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David Cameron will fully nationalise RBS

03/07/2012, 01:36:39 PM

by Jonathan Todd

We didn’t think the reputation of the financial sector could sink any lower. The Libor-fixing scandal means it has. We may be less surprised that the government’s deficit reduction strategy continues to hurt and not work. When government borrowing jumped to £17.9bn in May, up from £15.2bn in the same month last year, this was confirmed.

These two factors make the impossible seem possible: David Cameron will seize the initiative by an audacious full nationalisation of RBS and its reconstitution as a national infrastructure bank.

The logic that leads to this implausible conclusion involves three stages to this parliament and an evolving contest for national leadership.

Stage one: Two parties together in the national interest.

This must now seem a golden age from the perspective of Downing Street. The political law of this bygone time was that Labour had made the economic mess and Cameron’s government was taking the tough actions needed, with an expectation that the economy would recover well before the general election, which Cameron would win on the back of this success.

Attempts to have Labour adjust to a reality in which fiscal credibility has an increased political salience – such as In the Black Labour – retain an important relevance to our party. But times have moved on. It is ever more obvious that the government’s tight fiscal policy isn’t working.

As the government goes to Olympian efforts to keep their omnishambles rolling, ever more eyebrows are raised, querying whether these good chaps know their apples. They lost the benefit of the doubt long before Chloe Smith spectacularly crashed into the national consciousness.

Stage two: Attacks which seek to undermine the basis of Labour’s claim to national leadership.

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Whip’s Notebook: Cameron is now more focused on party management than running the country

03/07/2012, 07:15:38 AM

by Jon Ashworth

Two weeks ago PMQs served as a reminder of what could have been for a generation of Tory MPs. With Cameron and Clegg both away it fell to William Hague, foreign secretary and also first secretary of state to bat for the government. And what a joy he was to watch. Of course I don’t agree with his answers, but his delivery was assured, witty, measured and a total contrast to the increasingly irritable, bad tempered, stroppy performance we’re now used to from the prime minister.

So far the conventional wisdom on PMQs has been that Cameron is a class act on whom its difficult to land a glove. But despite Cameron’s relative strengths compared to others on the Tory benches, its strikes me as increasingly obvious that the conventional wisdom on PMQs is wrong.

In contrast to Cameron, Ed Miliband focuses on fundamentals at PMQs whether that’s the economy, the squeeze in living standards or the crisis in confidence in the political system exemplified by a prime minister on the run who refuses to report a cabinet minister to the independent advisor on the ministerial code.

Just in the last week, Cameron dithered on whether to hold an inquiry on the Libor scandal before proposing his inadequate, sticking plaster solution of a joint parliamentary committee in response to sustained pressure from Ed Miliband.

By focusing on these big issues, people are again starting to take a look at Labour though I don’t think anyone in the parliamentary Labour party is in any doubt about how much further we need to travel. However the performance of the government is starting reinforce doubts about the Tories and the competence of David Cameron.

The economic policy of the government isn’t working with growth downgraded and borrowing up. Living standards are dropping and youth unemployment stubbornly high. It’s hurting but not working.

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Labour’s swing voter problem

02/07/2012, 07:00:22 AM

by Atul Hatwal

Over the past 2 years a myth has taken hold within the Labour party: the fable of the lost 4 million working class votes. Votes that Tony Blair secured in 1997 which Labour had lost by 2010. The Unite political strategy mentions it and this factoid has been a staple at the union conferences this summer.

The implication being that Labour needs to recast its platform to attract these missing supporters rather than chase after pesky, centrist swing voters. It is the core vote strategy, reborn.

For those that can remember Labour in the early 1980s it is all eerily familiar, right down to the same wilful ignorance on the evidence.

At the last election, YouGov’s eve of vote poll – which successfully predicted Labour and Tory vote share to within 1% – identified the Tories as the most popular party among working class voters: 32% of the social demographic C2DE backed the Tories, 31% Labour and 26% Lib Dem.

