The new UK government says the environment and better business regulation are top priorities
Normally the UK’s House of Commons resembles a modern-day bear pit, with members of parliament baying at each other across the chamber. The red lines on the carpet in front of the front benches are not there for decoration. They are placed two sword-lengths apart to prevent previous generations of MPs from physically, rather than just verbally, attacking each other.
The hung parliament resulting from the May 6 election meant that no single party was able to govern on its own. And so the normal run of British politics has been overtaken by the need for collaboration, with a new government formed between the Conservatives and Liberal Democrats. For a number of days it was unclear what this would mean in practice.
Some clarity emerged when the new government issued the text of “agreements reached between the Conservatives and Liberal Democrats on a range of issues”, which are designed to form the basis of the new administration’s programme.
What does this document, and the coalition it represents, say about issues of sustainability and of responsible business practice? The initial runes are extremely interesting, and bode well.
Green boost
On environmental policy, the presence in government of the Lib Dems, always the greenest of the main parties, seems to have bolstered the message of new prime minister, David Cameron: “Vote blue, get green.”
The new coalition commits itself to “implement a full programme of measures to fulfil our joint ambitions for a low carbon and eco-friendly economy”. Some of the more eye-catching measures include mandating a national recharging network for electric and plug-in hybrid vehicles, the establishment of a high-speed rail network, the creation of a green investment bank and measures to encourage marine energy.
In the area of responsible business practice too, the new coalition sets out a pretty clear stall. For a start, the new business secretary is none other than Vince Cable, probably the only politician to have foreseen the financial collapse of the past few years.
Cable’s analysis of the governance and regulatory failings that enabled the banking sector to get so out-of-control now seems to be at the centre of government policy. The new government is establishing an independent commission to investigate whether and how to separate retail and investment banking operations. Their conflation is held by many to have exacerbated the banking crisis. (See also this month’s briefing from p11.)
Proposals will also be brought forward for the Bank of England to take a role (as it had in the past) in banking regulation. In a further attempt to reduce risk-taking in the financial sector, proposals will be made “for robust action to tackle unacceptable bonuses”.
Cable’s appointment has been warmly welcomed by campaigners. In the view of the World Development Movement’s Deborah Doane, these developments “signal a real commitment to cleaning up the mess that the financial crisis has left Britain and the world in”.
Whether these hopes and the other commitments of this new administration will be fulfilled remains to be seen. However, at the very least, to have a new government putting these issues at the centre of its approach is a step in the right direction.