FABIAN POLICY REPORT

FACING THE UNKNOWN Building a progressive response to Brexit

EDITED BY OLIVIA BAILEY with contributions from Angela Eagle, Stephen Kinnock, Rachel Reeves, Emma Reynolds, Gisela Stuart, Chuka Umunna, Iain Wright, and more FEPS is the first progressive political foundation established at European level. Created in 2007 and co-financed by the European Parliament, it aims at establishing an intellectual crossroad between social democracy and the European project. It puts fresh thinking at the core of its action and serves as an instrument for pan-European intellectual and political reflection.Acting as a platform for ideas, FEPS relies first and foremost on a network of members composed of more than 58 national political foundations and think tanks from all over the EU. The Foundation also closely collaborates with a number of international correspondents and part- ners in the world that share the ambition to foster research, promote debate and spread progressive thinking.

www.feps-europe.eu

[email protected] This policy report, like all our publications, www.fabians.org.uk represents not the collective views of the Fabian Society of FEPS but only the General Secretary, views of the authors. The responsibility Andrew Harrop of the Society and FEPS is limited to Research Director, Olivia Bailey approving its publications as worthy of consideration within the Labour movement Head of Editorial, Kate Murray and the European progressive movement. Individual authors in this collection do not fabian society Report Editor, Olivia Bailey necessarily endorse the arguments made 61 Petty France in essays that are not their own. London SW1H 9EU Printed by DG3, London E14 9TE 020 7227 4900 (main) Soapbox, www.soapbox.co.uk 020 7976 7153 (fax) Designed by CONTENTS

This collection sets out eleven principles for the left ahead of the Brexit negotiations:

TO RENEW THE LEFT’S PURPOSE:

ONE: We must respect people’s desire for control...... 4 James Morris

TWO: We must see Brexit as the end of an era and commit to radically reshaping social democracy...... 6 Angela Eagle MP

THREE: We must be an actor on the international stage, not just a commentator...... 8 Gisela Stuart MP

TO FACE THE CHALLENGES IN FRONT OF US AND FIND NEW OPPORTUNITIES:

FOUR: We must be the unifying force that holds the UK together...... 10 Nick Thomas Symonds MP

FIVE: We must develop a new approach to immigration and freedom of movement ...... 12 Stephen Kinnock MP

SIX: We must put safety first by protecting and developing our security partnerships in Europe and around the world...... 15 David Hanson MP

SEVEN: We must see the result as a rejection of the economic status quo, and use the opportunity to build a fairer and more inclusive economy...... 17 Rachel Reeves MP

EIGHT: We must reaffirm and reset employment protection to make clear our position as the workers’ party...... 19 Iain Wright MP

NINE: We must build on the EU’s strong environmental record...... 21 Ruth Davis

TO GET THE TACTICS RIGHT IN THE MONTHS TO COME:

TEN: We must accept the referendum’s outcome and secure the best possible deal...... 23 Emma Reynolds MP

ELEVEN: We must hold leave campaigners to account for their broken promises...... 25 Chuka Umunna MP

Plus Introduction: Facing the Unknown...... 2 Olivia Bailey European reactions to Britain’s decision to leave the European Union...... 26-30 with articles from Richard Corbett, Jo Leinen, Tomas Prouza and Ania Skrzypek.

1 / Facing the Unknown Introduction: Facing the Unknown

Olivia Bailey is research director at the Fabian Society

ritain’s decision to leave the constitution, then Labour members need As Stephen Kinnock argues in his BEuropean Union shook the political to ask themselves some difficult questions. contribution, there is nothing innately establishment to its core. Within just a few The toughest of those questions is on left wing about supporting uncontrolled hours, it toppled a prime minister, crashed the issue of immigration, which was clearly immigration. In fact, properly managing the currency and threw the official opposi- a crucial factor in Britain’s decision to leave. migration will help build an open and tion into turmoil. The UK’s metropolitan, Although evidence suggests that immigra- anti-racist society and mean Britain is liberal-minded elites were jolted into a tion has impacted those on low wages better able to provide asylum to those in sudden awareness of how frustrated and and put pressure on public services and need. The left must also stop conflating forgotten much of the country feels. community cohesion, many on the left have concerns about immigration with racism. It seems there are two stages in dealing failed to confront the issue head on. Instead, While it is vital to challenge the language with this political shock. The first is to accept politicians have moved between ignoring of hate from UKIP and others, the majority the decision, that “Brexit means Brexit”. And the issue, denying there is a problem, and of people who worry about immigration the second is trying to make the best of it producing cynical and superficial gimmicks are not intolerant. It is time to build a by hammering out the terms of a potential such as the infamous ‘controls on immigra- progressive argument for better manage- deal. While the right, with its usual brutal tion’ mug produced before the last election. ment of immigration, and, as a number efficiency, is getting on with shaping the future of our country, the left is struggling to pass stage one, let alone move to stage two. It is now crucial it does. To do that, progressives must first open their ears and listen to what voters told us in the referendum. As James Morris sets out in his essay, the left must respect voters’ desire for control. And we must recognise, as the powerful forces of globalisation combine with economic uncertainty, that it should be the left’s agenda to ensure people are empowered in their day to day lives. Despite the Labour party campaigning for Britain to remain in the European Un- ion, a majority of people in swathes of La- bour’s heartlands voted to leave. This lays bare the problem that sits at the heart of Labour’s current travails: the gaping chasm between Labour members and too many present and former Labour voters. If the party aims to continue to be a parliamen- tary voice for the working classes, a “party

