UNBOUND: Sunday News Review

12/06/2011, 05:51:37 AM

The real meaning of a U-turn

Education secretary Michael Gove has been accused of creating schoolsfor the middle classes after it was revealed that more than a third of his “free schools” will open in the most affluent areas. The government promised to provide all children with “access to the kind of education only the rich can afford” when it launched the policy of allowing parents to set up schools free from local authority control. However, an analysis of the 32 free schools set to open in the next academic year shows 13 are in the most affluent half of England with only two in the 10% most deprived areas and 10 in the 20% most deprived areas, as ranked by the government’s English Indices of Multiple Deprivation, 2010. Less than a fifth of them are opening in the north of England, while half are set to open in the south and southeast. – the Guardian

Michael Gove said they were “accelerating the pace of reform” and the review was needed because of the growth in academies. Councils provide support services such as special needs education for state schools, but not academy schools. Ministers had said the grant to provide such services would be cut by £148m this year and £265m next year. Mr Gove told the BBC some Labour local authorities were “a bit unhappy” about the pace of reform, but “the truth is at the moment we’re actually providing funding to local authorities and to schools for the same service”. The education secretary said they had to make sure the taxpayer “is not paying twice”. Labour says the decision shows changes are being pushed through too quickly. “This is the third time in a year that Michael Gove has had to U-turn under the threat of legal action,” shadow education secretary Andy Burnham said. “And the reason that it keeps happening is that he is railroading his policies through without proper consultation, without listening to parents, to teachers, to local councillors.” – This Day

Where do we go from here?

Before Ed Miliband appointed Ed Balls as Shadow Chancellor, he consulted Tony Blair. Miliband, who has grown close to Blair since becoming leader, wanted to know what the former Prime Minister thought about the move. Would it just lead to a rerun of the Blair-Brown years, with the Chancellor destabilising his boss? Straight after winning the leadership, Miliband made a deliberate choice not to make Balls Shadow Chancellor. He feared that if he did, it would make it harder for him to chart a new course on the economy. But with Alan Johnson, the man Miliband had appointed, resigning because of family matters, the Labour leader had to decide whether to risk open hostilities with Balls by snubbing him again. They have tried to copy the successful Cameron-Osborne relationship by merging their two offices, as the Tory pair did in opposition. But Balls has maintained a room of his own elsewhere in the Palace of Westminster and the two staffs remain far more distinct than those of Cameron and Osborne. – Daily Mail

I am here to defend Ed Balls. The documents published last week are valuable primary sources for contemporary historians, but they do not prove that he was a plotter. There is no email there to Labour MPs frustrated by Blair’s failure to recognise their ability, such as Chris Bryant and Sion Simon, saying: “What about writing a letter to TB to tell him that the game is up?” We know that there was a plot, because Bryant, Simon and 13 others wrote that letter in September 2006, and one minister – Tom Watson – and seven parliamentary private secretaries resigned. We know, too, that Gordon Brown was responsible for it, (a) because he could have stopped it and (b) because it is completely obvious. I have always assumed that Balls knew all about it, and discussed it with Brown and other members of the Stable and Orderly Transition Task Force, but that he did not telephone, text or email possible resigners himself. – John Rentoul, the Independent

They still don’t get it

The row over David Cameron’s ditching of a high-profile female candidate flared up again last night amid claims that a senior Tory official described her pregnancy as a ‘disability’. A furious letter written by Tory MP Jacob Rees-Mogg, complaining about his sister Annunziata’s exclusion from the Conservatives’ list of parliamentary candidates, condemns as ‘contemptible’ a remark allegedly made to Ms Rees-Mogg at a meeting last week. In the letter to 10 Downing Street, Mr Rees-Mogg says that the official, Giles Inglis-Jones, told Annunziata – who was eight months pregnant at the time of her crucial selection meeting in February – that ‘he knows all about pregnancy as he has five children’. Mr Rees-Mogg wrote: ‘From my own experience a man’s role and knowledge of pregnancy is somewhat different from a woman’s’, before adding lethally: ‘It was also suggested that Annunziata could have ticked the box for “disability”, but I feel most reasonable people would call that a contemptible suggestion. – Daily Mail

