CBI

Life just got worse for the little guy. Gordon has always believed that "business" = "the major corporates and City institutions". His understanding of the impact of his policies, and therefore the policies themselves, have been conditioned by the advice he has been given by the bosses of these businesses. Never ones to look a gift-horse in the mouth, these leaders have not been averse to steering their advice in the direction that suits their businesses. Hence the Government's support for failed and partial policies that favour the big incumbents, like the EU-ETS.

This biased and blinkered attitude to business in the nation of shopkeepers (by which Smith and Napoleon did not mean Tesco and Sainsbury) has now been institutionalized, with the creation of the Business Council for Britain, and its proposed close relationship to the rump of the DTI, now known as the Department for Business, Enterprise and Regulatory Reform. Add to that the appointment of another ex-CBI, corporatist, third-way poodle - Sir Digby Jones - as Minister of State for Trade and Investment, and you have a government that is going to be run on the advice of and in the interests of big business, whatever Sir Digby might claim.

The BCB, populated exclusively and deliberately by corporate leaders, will have great influence over commercial and regulatory policy direction, and preferential access to No.10. Expect to see policies, mechanisms, incentives, and regulations change over time to further favour big businesses - for example, through imposition of costs that can be spread more effectively by larger corporations, but loosening of constraints that prevent them abusing their market power.

The balance of power and responsibility is revealing. DBERR/DTI's home-page tells us that "DBERR will provide support to the new Business Council for Britain. The Council, made up of senior business leaders, will assist the Government in putting in place the right strategy to promote the long-term health of the UK economy." DBERR will support the Council, not the other way round. And the Council will assist the Government, not the DBERR. What this means is that Gordon ("the Government") will run the economy on the advice of his City pals, and John Denham and the DBERR will be their gophers.

We knew that corporate capture of government would be escalated by Brown's arrival at No.10, but even to pessimists like myself, the speed of the takeover is breathtaking and depressing. The corruption and sell-out of Britain continues.

Howard Davies is reported in Le Figaro as saying:

"On Europe, we do not yet know if Sarkozy is a friend or an enemy.... Selling the Brussels result will be arduous for Brown… It is crucial for him that Sarkozy continues to defend the idea that the new treaty does not mean much. The slightest suspicion that this treaty is the first step on a new federal adventure will be blown up out of all proportion. Any triumphalism about the withdrawal of the reference to competition will make Brown’s life very difficult. For the first time since the rejection by de Gaulle of our request for accession to the common market, a British government finds itself in the uncomfortable position of being liable to a French president. One false move, one word too many from the Elysée, and Prime Minister Brown will have big problems. Brown, who has waited so long and impatiently for his moment, is particularly frustrated at not being in charge on the European agenda. That means that he is condemned, whether he likes it or not, to keeping close relations with Sarkozy. Brown cannot let him leave his sight." (Hat-tip to OpenEurope for spotting this and translating it.)

Howard Davies is Director of the London School of Economics and Political Science (LSE), before which he was Chairman of the Financial Services Authority (FSA), before which he was Deputy Governor of the Bank of England, before which he was Director-General of the Confederation of British Industries (CBI). All roles in which he should have eschewed political partisanship. And all organizations (with the possible exception of the Bank) of which there is a strong whiff of Third-Way politicization. Now look at that statement again.

The BBC ran a half-hour promotion on Thursday night for government-funded investment in businesses or technologies that government judged to be promising. In other words, a promotion for picking losers (the policy, not the site, sadly). I'm sure the institutionally-biased BBC didn't think that was what they were doing, but that's what it was.

That advert was masquerading as one of their business programmes - Radio 4's In Business - which ought to be the last place that one would find such a concept promoted. But this isn't real business, this is the BBC's idea of business. Perhaps it is unreasonable to expect a commercial perspective from a state-funded organization, and from a business reporter (Peter Day) whose background is an English degree, four years with a Glasgow newspaper, and then a lifetime of service with the BBC. This guy has barely been close to a commercial organization or a set of accounts, let alone tried to run a business in a world of government-funded competition.

You can download an MP3 of the programme here (careful, it's a 12MB file). Those of a rational disposition may want to ensure that they have a punchbag (a BBC employee would be ideal) to hand before starting playback, to avoid stress-related injury due to excessive internalization of anger.

There was nothing wrong with looking at the issue of picking losers. But even the most Trotskyite of BBC producers [Tautology - Ed] might have to admit that there are two sides to this story. There was an almost complete failure to examine the arguments against, and plenty of commentary that said to the listener, in effect, "of course government should be picking losers". Let's look in detail at how the programme went about this issue.

According to their website, the CBI's mission is:

"to help create and sustain the conditions in which businesses in the United Kingdom can compete and prosper for the benefit of all"

and their policy is:

"decided by our members – senior professionals from all sectors and sizes of business are directly involved in the policy-making process"

In the experience of this author, the CBI are now complicit in the government's ever-expanding intervention in the economy, and listen only to their bigger members. A recent exchange of correspondence seemed to illustrate this attitude. It is repeated below - decide for yourselves.