05/10/2016 Newsnight


05/10/2016

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For the referendum was not just a vote to withdraw from the EU.

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That the world works well for a privileged

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We will not allow their children to have the

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same opportunities that wealthier children enjoy.

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Time to reject the ideological templates provided by the socialist

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Theresa May tells Britain a change has got to come.

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Tonight, Newsnight has learned of a major shift in economic policy

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The prime minister spoke of the unfair side effects

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I understand the government's warming up to a more Keynsian fiscal

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One of the Prime Minister's closest advisors joins us live,

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and we'll discuss the impact of the whole speech.

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This week was about one woman - and one speech.

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Today, we heard from Theresa May - full throated in her pitch

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We'll come onto the land grab in a second.

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But first, Newsnight has learnt of a brand new direction that her

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Theresa May talked of the bad side effects of quantitative easing.

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So are we about to see a quiet revolution there too?

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Our political editor Nick Watt has the story and he's with me now.

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What have you learned? I understand that Theresa May wants to embark on

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a major shift of economic policy. This is to move away from what

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George Osborne described back in 2009 as monetary activism which

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brought us low interest rates and quantitative easing. Her view is in

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the future the emphasis should be more in the direction of fiscal

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policy, to you and me that means tax and spending. This is what she said

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in her speech in Birmingham earlier today.

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Because while monetary policy with superlow interest rates

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and quantitative easing provided the necessary emergency medicine

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after the financial crash, we have to acknowledge

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that there have been some bad side-effects.

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People with mortgages have found their debts cheaper.

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People with savings have found themselves poorer.

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A change has got to come and we are going to deliver it.

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Her speech today came after a speech from Philip Hammond on Monday. He

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said as the government response to the Brexit vote, fiscal policy may

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have a role. Downing Street are making absolutely clear that

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monetary policy is solely the preserve of the Bank of England

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which is independent. But I understand that her view is that as

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we move forward, and possibly as early as the Autumn Statement on the

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23rd of November, we will see an emphasis away from monetary policy,

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although the Bank of England is still in charge of that, in favour

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of fiscal policy. And, whisper it carefully, when Theresa May talks

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about public investment and getting a better return on the investment,

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it feels to me as if we may be moving mildly and slowly to a more

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Keynesian approach. What do you sense is driving this shift? There

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is one simple explanation which is changing times require changing

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circumstances and responses. This tells us a lot about her philosophy.

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She said these low interest rates have hit low income earners who have

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seen their savings suffer, and uses those are the sort of people who

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feel disaffected and were more likely to vote out in the Brexit

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vote. She was saying her big message today was that vote on the 23rd of

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June was not just about leaving the European Union, it was a cry of

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desperation from people who feel alienated from the system and that

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it is those people that she wants to champion and it is those people she

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says are leading her to try and redefine the centre ground of

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British politics. We will pick-up on that in a moment.

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Most leaders appeal to the centre ground.

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Some leaders create the centre ground.

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Theresa May was in no doubt which one she wants to be.

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She attempted to stride the harbour - like the medieval vision

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of Colossus - left foot firmly in praise

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of state intervention, right foot placed on the pulse

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It was a big gesture - and a towering presence of a speech

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which name checked not just Cameron, Major and Thatcher

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Miliband and McDonnell may well have heard echoes - or more

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But as any classics scholar will tell you, Colossus snapped

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at the knees as an earthquake sent the statue tumbling to the ground.

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So tonight, we ask the big question of the May premiership.

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And can she remain upright in her attempts to occupy so much of it?

