02/08/2016 Newsnight

Once he was the High Vis Chancellor, now he's been disappeared.

Is the PM intending to cut George Osborne's

We've learned that Theresa May may abandon his language of a Golden Era

between China and the UK - will the change of tone

If we're resetting China downwards, and we're resetting Europe

downwards, and we're faced with the possibility of Mr Trump

in the United States, who are we going to reset upwards?

Just I get Coca-Cola to my face.

And swearing at me, in the middle of the day.

They say, "You BLEEP refugee, why are you speaking your

A month after Brexit, the migrants of Corby

are waiting to hear their fate, and whether they're

And remember this token of a bygone age?

The British passport wasn't so much something you presented

for inspection by some grubby little border policeman,

These days they have something smaller and flimsier

and looking like a passbook of the Nuneaton Building Society.

Is it time for the British passport to make a dignified comeback?

There's sacking a man, and then there's dismantling his

entire decade's work - and right now, it's not

entirely clear which path Theresa May will chose.

But the signs over the past couple of weeks suggest she was no fan

of George Osborne or his policies in government.

The Prime Minister has launched an industrial strategy,

which some are reading as a reversal of many of her former colleague's

priorities: Her instant rejection of the austerity project,

her calculated pause over Hinckley Point, her reconfiguration

of the Northern Powerhouse to include all UK cities.

Osborne is rumoured to have said he was prepared to be the most

unpopular man in Britain to get things done.

For a while every tweet he sent out seemed to confirm that ambition

But what if his legacy is now being used -

by the new PM - to take economic policy in a whole new directio,

even resetting the relationship with China?

In office he heralded the march of the makers, but the one-time maker

in chief is now a mere bystander, as his legacy is unceremoniously

marched off stage. Today marks the moment when Theresa May moved on

from Osborne economics as she summoned ministers for a new Cabinet

committee which will set her government's overall approach on the

economy. That rather 1970s notion of an industrial strategy is back, and

relations with China have taken a bit of a hit, after a review was

announced into the Hinckley know -- nuclear power plant. Downing Street

insists the delay with Hinkley Point is to allow the new Prime Minister

to study the details of such a mammoth project, but Newsnight

understands that Theresa May intends, at the very least, to

oversee a modest resetting of Britain's relations with Beijing.

Officials speak of a tonal change, in which there will be no more talk

of a golden era in which, as George Osborne used to say, Britain would

act as China's best partner in the West.

I don't think that Theresa May and Philip Hammond come from quite the

same angle that George Osborne did on this. May, coming from a Home

Office angle, might have a little more concerned about some of the

human rights types of questions associated with China, and I think

that George Osborne saw China, China's ambition to get into the

European Union via the UK as an important part of his own strategy.

That isn't going to happen now in the same way, so I think there is

some rethink about what the nature of the engagement with China is. But

former ministers have told Newsnight they are surprised that the new

Prime Minister is willing to risk Britain's reputation as a stable

investment destination by such an abrupt move on Hinkley Point.

I certainly don't think we should be grovelling, should be kowtowing. We

should treat the Chinese with respect and expect them to do the

same here, which is broadly what has happened so far. If we're resetting

China downwards, and we're resetting Europe downwards and web based with

the possibility of Mr Trump in the United States, who are we going to

reset upwards? This is a question worrying quite a lot of people,

probably. Theresa May believes one of the key challenges for Britain

outside the EU lies in rebalancing the economy and improving

productivity, by revising two words rarely heard since the days of the

coalition, industrial strategy. It is welcome Theresa May is reviving

industrial strategy, it is something we did in the coalition, it was very

popular with the business community, particularly people in manufacturing

and creative industries. It gives long-term confidence to our

industries here and it's a way by which government and business can

work together. I was very sad that it fell into decline when the Tories

took power, but if Mrs May wants to revive it, that's very welcome.

George Osborne's pet project, creating a Northern Powerhouse, has

been reconfigured as the new Cabinet committee made clear it aims to

boost all parts of the country. There is some anxiety in the North

of England, as to whether the new Prime Minister is as committed to it

as George Osborne was. He had a northern seat and it was one of the

themes he had. We will soon see how sincere they are.

Members of the regime are bruised by the speed of change, but there is a

crumb of comfort. One of the main brains behind George Osborne's

Northern Powerhouse has been given a seat in the heart of Downing Street,

drawing up the government's new industrial strategy.

Revisionism may put a very different spin onto Osbornomics

The long terms legacy of his work will not be fully

But how will the reset button - if that's what it is -

Here to discuss are Anne Pettifor, economist and member of Labours

economic advisory committee, and Dia Chakravorty

It is lovely to have you both here. We should start by saying that

actually, when you look at the Osborne legacy, in terms of

employment numbers and business creation and that pension

liberalisation, some of his achievements word truly remarkable.

