify.

    The Supreme Court decision in her case is not necessarily the end of the matter. The European Commission may decide to take matters forward, perhaps eventually bringing an infringement action against Britain in the ECJ. It has already written to the government expressing unhappiness over its approach in this case, as well as over other restrictions in the access of EU nationals to benefits.

    But even if it doesn’t, the whole scene regarding residence and rights seems to be changing rapidly, with the ECJ in the vanguard and the needs of EU citizens increasingly seen as more important than national autonomy. A decision handed down on March 8th, described by one British lawyer as a “bombshell”, is a case in point. It confirmed the right to reside and receive benefits in Belgium of Gerardo Ruiz Zambrano, an unsuccessful Colombian asylum-seeker who, with his Colombian wife, produced two children there. The children became Belgian, hence EU, citizens, and removing the parents on whom they depended amounted to con structive deportation of the mini-citizens themselves, the court held. Expect further upheavals as this precedent begins to affect British courts in unforeseen ways.

  • David Cameron versus the civil service

    The Whitehall wars

    Mar 16th 2011, 18:19 by J.G. | LONDON

    EXCUSE my smugness, but some of us saw this coming years ago. In opposition, David Cameron seemed to believe that there was nothing wrong with the British civil service that a new set of political stewards would not fix. He promised to limit the number of political advisers, pledged an end to Blairite "sofa government" and generally assumed that he would find in Whitehall a cadre of administrative ubermenschen aching to serve him. His faith was that of an English patrician; Mr Cameron is drawn from the same social circles that have traditionally produced senior mandarins. There was an implicit trust.

    Less than a year into his premiership, he is now, make no mistake, fighting something approaching an attritional civil war with what his advisers call “the machine”. This enmity between a government striving to reform the state and a bureaucracy it believes is resistant to change, and not very good at running things, has begun to seep into the media. Our very own Bagehot wrote about it recently. Sue Cameron, the Financial Times’s Whitehall-watcher, has chronicled the mutual resentment between ministers and mandarins. In the new Spectator, James Forsyth reports some jaw-dropping stories: one cabinet minister was allegedly so frustrated by his department’s refusal to answer his questions that he asked a friendly MP to table a Freedom of Information request to extract the desired response. Every political journalist is hearing similar testimonies. The government's desire to open up public sector procurement to small and medium-sized businesses is running into particularly forceful objections from civil servants.

    And so Mr Cameron is fighting back. The recent reorganisation of Downing Street was partly designed to strengthen his sway over the machine. Steve Hilton has become something of a one-man implementation unit, using his force of personality and closeness to the prime minister to ensure Whitehall enforces the government's policies properly. He has support from new hires, as well as from Jeremy Heywood, the one senior civil servant who Mr Cameron's people regard as being on their side.

    The depth of the hostility between politicians and their civil servants would shock many, but not the more reform-minded members of the previous Labour government, who are now smiling wryly. Tony Blair talked of the “scars on (his) back” left by opponents of his public sector reforms, including the civil service, but the wounds were sustained by many other ministers and advisers too. Some of those involved in trying to reform the welfare system in the later part of the last decade still have a hollow, traumatised look when they recount the resistance they encountered from the Work and Pensions department. Resistance to change in education, where mandarins had allies among the trades unions, was yet more tenacious. Those who dealt with the Home Office actually developed their own genre of gallows humour to cope with their struggles with a department regarded in some quarters as the most implacable in Whitehall.

    The civil service has many defenders, and Bagehot in his column made the very true observation that the government must deal with the bureacuracy it has. Civil servants can and do argue that the coalition's plans are too extreme, too rushed. But I wonder whether the hoary old myth of Whitehall as a purring Rolls Royce blinds some observers to the very real problems with the bureaucracy.

    Recruitment to the British civil service is not as rigorous as in, say, France (the Foreign Office and the Treasury are more stringent than most departments but don't actually directly run very much). Neither is Whitehall as open to outside appointees as America's federal executive bureaucracy. Once in, civil servants, from the lowest functionary to the highest offical, are unbelievably difficult to dismiss (and, believe me, there is at least one permanent secretary of a major department that some Conservatives believe should be fired for an alleged combination of incompetence and insurbodination). How many organisations with largely unsackable staff function properly?

    There is something else that those who revere Whitehall (including the Mr Cameron of just a year ago) struggle to explain. They often insist that all civil servants desire is a minister who knows what he wants. Give Whitehall a sense of direction, they say, and it will toil away dutifully. Even if you do not think this is hopelessly naive in itself, it clashes with another trope favoured by these same observers: that the "politicisation" of the civil service is malign and desctructive. These are surely irreconcileable viewpoints. If civil servants crave leadership from above, but regard two special advisers per cabinet minister as intolerable political interference, is that not unreasonable? Is the expectation really that one secretary of state, backed by just a few junior ministers, should be able to direct a department of many thousands this way or that, without being able to bring in staff of their own choosing? Which large organisations in the private sector are run like that?