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First, a reminder that perhaps not all of Theresa May's vision is

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entirely new. To stand up for the week and to

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stand up to the strong. He may be strong at standing up to the week,

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but he's always weak when it comes to standing up against the strong. A

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director who takes out massive dividends while knowing that the

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company pension is about to go bust. Under Labour there will be no more

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Philip Greens at all. Our lower skilled workers with less education

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to compete directly against vulnerable American workers and they

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are hurting a lot of our people that cannot get jobs. Someone who finds

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themselves out of work or on lower wages because of low skilled

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immigration, life simply doesn't seem fair. We need is an economy

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with that works for every part of this country so that no community is

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left behind. To build a country that works for everyone, not just the

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privileged few. We mean -- we need to make sure that our economy works

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for everyone, not just those at the top. Clement Attlee, with a vision

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to build a great institution. Clement Attlee who presided over a

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great Labour government. That is why when markets are functional we

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should be prepared to intervene. Some people blame the companies but

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ultimately, I don't think that is where the blame lies. I think it

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lies with government on not having the strength to take it on. Not

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having stood up to the powerful interests. Lots of echoes there, if

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you think you have heard it all before, you might have heard some of

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it before. George Freeman is Theresa May's

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designated thinker, I want to come onto the philosophy

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that you and she are setting out, but just a word on the story which

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Nick brought us there. Does that sound right, the resetting economic

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policy away from what we have seen, the concert is easing towards

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something which seems much more Keynesian? Yes, Philip Hammond will

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set this out in the Autumn Statement. Theresa May has been very

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clear that this model of bail out the banks and stabilise the economy

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has had a profound effect on distribution of wealth. Those with

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assets have done very much better than those without. We have to

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listen to the roar that we heard this year and we have to think that

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with money available at 0%, we want to drive industrial strategy and get

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infrastructure built, we have to make sure we have all the mechanisms

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to make sure money flows properly. So this is a green light to all

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things we can expect to come? I don't know about all the things. If

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we are to build a model of economic growth with opportunities, creates

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hope that through the pain of getting through the debt crisis that

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there is growth and sustainable growth for tomorrow, and the people

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in places that have been left behind, and see infrastructure and

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opportunity. Does she shut off the QE tap? It is up to the Bank of

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England to set out with their mandate how they handle that, but

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she is signalling loud and clear that we have to understand what

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affect this model of growth has had for those who are paying for it, the

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citizens of this country, and we have to make sure the economy works

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for them. OK, let's get the big speech. There is talk of the quiet

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revolution but it was not quite at all, Brexit, it is the biggest thing

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to happen to this country in decades. It was certainly a

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revolution. There was a moment of shock. She has done three big

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things, firstly to signal we heard it, we heard that shock and the roar

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behind it. Yes, people have voted to leave the EU but we are also hearing

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something else and we cover this party, are listening. She was rates

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clear that we will be reformers and we will put in place the change to

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deal with it. Secondly, when you think of the division in the spring

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in this country and the Conservative Party, she has unified us and she is

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talking about unity of the country, Scotland, Northern Ireland, England

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and Wales. But this was a big land grab. Ed Miliband will have heard

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echoes of many of his speeches, even the predator speech which he was

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condemned for and Aaron Banks said she has relabelled the Conservative

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Party as Ukip. Does that make you happy? Not at all. She has signalled

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that we will go into the territories that Labour have abandoned. Labour

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have abandoned their working-class roots and Ukip are stealing a march.

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She mentioned the working class seven times. Who are the working

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class? She was also cleared to call out the sneering dismissal of the

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basic needs, desires and aspirations of the working class. She meant it

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in a very generous way... But who is that? They work and want the simple

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things in life. They want to know they are not being taken for

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granted. But are they the same as alarm clock Britain or the strivers

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or the hard-working families? Is she talking about a different set or is

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it another word? Why does she bring class back into it? I think she is

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trying to make clear that there is a cohort of people in this country, I

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don't think she was meaning anything derogatory at all, there is a group

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of people in this country who have tightened their belts, spend less,

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worked harder. Many families, everyone in the family working and

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this model of growth has not been working for them and she is

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absolutely determined, if the Labour Party are to abandon them, we will

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not. You think you can talk tough on immigration. Some language has been

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called xenophobic and you can appeal to the left, if you like, the

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traditional left? Banker I completely reject. Xenophobia has

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come from Ukip, filling the space which has been left by the Labour

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Party and this model of growth. The third thing today's she has put

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herself up there with a speech, a vision, omission, we have now got to

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it into policy and deliver it. She is signalling that we will go to the

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next stage and make sure everyone can play in this game, not just the

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few. Thank you. But enough for a moment from us -

