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Ed Miliband: the Hugo Young lecture 2014



Labour Conference Focuses On Leader's Speech

 

It is a huge pleasure to be here with you tonight.

And to be giving the Hugo Young Lecture.

Hugo Young was a figure of great decency and integrity.

He wrote beautifully and insightfully and gave journalism a good name.

As Alan Rusbridger wrote after his death, “Hugo never forgot why he was there: not to make friends or amiably to chew the political cud, but to report and to explain.”

Of the many things that made Hugo Young famous, was the phrase “one of us”.

It was the title he gave to his renowned biography of Margaret Thatcher.

As Hugo began the book:

“Is he one of us? The question became one of the emblematic themes of the Thatcher years.”

“Posed by Mrs Thatcher it defined the test which politicians and other public officials vying for her favour were required to pass.”

Now, I cite this not because I think we should take it as a model for government.

Nor for appointing civil servants.

But in the use of the phrase, Hugo Young was making an important point.

The very fact that Lady Thatcher was able to ask that question meant that she was absolutely clear what she stood for.

Prime Ministers are elected on a manifesto and make policy on that basis.

But in my view whether they achieve lasting change depends not just on specific policies but whether they can define the purpose and mission of their government.

With thousands of decisions taken in government every day, unless there is that sense of purpose, ministers and the people who support them will simply go their own way.

And the whole will be far less than the sum of the parts.

This is particularly true when it comes to the incredibly complex task of running the state and public services.

Over twenty Whitehall departments, more than a hundred local authorities, thousands of hospitals and schools.

Millions of choices are made each year in these organizations.

Even the most hands-on Prime Minister cannot determine those choices—-nor should they want to.

But a Prime Minister and a government can establish a culture for the way public services ought to work.

And the reality is that it doesn’t need civil servants to be ‘one of us’ to respond.

All of my experience is that public servants want a sense of the culture of public service the government wishes to see.

Because this sense of purpose acts as a guide for them.

My aim tonight is to say what that mission would be if I was Prime Minister.

My case is that the time demands a new culture in our public services.

Not old-style, top-down central control, with users as passive recipients of services.

Nor a market-based individualism which says we can simply transplant the principles of the private sector lock, stock and barrel into the public sector.

The time in which we live and the challenges we face demand that we should always be seeking instead to put more power in the hands of patients, parents and all the users of services.

Unaccountable concentrations of power wherever we find them don’t serve the public interest and need to be held to account.

But this is about much more than the individual acting simply as a consumer.

It is about voice as well as choice.

Individuals working together with each other and with those professionals who serve them.

This commitment to people powered public services will be at the heart of the next Labour government and tonight I want to set out why it matters, and what it means in practice.

This vision for public services is rooted in one of the key principles that drive my politics.

The principle of equality.

In his poem, The Prairie Grass Dividing, Walt Whitman talks about what makes for a successful democracy and says it is about a country where people can “look carelessly in the faces of Presidents and Governors, as to say, Who are you?”

Of course, politicians today quite often have that experience.

But not quite in the spirit Walt Whitman meant.

He is expressing the belief that each person however powerful or powerless, matters as much as one another.

An ethical view about the equal worth of every citizen.

This is the foundation of my commitment to equality too.

Whoever you are, wherever you come from, you are of equal worth.

It is the standard I seek to hold myself to as a person.

It means seeking to walk in the shoes of others, not looking over their shoulder to someone more powerful.

And that defines my politics too.

Because from that flows a belief in equal opportunity.

How else can we fulfil our commitment to the equal worth of every citizen?

And from it also flows a belief that large inequalities of income and wealth scar our society and prevent the common life I believe in for our country.

As Benjamin Disraeli wrote in Sybil in 1845 the danger is of “two nations, between whom there is no intercourse and sympathy; who are as ignorant of each other’s habits, thoughts and feelings as if they were dwellers in different zones or inhabitants of different planets”.

Those words were true then and feel as true today.

For decades, inequality was off the political agenda.

But nationally and internationally, this is changing.

Many people across every walk of life in Britain – politics, charity and business – now openly say they believe that inequality is deeply damaging.

Internationally too, political and civic leaders are talking about inequality in a way that they haven’t for generations.

At the end of last month, President Obama put it right at the heart of his agenda for government.

A few months before that the Democratic candidate for Mayor of New York, Bill de Blasio, was elected with precisely the same message.

We now have a Pope who says the same.

And that’s because people the world over are beginning to recognise some fundamental facts again.

That it offends people’s basic sense of fairness when the gaps between those at the top and everyone else just keep getting bigger regardless of contribution.

That it holds our economies back when the wages of the majority are squeezed and it weakens our societies when the gaps between the rungs on the ladder of opportunity get wider and wider.

And that our nations are less likely to succeed when they lack that vital sense of common life, as they always must when the very richest live in one world and everyone else a very different one.

I believe that these insights are at the heart of a new wave of progressive politics.

And will be for years to come.

Indeed, not just left of centre politics.

Intelligent Conservatives from David Skelton outside Westminster to Jesse Norman inside recognise the importance of inequality as well.

I believe that the public want to know we get it; we understand the depths of the cost of living crisis they face.

And we can’t go on with countries where the gap between those at the top and everyone else just gets bigger and bigger.

Tackling inequality is the new centre ground of politics.

In the last few years, I have been setting out what that means for Britain.

Of course it is about a progressive tax and benefits system.

But the lesson of the New Labour years is that you can’t tackle inequality without changing our economy, from promoting a living wage, transforming vocational education, to reforming executive pay, to helping create good jobs with decent wages.

I believe that inequality matters in our politics too.

We need to hear the voices of people from all walks of life not just the rich and powerful.

Building a real movement is the best hope of keeping the political conversation grounded in the reality of people’s lives, which so often doesn’t happen at Westminster.

Rooting the Labour Party in every community and every workplace in the country are what my party reforms are about.

Having explained what my beliefs mean for the economy and for politics, today I want to explain what they mean for the state and, in particular, for the way public services work.

For the left and for Labour, public services have always played an essential role in the fight against inequality and poverty.

An essay written in the late 1940s by T. H. Marshall called “Citizenship and Social Class” explained the idea of how public services could act against inequality.

Just as in the 18th and 19th century, civil and political rights had guaranteed a degree of equality, so too social rights would in the 20th.

A free national health service.

Decent state education.

Legal aid.

Pillars of the welfare state and a bulwark against inequality.

For much of the 20th century, politics became a battle about who was best placed to protect and expand this legacy.

For Labour the lesson of all this was a simple one: win power and use the levers of the state to fight against injustice.

That belief endures today.

And understandably so.

But we should never think it does enough on its own to achieve equality.

Because this traditional description of the task of Labour leaves out something fundamental.

I care about inequality of income and opportunity.

But I care about something else as well.

Inequalities of power.

Everyone – not just those at the top – should have the chance to shape their own lives.

I meet as many people frustrated by the unresponsive state as the untamed market: the housing case not dealt with, the special educational needs situation unresolved, the problems on the estate unaddressed.

And the causes of the frustrations are often the same in the private and public sector: unaccountable power with the individual left powerless to act against it.

So just as it is One Nation Labour’s cause to tackle unaccountable power in the private sector, so too in the public sector.

Of course, there is a vibrant and important tradition on the left which takes these inequalities seriously.

More than ever we need to rediscover this tradition.

Michael Young is most famously known as the author of the 1945 Labour manifesto which some saw at the blueprint for a centralized state.

But in 1949 he wrote the book Small Man, Big World which argued that the “large institutions of modern society tend to ignore the interests of ordinary people, who suffer collectively as a result.”

In the 1960s, the New Left and their colleagues also argued for a different kind of state.

The American Saul Alinsky wrote: “self-respect arises only out of people who play an active role in solving their own crises and are not helpless, passive, puppet-like recipients of private or public services.”

And at the same time, feminists were pointing out that women were often especially poorly served by the existing structures of the welfare state.

In my thinking, I have been much influenced by a book written by Richard Sennett, called Respect: The Formation of Character in an Age of Inequality.

He grew up on a Chicago housing estate, and he talks about the interaction between the “professionals” of the welfare state and those who lived there.

And he talked in a memorable phrase about the “compassion that wounds” – well-intentioned, properly motivated, but nevertheless disempowering.

Since then, people like Hilary Cottam have been actively creating new ways of providing public services, moving beyond the old model of delivery.

So the issue of power in public services has always been important.

And it is, in fact, even more urgent today.

For a whole set of reasons.

Because the challenges facing public services are just too complex to deliver in an old-fashioned, top down way without the active engagement of the patient, the pupil or the parent: from mental health, to autism, to care for the elderly, to giving kids the best start in the early years.

Because we live in an age where people’s deference to experts is dramatically waning and their expectations are growing ever higher about having their say.

And because the knowledge and insight that users can bring to a service is even more important when there is less money around to cope with all the demands and challenges.

Clearly the next Labour government will face massive fiscal challenges.

Including having to cut spending.

That is why it is all the more necessary to get every pound of value out of services.

And show we can do more with less.

Including by doing things in a new way.

At the same time, while the challenges are greater for public services than ever before, and make the issue of power all the more urgent, there are greater reasons for optimism too.

Contrary to a 1980s view of self-interested individualism, people by instinct want to help each other.

And that means if we care about giving power away, there will be someone to give it to.

Similarly, technology makes things possible, in ways that simply wouldn’t have been possible in the past.

Big Data, sometimes provided by the public themselves, provides entirely new ways of tackling everything from crime to improving the environment.

And today, the internet means that whether you are a parent, a patient, or a carer you don’t need to be left on your own but can link up with others.

Able to form communities of interest even when people are thousands of miles away.

So the challenge of power is both pressing but also more capable of being solved.

Some people, including the present government, conclude from this challenge that the answer is simple.

Addressing inequalities of power just means crudely importing principles of the private sector into the public sector.

Choice, contestability and competition have a role.

Labour showed in government how the private sector could help to provide extra capacity and speed up hip replacements and cataract surgery for the NHS.

And where existing services have consistently under-performed then alternative providers, including private, third sector or mutuals, are important as a way to turn things around.

But to conclude that market principles are a panacea is simply wrong.