Given that the Tories were the preference for working class voters, it seems fantastical to believe that moving further to the left will magically win a majority of this group.

But evidence and logic do not seem to be highly regarded qualities among Labour’s myth-makers. The story has taken hold and the absence of voices challenging such nonsense is tantamount to intellectual self-harm.

The renewed emphasis on the core vote seems to be driving a decidedly half-hearted attitude to swing voters for Labour. The mood music from the party’s leaders continually reiterates the desire to move on from triangulation, emphasis on the centre ground and New Labour’s campaigning approach.

It might sound good at the podium, and even feel good in the warmth of the applause. But outside of Labour audiences, in the real world of voters, the electoral damage is already becoming evident. It might seem strange to say this given the polls, but when looking at actual votes in real elections the danger signs are already apparent. The recent London elections shine a light on Labour’s lack of progress in winning back territory held by the Tories.

London provides a unique electoral laboratory because it held local elections on the same day as the general election in 2010, and then mayoral and assembly elections this year. In both cases, the ward level data is available which enables a unique comparison of how millions of voters have shifted their views over the past two years based on real elections rather than snapshot polls.

Labour’s current lead in the opinion polls is stable at almost 10% and the party needs a swing from the Tories of roughly 5% to form a government.

For Labour to be on track to move into government, in the London election, the party should have won a comfortable clean sweep of Tory wards where a swing of 5% was required. Ideally Labour would have won wards requiring a swing of upto 8% to come near to the current poll lead and ensure a solid working majority.

But it didn’t.

In London, research by Uncut reveals that there were 61 wards held by the Tories vulnerable to a Labour swing of 5%. Taking the assembly elections as the best comparator to 2010 (rather than the mayoral election which was more driven by the personalities of the candidates), Labour managed to win in 31 wards.

This means that Labour failed to take 49% of the marginal wards it should have.

Granted, London does not define the position around the country, and there are specific regional factors, but this result does provide an indication of what is likely to be happening elsewhere.

Despite the government’s omnishambles, Leveson, the recession and the budget, Labour missed out on half of its ward targets against the Tories.

In comparison, in wards already held by Labour, the party went from strength to strength. The average increase in Labour vote in Labour wards was 13%. Lots of votes there. Shame none of them are worth much under first past the post.

If anything comparable were replicated at a general election, despite the current poll lead, Labour would fall substantially short of government.

This is the true result of the myth that has taken hold in the Labour party. Large national poll leads and an incompetent government cosset the party and keep us happy in our comfort zone. But when voters go to the polls in real elections, swing voters aren’t swinging.

The base is motivated. It’s turning out and small Labour majorities are becoming landslide leads. But marginal Tory wards are staying just that. Tory.

Atul Hatwal is editor at Uncut

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Revealed: the GMB backtracks on Progress

29/06/2012, 02:10:43 PM

by Atul Hatwal

As Labour’s internal battle between the moderates and the left rumbles on, evidence reaches Uncut that some selective re-writing of recent history is under way.

The GMB kicked-off the latest witchunt against Progress at their conference. Paul Kenny, seen as the most pragmatic and savvy of the current generation of leaders, turned up the heat in his speech. The key passage couldn’t have been any clearer,

“On Progress let me say this. I know that at this very moment a resolution is written and will be delivered to the Labour party shortly. It is a rule amendment which will go before this year’s Conference for next year which, effectively, will outlaw Progress as part of the Labour party, and long overdue it is.”

But now, the GMB is backtracking. Talk of “outlawing” Progress and changing the Labour party’s rules has been quietly dropped and is in the process of being airbrushed out of accounts of their conference.

Last week, the union’s national political officer, Gary Doolan, sent a private e-mail to the network of GMB councillors with some very careful wording. The relevant paragraph comes at the end:

“In addition, there has been much debate about GMB’s Motion 154 to Congress, which has been described as “banning Progress from the Labour Party”. Just to clarify the situation I have included the actual Motion 154 for your perusal.”