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the journalists and speechwriters and commentators -

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the newly-named and shamed What of all those she was really

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appealing to with this speech? John Sweeney gathered

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a roomful of Labour voters, Tory voters, Remainers

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and Brexiteers in Birmingham. Six Birmingham people in a room,

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Stuart Hansen, Ukip activist. Jackie Cummins, floating voter. An

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economics student labour, a doctor, Tori. A floating voter and a Tory

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who voted for Brexit. Theresa started them up all right. Do we

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have a plan for Brexit? We do. Are we ready for the effort it will take

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to see it through? We are. Can Boris Johnson stay on message for a full

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four days? LAUGHTER

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She is not Ken Dodd but she had a go. A relaxed feel. You felt relaxed

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listening to her. She was more relaxed in last year's conference

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speech I thought when she was Home Secretary. There was more of levity

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this time round and I think she is comfortable in the she is in now.

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We are truly the party of the workers, of public servants, of the

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NHS. APPLAUSE

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It was interesting the way she has taken the Conservative Party more

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into the middle. Talking about social fairness and justice. And

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wanting to be able to reach both parts of the Conservative Party as

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never before. Surely this is bad news for Labour? Stealing their

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boats? It is a huge risk for Labour, stealing Labour's clobazam language.

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At the same time, with all of the language, I think Labour voters are

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intentionally Labour Ukip inclined and she has thrown red meat to the

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traditional Tory voters. I would agree, there was a lot of rehashing

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of old policies and mantras without necessarily the substance behind it.

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Come with me and we will write that brighter future, we will make that

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change. What is a verdict of the Birmingham judges? It was delivered

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well. It came across well. I would have to say she is nothing like

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David Cameron, which is a positive. Jackie, you voted for Labour in the

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past? I have, yes. Did she rock your boat? She did and I am waiting to

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see what she can deliver, if she can stand to her word. Well delivered,

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she was pitching to Labour voters strongly and she sounded like the

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last Labour manifesto. The test if she can deliver it. I thought you

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set had very clear visions of the revival of the nation. I was a

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little bit enamoured, shall we say! You used to be Lib Dem? Where you

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turn on and off? Middle ground. She came across reasonably well, but

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parts of the speech were a little bit soppy. I thought your priorities

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are uniting the country that needs to go through a lot of change and

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she got that across really well. Soppy? Yes, the Brownlee brothers,

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that is a great story to watch. As other competitors ran past, he

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stopped, reached out his hand. And gently carried him home. I thought,

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pass me the sick bucket! To sum up, thumbs-up?

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LAUGHTER I could not count those films! We

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will come back to that later. Joining me now, Julian Glover,

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former speechwriter and Jonathan Friedland

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from the Guardian. Julian, you have written speeches

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were David Cameron, how do you see this? A brave speech? Certainly

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break, a great success, she came across as somebody who really

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believed what she was saying, this is something she has been storing up

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many years, she has finally get the chance to get it over and she said

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that well and interrupted her own applause at times, it was not

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completely fluent but heartfelt and it will have impressed voters and

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had extremely strong ideas at the core and that

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helps the speech. You told us earlier you thought it was rather

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cowardly? In the form that it deposited itself as a uniting

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speech, everyone, this party is but everyone in Britain and it created a

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character of immediate predecessors, George Osborne, David Cameron, the

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liberal elite, people like myself and Jonathan, were accused of having

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sneered at the working class. And Melanie, also! I am outnumbered! I

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think we all fall into the metropolitan elite somehow and we

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have to just... Confess and move on! But the call of that but he did

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suggest there was a group of people who somehow meant harm to Britain

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and she is speaking for a fresh centre ground and she reinvented the

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centre ground. That was a little bit cowardly and not a fair description

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of her predecessors but in terms of ideas it was strong. You are Times

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columnist, that is very establishment by the judgment of

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most people, do you think this speech reached the heart of Britain?