    Ultimately, Mr Cameron has himself to blame. The problems he has encountered with Whitehall were eminently predictable. When, in 2009, I asked one senior Tory who is particular close to Mr Cameron how he planned to deal with bureaucratic resistance to government policies, he blithely replied that the Tories would devolve power out of central government anyway, so the civil servants would not be a force to be reckoned with. I pressed him on the obvious logical flaw here: that the government would depend on these civil servants to execute the devolving. Whatever his answer was, it clearly did not amount to a plan.

  • Oxford University's tuition fees

    Why it is wrong to splurge on student support

    Mar 15th 2011, 14:47 by A.G. | LONDON

    THE University of Oxford today became the fourth English institution to announce the level of tuition fees it will charge from autumn 2012, and the first to detail how students from poor families will pay less.

    In an open letter, Andrew Hamilton, vice-chancellor, said that while students from families with an annual income of more than £25,000 ($40,000) will be charged the maximum sum permitted by government, namely £9,000 per year, those whose parents brought home less than £16,000 and were thus in the bottom quintile in the earnings distribution will pay just £3,500 to cover their first year and £6,000 per year thereafter.

    The University of Cambridge, Imperial College London and the University of Exeter have all said they will charge full whack for tuition, with yet-to-be-announced subsidies for students from low-income families. None of the monies, at Oxford or elsewhere, must be repaid until after the students have left university and are earning an annual salary of more than £21,000.

    Tuition fees were introduced because, as more and more young people entered higher education, the need to reduce the state's share of the bill became more and more pressing. Just weeks after becoming prime minister in 1997, Tony Blair was handed a blueprint for asking students to contribute towards their university education, which had been commissioned by the previous Conservative government. Amid great outcry that poor families are more debt averse than rich ones (and there were some studies that supported the claim), the new Labour government introduced tuition fees in 1999.

    What happened next shows that such fears were misplaced. The introduction of tuition fees was followed by a small blip in the popularity of university, as youngsters attempted to secure a free place, leaving fewer to apply the following year. Since then, however, demand has increased almost unrelentingly, with the exception of a second small blip, due to the same reasons as the first, when tuition fees were almost trebled to £3,000 in 2006. Now the fees will be tripled once again in many institutions. (Vice-chancellors of England's 130 universities and colleges have until April 19th to fix their fees for 2012, as I wrote in the current edition of the paper.)

    For all the continuing chatter about debt aversion, I suspect that Oxford has failed to strike the right balance with the package it has outlined today. Right at the end of Mr Hamilton's letter is a box detailing the university's proposed spending on various forms of student support. It has three categories: financial support for existing students; outreach to raise the aspiration and attainment of potential students; and support to prevent existing students from dropping out of university. It shows that the university currently spends 55% of its investment in student support on financial measures, which it proposes to increase to 63%. Meanwhile spending on outreach will fall from 22% to 18% of the total, as will spending on retention.

    Now I know that the coalition government recently pulled the plug on the AimHigher programme, which was supposed to encourage state-school children to aspire to a university education. (As an aside, recent studies have found that an astonishingly high proportion of new mothers want their offspring to go to university, though grim reality hits by the time the little cherubs have reached school-leaving age.) It was incredibly cheeky for the government to then insist that universities both provide and pay for this work.

    Yet it is precisely this sort of meaure that appears to make a difference. The reason why Oxford University takes just 55% of its undergraduates from state schools is firstly because it demands the highest entry qualifications, and students from outside the state system are more likely to achieve these. However that is not the whole story: if it were, then the university would hit its benchmark of taking 70% of students from state schools. The discrepancy is mostly down to the fact that fewer state-school pupils apply to elite institutions than do their privately educated counterparts.

    Many potential state-school students have already ruled themselves out of Oxbridge by making poor subject choices before applying for higher education. Others have been dissuaded from applying by hidebound teachers and careers advisers, who deter them from aspiring to such things. Those that do apply tend not to seek financial advice until the final stages of their application or later. Throwing money at successful candidates utterly fails to address the underlying problems.

  • Police pay

    A policeman’s lot is not a happy one

    Mar 8th 2011, 21:46 by M.S. | LONDON

    IT'S crunch time for the police this week. Today the Winsor report came out with proposals to cut police pay and benefits when the current three-year pay deal ends in September. At the heart of it is curbing overtime and bonuses and other allowances which have become embedded and conceal real differences in what people of similar seniority do. One goal is obviously to save money; but another important one is to modernise police management, recognising and motivating officers who do more and better than their fellows.

    But this is only one of blows police say they are reeling from. On Thursday the Hutton report is widely expected to recommend making coppers, like other public-sector workers, pay more for their pensions (they say they already contribute more than others in state employment). The police service has in any event been in austerity mode for a couple of years, even before the 20% budget cut through 2014-15 was announced last October. And like other public-sector workers they also face a two-year pay freeze from next September.

