By Simon Benson, Associate Director, London

When Sky News’ Adam Boulton came to speak to guests at a recent Fleishman-Hillard Business Breakfast, he described current political events as a classic mid-term ‘wobble’. It is the cyclical nature of politics that after a couple of years in Government, Ministers will be punished in local elections and Opposition parties will reap the benefits.

For Labour Leader Ed Miliband, the results look a little better than the actuality because his Party is still coming from an extremely low base, despite some gains last year. However, it has been a good few weeks for a man who has been battling to gain the respect and confidence of his own party faithful, not just the electorate. He has landed well aimed punches at Cameron over high profile issues, such as the recession and the relentless fall-out from the Leveson inquiry, as well as the unravelling of the March Budget. Easy hits, perhaps, but even sitting ducks such as these can be missed if political leaders pitch their attacks in the wrong way. Google ‘Lord Kinnock’ for a few examples. Miliband is successfully making Cameron appear angry and not in full control, while gaining confidence in his own rhetoric. With both David Miliband and Tony Blair signalling returns to UK politics, Ed’s current renaissance would appear especially well-timed.

This time last year, Insight Special was noting how the Tories had held ground after a year of being in Government. After the loss of numerous councils and nearly 400 council seats, Cameron today said ‘these are difficult times’, though it is unclear whether he was referring to his party, the country or both. Only in London will Cameron get a reprieve with the predicted re-election of Boris Johnson. But this is partly because Johnson has (once again) managed to disassociate himself from the Tory brand (and by definition, Cameron). It also shows the extent of his personal popularity, especially in the traditionally considering left-leaning constituency of the capital. At a meeting last year, I asked him if he still intends to take the Tory crown and he bridged expertly, like a man who had been very well media trained. But the eyes are the window to the soul, and they twinkled like the night sky.

Last year, I rather uncharitably described the Liberal Democrat leader in Insight Special as ‘Calamity Clegg’. Since then, he has passed the two immediate tests that faced him at that time; having the resolve to carry on in Coalition, taking the rough with the smooth; and carrying the support of his parliamentary party.  That resolve has taken him through the resignation of one of his most high profile Ministers, Chris Huhne, while supporting Tory cuts and reforms to the NHS that many of his party faithful simply cannot stomach. The Liberal Democrats are nothing without their well-oiled local election machine and the generally rather well-healed activists that operate it. Clegg will be squeezed even further by these activists on the one side demanding more Lib Dem influence at the top and Tories such as Gary Streeter MP on the other.  Streeter today said the results were a clear message to Cameron that voters ‘don’t think our leadership is Tory enough’.

Axioms are funny things; they are often so obvious as to be invisible. There are few things more axiomatic than that the old maxim that “to govern is to choose”.

Within government these tradeoffs are rarely starker than in tax policy, where the choices in the 2012 Budget continue to cause controversy: we’ve had scandal du jour over “Granny Tax”, “Charity Tax”, “Heritage Tax”, and most memorably, “Pasty Tax“. The latter is perhaps most memorable as it showed Prime Ministerial amnesia on his pasty consumption, matched only by the awful photo op of Ed Balls ordering 8 sausage rolls with the consummate ease of one who does it daily, whilst Ed Milliband and Rachel Reeves looked as if they’d never been into a bakery before (above). Indeed, commercial bakers Greggs have been in the forefront of the opposing the “pasty tax”.

But for our Pre-Budget outlook here at F-H, we assessed that there was a reasonable chance that the Government would curtail or remove the upper-rate relief on pension contributions. Currently costing £7bn per annum, the relief allows higher rate taxpayers to claim 40p relief from the Government for every £1 saved up to a maximum of £50,000 in contributions per annum. With average UK full time salaries at £26,200 in 2011, the number of people who can contribute £50,000 per annum into their private pensions is necessarily very limited.

£7bn is a real money at a time when the UK’s public finances remain dire – it is fully 5.5% of the 2011-12 fiscal deficit – curtailing the relief seemed a proportionate way of demonstrating that “we’re all in this together.” In other words, the distributional benefit is skewed towards the highest earners, whereas adding VAT to hot snacks – lampooned as the “pasty tax” – will increase the cost of sausage rolls and pasties for all, including many on low to medium incomes.

Instead, upper rate relief was left in place, and “pasty tax” was announced.

The political saliency of this issue is in this perceived unfairness. Assume for a second that demand for sausage rolls is constant irrespective of the VAT. How many sausage rolls (with VAT) are required to pay for upper rate relief?

