James Murdoch has given the British establishment another lesson in mid-Atlantic business speak this morning. The long drawn out discussion has thrown up some interesting snippets so far. Not least was the discussion around a Christmas dinner foolishly attended by the Prime Minister at Rebekah Brooks’ house, which Guido broke a day before the Guardian claimed the scoop. You read it right here first…

Murdoch Jr. confessed that the BSkyB bid had come up at said dinner: “It was a tiny side conversation, it was not a discussion.” Which is somewhat different to what government spinners have said previously. A nervous No.10 will be thinking it could have been a lot worse, but this is still a potential breach of the Ministerial Code as Labour pointed out at the time.

Culture Secretary Jeremy Hunt was not so lucky though. Murdoch coughed that Hunt was essentially his back-channel point man for the deal after Vince Cable made clear that a meeting was not going to happen. The chief inquisitor Mr Jay called him Hunt a “cheerleader” and his statements made to the Commons on the matter are looking a little shaky this afternoon…

UPDATE: Rumour reaches Guido that correspondence between Hunt, his SpAds and the Murdochs in regard to BSkyB will be published by the inquiry later. It is said to be very bad news for Hunt.

UPDATE II: Hundreds of pages of emails will be released covering conversations with Hunt’s staff and Murdoch staff. At 4pm…

Telegraph newbie Donata Huggins has broken the rumour that the Taxpayers’ Alliance founder Matthew Elliott is off to Downing Street. Guido understands it is definitely not a done deal, though Elliott has been in discussions with the likes of Ed Llewellyn, Rohan Silva and Steve Hilton since as far back as January about taking on an external relations role. It is the same job that Tim Montgomerie was approached about in December and in fact Montgomerie recommended Elliott to Downing Street. The role will focus on building policy coalitions so that the government can be prepared for or better still avoid getting into unexpected fights like they did on the health bill. Elliott has been spotted going in and out of Downing Street regularly.

As Guido mentioned earlier there is a big re-organisation looming. Policy Exchange think-tank boss Neil O’Brien – a much tipped potential Downing Street recruit – is adamant he is happy where he is and definitely not going anywhere imminently. Word is that Andrew Cooper could be about to make an exit to go back to Populus to cash in ahead of a sale of the pollster in the not too distant future. Guido also hears that Hilton may not be the only Steve in the building making an exit, though Rohan Silva is staying despite reports to the contrary. Guido understands that pressure is being put on staffers to declare one way or the other whether they are going soon, or staying in for the long haul. What will be playing on many Downing Street denizens minds is that a mid-term exit puts staffers at the peak of  their commercial value…

Tom Clougherty is leaving his post as Executive Director of the Adam Smith Institute at the end of April. He will be taking up a new post as Managing Editor of the libertarian Reason Foundation think-tank in Washington DC.

Dr Madsen Pirie, president of the ASI tells Guido, “We are very sorry to be losing Tom because of the incredible work he did to build up the ASI, but this is a wonderful opportunity for him and we wish him well in his new venture.”  There are a lot of ladies in Westminster who will miss the charmer’s smile too..

We are on the eve of a round of musical chairs in Westminster’s wonk-land – expect announcements soon. Downing Street is looking likely to have a big re-organisation of personnel on the policy unit front – Steve Hilton is off to California and Clegg’s strategy wonk Richard Reeves is also leaving for America. They are not the only ones said to be leaving Downing Street.  Foreceful political direction of the civil service is much needed, the permanent bureaucracy has become far too dominant in Downing Street…

Guido never had Matthew d’Ancona down as a Daily Star Sunday reader but you learn something every day. He writes this afternoon: “Steve Hilton, the Prime Minister’s closest adviser, has indicated that he may run for mayoral office when he returns from sabbatical, on the grounds that this will enable him to make a real difference at street level.” Confirming what we said back in February:

“…few believe he will return to Downing Street – rumour has it that he wants to try out his big ideas directly by running a city as mayor.  Given that he got nicked in 2008 for losing his rag with a train ticket inspector in Birmingham, we can cross Brum off the likely list.”