Clegg boasts as Tories grimace

Nick Clegg last night boasted that he had forced David Cameron to ditch plans to bring more ­private firms into the NHS. The Lib-Dem leader’s allies claimed victory saying the PM had performed a U-turn on key parts of his unpopular revamp of the health service after their protests. Mr Clegg’s supporters said Mr Cameron had agreed to rule out any competition in the NHS “based on price” after critics warned it would pave the way for the ­backdoor privatisation of the NHS. But the boast will infuriate Tory MPs and further humiliate Health Secretary Andrew Lansley. – Daily Mirror

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HOME: The week Uncut

11/06/2011, 02:42:29 PM

In case you missed them, these were the best read pieces on Uncut in the last seven days:

Dan Hodges says it’s time for Labour’s flat earthers to get real

Matt Cavanagh on Cameron’s lies and betrayal on knife crime

Michael Dugher says the NHS changes tell us all we need to know about Tories

Peter Watt looks at Labour’s funding challenge

John Denham says Labour needs relentless focus on private sector growth

Anthony Painter reviews the Master Switch by Tim Wu

Atul Hatwal says our message on the economy isn’t cutting through

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UNBOUND: Saturday News Review

11/06/2011, 06:56:57 AM

More Balls papers are leaked

A confidential document presented to the Cabinet in January 2006 asks: “We’ve spent all this money, but what have we got for it?” It warns that the efficiency of the public sector needed to improve rapidly and insisted that “spending growth will slow”. The document drafted by civil servants also says that “ineffective spending” must be “closed down”. However, Gordon Brown discarded the advice and embarked on a £90 billion increase in spending when he became prime minister. The expenditure meant that the economy was left facing a record deficit as the effects of the recession were felt. The document is among 19 papers disclosed today by The Daily Telegraph that were obtained from the personal files of Mr Balls, the shadow Chancellor. They follow the divulgence yesterday of dozens of documents detailing Mr Balls’s central role in a plot to topple Tony Blair. The Coalition seized on the disclosures as evidence that Mr Brown’s “reckless” decisions over public spending left the country in a vulnerable position when the economic downturn hit Britain. A Conservative source said: “This document shows the reckless approach of Brown and Balls which left Britain dangerously exposed to the economic crisis.” – Daily Telegraph

The rivalry between Tony Blair and Gordon Brown is back like a sleeping monster that awakes every few months to wreak destructive havoc on the party they led. The latest re-awakening takes the form of leaked memos that once belonged to Ed Balls and are now published in The Daily Telegraph. The monstrous activity is to do with the present and not the past. This is an exercise aimed at damaging Balls now, rather than triggering a further historic seminar on Blair and Brown, the most familiar theme in British politics. And yet the documents are not incriminating. Indeed, the context in which they were written shows why it would be more of a shock if such memos had not been composed as Labour’s long internal battle reached a dénouement. – Steve Richards, the Independent

Another leak, why now?

David Miliband planned to use his first speech as Labour leader to warn that the party’s greatest danger lay in underestimating the challenge of the deficit – and that it was imperative to regain the public’s trust on the economy. The Guardian has obtained a final draft of the speech he planned to deliver if he had won the Labour leadership election last September, instead of losing to his brother Ed. The crestfallen former foreign secretary is said to have recited the speech to his wife in the back of his car on the drive home from party conference. Its disclosure now caps a difficult week for Ed Miliband who has been battling criticism of his leadership and the embarassing leak of emails belonging to the shadow chancellor, Ed Balls. The leadership speech that wasn’t shows David Miliband intended to announce that Alistair Darling, the former chancellor, had agreed to head an all-party commission to draft a framework of rules on public spending and deficits designed to restore lost trust in Labour fiscal discipline. – the Guardian