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I think she has put her finger on an important point, that the division

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now is not between left and right, these are meaningless concept and it

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is not between parties, any more, it is within parties and the great

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division, and it has been like this for at least three decades, she is a

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first politician to articulate this, the great division is between

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putting the individual first, myself, my lifestyle, I cannot tell

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anybody else how to live, my culture is no

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better than anybody else, it is liberal internationalism that were

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part of a brotherhood of man, there is something unsavoury about the

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nation and the particular and identifying with a particular

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community with a particular nation and particular culture... What are

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you saying that people are not allowed to admit to? Were not

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allowed to identify with the particulars of the nation expressing

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itself through democratic self-governance. This is until

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Brexit, reflecting a particular culture, tradition, set of

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traditions, religion, literature and the rest of it. Do you think that

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has been dead and? And left and right have been complicit, an unholy

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Alliance, on the left, what I would call social liberalism,

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internationalism, and on the right, economic liberalism, and both have

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put the individual alone at the heart of politics. This is quiet

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revolution? Melanie is projecting her own and issues. This is not

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necessarily what Theresa May signed up for, a nation without patriotism,

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until June 23, and then we switched onto some other people. David

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Cameron, he would have spoken in collective terms of his predecessors

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also. This was a very big deal, this speech. It was formidable and a very

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effective speech. And a chartered a lot of ideas. The big one for me

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was, here is the second woman Prime Minister breaking from the view of

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the first one, touching on individualism, there is more towards

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us and individuals, there is a society and it really does include

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the state so this was a plea for active interventionist government.

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Ed Miliband, Heseltine could have delivered it. We have this admission

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there will be a Keynesian economic policy. Was this essentially

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borrowed... The editor of the Daily Mail could have written other chunks

:20:57.:21:00.

of this! It was remarkably clever or means nothing? Things are changing.

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And the old labels, things fall apart, so the centre cannot hold, it

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is being reformed before our eyes about where politics lies. I guess

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she would just be the Prime Minister for Brexit? And she is trying hard

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not to be that. She has, in strongly and sensibly with the first speech,

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the good that the state can do, that is a powerful idea. Because that

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Melanie is referring to is the big debate in politics at the moment is

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inside the Conservative party between George Osborne and everybody

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else in the Cabinet agreeing with Theresa May. Open versus closed.

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George Osborne should be the leader, quite frankly. That is the division,

:21:43.:21:47.

social liberalism versus nation and community and the poor, for whom the

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left are supposed to stand for, have been left high and dry by economic

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and social liberalism. We need community. Labour has set its face

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against this, saying people who stand up community in the sense of

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the nation by xenophobic, bigoted and all the rest of it and Brexit

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was a result of those people against the sneering metropolitan

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intelligentsia. You are painting the idea of the people had an issue of

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migration, that has automatically been branded and that is not right,

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you can believe still in the nation, you don't have to sign up for the

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rest of what you describe. This point of believe and remain

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distinction is the big fault line in politics within parties and outside.

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That does go to open and closed. People who to be independent of the

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EU, to restore them a chronic -- democratic self-governance have been

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called xenophobic. Nothing to do with immigration... The word was

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parochial. The first term I had the word being used without it being

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derogatory. She has a word about -- she has a point about the

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metropolitan elite? Representing areas of Britain that have been

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ignored. For me, it'll be the people in the outer suburbs of times like

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Derby, seats like North East Derbyshire Newal Road I live, is it

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the Conservative Party nearly one, traditionally Labour, quite right

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wing in many cultural attitudes, Labour has walked away from that

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seat and the Conservative party has a chance and I think it is true that

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at the glossiness and the London angle of politics did not speak for

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those people. She wants to be defined by being non-London? In the

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way that people find very reassuring. The word parochial is

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interesting because parochial as Bilic of abuse but there are huge

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swathes of people for whom the parish and the community is where

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their whole lives and well-being are rated. The famous metropolitan

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intelligentsia... They are not linked that way. Let us not pretend

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this is a new device, to reel against the hated elite. There is

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something of the strawman in this, the idea of the elite on their

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yachts but they are also the same people who are also liberal on

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social issues. It is a very convenient device. It can be the

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many against the very few. It is the self, I am making money and free to

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live exactly as I choose and to hell with everybody else. That is -- that

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is an entirely on their representation at David Cameron, he

:24:34.:24:36.

talked about the big society, he worked for these things and it is

:24:37.:24:40.

unfair to say that Cameron and Osborne, that legacy and Tony Blair

:24:41.:24:45.

and Gordon Brown, that people dying. It has been airbrushed. It is a

:24:46.:24:49.

little bit and we have record employment here, and with people

:24:50.:24:57.

from the UK. I think they will challenge Theresa May with some of

:24:58.:25:01.

the easy promises that might be made to people are not delivered, she did

:25:02.:25:05.

not talk about the deficit. We have run out of time. I am so sorry!

