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What does Ed Miliband really think?



Steve Richards, political columnist for the Independent, recently produced a fascinating portrayal of Ed Miliband. If you missed the programme, you can listen to it here on the BBC website.

I have always felt that David Cameron is in office, but not in power. He failed to win the General Election, despite widespread media backing and a deeply unpopular final Labour administration. More significantly, I feel that David Cameron is a manager, and not a leader; and a very poor one at that. This production, “What does Ed Miliband think?”, is in my opinion a very timely radio documentary by Steve Richards, as Ed Miliband takes stock of his first two years as leader of the Opposition and leader of the UK Labour Party. In recruitment, the philosophy is that you choose an employee based on his or her known interests and competences, as a ‘predictor’ of future success in that job.

Steve Richards early on cites the ‘responsible capitalism’ of the Labour Conference of 2011. I remember that speech, but I didn’t take away the prominent soundbite of ‘predator capitalism’. I was midway through a MBA at the time, and the territory of ‘responsible capitalism’ had already been known to me. The concept of a responsible corporate citizen is a very important one here in the UK, and in the US, and has a formidable academic history. I think part of the reason it was so badly received by commentators was that some phrases in the speech might have been imprecise, but also because the background to this theme had already been poorly known. I think it was brave of Ed Miliband to bring up the big argument of why it is insufficient simply for company directors to maximise shareholder dividend, ignoring the sentiments of the general public (including even consumers).

Ed Miliband is quizzed bluntly by Steve Richards about rail franchising. The complaint about the lack of policy detail is appropriately confronted by Richards, and is one that I know vexes many other members of Labour. There is a detailed policy review underway, but areas where Miliband wishes to appear to distance himself from New Labour are clearly identified. This in marketing terms is about producing a ‘unique selling proposition’, with the majority of Labour geeks (rightly) balk at. Here, it is perhaps relevant what Ed Miliband is not, rather than what he is. What he isn’t is a ‘PR man’, a criticism which Ed Miliband indeed threw at David Cameron last week in Prime Minister’s Questions. Ed Miliband is taking his own to produce a coherent political philosophy, whilst clear to disengage himself from the New Labour ‘brand’. This, I suspect, will be a popular move, even it has been previously described as bordering on populist. When I first met Ed Miliband at his final hustings at Haverstock Hill, I remember asking himself about inequality. He was genuinely very disappointed about Labour’s record on inequality, and has amused to hear my observation that neither the word ‘inequality’ nor ‘poverty’ featured in the index of Tony Blair’s “The Journey”.

The personal friendship with Lord Wood is an interesting one, as the portrayal previously had been of a rather ‘geeky loner’ who had been dwarfed by the academic shadow of his father, Ralph. Indeed, Ed Miliband clearly has elegantly articulated reservations about globalisation and institution themes of Blue Labour. However, it is the argument which Richards then assumes is one which I find intriguing. Miliband is compared to Thatcher (during the opposition years), and Miliband talks about a parallel of how he wishes to ‘rise to the challenge’. Again, I feel that this is where a knowledge of the management and leadership literature really helps. What Miliband is describing is ‘charismatic leadership’, of a figure which the public picks out as a candidate to steer them through a time of political, social, and economic turmoil. Charles Moore’s criticism that there is no goal, such as attacking the power of the trade unions or getting inflation down, is perhaps valid. These are very early days though. Ed Miliband’s “get out of jail” card has recently, ‘we cannot predict what the economy will be like in three years time”, which is indeed true when you consider that we may shortly be entering a “triple dip”. It could be that Ed Miliband does find an easily identifiable issue, such as boosting the constructive industry to provide new housing, or breaking up oligopolies such as banks or utilities such that greater value is returned to the consumer as well as the shareholder.