Tonight’s Guardian scoop revealing that the speech that David Miliband would have given if he had been elected leader makes this one of the most difficult—and leaky—weeks for Labour since its election defeat. The line in the speech that will cause the most trouble for Ed Miliband is that David Miliband intended to create a commission on the deficit chaired by Alistair Darling and charged with creating a new set of fiscal rules, an admission that Labour got it wrong on the deficit which Ed Miliband has refused to give. This speech emerging just a day after Ed Ball’s private papers about the plot to force Tony Blair to stand down came into the public domain will create suspicions in Labour circles that there is a deliberate effort underway to undermine Ed Miliband. One striking detail from the piece is that David Miliband delivered the speech to his wife in the car as they drove away from the conference. – the Spectator

Cameron’s first policy success

Larry the Downing Street cat has made his first kills since being brought in to deal with rats at Number 10.Revealing the kills, Prime Minister David Cameron said that the tabby tom hasn’t got it quite right yet – a criticism some may be levelling at Mr Cameron’s coalition government – as he’s been catching mice instead of the more muscular rats he was brought in to deal with. Mr Cameron revealed that the historic London townhouse is infested with mice, and that he has even spotted one in the flat above 11 Downing Street that he occupies with wife, Samantha, and their children. ‘I’m a big Larry fan,’ the PM told ITV1’s This Morning. ‘We have got big mouse infestation in Downing Street and Larry has caught some mice. I actually took a picture of one in my flat on my mobile phone, because it was looking at me.’ Larry was recruited from Battersea Dogs and Cats Home in south London in February to kill rats after several sightings of the vermin outside the Prime Minister’s official residence. – Daily Mail

Why we elect Labour Councils

The Labour council in Sheffield is to reverse £2m of spending cuts made by the Liberal Democrats who ran the authority until May’s elections. Labour said its revised budget would restore funding to key areas including apprenticeships, adult social care and more Police Community Support Officers. Labour said the £2m “will be met from a mix of reducing costs and making efficiencies, such as rationalising the council’s transport fleet, and savings in funding streams”. Council leader Julie Dore said: “We’ve decided that the authority had to restore funding to areas that matter to local people and give us the ability to deliver the right kind of services in the right way with the support of local people. I am pleased to say the council has now restored funding to these areas.” – BBC Sheffield & South Yorkshire

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UNCUT: Ed Miliband is safe as houses, for now

10/06/2011, 02:00:35 PM

by Dan Hodges

True story. Last party conference before Iain Duncan-Smith is sent to sleep with the fishes. His senior aide is approached by a delegation of Tory grandees. “It’s over”, he’s told. “This is Iain’s last act as leader. You need to help us to help him. We are going to do this properly”.

The advisor is told to station thirty loyal supporters at strategic points around the conference hall. They are handed a copy of key passages from his speech. As soon as the passages are delivered they are to rise and start applauding. The conference will rise with them. The crown will be set down. But with dignity.

Except there’s a problem. Since the speech was distributed there have been amends. Sections have been adapted. Transposed. Duncan Smith begins his valedictory address. Within the first 15 seconds the first clap line appears. The acolytes rise. In moments the hall is on its feet.

The lost leader moves on to a new passage. This was supposed to be seven pages in. Now it is the second paragraph. Again, the cheerleaders rise. Again, so does the entire conference. The quiet man is turning up the volume.

He begins the third passage. It again includes one of the clap lines. The thirty are on their feet. Conference is on their feet. By now the Tory faithful are caught between a quandary and a frenzy. They are applauding every passage of note. How can they stop?

Iain Duncan-Smith received more than 20 standing ovations. Two weeks later he was history. The  moral? When the Tories move against a leader, they move. They do it properly, even to the point of ensuring that their victim is allowed an open casket.