    Is all this a death blow to law and order as we know it? Or the foundations of more efficient and flexible policing?

    Policing can be a difficult and dangerous occupation, and the proliferation of laws and form-filling and what-not over the past decade have not made the job easier. But resources, both money and manpower, have also grown tremendously. There has been a sustained increase in funding since 2001, the year in which police officers and civilian staff started climbing. But management has been sluggish. Despite the increase in bodies, overtime more than doubled between 2001-02 and 2007-08, points out Policy Exchange, a think-tank.  

    Manpower is undoubtedly going to take a hit now; this has been clear since the 20% fiscal cutback was made public in the autumn. Since pay accounts for 80% of most forces’ budget, and a certain amount of back-office costs were already being squeezed out, it is hard to see what else can go. ACPO, the Association of Chief Police Officers, estimates that 16,000 police officers and 12,000 staff will be cut. If that is the eventual figure--and the Police Federation, which represents lower-ranking policemen, has put round a bigger number--there would still be more police officers on the strength than ten years ago and many more civilian staff.

    Three points are perhaps worth making. The first is that the link between boots on the ground and crime reduction isn’t absolute: many factors influence the crime rate, of which bobbies on the beat is only one. Crime fell through the noughties when resources were being poured into it, and most people definitely like to see police around, as recent polling by Ipsos-MORI for the Police Federation emphasises. Cutting police numbers is not a step that any politician would relish, absent the fiscal deficit. But it is not axiomatic that crime will surge as a result, especially if these proposals (which remain only that) enable police chiefs to deploy manpower more efficiently. Part 2 of the Winsor report is due to hit the stands in the autumn, suggesting wider-ranging management reforms.

    The second point has to do with internal police politics. There are two broad police reforms going on, both at a time when money is in short supply. In addition to the pay review is a flagship government policy to create, from 2012, elected police and crime commissioners, with power to set spending priorities and hire and fire chief constables. The Police Federation, the body representing rank-and-file officers (police constables through chief superintendents), is disturbed by the Winsor recommendations on pay but less so by the prospect of new commissioners. ACPO, which groups their bosses, greeted the Winsor report with sang-froid (it gives them more flexibility in managing their forces) but detests the elected commissioners. In the past, the police have met opposition as one. No longer—and just how that may affect the reform process remains to be seen.  

    A final point is also political, but on a bigger and potentially more dangerous stage. There are troubled times ahead as broad budget cuts bite, not least on March 26th, when a large union-organised protest is scheduled to hit the streets. Margaret Thatcher, no friend of the unions, took care to have the police onside whenever she took on organised labour. This time, as Paul McKeever, chairman of the Police Federation, points out,  “Those policing the march will be facing deeper cuts than those actually on it.” 

  • University access agreements

    Aspiration, aspiration, aspiration

    Mar 8th 2011, 11:19 by A.G. | LONDON

    POORLY-qualified youngsters tend not to get into the nation's top universities. That is the main reason why the quads of Oxbridge colleges echo to the cut-glass accents of former public school pupils. But there is a second, subtler reason. Even some well-qualified youngsters from state schools and colleges fail to get in. That is because they do not apply for competitive courses in anything like the same numbers as their privately-educated counterparts. The latest effort to cajole universities into taking more students from poor families, published today, sensibly recognises this.

    Vice-chancellors and the governing bodies of England's 130 universities and colleges are currently calculating what they will charge undergraduates who begin their courses in September 2012. The coalition government voted in December 2010 to allow universities to charge up to £9,000 ($14,500) a year in tuition fees, up from £3,290 at present, but said that those that intend to charge more than £6,000 should ensure that they took more students from poor families.

    Although it seems plausible that pupils from families with low incomes are deterred from university by its cost, the evidence does not yet support this. The claim has been made repeatedly since the introduction of tuition fees was mooted in the mid-1990s. Yet the proportion of young people going to university from rich and poor families alike has risen rapidly over the past two decades, and demand continues to outstrip supply.

    Past performance is no predictor of future results, and universities minister David Willetts is anxious to ensure that the forthcoming increase in tuition fees does not deter potential students. Mr Willetts has been rattled by reports that most English universities will charge the maximum permitted fee. The universities of Cambridge and Exeter have said they will charge full whack, along with Imperial College London; Oxford says it will have to charge the same if it is to fund bursaries for students from poor families.

    Higher education is expensive. Expense can also be seen as a proxy for quality, and universities are aware of the danger of appearing cheap: potential students suspect that low tuition fees signal a second-rate education. In the past, lifting the fee cap has led to a race to the top, with all institutions charging the maximum level permitted.

    In a recent speech to university heads Mr Willetts threatened to slash further the grants that universities receive if this happens. His motivation, however, was not concern about the potential deterrent effect of high prices, rather it was affordability. Mr Willetts's problem is that initially the state must pay the tuition fee, recouping the cost only after the young person who incurred it has graduated and is earning a decent salary. In the financial modelling that determined how generously students could be supported, he guessed that the average fee would be £7,500. If it turns out to be far higher, that would bust the Treasury's spending plans.

