Posts Tagged ‘fiscal credibility’

Embracing the contributory principle for public services is how Labour’s offer can be big, bold and affordable

07/04/2014, 08:27:11 AM

by Jonathan Todd

In early January, Uncut reported on Andy Burnham’s “defining vision for health … pooling central government health budgets with local authority social care budgets to offer a joined-up approach to looking after our elderly. It makes eminent sense but carries with it a big uncosted price tag”.

Given that Ed Balls is responsible for making Labour’s sums add up, we speculated that this tag would prevent him from supporting this vision; a view subsequently affirmed by those who speak for the shadow chancellor and Labour leader.

There is a growing clamour for Labour to be big and bold. These calls, though, lack specifics. As was the case when leading thinkers wrote to the Guardian recently. Integrating health and social care, as in Burnham’s vision, is a specific example of bigness and boldness.

Balls’ nervousness about its’ price tag, however, is typical of the concerns of those who wish to “shrink Labour’s offer”. It’s thought that advocates of this strategy wish to minimise the risks that may attach to voting Labour, anticipating that if voting Labour becomes as riskless as possible, the unpopularity of the Tory-led government will secure Labour general election victory. An important source of political risk for Labour being the extent to which Labour creates opportunities for Tories to have justification in saying things like, “Labour policies are an uncosted risk to the government’s long term economic plan.”

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Time for a fully funded plan for jobs and growth

19/02/2013, 10:55:49 AM

Last week Phil McCauley won the Top Of The Policies for economic growth vote at the latest Pragmatic Radicalism event, chaired by Toby Perkins MP the shadow minister for small business.

Financial credibility is the most important facet required for Labour to be trusted at the 2015 general election. We cannot call for tax incentives without saying how they can be paid for otherwise we will not make our case.

With this in mind, I approached the Pragmatic Radicalism event on 12th of February with a view to presenting my suggestions for how this can be achieved without adding to the deficit. Toby Perkins MP was in the Chair and many excellent ideas were presented in the 90 second pitch format with 2 minutes of questions followed by the vote.

I suggest we change the covenant and fiduciary duties on pension trustees to invest 10% of our 2.5tn in pension assets in UK business. At present there is a requirement to invest for the best return irrespective of our national interests or ethics.

I am not merely suggesting the ownership of publicly traded stock, but direct equity investment in Labour’s proposed British investment bank. With over £200 bn to invest we could transform the UK economy within the next parliament. And what’s more, not add to the deficit in the process. This money can be invested for much better returns in housing and infrastructure and UK manufacturing and export. It’s immoral to think that our pension funds are invested in pay-day loan sharks and manufacturers of land mines.

Indeed, the entire pensions industry needs even more reform than the banking system. They are inextricably linked of course and the pension industry needs to align its duties with One Nation principles. It cannot be right that we are investing UK earnings in foreign competitors which destroy our job and growth at home. We have a national interest first.

One Nation investment will focus our finances upon the extraordinary entrepreneurial abilities within our country. It’s time for a fully funded plan for jobs and growth.

Cllr Phil McCauley serves on Gedling Council and is a member of LFIG (Labour Finance and Industry Group) Executive Board, serial and social entrepreneur

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