While some commentators characterise David Cameron’s Cabinet reshuffle as a kick in the teeth for his Lib Dem coalition partners, accountant-ministers fared little better.
The biggest victim was transport secretary Justine Greening (pictured), who was switched to the international development portfolio as a result of her refusal to countenance any discussion of a third runway at Heathrow airport. As the MP for Putney, a vulnerable constituency right underneath the airport’s flightpath she had little choice.
A former finance manager with Centrica before she entered Parliament, Greening was initially appointed
Greening trained with PwC. Before she was moved to transport (the position she had shadowed in opposition), she was appointed economic secretary to the Treasury in May 2010. At that point, PwC could claim to have two former employees holding ministerial positions at the Treasury.
That unique influence is now gone, as Conservative MP for Fareham and former PwC accountant Mark Hoban was from his role as Treasury financial secretary to become employment minister at the Department of Work and Pensions.
According to New Model Adviser, Hoban was a controversial figure for his robust stance on several issues, including telling Arch Cru investors who were dissatisfied with the FSA’s £54m compensation package to challenge the IFAs who advised them to invest in the funds.
He is also credited with overseeing the restriction of annual pension contributions to £50,000 and lowering the lifetime allowance to £1.5m.
Before the 2010 election, Hoban commented to AccountingWEB, “My training as an accountant and my work at PwC has made a huge contribution to my effectiveness as an MP and member of the Conservatives’ Treasury team.
“I can look at tax policy from a business perspective and understand the challenges businesses would face in implementation. I can also see how private sector techniques could be applied to cutting wasteful public spending without damaging front line public services.”
Those perspectives will be in shorter supply following the reshuffle.
Cameron’s reshuffle has been characterised as a move to the right, but could just as well be seen as a purge of accountants and PwC. Is this pure coincidence, or could it be a sign that the prime minister is abandoning the sort of evidence-backed policy-making his accountant-ministers might have promoted for a more ideological approach?