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Labour’s new economic vision offers a chance to win votes. It must be seized Labour’s new economic vision offers a chance to win votes. It must be seized
(35 minutes later)
The left has often been accused of having a far clearer idea of what it is against rather than what it is for. It would be perhaps a bit unfair – but not unjustified – to say that our economic vision has long amounted to slogans against cuts and privatisation, without any overarching idea about what sort of economy would be built. The rise of Thatcher’s New Right, trade union defeats, globalisation, and the end of the cold war – which was spun as the death of any alternative to free market capitalism – reduced the left to a defensive posture, committed more to defending existing gains rather than offering a coherent alternative. The left has often been accused of having a far clearer idea of what it is against rather than what it is for. It would be perhaps a bit unfair – but not unjustified – to say that our economic vision has long amounted to slogans against cuts and privatisation, without any overarching idea about what sort of economy would be built. The rise of Thatcher’s New Right, trade union defeats, globalisation and the end of the cold war – which was spun as the death of any alternative to free market capitalism – reduced the left to a defensive posture, committed more to defending existing gains than offering a coherent alternative.
Yesterday’s speech by Labour’s shadow chancellor John McDonnell was a bold corrective. Yes, there was a damning indictment of the Tories’ economic failures: the failure to eliminate the deficit as promised, a rising national debt, lagging productivity, stagnating living standards, precarious jobs, and the national scandal of child poverty in one of the richest societies that has ever existed. But rather than simply chin-stroking and finger-wagging at the Tories, here was an attempt to actually say what Labour would do. Red lines on Brexit – like access to the single market while addressing people’s concerns about “the undercutting of wages and conditions” – were drawn. There was a commitment to defend the interests of financial services – with a quid pro quo that there would be no “return to the casino economy”. Yesterday’s speech by Labour’s shadow chancellor John McDonnell was a bold corrective. Yes, there was a damning indictment of the Tories’ economic failures: the failure to eliminate the deficit as promised, a rising national debt, lagging productivity, stagnating living standards, precarious jobs and the national scandal of child poverty in one of the richest societies that has ever existed. But rather than simply chin-stroking and finger-wagging at the Tories, here was an attempt to actually say what Labour would do. Red lines on Brexit – like access to the single market while addressing people’s concerns about “the undercutting of wages and conditions” – were drawn. There was a commitment to defend the interests of financial services – with a quid pro quo that there would be no “return to the casino economy”.
It was a speech not lacking in concrete proposals: a tax transparency and enforcement programme; a £250bn investment programme in infrastructure and clean energy; a national investment bank, backed up by regional investment banks, to support small businesses; legislation to stop the emergence of Philip Greens by reforming companies – preventing them from “taking on excessive debt to pay out dividends” and ensuring company takeovers protect workers and pensions; the promotion of cooperative and worker ownership; protection for self-employed people; plans for a universal basic income and the reintroduction of collective bargaining to stop the levelling down of wages.It was a speech not lacking in concrete proposals: a tax transparency and enforcement programme; a £250bn investment programme in infrastructure and clean energy; a national investment bank, backed up by regional investment banks, to support small businesses; legislation to stop the emergence of Philip Greens by reforming companies – preventing them from “taking on excessive debt to pay out dividends” and ensuring company takeovers protect workers and pensions; the promotion of cooperative and worker ownership; protection for self-employed people; plans for a universal basic income and the reintroduction of collective bargaining to stop the levelling down of wages.
The critique writes itself: Labour lost the last election because it was not trusted with the nation’s finances. How on earth do these speeches address those concerns? There are two points to make. Firstly, Labour’s failure to defend Blair and Brown’s spending record – with the Tories revising history to claim that the investment they backed was at the root of Britain’s economic woes – is critical to understanding the party’s election loss. That’s why the Tories’ line – “why hand the keys back to the driver who crashed the car?” – was so devastatingly effectively.The critique writes itself: Labour lost the last election because it was not trusted with the nation’s finances. How on earth do these speeches address those concerns? There are two points to make. Firstly, Labour’s failure to defend Blair and Brown’s spending record – with the Tories revising history to claim that the investment they backed was at the root of Britain’s economic woes – is critical to understanding the party’s election loss. That’s why the Tories’ line – “why hand the keys back to the driver who crashed the car?” – was so devastatingly effectively.
Secondly, Brexit offers an unlikely political opening. Voters were told that, if they voted to leave the European Union, economic disaster awaited. Big businesses lined up to warn of the terrible economic consequences. More than half the British electorate marched to polling booths and voted to leave anyway. Why? They were inspired by a vision (one I rejected) that trumped their worries about the economy. That’s Labour’s task today. Big businesses are again lining up to denounce the party’s plans, but they are not trusted by the public. The main challenge – not yet addressed – is to present Labour’s vision in a clear, easily digestible format that resonates with voters. Only sad politicos like me bother to watch long speeches: how can it be presented in a way that inspires the electorate, as “take back control” undoubtedly did during the referendum campaign? Secondly, Brexit offers an unlikely political opening. Voters were told that if they voted to leave the European Union, economic disaster awaited. Big businesses lined up to warn of the terrible economic consequences. More than half the British electorate marched to polling booths and voted to leave anyway. Why? They were inspired by a vision (one I rejected) that trumped their worries about the economy. That’s Labour’s task today. Big businesses are again lining up to denounce the party’s plans, but they are not trusted by the public. The main challenge – not yet addressed – is to present Labour’s vision in a clear, easily digestible format that resonates with voters. Only sad politicos like me bother to watch long speeches: how can it be presented in a way that inspires the electorate, as “take back control” undoubtedly did during the referendum campaign?
Labour’s obstacles are formidable. The party’s polling is catastrophic, it is self-evidently divided, and its leadership has yet to find its feet in communicating its message amid such a hostile media. Yet while Labour’s divisions are well documented, on the economy – and other key issues – there is a striking amount of unity. The odds are of course stacked against Labour succeeding. But after a torrid few months, this determined effort to sketch out a new economy offers hope, and it should be seized upon.Labour’s obstacles are formidable. The party’s polling is catastrophic, it is self-evidently divided, and its leadership has yet to find its feet in communicating its message amid such a hostile media. Yet while Labour’s divisions are well documented, on the economy – and other key issues – there is a striking amount of unity. The odds are of course stacked against Labour succeeding. But after a torrid few months, this determined effort to sketch out a new economy offers hope, and it should be seized upon.