The longer and weakest recovery in history. If you want to look at

public debt, which continues to rise, despite massive fiscal

consolidation, it started off it was going to be five years and turned

into ten. He just had bigger ambitions, is that the crime? That

-- debt continues to rise. There is that and low wages, low

productivity, about which he has done very little, did very little.

There is the fact wages are so low and he did respond to that with the

minimum wage, but a little too late, too little too late. What else is

there? Low investment. What is interesting is at the beginning of

his role as Chancellor, he delivered a lecture, and nice lecture, in

which he talks about imbalances in the economy, global imbalances, and

then never talked about it again. Would you choose any of those points

as criticisms of Osborne? Would you say it was wrong of him to go after

cutting the deficit and after austerity?

One thing and points out is true, debt went from 1.3 trillion to 1.6

trillion. Was that he is doing his failure to manage expectations? It

was his failure to do enough to bring it down, but to be fair to

him... I have spent most of my career attacking George Osborne's

policies, but his legacy is very much a mixed bag. There are some

good things come as bad things sounds OK things. If you look at the

good side of it, he did inherit an ailing economy, which he never tired

of reminding us about. But he did inherit that and he did bring

deficit down from 10% of GDP to 4% of GDP. What would you say to the

minimum wage being raised over ?9 or the number of jobs? At the end of

the day he realised real low wages, lower than they were before the

crisis ten years ago, were harming the economy. He woke up to that very

late in the day. Even then he has done very little about it. For

example, today the cleaners in HMRC are going on strike because although

they have been granted this new minimum wage of ?9, they are told

they will have fewer hours. Theresa May now talking in explicit terms

about an industrial strategy, not a phrase we have heard for 20 years or

whatever. Is that the right way to go, to forget the Northern

Powerhouse, to say is about every city, is it deliverable? The

Northern Powerhouse always sounded like a gimmick, a desperate attempt

to hold onto something... We needed a powerhouse everywhere across the

country. It didn't make much sense to me. One thing I would say that I

would like to see is scrapping of vanity projects like HS2, which is a

massively expensive project which is about to hit 90 billion by our own

research. We focus those on infrastructure policies which are

actually going to benefit people, because this is a pernicious project

which is bankrupting the transport infrastructure budget as a whole.

Things like that are really important and now with a good

opportunity. Really important that you shouldn't follow these things?

Exactly, take the opportunity of the new administration. Doesn't that

waste millions of pounds, millions of hours of work, in constantly

recalibrating what might have been a good idea? If it isn't a good idea

and you still see it through, you end up wasting more money in the

long run. You have to be smart. The trouble with the idea of an

industrial strategy as it needs financing and unless we address the

issues facing the City of London, and the City of London doesn't act

as a servant to the economy but master of the economy, does little

about that. He allowed the City of London to carry on as before the

crisis. This is what has happened since the crisis, banks have not

lent into the real economy. Is Theresa May going to make a

difference or have her first row with the city question that will she

take them on question I doubt it, that's why don't think an industrial

strategy will work. Where does your industrial committee sit at the

moment, does it this question mark it does exist, activities are

suspended until after the leadership election. We're waiting for the

leadership election to stop do you feel when you listen to Theresa May

now that she is an Labour territory, speaking your language? Or do you

immediately want to push back? Definitely she is trying to switch

the Tory party away from this kind of elitism which existed under

Cameron. She has been quite ruthless. Some really bold moves,

and I'd expect, in terms of removing some of the old personalities and

the old ideologies. And China? Resetting that? Interesting to see

what to choose sex with China. More kowtowing less? It has to be a

balance. -- choose what she does with China foster I think she had

shown a lot of grit and I think that's what she needs to continue to

show. We are out of time, thank you both for coming in.

Well, more than a month after the Brexit vote,

life has gone as normal for the vast majority of people in the country.

One group, though, who are anxiously awaiting the details

of our disentanglement are migrants from the EU who are fearful

about what will happen to them and anxious about whether

they are still welcome in post-Brexit Britain.

Secunder Kermani has been to the Midlands town of Corby

to hear about their experiences since June 23rd.

There's some strong language in his report.

Corby steelworks attracted hundreds of migrant workers from Scotland

Today steel has been replaced by food processing plants

And the migrants coming to work there are Poles,

But nearly two thirds of voters here backed Brexit.

Over a month on from the referendum, this group of Polish students

growing up in the town are clear it's had an impact on relations.

I think the most general comment would be, "foreigners".

That's the most common that I would hear.

What would you say when you heard someone say that?

I'd just turn around and they'd be like, oh no, that's

Who else are you saying it to when there is no one

"I wish all foreigners went back to their country."

And I was the only foreigner in the class.

The vote has affected what people say.