The lack of policy details, thus far, is one that continues to trouble Labour activists. The ‘opaque’ process, it is described, means that there could be “unexploded bombs”, which might explode accidentally near the time of the General Election. I agree there is a clear direction of travel, in that Ed Miliband wishes to avoid a strangehold of the markets; before the next election, there does need to have a clear narrative of public sector services. However, the £2bn reorganisation of the NHS is currently ‘work in process’, and therefore it is difficult to pre-empt how best to respond, when not all of the key statutory instruments, such as the Regulations for section 75 Health and Social Care Act, have not been “laid” before parliament. Both Ed Miliband and Andy Burnham have provided that they cannot possibly do another “top-down reorganisation”, but will instead ask existing structures to do different things, such as less competition and more collaboration. I think this is a practical approach to be admired. I also feel that freedom to produce policy possibilities in private is an excellent way to encourage creativity. In innovation management, it is a well known finding that many duds are produced before a golden egg is delivered; at this time, Ed Miliband is right to encourage innovation and creativity in policy making.

Last year’s Conference speech, 2012, was very well received, but Philip Collins and Neil O’Brien highlight that some issues were simply unaddressed, for example the deficit. In a sense the moment has ‘passed’ in that the public seem to have made their opinion up that the Conservatives are more trustworthy on the economy, despite the fact that Labour ran a deficit comparable to Ken Clarke and Norman Lamont prior to the global financial crisis. Instead of banging its head against a wall repeatedly, Labour may be better off on concentrating on a vision that the country can believe in, and other details will fall into place. Steve Richards’ discussion deliberately did not discuss other factors affecting the ‘mood music’, such as Nick Clegg and the Liberal Democrats, or UKIP, and it is possible that other big topics, such as the Eurozone, could affect Ed Miliband’s path of travel.

In summary, Steve Richards’ latest radio documentary is an interesting, even very entertaining, discussion of the current problems, opportunities and challenges facing Ed Miliband at the moment. I don’t have a political background by education whatsoever, but certainly a management training in marketing, innovation and leadership does make sense of various issues which Ed Miliband has to tackle. In as much as they are “facts”, the “facts” are currently that no party has ever been successful at increasing its share of the vote after winning an election, and one-term oppositions are vanishingly rare. However, how the current Coalition came to power is indeed unusual, as is how Ed Miliband became Leader of the Labour Party ‘against the odds’. Ed Miliband’s progress in many ways thus far has been unusual, and I suspect, as before, many things will simply fall into place for him. I really enjoyed this documentary.

BBC Radio 4: Tonight's "Any Questions" from Henley-on-Thames



Listen to it here.

Please leave any comments below.

BBC R4 Today and the squeezed hard-working non-upper class



Friday morning with John Humphrys is not going to be an occasion Ed is going to forget in a hurry, because of an extraordinarily tough interview on the BBC Radio 4 Today programme.

Ed Miliband’s opening gambit was talking about aspiration, which has indeed been an enduring theme for Labour, certainly during Tony Blair’s time in the 1990s. John wished to pin down Ed on where he precisely he wishes to lead the country, and specific issues, such as the graduate tax and the inequality gap, were discussed, with regards to deficit reduction and fairness. It may seem like quite a sexy concept, “the squeezed middle” like a tube of toothpaste, but actually even the simplest of analyses provides that it is fraught with problems. For example, what are these pressures “squeezing” the middle? Surely not the State, which the Coalition feels is too big anyway.

The interview can be heard here.

John Humphrys – not Ed Miliband – brought up the discussion topic of the “squeezed middle” on the basis of the article he had written in the Telegraph that morning. However, Ed Miliband clearly ran into trouble in defining the “squeezed middle”, which was very heavily reliant on the definition of the middle class. It was nonsense attempting a definition of the “squeezed middle” without defining the middle class, which was a mistake of Ed, thus giving John Humphrys to give the impression that Ed was on an errant fishing expedition. Even his brother David has alluded to the “squeezed middle”, for example in the the 2010 Keir Hardie memorial lecture tonight in Mountain Ash, South Wales. He provided that,

“To reconceive our notion of fairness. In our concern with meeting peoples’ needs we seemed to sever welfare from desert and this led people to think that their taxes were being wasted, that they were being used. When we said fairness, people thought it was anything but. What emerged as a tribute to solidarity, the welfare state, turned into a bitter division. Many of the ‘hard working families’ we wished to appeal to did not view us as their party. We achieved great things but we did not bring people with us, and our motivation appeared abstract and remote.”