The logic of market fundamentalism is that just like we have a choice over which shop we go to or which cafe, so too we should apply the same to public services.

But it is fairly obvious that this logic is flawed.

Making a decision about which cafe to go to, is something which can be made each time you choose to go out.

It is a completely different story with my son’s school.

If I wasn’t happy with the teaching he was receiving, I shouldn’t have to take him out of the school, disrupting the family, moving him away from his friends.

Even having to set up a school myself.

There should be a mechanism to improve the school.

And this is not the only issue.

Even if we did think market principles were the answer, the resource constraints on government will always limit their effectiveness.

When this government sets up Free Schools in places where there are already surplus places supposedly to create more choice, it does so by taking money away from other kids in real need of a school place.

And we have a looming school places crisis as a result.

Even more problematically, the promised choice often isn’t real.

Replacing one large public sector bureaucracy with a large private sector bureaucracy doesn’t necessarily make the system less frustrating.

Once a government contract for the Work Programme is signed or a train franchise is confirmed, people themselves have no choice over which provider to use because the choice has already been made by the government.

And it turns out that the Serco/G4S state can be as flawed as the centralized state.

Finally, while the creative destruction of the private sector is what powers an economy forward overall, there are other principles that drive public service success.

Like co-operation and care.

If you want to know what can go wrong, just take the government’s decision to import the principles of the privatisation of the utilities in the 1980s into the NHS.

It has meant that hospitals that want to co-operate with each other and integrate are prevented from doing so by an army of competition lawyers who say that’s “collusion”.

The Chief Executive of the NHS himself is saying it is now bogged down in a morass of competition law.

Unable to integrate services which is crucial to improving care and controlling costs.

So while David Cameron promised a Big Society, to unleash the forces of the voluntary sector, he has delivered something rather different.

In some cases, the monolithic private sector replacing a monolithic public sector.

In others, a crude application of market principles which simply hasn’t worked.

And in others still, leaving the unsupported voluntary sector to pick up the pieces where the state has abdicated its responsibility.

It’s no wonder he never uses the phrase Big Society any more.

So what are the principles that should guide us in tackling inequalities of power and improving public services?

What kind of culture would a Labour government seek to encourage?

I want to suggest four principles that will guide what we do.

And these are principles that I hope will be welcomed by millions of public servants who work tirelessly, day in day out, often for low wages, to serve the public.

They often feel that we have a culture that stops them doing their best.

Because the system doesn’t allow them to put those they serve at the heart of what they do.

First, we should change the assumption about who owns access to information because information is power.

And if we care about unequal power, we should care about unequal access to information.

From schools to the NHS to local government, there is an extraordinary amount of information about users of public services.

But the working assumption is still that people only get access to it when the professionals say it is OK or when people make a legal request.

Our assumption should be the opposite.

That information on individuals should be owned by and accessible to the individual, not hoarded by the state.

That people get access to the information unless there is a very good reason for them not to.

As the government has already acknowledged, that must include the right to access your own health records, swiftly and effectively.

But we should go beyond that.

Take education.

Schools collect huge amounts of information on our kids.

The old assumption is that it gets shared with us once or twice a year at a parents’ evening.

But this is a very old fashioned assumption.

As good schools are already showing, there should be continuing access, all year around.

Many good teachers know that its better if parents shouldn’t have to wait for a parents’ evening to understand how their son or daughter is doing, where things are going well and what more they could do.

And new technology makes the sharing of this information much easier.

As at Shireland Collegiate Academy in the West Midlands which provides teachers, pupils and parents real-time information on pupil attainment.

Indeed the Learning Gateway they pioneered is now used by over 100 schools.

And just as with the best private sector companies, we can “track our order”, so too in the public sector we should be able to “track our case”.

Whether it is an application for a parking permit or when you have been a victim of a crime.

Boston, in the United States, pioneered that kind of service a few years ago.

And the Labour council in Birmingham has already created an app for a mobile phone that can do it as well.

We are still in the foothills of what we can achieve for users in the transformation of public services through new technology.

If it can be done by one local council, it should be possible in every government department.

And that’s what we would task the government’s digital service to do.

Guaranteeing for the first time that people get the information they need.

But information is not enough if we are going to tackle the inequalities of power that people face.

My second principle is that no user of public services should be left as an isolated individual, but should be able to link up with others.

The old assumption is that success in public services comes from the professional delivering directly to the single user.

What I have called the “letterbox model”.

Indeed the very term “public service delivery” conjures up this idea of waiting for a service to be delivered by somebody else.

In fact, there is now a wealth of evidence that the quality of people’s social networks with other patients, parents and service users can make a all the difference to the success of the service.

A recent study in the United States found that women suffering with serious illness, with small social networks had a significantly higher risk of mortality than those with large networks.

Support networks made it easier to keep to recommended treatment schedules and, just as important, kept the morale of patients higher.

This is not surprising.

Nothing makes people feel more vulnerable than having to stand on their own.

Confronted with a vast and complex world of services that they can’t make sense of or options they don’t understand.

A friend of mine was telling me just the other day, what it felt like when his son was diagnosed with autism.

And he was battling the local council for proper support.

He and his wife didn’t know what they were meant to do.

They didn’t know what information to trust, or who to believe.

They felt they were standing alone in the world.

What really would have made the difference was being able to talk to other parents in the same position.

That way they could have made sense of the services that were available.

And asked for different teaching methods.

Eventually after years of struggle they managed to do this, but no thanks to the state.

Just as the presumption should be that the user owns and has access to their information, so the presumption should be that service users have the right to be put in touch with others.

Of course, there are already some amazing organisations in Britain that help people do exactly that.

Voluntary groups, for the ill, and the old, for those with kids in local schools, for those battling to look after relatives.

But too often at the moment, rather than helping people come together, the official services feel they’ve been told by people at the centre that their job is not to help put people in touch.

There is often no requirement on them to do so.

It is not part of their training.

Not a central part of what they are expected to do.

We need to change that.

There are already some examples that do precisely this.

In Newcastle, GPs don’t just prescribe drugs to patients, as a norm, they also put patients with chronic or complex conditions directly in touch with others who have the same concerns.

Whether it is diabetes, cancer or Parkinson’s.

The options flash up on the doctor’s computer screen, in exactly the same way the other treatment options do, and they are passed on to the patient.

So no-one has to deal with a long-term condition by themselves.

With the political will, and a small change to the existing information made available to GPs, we could make that possible in every GP’s surgery across our country.

And that is what a Labour government would do.

It is the right thing to do, keeping people healthier and less likely to end up in hospital.

It also means that people have greater power to hold to account a state that is not being responsive.

Some people will fear this.

I think we should embrace it.

Empowering people against the state where necessary.

And we should make it happen in every service that we can.

But if we are truly to make our public services open to the voices of those they are meant to serve, we need to throw the decision making structures open to people too.

We need to tackle inequalities of power at source.

So my third principle is that every user of a public service has something to contribute and the presumption should be that decisions should be made by users and public servants together, and not public servants on their own.

Of course, this is what so many great public services already do.

Personal budgets have allowed many disabled people to shape the services that matter for them, working hand-in-hand with public service professionals.

On a community level, the co-operative council model in Lambeth also shows us the way.

Its services are shaped and controlled directly by the people who they serve, not just by the council staff.

Despite reductions in budgets, services in Lambeth have been improved by this model.

From parks to youth services.

And we should apply this principle more widely.

Take the most difficult decisions that have to be taken in public services, like the restructuring of services in the NHS.

David Cameron used to go round in Opposition saying he would have a moratorium on all hospital changes, that closures would never happen.

He has monumentally broken that promise, including at hospitals he stood outside with a sign opposing change.

Recently the government attempted to close services at Lewisham and downgrade the A and E.

But they failed because they ignored the voice of patients.

Now, instead of learning the lessons, they want to change the law so they can change services across an entire region, bypassing patient consultation.

I am not going to make promises I can’t keep particularly on this issue.

No service can stand still.

But if we truly believe in pushing power down to people, we have to accept that we can’t at the same time defend a system where decisions this important are taken in a high-handed, Whitehall knows best way.

Indeed, the problem with the current approach is that it creates a dynamic of decisions taken behind closed doors, lacking legitimacy, with little public debate about the real reasons a change is being proposed.

Clinicians, managers and patients across the NHS know the system we have isn’t working.

We need to find far better ways of hearing the patient voice.

So a Labour government will ensure that patients are involved right at the outset: understanding why change might be needed, what the options are and making sure everyone round the table knows what patients care about.

No change could be proposed by a Clinical Commissioning Group without patient representatives being involved in drawing up the plan.

Then when change is proposed, it should be an independent body, such as the Health and Wellbeing Board, that is charged with consulting with the local community.

Not, as happens now, the Hospital Trust or Commissioning Group that is seeking the change.

And we will seek to stop and will, if necessary, reverse the attempts by government, to legislate for the Secretary of State to have the power to change services across whole regions without proper consultation.

This is just one example of how we can involve people in the key decisions that affect their lives.

Not saying change will never happen.

But saying no change will happen without people having their say.

We need to do the same in schools.

Having promised to share power, this government has actually centralised power in Whitehall.

Attempting to run thousands of schools from there.

That doesn’t work.

And as a result some schools have been left to fail.

Just last week we saw the Al-Madinah School in Derby close, because its failings were spotted far too late.

Clearly, we need greater local accountability for our schools.

And in the coming months, David Blunkett will be making recommendations to us about how to do this.

As part of that plan, we must also empower parents.

Parents should not have to wait for some other body to intervene if they have serious concerns about how their school is doing, whether it is a free school, academy or local authority school.

But at the moment they do.

In all schools, there should be a “parent call-in”, where a significant number of parents can come together and call for immediate action on standards.

This power exists in parts of the United States.

And I have tasked David Blunkett with saying how that can happen here too.

The fourth principle is that it is right to devolve power down not just to the user but to the local level.

Because the centralized state cannot diagnose and solve every local problem from Whitehall.

And if we are to succeed in devolving powers to users, it is much harder to do that from central government.

It is right that we elect a national government to set key benchmarks for what people can expect in our public services.

That’s part of tackling inequality.

Like how long we have to wait for an operation in the NHS.