I think people find that it's more acceptable to say that now,

Four years ago I've been in school and I've been bitten like three

So now I'm not in school, I'm in the workplace,

and I find working with English and British people,

it's better than going to school with little kids.

My friend used to go out with me all the time and play football,

And after the referendum he told me he was scared to go

out because something might happen to him.

You've lived here for ten years, you're only 13, I guess Britain

Does it still feel like where you belong?

It does, but I'm feeling more distant to it now.

It makes me feel sad, because I lived here for six years,

And if I had the choice to stay here or go back to Poland,

At the Euro market, others say they've also been targeted

in the rise in hate crime reported since the referendum.

Like Lena, originally from Lithuania, who has been

One time it happened that I was speaking in my own language

with my grandma from Lithuania and just I get Coca-Cola to my face.

And swearing at me, in the middle of the day.

They say, "you fucking refugee, why are you speaking your

Has anything like this ever happened to you before?

I have three kids who even speak better English

Hard times because it's not safe any more, I think.

The government has announced new measures against hate crime,

but hasn't guaranteed EU citizens already here their rights

I really don't want to go back to Poland, I wish to stay here.

But what is going to be, you never know.

Under current rules, EU migrants who have spent

five years in Britain, qualify for permanent residence.

That's part of the reason why some aren't so worried

Others without families here say they can easily go elsewhere.

I feel I'm welcome here, I stay.

I feel I'm not welcome here, I go home.

For even the first country, I think Germany.

Because a lot of people are coming here to get benefits.

Many of the EU migrants in Corby find work through

The Home Affairs Select Committee has said there could be a surge

But they haven't seen any evidence of that here.

Rather than a surge, at the moment many EU migrants seem

to be questioning their future in the new Britain.

It's hard when you know that you've come here to live a better life

and you're working like other people, you're paying bills,

And they start to treat you like that.

Like rubbish, you feel like rubbish, it's that simple.

Two weeks on from the attempted coup in Turkey, President Erdogan will be

able to use powers granted by the three month state

of emergency to issue direct orders to his military -

talking to heads of his army, air force and navy - himself.

The coup attempt involved only 1.5 percent of the armed forces -

according to Turkish media - but the plotters used

Turkish ministers say this overhaul to the military command structure

But it comes at a time when the country is deeply divided

and many fear the move could create more hate and distrust.

Today the President once again blasted western powers for what he

called support for the coup - and suggested it was 'supporting

terrorism' by not leaping to his defence.

Three weeks ago on the night of the 15th of July the world

watched as an attempted coup was televised.

The Turkish military issued a statement saying

Istanbul's bridges were blocked, TV stations closed,

President Erdogan's FaceTime plea for supporters to take

Civilians fought back, the coup had failed,

Erdogan returned to Istanbul and to his jubilant supporters.

He blamed the American-based cleric Fethullah Gulen for the dissent

and started to weed out those considered to be his dissenters.

Turkey is now under a state of emergency.

3,000 military officers have been dismissed and 160

3,000 judges and prosecutors have been pushed out,

over 100 media organisations have been closed, 40

So far all in all, more than 60,000 people in the military, judiciary,

civil service and schools have been either detained,

Talip Kucukcan is on the Foreign Relations Committee

Thank you for coming in. Your president we stated today that this

coup against him was supported by the West and intimated that the West

was supporting terrorism. Do you stand by those words? What we see in

Turkey is a threat to Turkish democracy and elected government and

we have seen that people were killed who defended their democratically

elected government. When you look at the gravity of the problem and those

involved in the coup attempt, they might be a conspiracy theory but

also there are facts on the ground if you look at the testimony of

those people, they indicate there are certain groups behind that.

Particularly the Fethullah Gulen movement. The exiled cleric. The

exiled cleric. If you look at the testimony of those involved in the

coup attempt they said they were members and they were given the job

of listening to the army people, the president, the chief of staff. When

you spoke about Western powers supporting terrorism, that is not

quite the same thing. What Turkey expected from the Western powers is

to be with Turkey when there was such a big threat to Turkish

democracy. It is not only the coup attempt that Turkey is based, in

recent years and especially in the last decades we have seen a threat

from the PKK to Turkey, then the threat from Daesh and the Syrian

crisis. I think Turkey expected a firmer stand for the Turkish

democracy, for Turkish civil liberties. I think this in my

understanding on the part of Erdogan, he wanted to become part of

Europe, that is the story of Turkey since he came to power in 2002. You

remember all those reforms for Turkey to become part of the EU. So

heart -- how our relationship between Turkey and the EU and how

does the migrants deal now stand? As far as I can see the deal is still

on the table and Jackie really has been carrying out its own

commitments because of the three main objectives to the deal, want to

stop the death of people on the Aegean Sea. This is not put you off?

If you look at the deal, Turkey is carrying out its responsibilities.