The operative phrase here is “there has been much debate”.

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Tuesday’s defence debate shows this government needs to get a grip on the figures

28/06/2012, 04:17:13 PM

by Kevan Jones

Since taking office Ministers have repeatedly told the country that Defence cuts must be quick and deep due to a “£38 billion black hole” inheritance in the MoD budget. Yet there is another story. Public body after public body has questioned the validity of the £38bn figure. This has, of course, now become folklore, but we must scrutinise the claim that underpins the legitimacy of all the government are doing.

The Defence select committee’s report into the SDSR stated that ‘without proper detailed figures’ the government’s claims about the extent of the black hole ‘cannot be verified’.

The National Audit Office has correctly concluded that ‘the size of the gap is highly sensitive to the budget growth… If the Defence budget remained constant in real terms…the gap would now be £6 billion over the ten years. If…there was no increase in the defence budget in cash terms over the same ten year period, the gap would rise to £36 billion’. Cursory scrutiny shows that the defence budget is rising in cash terms. Ministers have said they will make public statements on this but are yet to produce any detail of how this figure has been arrived at.

Within months of this government coming into power the former secretary of state, Liam Fox, had claimed that he had balanced the budget. Now we’ve had Philip Hammond say exactly the same thing. If the ‘black hole’ is as large as they have alleged, how have two secretaries of state been able to claim twice separately that the imbalance has been rectified?

In a defence debate in the House of Commons on Tuesday not a single government minister or MP could explain how the “black hole” figure was reached.

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“Growth not austerity” is the new “stop the cuts” and will be just as successful

28/06/2012, 07:00:16 AM

by Peter Watt

This week saw yet another u-turn by the chancellor. This time over the imminent rise in fuel duty now delayed until Christmas at least. It was all great fun as George Osborne further dented his reputation and future leadership prospects. Rightly Ed Balls had a ball pointing out the increasingly lengthy list of u-turns since the budget. But there was another piece of economic news this week that was much more significant.

Mervyn King, Governor of the Bank of England, was appearing at the Treasury Select Committee on Tuesday and his conclusions were pretty grim:

“When this crisis began in 2007, most people did not believe we would still be here. I don’t think we’re yet half way through this. I’ve always said that and I’m still saying it. My estimate of how long it will take to recover is expanding all the time. We have to regard this as a long-term project to get back to where we were, but we’re nowhere near starting that yet. We’re in a deep crisis with enormous challenges.”

So however bad we think it is at the moment, we ain’t seen nothing yet. There are years of tough times to come whoever is in government. Years of cuts and years of tough decisions. We already know that the majority of the proposed cuts to public spending, the level of which we have accepted, are still to come.

But it feels at the moment that many in Labour have comforted themselves with the notion that (1) George Osborne is useless and (2) all we need are some pro-growth policies.

Then as growth returns and tax receipts rise we can avoid tough decisions. But setting aside that delivering growth is easier to say than to deliver; even if the economy began growing Labour would not be able to avoid those tough decisions should we form the government post 2015.

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Cameron’s women problems

27/06/2012, 04:32:39 PM

Treasury minister Chloe Smith last night joined an exclusive club.

No it’s not the Bilderberg Group. Not much chance of an invitation there after her disastrous appearances on Channel Four News and later on Newsnight defending the government’s u-turn on fuel duty.

No she’s just been inducted into the ex-Next Big Things club. It’s a select intake of those of whom great things were expected. But bad news travel fast in modern politics and Twitter was abuzz last night and this morning at the general awfulness of her career-limiting performances.

Of course an individual minister taking a caning in an interview is neither here nor there, but Chloe Smith’s case exposes a deeper problem for David Cameron.

In fact he has two big problems: both with women.

The first is the growing sense that the PM is a bit of a chauvinist. It’s revealed in small things like his silly put-down to Angela Eagle in the Commons (“calm down dear”) and probably not helped by leaving his daughter in the pub the other week.