What standards of service the police should provide.

And to ensure that the teachers in our classrooms possess a proper qualification.

But how specific services are delivered within these standards and guarantees cannot simply be dictated from Whitehall.

For the last year, as part of Labour’s Policy Review led by Jon Cruddas, our local innovation taskforce comprising outstanding council leaders from Manchester, Hackney and Stevenage has been looking at how we can deliver more with less.

And Andrew Adonis has been leading work on city regions, and their potential to drive our future prosperity if we devolve budgets and power down.

The conclusions of both these important pieces of work will be published in the coming months.

And as we prepare for a Labour government the on-going Zero-Based Review across all of public spending, being led by Ed Balls and Chris Leslie has these ideas at its core.

This work is clear that by hoarding power and decision-making at the centre, we end up with duplication and waste in public services.

As well as failing to serve people, particularly those with the most complex problems.

That is why the next Labour manifesto will commit to a radical reshaping of services so that local communities can come together and make the decisions that matter to them.

Driving innovation by rethinking services on the basis of the places they serve not the silos people work in.

Social care, crime and justice, and how we engage with the small number of families that receive literally hundreds of interventions from public services.

And so too in the coming months, across the major public services, we will be showing how we can improve genuine local accountability.

In addition to the Blunkett Review in education, the Institute of Public Policy Research’s Condition of Britain project is doing important work here.

John Oldham will also be reporting on how we can fulfil the vision of “whole person” care, better co-ordinating mental health, physical health and social care by devolving power down.

And following the Stevens Review on policing, Yvette Cooper will be coming forward with recommendations on how we can bring decisions on neighbourhood policing closer to local people.

In all of these public services, we are determined to drive power down.

This devolution of power is the right thing to do for the users of public service and is the right way to show that we can do more with less.

When I set out on the journey of becoming Leader of the Opposition nearly three and half years ago, I knew the most important thing was to do the hard thinking about the condition of Britain and what needed to change.

As Hugo Young knew, ideas and hard intellectual thinking are the most under-rated commodities in British politics.

To be a successful Opposition, you need to be able to tell the country what’s wrong and how it can be changed.

And to be a successful government, you need a defining mission.

Hugo Young and I didn’t agree with Lady Thatcher on most things.

But I suspect he would have agreed with her on this: “Politics is more when you have convictions than a matter of multiple manoeuvrings to get you through the problems of the day.”

Over the last few months, whether it is on energy or banking or on 50p tax, Labour has prompted debate and indeed criticism.

I relish that debate and believe strongly that the criticism just comes with the territory.

It is what happens when you make the political running.

I know that we are putting the right issues at the heart of our programme.

And we are standing where the British people stand.

They want a government that will stand up for them against unaccountable power, wherever it is.

They want more control over their own lives.

I am determined that is what the next Labour government will do.

That is the culture of the government I want to lead when it comes to public services.

Tackling inequality in income, opportunity and power.

That will be Labour’s mission in 2015.

Ed Miliband at the 2014 Hugo Young lecture: Labour can’t sell its vision on the NHS because it doesn’t have one



Ed Miliband

One of the most famous criticisms of Gordon Brown that he was less concerned about the manner in which he delivered the argument, so long as he was ‘right’.

Tony Blair realised that Gordon Brown was ‘to the left’ of him quite early on.

In 2001, Blair and Brown had a tussle over ‘top up fees’ in higher education. Brown was against them, and Blair was in favour of them. There was a concern that this might lose Labour seats.

Fast forward onto 2014, and Ed Miliband presents disabled people being in control of their budgets. Of course, the idea of personal budgets has been progressing steadily for the last few years. But austerity presents a new opportunity for the personal budget: always presented as a method of empowering persons and patients with choice, it now gives the Labour Party, and a possible Liberal Democrat partner, a chance to mix up health and social care budgets. The beauty of this is that with the opportunity of top-pay payments in health, previously called ‘copayments’, slimming the State is sold as choice.

This has been briefed as being an aspect of Ed Miliband’s Hugo Young Speech to be given this evening.

The Clement Attlee government, in implementing the National Health Service, was accused of always having to combine ‘a vision’ with sheer improvisation.

Ed Miliband’s outlook on the NHS, while clearly obsessing in general about the interaction between the States and market in a curiously academic way, is now threatening to be full of improvisation, but no vision.

Andy Burnham MP is doing as much as he can do in selling Labour as ‘the party of the NHS’, and opposing competition, privatisation and hospital closures. But there’s curiously a complete lack of vision of what is going to take its place, apart from a rather nebulous concept known as ‘whole person care’.

Tony Blair often boasted about how people’s satisfaction of the NHS could often have nothing to do with political ideology. For example, how long you have to wait in A&E is surely something which should not depend on your political make-up?

Quite ironically, the theme of ‘abuse of power’ is common to both the left and right of political ideology, as is well known to ardent followers of E.P. Thompson and Edmund Burke respectively.

Even Churchill commented at the height of reaction to Bevan’s “vermin speech” that the Conservatives “might be vermin”, but did support the NHS.

The Labour perspective is full of inherent contradictions. This was for example seen in all its glory when Ed Miliband triumphed in the notion of ‘One Nation’, while launching quite an unpleasant attack on the Conservatives. One Nation is not, of course, completely possible while different devolved NHS systems are running in England, Wales and Scotland.

Ed Miliband’s populist left speech this evening manages to identify the “pantomime villains” of the outsourcing companies, without explaining why it might matter who delivers the NHS services?

Tony Blair always boasted how his great work on the public sector combined ‘reforms’ with ‘investment’.

But making money is not an ideology. Introducing neoliberal budgets, but saying it’s not individual consumerism, is laughable.

There’s clearly going to be some resentment from the general public to see hardworking taxpayers’ money invested in public services only for these to be privatised at some later date (e.g. HS2, Royal Mail).

When Blair proudly said he wished to see the NHS as a business, it’s an ideology of sorts; but in the same way you might wish to see education as a business, or war as a business, or prostitution as a business.

Blair of course disingeniously couples with this the idea that he wants to see the NHS as more ‘innovative’. This is of course is to assume that socialism can never deliver innovation, which is an unworkable concept because of the emphasis which socialism places on solidarity, cooperation and collaboration.

It’s all very well combining Arthur Daley with Citizen Smith producing ‘power to the people with cheque books’.

But the idea of accountability in the NHS is an utterly fraudulent one. Local people have absolutely no power on budget sheets of PFI hospitals being engulfed with regular interest payments, such that safe staffing levels cannot be enforced.

Local people have no power when it comes to a complaints system in the NHS which does not action any complaints.

The major problem is that Labour can’t sell its vision. That’s because it doesn’t have one. To execute its agenda, maybe a Labour-Liberal Coalition might in fact be the best thing for it.

The solution to the current malaise is not more extreme social democracy



Zen Ed Miliband

There’s an argument from some that more trenchant tax rises, such as VAT or income tax, and ‘getting more from less’, will be enough to see through an incoming Labour government led by Ed Miliband.

Put quite simply, I don’t think this will be nearly enough. It would the best Labour could come to retoxifying its own brand, reestablishing its credentials as a ‘tax and spend’ government. In fact, for the last two decades, the taxation debate has got much more complicated due to an issue nobody wishes to admit. That is: you’re not actually using taxpayers’ money to go into the salaries or wages of employees of the State, you’re increasingly using this tax to subsidise the shareholder dividends of directors of outsourced public functions (such as beneficiaries of health procurement contracts). Whether you like it or hate it, and let’s face it most people are ambivalent to it, resorting to this would ignore all the groundwork the Miliband team has done on “pre-distribution”. Forgetting this actual word for the moment, making the economy work properly for the less well-off members of society should be an explicable aim of government on the doorstep. Putting the brakes on the shock of energy bills, from fatcat companies, is a reasonable self-defence against an overly aggressive market which has swung too far in much favour of the shareholder and director. Paying people a living wage so that they’re not so dependent on State top-ups to survive is as close as you can get to motherhood and apple pie. Even Boris Johnson supports it.

Of course, Ed Miliband’s natural reaction as a social democrat would be try and survive government as a social democrat. But that doesn’t get round the problem experienced by a predecessor of his, Tony Blair. When Tony Blair had his first meeting with Robin Butler (now Lord Butler of Brockwell), Butler asked, “I’ve read your manifesto, but now what?” Ed Miliband has low hanging fruit to go better than Tony Blair on his first day in office if he can come up with clear plans for office and government.

Let’s get something straight. I don’t agree that the scenario which must be proven otherwise is that Ed Miliband will come into Downing Street only enabled by Liberal Democrat voters. There are plenty of former Liberal Democrat voters who feel deeply disgusted by Nick Clegg not acting as the ‘brake’ to this government, but as the ‘accelerator pedal’. They have seen Clegg’s new model army vote for tuition fees, privatisation of the NHS, and welfare reforms, as if there is no tomorrow. And for many of his MPs, there will be no tomorrow. Clegg’s operating model of supplying votes for whichever party happens to be his employer is clearly unsustainable, as within two periods of office, his flexible corpus of MPs would end up repealing legislation that they helped to introduce to the statute books.

In answer to the question, “What do we do now?”, Ed Miliband does not need to reply with a critique of capitalism. Miliband will have to produce a timeline for actions which he has long promised, such as implementation of a national living wage, controlling seemingly inexorable increases in energy bills, as well as other ‘goodies’ such as repealing of the Health and Social Care Act (2012).

Andy Burnham MP, Shadow Secretary of State for Health, has already explained some of the ‘and then what’. Burnham has insisted that he will make existing structures ‘do different things’. But while getting rid of compulsory competitive tendering, Burnham needs to put ‘meat on the bones’ on how he intends to make the NHS work without it being a quasimarket. Burnham’s challenges are not trivial. Burnham seemingly wishes to maintain a system of commissioning, while intending to abolish the purchaser-provider split. Burnham also seemingly wishes to support local A&E departments in not being shut down, but has as not yet stated clearly what he thinks will work better than the current amendment of the Care Bill going through parliament for NHS reconfigurations. Furthermore, Burnham in advancing ‘whole person care’, in sticking to his stated unified budgets, may have to resist seeing the merging of the non-means tested NHS being merged with the means-tested social care. This might easily lead to ‘mission creep’ with merging with welfare budgets. And this brings up a whole new issue in ‘integrated care’ which Burnham has long denied has been on the agenda: “top up payments” or “copayments”. Reducing health inequalities by tackling inequalities social determinants of health should of course be well within the grasp of a socialist-facing NHS delivered by Labour. With patient safety also, correctly, a top priority for the National Health Service, especially for how frail individuals received medical care in hospitals, Burnham has in fact five timelines to develop fast as top priorities: addressing the social determinants of health inequalities (even perhaps poor housing), commissioning anomalies, reconfiguration tensions, whole person care implementation, and patient safety.

