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The furore over MPs' expenses is proving a damaging distraction from
the serious economic questions that need to be addressed by all the
main political parties, business leaders have warned.
Employers are becoming alarmed that measures to fight the recession
are being neglected as Westminster's focus turns inwards.
The scandal continued to cause political ructions on Sunday night as
new questions were raised over the expenses of Alistair Darling, who
as chancellor is in charge of the UK's public finances.
The Telegraph claimed that Mr Darling submitted a claim in July 2007
for a £1,004 service charge for his south London flat - which he
rented out for part of the period - while he was also claiming
allowances for his free apartment in Downing Street.
Mr Darling's spokeswoman did not return the FT's calls on Sunday night.
Richard Lambert, director-general of the CBI, told the Financial
Times: "I've just been talking to business people in Brussels and the
sense of bewilderment about what's happening and what it means for
the UK and Europe is palpable.
"We've got important elections [this week] and they are being
completely overshadowed by these disclosures."
Gordon Brown, David Cameron and Nick Clegg have been forced to
prioritise plans to overhaul the Commons and discipline errant MPs,
forcing economic and public policy on to the backburner. The local
and European elections on Thursday will be heavily influenced by
voters' feelings about MPs' greed.
How Mr Brown handles the fate of Mr Darling, a close friend and
political ally, will be closely watched in the coming days.
"Clearly there's an enormous, understandable public outrage...but
we've got big decisions to be taken by all the big political parties
about the future shape and role of the state, and these have been
completely brushed to one side," Mr Lambert said.
Gordon Brown insisted he would not step down as prime minister even
if dire Labour results on Thursday prompted senior colleagues to call
for his resignation.
Some opinion polls have put the party neck-and-neck with Ukip, the
fringe anti-Brussels party. Another poll on Sunday by ICM suggested
Labour support had fallen behind the Liberal Democrats for the first
time in 22 years.
Mr Brown is almost certain to execute a reshuffle if the election
results are disastrous for Labour. A radical shake-up could see Lord
Mandelson promoted to foreign secretary and the demotion of Mr
Darling, in spite of his calm handling of the economic downturn.
One Whitehall insider told the FT that Yvette Cooper, chief secretary
to the Treasury, was likely to be promoted to the cabinet, perhaps
replacing Hazel Blears, communities secretary.
The sense of a government in limbo was reinforced by the EEF
manufacturers' body, which said it regretted the shift of the
political agenda from the economy to parliamentary reform.
"The next six or seven months will be of absolutely crucial
importance for manufacturers, and the government should be focusing
on that," said Chris Hannant at the EEF.
Stephen Alambritis, of the Federation of Small Businesses, said:
"There's still a recession, people are still losing their jobs and
small businesses are closing down every day and we would rather
politicians were concentrating on that."
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The election turnout next Thursday could either have nose dived, as
people walked away from the election process as a whole, or they
could flock to the polls as a protest vote. We wonder which way it
would go, but now The Times seems to be pointing the way.
Relying on its Populus poll, it is suggesting that we might make 41
percent, up on the 38 percent in 2004, itself higher than the
previous poll. That is completely bucking the general EU trend, with
turn outs of 12 percent expected in member states such as Latvia.
There is no doubt as to why the British euro-elections have suddenly
become so popular - and it has nothing to do with a sudden enthusiasm
for MEPs. Simply, nearly four out of ten voters have decided to give
their domestic politicians a kicking, the only way they can short of
a lynching.
With UKIP leading the polls of the tiddlers - depending on which
polls to take notice of - an exercise which the "colleagues" would
love to think is the ultimate expression of confidence in the project
is descending into pure farce. To protest against corrupt politicians
in Britain, voters are set on sending even more corrupt politicians
to Brussels, where the gravy train is even richer and the pickings
easier.
There is no logic to this, and there is every logic to it. Since the
whole exercise of sending MEPs to Brussels is meaningless, the voter
reasons that they might just as well make the best of it and use the
election for a purpose not intended.
When the results come in, they will be just as meaningless - a
protest vote that will have no effect whatsoever on the domestic
scene, as Brown battens down the hatches and stays in office for the
full term.
Somehow, though, as even the saintly Mr Cameron is smeared, politics
will never be the same. Estate agents will never, ever again be at
the bottom of the popularity stakes.
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Posted by Richard North