    Unfortunately for Mr Willetts, there is precious little he can do about it. From September 2012 the state will give teaching grants only for expensive subjects that either boost economic growth, such as science, engineering, or are socially desirable, such as medicine and dentistry; these tend to be delivered in the country's best universities and will rightly attract the highest fees. The subsidy for all other courses will be removed, so his threat to slash teaching grants for lesser institutions that charge more than he envisaged is a hollow one.

    Slashing spending on research would also fail to punish the miscreants because research is concentrated in the elite universities that can justify the highest prices.

    The Office for Fair Access, a quango, is the only body through which Mr Willetts might enact his threat. Yet it was created not to penalise institutions for charging too much, but to nudge those that provide an expensive education into taking more students from poor families. It seems implausible that it could be refashioned to serve a completely different purpose.

    Today the Office for Fair Access published guidelines for universities seeking to charge more than £6,000 a year. Spending on scholarships will be pruned and the money redirected to boosting attainment and aspiration among under-represented groups. It wants institutions to set themselves targets for ensuring that the students in their lecture halls more closely resemble those off campus, and to meet those targets. Those who already attract greater numbers from poorer backgrounds must ensure that they take steps to prevent students from dropping out. Spending on outreach activities such as summer schools, open days and school visits must also be detailed; it suggests that an institution charging the full whack should spend £900 per paying student.

    The guidelines are a great improvement on the existing "access agreement", a piece of paper which states what every university intends to do to take more students from under-represented groups that has been in place ever since tuition fees were trebled in 2006 (you can see Oxford University's paperwork, for example, here).

    Concentrating on raising attainment and aspiration is particularly appropriate given that universities that had offered bursaries to students from poor families often failed to attract applications. That was mainly because those that could afford such largesse had strong competition for places, which went to the better-qualified applicants from richer homes.

    Vice-chancellors have until April 19th to determine what fee levels to charge. I reckon the lion's share will aim high. Expect fireworks.

  • News Corporation and BSkyB

    The Sky and the limit

    Mar 3rd 2011, 12:02 by J.B. | LONDON

    ON MARCH 3rd Jeremy Hunt, Britain's culture secretary, effectively cleared the way for New York-based News Corporation to take full ownership of BSkyB, a British broadcaster. News Corporation will spin off Sky News, so as to avoid the appearance of one company having too much control over the information Britons get. There will be a brief consultation. Rival media outfits, including the BBC and Guardian Media Group, will wail and gnash their teeth at the prospect of Rupert Murdoch taking a larger slice of the British media pie. But this deal is done.

    The legal and regulatory obstacles to News Corporation's effort were never as great as those rival media companies made them out to be. News Corporation already owns 39% of BSkyB, which emerged from an outfit set up by Mr Murdoch in the 1980s. That is a controlling stake. If there is a problem with Mr Murdoch controlling Sky, the problem already exists: an outright purchase does not create it. The more-or-less openly-voiced fear that Mr Murdoch would turn Sky News into a British outpost of America's conservative Fox News Channel is also misplaced. The point of Sky News, which loses money, is that it burnishes BSkyB's image, turning the broadcaster into something more respectable than a purveyor of football, films and American dramas. Taking Sky News downmarket or compromising its objectivity would damage a valuable brand.

    Another obstacle, which had been largely overlooked in the political and regulatory kerfuffle, now looms. News Corporation offered £7 a share for BSkyB last summer. It was rebuffed by BSkyB's board, which suggested that only offers over £8 a share would be entertained. That may not have been too much of a stretch for News Corp at the time. But three things have happened in the past few months. First, BSkyB announced record earnings. It is on track to bring in £1 billion in profits this year, raising its value. Second, the pound has strengthened against the dollar—the currency in which News Corporation will pay for BSkyB. Last June £7 cost $10.82. Now it costs $11.40—a greater than 5% increase. Third, News Corporation has agreed to pay £415m for Shine, a production company run by Elisabeth Murdoch, of the clan. The spat over regulation is over. Let the arguments over money begin.

  • Polling

    February's MORI Index

    Feb 26th 2011, 15:02 by T.C. | LONDON

    THE February edition of the Economist / IPSOS-MORI Issues Index is out. The poll, which has been run by MORI for decades, asks respondents what they think are the most important issues facing the country.

    Unsurprisingly, the economy still causes the most sleepless nights: 60% of respondents cite it as a worry. A closely-related issue, unemployment, is mentioned by another 28%. The next three big worries - race and immigration, crime, and the NHS - rate mentions from just 25%, 23% and 19% of respondents respectively. That is a welcome reminder that regardless of this government's big plans for cracking the state sector open to private competition (about which more in this week's paper), it will probably live and die by its economic record.