:25:06.:25:07.

Thank you all so much. One reason there appears to be

:25:08.:25:10.

so much centre ground, of course, is the absence of what she sees

:25:11.:25:13.

as any workable opposition. She dubbed Labour

:25:14.:25:15.

the new nasty party. And she made a clear appeal to Ukip

:25:16.:25:17.

- a party who as of today - cannot even say for sure

:25:18.:25:21.

who leads it. After Diane James quit less

:25:22.:25:23.

than three weeks into the job - the party is wondering

:25:24.:25:26.

what or who comes next. Steven Woolfe - who memorably missed

:25:27.:25:28.

the deadline last time around - has thrown his hat into

:25:29.:25:31.

the ring today. Aaron Banks, the businessman who has

:25:32.:25:33.

bankrolled Ukip in recent years I asked him about the lack

:25:34.:25:36.

of authority that Diane James complained about in her resignation

:25:37.:25:41.

letter. Well, I think it has been clear

:25:42.:25:44.

to everybody that there is a rift in the party and we have this time

:25:45.:25:49.

of faction led by Neil Hamilton and They made his life very difficult,

:25:50.:25:53.

particularly in the referendum. And it was those two

:25:54.:26:00.

who made her life difficult, was it? I wouldn't say that exactly,

:26:01.:26:03.

but what I would say is she got elected on the idea of her reform

:26:04.:26:07.

agenda, which she obviously felt So for the party to go forward

:26:08.:26:09.

there is going to have to be You talked about a new direction,

:26:10.:26:14.

a kind of momentum for the right. Is that where you would still

:26:15.:26:19.

like to go? As a result of the referendum

:26:20.:26:21.

campaign, we had nearly And we think that is quite

:26:22.:26:23.

powerful and we certainly If you look at what is happening

:26:24.:26:30.

in Italy with the Five Star movement, I think there

:26:31.:26:35.

is still scope for an online movement but you would really have

:26:36.:26:37.

to say to yourself, if you looked to Theresa May's speech today,

:26:38.:26:40.

it was really Nigel Farage It is all the policies he has been

:26:41.:26:43.

condemned for for a very long time. And what it does show is that

:26:44.:26:47.

in the end, pressure does pay off, particularly if it has

:26:48.:26:51.

got public support. So she is stealing your

:26:52.:26:53.

voters, pretty much? I don't know whether

:26:54.:26:55.

she is stealing. She has basically today rebranded

:26:56.:26:58.

the Conservative Party Ukip. Many people would say

:26:59.:27:03.

he is but I don't think he is. He got in with some very

:27:04.:27:12.

specific objectives, If the Tories have adopted Ukip,

:27:13.:27:14.

you don't need to exist? If you look at the General Election,

:27:15.:27:21.

Ukip finished second all over the north, in places the Tories

:27:22.:27:26.

cannot possibly win. And, in fact, the analysis

:27:27.:27:30.

of the General Election result showed that it was Ukip votes

:27:31.:27:32.

in marginal seats that gave So I think there is a huge

:27:33.:27:35.

opportunity to take on the Labour Party and actually

:27:36.:27:43.

make a huge difference. It is jolly weird when somebody

:27:44.:27:46.

like Steven Woolfe, who today said he is standing, nearly defected

:27:47.:27:49.

to the Tories himself? Politics nowadays is

:27:50.:27:54.

pretty weird, isn't it? Give us a sense of who

:27:55.:27:57.

you are backing. I don't blame him, by the way,

:27:58.:28:00.

in a sense because it was treated In the last leadership election

:28:01.:28:03.

he was not allowed to put his name forward because his forms were 17

:28:04.:28:11.

minutes late, despite the fact he had been trying

:28:12.:28:13.

all day to submit them. So this is all about personality

:28:14.:28:17.

rifts and not policy rifts? I think the party has

:28:18.:28:19.

to professionalise, it has to get its act together,

:28:20.:28:27.

but Steven Woolfe could actually do that, particularly in the Labour

:28:28.:28:30.

heartlands, he is I know the media like to write off

:28:31.:28:35.

