‘I shall also be introducing proposals which will allow pensioners and those planning for their retirement to invest in London listed REITs as an alternative to annuities. This will provide the REITs market with liquidity. Furthermore, I am advised by leading actuaries that the yield advantage of REITs over gilts and their inflation hedging characteristics will reduce the deficits of many pension funds.’ The Chancellor let those around him take in what he had said about Government REITs. He now had to move on to a particularly difficult area.
‘Our economy,’ the Chancellor continued, ‘our financial service industries, the City of London and our currency were badly bruised by the recent banking crisis and will be further injured by the nuclear disaster. To rebuild them we need a period of currency and interest rate stability. It is well known that the five criteria for our entry to the Euro have been long debated; this debate has been against the background of a strong currency and a positive economic outlook for the UK. Some eminent economists have argued that Stratford has materially changed the risk-reward relationship. They have advised me that the risks to our well-being, and to our economy, of being in the Euro are now significantly less than if we were to go it alone and keep Sterling.’
‘Wait for it…’ thought Rafi.
‘I have considered their arguments and have concluded that Sterling is part of our heritage, our identity, and our economic independence, and it should only be given up in extremis. So, in how desperate a position do we find ourselves? We have found a workable solution to meet all the costs associated with Stratford and this will inject billions of pounds into our economy. And we will make a start at reducing the scale of unfunded public sector pensions, which will improve the Government’s finances. The introduction of not-for-profit corporations will make our public sector services more efficient and will reduce the need for future tax increases.’
The Chancellor stopped and looked around the Chamber. People were on the edge of their seats. Back in the Ops Room Rafi suddenly wasn’t sure what to expect.
‘On the other hand, I have had to consider how much damage speculators might cause if they try to decimate our currency. Therefore, whether or not we join the Euro rests on whether or not we can hold our currency stable.’
The tension was palpable.
‘So, are we, or are we not going into the Euro?’ wondered Rafi.
‘Early yesterday, senior representatives of the Bank of England flew out to meet with the largest international Central Banks to ask for their help in supporting our currency and to determine the level at which support would be forthcoming. Without this support we would find ourselves in exceptionally difficult times and joining the Euro would become a necessity. The results of these deliberations should be available to me now.’
There was movement behind the Chancellor. He turned round and was passed a large white envelope by the PM. He opened the envelope, pulled out two sheets of paper and read them. His face gave nothing away, but before he spoke, he pulled out a handkerchief and mopped his brow.
‘As of ten minutes ago, the Federal Reserve of America, the European Central Bank, the Chinese, Japanese, Indian, Saudi, UAE, and four other Central Banks have all agreed to support and be aggressive purchasers of Sterling, until such time as the UK economy has recovered from the recent catastrophe.’
Sighs of relief were heard around the Chamber.
‘The support level has been set at a figure four percent below Sterling’s trade weighted exchange rate as at close of business on Thursday evening.’
The Treasury had taken Aidan’s brief and added their own magic – Sterling was to remain independent! They had done a superb job. Rafi looked at the ceiling, let out a small whistle and smiled. Strike three! Sterling was to be protected. The third and final nail had been hammered home. The terrorists’ positions in the derivatives markets had become untenable and they would be sitting on truly massive losses when the market reopened in the morning!
A weary, but relieved-looking Chancellor surveyed the packed House of Commons. ‘Details supporting the initiatives I have set out this afternoon to the House will be published as soon as is practical – the printing presses are running as I speak. The events of the past few days have required much soul-searching and reprioritising.’ He paused and looked across at the shadow chancellor. I commend these proposals to the House.’ He sat down to growing applause from the House, which was taking its time to assimilate all he had put before them.
The Prime Minister rose to take his place at the dispatch box. ‘If the Speaker will permit me, I should like to tidy up a few loose ends. The reshuffle I spoke of earlier will be far-reaching. I have scheduled meetings with the leaders of the main opposition parties for later this evening. I will be speaking with many of you over the next twenty-four hours. I have received assurances from the party leaders sitting opposite me that they will place the interests of the country first.’
The PM paused for dramatic effect. ‘Where spin rules, reason is wanting, honesty is wanting, public service is wanting and the role of this House is overshadowed. Spin and self-aggrandisement are unacceptable. We owe it to the people of this country to consign spin and subterfuge to the past.’ The PM paused and looked across at the opposition benches.
‘It can be expected that members of competing parties will find themselves working together running the Ministries of State. Undoubtedly, there will be differences of opinion over some issues, but this should not stop efficient Cabinet Government. This House, its committees and the Upper Chamber will have the important role of scrutinising, improving and approving the proposals put before them. The Government has many difficult decisions to make in order to steer our country forward in an appropriate direction. What I am proposing is a move away from presidential-style politics to one where the Government is, as it was decades ago, fully accountable to Parliament. Our collective aim must be to get things back on to an even keel, to rejuvenate our economy and to rebuild our damaged international reputation. I commend these proposals to the House.’
With that the PM sat down to applause from all corners of the Chamber. He looked exhausted.
The Speaker called for the Leader of Her Majesty’s Opposition. Silence returned to the Chamber as he stood up and raised aloft a pile of papers.
‘I thought I’d been well-briefed by my team when I came to the House this afternoon.’ Slowly and theatrically he lowered the pile of papers, turned and placed them where he had been sitting. ‘I won’t need them.’ He looked across at the Government benches. ‘If my sources are correct, the Prime Minister has personally been working non-stop for the past three days as part of the effort to prevent the terrorists’ attacks, for which I thank the Honourable Member. I shall be meeting with him later today and again tomorrow. Following these meetings, I shall report back to this House any concerns I might have. In the meantime there is much to digest and, in the circumstances, it would be churlish of me to find fault for the very sake of finding fault. The two Honourable Members opposite me have, with great openness, sought to provide leadership and the wherewithal to enable our country to extricate itself from the horrendous tragedy of Stratford.’ He cast his eyes upwards towards the television camera.
‘I should like to pay my respects to all those who have lost and those who will lose their lives as a result of this nuclear catastrophe, and to thank all those in the emergency services, the armed forces and the intelligence services who have helped in our hour of need. I’d like to express my sympathy to all those who lost their homes or businesses in the “Isle of Stratford”, and to thank all those people and companies who helped selflessly.’
With that, the leader of the official opposition party sat down. The eyes in the House, as if following a tennis ball at Wimbledon, moved along the front row and focused on the leader of the third political party. It was his turn. He had a reputation for holding strong environmental views and a nuclear disaster was something he had warned against over many years. Would he use the events of last Friday to put the knife in? So far, the Home Secretary, a couple of lower ranking ministers and a number of quango employees involved in the nuclear industry had resigned. Would he try to make this a resigning matter for the Prime Minister as well? He stood up and looked around the silent Chamber.