He is enjoying his new toy. He looks up from the telephone to see aides anxiously pointing to their watches. He is running late for his address to the Conservative Party. He is driven the short distance to the House of Commons accompanied by the special protection officers who have been at his side in the weeks leading up to the election and will now accompany him for the remainder of his premiership, and indeed the rest of his life. His new escorts follow him up the stairs to the Grand Committee Room where he is greeted with wild cheering from Conservative parliamentarians. The chief whip, Patrick McLoughlin, calls for silence with the words ‘Colleagues, the prime minister.’ ‘I can honestly say that I was the first person to call him prime minister in public,’ McLoughlin recalls.13
It is 10.06 p.m. The atmosphere in the cramped room is near hysterical with excitement. After the long election campaign, MPs have endured a further five days of uncertainty until it becomes clear only a couple of hours before that Cameron will be prime minister. Aides recall ‘a ferocious cheer, banging of desks and wild excitement’ after he makes a short speech about events during the historic day.14 It will not always be this cordial when Cameron meets his party’s MPs. Farewells over, the team repair to Cameron’s former office in the Norman Shaw building. Osborne’s team join them and together they tuck in to pizzas in celebration.15
Cameron relaxes in his old haunt among old friends, but becomes aware that Llewellyn and Fall are telling him he needs to go back to Downing Street. Once there, Cameron returns to the phone, absorbing the quickest of briefings between calls. Sarkozy will be his ‘best friend and biggest rival’. ‘I need you to tell me when I get it wrong,’ Cameron says to his officials. A respectful conversation with Manmohan Singh of India follows while calls stack up with the Japanese and Chinese. Meanwhile, calls are still being put through from Number 10 to Gordon Brown, who is being driven to the airport to head north to Scotland. Obama and other leaders are keen to bid farewell to the former prime minister. At one point, Brown rings Number 10 to thank Fletcher for his assistance with the calls. It is a surreal moment. Foreign leaders would have been surprised if they knew that their words to Brown a few hours before – ‘It’s a pity you are having to leave because you were so good’ – were being noted down by the same official who heard them say to Cameron, ‘We always wanted you to win. It’ll be great and we can now reset this relationship in a much better way.’
William Hague is present at Number 10 for much of the evening. Hillary Clinton, US Secretary of State, wants to congratulate him, but officials decide that the call should wait until the following morning as he is yet to be formally appointed Foreign Secretary. Hague, ever philosophical, accepts their advice with a smile, and walks through to Brown’s old office in Number 12 where more pizza is being shared by Cameron’s small team. With amazingly few exceptions, here are the team who will carry him through the entire five years. They are his four closest Cabinet colleagues: Osborne, Hague, fixer extraordinaire Oliver Letwin and close friend and colleague Michael Gove. His aides are Llewellyn, Hilton, Coulson, Fall, Oliver Dowden (a senior party aide), and Laurence Mann. Present too are the officials, Heywood, Fletcher, James Bowler, the PM’s principal private secretary, and Rupert Harrison, Osborne’s heavyweight economist and multi-talented chief of staff who is still only in his early thirties.
The new incumbents notice the pen marks on the table and ask officials, ‘Is this where Gordon stubbed his pen? Is this where he threw his phone?’ Their questions are not driven by point-scoring, but more by awed curiosity: ‘There was no gloating,’ notes one. Officials’ first impressions of Cameron that night are that he is more level and composed than they had expected. Already they detect a calmer and more orderly tone to Downing Street. Cameron’s team start drifting away from 1 a.m. The adventure for which they have worked tirelessly since Cameron became party leader four and a half years before is about to begin. Llewellyn leaves at 3 a.m. ‘It was the most exciting night of my life,’ he recalls.16
TWO
September 2008–February 2010
The most important decision to be taken by the Cameron government of 2010–15 was made before it even got into power. The decision had three distinct phases: the autumn of 2008, June 2009 and the autumn of 2009. Together they formed the building blocks of what became known as ‘Plan A’: placing deficit reduction at the very heart of their economic strategy. It provided the coalition government with its core narrative and principal claim to success, and it gave a coherent platform for the Lib Dems to sign up to and their rationale for remaining in the government. But these very decisions in 2008 and 2009 were also to cleave Cameron’s team right down the middle, to contribute to him losing his stride in the 2010 general election, and almost certainly cost the Conservatives an overall majority. It is important thus to examine this history.
The first plank in the Plan A platform was put in place in the autumn of 2008. On 15 September, Lehman Brothers, the 158-year-old investment bank and the fourth largest in the United States, filed for bankruptcy. The shockwaves triggered the global financial crisis. Jon Cunliffe, a senior official in the Cabinet Office, sent an email around Whitehall: ‘If we don’t do something now the whole system is going to go down. We have to act.’1 That week, the survival of British banks RBS and HBOS was at stake. As Prime Minister Gordon Brown and the Labour Party gathered in Manchester for their annual conference on 20 September, Brown was brought a note to say that Goldman Sachs, the bluest of blue-chip banks, might be on the verge of going under. The British economy was in dire danger. Cameron and Osborne regarded Brown as the principal architect of the economic position the country found itself in. But it was the PM who held the initiative, and was about to absolve himself of any blame.
Brown took the unusual step of addressing the Labour conference on the opening Saturday, speaking without notes and with gravitas about the profound problems in the global economy. It underpinned his own position in the party, as well as in the country, as the leader uniquely placed to handle the grave predicament. His main speech on Tuesday 23 September was preceded by a masterstroke. The conference expected him on the podium, but his wife Sarah walked on to the stage. ‘Every day I see him motivated to work for the best interests of the people around the country,’ she said, concluding her two minutes by introducing ‘my husband, the leader of your party, your prime minister, Gordon Brown’. It was a coup.2 He remained on a high throughout the speech. His most effective line was that it was ‘no time for a novice’, referring not only to Cameron, but also to Brown’s would-be challenger, David Miliband. The most powerful of his three conference speeches as prime minister, it further underwrote his credentials as saviour of the nation. Brown left Britain on 24 September on a much-hyped trip to New York and Washington, leaving Cameron and Osborne behind at their conference desperately trying to find a way to make an impact. As PM, he had found a role.
Unlike Brown, whom they disliked, and the chancellor, Alistair Darling, whom they quite admired, the two leading Conservatives had neither the power of office, nor the boon of the advice and information from the Treasury, Cabinet Office and Bank of England. They were very young and inexperienced, as they were painfully aware. Cameron had more understanding of economics than Osborne. He had studied it as part of his politics, philosophy and economics