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Viewing cable 07LONDON2534, U) BROWN'S GOVERNMENT IN PLACE

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Reference ID Created Released Classification Origin
07LONDON2534 2007-07-02 16:01 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy London
VZCZCXYZ0000
OO RUEHWEB

DE RUEHLO #2534/01 1831601
ZNR UUUUU ZZH
O 021601Z JUL 07
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4251
INFO RUEHNC/AMEMBASSY NICOSIA IMMEDIATE 0396
RHEHNSC/NSC WASHDC IMMEDIATE
UNCLAS LONDON 002534 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/UBI, INR/EU, EUR/SE 
 
E.O. 12958: N/A 
TAGS: PGOV UK
SUBJECT: (U)  BROWN'S GOVERNMENT IN PLACE 
 
REF: LONDON 2488 
 
(U) SENSITIVE BUT UNCLASSIFIED; NOT FOR INTERNET DISTRIBUTION. 
 
1.  (SBU)  SUMMARY:  Prime Minister Gordon Brown has moved 
fast to put his stamp on the UK Government and the results 
have been positive for his poll ratings and media coverage. 
The latest Guardian/ICM poll gives Labour the lead (39 
percent to 35 percent) over the Conservatives, Labour's first 
lead since March 2006.  Brown has appointed Her Majesty's 
Government in full, as well as made some significant 
alterations to the organization of several Cabinet 
ministries.  A  complete list of the new sub-cabinet 
appointments can be found on the website of the Prime 
Minister's Office (www.pm.gov.uk).  Notable structural 
changes: 
 
- The Deputy Prime Minister's Office, the Department of Trade 
and Industry, and the Department for Education and Skills 
"cease to exist"; 
 
- The Department for Education and Skills has been split 
between a new Department for Children, Schools and Families; 
and a new Department for Innovation, Universities and Skills 
(both headed by Cabinet Ministers); 
 
- A Department for Business, Enterprise and Regulatory 
Reform, headed by a Cabinet Minister, has been created along 
with a Business Council for Britain; 
 
- A junior minister has been appointed for each of nine 
regions of England (there were already Cabinet-level posts 
for Scotland, Wales and Northern Ireland); and 
 
- Two Liberal Democrat peers will work with (not in) the 
Government in an advisory capacity.  END SUMMARY. 
 
(U) THE BROWN BOUNCE 
-------------------- 
2.  (U) The Guardian/ICM poll conducted Wednesday evening and 
Thursday June 27-28 (i.e., just after Brown became Prime 
Minister) and published Saturday, June 30, gives Labour its 
first lead over the Conservatives since March 2006, with 39 
percent support (up seven points) to the Conservatives' 35 
percent (up one point).  The Liberal Democrats are down three 
points at 18 percent.  This is Labour's best showing since 
David Cameron became the Tory leader in 2005.  If replicated 
at a general election, this lead would actually increase 
Labour's absolute majority in the House of Commons. 
 
(U) DEPARTMENTAL REORGANIZATION 
------------------------------- 
3.  (SBU) DEPARTMENT FOR CHILDREN, SCHOOLS AND FAMILIES: 
Prime Minister Gordon Brown issued a Written  Ministerial 
Statement to the House of Commons on June 28 regarding the 
"Machinery of Government:  Departmental Organization."  The 
Statement explained the rationale for replacing the 
Department for Education and Skills with a Department for 
Children, Schools and Families and a Department for 
Innovation, Universities and Skills:   Children and families 
"are the bedrock of our society and "the Government's aim is 
to ensure that every child gets the best possible start in 
life."  The reorganized departments "seek to strengthen the 
Government's support for children, young people and families" 
in light of the "very different challenges that Britain will 
face in the years ahead," and "to ensure that Britain is 
equipped to seize the new opportunities of the global 
economy."  The Department for Children, Schools and Families 
"for the first time" brings "together key aspects of policy 
affecting children and young people" through age 19 and "will 
take forward the Government's strategy for ending child 
poverty."  It will work closely with other departments, 
promoting health, sport and young people's contributions to 
communities, preventing youth offending (including drug use), 
and addressing youth homelessness.  Given the emphasis Brown 
is placing in his initial public comments on improving UK 
education and building skills at an early age, it is not 
surprising that Brown picked his closest confidante and 
right-hand man, Ed Balls MP, to run this new department. 
 