Cost of a Greggs sausage roll in Hadleigh, Suffolk three weeks ago: £0.88

Implied additional VAT @ 20%: £0.176

Cost of upper rate tax relief on pensions: £7bn

Number of sausage rolls with VAT to pay for Upper rate tax relief: 39.77 billion

UK population: 62.26 million

Number of sausage rolls per head to pay for Upper rate tax relief: 639 (per annum)

In other words, to pay for the wealthy to have pensions tax relief, everyone in the UK needs to eat two Gregg’s sausage rolls a day for 274 days per year, cutting back to one sausage roll a day for the other 91 (3 days on, 1 day off).

It is this political reality that underpins the theatre. And it is these perceptions of fundamental unfairness that have bedevilled the presentation of the 2012 Budget.

Guests heard the Political Editor of Sky News talk about the future prospects of Cameron, Clegg and Miliband in a wide ranging on the record discussion on politics and broadcasting.   In a Q&A chaired by London’s Head of Public Affairs, Nick Williams, Boulton spoke about the next reshuffle, the rising stars at Ministerial level (David Gauke, Mark Hoban and Clare Perry were among those named), a talent drain in the Liberal Democrats and the change in campaigning techniques from ‘battle buses’ to TV debates. On broadcasting, he said the job of TV was to inform, not change voters’ political views.  Boulton passed comment on Education Secretary Michael Gove’s chances of promotion and speculated on Westminster gossip regarding a future swap of the top jobs at the FCO and Treasury. On the current political situation, Boulton said that the Tories were having a ‘wobble’ but that Boris Johnson will win the contest for them at the London elections in May.

Many thanks to Adam and nearly 100 guests for an interesting, insightful start to the day. Dozens tweeted throughout the event at #fhboulton, including Boulton himself, who said: ‘speaking at Breakfast for Fleishman – one of those alarmingly well informed audiences’.

Nick Williams with Adam Boulton

Former Blair aide Matthew Doyle, at the Boulton breakfast

Guests at the Business Breakfast

Boulton Breakfast at Browns Restaurant

I have to admit that when I was first offered a placement with Fleishman-Hillard last autumn, I wasn’t quite sure what to expect. I’m from Los Angeles, where I’ve had meetings with CEOs wearing Chuck Taylors and sweats, and I had been living in South Africa for most of the last year. Needless to say, my world has been far removed from the financial world headquarters that is London, with its suits and smart attire.

However, when I showed up on that first day (a few minutes late, as I hadn’t quite got to grips with the Tube), I was greeted with warm smiles and lots of encouragement. The last 14 weeks have been a wonderful experience working with the technology team and digging my hands into everything from media tracking and regional reporting to digital communications for brands.

My typical day started with a morning round of papers to catch up on the latest news (mostly focusing on the technology sector); media monitoring and daily reporting; and press research – while in the rest of my time I was able to attend brainstorm sessions, work on client briefing notes, and I even joined the digital team for a day. I also really loved the FLY lunch and learn sessions. These are internal presentations given a few times a month on a variety of different topics such as pitching, media training, digital and account growth to name a few.

In February, I even almost won person of the month. Each month team members can nominate a person who they feel has made a special effort that month. I know almost usually doesn’t count. But my colleagues graciously presented me with a bouquet of flowers for my help with Mobile World Congress and I feel pretty good bragging about it. I’ll take runner up to Francesca Palmiero any day!

My time at Fleishman-Hillard has truly been memorable. Some things will inevitably be more memorable than others – I don’t think I’ll ever forget how to do a daily coverage report! But my colleagues, who I hope I can now call my friends, have surely made a positive impact on my future career. Thank you for all your guidance along the way.

I’d also like to give a special shout-out (in true American form) to my line manager, Katherine Dyriw. You’ve been a great mentor throughout my stay, and I really appreciate your help and support along the way.

Best wishes to everyone. I’ll see you out there.

Sarah Kane

I would expect any graduate hoping for a career in communications to be able to make themselves look good on paper. As well as putting themselves across with enthusiasm, I was particularly impressed by the range of experience they had acquired during their university careers. As someone who viewed my uni holidays as an opportunity to get enough shifts in the local bar to afford a month’s island-hopping in Greece, the range of (paid and unpaid) work experience that students take on is truly astounding. It demonstrates everything from team-work, creativity, digital, writing and leadership skills. While one part of me is impressed by this commitment and a little intimidated by their drive (‘Blimey, this one could do *my* job’ was a not uncommon reaction among the selection panel) I hope that bar-tending and island-hopping, or the modern equivalent, still also count towards making a so-called well-rounded candidate.

