Labour begins charm offensive to win over MPs sceptical of digital ID plans
Ministers have launched a charm offensive to win over sceptical Labour MPs to back the digital ID scheme, asking MPs to offer ideas about how it could improve public services,The outreach is part of a broader loyalty and delivery drive to soothe tensions after a fractious few months for the government,Several cabinet ministers have said the government needs to make the case for a wider digital identity system,The aim is for the ID cards to be rolled out before the next election and initially used to prove people’s right to work, before being expanded to store health and benefits data to streamline access to public services and tackle fraud,Ministers have told MPs there is a firm commitment to build the digital ID within the public sector and not contract it out to private companies.
MPs who met ministers and officials on Tuesday were told it would be a federated system – akin to one built for the NHS – which means that data is distributed across multiple independent but connecting systems.It would make it harder in theory to hack the entire dataset because there is no single point of failure, though it would not be immune.About 50 MPs attended the session with the technology minister Ian Murray and Cabinet office minister Josh Simons.“The main thing everyone in the room wanted to know was the cost,” one MP said.“And no one can even give us a ballpark.
”Some close to the process said ministers were aware of the political risk of the scheme, estimating that about 50 MPs could rebel if a vote were held now, and that the number could double once details are ironed out.“They’re being cautious and want to get it right this time,” an MP said.MPs who had read the original Labour Together proposal for a BritCard – which has formed the basis of the government’s policy – said the cost calculations in that were “laughably low” at £150m.But several said they were pleased to see the degree of MP engagement.“Look, everyone felt this was sprung on us,” one MP said.
“And it did feel like this would be welfare all over again but in fact they are engaging us quite a lot.And MPs do have a lot of expertise from surgeries about systemic problems whether that’s immigration or benefits.So I am cautiously optimistic.”Key backers in the room for the scheme included a number of the “red wall” MPs..
Emily Darlington, the Milton Keynes Central MP, is also said to have been doing significant outreach to MPs.Sign up to First EditionOur morning email breaks down the key stories of the day, telling you what’s happening and why it mattersafter newsletter promotion“It’s a smart move to make Ian Murray the face of this,” said one MP.“Everyone likes him and was cross about him being demoted as Scottish secretary.”But several raised concerns in the meeting about the possibility of data leaks and hacks, to be told that data was likely safer in the hands of the state.One MP retorted: “My data been hacked in the DWP several times.
”One MP opposed to the changes said: “The obvious idea is to paint those against it as luddites.”Ministers said they hoped the digital ID scheme would allow quicker identification of gang leaders or bosses employing illegal workers, citing nail bars and car washes as examples.But MPs in the room suggested it would be most helpful if used for the benefits system – such as preventing the Department for Work and Pensions from making overpayments which cause a huge amount of stress for claimants who have the money taken back.Murray is said to have ruled out digital IDs being used to hold data from the NHS and said police would not be allowed to demand to see them.A government source said the intention was for MPs to offer ideas for the system and to inform the consultation, the story that the government could tell and how to “bust the myths” about digital ID, which is facing intense opposition from across the political spectrum.
The charm offensive is understood to include two or three themed round tables a week – covering digital ID and also special education needs and disabilities reform – another flashpoint in the coming year.“It’s about rebuilding trust and making sure people feel heard,” one said.“They obviously don’t want another welfare rebellion style surprise.”No 10’s new political director, Amy Richards, has also been tasked with reaching out to groups of MPs and those outside Westminster to help shape the consultation, including to those who might instinctively oppose the scheme.They include Black, Asian and minority ethnic MPs, those with rural constituencies, select committee chairs, Scottish MPs and groups campaigning on digital inclusion and public service reform.
FTSE 100 heading for worst day since April as US regional bank worries rock markets – business live
Global stock markets fell sharply and gold hit a record high after two US regional banks said they had been left exposed to millions of dollars of bad loans and alleged fraud.Signs of credit stress rattled markets across Europe and Asia. In London the FTSE 100 fell 1.5%, Germany’s Dax fell 2%, the Ibex in Spain was off 0.8% and France’s Cac 40 dropped 1
Global markets fall and gold hits record high amid jitters over US banks
Global stock markets fell sharply and gold hit a record high after two US regional banks said they had been exposed to millions of dollars of bad loans and alleged fraud.Signs of credit stress rattled markets across Europe and Asia. In London the FTSE 100 fell 1.5%, Germany’s Dax fell 2%, the Ibex in Spain was off 0.8% and France’s Cac 40 dropped 1
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