The global financial crash should have given some impetus to the Marxist critique of capitalism, but it didn’t. Tony Benn said famously that, when he asked to think of an example of ‘market forces’, he would think of a homeless person sleeping in a cardboard box underneath Waterloo Bridge. Benn further pointed out that the NHS was borne out of war, where normal rules on spending went out of the window: “have you ever heard of a General saying he can’t bomb Baghdad as he’s overrun as his budget?” However, it was not the global financial crash which caused there to be far too many people who feel disenfranchised from politics. Capitalism always drives towards inequality. It also drives towards economic and political power being rested at the top. The reason why people are well off tell you it’s important to do more with less is that they have a fundamental poverty of aspiration about this country. They don’t particularly care as the most well off are getting even more well off. This is an economic recovery for the few. The economy is not going to grow on the back of a record people with zilch employment rights under “zero hours contracts”. The economy is not going to grow either on the back of a property-boom based in London, even if a sufficiently large number vote Conservative as a result of a bounce in their property prices.

What there is a risk of, however, is socialism being popular, and this of course goes beyond the follower number of a few certain individuals on Twitter. Across a number of decades, particularly in Sweden and Cuba, we’ve been able to learn good lessons about what has happened in the worlds of communism and social democracy, as a counterpoint to capitalism. Tony Benn, when asked to give an example of ‘market forces’, would always cite the person sleeping rough under Waterloo Bridge. The Labour Party, most recently, in large part to Tony Blair being ideologically being ‘of no fixed abode’, has run away from socialism, meaning narratives such as Jackie Ashley’s recent piece are consciously limp and anaemic, a self-fulfilling prophecy of utmost disappointment. There is no sense of equality, cooperation or solidarity, and these ought to be traits which are found to be at the heart of Labour’s policy. If Ed Miliband hasn’t thought of how the answer to ‘Now what?’ fulfils those aims, it’s time he had started thinking about. With this, he can not only build a political party, but build a mass movement. With people choosing to become members of unions, and there is no better time with such a naked onslaught on employment rights, the Labour movement could become highly relevant, not just to very poor working men. Labour has to move with the times too; it needs to move away from reactionary ‘identity politics’, and seek to include people it hasn’t traditionally engaged in a narrative with. This might include the large army of citizens who happen to be disabled or elderly. There is no doubt that a socialist society needs the economy to succeed; if it is really true that the UK sets to be in a dominant position in Europe by 2030, surely the media should be helping the UK perform a positive rôle as a leader. The economy involves real people, their wages, their energy bills, their employment rights, so while it is all very easy to be po-faced about “the cost of living”, or have foodbanks in your line of blindsight, Labour needs to be a fighting force for many more people who otherwise don’t feel ‘part of it’. It should be the case that a vote should buy you influence in shaping society, in as much as the way to buy influence, say in the NHS, is to become a Director of a private health multinational company. This fight against how capitalism has failed can indeed become the alternative to commercial and trade globalisation; a peaceful transition into this type of society is one which the more advanced economies like ours is more than capable of.

Where Labour has thus far been quite successful in trying to make its policies look acceptable to the wider public is courting the opposition. Many would say they have taken this too far. Labour might wish to ‘look tough on welfare’, but Labour can easily advocate employed work being paid for fairly, while being fiercely proud of a social security system which looks after the living and mobility needs of people who are disabled. A radical look at ‘working tax credits’ is possibly long overdue, but Labour will need to get out of its obsession for triangulation to do that. If Labour merely offers a ‘lighter blue’ version of the Conservatives, members of the public will be unimpressed, and boot Labour out asap. Whilst Wilson and Blair both won a number of periods of government, the jury is out especially with what Blair achieved in reality aside from the national minimum wage (which was only achieved with the help of the unions). Many people feel that privatisation was a continuous narrative under Labour as it had been for the Conservatives, and many Labour voters feel intrinsically disgusted at the thought of Tony Blair being Margaret Thatcher’s greatest achievement. People instead of being liberalised by markets have now become enslaved by them. Across a number of sectors, there are only a handful of competitors who are able to rig the prices lawfully between them. The consumer always loses out, and the shareholders with minimal risk receive record profits year-on-year. Of course, rejection of privatisation does not necessarily mean nationalisation, in the same way that decriminalisation of illegal drugs does not necessarily mean legalisation. But it cannot be ignored that some degree of State ownership is a hugely popular idea, such as for the NHS, Royal Mail and banks. Where Ed Miliband might be constructively compared to Fidel Castro (in the days when things were going well for Castro) is that Miliband can set out a vision for a sufficient long period of time for people to become attracted to it (not disenfranchised by it). Thatcher, for all her numerous faults, was very clear about what she intended to achieve. As Tony Benn put it, she was not a “weather vane” but a “weather cock which is set in a direction… it just happened that I totally disagreed with the direction which she set.”

I think Ed Miliband will surprise people, exactly as he has done so far, in winning the general election on May 8th 2015. I also feel that he will surprise people by having answers to the “And then what?” bit too.

The solution to the current malaise is not more extreme social democracy



 

 

http://livingwelldementia.org

 

There’s an argument from some that more trenchant tax rises, such as VAT or income tax, and ‘getting more from less’, will be enough to see through an incoming Labour government led by Ed Miliband.

Put quite simply, I don’t think this will be nearly enough. It would the best Labour could come to retoxifying its own brand, reestablishing its credentials as a ‘tax and spend’ government. In fact, for the last two decades, the taxation debate has got much more complicated due to an issue nobody wishes to admit. That is: you’re not actually using taxpayers’ money to go into the salaries or wages of employees of the State, you’re increasingly using this tax to subsidise the shareholder dividends of directors of outsourced public functions (such as beneficiaries of health procurement contracts). Whether you like it or hate it, and let’s face it most people are ambivalent to it, resorting to this would ignore all the groundwork the Miliband team has done on “pre-distribution”. Forgetting this actual word for the moment, making the economy work properly for the less well-off members of society should be an explicable aim of government on the doorstep. Putting the brakes on the shock of energy bills, from fatcat companies, is a reasonable self-defence against an overly aggressive market which has swung too far in much favour of the shareholder and director. Paying people a living wage so that they’re not so dependent on State top-ups to survive is as close as you can get to motherhood and apple pie. Even Boris Johnson supports it.

Of course, Ed Miliband’s natural reaction as a social democrat would be try and survive government as a social democrat. But that doesn’t get round the problem experienced by a predecessor of his, Tony Blair. When Tony Blair had his first meeting with Robin Butler (now Lord Butler of Brockwell), Butler asked, “I’ve read your manifesto, but now what?” Ed Miliband has low hanging fruit to go better than Tony Blair on his first day in office if he can come up with clear plans for office and government.

Let’s get something straight. I don’t agree that the scenario which must be proven otherwise is that Ed Miliband will come into Downing Street only enabled by Liberal Democrat voters. There are plenty of former Liberal Democrat voters who feel deeply disgusted by Nick Clegg not acting as the ‘brake’ to this government, but as the ‘accelerator pedal’. They have seen Clegg’s new model army vote for tuition fees, privatisation of the NHS, and welfare reforms, as if there is no tomorrow. And for many of his MPs, there will be no tomorrow. Clegg’s operating model of supplying votes for whichever party happens to be his employer is clearly unsustainable, as within two periods of office, his flexible corpus of MPs would end up repealing legislation that they helped to introduce to the statute books.

In answer to the question, “What do we do now?”, Ed Miliband does not need to reply with a critique of capitalism. Miliband will have to produce a timeline for actions which he has long promised, such as implementation of a national living wage, controlling seemingly inexorable increases in energy bills, as well as other ‘goodies’ such as repealing of the Health and Social Care Act (2012).

Andy Burnham MP, Shadow Secretary of State for Health, has already explained some of the ‘and then what’. Burnham has insisted that he will make existing structures ‘do different things’. But while getting of compulsory competitive tendering, Burnham needs to put ‘meat on the bones’ on how he intends to make the NHS work without it being a quasimarket. Burnham’s challenges are not trivial. Burnham seemingly wishes to maintain a system of commissioning, while intending to abolish the purchaser-provider split. Burnham also seemingly wishes to support local A&E departments in not being shut down, but has as not yet stated clearly what he thinks will work better than the current amendment of the Care Bill going through parliament for NHS reconfigurations. Furthermore, Burnham in advancing ‘whole person care’, in sticking to his stated unified budgets, may have to resist seeing the merging of the non-means tested NHS being merged with the means-tested social care. This might easily lead to ‘mission creep’ with merging with welfare budgets. And this brings up a whole new issue in ‘integrated care’ which Burnham has long denied has been on the agenda: “top up payments” or “copayments”. Reducing health inequalities by tackling inequalities social determinants of health should of course be well within the grasp of a socialist-facing NHS delivered by Labour. With patient safety also, correctly, a top priority for the National Health Service, especially for how frail individuals received medical care in hospitals, Burnham has in fact five timelines to develop fast as top priorities: health inequalities, commissioning, reconfigurations, whole person care, patient safety.

The global financial crash should have given some impetus to the Marxist critique of capitalism, but it didn’t. Tony Benn said famously that, when he asked to think of an example of ‘market forces’, he would think of a homeless person sleeping in a cardboard box underneath Waterloo Bridge. Benn further pointed out that the NHS was borne out of war, where normal rules on spending went out of the window: “have you ever heard of a General saying he can’t bomb Baghdad as he’s overrun as his budget?” However, it was not the global financial crash which caused there to be far too many people who feel disenfranchised from politics. Capitalism always drives towards inequality. It also drives towards economic and political power being rested at the top. The reason why people are well off tell you it’s important to do more with less is that they have a fundamental poverty of aspiration about this country. They don’t particularly care as the most well off are getting even more well off. This is an economic recovery for the few. The economy is not going to grow on the back of a record people with zilch employment rights under “zero hours contracts”. The economy is not going to grow either on the back of a property-boom based in London, even if a sufficiently large number vote Conservative as a result of a bounce in their property prices.