    It is hard to overstate just how finely balanced things are on that front. The terrible GDP figures that were released last month were revised downwards last week, with the conclusion being that GDP dropped by 0.6% in the final quarter of 2010, and that the snow does not explain all of it. Meanwhile inflation is soaring, businesses are reporting weak sales, one in five people under the age of 25 cannot get a job and the Bank of England's Monetary Policy Committee seems not to know whether it's coming or going. It is worth remembering that if Britain's experiment in cutting its way to prosperity starts to look like it is in serious trouble, everything from NHS reform to free schools will quickly fade into the background.

    MORI have broken down the responses to this month's poll according to whether the respondents lived in rural or urban areas (see below). A few differences stand out: city-dwellers seem much more sanguine about immigration than their rural cousins. Is that down to the fact that respondents from cities are more likely to be migrants themselves (although recent migrants are often surprisingly hawkish on allowing any more people in)? Or perhaps it's just a sense of comfort arising from familiarity. Worries about education rise as you move out from the city centre, which would fit with the stereotypical pattern of couples with children abandoning the metropolis for cheaper dwellings in the suburbs or villages.

    Some of the differences are less easily explained. Rural folk seem much less ruffled by high inflation, which sounds a little odd given their higher dependence on cars and the recent behaviour of petrol prices. And suburbanites are less worried about unemployment than either city-centre dwellers or those living in the country. Suggestions are welcome!

  • The Tory grandees of the 1990s

    What became of the big beasts?

    Feb 25th 2011, 12:06 by J.G. | LONDON

    SOME governments are dominated by the prime minister and the chancellor of the exchequer, such as New Labour and the current coalition. In other administrations, the prime minister is merely the chairman of a group of talented, independent-minded cabinet members, each with their own power base. Clement Attlee's post-war Labour government was one example of this, and so was John Major's seven-year premiership. The oligopoly of cabinet ministers that toiled and often squabbled under the latter's watch were known as "the big beasts", a term frequently revived in Westminster discourse to bemoan the supposed dearth of such creatures today.

    The impending appointment of one of these big beasts, Chris Patten, to the chairmanship of the BBC Trust, got me thinking about what has happened to the others, and why some have carved out an enduring role for themselves beyond their 1990s cabinet careers, while others, perhaps to the loss of their party and their country, have not.

    Mr Patten, who went on to govern Hong Kong after losing his parliamentary seat in 1992 and who is still the chancellor of Oxford University, has successfully retained a prominent role in public life. Ken Clarke, a fellow One Nation Conservative (which means a member of the party's ideological left, for those not versed in Tory sectarianism), wields even more power as a current cabinet member. But most of their peers from the Major era are keeping their talents dormant.

    One example, Michael Heseltine, is easy to understand. He was a politician of enormous significance: a bold environment secretary, the author of the stunning regeneration of east London, a deputy prime minister who was not alone in thinking that job title was one word too long for him. But he is 77 and has suffered bouts of serious ill health.

    But what about Michael Howard? It is hard to think of a post-war politician who was not either prime minister or chancellor who had more of an impact on the nation than Mr Howard did as home secretary. Many on the right credit his reforms (mandatory sentences, expanded prisons) for the mid-1990s fall in crime that continues to this day. Even those who loathe him concede his enduring influence; all home secretaries since Mr Howard have been in his image, rather than in the patrician mould of Douglas Hurd and other former occupants of the office. Yet Mr Howard, or Lord Howard as he is now, is now only nominally involved in public life as a member of the second chamber. Many Tories want him to replace Mr Clarke as justice secretary but that seems a remote prospect.

    Then there is Michael Portillo, the right-wing thorn in Mr Major's side who went on to become the original moderniser. Since his failed bid to become leader in 2001, he has had a prominent role in the media and been involved with various charities. But he is not running any major public institution. Neither is he serving as the wise elder of Tory modernisation; he has never been close to the current party leadership, and seems not to be bothered by that. 

    Peter Lilley is another example. He, too, was a Thatcherite hate-figure during the Major years who quickly understood, after the party's electoral evisceration in 1997, that the Tories would have to change to win again. It is easily forgotten that he was the first shadow chancellor that Gordon Brown faced when he took over at the Treasury (not counting Mr Clarke's month-long stint while the Tories were choosing a new leader). In that role, Mr Lilley alienated many of his colleagues by arguing that the Tories needed to develop a political economy that looked beyond Thatcherism. He also called for the legalisation of cannabis. Aside from chairing one of the policy reviews that David Cameron launched when he became leader five years ago, he remains a circumspect backbencher.

