Read our policy analysis on the Circular Economy and Waste Management written by Political consultant Natasha Pinnington.
To discuss the policy area further, please contact Natasha on natasha@gkstrategy.com
Following the publication of the highly anticipated Adult Social Care White Paper, Phil Hope, former Care Minister, assesses the plans announced and identifies what more needs to be done to improve the sector.
Read Phil’s thoughts in Deeds not Words.
For more information, please contact GK’s Head of Health, Joe Cormack on joecormack@gkstrategy.com
On 24th November 2021, the new German coalition finally revealed the new Government coalition deal, including the announcement that Olaf Scholz, leader of the Social Democrats (SPD) will become the next German Chancellor. The coalition has revealed a nearly 170-pages long programme, which describes the objectives for both Germany and the EU.
Looking at the coalition agreement, formed by the SDP, the Greens and the conservative-liberal Free Democrats (FDP), some might say that their objectives are decidedly pro-European. First and foremost, the new German Government is hoping that the current Conference on the Future of Europe will lead to developments for a federal European state., moving towards a Community method that would give more weight to the European institutions. The coalition deal contains proposals to improve the democracy levels within the EU by introducing a common European electoral law, including transnational lists of candidates. The push is also for the EU to better implement its rule of law, especially to countries such as Poland and Hungary.
On foreign policy, the coalition is planning to push for a stronger European External Action Service. This includes the nomination of a real ‘EU foreign minister’, which would eliminate the requirement of unanimity for all foreign policy decision-making. Suggestions include the movement to qualified majority voting on foreign policy, but with a mechanism that would allow smaller countries to participate appropriately. The programme also announces for increased cooperation among the national armies of member states that are willing to integrate. These propositions have been made to ease basic matters within foreign policy decision-making and potentially increase the military capabilities of the EU bloc.
The new German coalition seems open to a reform of EU fiscal policies, and a subsequent form of fiscal solidarity, which might be perceived as positive by certain southern countries, such as Italy or Spain. Other plans include the possibility to back a ‘European reinsurance for national deposit guarantee schemes’, which is a mention to furthering the Banking Union. However, the parties have differences on the Economic and Monetary Union, and a strict reading of the Growth Pact would limit the possibilities to effectively restructure the Eurozone. Furthermore, the parties do not share the same vision for the constitutional limit on government borrowing, which has been provisionally eliminated in the EU due to COVID-19. This implies that FDP sees the Next Generation EU recovery package as to be provisional, while the other parties believe in a package that can be extended in the future. Another issue for the coalition and for the EU is the lack of money within German finances for green investments, which could cause conflict with the Greens.
With respect to Brexit and the nearly one-year old UK-EU Trade and Cooperation Agreement (TCA), the German coalition does not seem to move from previous stances taken by Germany. They will push for a common European policy towards the UK, and it insists on the need for a full compliance of the agreements signed by both sides, with a particular focus on the Northern Ireland Protocol. The coalition also highlights that any non-compliance from the UK must lead to the application of all agreed measures and countermeasures.
This coalition will have to overcome great challenges. The most important one will be to have strong enough legitimacy to ensure that Germany is continued to be viewed as on of the EU leaders. Germany has created its leadership within the EU following certain values, including federalism and the rule of law as an anchor for the state apparatus. The confirmation or rejection of these values will have enormous impacts on Germany’s relationship with the EU. The second challenge is seen by some by the introduction of the new chancellor figure of Scholz. Angela Merkel was seen as a form of consistency and a great diplomat in the formation and maintenance of relationships, for example between Germany and France or between the EU and more rebellious member states such as Poland and Hungary. The question is whether now the coalition will be good enough to form a united front and for Scholz to maintain such relationships on good levels. This is particularly the case with policy objectives and the current definition of Ministries and Ministers. For example, for foreign policy it looks like the Greens are claiming the seat, while defence will go to the FDP. This might bring to some clashes where the aspects of foreign and defence policy overlap. It will be Scholz’s role to ensure unity within the parties. Conflict might cause the Government to result disunited, which will have an impact both internally and externally, too, especially with the fourth wave of the pandemic arriving on German shores. Lastly, challenges can also be translated to Brexit and the relationship that the EU has with the United Kingdom. Germany calls for the strict application of the agreed treaties to make the most of the political opportunities that lie ahead. The three parties will have to go beyond decisions based on the ‘lowest common denominator’ and instead pursue a strong front to the challenges that both Germany and the EU have ahead.