One was taking refugees illegally arrived on the Greek islands and

that is taking place but when it comes to Visa liberalisation, that

is not resolved. And looking at burden sharing, this also has not

been carried out by the European partners. When the West looks at

Turkey and its response, and they may have been sympathy for Erdogan

against the coup, but when you look at what has happened now, the purge

of 60,000 people, the tensions in Ankara, 1500 university deans told

to step down, the academics, the journalists, the imprisonment of

people who clearly did not have any part in that coup itself, it looks

like Turkey is not a democracy that the West can deal with. We

understand the concerns of our Western partners, of course. But if

you look... So you say we should not done it? They might of course be

some concerns and voices, but when we look at the state of emergency in

Turkey as I have just explained, the enormity of the threat that we have

been facing, it is not just the academics and the deans, but an

organisation whose members have been infiltrating into the state system.

The judiciary, the army and intelligence. So there might be

more? There might be more. We now have to see, when the dust settles

we will see things case-by-case. At the moment you have 60,000 in

prison, do think that the number will rise question mark no, not in

prison, the numbers you talk about include those people suspended from

their work, it does not mean that they are in prison. How hard could

the number rise? I have no idea at the moment, I cannot say, but if you

want to work in state institutions you have to take sensually organised

tests. What we know today is that questions were stolen by the members

of this Fethullah Gulen organisation. And now we will find

out who these people where when they wanted to become judges,

prosecutors, policemen, intelligence. We know Erdogan does

not tolerate dissent against him even in the form of best satirical

poem. One such poem was written by Boris Johnson, our Foreign

Secretary, I wonder how well received he would be in Turkey now.

Of course he will be received well because Turkey and the UK have been

allies for a long time. If you look at the relation between Turkey and

the UK, there is a lot of trade between the two countries, many

British companies are active in Turkey with a lot of investment. I

think these are issues that we've got to look at rather than the

perception. Thank you for coming in. Now that we've voted

to leave the European Union, do we have any further use

for our EU passports? Post Brexit, some are calling

for a return to the sturdy, personalised, navy passports of old,

personally signed by the monarch and - no less importantly -

weighted with the endorsement of previous presenters

of this programme. So would this be a welcome

restoration of a proud national institution -or a return to good

old days of the british rail buffet Stephen Smith - who,

confusingly lists his occupation as 'journalist' in his passport -

throws the deabte - # Come fly with me, let's

fly, let's fly away #. Oh, the golden days of travel -

the cabin trunks, the silver service,

the monogrammed sick bags... In the days when the sun never set

on the British Empire, it seemed the holder of a British

passport never had It wouldn't last forever,

as this evenhanded piece by a young The British passport wasn't so much

something you presented for inspection by some grubby

little border policeman, It was solid, sturdy

and understated, like the front door of number ten, the radiator grille

of a Rolls-Royce or the These days people still

want to travel in style, but they have to do so on something

smaller and flimsier, and looking like a passbook

of the Nuneaton Building Society. Today the Sun called for the return

of the navy blue British passport, saying, "The Government must make

plans to reintroduce the blue ones, We'll be the first in

the queue for a new blue." CHANITNG: "WE WANT

OUR COUNTRY BACK!" This was former Ukip leader

Nigel Farage during Nobody's over keen on their passport

photo, good luck to this loser But what do people feel

about the passport itself? I feel like I'm being interrogated

by the Bulgarian secret police... The director of the Design Museum

never leaves the house without his. If you open it up, you find

those immortal words about her Britannic Majesty requests

and requires us to leave, If you actually look

at a contemporary passport, it's full of feel-good

notions of Britishness. This looks like the Wind

In The Willows deep down. There's a dragon fly

in there somewhere, and strangely, isobars, which I guess

is about the weather. My family came from a country

that no longer exists, They arrived in the 1930s,

and for a long time they had to have their Yugoslav passport

with its blazing flags of communism and its star of socialism,

stamped with the words, For my parents, getting their first

blue British passport What about the thoughts of a travel

writer, forever crossing frontiers, collecting exotic stamps

in their passport? We found one who's just

been using hers to get I don't have any romantic attachment

to it, and I think that the idea of going back to the old passport

is pure jingoism with no The last thing we need at the moment

is to be more inward looking. We need to find ways of connecting

with Europe at this time. For families trying to get away

on holiday this summer, kipping in their cars at Dover,

uppermost on their minds has been Our current passport isn't

beautiful, it's functional. When I looked at the thing

in the Sun, the blue one, it's even clunkier, a clunky

passport, not beautiful at all. We've got to start thinking

of beauty, and that can be done... There's a big difference

between funky and beauty, and design can make something

beautiful, and that sums up Now, where's that bloke

in the arrivals hall, holding up Hello. Wednesday's weather brings

with it a day of contrasts. We will see some dry, sunny and windy

weather across England and