Uncut « Labour Uncut

Reverse the child benefit cut and the politics of the 50p rate become irrelevant

29/01/2014, 12:46:12 PM

by Kevin Meagher

Of all Gordon Brown’s decisions – both good and bad – the most questionable, perhaps the oddest, and certainly the most irritating, was to award a peerage to Digby Jones and invite him into his government as trade minister.

What on earth was Gordon thinking? Jones – a corporate lawyer and former head of the CBI – is also a blowhard’s blowhard and has snapped at the hand that once fed him ever since. He can be relied upon as a rent-a-quote Labour basher these days and was at it again, jowls a-quivering, at Ed Balls’ pledge to restore the 50p top tax band for those earning over £150,000 a year. Reaching new heights of self-parody, he claimed:

“In the last few months we’ve got, oh, ‘if it creates wealth let’s kick it’ – really go for energy companies, really go for house-building, bankers, this time it’s going to be the high-earners.

“I am amazed he’s going to keep it at 50[p]. I’d expect if he [Balls] becomes Chancellor of the Exchequer we could be looking at 55, 60 on the excuse he gave today.”

But the outriders for the wealthy like Diggers can’t have it both ways. If raising the 45p rate to 50p is an inefficient way of raising revenue, the contention of august institutions like the Institute for Fiscal Studies, then the well-heeled clearly aren’t losing out very much, so it can hardly be catastrophic.

The economics of making those with the broadest shoulders pay the most to reduce the deficit, Ed Miliband’s phrase to describe the move, is sound enough, but the politics of tax rates are, of course, tortuous stuff for Labour.

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Growth has returned, but Labour can still win on the economy if it can answer these five questions

28/01/2014, 10:39:00 AM

by Jonathan Todd

The return to solid GDP growth (at least compared to recent years) was always going to present Labour with a challenge. However, notwithstanding the immediate favourable headlines that the government has garnered from today’s figures, the present economic debate still contains numerous positives for Labour.

First, the 50p tax – enjoying 60% support – is popular. Second, the Balls fiscal consolidation plan is also. Polling for Labour Uncut prior to Labour party conference explored how voters would respond to Labour promising to keep most of the present government’s spending plans but to borrow more for public works such as building homes. Balls’ position now amounts to this and our analysis at conference revealed its appeal. Third, left popularism – otherwise known as bashing the banks and big energy – is, by definition, popular.

Inevitably, growth tips the balance towards the government on the economy, but if the public back Labour on the answer to the following five questions, the party can still win the debate. If, however, the public back the Tories, then Labour will need some new responses, and fast.

Balls v Big Business? Who will win?

It sounds like something the Ricky Gervais character Derek might ask but it’s a variation on a Huffington Post headline. The Post story noted coverage in the Financial Times (‘Businesses blast 50p tax plans by Labour’) and the Daily Telegraph (‘Bosses blitz Labour’s 50p tax rate’).

‘Big Business backs New Labour’ now seems a less likely story. Yet it was as recently as 19 December last year that Balls was quoted in the Financial Times as describing financial services as: “A massive advantage for Britain. Don’t throw the baby out with the bathwater.” Having served with distinction in the prawn cocktail offensive, we might wonder whether Balls’ heart is really in battling big business.

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Like Cameron,Enda Kenny hopes economic adversity can translate into electoral credibility

26/01/2014, 07:00:44 AM

by Kevin Meagher

There was a glimpse on show at the World Economic Forum in Davos over the weekend of how David Cameron intends to fight next year’s general election. It wasn’t so much to do with anything Cameron was announcing, it was more what Enda Kenny, the Irish Taoiseach was saying.

Batting aside rumours that he is set to replace Jose Manuel Barroso as EU Commission President or, indeed, Herman Van Rompuy as President of the European Council later this year, Kenny was instead eager to confirm he would be leading his Fine Gael party into the next Irish general election in 2016, to continue the task of “fixing” Ireland’s economy. Speaking to Bloomberg television, Kenny said:

“The mandate given to me [in 2011] was to take our country out of an unholy economic mess that we had inherited and sort out the public finances and get our country working.

“I’m very happy that our people have moved to a point where we had a clear plan and strategy to exit the bailout. We now have a strategy to follow through on that with the publication of a medium-term economic strategy.”

He added: “That’s my mandate. That’s the trust the people placed in us, that’s what we’ve got to do.”

The message is obvious:-”We took the right decisions, hard decisions, and now things are getting better. Give us credit for that and give me another five years.” Wary of predicting those infamous ‘green shoots of recovery’ too early, it could nevertheless be Cameron and Osborne speaking after another couple of quarters of UK growth.