What there is a risk of, however, is socialism being popular, and this of course goes beyond the follower number of a few certain individuals on Twitter. Across a number of decades, particularly in Sweden and Cuba, we’ve been able to learn good lessons about what has happened in the worlds of communism and social democracy, as a counterpoint to capitalism. Tony Benn, when asked to give an example of ‘market forces’, would always cite the person sleeping rough under Waterloo Bridge. The Labour Party, most recently, in large part to Tony Blair being ideologically being ‘of no fixed abode’, has run away from socialism, meaning narratives such as Jacky Ashley’s recent piece are consciously limp and anaemic, a self-fulfilling prophecy of utmost disappointment. There is no sense of equality, cooperation or solidarity, and these ought to be traits which are found to be at the heart of Labour’s policy. If Ed Miliband hasn’t thought of how the answer to ‘Now what?’ fulfils those aims, it’s time he had started thinking about. With this, he can not only build a political party, but build a mass movement. With people choosing to become members of unions, and there is no better time with such a naked onslaught on employment rights, the Labour movement could become highly relevant, not just to very poor working men. Labour has to move with the times too; it needs to move away from reactionary ‘identity politics’, and seek to include people it hasn’t traditionally engaged in a narrative with. This might include the large army of citizens who happen to be disabled or elderly. There is no doubt that a socialist society needs the economy to succeed; if it is really true that the UK sets to be in a dominant position in Europe by 2030, surely the media should be helping the UK perform a positive rôle as a leader. The economy involves real people, their wages, their energy bills, their employment rights, so while it is all very easy to be po-faced about “the cost of living”, or have foodbanks in your line of blindsight, Labour needs to be a fighting force for many more people who otherwise don’t feel ‘part of it’. It should be the case that a vote should buy you influence in shaping society, in as much as the way to buy influence, say in the NHS, is to become a Director of a private health multinational company. This fight against how capitalism has failed can indeed become the alternative to commercial and trade globalisation; a peaceful transition into this type of society is one which the more advanced economies like ours is more than capable of.

Where Labour has thus far been quite successful in trying to make its policies look acceptable to the wider public is courting the opposition. Many would say they have taken this too far. Labour might wish to ‘look tough on welfare’, but Labour can easily advocate employed work being paid for fairly, while being fiercely proud of a social security system which looks after the living and mobility needs of people who are disabled. A radical look at ‘working tax credits’ is possibly long overdue, but Labour will need to get out of its obsession for triangulation to do that. If Labour merely offers a ‘lighter blue’ version of the Conservatives, members of the public will be unimpressed, and boot Labour out asap. Whilst Wilson and Blair both won a number of periods of government, the jury is out especially with what Blair achieved in reality aside from the national minimum wage (which was only achieved with the help of the unions). Many people feel that privatisation was a continuous narrative under Labour as it had been for the Conservatives, and many Labour voters feel intrinsically disgusted at the thought of Tony Blair being Margaret Thatcher’s greatest achievement. People instead of being liberalised by markets have now become enslaved by them. Across a number of sectors, there are only a handful of competitors who are able to rig the prices lawfully between them. The consumer always loses out, and the shareholders with minimal risk receive record profits year-on-year. Of course, rejection of privatisation does not necessarily mean nationalisation, in the same way that decriminalisation of illegal drugs does not necessarily mean legalisation. But it cannot be ignored that some degree of State ownership is a hugely popular idea, such as for the NHS, Royal Mail and banks. Where Ed Miliband might be constructively compared to Fidel Castro (in the days when things were going well for Castro) is that Miliband can set out a vision for a sufficient long period of time for people to become attracted to it (not disenfranchised by it). Thatcher, for all her numerous faults, was very clear about what she intended to achieve. As Tony Benn put it, she was not a “weather vane” but a “Weather cock which is set in a direction… it just happened that I totally disagreed with the direction which she set.”

I think Ed Miliband will surprise people, exactly as he has done so far, in winning the general election on May 8th 2015. I also feel that he will surprise people by having answers to the “And then what?” bit too.

“Ed Miliband’s Dad killed my kitten” (quoted by Ed Miliband)



do not disturb!

Ed Miliband at the Spectator Parliamentarian of the Year Awards 2013

“Only a Belgian communist could have killed a kitten like that – the RED BASTARD!” says Ed Miliband, quoting from the article.

Miliband, who won a new prize called Political Speech of the Year (for the energy freeze pledge, which ‘transformed his fortunes’), took the opportunity to read out a Sunday Sport story.

This particular story had accused his ‘Belgian communist’ father of ‘killing a cat’ when cycling through the British countryside during the war.)

You can’t trust David Cameron with the NHS



This afternoon at just after midday, David Cameron clashed with Ed Miliband over the impending A&E crisis.

The Labour Party have issued a broadcast as follows:

 

One of the exchanges was particularly revealing – also in demonstrating that David Cameron doesn’t know the brief well of an important contemporary issue in English health policy.

The exchange has been reported in Hansard today as follows:

Edward Miliband:The Prime Minister is giving P45s to nurses and six-figure payoffs to managers. Can he tell us how many of the people who have been let go from the NHS have been fired, paid off and then re-hired?

The Prime Minister:First, we are saving £4.5 billion by reducing the number of managers in our NHS. For the first time, anyone re-employed has to pay back part of the money they were given. That never happened under Labour. We do not have to remember Labour’s past record, because we can look at its record in Wales, where it has been running the health service. It cut the budget by 8.5%, it has not met a cancer target since 2008, and it has not met an A and E target since 2009. The fact is that the right hon. Gentleman is too weak to stand up to the poor management of the NHS in Wales, just as he is too weak to sack his shadow Health Secretary.

Edward Miliband:And we have a Prime Minister too clueless to know the facts about the NHS. Let us give him the answer, shall we? The answer is that over 2,000 people have been made redundant—[Interruption.] The hon. Gentleman says it is rubbish; it is absolutely true—we have a parliamentary answer from one of the Health Ministers. Two thousand people have been made redundant and re-hired, diverting money from the front line as this Prime Minister sacks nurses. [Interruption.] The Prime Minister seems to be saying it is untrue; well, if he replies he can tell me whether it is untrue. We know why the NHS is failing: his botched reorganisation, the abolition of NHS Direct, cuts to social care, and 6,000 fewer nurses. There is only one person responsible for the A and E crisis, and that is him.

Unknown to Cameron, @andyburnhammp had asked exactly the same question as @Ed_Miliband asked in #pmqs and got a reply.

The reference for this Q/A is: http://bit.ly/1ejPr3Q

 

Andy Burnham: To ask the Secretary of State for Health how many NHS staff have been made redundant and subsequently re-employed by NHS organisations on a (a) permanent basis and (b) fixed-term contract basis since May 2010. [147768]

Dr Poulter: The number of NHS staff made redundant in the NHS since 1 May 2010 and subsequently re-employed by NHS organisations on a (a) permanent basis is estimated to be 1,300 and (b) fixed-term contract basis is estimated to be 900.

These estimates are based on staff recorded on the Electronic Staff Record (ESR) Data Warehouse as having a reason for leaving as either voluntary or compulsory redundancy between 1 May 2010 and 30 September 2012, and who have a subsequent record on the ESR Data Warehouse up to 30 November 2012.

In April 2010 there were 42,515 full-time equivalent (FTE) managers. Between April 2010 and November 2012 this figure has reduced by 6,905 to 35,610 FTE.

The ESR Data Warehouse is a monthly snapshot of the live ESR system. This is the HR and payroll system that covers all NHS employees other than those working in General Practice, Moorfields Eye Hospital NHS Foundation Trust and Chesterfield Royal Hospital NHS Foundation Trust, and some NHS staff who have transferred to local authorities and social enterprises.

Thanks to @DrEoinCl for finding this.

On the sensitive issue of how many people who had been made redundant were later appointed by the NHS, which David Nicholson was asked about yesterday, David Cameron attempted a bluster with no real avail.

 

 

#pmqs

 

 

 

 

 

 

@legalaware

Ed Miliband’s ‘cost of living speech’ on 5 November 2013



** Check against delivery. **

Cost of living

It is great to be here in Battersea with you today.

Last Friday, I was in my constituency, at the local Citizens Advice Bureau.

And I talked to some people who had been preyed upon by payday lenders.

There was a woman there in floods of tears.

She was in work.

But she took out a payday loan for her deposit so she could rent somewhere to live.

And then disaster followed.

A payday loan of a few hundred pounds became a debt of thousands of pounds.

She still faces bullying, harassment and threats from multiple payday lenders.

Like the young mum I met who described sitting at home with her daughter and seeing an advert on the TV for a payday lender.

She said she was down to the last nappy for her baby.

She took out the payday loan.

And one led to many more, with her ending up spending most of the money she had each week on repayments and charges.

She was so frightened by the harassment she faced that she had given her mobile phone to her mum.

Her mum showed me the phone and told me that she’d had fifteen calls that day.

The woman who worked at the CAB said the problem had got far, far worse in the last couple of years.

She said: “payday lenders are running riot through people’s lives in this community.”

Yesterday Wonga released a film all about themselves.

And last night the boss of Wonga said he was speaking for the ‘silent majority’, who are happy with their service.

But the truth is he wants us to stay silent about a company where in one year alone their bad debts reached £120 million.

An industry in which seven out of ten customers said they regretted taking out a loan.

With half saying they couldn’t pay it back.

Payday lenders don’t speak for the silent majority.

They are responsible for a quiet crisis of thousands of families trapped in unpayable debt.

The Wonga economy is one of the worst symbols of this cost of living crisis.

And as I listened to these stories, my overwhelming thought was: how is this being allowed to happen in Britain, 2013?

Because these stories of payday lenders are just one part of the cost of living crisis facing families across our country.