    Of course, the willingness of these former cabinet members to let their successors get on with it reflects well on them. But their talents and experience are still of use, especially to Mr Cameron. In retrospect, the Major government, loathed at the time, was an impressive reforming administration given the hellish political context it laboured in. Despite a paper-thin majority in parliament, and a deeply divided party, it pioneered reforms in healthcare that have been taken further since, it oversaw an economic recovery and boom, it followed a policy on the European Union that kept Britain out of the euro while persuing the strategic goal of eastern enlargement, and it presided over that historic fall in crime. These achievements were possible because of the big beasts (and because Mr Major was a far more effective prime minister, albeit in the chairman mould, that he is given credit for). They have reservoirs of wisdom on public sector reform and the myraid obstacles to it. Mr Cameron's willingness to revive some of the big beasts from their slumber should not stop with Mr Patten and Mr Clarke.

  • Hospitals on television

    Under the Knife: 10ccs of televisual realism, stat

    Feb 22nd 2011, 13:34 by Under the Knife

    WHEN people hear I work in a hospital, often they'll ask me something like, “so is that anything like Scrubs, then?” While it's always really tempting to say yes, I'm unfortunately cursed with a crippling disposition to honesty, so I generally explain that it's actually pretty rare for junior doctors to slip into surreal unicorn-themed reveries while they're on duty, and barely any more common for their more senior medical colleagues to give their erring subordinates public dressings-down for the edification of themselves and those around them. Nor, perhaps more unfortunately, is hospital life much like House. Doctors are generally intelligent people, but I've yet to meet one who'd really qualify as that sort of cantankerous genius, and much as I'm sure the hospital would love to assign four dashingly good-looking doctors to each patient lucky enough to be admitted with slightly odd symptoms, that really isn't likely to be feasible for any NHS hospital in the foreseeable future.

    Of course, Scrubs and House aren't trying to be true-to-life. But even if they were, glossy American productions full of beautiful people and sharp dialogue aren't really the ideal format for realistic portrayals of life in hospitals; they just aren't glamorous places. It's in large part because of this, I think, that low-budget BBC sitcom Getting On works so well. It's been around for a while now – it was first broadcast in July 2009 – but as it was on a rather obscure channel it remained more or less under my radar (by which I mean I completely missed it) when it first came out. Happily, though, series one is being repeated at the moment, so there's another chance to catch it.

    Even if you don't have any particular interest in healthcare it's a wonderful absurdist black comedy, but if you want to get an idea of everyday life behind the scenes in a hospital, then Getting On can provide that at least as well as anything I've written on this blog. It's not that everything in it is strictly true-to life – as far as I'm aware nurses aren't actually in the habit of eating the birthday cakes of recently-deceased patients or putting condoms on smoke detectors so they can sneak a cigarette in the toilets, for example. But plenty of the humour comes from situations that are uncomfortably plausible. I'll admit I've never actually heard of a doctor calling for a morgue porter in anticipation of a patient dying only to have to send them away once the patient's health picks up again, but given my experience of how long it can take for overworked porters to get to a ward after they're called, it's just morbid enough to be believable.

    What Getting On does really well, far better than any other hospital-based comedy I've ever seen, is simply to convey the feeling of what working in a hospital is actually like. (The fact that lead actor and co-writer Jo Brand is herself a former nurse probably has a lot to do with this.) From the awkward, agonisingly polite power struggles that can break out between doctors and senior nurses over the most trivial of disagreements to the way situations can switch from tedium to a matter of life and death in seconds, all the way down to the wearied bewilderment of long-serving staff when faced with the latest batch of new regulations from on high, the whole programme is near-pitch perfect. I can't recommend it enough.

    Readers from the UK can still watch the second episode of Getting On here; anyone wanting to catch up or trying to watch from outside the UK can probably find digital copies elsewhere on the Web without too much effort.

  • The royals abroad

    The empire strikes back

    Feb 21st 2011, 11:14 by T.W. | MEXICO CITY

    I HAD an unusual appointment on Saturday at a tent outside the British embassy in Mexico City. Estíbalis Chávez, a 19-year-old Mexican schoolgirl, had been camped on a street corner outside the compound for ten days, foregoing food. Her ongoing hunger strike is designed to persuade the British government to give her a ticket to the April wedding of “Príncipe Guillermo” and Kate Middleton. The ambassador, Judith Miller, has sent her a letter gently telling her that it’s not going to happen. “But I still have hope,” says Ms Chávez, who is very faint after ten days without food but has vowed to stay outside the embassy until her health gives way—or the wedding planners give in.

    Just as many Americans secretly wish Jed Bartlet were their president, I would be quite happy if Britain ditched the royal family and installed Colin Firth and Helen Mirren in their place. But the popularity of the Windsors abroad is formidable. The royal engagement made the front page of many newspapers here; the doorman in our building has so far congratulated me on the news three times. Many people, including Ms Chávez, are especially devoted to the memory of Lady Di (here pronounced lady dee). The Duke of Edinburgh remains the prime suspect in her death.

    By no means everyone in Britain shares my republicanism. Guillermo’s wedding day is likely to be celebrated with street parties, weather permitting. But it does seem that the royal family may have joined the curious class of brands and individuals who go down better overseas than at home. Given the occasional flare-up of international controversies, it’s handy for Brits abroad to be able to fall back on something that everyone seems to love. Last year I was ordered out of my car at an army checkpoint by a soldier who said he wanted to ask me some questions. The interrogation? “How is la Reina Isabel?”