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Westmorland and Lonsdale needs Labour as much as anywhere else

23/01/2014, 04:44:44 PM

by Jonathan Todd

Labour has invariably been in third place in Westmorland and Lonsdale, as Dr David Clark, Lord Clark of Windermere’s vivid history of the local Labour movement accounts. As Labour’s candidate in the constituency in 2010, however, I know that Westmorland’s Labour activists are as passionate as any elsewhere in the country.

They can see rural poverty around them. Which grinds as its urban cousin does. They can see locals priced out of villages dominated by second homes. Which is inequality as visceral as the contrast between the Square Mile and the poorest parts of London. They can see a country struggling to recover from the ruin reaped by the inhabitants of the Square Mile and a world scarred by injustice. And they know that only a Labour government can best respond to these national and global challenges.

As a party we cannot ask members in seats like Westmorland and Lonsdale to look upon the inequities of their neighbours and to hunger for a Labour government capable of alleviating them without then providing them the support to make a difference in their neighbourhoods and communities.

Pragmatists might point these activists to near-by parliamentary seats – Barrow, Lancaster and Morecambe – that Labour is closer to holding or winning. And I’m confident that John Woodcock, Cat Smith and Amina Lone will provide a warm welcome to helpers from Kendal, Ambleside and elsewhere in South Lakeland.

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In defence of political fixing

23/01/2014, 07:00:27 AM

by Kevin Meagher

If the glamorous world of political power is an aphrodisiac, the grubby underbelly of politics is probably something like a retching motion. That’s to say, it isn’t pretty, as a cast load of dubious characters are coughed forward into our midst. A few crooks. Quite a few oddballs. Plenty of lechers. Mostly, they are men (although there are a few are women too). They are all part and parcel of our political life.

So nothing about the allegations swirling around Lib Dem peer Lord Rennard is particularly unusual or new and no-one, in any party, should react too smugly as this sorry state of affairs unfurls.

And I say that from the start, allegations. I don’t know what Rennard did or didn’t do. Neither does the police, it seems, who found there was no case to answer after investigating complaints from several women Lib Dem activists about unwanted moves they say he made on them.

Neither, did the party’s internal investigation, conducted by Alistair Webster QC, which has triggered this latest crisis. That’s because while he concurs with the earlier police investigation, Webster concludes, in a frankly brilliant circumlocution, that Rennard should still apologise:

“I viewed Lord Rennard, from the weight of the evidence submitted, as being someone who would wish to apologise to those whom he had made to feel uncomfortable, even if he had done so inadvertently.”

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Letter from Wales: Nothing is independent in the Crachach run Welsh media

22/01/2014, 09:58:54 PM

by Julian Ruck

The Welsh-speaking Crachach (or Taffia depending on your point of view) are up to their usual old tricks again. You know, keeping it in the family, jobs for this life and the next and not what you know but who you know.

The Silk commission is looking into the devolution settlement and the powers of the National Assembly of Wales. Also on the Commission’s radar is the much debated control of the Welsh media.

Not long ago, I interviewed one Lee Waters, director of the ‘independent’ Welsh think tank, the Institute of Welsh Affairs. The purpose of the interview was to explore the abject lack of diversity and indeed equal opportunity that appears to exist in Welsh governing institutions. There was also the question relating to whether or not the push for Welsh language nationalism was having a negative impact on the Welsh economy.

Mr Waters immediately accepted that there was a problem here ie that Welsh institutions are run mainly by white, Welsh speaking, middle class and Welsh educated personnel. However, he followed this up with the more facile excuse that “Wales has the same problems as all other Western societies.”

So then, one can conclude that in his view, a white Dai Berlosconi or a white Dai Chirac is fine because everyone else is at it? The nasty Tories also came in for some passionate opprobrium from the independently minded Waters too. Quite obviously a man who prides himself on apolitical inclination if ever there was one!

A simple case of denial perhaps? But then the Welsh Crachach are resilient if nothing else

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Labour needs to stop fiddling and get on with the big stuff

22/01/2014, 07:49:35 AM

by Rob Marchant

The opportunity for Labour to score party points against the Tories on the economy is clearly diminishing. While that is difficult rather than disastrous, our reaction is important.

Last week, FT’s Janan Ganesh tweeted a characteristically shrewd observation: influenced by campaign groups, Labour seemed to have furthermore abdicated responsibility for forming a competing macro policy. It had therefore embarked on a series of eye-catching micro initiatives with social aims – intervening in energy markets, stopping payday loans and so on – but had gone quiet on the economy at large.

While many of these measures are fully respectable and positive in themselves, they are hardly a substitute for a robust macro policy, clearly distinguished from the coalition’s. And the obvious danger is that while the coalition looks strategic, we look, to put it bluntly, like tinkerers rather than players.

The culmination of all this micro thinking came last Friday, with Miliband’s statement on banking reform.