If you would like to discuss the German political landscape, or require investment advisory on an international deal please contact lavinia@gkstrategy.com
Read our new expert view on the Starmer Shadow Cabinet reshuffle
For more information, or to discuss the piece, please contact jack@gkstrategy.com
The Chancellor of the Exchequer, Rishi Sunak, delivered his Autumn Budget and Spending Review to Parliament on 27 October. Set against a backdrop of labour shortages, a supply crisis, soaring energy bills and the spectre of inflation, the Chancellor struck an upbeat tone as he heralded an ‘economy for a new age of optimism’.
For the education sector, the Chancellor revealed a Budget and Spending Review stuffed with apparent good news – with headline announcements including £4.bn extra schools funding and £1.8bn for catch-up. However, following a closer examination of the detail, is the Budget and Spending Review all quite as good as it seems?
Core Schools Budget
Treasury documents confirm that the spending review allocates an additional £4.7bn for the core schools budget in England. This announcement will provide £2.6bn to increase school places for SEND pupils, funding 300,000 more places alongside £1.4bn to deliver six million tutoring courses for disadvantaged pupils, and train 500,000 teachers over three academic years.
This is above the spending commitments made in 2019, with the Treasury stating that this would be “broadly equivalent to a cash increase of over £1,500 per pupil by 2024-25 compared to 2019-20”.
However, with the Chancellor confirming the end of the public sector pay freeze, Treasury documents reveal that the extra funding will go towards “supporting delivery” of its pledge to raise new teacher starting salaries to £30,000, rather than directly to pupils. The small print of the document also outlines that the £4.7bn funding increase “includes public sector compensation for employer costs of Health and Social Care Levy”.
Schools Catch-up
The Spending Review confirms an additional £1.8bn for education recovery – on top of the £3.1bn already announced. The new commitment includes a £1bn “recovery premium” for the next two academic years, with primary schools benefiting from an additional £145 per eligible pupil, while the amount for secondary schools will “nearly double”.
While this additional funding is no doubt welcome, it remains a meagre figure compared to former education recovery tsar Sir Kevan Collins proposal for a £15bn long-term programme. Indeed, the UK continues to lag behind comparatively, with less than £500 of funding available for each child in the UK, compared with £1,800 in the US and £2,100 in the Netherlands.
Furthermore, when the government released its initial catch-up package in June 2021, included was a commitment to review time spent in school, amid calls to aid recovery by extending the school day. Ministers said that findings would be set out “later in the year to inform the spending review”. So far, no findings have been released, and there was no mention of any such plans in the Chancellor’s speech or Treasury documents.
Departmental funding
Analysis by the Institute for Fiscal Studies has shown that the increases in education spending in England is lower than the increases seen in other departments. While the Department for Education’s budget has swelled by 2.2.% in real terms, the average increase across government is higher at 3.3%, with the Department for Health and Social Care receiving a 4% increase.
A new age of optimism?
To engage with the government’s Autumn Budget and Sending Review effectively, organisations will need to understand the wider direction of education policy. GK Strategy are specialists in education and are experts at supporting organisations who are operating in highly regulated sectors and helping them to navigate complex markets and build relationships with key decision makers.
With the Government outlining its long-term spending plans, there are plenty of opportunities for education providers to benefit.
For more information or if you would like to speak to the GK team, please contact Jack Sansum on jack@gkstrategy.com or Nicole Wyatt on nicole@gkstrategy.com.
GK are delighted to publish our thinking on all things environmental from decarbonisation of buildings, energy efficiency, wind power to the future of transport. Read your copy of Green Insights.
For more information or to set up a meeting, please contact Milo Boyd & Natasha Pinnington, GK Advisers on Environment & Climate on milo@gkstrategy.com and natasha@gkstrategy.com