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Accountants sidelined in ministerial reshuffle

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5th Sep 2012
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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?

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
06th Sep 2012 09:25

More background from ICAEW's Michael Izza

I hate to admit it, but ICAEW CEO Michael Izza has slightly contacts in Westminster than I do.

In a blog posted yesterday, he drew attention to a couple more chartered accountants in government.

ICAEW member Mark Harper has moved from the Cabinet Office to become immigration minister, while Nick Gibb remains an education minister. My apologies for missing out those two from my round-up.

Lord Sasson is another accountant-minister, but he has indicated that he wants to give up his appointment as commercial secretary in January to return to the private sector.

The reshuffle has meant big changes for ICAEW’s areas of interest, according to Izza. Norman Lamb is being switched away from his role as minister of the professions, and Mark Prisk will no longer be responsible for enterprise. However Exchequer Secretary to the Treasury David Gauke is still in post and will be responsible for tax.

At the Department for Business Innovation and Skills, Michael Fallon replaces Prisk (a campaigner against IR35 before the 2010 election) as minister for business and enterprise. "We hope he continues with the Small Business Economic Forum, which has been an effective tool for putting across the views of our members," said Izza.

Jo Swinson has been appointed minister for the accountancy profession and will have have audit reform and women board representation on her agenda. 

As the new joint parliamentary under secretary for BIS and the Department for Education  Matthew Hancock will be a key figure for the institute, Izza added, because of his focus on business and skills.

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By carnmores
07th Sep 2012 13:12

breach of school rule number 1 for DC

any breach of common sense ......

why on earth was Greening put into transport in the first place , as MP for Putney  she was obliged first and foremost to protect her constituents interests re 3rd runway

incidentally i wonder if she declared , or was even asked, her position before accepting Transport if she didnt perhaps she shouldnt be in the cabinet at all

international development mmm

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