Practical policy for Labour from the Small Business Forum conference fringe

12/10/2012, 11:19:09 AM

by Philip Ross

The Labour Small Business Forum is a network of Labour members and supporters who work for themselves or in a small business. We recently held a fringe at Labour party conference with a simple goal: to not just to talk round the issues but highlight some practical proposals for the party for small business, proposed by small business.

We had the best SME line up at conference with around 50 people attending. After my introduction in which I stressed the importance of modernising the way we work and supporting emerging firms and freelance working, John Walker the national chairman of the Federation of Small Business picked up on comments about IR35.

This regulation, which means freelancers who work for one client are treated as an employee for tax purposes, despite not having the same rights as an employee, has long been an issue for contractors.

John agreed that it was a complicated and unwieldy tax that has not been resolved and was a bar for going into business. He went on to reiterate the familiar problems that small businesses have with getting hold of finance from the banks. Confidence in financial institutions is a problem and he made reference to the mis-selling of interest rate swaps to many of his members.

As a policy call he suggested that it was hard for small firms to initially grow and take on people and backed an NI holiday for firms that did this, in line with the party’s policy.

He was followed by Dr Jo Twist of the UKIE (the trade association for the UK’s games industry), her points neatly dovetailed with his as she talked about the phenomena of crowd-funding which was a way that investors could lend to companies directly using the internet as a platform and thereby circumnavigating the banks.

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Want to engage young people? Lower the voting age to 16 and build up citizenship education in schools

09/10/2012, 02:41:49 PM

Last week Lucy Rigby won the “top of the policies” vote at Pragmatic Radicalism’s event at Labour party conference. The winning proposal tackled the question of how to engage young people in politics

Most people with even a vague knowledge of politics know that the way we do politics – in this country and others – is in deep, deep trouble.  Turnout, in every type of election, is low – which, amongst other things, raises all manner of questions about legitimacy.  People feel disengaged from politics, particularly young people.

You don’t need to be a canvassing enthusiast to be all too familiar with phrases such as “they’re all the same” and “voting doesn’t change anything”- that’s just the standard office view (on the few occasions politics is talked about).  There doesn’t seem to be much of an explicable connection between physically putting an ‘X’ in the box of a candidate in constituency Y, and the prime minister that appears on the television a day later.

In essence then, I don’t think it’s an exaggeration to say that the mechanics of our democracy is in crisis.  It’s the responsibility of our generation to solve it.

First then, let’s enfranchise 16 year olds.  Currently, a 16 year old can get married, fight for their country, pay income tax and national insurance and become a director of a company.  But they can’t vote.  That’s not fair and it doesn’t make any sense.  Let’s change it.

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The future is Labour’s to define

02/10/2012, 09:30:39 AM

by Sophie Lambert Russell

Analysts of the 2010 election cannot deny that during the televised debates Nick Clegg charmed his way into the hearts and minds of the British public with his apparent honest approach and sincere appeal to the camera. However, various news outlets are now awash with musings about the next election and it is all too clear that the buzz surrounding Nick Clegg vanished long ago.

The Liberal Democrats have failed to withstand the pressure that comes with being treated as a serious contender in government. An aide who accompanied Clegg during the campaign likened his success to a movie script: “we were like that mousey girl who goes to the prom in films, takes off her glasses, and shakes her hair, and suddenly everyone realises how beautiful she is” he said.

The media were certainly captured by Nick Clegg’s sparkle but this statement does reflect a slight ‘Bambi-ness’ in the Liberal Democrat camp. Since being in power they have failed to push through electoral reform and betrayed a core group of their voters by breaking their election pledge to abolish tuition fees. Jeremy Paxman described this pledge as “the most bare-faced untruth” on Newsnight last week and consequently the party has lost more than half of the support it had in 2010 and Nick Clegg’s popularity is plummeting.

The Conservatives have fared little better. Cameron had the unique experience of not entering his first term in office on the back of a political victory, but as a part of a hastily thrown together coalition. They should have worked harder to shape their message and form popular policy initiatives but like their election campaign, their time in office has been characterised by confusion and inconsistencies with U-turns on removing tax breaks for charitable donations, selling off Britain’s forests, the pasty tax and the third runway at Heathrow.

