The Edge

Richard Northedge takes on corporate finance

We shouldn’t be surprised that Blair and Brown disagreed

Should we be shocked by the revelations in Tony Blair’s book that he differed from his chancellor on both style and policy? It is a reminder that even a one-party government is a coalition. And how many boardrooms are a similar compromise of diverse objectives and methods?

That the former prime minister was forced to cancel his London book signing and launch demonstrates the opposition to his views from a faction of the population, but the book itself demonstrates the opposition from within his own party, his own government, and his own cabinet.

But what should we honestly expect from any administration? Everyone in total agreement? No need for debate? A read of Blair’s book spells out that government was a coalition of New Labour and Old Labour, of modernists and traditionalists, Left and Right, progressives and those seeking simply to improve the status quo.

The LibDem-Tory coalition is a clear unison of two parties who in the election that brought them together had campaigned on very different policies. Why should we believe that Major’s, Thatcher’s or any previous government was more united than Blair’s? Cabinet responsibility means that after the full and frank discussion of views, the conclusion is unanimous, but policies would be far less developed without that debate.

And the same applies to boardrooms. Sometimes the differences become evident but normally they are disguised from shareholders for the greater benefit of the country. Within the board there may be directors keen on divestment when others want to consolidate the company, members wanting to raise the dividend when others want to invest, some keen on acquisitions on which others have doubts, some directors wanting to build the new plant at home when others want it abroad.

Occasionally boardroom differences become public – more than occasionally at Marks & Spencer – but such conflicting views are usually confined to the minutes and never made public. Politics is played out more publicly so we now know the extend to which Blair and Gordon Brown disagreed both on policy but the direction, speed and method of progress.

The Blair book – a rattling good read for anyone involved in serious decision making – is a useful reminder that coalition of differing views happens all the time and in all places from parish council committees to FTSE boardrooms. It is not simply something that happens once every 70 years among political parties.



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