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UNCUT: Labour, the natural party of opposition

10/06/2011, 12:00:26 PM

by Dave Talbot

Right on cue, exactly six months into David Cameron’s premiership, the ancient British roar of “Tory scum” reverberated through Whitehall’s hallowed halls. In honour of the coalition’s deal on higher tuition fees, protesters spilled through Westminster’s streets to rediscover their hatred of the Tories once more. After almost 13 years of opposition and apathy, the Tories could once again hold their heads high – hated again. It was back to politics as usual. Labour prime ministers for the past 13 years were anomalies, you understand, and not to be repeated. No sir, the Conservatives are back.

That is a charicature, but the masked point is a serious one. The Conservatives are quite suited to power. Indeed, from 1911 to the present day, the Conservatives managed to keep Labour out of office for all but 33 of those years. Never underestimate the Conservatives and their desire for power – nor their capacity to acquire and hold it. They believe in their divine right to rule. When Cameron, Osborne and Co. state that grand old maxim of British politics -that the Conservatives are here to clear up after the misfortune of Labour government – they truly mean it. They unapologetically look at politics through the prism of power.

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UNCUT: Why Labour is not being heard on the economy

10/06/2011, 08:21:39 AM

by Atul Hatwal

Labour did a good thing last week.

On Sunday, Ed Balls re-launched his proposals for a £2bn tax on bankers’ bonuses to fund action on youth unemployment and a new house building programme.

Politically, the policy draws exactly the right dividing lines. Greedy bankers versus young unemployed and aspiring home-owners.

In economic terms, it focuses funds just where they are needed, helping reduce the costs of economic failure and getting the housing market moving again.

And by putting down amendments to the finance bill, Balls will ensure a parliamentary vote on the plan, giving the opportunity to pressure individual Tory and Lib Dem MPs and expose whose side they are really on.

The initiative has all the elements of a policy which could cut through the white noise of political debate to resonate with the public.

But it hasn’t.

Not that there was anything wrong with the proposals. Or the media coverage. The public just don’t seem to be listening, much as when the proposals were originally launched in March.

In his Q&A session at the GMB conference on Monday, rather than being on the front foot, Balls had to explain why Labour wasn’t doing better in the polls.

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UNCUT: Osborne also needs a political Plan B

09/06/2011, 12:00:48 PM

by Kevin Meagher

“When the facts change, I change my mind” remarked the great John Maynard Keynes. Easy for economists. As George Bernard Shaw noted, if you laid them all end to end they still could not reach a conclusion.

Chancellors, on the other hand, cannot readily change their minds. They have to come to a conclusion; and then they have to stick to it. Their personal judgement is indelibly stamped on the government’s macroeconomic policy. They are locked into their strategies and directions of travel. Any deviation risks a fatal leaching of trust and credibility.

Of course, nothing changes with economic policy until it all changes. Which begs the question: does George Osborne have a Plan B in case the economy runs out of puff?

If he does, he’s not telling. Hardly surprising really; chancellors cannot be “a little bit pregnant”. It’s either one plan or the other.

Either way, Osborne is no slouch. He knows the economic outlook is precarious. And whatever else he is, the chancellor is a politician first and foremost. Economics – the dismal science, according to Carlyle – is a second order priority for him. He knows that the ice beneath his feet is thinning and he does not intend to sink.

If growth falters and requires a revision in policy, Osborne cannot afford for it to be on his watch. Although it would kill him to do so, he should heed Gordon Brown’s warning: there are two sorts of chancellor: those who fail and those who get out in time.

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UNCUT: We need to diversify our funding base

09/06/2011, 07:00:50 AM

by Peter Watt

We recently saw the publication by the electoral commission of the list of donations by all political parties in the first quarter of 2011 (Q1). The Labour party received £2,882,765 of which £2,507,372 was from trade unions. This means that almost 90% of Labour’s donations in Q1 came from affiliated trade unions. Now whichever way you cut that, it cannot be a good thing. There are two aspects that are specifically worthy of scrutiny. One is political and the other is financial.

