David Davis, the senior Conservative MP and former shadow home secretary, has launched a scathing attack on what he calls “crony capitalism” of the current government, accusing it of being “far too close” to big business and “shamelessly courting” Rupert Murdoch.
Davis, who narrowly lost the leadership to David Cameron in 2005, also criticises the government’s “terrible pickle” over the £1 million bonus given to RBS’s Stephen Hester, saying: “Apparently the government…feared Hester would quit if it vetoed the bonus. So what?”
In an exclusive article for Prospect’s March issue, Davis writes that “when it comes to crony capitalism, government is often not the solution, but part of the problem…If it is not addressed, Britain’s crony capitalism will inflict huge damage to our interests, economy, industry and society. The gap between achievement and reward will widen. Social mobility will continue to fall. It will also continue to stifle growing businesses, destabilise our banking sector, and poison our politics.”