Now, banking reform is important and, on the face of it, an ideal place for Labour to make a difference. Why? Because we know (i) that it needs reform, and (ii) that the Tories will soft-pedal on anything which affects City friends and donors – that’s the reality. So far, so good.

But this noble end doesn’t mean that this is the right means. Because, here’s the thing: Labour has straight-facedly announced that the centrepiece of its solution is to create not one, but two new high street banks.

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Shadow cabinet league: Khan still top as Benn barges into top ten

21/01/2014, 02:42:44 PM

by Alan Smithee

Early on in a season, a league table often struggles to reflect the true strength of teams. Sometimes teams remain high up in a table due to a superficial good start. However, one cannot tell truly until after a good handful of games have passed. The same is true for Uncut’s shadow cabinet table. However, with December’s results’ in, there are still some useful hints at work rate and the tactics used.

Within the top five, Sadiq Khan remains at number one, fueled by large numbers of written questions and heavily reactive media activity. His impressive performance has continued to cover a broad policy spectrum and, even if it does not pay major immediate political dues, will leave Khan well set up to manage and modify the penal system. The same formula is used by Chris Leslie, Caroline Flint and Chuka Umunna. Flint has continued to use the energy price freeze pledge and rising bills to hammer the government on the cost of living. Andy Burnham however has focussed his guns in the media sphere working reactive and proactive to attack the failings of government NHS reforms.

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Miliband’s reckoning must also reassure

20/01/2014, 02:24:17 PM

by Jonathan Todd

“The next election”, according to an answer that Ed Miliband gave on Friday, “will be a choice between a big reckoning and steady as she goes.” There wasn’t much that Mliband understated in setting out how Britain would change with him in charge. But this was one thing. There is no steady as she goes option.

George Osborne can only make his sums add up with a much reduced role for government outside of ringfenced areas and/or further cuts for the disabled, children and the working poor. That’s not so much steady as she goes as once more into the breach, as the ship heads towards the rapids. Osborne gave the impression in 2011 that the electorate had sacrificed all that he’d ask of them. Now he asks them to keep sacrificing till 2018/19.

His ‘baseline theory’ of politics encourages this strategy. This forces Labour to choose: Match my baseline and all the tough choices that entails or don’t and accept that the full force of HM Treasury will be thrown at undermining Labour’s credibility.

Miliband’s speech was his response to Osborne’s gaunlet. Which he picked up, tossed aside and dismissed as redundant. Deficit reduction alone can’t fix our economy, he told us. Nor alone can it make hard work pay or be a vision for the country, he continued.

Osborne tried to force Miliband to talk about the size of government but he insisted on telling business what to do. His refusal to play Osborne’s game may have had something of Jarvis Cocker’s snapping of a pencil about it (See two minutes in to this). There is, however, nothing scrawny about Miliband’s attitude to business. He is as muscular in articulating what he will require of them as Osborne is unrelenting in shrinking the state. It’s not a nudge – once a buzzword in David Cameron’s circle – that Miliband wants to give business but an unavoidable prod.

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Osborne’s tank tries to churn up Ed’s lawn

17/01/2014, 08:24:49 AM

by Kevin Meagher

He would bristle at the comparison, but George Osborne’s raid on Labour’s turf – promising to support an above inflation rise in the minimum wage – is straight out of the Gordon Brown book of political tradecraft.

The two most political bean-counters British politics has ever produced are both fans of ‘weaponising’ policy to suit their ends; laying clever traps for their enemies to fall into and using the Treasury’s tanks to churn up the opposition’s lawn.

“I want to make sure we are all in it together” said Osborne yesterday, to a chorus of generally disbelieving gasps. The minimum wage should increase “because the British economy can now afford that.”

The Tories used to be “on the wrong side of the argument” about the merits of the minimum wage, but that was all a misunderstanding. Now it’s a shiny, happy, modern party “in touch with the country,” he added.

ITV’s Chris Ship said the Lib Dems were “spitting tacks” as Osborne had veered over the coalition’s central reservation, cutting them out of the equation on a major good news story.

“He’s effectively endorsing the advice I gave to the Low Pay Commission” said Vince Cable on Newsnight last night, trying to sound nonchalant at the very effrontery of it all. Labour people too were miffed at Osborne’s naked opportunism. How dare a Tory Chancellor say anything positive about the minimum wage!

In a funny sort of way, Ed Miliband should take all this as a compliment. Imitation is the sincerest form of flattery. That Osborne felt compelled to try and spike today’s big speech on the economy and banking reform shows the Tories are irked about headlines proclaiming “I can save the middle class”.

So in the best traditions of “you send one of my guys to the hospital, I’ll send one of yours to the morgue” Osborne’s instinct is to wield his home-made shiv. It’s not pretty, but it is effective.

Gordon would approve.

Kevin Meagher is associate editor of Labour Uncut

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