of the producers” as set out in its founding © Hans Wendland

2 / Fabian Policy Report of contributors argue, Labour must resist negotiations. But, as Nick Thomas Symonds the interests of low and middle income unlimited free movement, as a ‘red line’ in argues, social democrats should also seize households. It should not use ‘public con- the upcoming negotiations. the opportunity to confront issues that have sent’ as a fig-leaf for an unspoken desire to been unresolved for too long. Now is the undo the decision. Accept this and then the An opportunity as well as a challenge time to talk about a written constitution, an- tactics become clear. There must be a role Once the left has listened to the verdict of swer the West Lothian question and review for parliament at every stage of the process, voters, it must then accept that the deci- resource allocation between the nations, as including a debate and a vote on triggering sion doesn’t just bring challenges but also well as within England itself. article 50. But there should be no cynical presents opportunities. As Gisela Stuart Much of the post-referendum discus- promise of a second referendum, especially writes, a kaleidoscope has been shaken in sion on the left has been about the need when the complicated nature of the process British politics and we are now in a fight to protect the important regulation and means it is entirely unclear what a second to influence where the pieces fall. While cooperation that our membership of the referendum would even ask. the Conservative right will seize this op- European Union has provided. There is Labour has a responsibility in the com- portunity to turn Britain into a “European of course much to protect, with workers’ ing weeks and months to hold Vote Leave Singapore”, the left is at risk of failing to rights, security cooperation, and environ- campaigners in the government to account construct a progressive vision for the UK mental protections just a few examples. But for the promises made during the referen- out of the EU. as contributions to this collection argue, dum campaign. As Chuka Umunna points Angela Eagle argues that the left must the progressive negotiating position must out, many of them were disingenuous and see Britain’s exit from the European Union be to do better than the status quo. On entirely undeliverable. But Labour must as a once in a lifetime opportunity to re- workers’ rights, for example, Iain Wright also decide what it is ‘for’. make social democracy. She’s right. While argues for a strategy of “retain and reset” many are worried about the consequences where we keep the regulation that helps The starting point for this collection of the country’s decision, they must also workers, but argue for new rules to protect is therefore that the left needs to recognise that the vote was an act of re- workers in the changing economy. take a principle-based approach to bellion against the political and economic Brexit. That doesn’t mean that it status quo. The cheap holidays and cheap Getting the tactics right immediately has to resolve all of the goods brought by globalisation are no The Labour party could have hardly handled complicated areas of disagreement. consolation for stagnant wages, stagnant the referendum result worse. There were Indeed, the different contributors to opportunities and for communities across impetuous declarations about immediately this publication may not agree with Britain feeling left behind. The left must triggering article 50, lamentations across the everything that is argued in these now develop a new political economy that media that the campaign was unfair, and pages. But the left must start to set champions the role of an active state, and wrong-headed calls for a re-run of the vote. out both red lines and aspirations delivers a high-wage, high-skill economy All while Labour members argued amongst for Britain’s future outside the EU. that benefits everyone in the country. themselves rather than spoke to the voters This collection suggests 11 principles We have a history in Britain of seizing who justify the party’s existence. While to start that process because Labour opportunities from crisis. Perhaps this re- the Liberal Democrats may see a political cannot allow years to pass without ally is a moment when we need the spirit opportunity, Labour must recognise that anything positive to say about of 1945. a ‘48 per cent strategy’ puts them in direct the biggest political challenge in Britain’s decision to leave the European opposition to many of their potential voters. a generation. Union also demands that the left develop In the coming months, the political a new internationalism. We cannot con- tactics employed by the Labour party are The years ahead will be tough. We haven’t tinue the modus operandi of the last five crucial. This is clearly a challenge for a di- even begun to understand how entwined years, with a Conservative prime minister vided party that looks set to re-elect Jeremy the European Union is in every aspect of our diminishing Britain’s role on the world Corbyn as leader. But given that the terms of lives. There will be serious economic chal- stage, unencumbered by a cautious and the deal will be carved out in the House of lenges. Even progressives on the continent opportunistic Labour party too busy tying Commons, it is beholden on every Labour have lost patience with the UK and are itself in knots. As Stuart argues, the left must MP to show leadership. squaring up to give Britain a tough time in not passively commentate on world events, The most challenging tactical question the negotiations, as Jo Leinen’s contribution but instead decide the basis on which it for the left is the issue of public consent for so starkly sets out. would act. The lessons of Iraq must never be the terms of Britain’s exit. Should the left But the left must never forget that the forgotten, but without a clear progressive vi- argue for a second referendum once the vote to leave the European Union was sion for our role on the world stage, Britain’s terms of the deal becomes clear, or is fuelled by people across Britain who feel influence will simply melt away. scrutiny and challenge through parlia- they have too little control over their lives, The left must also develop a clearer sense ment sufficient? To answer this, the left and who feel let down by the economic of identity for the United Kingdom. With must examine its motives. If it accepts the status quo. We must not squander this op- two constituent parts of the country voting democratic mandate of the referendum, portunity to remake our politics, and ensure to leave, and two voting to remain, the unity it should choose the path that enables it that everyone in our country feels powerful of the kingdom should be a priority in the to ensure the terms of Britain’s exit are in and optimistic for their future. F