Perhaps a more important point is that I’ll be ignoring the doom and gloom about current graduates (a different way to articulate the old moan about ‘the youth of today’?) and I’m looking forward to meeting some very interesting candidates.

Last night’s episode didn’t fail to disappoint on that front – from Team Sterling talking all over each other in indignation in the boardroom, to Team Phoenix reinventing a solution to a problem that really didn’t exist to begin with – the usual elements were all there. What struck me most though, was the common disregard both teams seemed to apply to the process of finding out what their target audience might actually want. Focus groups were conducted but results were largely ignored on both sides; product ideas seemed to be considered valuable because one or two individuals thought they might like to have one of those and anything or anyone that indicated there might be flaws in this process was firmly bundled away into the ‘too difficult’ or ‘not a team player’ boxes.

As a PR practitioner, I can see some valuable lessons to be learned here. Without casting any aspersions on some fantastic work I’ve seen clients and colleagues do over the years, we can all probably agree that many great campaigns start with the headline we’d like to see, not necessarily the story that’s actually there to be told. More than one PR-driven survey has originated in the desired end result, with the questions designed to get us there regardless of reality or audience appetite. But with most communications channels now, surely permanently, set in two-way mode, PR is in a strong position to break the habit of a lifetime and take the lead on business planning from the outside-in, rather than the inside-out model.

Alongside all the other seismic shifts shaping our industry is the growing focus on using the channels and skills we already have to identify and apply valid audience insight to strategy discussions.

Communications have to be based on what the listener wants to hear, not just what the speaker wants to say. From either a product or service perspective, taking a closer look at why target audiences consume the way they do is more valuable than simply noting what they consume. Once you know why, it’s much easier – and sustainable – to influence how. It sounds simple and obvious in theory, but I’m probably not alone in seeing it isn’t always the case in practice. Budget constraints and legacy brand beliefs are just some of the reasons why many organisations still choose to invite people over to their place, rather than go out and pay them a visit.

Plus, true insight is hard to get hold of – it’s still difficult to distinguish fact from insight in many cases because the two have become largely interchangeable terms over the years. But, as last night’s Apprentice teams found out the hard way, not even trying to find it is simply just trouble waiting to happen.

One of the consequences of being a ‘Digital Native’ is that I have lived more years with computers, mobile phones and the Internet than without. Sending a press release via fax machine? This is an office joke I can only chuckle at but never fully understand and so I took it upon myself to disconnect for a full day.

24 hours can’t be that long I reasoned with myself – surely I can survive without BBC News Online, Twitter, Facebook and Foursquare for a whole day? With some trepidation, the sun set over the Fleishman-Hillard Covent Garden offices and the ‘National Day of Unplugging’ had begun…

Panic

I awoke on Saturday – no alarm as my mobile phone was turned off – realising that I needed to transfer some money to my friend. Even with their bank details, I couldn’t log into my Internet banking to make the transfer! Instead, I resorted to digging out their address from an old diary, writing a cheque and then heading to the Post Office with some change for a stamp. Whilst the pleasure of writing a letter and finding a stamp was quaint, standing in the queue at the Post Office on a gloriously sunny Saturday morning isn’t something I want to repeat in a hurry.

By Saturday afternoon I was gearing up for the evening and it dawned on me that without Facebook, I didn’t know where to go for a friend’s birthday dinner. It’s clear that I no longer retain information like before. Perhaps if I wrote it down in a diary or on a post-it I wouldn’t have had this problem, but I realised I have become so dependent on Google Calendar and Facebook Events to run my social calendar. Worrying yes, but that’s why I love technology – it makes your life much easier. With apps like Evernote and Wunderlist, it’s no wonder we’ve become so reliant and in my opinion, in a good way.

The sun set on Saturday evening and although the quiet and calm provided me the opportunity to catch up on reading magazines and newspapers, I was relieved when I could boot back up and see what I’d missed. More importantly, a switched-on laptop let me blog my thoughts on my experience.

Lessons

Technology makes life easier

By easier I mean day-to-day tasks are much more convenient. From finding out bank details to transferring money, without the Internet, this becomes a half-day task. With apps such as Pay with Square showcasing mobile payments becoming mainstream, it’s clear that banking is an area that is embracing digital to thrive and survive. Put simply, it makes consumers’ lives easier.

We are more social

Many critics argue that social networks have made us less social beings, constantly hiding behind a screen rather than engaging in conversation. Whilst I agree that overdosing can be detrimental, my experience showed me that Facebook is a great asset in staying connected with friends and making it easier to make plans. With Facebook Timeline launching for brand pages this week, we’re seeing brands trying to become more and more human, and rightly so. So much of our offline interaction is organised using technology and digital methods, so it makes sense for brands to embrace this for success. Indeed yesterday Mashable reported that the brand Timeline pages are seeing a 46% lift in page engagement.