Politically, it is a mixed picture. We share history, and over the years the trade unions have proved that they are more than fair weather friends. The affiliated trade unions are members of the party in their own right. Their membership (affiliation) fees mean that trade union members are in theory a constituency of millions of working people with a stake in the party. These members should act as a constant reminder of life in the real world. And, of course, their organisations and ours are enshrined in our constitution with ties at every level of the party.

Over the years, our opponents have unfairly characterised the relationship as one of master and servant, with Labour’s union paymasters demanding and getting their policies. The reality has been somewhat different. In fact, as one union general secretary said to me recently, “if that really was the case then the pound for pound return has been pretty fucking poor”. No. Affiliated trade unions are members of the party because they continue to believe that a Labour government will, on balance, always be better for their members than the alternative.

But we need to be honest. The relationship between the party and the unions has not been right for some time. It isn’t really a direct relationship between the party and millions of trade union members. The relationship is mediated by a small group of senior figures. While for many in the party, the trade union link is just a source of patronage and funds when they are seeking selection. Which comfortable status quo means that millions of trade union members are mainly represented by the millions of votes cast on their behalf by trade union general secretaries at party conference.

With 90% of all donations now coming from trade unions, it is simply not credible to claim that they are not in a stronger position to demand greater compromise on party reform and on policy. If they pushed hard enough, it would be all but impossible for Ed to refuse. And if Ed wanted to do something that they really they didn’t want him to do then could he just ignore them? No.

Meanwhile, our opponents have done a very good job in the minds of the public of painting us as a party of the trade union vested interest. And they have linked this to notions of political extremism and economic excess. Whether this is fair or not is one thing. Another is why are we not capable of attracting a broader base of financial support in the first place? Why are successful companies and individuals not beginning to support us again? Because while it is great news that 70,000 new members have joined leading to an extra £1 million or so into the coffers, that is simply not enough to arrest the long term decline in our income. Particularly when you think that the party costs roughly £25 million per year to run.

Which leads to the second issue worthy of scrutiny – the financial implications of the party receiving 90% of its donations from the trade unions. The first thing to say is that it is simply not sustainable.

Remember that we are committed to paying off £2 million a year in debt before we pay anything else. Of the £2.8 million received between January and March this year, £1 million came from Unite, £500,000 from GMB and £400,000 from Unison. In other words, it would only take a decision by one of their conferences to withhold or reduce funds and the impact would be pretty serious. Any organisation with the levels of debt that the party has, and that is so reliant on a single source of funding, can only be described as vulnerable.

Second, the overall reduction in the amount we have available to spend each year because of our narrow funding base is being masked. It is being masked by the tax payers’ money that we now receive because we are in opposition. A combination of Short, Cranborne and Scottish Parliamentary money took our income from £2.9 million to £4.6 million in the first quarter of this year, meaning that we will be in receipt of the best part of £7 million this year from the taxpayer. So while our income this year is likely to be about £23 – £24 million in cash terms, without the taxpayer we would be looking at income of about £17 million. In other words, we can barely afford to fight an election and we almost certainly can’t afford to win one.

Finally, and most seriously, there is the threat of party funding reform. Quite simply, if the government decides to implement its proposed cap of £50,000 on all donations to political parties, then the Labour party is in dire trouble. The money received from trade unions would go from £8 – £10 million per year to a maximum of £750,000. And yet there is every sign that that is exactly what the government is going to do. And I’m not sure that another “defend the link” campaign is going to be enough on this occasion.

So all in all, 90% of donations to the party coming from the trade unions exposes some pretty serious political and financial weaknesses that we need take seriously. If it’s not happening already, I hope that we are talking to the other parties about agreeing some sort of consensus on party funding reform. I hope that we are looking at why we don’t appear to have been able to diversify our income and attract back large numbers of successful wealthy individuals and companies. And I hope that we are looking at how we can further increase the amount that our members give.

If not, then we may well have a bit more to worry about than Refounding Labour and poor attendance at local party meetings.