Low skilled jobs.

Wages that are stagnating.

Predatory behaviour by some companies.

This isn’t just an issue for the lowest paid, it affects the squeezed middle just as much.

A country where a few at the top do well, but everybody else struggles.

This is not just an issue facing Britain.

It is the issue facing Britain.

It is about who our country is run for.

How it is run.

And whether we believe we can do better than this.

I do.

The Nature of the Problem

Now, David Cameron said recently that I wanted to “talk about the cost of living” because I didn’t want to talk about “economic policy.”

So we have a Prime Minister who thinks we can detach our national economic success from the success of Britain’s families and businesses.

He doesn’t seem to realise that there is no such thing as a successful economy which doesn’t carry Britain’s families with it.

And he obviously doesn’t get that the old link between growth and living standards is just broken.

Growth without national prosperity is not economic success.

The first and last test of economic policy is whether living standards for ordinary families are rising.

And the scale of the problem is familiar to millions of people in our country.

The official figures say that on average working people are £1,500 a year worse off than they were at the election.

And it has happened because prices are rising faster than wages.

In 39 out of the 40 months that David Cameron has been Prime Minister.

But the average doesn’t tell you the whole story.

We don’t just need average wages to creep higher than prices.

For people to be genuinely better off, we have to do much better than that.

Ordinary families are hit harder than average by higher prices.

They rely more on expensive basic necessities, like electricity and gas.

And ordinary families do worse than the average when it comes to wage increases.

Because those increases are scooped by a few at the top.

Chief executive pay went up by 7 per cent last year.

When everyone else’s wages were falling.

We can’t just make do and mend.

We need to do much better than we are.

Can Anything Be Done?

And that means we can’t just carry on as we are.

We have to permanently restore the link between growth and living standards for all of Britain’s working people.

This Government can’t do it.

And the reason is because they are wedded to Britain competing in a race to the bottom.

Listen to their silence on our plans for a living wage.

Nothing to say.

On the falling value of the minimum wage.

Nothing to say.

On zero-hours contracts.

Nothing to say.

On the exploitation of low-skill migrant labour which undercuts wages.

Nothing to say.

They’re silent because of what they believe in.

In his speech to the Conservative Party Conference, George Osborne described my argument that they believed in a race to the bottom as something straight out of “Karl Marx” and “Das Kapital.”

No.

He’s wrong.

It is about what is happening in this capital city.

Right here.

And towns and cities across the country.

Right now.

Now, they think that this low wage economy is the best we can do.

Because they believe doing anything about it means intervening in markets in ways that we shouldn’t.

I disagree.

A dynamic market economy, with profitable private sector companies is essential for creating the wealth we need.

But markets always have rules.

The question is: what do those rules allow?

And what do they encourage?

Do they encourage companies to create high-skill, high-wage jobs, as part of a race to the top?

And provide the support they need to do so?

Or do they encourage a race to the bottom of low wages and low skills?

Do the rules mend broken markets?

Or allow some firms to take advantage of broken markets at the expense of everybody else?

All governments set rules for what they want to see.

This Government does intervene in markets but in the wrong way.

They make it easier to fire people.

Water down rights for agency workers.

Turn a blind eye to the failure to pay the minimum wage.

Pushing companies to compete on low wages, low skills and worse terms and conditions.

They introduce tax cuts for the richest.

Defend bonuses for the bankers.

Stand up for a powerful few.

Supporting their belief that wealth will trickle down from those at the top to everybody else.

Don’t believe it when they say they are stepping away, they are stepping in all the time, stepping in to stand up for the wrong people.

High hopes for those at the top.

Low expectations for everyone else.

A race to the bottom.

When what we need is a race to the top.

Dealing with the Cost of Living Crisis: Jobs

To win that race to the top, we are going to earn and grow our way out of this cost of living crisis.

Not by spending money we don’t have.

Because we have to bring the deficit down.

But by building a different kind of economy.

One that really works for working people.

That starts with the jobs our country creates.

David Cameron is still on his lap of honour.

To celebrate how brilliantly he has done.

In the slowest recovery for a hundred years.

We still face a massive challenge of creating jobs in this country.

There are still nearly two and half million people unemployed in Britain and nearly a million young people are still looking for work.

And when we look at the jobs in our economy, too many are low paid, part-time and temporary.

Half of new jobs have been in low paid sectors of the economy.

We have 1.4 million people working part-time when they want full-time work.

More than ever before.

And we’ve got more people in a temporary job because they can’t find a permanent one.

The Tories don’t think we can do anything about it.

They think it is the way we compete with China and India.

But they are wrong.

A Labour government will put all our country’s effort into winning a race to the top.

And that means taking action on both the quantity and quality of jobs that we are creating.

We can only win a race to the top if we transform our vocational education system and apprenticeships in this country, which is what we will do.

We can only win a race to the top if we radically transform the way we support business in every part of our country, with a proper regional banking system learning the lessons of Germany, which is what we will do.

We can only win a race to the top if we support the small businesses that will create the jobs of the future, by cutting business rates, which is what we will do.

We can only win a race to the top if we help parents get back to work and start earning to support their families by extending childcare for working parents to 25 hour a week, which is what we will do.

And we can only win a race to the top with a proper industrial policy, including for environmental jobs, which is what we will do.

All this is about re-engineering the British economy so that we make a difference to the kinds of jobs we create.

You can’t do it if you believe in a race to the bottom.

You can only do it if you believe in a race to the top.

Dealing with the Cost of Living Crisis: Wages

So dealing with the cost of living crisis starts with jobs.

But it is also about wages.

Wages for millions of people have been in decline for far too long.

I am talking about people battling to do the right thing and struggling and struggling.

Hard, honest work, in supermarkets, on building sites, in call centres.

Working harder, for longer, for less.

We have a low pay emergency in this country.

Five million people now paid less than the living wage.

Working for their poverty.

Up at least 1.4 million in just the last four years.

To one in five of all employed workers.

More of Britain’s poor children today are being brought up in working families than in jobless families.

And low wages aren’t just bad for working people.

They cost money in benefits too.

As the country has to subsidise more and more low paid jobs with higher and higher tax credits and benefits.

The government now pays more out on tax credits and benefits to those in work than it does for who are unemployed.

So to those who say we can’t afford to do anything about wages in our country today:

I say we can’t afford not to.

And many businesses now recognise that a low pay economy is bad for them too.

I was in Bristol last Thursday night talking to cleaners who are paid the living wage.

They told how proud to work for a firm like that.

Better pay means lower turnover of staff.

Higher productivity.

So we have to end the scandal of poverty pay in this country.

We would strengthen the minimum wage, which has lost 5 per cent of its value under this government.

We are looking at the case for higher minimum wages in particular sectors of the economy, like financial services, where they can afford to pay more.

And we will go further than that too.

That is why the next Labour government from its first day in office, will offer “make work pay” contracts to employers all over Britain.

It is a simple deal.

For the first year of a Labour government, we will say to every firm:

You start to make work pay, through a living wage.

And we will give you a 12 month tax rebate of 32p for every extra pound they spend.

Make work pay contracts will raise wages, keep the benefit bill down and tackle the cost of living crisis.

It is a good deal for workers, business and the taxpayer too.

And by tackling low pay we won’t just strengthen our economy, we will strengthen our society as well.

It is not good for our country for people to be working 60 or 70 hours a week, doing 2 or 3 jobs, not having time to see their kids.

We will change it.

Under a One Nation Labour government: work will pay.

Dealing with the Cost of Living Crisis: Broken Markets

And tackling the cost of living crisis is also about ensuring markets work for working people.

And that means fixing markets when they are broken.

This power station was built in the 1920s after a Conservative government intervened to fix a broken energy market.

That government, of Stanley Baldwin, knew that if government didn’t fix broken markets, nobody else was going to.

Stanley Baldwin knew it.

John Major seems to understand it.

But David Cameron doesn’t.

His response to Labour’s energy price freeze shows how out of the mainstream he is.

He took issue with the whole idea of government intervention in a broken market.

Ever since, on energy he seems to have had a different policy every day of the week.

But what we know is that we can never expect him to stand up to the energy companies, because they are a large and powerful interest.

It is not who David Cameron is.

It is not what he does.

He stands up to the weak, never to the strong.

For the next eighteen months, people will hear scare stories from the unholy alliance of the energy companies and David Cameron.

The Big Seven.

It will just reinforce in people’s minds who he stands up for.

The six large energy companies.

Not the 60 million people of Britain.

Today, new figures confirm that most of the recent price rises weren’t caused by government levies or by a rise in wholesale prices.

But are the direct result of a broken market.

For the average increase in the price for electricity and gas since 2011, over half went straight to the costs and profits of the companies themselves.

This shows exactly why we need a price freeze now.

Because only a price freeze will protect customers while we re-set the market.

A price freeze until 2017 will happen if Labour wins the election.

A freeze that will benefit 27 million families and 2.4 million businesses.

It is workable and it will happen.

And tomorrow, Parliament will vote on that price freeze.

So Conservative and Liberal Democrat MPs could vote for it now.

And if they line up against it, the British people will know the truth:

This Government is on the side of the big energy companies not hard-pressed families.

And our price freeze until 2017 will pave the way for us to radically improve the energy market for the long term.

We will publish an Energy Green Paper for:

A regulator that can cut unjustified price rises.

A ring fence between the generation and supply businesses of the energy companies, so there is proper transparency.

Forcing energy companies to trade the energy they produce in the open market.

And a new simple tariff structure that people can understand.

So we will change the way the energy market works.

In a way that will provide long-term confidence for investors and a better deal for consumers.

And we will mend other markets that aren’t working in the public interest.

Opening up competition in banking.

A cap on the cost of credit in payday lending.

Proper regulation of our train companies.

Ending unjustified charges and fees in the private rented sector.

And new social tariffs in the water industry.

The Conservative Party defends broken markets and the few people that profit from them.

I am proud that the Labour Party stands up for markets that work for working people.

The next general election will offer a big choice.

A choice about whether we tackle the cost of living crisis or shrug our shoulders.

A choice about whether we run a race to the top or a race to the bottom.

A choice about whether we reform broken markets or defend them.