It’s inevitable

Perhaps the best lesson I learnt was that becoming more digital is inevitable, simply because those around you are embracing it. Whilst I enjoyed the relative peace of not watching my phone alerts, what struck me about calling my friend on his land line, something that was the norm only ten years ago, was that we now have so many communication channels (e-mails, texting, WhatsApp, Skype) that we use much more regularly. It made me think; now consumers are active on so many channels, there’s now so much choice in finding the right ones to communicate to them. Certainly a challenge, but it is one that makes me excited to be working in Digital right now.

It was a great challenge and I wouldn’t have learnt these lessons without unplugging, so thank you to @SabbathManifest for a worthwhile initiative.

As with a lot of tech trends, we hear the hype, but we don’t immediately feel the impact. So what does 3D printing involve? And is it really going to become a process which we use in all areas of life?

Let’s start with the name…printing is a term which does cause slight confusion, when considering the process and technique involved. Let’s call it manufacturing; effectively, the technology turns digital image files into physical objects. It ‘prints’ these by placing layer upon layer of the given material  – such as plastics, metals and human tissue – on top of one another. Yes, according to some experts, printing body parts could be on the cards within the next 20 years.

This is when the 3D printing revolution becomes incredibly exciting. The medical possibilities are out of this world. For those who have lost limbs, or require organ transplants…hey presto, we’ll print you a new one! Of course, this use of the technology is still very early on in the research and development stages and it’s going to be quite some time before we do start to see these advancements in mainstream medical use. It’s undoubtedly more complicated than simply hitting the print button – opening up its own complex ethical debate.

But aside from that, what else can be printed? Scientists at Cornell University are working on a 3D food printer, coming to a kitchen near you very soon. Dishes are made using a technique known as Food-SFF (Solid Freeform Fabrication) which heats and squirts homogenous pastes through nozzles, building a 3D layer of food into any shape you fancy. Aside from being able to print different food combinations to create new flavours and textures, it’s billed as being a great time-saver in the kitchen.

For many, that pushes the 3D printing remit a little too far. What do I think of this? To be honest, it’s probably where I draw the line…Solid Freeform, with a dollop of Fabrication and homogenous paste on the side doesn’t sound too appetising.

The fact remains that 3D printing is going to have an undeniable impact across a diverse range of industries and sectors, which are ultimately going to infiltrate so many areas of our lives. The manufacturing possibilities are endless.

I’ll certainly be keeping an eye out over the next few months to see the latest developments – some more far-fetched than others – in the world of 3D printing. Watch out for more news here…

RSVP to events@fleishmaneurope.com – places are strictly limited.

 Helping small businesses

Working to fight the rising levels of youth unemployment the Budget’s capital allowances, tax breaks, and the National Loan Guarantee scheme will provide support for tech start-ups by expanding credit availability and investment opportunities. This reduction of risk for investors and costs for small businesses hopes to foster growth in the Silicon Roundabout and to encourage other business hubs in the UK.

Boosting tech infrastructure

Osborne promised to deliver Ultra-Fast Broadband funding in 10 major cities in Great Britain, as well as provide an additional £15 million in funding for rural cities to improve phone coverage and broadband services. This is vital to keep pace with other countries, where fast broadband is the norm and to encourage internet-reliant companies to set up in the UK.

Support for the video game industry

Keeping home-grown talent in the UK is important to Osborne, who considers the digital industry something that makes Britain great. Tax incentives similar to the Film Tax Credit will be introduced to protect the country’s video games, animation and “high-end” TV production industries. This could lead to growth and innovation in these areas; the Games Tax Relief alone could provide up to 5,000 jobs and contribution to UK GDP by £283 million.

Making the UK more aerodynamic

The 2012 budget is taking the UK’s recent advancement to the world’s second largest aerospace industry very seriously, pushing the country towards becoming a leading innovator in aircraft design with the announcement of an investment of £60m in a UK centre for aerodynamics. The UK aerospace industry could be one to watch.

Keeping Britain green

The UK will invest in renewable energy and replace revenues lost to the Carbon Reduction Commitment through considering an alternative environmental tax. This tax could prove important to green data centre initiatives, which consume large amounts of energy and have equally large carbon footprints, focusing the industry to work towards greater efficiency.

We’re glad to see that technology is high up on the government’s agenda where it belongs.