Peter Watt is a GMB member and former general secretary of the Labour party.

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UNBOUND: Thursday News Review

09/06/2011, 06:46:46 AM

U-turn after U-turn

Dithering David Cameron was ridiculed yesterday after performing yet another spectacular backflip over Government policy. He ordered a rethink on controversial plans to halve jail sentences for violent criminals – shelving proposals put forward by Justice Secretary Ken Clarke. It came just two days he was forced into an embarrassing climbdown on sweeping health reforms. And it showed that, unlike one of his predecessors, Margaret Thatcher, this Tory PM definitely IS for turning. The hapless leader’s latest about-face is seen as a humiliating blow for Mr Clarke. – Daily Mirror

Justice Secretary Kenneth Clarke faced embarrassment yesterday after David Cameron vetoed his proposal to cut by up to half the prison terms for rapists and other violent offenders who make early guilty pleas. It was the Prime Minister’s second major policy U-turn in less than 24 hours following his concessions on NHS reform. Mr Clarke’s plans to cut up to 50 per cent from sentences of offenders who plead guilty early (an increase from 33 per cent) faced savage criticism from Tory right-wingers. The Independent understands that ministers are considering a two-tier scheme, under which a maximum 33 per cent discount will be retained for the most severe crimes such as rape, assault and armed robbery but 50 per cent could be introduced for less serious offences. The latter option is being backed by Mr Clarke and Liberal Democrat ministers, while many Tories are pressing for the 50 per cent proposal to be scrapped outright. – the Independent

Justice secretary Kenneth Clarke has been forced by Number 10 to abandon a plan to give rapists, and other serious offenders, a 50% sentence discount in return for early guilty pleas, but he is fiercely resisting Treasury demands to make his justice ministry bear the multi-million pound cost. Clarke had proposed to increase the discount from 33% to 50% for all offenders, so saving £130m from a departmental budget being slashed by a quarter. Following talks with David Cameron over the past 48 hours, Clarke accepted rapists will now be excluded, but he is battling to retain the extra discount for less serious offences, a policy that would free up badly needed prison places. In difficult talks yesterday with the Treasury chief secretary, Danny Alexander, Clarke pointed out he had last year won Treasury agreement that if the government’s so-called rehabilitation revolution did not deliver a lower jail population, then the Treasury would bear the costs from the reserve. – the Guardian

Another U-turn on pensions possible

Senior Liberal Democrats are understood to be determined to reverse the plans. Jenny Willott, the Lib Dem backbench spokeswoman on pensions, has also called for the proposals to be reconsidered. But the Treasury is likely to fiercely resist attempts to unpick the state pension age changes, which will save the taxpayer billions in the years ahead, unless they can be made to pay for themselves. Former Lib Dem party leader Charles Kennedy, John Hemming and Annette Brooke are among those who have opposed the changes. While Tory MPs Peter Bottomley, James Gray and Chloe Smith have asked for the rules to be amended. She told the Commons: ‘Women currently in their late 50s are getting a very bad deal. No men will see their state pension age increase by more than a year but half a million women will.’ – Daily Mail

Tory and Lib Dem rebels sided with Labour in raising concerns about the impact a decision to raise it to 66 by 2018 will have on around 300,000 women born in 1953 and 1954. They have been given just seven years notice. David Cameron was challenged over it by Lib Dem Annette Brook at PM’s Questions. She urged him to review it, saying: “The women affected will be asked to work up to two extra years over and above what they had planned for, whereas men will be asked to work only an extra year. The discrimination concerns me.” Mr Cameron said he “understood” but argued pensioners would be better off in increased pension payments agreed by the Coalition. – Daily Express