Arguably, this would not be such of an issue if the Conservatives knew how to handle the press but curiously for the party that brought us Thatcher, ‘the marketing pioneer’, this modern day Conservative party is outrageously media incompetent. Boris Johnson described the commission on a third runway at Heathrow as ‘a fudge’, and fudging is exactly how the Conservatives will make their way through the next election. The government’s media operation resembles one of those old fashioned pinball machines where a policy or a story is catapulted into the political arena where it bounces out of control off any number of levers and whizzing dials while Number 10 are scrambling around trying to bring the story under control and spin it into something positive.

Additionally both parties seem extremely divided. Vince Cable is regarded by some as waiting in the wings, schmoozing Ed Miliband, ready to take the reins from his younger, less experienced counterpart. Cameron has bigger problems. However much he tries to deny it, it is hardly unnoticeable that Boris Johnson is mounting a campaign to take over as the next leader of the Conservative Party. His popularity is growing and growing after an extremely successful Olympics and his likeability and ability to reach across all sections of society is something that will prove invaluable in years to come.With the coalition floundering and both leaders tainted by its failures, Ed Miliband has real opportunity to score with his ‘real jobs guarantee’ and the renewed drive to engage everyone in the political process. Nick Clegg stated in his speech on the last day of the Liberal Democrat Party Conference that “only the Liberal Democrats can be trusted to deliver a fairer society”… yeah right.

All eyes on Ed please.

Sophie Lambert Russell is a Labour activist

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The real scandal in education is the inequality in schools’ funding

25/09/2012, 07:54:28 AM

by Robin Thorpe

Education is widely regarded as the single biggest factor in lifting people out of poverty, it is also the most influential interaction that many people have with the state. Yet the way that schools’ funding is dispersed is not widely known and if the Labour movement is truly about breaking down inequalities then the huge disparities in funding across local authority boundaries needs to be acknowledged and changed.

Massive changes are currently being implemented to the way that schools are funded and these changes are being effected largely because of the extension of the academy system.

Most schools that changed to academy status in the last few years did so voluntarily and did so because they were offered the carrot of increased funding. This carrot will no longer be available to academies, as from 2013/14 all schools will have control over their entire budget.

The maintained schools still have their budget set by the local education authority  (academies receive their budget from the education funding agency), but all funds are now to be delegated directly to the school.

Under the current system the LEA retains part of the budget for maintained schools in return for providing core services such as payroll, CRB checks and contingency funding. The new system will see schools having to buy back into the service (or they can choose another provider).

This is part of a large (top-down) re-organisation of schools funding that seeks to remove local authority control over schools’ funding formula and replace it with a national funding formula (centralizing schools funding policy). The main reason for this seems to be that the EFA has to benchmark its funding formula for schools nationally and it can’t rationalize the differences between authorities to maintain parity for academy funding across county boundaries.

They are therefore seeking to simplify the system; however the system they are seeking to simplify is very complex. The current funding formula is based on actual school circumstances and has been developed over several years to direct funding to schools for a specific purpose; for example in Dorset there are several schools near army stations that have a number of children leaving and joining each year, this inevitably adds an administrative burden to these schools.

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Finland offers Labour an education model to challenge Gove’s retreat into the past

20/09/2012, 02:59:38 PM

by Robin Thorpe

Regardless of whether Michael Gove had any influence on the recent GCSE results, education should be a major area of debate between the incumbent government and a Labour party aspiring to reduce inequality. Yet the parliamentary Labour party has been remarkably quiet on this issue and seems content to pick fault only with the way that Gove handled the exams debacle.

What I would like to see the PLP do is challenge the coalition on issues that are of real importance to the full spectrum of stakeholders within our public education system; for example a clear definition of what education is for and transparently defined objectives for any reforms that are undertaken.

Let us first consider the issue of examinations and so-called grade inflation; in 2010 the Cambridge Assessment Group reported that

“we found there were different challenges associated with different types of exam but that these are related to the changing purposes of examinations, not a simplistic matter of ‘too easy’ or ‘too hard’.”