4.  (U) DEPARTMENT FOR INNOVATION, UNIVERSITIES AND SKILLS 
(DIUS):  To compete successfully in the globalized economy, 
Brown has articulated a long-term vision of making Britain 
"one of the best places in the world for science, research 
and innovation, and to deliver the ambition of a world-class 
skills base."  The new DIUS will assume responsibility (from 
what was the Department of Trade and Industry) for science 
and innovation, working to expand "high-end graduate skills" 
and raise "the skills of the wider adult work force including 
those currently unskilled." 
 
5.  (U) DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY 
REFORM (DBERR):  This new department "will assume from the 
(abolished) Department of Trade and Industry, policy 
responsibility for productivity, business relations, energy, 
competition and consumer policy, corporate law, employment 
regulation, and working closely with the Department for 
Communities and Local Government making sustainable 
improvements in the economic performance of all English 
regions.  The Department will have joint responsibility with 
the Department for International Development on trade policy, 
and with the Foreign and Commonwealth Office on trade 
promotion."  "A key priority will be its cross-Government 
role in promoting better regulation across the business, 
public and voluntary sectors."  It will "provide support for 
the new Business Council" (see below). 
 
6.  (U) BUSINESS COUNCIL FOR BRITAIN:  This new Council 
comprising "senior business leaders from a range of sectors" 
will "assist the Government in putting in place the right 
strategy to promote the long-term health of the UK economy." 
The membership of the Council (also available at the Office 
of the Prime Minister's website) includes chief executive 
officers from 15 leading UK-based businesses, such as Virgin 
Group, Tesco Rolls Royce, British Petroleum, and Vodafone. 
It will be chaired by Mervyn Davies of the Standard Chartered 
Bank.  It will "provide clear, independent advice on the 
reform priorities to enable business to compete in the global 
economy."  It will meet twice a year and report to the 
Government and Parliament.  The chair will be "a senior 
business person."  The Prime Minister and Secretaries of 
State (i.e., Cabinet members) of the main economic 
departments will attend meetings at the invitation of the 
Council.  "Where issues are particularly important, the 
Council will have the power to establish Special Commissions 
to make recommendations for reform." 
 
(U) MINISTERS FOR REGIONS OF ENGLAND 
------------------------------------ 
7.  (SBU) Perhaps the most politically sensitive feature of 
Brown's reorganization is the appointment of 
sub-Cabinet-level ministers for England, one each for nine 
English regions (Northeast, Northwest, Yorkshire and 
Humberside, East Midlands, West Midlands, East of England, 
London, Southeast, and Southwest).  Brown wants to give a 
bigger voice to the regions, consistent with his vision of 
devolving governmental powers closer to the governed.  There 
have long been Cabinet-level posts for Scotland, Wales and 
Northern Ireland, but England, which has five times their 
combined population, has no equivalent to the devolved 
parliaments and Cabinet executives of the three "Celtic 
nations"; instead, England is ruled directly by the UK 
Parliament ("Westminster") and the UK Government (HMG, a.k.a. 
"Whitehall").  In recent years, there have been grumbling 
within England that it is being given short shrift, in terms 
of voice within the HMG, compared to the other nations within 
the UK.  When Tony Blair's Deputy Prime Minister John 
Prescott, however, proposed a pilot regional parliament for 
northeastern England several years ago, voters rejected it as 
a costly bureaucracy.  Brown has yet to flesh out how he 
intends to proceed beyond these nine ministers, but he knows 
the issue of recognizing English concerns about their lack of 
influence compared to their Welsh and Scottish countrymen, is 
a sensitive issue, especially for Brown, a Scot representing 
a Scottish parliamentary constituency yet running the entire 
UK. 
 