Politicians pay tribute to Prince Philip at 90

Taking time out after Prime Minister’s Questions to propose a “humble address” to be presented to the Queen to mark the occasion, Mr Cameron described the Duke as “a source of rock solid strength” during his record-breaking 59 years as consort. Ed Miliband, the leader of the Opposition, was equally effusive, saying the Duke “embodies qualities of duty, loyalty public service and good humour – great British qualities”. But it was the two leaders’ frequent references to the Duke’s famed sense of mischief that drew the biggest response from the House. Mr Cameron promised to keep his speech short, quoting the Duke’s observation that “the mind cannot absorb what the backside cannot endure”, and shared his favourite blunt comment by the Duke, when he was once asked how his flight had been. “Have you ever been on a plane?” the Duke had told a dignitary. “Well, you know how it goes up in the air and comes down again – it was like that.” – Daily Telegraph

Its up to you Carwyn

Labour leader Ed Miliband has said that policies taken forward by Carwyn Jones’ Welsh Government would shape his party’s next UK manifesto – and he gave the First Minister a free hand to negotiate coalition deals with either Plaid Cymru or the Liberal Democrats. Speaking in a London press conference yesterday, Mr Miliband made it clear he would not oppose Assembly link-ups with Plaid or the Lib Dems if the Welsh Labour leader considered these necessary. He said: “These are decisions for him. He’s an excellent First Minister. “He’s done a brilliant job since he’s taken over from Rhodri Morgan. Those kind of decisions are for him.” – Western Mail

Encouraging for Labour, but worrying figures for Ed

Ed Miliband and Nick Clegg are struggling to improve their image with voters while David Cameron remains almost twice as popular as his two rival leaders.  After a mini-revival early this year, the Liberal Democrats are back at the 11 per cent rating to which they slumped last year after their tuition fees U-turn. Labour (40 per cent) enjoys a four-point advantage over the Tories (36 per cent). Mr Cameron, dubbed “Teflon Man” by Tory aides, appears to float above the political fray. Mr Clegg seems to be the fall guy for ministers’ unpopular decisions while Mr Miliband makes little impact on voters. Mr Clegg’s personal ratings have hit a new low. ComRes found only 21 per cent believe he is a good leader. Professor Curtice said: “There must now be question marks about Clegg’s ability to recover from his unpopularity, which is beginning to be on a par with that endured by Gordon Brown. Leaders rarely recover popularity once most of the public have decided to write them off.” There is little either for Mr Miliband to celebrate. ComRes found only 22 per cent deem him a good leader, compared with Mr Cameron’s 39 per cent. Ominously for Labour, none of the last three opposition leaders with a negative satisfaction rating after eight months in the post – William Hague, Iain Duncan Smith and Lord Howard – went on to become prime minister. – the Independent

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UNCUT: Labour needs relentless focus on private sector growth

08/06/2011, 07:00:36 AM

by John Denham

Over the last few months, Ed Miliband has set out three key challenges facing the country:

The problems faced by the “squeezed middle”, on low and middle incomes, who feel that the rewards of working hard are too little compared to those whose stellar salaries are not matched by results.

The threat to the British promise; our expectation that our children will enjoy better lives than we have done, because we cannot now pay our way in the world and create opportunities for them.

And the need to strengthen our communities, recognising that in myriad ways, not least in the way workplaces and working lives have changed, our confidence in a society of strong social institutions is being eroded.

We cannot deliver for the squeezed middle, revive the British promise or deliver strong communities without building an economy which looks and feels very different, with more opportunities to get better jobs.

We have developed an economy that is dangerously dependent on too many low skilled jobs. We cannot promise a better future for the next generation unless we can pay our way and create the skilled, well paid jobs which make the most of, and properly reward, their skills and abilities.

In building a different and stronger economy, the growth and jobs we need will be private sector growth and private sector jobs. The next Labour government will need to have a relentless, single-minded focus in creating the conditions for private sector growth. That means creating the conditions in which companies compete within fair markets and make profit by being the best in those competitive markets.

The Tory-Lib Dem notion is that support for market-led growth means that the ideal state is one in which government does as little as possible. In truth, markets are inevitably and unavoidably shaped by what governments do, and by what government doesn’t do.

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