Ukip but Ukip have fundamentally I don't think anyone is writing

:28:36.:28:39.

you off but we are Your money would follow Steven

:28:40.:28:45.

Wolfe? I will back the party

:28:46.:28:47.

if it is reformed and has You called the last lot out

:28:48.:28:53.

of their depth in a paddling pool. Can I ask if it was Susanne Evans

:28:54.:29:00.

or Paul Nuttall or Raheem Kassam, I think Steven Woolfe is the one

:29:01.:29:04.

candidate who could do it. So without Steven Woolfe, basically,

:29:05.:29:11.

Aaron Banks' money isn't in Ukip, He is going to win overwhelmingly

:29:12.:29:14.

so I don't think it is really Can you rule yourself out

:29:15.:29:21.

of the contest? I don't think Ukip needs

:29:22.:29:30.

a leader that is more For all the bad press it gets,

:29:31.:29:32.

the financial services industry employs more than a million people

:29:33.:29:41.

in this country - indeed - it's something we do well -

:29:42.:29:44.

most of the world's biggest banks A scheme called passporting allows

:29:45.:29:47.

them to trade all over Europe, and the worry up till now has been

:29:48.:29:52.

what happens after we leave the EU. Well, the City, it seems,

:29:53.:29:56.

is putting its faith Adam Parsons asks if it really

:29:57.:29:58.

is the answer, and crucially if our European friends really

:29:59.:30:06.

want to help London. Are there cracks appearing

:30:07.:30:22.

in the City of London, the very heart of our

:30:23.:30:25.

financial services industry? This place has known some heady

:30:26.:30:30.

times and some very public crises. But it remains an incredible machine

:30:31.:30:34.

for generating billions But now the future is

:30:35.:30:37.

becoming rather confused. The industry is facing huge,

:30:38.:30:46.

almost existential, questions We will be hit in two

:30:47.:30:49.

years down the road. The problem at the moment

:30:50.:30:57.

is we don't quite know We don't know where we are going

:30:58.:31:02.

to end up and we don't know So why all those nervous

:31:03.:31:07.

looks and furrowed brows? It's the system that

:31:08.:31:17.

lets our financial institutions - that's everything from insurance

:31:18.:31:24.

giants to hedge funds and our big famous banks operate

:31:25.:31:27.

easily across Europe. It means that a Spanish

:31:28.:31:31.

bank can work in Italy or an Italian insurance giant can

:31:32.:31:36.

sell its products But the biggest beneficiary has been

:31:37.:31:38.

Britain. Companies come from all over

:31:39.:31:41.

the world to base themselves here. Partly because of the access

:31:42.:31:49.

that passporting gives It is a system that has

:31:50.:31:52.

worked pretty seamlessly. Pull out of the EU and you pull

:31:53.:31:56.

out of passporting. With no certainty about

:31:57.:32:04.

what will follow. Well, if you walk the halls

:32:05.:32:08.

of offices in the city or in Canary Wharf right now,

:32:09.:32:10.

of course there is a lot Just as there is across the economy

:32:11.:32:13.

and society in general because we just don't

:32:14.:32:18.

know what Brexit means. Is it a soft Brexit, a hard Brexit,

:32:19.:32:22.

what are the implications of that? If passporting is not an option,

:32:23.:32:32.

then some believe there is still a way through the fractures,

:32:33.:32:35.

and it is a process It is about proving that

:32:36.:32:37.

a country's system of laws, rules and regulations

:32:38.:32:44.

is the equivalent of those that govern countries

:32:45.:32:46.

across the European Union. Do you, for instance, have the same

:32:47.:32:50.

