Pedestrians the Houses of Parliament in Westminster in London on Friday after the Conservative Party lost control of Westminster Council in local elections. EPA
Pedestrians the Houses of Parliament in Westminster in London on Friday after the Conservative Party lost control of Westminster Council in local elections. EPA
Pedestrians the Houses of Parliament in Westminster in London on Friday after the Conservative Party lost control of Westminster Council in local elections. EPA
Pedestrians the Houses of Parliament in Westminster in London on Friday after the Conservative Party lost control of Westminster Council in local elections. EPA

Voters on the streets of newly-red Westminster have cost of living on their minds


Laura O'Callaghan
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The Conservative Party’s historic loss of Westminster Council, long regarded as a “crown jewel” among local authorities, was palpable among voters on the streets of central London on Friday.

Concerns about rising rents and pollution as well as the "partygate" scandal and the Tories' handling of the cost-of-living crisis were just some of the reasons people gave for their growing disapproval of Boris Johnson’s party.

But others said they still backed the prime minster after Labour clinched the council from the Tories, who had held it since its inception in 1964.

The result was a major blow to Mr Johnson’s standing in Britain, and also in what is known as “the Westminster bubble”. While the partygate scandal has been damaging to the Tories’ image across Britain, Westminster Council was hit by its own wave of uproar over a £6 million ($7.39 million) attraction at Marble Arch.

A giant grass-covered structure erected next to the famous monument on the edge of Hyde Park was initially supposed to attract visitors to the West End. But a string of scathing reviews after its unveiling labelled it as “ugly” and “London’s worst attraction”.

The scaffolding-and-turf peak was eventually torn down and removed but the £6 million price tag for the taxpayer lingered.. The council lost its reputation for sound financial management.

The authority covers a vast area of the capital extending from the River Thames up to St John’s Wood, taking in Knightsbridge, Mayfair, Soho, Covent Garden, Paddington and Marylebone and, of course, Westminster.

'London is changing'

People out and about on the streets of Westminster on Friday expressed dismay about the state of British politics.

Thomas Blackshaw, who has lived in the Westminster Council area for more than 20 years, said a Labour victory was “concerning” for him because he considers Labour leader Keir Starmer a socialist. “His task is simply to get the Conservatives out and then I think he will disappear,” he told The National.

Thomas Blackshaw said the Tories lost control of Westminster Council partly because they appear out of touch with London voters. Photo: The National
Thomas Blackshaw said the Tories lost control of Westminster Council partly because they appear out of touch with London voters. Photo: The National

Mr Blackshaw said the Tories had failed to appeal to voters in London because they appear to be out of touch with the issues faced by households.

“It’s to do with the population of London. It’s changing so fast and it’s multicultural,” he said.

“I think it’s entirely down to the cost of living. You don’t have to go far from here to get to south London, where there are rundown council estates and the people don’t have enough money. They can’t afford shopping or to pay their bills."

He said that many Conservative MPs who hold London seats look after “affluent, well-off and thriving” constituencies and are somewhat aloof to the problems blighting other areas of the city.

'Tories can't get votes with Johnson at helm'

Another man, who gave his name as Dan, said he had declined to vote in the local elections “because there’s nobody I could vote for and there’s no party that properly represents me”.

He accused the Conservatives and Labour of “smearing each other” instead of channelling time and resources into helping the British electorate.

He also said Labour’s victory in Westminster could not be taken as a sign that Tory voters across the country were flocking to support Labour. “The rest of the country don’t care about it. It’s the Westminster bubble and it does not resonate with people,” he told The National.

Mr Johnson’s days in Number 10 are numbered, Dan said. “I think the party will oust him. They want to get rid of him because they can’t get the votes.”

Voters in London were angered after Westminster Council spent £6m on the Marble Arch Mound in central London. Getty.
Voters in London were angered after Westminster Council spent £6m on the Marble Arch Mound in central London. Getty.

The prime minister on Friday admitted the election results were "tough" for his party.

One voter who declined to give his name said he was happy about Labour’s win in Westminster but admitted his confidence in Mr Starmer's leadership had hit rock bottom. While he viewed the former director of public prosecutions as a favourable alternative to his predecessor Jeremy Corbyn, he said he felt “very concerned” about the future of the Labour Party with Mr Starmer at the helm.

“I don’t think Labour can win [a general election] with Keir. He’s too polite. He’s a barrister and not able to use the language Boris uses. He has won a lot [of seats] but still has a long way to go.

“Boris is a liar and a cheat and the sooner we get rid of him the better. He promises and does not deliver.”

'PM was thrown in the deep end'

But Sandi Corbett, a lifelong Conservative voter, said she was disappointed at seeing her local authority turn red for the first time, and expressed support for the prime minister despite his poor judgments, which led to the partygate saga.

Sandi Corbett said she was disappointed that Labour had taken control of Westminster Council, her local authority, in the elections. Photo: The National.
Sandi Corbett said she was disappointed that Labour had taken control of Westminster Council, her local authority, in the elections. Photo: The National.

She believes the scandal kept many traditional Tory supporters away from the ballot box on Thursday, and now some may regret their decision. “I think a lot of people are fed up with partygate and they didn’t vote for anyone and they will regret it now. That’s my feeling,” she said.

Ms Corbett said while she was initially upset when details about the lockdown-breaking gatherings in Number 10 were leaked, she has since got over it and believes Mr Johnson is the right person to lead his party and the country.

“They had a drink and they shouldn’t have done it,” she said.

“I think [the prime minister] does a lot of good things to be honest. He was thrown in the deep end with Brexit and Ukraine and I think he has handled it very well, and also the Covid-19 pandemic. I think it’s been very, very difficult for him. I think he’s done as good a job as he could do.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Moral education needed in a 'rapidly changing world'

Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.

Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.

"Moral education touches on every aspect and subject that children engage in.

"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.

"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."

Updated: May 06, 2022, 4:19 PM