3 / Facing the Unknown PRINCIPLE ONE We must respect people’s desire for control

James Morris is a campaign pollster and strategist

ou might have expected the referen- was Luddite. For the old left, concern 42 points, their working class counterparts Y dum result to extract heads from the was racist. On this one issue, Labour’s voted remain by a margin of just 7 points. sand, but it seems not. Like cult members dominant tribes were in harmony: the best More fundamentally, the 48 per cent whose aliens don’t turn up on time, much response to concerns about immigration strategy gets the psychology of remain vot- of the left is clinging on to a world view was to change the subject. ers wrong. Just because 48 per cent voted that is patently false. Concern about migration is not a news- with Europhiles, it doesn’t follow that 48 The myth is that we were all lovely paper confection. Its salience has closely per cent are Europhiles. In fact, 44 per cent cosmopolitans in the summer of 2012 as tracked net immigration over the last 15 of remain voters think it is essential that Mo Farah was winning medals for Britain, years. The leave vote closely correlated immigration is reduced, with only 20 per but then flipped in June 2016 as a result of with the rate of change in a community – cent disagreeing. By 48 to 10, Black, Asian a bunch of nasty lies told by Boris Johnson the more immigration has increased, the and Minority Ethnic voters think the same. and his friends. If only people weren’t more people voted to exit to the EU. The good news is that taking immigra- taken in by his dastardly deceit, the whole Dismissing concern as an effect of the tion seriously need not be the morally haz- country would think like Stoke Newington referendum rather than as a cause of the ardous enterprise the left often thinks it is. or Manchester Withington. Voters only result is also dangerous for the future Progressives can happily answer people’s think they care about controlling immi- of anti-racism. While 32 per cent of concerns about immigration without ac- gration and controlling our laws; in fact, voters were put off voting leave because commodating negative views of migrants. deep down, they really want the same of its association with racism, 53 per cent Most voters think immigrants tend to work things as attendees of the typical Labour were put off voting remain because of its hard and contribute to our country, most branch meeting. If only they would could dismissiveness towards immigration. The are in favour of a tolerant country where see that. position was worse for the swing voters people of different faiths and cultures This approach is disrespectful of voters’ who ultimately decided the referendum. have equal rights, most think EU migrants basic values and their ability to form opin- We are leaving the EU in part because the already here should have the right to stay. ions. The truth is that voters do fundamen- left wouldn’t take voters’ concerns about Areas with high levels of immigration were tally care about controlling immigration, immigration seriously. not more likely to vote leave – it was rate of about controlling our laws and having A different version of the leftist myth change that mattered, not absolute levels. control of their own lives. These desires acknowledges that some voters are genu- The key is to accept, and have a credible are deep, and legitimate. To be successful, inely concerned about immigration, but plan for, a system that is able to control the Labour party and the left need to find says that the progressive response should migration. Two thirds of the country thinks progressive ways to answer these needs – be to ditch those voters. We should be as long as the system is well managed, not to pretend they are illusory. the party of the 48 per cent who voted to migration can be good for Britain. Support remain. The obvious political problem with for a significant increase in the number of Controlling immigration this approach is that 70 per cent of Labour refugees rises from 35 per cent to 58 per Immigration has been a defining issue for seats voted leave, with the working class cent if the system can be relied on to identify more than a decade, but the Labour party voters Labour is supposed to serve more genuine refugees and help them integrate. didn’t want to notice. For the liberal right likely to be leave voters. While middle Even most leave voters support increased of the party, anger about immigration class 18-34 year olds voted to remain by asylum provision under those circumstances.