  • Divorce and marriage

    Less than there used to be

    Feb 17th 2011, 16:19 by M.S. | LONDON

    Marriage and divorce in declineIF MARRIAGE has become so unpopular, why are fewer people choosing to leave their spouses? According to the statistics from the Office for National Statistics on February 17th, the number of divorces in England and Wales fell again in 2009, by 6.4% from the previous year. This is the sixth year in a row that they have dropped, leaving the figure-113,949-at its lowest since 1974.

    The divorce rate declined too: to 10.5 divorcing people out of 1,000 married ones, its lowest since 1977.  The greatest number of break-ups was among people in their early 40s, the highest rate among those in their late 20s. Just under 100,000 children saw their parents split up, down from almost 150,000 in 1999.

    Why are fewer people getting divorced, given all the economic stress and strain around? In part, because of that stress and strain: more redundancies and sagging house prices mean that it is not always possible financially to split into two households, even if you squabble unmercifully in one. The influx of immigrants from more traditional societies has helped, too, keeping divorce rates down and birth rates up. But the real reason is probably the decline of marriage.

    Far fewer people than before are getting married, as everyone knows and the chart shows vividly. This suggests that the brave remnant who do choose to enter that uncool estate are pretty committed to it. And the fact that the average age at which people first marry has drifted up-to just over 32 for men and just under 30 for women in 2008, about three years older for both than even a decade ago-may also damp down divorce, as older people, so far at least, have proved less prone to calling it quits.

    Statistics offer only the bare skeleton of the story; there are hundreds of thousands of personal reasons why people marry (or don’t) and divorce (or don’t). But they do suggest that attempts to cure social ills by chivvying people into marriage, as the Conservatives now in government have at times talked of doing, are wide of the mark  The more people marry, it could be argued, the higher divorce rates are likely to be.

  • Volunteering and profiteering

    Blood, not money

    Feb 16th 2011, 17:19 by A.G. | LONDON

    AS PUBLIC spending cuts start to bite and the government attempts to give away power by encouraging more ordinary people to wield the stuff, it is belatedly showing a certain deftness while tinkering with an existing service that relies on volunteers.

    The National Blood Service, which employs National Health Service (NHS) staff to collect blood from donors and distribute it to hospitals where it is transfused into patients or spun into other vital products, is being examined. The aim is to save money by outsourcing some of its activities to the private sector, according to a report in the Health Services Journal.

    Blood donors are stalwarts of the voluntary sector, and rich countries with advanced medical systems rely on them. Some 4% of the population gives blood in Britain, comparable to the levels in America, Australia and the rest of Europe, according to this map from the World Health Organisation.

    Blood donors are also unpaid, in Britain and elsewhere. A debate over whether or not they should be compensated for their efforts has raged for at least four decades. In a classic 1970 study called "The Gift Relationship: From Human Blood to Social Policy" Richard Titmuss compared the voluntary British system favourably with the American one in which payments were then widely made. Titmuss reckoned such a market was inefficient and wasteful, that it created shortages and surpluses, and led eventually to a contaminated product. 

    Although he was wrong, and such arguments have since been widely discredited, Americans mostly no longer receive payment for giving blood. Too many people in poor health lied about their medical histories in order to make a few bucks, endangering those who were to receive the blood. As the World Health Organisation notes, people who give blood voluntarily and for altruistic reasons have a lower prevalence of HIV, hepatitis viruses and other blood-borne infections than do those who seek monetary reward. Presumably that is because being rich is a great protection against disease.

    People who give blood without payment tend to give one of two reasons for their actions: either it is for the general good; or it is because they hope to benefit from the generosity of other donors at some future date. I started giving blood myself as a way of repaying what I perceived as being the family debt to the national blood bank when my grandfather began to need monthly transfusions to slow the progress of his leukaemia, and have continued to donate in the years following his death.

    I have seen first hand the inefficiencies in the system: limited space means long queues at busy lunchtime periods, and unused equipment and idle staff in the hush of midafternoon, for example. Subcontracting work to the private sector is common within the NHS, and is mostly accepted by its patients.

    But would British people would still donate blood if it were being taken by staff working for a profit-making company? As my colleague Bagehot discussed recently in relation to plans to privatise forests, volunteers are happy to contribute to the state but would be far more wary about giving to a private company. Andrew Lansley, the health secretary, has acted deftly to avoid the pitfalls that have floored his counterpart in forestry. Only the outsourcing of the storage and distribution of blood will be considered; its collection will remain firmly within the NHS.

