by Jake Richards

Keir Starmer has been elected leader of the Labour Party amidst crisis. His priority, rightly, is to show that the country now has a credible and coherent Leader of the Opposition who is willing to work with the Government during the outbreak of Covid-19. However, Starmer and the newly appointed Shadow Chancellor Anneliese Dodds, will already be beginning to assess how the crisis will affect the broader political environment.

It is tempting to assume the zeitgeist of the corona outbreak will be progressive. A Conservative government has embraced the most interventionist state economic programme since the war, essentially nationalising a closed-down economy, whilst rough sleeping has been wiped out and hospitals created seemingly overnight. Images and videos of the public applauding our NHS workers have gone viral. A new appreciation for ‘key workers’ in the ‘real economy’ — rubbish collectors, those in the food supply chain, delivery drivers — has emerged. The sense of community spirit combined with the anger at examples of scurrilous businesses taking advantage of taxpayers or employees is more evidence that this is a ‘moment of the left’.

Already, articles by left-wing thinkers are heralding ‘capitalism’s gravest challenge’, the transformation of the private sector and a new popular outcry for ‘big government’.

There was a similar sense after the 2008 financial crash and government intervention around the world ended an ideological reverence to self-correcting markets. In the 12 years since, the Conservatives have won four General Elections, the UK has left the European Union, and in America, India, Brazil and Russia (and elsewhere) we have witnessed the rise of a nationalist populism many thought was confined to the 20th Century. Indeed, although the immediate response to Covid-19 has been statist in a progressive sense, it is easy to envisage a reactionary, isolationist response developing in relation to our borders and trade soon developing.

Whilst a new active state during the crisis offers Labour an array of policy options, the new leader should proceed with caution. Labour has just suffered a devastating defeat on a platform arguing for a massively expanded Government — with nationalisation of key industries, free broadband for all and the development of a universal basic income. Focus groups and polling undertaken after the election revealed voters simply did not believe many of Labour’s policies (however popular on paper) were realistic or welcome as a package. The unpopularity of a universal basic income was striking — suggesting a deep reverence to personal responsibility and work, and a suspicion of ‘free handouts’.

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