The problem was that the definition that Ed (sort of) provided seemed to be 90% of the general public, but when Labour has previously talked about “progressive universalism”, it really has been talking about the aspiration of non-upper class voters who are hard-working; the word ‘middle’ is far too large, but, then again a group of ‘of non-upper class voters who are hard-working ‘ is equally large. It might be better, once Ed has conducted his review, to outline solutions for select groups of the public, such as students who are disenfranchised from Nick Clegg or elderly voters who are worried about the provision of elderly and social care (for example). Like the II.1 class at Universities, this is too large as to provide an idea which voters can address. The criticism of this is that Ed wishes to be ‘all things to all men’, but it would have been helpful had Ed identified which groups of society he was particularly worried about. Maybe, it’s that Ed Miliband feels he doesn’t wish to dash the aspirations of nearly all of the country. I have blogged before on how Labour has been giving the image of protecting the super-rich, and this is dangerous. Obviously, Ed has to give the definition of the “squeezed middle”, having spoken about it so, and even if he alienates some of the “super rich”, I’m afraid.

At first, the “squeezed middle” started off as a fairly innocent parliamentary joke. The Comprehensive George Review saw George Osborne appearing to be perched on William Hague’s knee. The incident gave Ed a good line about Ken being part of the “squeezed middle”. But Cameron responded well by saying that unlike the Labour leader, Clarke has “bottom”. More seriously, making his debut at the Dispatch Box as Labour leader, Ed asked how it was fair for parents with one salary of £44,000 to lose out while those with two salaries totalling more than £80,000 could keep the benefit. Mr Cameron hit back by accusing Ed of expressing concern for the “squeezed middle” to cover the fact that he had been elected with the support of the trade unions. As it happens, however which you define the “squeezed middle” precisely, the benefit changes, which will affect those paying 40 per cent tax from 2013, mean that a three-child family with a single income of £33,000 after tax will lose £2,500 a year, the equivalent of 6p on the basic rate of income tax.

Ed is right in that the “squeezed middle” has become an emergent theme already in his opposition. Ed has has been leader of Britain’s Labour opposition for about a month now, but already he is identified with a cliché: ‘the squeezed middle’, to whom he promised his party’s support. The phrase has enjoyed several years’ currency on both sides of the Atlantic. But its use by Mr Miliband was followed by chancellor of the exchequer George Osborne’s commitment to remove child benefit from the better paid, and then last week by a report from Lord Browne recommending the uncapping of university tuition fees. Politically, one of the key questions about Lord Browne’s suggestion that tuition fees should be raised is how the middle classes react. Will a rise in fees be seen as another burden on those who work hard, play by the rules and are already bearing more than their fair share of the costs of the state? Both measures, together with looming tax rises, are bound to hurt the middle class, and have prompted a surge of debate about its plight. Rightwing commentators argue that prime minister David Cameron is breaching a cardinal principle of Margaret Thatcher by failing to protect “our people”, the aspirational Tory voters. Ministers respond that there is no chance of reconciling those at the bottom of the pile to spending cuts unless pain is seen to be shared across the social spectrum. They were by no means dismayed by cries of suburban anguish about child benefit curbs.