rules about foreign exchange trading Prove all that and you can

:32:51.:32:53.

finally claim equivalence. And a license to

:32:54.:33:03.

trade across Europe. The point about equivalence is it

:33:04.:33:07.

does the job of passporting Because these firms have the right

:33:08.:33:10.

to sell into the single market on the same terms as anyone

:33:11.:33:18.

in the single market. The problem is, it is relatively

:33:19.:33:23.

untested, untried and untested. And the rules, essentially,

:33:24.:33:30.

once we leave the EU, Equivalence has to be granted

:33:31.:33:33.

by the European Commission so it is not guaranteed

:33:34.:33:39.

and it is not timely. More than 30 countries from all over

:33:40.:33:44.

the world have already Seeing as our regulations

:33:45.:33:47.

are based on European laws, It looks easy but when Switzerland

:33:48.:33:51.

tried to do it, they couldn't. We shouldn't kid ourselves

:33:52.:33:57.

that it is going to be Of course, I hope that it

:33:58.:33:59.

will be easy. But I just sense that the Germans

:34:00.:34:04.

and the French are particularly keen on making all sorts of statements

:34:05.:34:07.

about how big financial institutions will be terribly welcome

:34:08.:34:11.

in Frankfurt and Paris. By definition, equivalence

:34:12.:34:16.

is all about following European legislation and that creates

:34:17.:34:19.

an important question. So what happens if European

:34:20.:34:22.

regulators want to bring in new rules that we don't want

:34:23.:34:29.

and don't agree with? If we end up signing up

:34:30.:34:34.

to all the same things that we had before, all those people who said

:34:35.:34:37.

they wanted to leave to try to get around things like the bankers'

:34:38.:34:41.

bonuses provision that was imposed upon us by Europe may find that

:34:42.:34:43.

we're still going to have to comply with that in order to get access

:34:44.:34:48.

to the European market. One of the leading academics behind

:34:49.:34:54.

the Brexit campaign insists it's about choice - that we should

:34:55.:35:00.

embrace equivalence but also be prepared to walk away

:35:01.:35:03.

if the rules change. The EU has not a very good track

:35:04.:35:07.

record in the way it treats We have had proposals

:35:08.:35:12.

for the financial transactions tax, we have had things

:35:13.:35:17.

like the bonus cap. All of which are hostile,

:35:18.:35:20.

really, to what they regard The basic point is, actually,

:35:21.:35:23.

from the point of view of the city and the national interest,

:35:24.:35:29.

we don't care. He thinks the city will prosper

:35:30.:35:33.

regardless, but with no equivalence deal in place,

:35:34.:35:35.

plenty of financiers I have spoken They are making sure that whatever

:35:36.:35:38.

happens in negotiations that go forward, and we don't know

:35:39.:35:45.

how they will play out, that they will continue

:35:46.:35:47.

to serve their customers. All of the banks, the international

:35:48.:35:49.

banks and the UK banks, are making contingency plans to make

:35:50.:35:53.

sure that they can carry on serving their customers

:35:54.:35:56.

across Europe in terms of looking at what operations they might have

:35:57.:35:58.

to move to other The UK relies on its financial

:35:59.:36:01.

services more than any Trade with European companies

:36:02.:36:06.

and governments has been And that is why

:36:07.:36:11.

negotiations will be tough. The moving parts here

:36:12.:36:16.

are absolutely staggering. And I think it is going to take time

:36:17.:36:20.

and I think it is going to take goodwill on both sides

:36:21.:36:24.

to make this work. But I would also say that for the UK

:36:25.:36:26.

and for the EU, there are still massive incentives to find

:36:27.:36:30.

a solution that works All the while, the Brexit countdown

:36:31.:36:33.

goes on and the longer we go without a deal,

:36:34.:36:42.

the more that nerves will fray. We know there is a strong

:36:43.:36:47.

possibility it is going to be a hard We will start to get really hurt

:36:48.:36:52.

and get really nervous Right now, we're putting boards

:36:53.:36:58.

in front of our windows to make sure We understand that

:36:59.:37:04.

our alternatives are. One senior banker told me these

:37:05.:37:08.

will be the negotiations The city is the financial capital

:37:09.:37:16.

of the world and right now it is having to deal

:37:17.:37:23.

with a changing, To the unsuspecting ear,

:37:24.:37:25.

the hits of Michael Jackson, George Benson and other soul stars

:37:26.:37:35.

might have come from the heartlands In fact, many of them

:37:36.:37:39.

owe their origins to the hardscrabble, bluesy

:37:40.:37:45.

delta of...Lincolnshire. They were written by

:37:46.:37:48.