A choice about how we succeed as a country.

Above all, the choice will be about who our country is run for.

There is a Tory vision for Britain that has low expectations for what most people should be able to expect.

Payday lenders can prey on the vulnerable.

Millions of families see stagnating living standards.

Energy companies can just carry on as they are, ripping off consumers.

My vision is different.

We can run Britain in a different way.

Different from the past.

Building a different future for our country.

Where ordinary people feel the country is run for them.

In their interests.

And for their future.

Earning our way to a better standard of living.

Sharing rewards fairly.

And making markets work for people, not the other way round.

Britain can do better than this.

And that’s what One Nation Labour will do.

Ed Miliband should best avoid the Harold Wilson 'razzle dazzle'?



This is when Harold Wilson lost the UK general election on June 18th, 1970.

David Dimbleby was doing an ‘inquest’, in Wilson’s own words, as to what happened.

Wilson attributes, partly, his election defeat to so many people ‘staying at home’, because there was a cigarette paper difference in policies between the Conservatives and Labour. The ‘millions of votes’ problem still persists to this day, arguably. For example, Labour and the Conservatives do not substantially differ on the McKinsey ‘efficiency savings’, free schools and ‘high speed 2′. Labour has not said it would reverse the closure of English law centres. Of course, Labour supporters and members will wish to point out that there are clear differences in areas of social justice, for example repealing the bedroom tax. At the time, the economy appeared to be recovering. Currently, the UK economy appears to be recovering, although not many people would like to hazard the epithet ‘green shoots’ for it.

Where Ed Miliband has a relative luxury compared to Harold Wilson is that his party is relatively united. Despite the issues about Labour wishing to reform its relationship with the Unions, it cannot be claimed that members of the Unions are at each other’s throats as in the old days. The Conservatives will be arguing, no doubt, that Labour should not be the beneficiaries of the ‘new-found’ ‘economy strength’ on May 7th 2015. The economy which Labour inherits in 2015 will have the same fault lines, however. There will still be competition problems in the privatised industries such as energy and water. Workers will have even weakened employment rights in areas such as unfair dismissal. Right-wing commentators still advocate that the Conservatives are ahead on the economy, but all the polling evidence suggests that Labour is ahead on issues to do with the economy, such as employment rights and utility bills.

In 1970, the Conservatives highlighted a different ‘cost of living’ crisis. However, the reasons for that particular crisis were rather different then:

The cost of living has rocketed during the last six years. Prices are now rising more than twice as fast as they did during the Conservative years. And prices have been zooming upwards at the very same time as the Government have been taking an ever-increasing slice of people’s earnings in taxation. Soaring prices and increasing taxes are an evil and disastrous combination.

Inflation is not only damaging to the economy; it is a major cause of social injustice, always hitting hardest at the weakest and poorest members of the community.

The main causes of rising prices are Labour’s damaging policies of high taxation and devaluation. Labour’s compulsory wage control was a failure and we will not repeat it.

The Labour Government’s own figures show that, last year, taxation and price increases more than cancelled any increase in incomes. So wages started chasing prices up in a desperate and understandable attempt to improve living standards.

Other countries achieve a low-cost high-wage economy. So can we. Our policies of strengthening competition will help to keep down prices in the shops. Our policies for cutting taxes, for better industrial relations, for greater retraining, for improved efficiency in Government and industry – all these will help to stimulate output. This faster growth will mean that we can combine higher wages with steadier prices to bring a real increase in living standards.

The issue of whether our economy is a ‘low wage’ one has now become a powerful issue given the ‘record number of people in employment’ claim. The number of people who are paid less than a “living wage” has leapt by more than 400,000 in a year to over 5.2 million, and this single finding contributes to the idea that the economic recovery is failing to help millions of working families. A report for the international tax and auditing firm KPMG also shows that nearly three-quarters of 18-to-21-year-olds now earn below this level – a voluntary rate of pay regarded as the minimum to meet the cost of living in the UK. The KPMG findings highlight difficulties for ministers as they try to beat back Labour’s claims of a “cost of living crisis”. The London mayor, Boris Johnson, has announced a new, higher rate for the living wage in the capital, while in a speech tomorrow, Ed Miliband, will flesh out how his party will create economic incentives for companies to adopt the living wage. There is therefore a curious political consensus emerging between Ed Miliband and Boris Johnson, in a way that will midly concern David Cameron at least.

A famous headline from “The Bulletin” of December 23rd 1964 states that, “Prime Minister Harold Wilson has confounded critics in Britain with razzle-dazzle tactics.”

The opening paragraph states that Harold Wilson greatly admired the election-winning tactics of the late President Kennedy. In November, it will be 50 years since John F. Kennedy’s assassination, and David Miliband has written a nice article in the Times to explain what JFK means to him. Whilst there has been some problem with this project accelerating from standstill, Labour seems on-track again to support the Conservatives over ‘high speed 2′. But, even not that long ago in August 2013, it was reported that the Institute of Directors had become the first large business group to call for the planned high-speed rail link between London and the north to be scrapped, saying the £50bn project would be a “grand folly”.

Whilst the circumstances surrounding the Harold Wilson governments are different today, one noteworthy criticism of the Wilson approach is that he seemed to promise simple solutions for complex problems. Ed Miliband is equally at danger of this, in claiming that he will be able to solve the energy prices problem with a price freeze. His team are at great pains to point out that the price freeze is only part of the strategy. The rest of it involves reforming the market and the regulatory framework overseeing the market. One of Ed Miliband’s favourite catchphrases, in as much that he has them, is that he wishes to be the person who ‘underpromises and overdelivers, not overpromises and underdelivers’. This is of course prone to accidental mix-up like his other catchphrase, “We promise to freeze prices not pensioners” (which has already been misquoted by Chris Leslie MP as, “We promise to freeze pensioners not prices”, on BBC’s “Any Questions” recently.)

In the criticism to end all criticisms, it’s been mooted that Harold Wilson was not in fact a socialist at all, but a Liberal. This may seem pretty small fry compared to the idea that Nick Clegg is in fact a Tory. But Ed Miliband may not be a socialist either. I still feel he is essentially a social democrat. Anyway, whatever label you decide to give Ed Miliband is not particularly relevant in a sense. Miliband’s first concern must be to win his election for his party and his own political career. Supporters of Wilson and Blair are keen to point out that they won four and three general elections, respectively. However, it is also true that many feel that their Labour governments were essentially trying to ‘do things better’ rather radically changing things. The criticism has been made of both periods of government that Labour let down the working class vote. The cardinal criticism is that their periods of government were essentially missed opportunities, even if Blair was more of a ‘conviction politician’ than Wilson.

Time will tell whether Ed Miliband will emulate the “successes” of Wilson or Blair; or whether he can go better.

Many posts like this have originally appeared on the blog of the ‘Socialist Health Association’. For a biography of the author (Shibley), please go here.

Shibley’s CV is here.

My blog on dementia is here: http://livingwelldementia.org

Ed Miliband should best avoid the Harold Wilson ‘razzle dazzle’?



This is when Harold Wilson lost the UK general election on June 18th, 1970.

David Dimbleby was doing an ‘inquest’, in Wilson’s own words, as to what happened.

Wilson attributes, partly, his election defeat to so many people ‘staying at home’, because there was a cigarette paper difference in policies between the Conservatives and Labour. The ‘millions of votes’ problem still persists to this day, arguably. For example, Labour and the Conservatives do not substantially differ on the McKinsey ‘efficiency savings’, free schools and ‘high speed 2′. Labour has not said it would reverse the closure of English law centres. Of course, Labour supporters and members will wish to point out that there are clear differences in areas of social justice, for example repealing the bedroom tax. At the time, the economy appeared to be recovering. Currently, the UK economy appears to be recovering, although not many people would like to hazard the epithet ‘green shoots’ for it.

Where Ed Miliband has a relative luxury compared to Harold Wilson is that his party is relatively united. Despite the issues about Labour wishing to reform its relationship with the Unions, it cannot be claimed that members of the Unions are at each other’s throats as in the old days. The Conservatives will be arguing, no doubt, that Labour should not be the beneficiaries of the ‘new-found’ ‘economy strength’ on May 7th 2015. The economy which Labour inherits in 2015 will have the same fault lines, however. There will still be competition problems in the privatised industries such as energy and water. Workers will have even weakened employment rights in areas such as unfair dismissal. Right-wing commentators still advocate that the Conservatives are ahead on the economy, but all the polling evidence suggests that Labour is ahead on issues to do with the economy, such as employment rights and utility bills.

In 1970, the Conservatives highlighted a different ‘cost of living’ crisis. However, the reasons for that particular crisis were rather different then:

The cost of living has rocketed during the last six years. Prices are now rising more than twice as fast as they did during the Conservative years. And prices have been zooming upwards at the very same time as the Government have been taking an ever-increasing slice of people’s earnings in taxation. Soaring prices and increasing taxes are an evil and disastrous combination.

Inflation is not only damaging to the economy; it is a major cause of social injustice, always hitting hardest at the weakest and poorest members of the community.

The main causes of rising prices are Labour’s damaging policies of high taxation and devaluation. Labour’s compulsory wage control was a failure and we will not repeat it.

The Labour Government’s own figures show that, last year, taxation and price increases more than cancelled any increase in incomes. So wages started chasing prices up in a desperate and understandable attempt to improve living standards.

Other countries achieve a low-cost high-wage economy. So can we. Our policies of strengthening competition will help to keep down prices in the shops. Our policies for cutting taxes, for better industrial relations, for greater retraining, for improved efficiency in Government and industry – all these will help to stimulate output. This faster growth will mean that we can combine higher wages with steadier prices to bring a real increase in living standards.

The issue of whether our economy is a ‘low wage’ one has now become a powerful issue given the ‘record number of people in employment’ claim. The number of people who are paid less than a “living wage” has leapt by more than 400,000 in a year to over 5.2 million, and this single finding contributes to the idea that the economic recovery is failing to help millions of working families. A report for the international tax and auditing firm KPMG also shows that nearly three-quarters of 18-to-21-year-olds now earn below this level – a voluntary rate of pay regarded as the minimum to meet the cost of living in the UK. The KPMG findings highlight difficulties for ministers as they try to beat back Labour’s claims of a “cost of living crisis”. The London mayor, Boris Johnson, has announced a new, higher rate for the living wage in the capital, while in a speech tomorrow, Ed Miliband, will flesh out how his party will create economic incentives for companies to adopt the living wage. There is therefore a curious political consensus emerging between Ed Miliband and Boris Johnson, in a way that will midly concern David Cameron at least.