It is possible that Gavin Kelly at the Resolution Foundation has done a much better job. His broad definition is anyone who is “too poor to be able to benefit from the full range of opportunities provided by private markets, but too rich to qualify for substantial state support.” Even something this vague would have helped Ed. Kelly’s analysis shows what a genuinely important political problem the squeezed middle will be in the years ahead. Earnings are flat, and likely to remain so in real terms, while cost inflation is steep especially for healthcare, energy and insurance. House prices have fallen and interest rates are low, but in Britain a mortgage of three times earnings will not buy a home on the edge of a provincial city for even a relatively high-income family on say, £60,000 a year. Kelly calculates that stagnating pay and the rising cost of living will leave these households losing an average of £720 in 2012. That is even before the impact of cuts to tax credits are taken into account. Those who aren’t in the “squeezed middle” – who aren’t “super-rich” – appear to be doing well, and maybe it’s the case that Ed doesn’t want to alienate them either. More and more companies are opting out of offering employees healthcare or final salary pensions. Britain’s average individual earnings are just over £22,000, a pathetically low figure from which to demand that a citizen pays more bills from his own pocket. But that is how things are going to be

However, Ed is in good company in failing to provide a definition of the “squeezed middle”. David Cameron is faring no better than Barack Obama in the vastly difficult task of explaining to his nation, and especially to the “squeezed middle”, where they are going and what is in it for them. He must reconcile people reared in the belief that hard work and prudence will yield comfortable rewards to the new reality of our societies’ diminishing share of global wealth. Finally, Ed must show that he hasn’t forgotten the working classes. Whilst Labour seems to be engaging people in the middle classes, it is dangerous if it writes off the working class in having a share in Labour’s policy.

Shibley Rahman Survey results 2010 : the BBC dominate



Thanks to all those who took part in the shibleyrahman.com survey.

The survey is now closed, so don’t vote any more.

Here are the results:

Blogs

1. One Nation Tory

The fact that this blog came top of out of all the blogs is possibly even a surprise to its editor, @LiamRhodes.

2. Mark Pack

3. Think Politics

4. Shibley Rahman

Obviously, this is a  good showing for the person who ran this competition. Clearly, there was a conflict of interest which Shibley is happy to declare.

5. Tom Harris

6. Claire French

7. Alastair Campbell

8. Kerry McCarthy

9. Sunny Hundal

10. Will Straw

Best commentators

1. Johann Hari, Independent/Huffington Post

2. Polly Toynbee, The Guardian

3. Steve Richards, Independent

4. Nick Cohen, The Guardian/Observer

5. Mehdi Hasan, The New Statesman

6. Jackie Ashley, The Guardian

7. Michael White, The Guardian

8. Daniel Finklestein, The Times

9. Jonathan Freedland, The Guardian

10. Kevin Maguire, The Mirror

Best sketch writers

1. Simon Hoggart, The Guardian

2. Ann Treneman, The Times

3. Simon Carr, The Independent

4. Andrew Gimson, The Telegraph

5. Quentin Letts, Daily Mail

TV columnists and reporters

1. Jon Snow, C4

Jon is held in very high esteem by readers of this blog. This is no way surprising to me.

2. Jeremy Paxman, BBC

3. David Dimbleby, BBC

4. Andrew Marr, BBC

5. Michael Crick. BBC

6. Kirsty Wark, BBC

7. Cathy Newman, C4

8. Michael Portillo, BBC

9. Reeta Cbakrabarti, BBC

10. Krishnan Guru-Murthy, C4

Radio journalists

The dominance of the BBC Radio 4 programme, which is held in extremely high esteem by people of all political ‘faiths’, is clearly obvious in this poll.

1. James Naughtie, BBC Radio 4

2. John Humphrys, BBC Radio 4

3. Edward Stourton, BBC Radio 4

4. Martha Kearney, BBC Radio 4

5. Jonathan Dimbleby, BBC Radio 4

6. Evan Davies, BBC Radio 4

7. John Pienaar, BBC Radio 5 Live

8. Elinor Goodman, BBC Radio 4

9. Mark D’Arcy, BBC Radio 4

10. Nicky Campbell, BBC Radio 5 Live


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