Guido’s money would be on Brighton for the former Green voter, but it’s hardly a big budget executive…

After a terrible couple of weeks of contempt and mocking, what does the government do? Throw in some BS of course. With £600 million found for the Big Society Bank, Cameron told a crowd at the London Stock Exchange:

“Change is always difficult. There are sceptics to convince, vested interests to overcome and arguments to be won… The top-down state controlled monoliths have failed. “

It sounds more like an attack on the Civil Service. With Steve Hilton departing tomorrow, the “sceptics” are now running the show…

It wouldn’t be a terrible week for Dave without his old chum David Davis weighing in. He’s told the BBC “look at the front bench. They see them, all very well turned out, well-fed, they look like they’re in a completely different world.” When asked whether the PM was out of tough Davis helpfully added “it’s an unfair allegation, but it works.” Finally he echoed what lots of Tories are thinking: what the hell is going on in Downing Street?

UPDATE: Here is the audio:

Given the spotlight this week, it’s pretty unfortunate timing for the Tories to be sending out mailshots to potential donors with references to Downing Street on the letterhead:

Is that the key or the keys they are offering?

Via Fleet Street Fox

Michael Spencer was the Tory Treasurer before Peter Cruddas, here he is an interview he gave to the financial derivatives trade magazine Risk. He boasts in the interview that he knows the government will veto the tax the derivatives brokerage industry in London fears most:

Risk Magazine: You expect the Financial Transaction Tax debate to fade away. What happens if it doesn’t?

Michael Spencer: I have had it first-hand from very, very senior members of our administration who I know personally and have had good relations with for a long time, that it will be vetoed without any doubt and without any reservation at all.

Risk: Have you heard the same from other firms? Would there be an exodus?

MS: It’s not a matter of dinner-party conversation because genuinely we think if the French decide to go it alone in imposing an FTT we wish them every good fortune, but there is not a prayer in Hades that the UK will sign up for it.

Risk: And you heard that personally from a figure in the UK government?

MS: Yes, indeed.

Risk: Who?

MS: I’m not comfortable telling you who I speak to in private.

Guido is comfortable telling you…

The Prime Minister David Cameron told the City tycoon who owns ICAP, the biggest broker of financial transactions in London with the most to lose from the Financial Transaction Tax that he would personally veto the thing that would most damage his business.

Over dinner.

As reported in the last post, Sir Anthony Bamford the JCB chairman got to write a policy report for the government. He also popped into the flat.

Dinners in No 10 which major donors have attended:

14 July 2010 – No 10.  Attendees:

Anthony & Carole Bamford

Michael & Dorothy Hintze

Murdoch & Elsa Maclennan

Lord John & Lady Sainsbury

Andrew Feldman

Jill and Paul Ruddock

Mike and Jenny Farmer

Michael and Clara Freeman

28 February 2011 – flat

David Rowland and his wife. Andrew Feldman also attended.

2 November 2011 – flat. Attendees:

Henry and Dorothy Angest

Michael Farmer and wife

Ian Taylor and wife

27 February 2012 – flat

Michael Spencer and partner.

And what about Chequers?

The Downing Street flat is one of the most protected pieces of public property in the land. The Treasury have spent millions on renovations and upkeep over the years. The area around Downing Street has been Crown property since, as the No. 10 website puts it: “when Henry VIII confiscated York House from Cardinal Wolsey in 1530 and extended the complex.” The government’s own website goes on to state that “King George II presented both the house on Downing Street and the house overlooking Horse Guards to Sir Robert Walpole” in 1735. Since then they have remained government property.

The Camerons pay no rent on the flat, and though they met some of the recent restoration costs, the taxpayer picks up most of that tab. Since 1989 you have required security clearance to even get onto the street, let alone into the building or up the stairs. Any notion that this is somehow private property is either a vast delusion of grandeur or a desperate holding measure while the list of unsavoury characters is scanned and checked for landmines…

UPDATE:

Was this a private or public affair?