The Cambridge Assessment Report was undertaken by a large group of educators, inspectors and assessors over a period of months and considered, amongst other things, the issue of ‘grade drift’.

The report states that “grade drift probably existed, although so many confounding factors made it difficult to isolate and identify. How this might have come about was extensively discussed.

One cause was the constant change to qualifications. Tim Oates suggested that

if you effect continual or inappropriate and unnecessary change of qualifications, it makes holding standards over time extremely difficult”.

Yet despite this report Gove has proceeded to attempt to further modify examinations without first forming a cohesive plan of what and how is to be reformed. One of the first acts of Gove as secretary of state was to cancel the issue of the new (skills-based) national curriculum that was written under the previous government. He then also removed the modular element of GCSEs; a decision that may have been made for good reason but it goes counter to the findings regarding grade drift.  Gove’s most recent proposed change is of course the E-Bacc; a sure-fire way of ceasing grade drift – change the qualification.

The review of the national curriculum now being undertaken is to be welcomed, although I fear I won’t agree with the results. The signs are that a renewed emphasis is to be placed on examinations instead of coursework and that these examinations are to be harder. In Finland, the top-performing European nation in the PISA results, the emphasis on testing has been much reduced; no external testing takes place and schools are free to set their own syllabus from a very simple national core curriculum.

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Westminster needs to learn from the City

19/09/2012, 03:19:26 PM

by Alex Glasner

Banking is, perhaps, one of the few careers that is less popular than politics. However, having made the leap from political researcher to the world of investment banking, what has become clear is that, far from being the seat of easy money and privilege, investment banking is hardworking, innovative, and meritocratic.

Can the Westminster village boast that it shares these characteristics?

I have no doubt that the world of banking needs to be better regulated, that banks should make clear their social value, and that banking needs to be more open, more accessible.

However, while issues such as excessive pay do need to be addressed, there are equally pressing problems in politics: – not least the fundamental ignorance of many politicians I have met to who struggle to discern the difference between investment and retail banking.

Politics has a lot to learn from and about the City.

Firstly, politics should imitate many of the practices of banking.

My last week in Parliament involved as much intrigue, drinking, and the use opinion not fact to mould speeches as my first week in banking required long hours, little sleep and using facts to write reports and inform opinion.

And yet politicians, especially in our party, like to use the City as a punch-bag. It is now with unadulterated irony that I view Westminster’s view of banking: they see it as privileged, avaricious, and socially barren.

To progress in banking, image is secondary to performance. People progress not so much through whom they know, so much as what they know and how they practice it.

In politics, I am sorry to say that I was struck by how the conviviality and friendship struck between MPs underpinned business and how insincere it could be.

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LAPEL – a way forward for increasing the participation of local communities in the rehabilitation of ex-offenders

06/09/2012, 04:31:25 PM

Last week Json Keto Edwards won the “top of the policies” vote at Pragmatic Radicalism’s event on local government in Southwark. The winning proposal tackled the question of how to bes tsupport ex-offenders.

LAPEL stands for the Life After Prison Employment League. It is a policy proposal that offers a new way to re-integrate ex-offenders into the community, and, critically, prevent re-offending.

Punishments vary in degree when the courts assess punitive sanctions but in reality, a conviction is a conviction no matter how petty or serious the issue.

Finding employment is naturally not an easy task, but when an individual has a previous conviction be it spent or unspent it is an even taller order. We all now live in a world where most employers including professional bodies demand to know if a prospective employee has any convictions.

The irony about this question is that when such information is disclosed, chances are the individual does not make the shortlist. If not disclosed before employment it may form the basis of a later dispute or sacking following such appointment.

As an employer who has employed people with previous convictions, I have found these individuals worthy candidates with a strong desire to want to prove themselves deserving of the opportunity given them. I also believe that a legacy founded on employers supporting this group would only serve to reduce re-offending.

Based on this experience, my organisation Chainges Today is leading calls for a new approach to supporting ex-offenders. We believe LAPEL could be a vital tool in rehabilitating and re-settling ex-offenders.