A famous headline from “The Bulletin” of December 23rd 1964 states that, “Prime Minister Harold Wilson has confounded critics in Britain with razzle-dazzle tactics.”

Newspaper extract

The opening paragraph states that Harold Wilson greatly admired the election-winning tactics of the late President Kennedy. In November, it will be 50 years since John F. Kennedy’s assassination, and David Miliband has written a nice article in the Times to explain what JFK means to him. Whilst there has been some problem with this project accelerating from standstill, Labour seems on-track again to support the Conservatives over ‘high speed 2′. But, even not that long ago in August 2013, it was reported that the Institute of Directors had become the first large business group to call for the planned high-speed rail link between London and the north to be scrapped, saying the £50bn project would be a “grand folly”.

Whilst the circumstances surrounding the Harold Wilson governments are different today, one noteworthy criticism of the Wilson approach is that he seemed to promise simple solutions for complex problems. Ed Miliband is equally at danger of this, in claiming that he will be able to solve the energy prices problem with a price freeze. His team are at great pains to point out that the price freeze is only part of the strategy. The rest of it involves reforming the market and the regulatory framework overseeing the market. One of Ed Miliband’s favourite catchphrases, in as much that he has them, is that he wishes to be the person who ‘underpromises and overdelivers, not overpromises and underdelivers’. This is of course prone to accidental mix-up like his other catchphrase, “We promise to freeze prices not pensioners” (which has already been misquoted by Chris Leslie MP as, “We promise to freeze pensioners not prices”, on BBC’s “Any Questions” recently.)

In the criticism to end all criticisms, it’s been mooted that Harold Wilson was not in fact a socialist at all, but a Liberal. This may seem pretty small fry compared to the idea that Nick Clegg is in fact a Tory. But Ed Miliband may not be a socialist either. I still feel he is essentially a social democrat. Anyway, whatever label you decide to give Ed Miliband is not particularly relevant in a sense. Miliband’s first concern must be to win his election for his party and his own political career. Supporters of Wilson and Blair are keen to point out that they won four and three general elections, respectively. However, it is also true that many feel that their Labour governments were essentially trying to ‘do things better’ rather radically changing things. The criticism has been made of both periods of government that Labour let down the working class vote. The cardinal criticism is that their periods of government were essentially missed opportunities, even if Blair was more of a ‘conviction politician’ than Wilson.

Time will tell whether Ed Miliband will emulate the “successes” of Wilson or Blair; or whether he can go better.

For Ed Miliband, can it be a simple choice between the State and the markets?



 

 

 

David Skelton once produced a very interesting document called ‘Renewal’ which had as its aim explaining various ways in which the Conservative Party could extend its appeal to voters nationally. Instead, it has become a rather convenient checklist for the Left to annotate how it has come to be that the Conservative Party under David Cameron has deteriorated so precipitously.

For Ed Miliband, can it be a simple choice between the State and the markets? In a way, of course ‘yes’. You can answer this question by saying you can’t be ‘half-libertarian’ or ‘half-socialist’. The problem here is that a legacy of the Thatcherite era has been for Labour to triangulate itself both into and out of government. The fervour for a ‘third way’ has meant that even that a “progressive” brand of politics from the left has become problematic. Even the incorrigible David Miliband was getting nostalgic about progressive politics this morning in the context of energy prices.

‘Responsible capitalism’, whilst a coherent concept in economic theory and practice, does have a political semblance of trying desperately to make capitalism work. The fundamental desire of responsible capitalism is to make capitalism make for both the company and for society, given an ‘assumption’ that a company’s directors must deliver a positive dividend for its shareholders to remain in business. That it has, however, been justified more in terms of delivering a competitive advantage for businesses more than being a worthy ethos in itself should raise eyebrows on its own. Its analogy for NHS hospitals is that safe hospitals delivers some sort of competitive advantage, meaning a patient should prefer to go to a safer hospital, rather than being a necessary and proportionate ideological drive in itself.

One might not be able to ‘hate markets’ in the same way that it is possible to ‘hate people’, but the ideological drive against markets often fails to draw the distinction between a contempt for the consequences of some markets, and a contempt for the markets themselves. On that point, markets can be compared to religions. It might be easier to draw up a list against fanatics of certain religions than the religions themselves. Markets which come anywhere close to perfect competition, rare as they are, can deliver good customer value on the basis of the good relationship between supply and demand. The voters Ed Miliband perhaps hopes target to get him into Downing Street are possibly not that much interested in the difference between perfect competition, an oligopoly or a monopoly. However, they might share ‘the state of shock’ when they open their exorbitant energy bill.

I suppose Ed Miliband is hoping people will wish to blame the market and to blame politicians. I don’t suppose Ed Miliband realistically wishes people to embrace socialism on the basis of the rejection of the market. If he were to achieve this, he would be achieving something which had not been achieved with the failure of the securitised American mortgage products when the US market ‘overheated’ around 2008. However, the problem with this strategy is that people might begin to blame the politicians who actually were in charge at the time. Whatever the deconstruction of the energy bill per se, for example in the contribution of ‘green taxes’ which the Liberal Democrats may or may not support for their short-term political dividend, the fundamental failure was the State either creating or failing to stop a faulty market of six players instead of fourteen. Ed Miliband is able to do this, because people see the size of their energy bills. David Cameron is hoping to do this with water bills next week. And so it goes on. As Tony Benn says, most politicians aren’t in the business because they fundamentally wish to change things. They are in the business they want to appear to be managing things ‘a bit better’.

There will be some Labour voters who would prefer Ed Miliband to adopt this approach, to get his team into Downing Street rather than to produce a manifesto of unworkable policies. The ‘cost of living’ gulf, compared to real income, has undoubtedly been a success for Ed Miliband to shift the narrative from a rather dry discussion of the deficit and Labour spending too much to the real day-to-day lives of people. And it is helpfully a policy which appears to bridge the Left and Right. Another such issue is ‘the living wage’, which many expect Labour to adopt as a flagship policy in their 2015 manifesto. Miliband’s drive to incentivising private companies into providing a living wage for the wonks will be predistribution. For others, it will be attempting to solve a problem to do with the unfairness of a policy at the source. Miliband will successfully be able to produce the rather Aunt Sally argument that such an approach from multinationals is far better than those multinationals fleecing the worker on less than the minimum wage, and for the State having to make up the difference somehow. The trick for Ed Miliband must be to frame the argument on his terms, like he’s framed the argument on the economy on his terms. Given that the mayor of London and the Evening Standard are about to ‘big up’ the policy from their vantage points on the right, and that Matthew d’Ancona says, for example, that Chuka Umunna is one of the most impressive young politicians he has ever met, means that David Cameron cannot afford to sit on his laurels for too long over this one.

When people point to the fact that the Conservatives appear to be more ‘trusted on the economy’, they tend to ignore almost unanimously that Labour is trusted more than the Conservatives on the basis of utility bills and workers’ rights. That Nick Clegg and his colleagues in the Liberal Democrat Party have turned their party into an irrelevant wooly-hat and sandals -wearing brigade is no minor feat. Crucially, there is absolutely no doubt that the narrative has changed. This means that David Cameron has now next to chance in leading his Conservative Party to a first election victory for years. No doubt there will be numerous column inches written on where it all went wrong for the Conservatives in times to come, but there will be some who say victory is still within his grasp. Even with the boundary changes. Even in producing a stagnant economy for three years. Even in producing the worst winter A&E crisis for years. Even in causing a climate for rent-seeking fiascos in the outsourced provision for services. Even for closing down legal aid in England and Wales. David Cameron does, nonetheless, need a miracle.

The critical thing now is for Ed Miliband to win the election. It is clear David Cameron has already lost it. People, I suspect, won’t be that much interested in an Oxbridge tutorial-style explanation of the failure of markets coming from the Left. The usual things will come to dominate the campaign: Labour defending its record of ‘spending too much’ and ‘letting too many immigrants in’. It’s not so much that the Conservative record is stuck, it’s more of a problem that it’s well-and-truly broken. Ed Miliband has produced his cake, in the manner of an overscrutinised contestant for the ‘Great British Bake-Off’. And the bad news keeps on coming. The excessive profits from hedge funds, allegedly, on the Royal Mail privatisations. The dodgy conflicts-of-interest allegedly in the turbo-boosted market of the NHS. Certainly David Cameron and crew have to worry when criticisms of a giant rat produced by a Union fail to produce much other than a reaction from Labour that any intimidating behaviour from the Unions is to be deplored. The giant rat nonetheless has given a lot of air-time to how the company achieved quite a good deal, but the works of Grangemouth. And you have to worry, if you’re on the Right, when there’s a huge cheer for Paris Lees even slightly mooting the idea of state ownership of energy, water, and – you guessed it – the National Health Service.

The 2015 general election is there to lose. Anything or anyone will be able to throw Ed Miliband off course, such as a rapidly improving economy (this happened for Ted Heath in the early 1970s). If the economy is not rebalanced, however, as many suspect, with too few private companies running badly critical functions which had been the preserve of the State, the Conservative Party will be in trouble. On that occasion, the well-worn anecdotes of ‘do you want a State-run delivery van service like the 1970s?’ or ‘do you remember when you had to wait six months for British Telecom to fix your phone line?’ will become even more mind-numbingly boring than they are now.

The most spectacular phenomenon to happen was not Ed Miliband suddenly making an intellectual debate between the State and markets sexy. It was the failure of the Conservative Party to observe the most cardinal of market principles, ironically. That is – if you’re an antiquated ‘incumbent’ – you lose all flexibility and fail to adapt. It is this failure to adapt that many feel will cost the Conservative Party dear in 2015.

 

Many posts like this have originally appeared on the blog of the ‘Socialist Health Association’. For a biography of the author (Shibley), please go here.

Shibley’s CV is here.

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