(U) "ALL THE TALENTS" 
--------------------- 
8.  (SBU) Brown had pledged to form "a Government of all the 
talents," and his appointments demonstrated an effort to 
reach out beyond traditional Labour figures: 
 
- LIB DEMS:  While former Liberal Democrat leader Lord 
Ashdown turned down an offer to be Northern Ireland secretary 
(and Lib Dem leader Sir Menzies Campbell forbade his 
party-members from joining the Government), two Liberal 
Democrat peers have agreed to serve as advisers:  Lord Lester 
of Herne Hill QC will "advise the Secretary of State for 
Justice on aspects of constitutional reform" and Baroness 
Neuberger - a rabbi - "will work with the Prime Minister, the 
Government and the voluntary sector to champion 
volunteering." 
 
- NEW PEERS:  All members of HMG must be members of one or 
the other of the Houses of Parliament.  Five highly-qualified 
individuals from outside politics will receive peerages in 
order to join Brown's Government (all in sub-Cabinet 
positions): 
 
     -- Shriti Vadera, a member of Brown's Council of 
Economic Advisers when he was Chancellor, will be a minister 
in the Department for International Development.  That 
Department is clearly being beefed up:  It now has three 
junior ministers instead of one.  Vadera has been a close 
advisor to Brown and her appointment to the Department for 
International Development reflects Brown's interest in 
putting international development -- especially in Africa and 
the Middle East -- at the center of his foreign policy. 
 
     -- Professor Sir Ara Darzi, a surgeon, will be a 
minister in the Department of Health, responsible for patient 
care. 
 
     -- Admiral Sir Alan West, a former Royal Navy chief, 
will be security minister in the Home Office. 
 
    -- Sir Digby Jones, former head of the Confederation of 
British Industry, will be trade minister reporting jointly to 
the Foreign and Commonwealth Office and the Department for 
Business, Enterprise and Regulatory Reform. 
 
    -- Sir Mark Malloch Brown, former Deputy Secretary 
General of the United Nations, will be Minister for Africa, 
Asia and the UN in the Foreign and Commonwealth Office. 
 
- OTHER APPOINTMENTS:  Joan Ryan MP becomes Special 
Representative to Cyprus and a member of the Privy Council. 
Former Metropolitan Police Commissioner Lord Stevens of 
Kirkwhelpington, who had been courted by the Conservatives, 
will be "the Prime Minister's Senior Adviser on International 
Security Issues." 
 
Comment:  Press Likes What It Sees Thus Far 
-------------------------------------------- 
9. (SBU) UK media response has on the whole been positive 
about Brown's Cabinet appointments and the governmental 
restructuring he has initiated.  Until this past weekend's 
aborted car bomb attacks drove comment about the new Cabinet 
off the front pages, initial editorial reaction, even from 
papers hostile to Labour, had been favorable, with most 
observers agreeing that Brown's cabinet was a mixture of new 
talent and "steady hands."  The appointment of Jacqui Smith 
as Home Secretary sparked some questions about her experience 
to take on the high profile job, but her performance in the 
days following the bomb attacks has earned her -- thus far -- 
uniform praise. 
 
10. (SBU)  Brown's initial positive press has grown only more 
favorable in the immediate aftermath of the car bomb attacks. 
 Even opposition leaders, such as Liberal Democratic 
Spokesperson Nick Clegg, have been praising Brown's initial 
response to the terrorist attacks:  "I detect a measured 
tone, which I think is a good thing and certainly a 
significant departure from the somewhat breathless way in 
which Tony Blair always used to rush to try to make, frankly, 
political points on the back of these events."  The Mirror 
summed up most press comment:  Brown has been "commendably 
cool in this crisis, admirably rising to the biggest 
challenge of his leadership." 
 
Visit London's Classified Website: 
http://www.state.sgov.gov/p/eur/london/index. cfm 
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