The programme would involve an accreditation that can be displayed by employers showing their social responsibility in supporting the rehabilitation of ex-offenders.

Ex-offenders would be able to qualify for a parallel certification that would demonstrate their commitment to rehabilitation and could be presented to potential employers.

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Time to replace the failed model of rail privatisation with an integrated, publicly accountable structure

27/08/2012, 11:58:06 AM

by Jordan Hall

The unexpected jump in the RPI rate of inflation will be grim news for rail passengers. UK commuters who already pay the highest fares in Europe, face further increases of at least 6% from next January.

The coalition has insisted that above inflation fare rises will end when the costs of the rail industry are brought down. However this argument doesn’t stand up when Network Rail has already slashed running costs over a 5 year period.

Rail reform could be the key to winning over swing voters in the marginal commuter constituencies that Labour will need to win to form a majority in 2015.

Back in June shadow transport secretary, Maria Eagle, welcomed the Rebuilding Rail report by Transport for Quality of Life as a consideration in the policy review.

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Towards a real housing revolution: reforming tenure in the private rented sector

17/08/2012, 06:08:47 PM

In May, Romin Sutherland was one of the winners in the” Top of the Policies” vote at Pragmatic Radicalism’s event on housing, with a proposal to reform assured shorthold tenancies

At a time of economic recession, when social house building is at an all-time low and cheap credit is no longer available for most first time buyers, those groups who in better days would have accessed social housing or benefited from more equitable house price to income ratios will increasingly find themselves locked into a cycle of private renting.  In order to ensure that the private rented sector (PRS) is up to the task of housing a growing and ageing population, I am advocating a reform of the current assured shorthold tenancy (AST), which would increase security of tenure beyond the present 6 month minimum, towards one where most private tenants who pay their rent on time and play by the rules are rewarded with long term sustainable tenancies.

If we were to ensure that the PRS was both an affordable and long term option, there would be fewer reasons for households to hold out for social housing.  This would lower waiting times and allow local authorities to focus their energies on the neediest without the resentment that often comes from those who feel excluded.

Anyone working within the advice or local government sectors will be aware of the dangers inherent within complaining about disrepair and maintenance issues.  Not only is this likely to receive little or no attention from the local environmental health authority, it is also likely to see an unscrupulous landlord claiming possession of the property; the so-called “retaliatory eviction”.

If tenants had increased security of tenure, they could enforce their rights without the fear of being evicted.  As time passed and the worst offenders would realise that they could no longer shirk their responsibilities; they may become more proactive about maintenance and emergency repairs, thus reducing the need for enforcement at all.

As tenants are provided with more of a stake in where they live, I would expect to see an increase in tenants’ rights groups acting as advocates and brokers, and taking the lead on community issues.  As tenant groups grow more powerful, this would increase their collective bargaining power and allow them an opportunity to inform decision making in a democratic way.

It would then be up to the tenants and landlords to decide amongst themselves what they most desired; new windows or cheaper rents.

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State schools need alumni networks every bit as much as private schools

15/08/2012, 02:55:01 PM

In January, Jake Hayman – Director of Future First – won the” Top of the Policies” vote at Pragmatic Radicalism’s event on skills chaired by Michael White of the Guardian, with the idea of creating an alumni network for every state school in the country.

Future First’s vision is that every state school should be supported by a thriving, engaged alumni community that helps each school to do more for its students.

State school alumni are no less likely to want to “give back” than private school alumni. It’s just that state schools haven’t traditionally been so good at asking. Future First is changing that.

Future First’s own research shows that 39% of 16 to 19 year olds who went to a state school do not know anyone in a job they’d like to do. Yet, there’s an untapped pool of over 10 million UK adults who would be willing to return to their old schools to talk about work or higher education. Future First was founded in 2009 to help reconnect former students with their old school’s community as role models for current students.  Successful alumni return to school to raise awareness of the huge range of possibilities for success in the world of work and the key skills needed to achieve it.

We know it works. 75% of students at our in-school alumni events say that hearing from alumni in jobs made them want to work harder in their lessons.

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