Cleethorpes's own Rod Temperton, whose death was announced

:37:49.:37:51.

today, just 66. He said, I want to put a harp on the

:37:52.:38:12.

front of it. I said to Rod, if you do that, no one will play it.

:38:13.:38:21.

American soul radio will not play it and radio one will not do it because

:38:22.:38:25.

it does not fit any genre. He said, that is why I want to do it. It is

:38:26.:38:33.

the great untold story of pop that almost everyone has heard by now,

:38:34.:38:38.

the maestro of black music who turns out to have been a pallid fish

:38:39.:38:44.

batter from Cleethorpes. Quincey always talks about thinking I must

:38:45.:38:49.

have been black, before he met me, because of the music of Heatwave.

:38:50.:38:57.

Jones was looking for a writer for Michael Jackson's first solo album.

:38:58.:39:03.

One night we were in the studio working and the phone call came

:39:04.:39:06.

through. I was really shocked because this was a guy I used to

:39:07.:39:12.

listen to his records on Saturday afternoons in Cleethorpes with my

:39:13.:39:19.

mates. I was really flattered. # rock with you... The whole thing

:39:20.:39:27.

took two weekends and the whole thing was amazing. By the time it

:39:28.:39:32.

was over Quincey and I have become such buddies and he said I want you

:39:33.:39:38.

to work never think I am doing, so I said, OK, great. Those albums, the

:39:39.:39:51.

Dude and Give Me The Night were just amazing records to make because

:39:52.:39:55.

there were so many people involved. Everybody is giving it up and it is

:39:56.:40:00.

just a lot of fun to be involved in a situation like that. Rod Temperton

:40:01.:40:12.

also wrote Michael Jackson's Thriller, including a wrap for

:40:13.:40:16.

Vincent Price scribbled in the back of a cab. I am frantically writing

:40:17.:40:22.

in the back and when I got to the studio I saw this limousine pulled

:40:23.:40:27.

up to the front and out stepped Vincent Price. I said to be cab

:40:28.:40:31.

driver go round the back, so we raced round the back. I jumped out,

:40:32.:40:37.

went through the back door, grabbed hold of a secretary and said,

:40:38.:40:42.

photocopy this, quick! I raced through and that it on the music

:40:43.:40:47.

stands and Vincent walked in and just hit it, two takes. Darkness

:40:48.:40:55.

falls across the land, the midnight hour is close at hand, creatures

:40:56.:41:01.

crawl in the search of blood, to terrorise your neighbourhood. I

:41:02.:41:08.

remember when Michael Jackson toured England, either the Daily Mirror or

:41:09.:41:13.

the Sun sent reporters up to my hometown. There was a great headline

:41:14.:41:19.

and I have still got it: Grimsby fish the litter wheels in to Ashman

:41:20.:41:25.

reels in fortune for what code Dzeko!

:41:26.:41:30.

Remembering the music of Rod Temperton.

:41:31.:41:34.

We leave you with Theresa May's Birmingham peroration.

:41:35.:41:37.

We weren't sure it was clear enough quite what the takeaway was,

:41:38.:41:39.

So to everyone here this morning, and the millions beyond, whether

:41:40.:41:46.

Leavers or Remain, I say, come with me and we'll write

:41:47.:41:49.

Come with me and we'll make that change.

:41:50.:41:52.

# And you'll be in a world of pure imagination...#.

:41:53.:42:00.

Come with me if you want to live.

:42:01.:42:02.

Come with me and together let's seize the day.

:42:03.:42:17.

MUSIC: Mr Blue Sky by ELO.

:42:18.:42:20.

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