These are relatively trivial offences, compared to the differential impact coalition cuts are having on women’s lives, wisely picked up early-on by Labour’s frontbench and now used to bring home the very real effects of the government’s programme to women voters bearing the brunt of unemployment, tax hikes and service cuts.

His second problem is closer to home. A government reshuffle is due soon. Unlike most other PM’s Cameron is said not to believe in regular changes, allowing ministers to get to know their briefs properly. A commendable enough sentiment, but the government is in need of fresh faces and to prune the less effective ministers.

In a bid to tackle his problem in communicating with women voters, the logical impulse is to promote more female political talent. But it’s not until you look down a list of government ministers that you realise just how few women there are.

The attendant problem is that the women ministers he currently has are among the least effective performers in the government.

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The right and the wrong way to attack the Tories on housing

27/06/2012, 01:48:45 PM

by Peter Goddard

So David Cameron has announced his latest cuts, this time directing his bloody shears at housing benefit for the young.

Predictably, left-wing commentators have howled their outrage at this latest withdrawal of the state.

The problem, though, is that while many on the left focus on the gross abrogation of an individual’s right to benefits, criticising Cameron for cutting benefits in this way is little more than accusing a Tory of being a Tory.

The Tories are, as with most of their proposed cuts, using the opportunity to portray the recipients of housing benefit as the undeserving poor, to be contrasted with and despised by the squeezed middle.

These benefits are always shown as being paid to some feckless individual, who ultimately makes a better living on welfare than they would by honest toil.

During straitened times such as these, the rights based case for benefits will only go so far with the public.

Surely it would be better to oppose the Tories in terms of the national interest, the common good. Something in which everyone has a material, rather than moral, stake.

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Finally, Labour seems to be getting it on immigration

26/06/2012, 12:30:05 PM

by Kevin Meagher

My dad’s just turned 67. Like many people these days, he’s still working. But he’s not sat in a cushy office hunched over a laptop; he’s up on a scaffold, or knee-deep in mud and clay in the footings of a house.

He’s a bricklayer; and still finds himself out in all-weather doing the job he’s been doing for 50 years. He can’t afford to retire. When you work in a speculative industry your pay goes down as well as up. In a non-unionised industry, the rate is under constant negotiation. In the 1960’s and 70s it was a good job – paying well above average earnings.

During the 1980s, two biting Tory recessions wiped out construction. Try saving for retirement when you’re not earning enough; keeping the wolf from the door is the name of the game. So work on he must.

That’s partly because the past decade hasn’t been much better for construction workers either. Even during Labour’s boom, the wealth didn’t trickle down to people like him. There were two crushing forces at work: the Labour government’s general failure to build enough homes and the impact of low-cost immigrant labour, following the accession of the Visegrad countries to the EU in 2004.

The first issue is well chronicled – and indeed championed by the Left. Construction of new homes dropped to a post-war low under Labour. Having fallen by two thirds since the heyday of the 1960s, just 156,170 houses were built in 1997-8. By 2009-10, this had nearly halved to just 88,690. Not enough houses mean not enough jobs and flat pay.

Of the second issue – immigration – you will hear ne’er a squeak.

There’s been a self-denying ordinance in even talking about the issue for as long as I can remember. Like actors who won’t say the name of “the Scottish play” for fear of bad luck, the centre-left has been utterly mute on the subject of immigration for years.

Of course there is a familiar form of words about ‘valuing the contribution immigrants make’ but no discourse on the other impacts. The downsides must remain unspoken; such is the paranoia about feeding the far right.

So Ed Miliband’s speech was hugely significant, if only for its topic. Stacked full of caveats and careful formulations, he did, however, manage to throw off the veil that “worrying about immigration, talking about immigration, thinking about immigration” does not make people bigoted (“not in any way”). People are simply “anxious about the future” he said.

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