  • Downing Street's new strategist

    Andrew Cooper and the art of over-compensation

    Feb 16th 2011, 0:52 by J.G. | LONDON

    IT HAS been confirmed that Andrew Cooper, the former Conservative staffer and the founder of the polling company Populus, is to join Downing Street as head of strategy. Mr Cooper qualifies as what George Osborne, the chancellor of the exchequer, once called (disparagingly) an "uber-moderniser". He was imploring the Tories to change their image and policies before most, and to a greater extent than almost anyone. He is thought to believe that the party failed to win the last election because it allowed its previously centrist message to become dominated by the theme of fiscal austerity in the nine months leading up to polling day. His appointment has several important implications.

    First, the Tory right, already very angry with David Cameron for his aloof leadership style, his failure to win what they regard as an eminently winnable general election and his various concessions to the Liberal Democrats, will be furious. Tim Montgomerie, the blogger and commentator who probably has a better claim to being the leader of the right than anyone in Parliament, is worried about the recruitment of a man he regards as an "uber-uber-moderniser". One of the right's grievances with Mr Cameron is that he retained all of the close advisers they blame for running such a lousy election campaign last year, while asking many Tory MPs to make way for Liberal Democrats in ministerial posts. For him to add another adviser, particularly one with a notoriously low opinion of the party's ideological orthodoxy, is certainly brave.

    Second, Tories of Mr Cooper's ilk now unambiguously rule Downing St and the adjacent Cabinet Office. The more right-wing Andy Coulson, the former director of communications, battled Steve Hilton, Mr Cameron's chief wonk and enforcer, for influence over the government's message for months, but he has gone. His replacement, Craig Oliver, is not expected to have much ideological input. Mr Hilton and Mr Cooper will agree on much. Cabinet Office ministers such as Francis Maude and Oliver Letwin, both on the liberal left of the Tory party, wield serious cross-departmental power despite their relatively low profiles.

    Third, the burden of providing the countervailing voice to all this modernising zeal will increasingly fall, in a wry historical twist, on the man who was probably the first Tory moderniser of them all: Mr Osborne. One of the neglected stories in Westminster has been the chancellor's emergence as the one senior figure in the coalition trusted by the Tory right. This is not because he has recanted his desire for the Tories to occupy the centre-ground, but because he has a different, some would say worldlier, take on how to do that. He is thought to be worried about the liberal noises the coalition has sent on crime and counter-terrorism (there are few votes in a gentle home affairs policy) and would prefer it if the government were selling a crisper and clearer political message to voters than the Big Society. Even in opposition, Mr Osborne provided the hard-headed balance to some of the more idealistic voices in the Tory camp.

    My verdict is that there is sound political thinking behind Mr Cooper's appointment. For all the analysis it attracts, political strategy and campaigning are essentially simple. Elections are won by occupying the centre ground, or at least being nearer to it than your opponent. Almost everything else is secondary, apart from perhaps perceptions of sheer competence.

    And judging by YouGov's left-right poll, which asks voters where they think politicians and parties are located on the ideological spectrum, the Tories have a challenge here. A rating of -100 denotes extremely left-wing, and +100 extremely right-wing. In 2009, Mr Cameron was seen as +28 (moderately to the right), and his party was rated at +37. The numbers are now +48 and +47 respectively: the prime minister is seen as quite right-wing indeed, and is no longer seen as a moderating influence on his party. Luckily for Mr Cameron, his opponent, Ed Miliband, is also struggling to shake-off his image as a left-winger. He is at -45, even further to the left than his Labour Party, which scores -39 (12 points to the left of where it was when it lost the last year's general election).

    It is precisely Mr Cooper's uber-modernising zeal that could help nudge Mr Cameron and his party back to a more centrist position. In politics, if you are perceived as right of centre and want to be seen as centrist, it is not enough to say and do centrist things. You must act left of centre. (The same is true, the other way round, for politicians trying to head to the centre from a left-wing position). In short, you must over-compensate. Voters pay so little attention to politics that subtle, nuanced, calculated shifts will not register. Only dramatic, surprising gestures are noticed. This is why Mr Miliband's Labour Party conference speech last autumn, with its carefully crafted difference-splitting between left and right, did not achieve the goal of evading the "Red Ed" charge.

    There is a story that Mr Cooper once thought that the Tories should advocate joining the euro, not because he thought the economic case for it was right, but simply because this internationalist gesture would help to change the party's brand. If so, the Tory right (and indeed not only the Tory right) are justified in viewing him warily. But it also suggests that Mr Cooper understands how brand-building and brand-fixing work in politics. Over-compensation is the key.

    Finally, back to that left-right survey by YouGov, can you guess where Tony Blair was rated by voters? +3. Almost dead centre. Mr Cameron may turn out to be the more effective prime minister but the notion that he or indeed anyone of his generation is the "heir to Blair", at least in terms of sheer political prowess, is laughable.

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On this blog, our correspondents ponder political, cultural, business and scientific developments in Britain, the spiritual and geographical home of The Economist. It takes its name from a fond but faintly derogatory name for the mother country often used among British expats.

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