4 / Fabian Policy Report Controlling migration is an utterly This focus on control of our laws also This ought to be rich ground for the left. mainstream, non-controversial policy po- tells us something about the importance It is how we can breathe life into the idea sition in Britain. Brits want the same sort of of the nation as the basic unit of politics. of inequality. At the moment just 3% of border control as enjoyed by high immigra- Governments act on behalf of their citizens. people say ‘inequality’ is the most im- tion countries like Canada and Australia. They put their citizens first. Citizens also rec- portant issue facing the country. When That doesn’t make them backwards, nor ognise special duties to each other that they we look at the language of inequality in focus does it make them racist. don’t feel toward citizens of other countries. groups it leaves people cold. It is an abstract That is an ethical and cultural underpinning noun, not a campaign slogan. In contrast, Controlling our laws of a redistributive welfare state. In our coun- populist language focused on getting Addressing the politics of immigration try, we feel solidarity with each other. This a fair deal, giving people control, and is a central political lesson from the ref- solidarity is far from perfect – there remain tackling people who dodge the rules can erendum, but it is far from the only one. major problems of racism and classism. be powerful while covering the same A quarter of leave voters didn’t mention But under Blair, Miliband and Corbyn (but, conceptual ground. migration as one of their top three con- curiously, not Gordon Brown) Labour has cerns – that’s four million people. had a tendency to see national borders as Lessons from the campaign The desire for control was not just about inconveniences on the path to utopia. The lessons from the referendum don’t our borders, it was also about our laws. just relate to political positions; they are Leaving the EU was felt to be the best Control of our lives also organisational. The losing campaign course on this issue by 68 per cent of ref- The left should be on the side of people got the better of the ground war but lost erendum voters. 75 per cent of leave voters who feel disempowered by elites, who feel the press battle, just as it did in the general said this was critical for their vote. left behind and pissed off. The referendum election in 2015. This tells us something about the failure showed that there are plenty of voters who The remain campaign had higher levels of the EU to embed itself in the democratic meet that description. of voter contact in every region except fabric of Britain. Voters never came to see The leave campaign recognised and Wales and the south, where it was tied. This decisions taken in Brussels as legitimate tapped into voters’ sense that they have organisational success may have muted the in the same way they broadly accept been systematically disempowered. Their leave victory, but it certainly wasn’t enough the will of Westminster or Holyrood or communities are changing without their to be decisive. Labour and the left need to Cardiff. In fact, in a survey we conducted agreement, their incomes have barely risen be wary of relying too much on the ground for the Fabian Society prior to the vote, for more than a decade and the media is game to secure victory. we found that the more voters knew about telling them that the country is growing and When it comes to the press, there is the EU’s institutional arrangements, the becoming better off. strong evidence that certain papers had more likely they were to want to leave. 62 per cent of voters thought that ‘politi- significant influence. Sun voters went from Whereas the more they knew about cians, business leaders and other members voting leave by a margin of 30 points in economic impacts, the less likely they of ‘the establishment’ in Britain have let March to 44 points on referendum day. Mail were to vote leave. As the left toys with ordinary people down’. That group voted to readers went from 19 points to 34.Times ideas of devolution and new democratic leave by 58 to 41. In contrast, the 25 per cent readers went from an 18 point margin for institutions, it has to recognise the cultural of voters who think politicians and business remain to a 37 point margin for Remain. In challenge of ensuring they are seen as le- leaders ‘make mistakes but most contribute contrast, Telegraph readers barely moved, gitimate decision making bodies, particu- positively to Britain’ voted to remain by while Mirror and Guardian readers shifted larly when they make unpopular decisions. 61 to 37. in the opposite direction to the editorial line. You can’t be sure of the causation here, but this is certainly evidence that the Mail, Sun and Times can shift votes.

The opportunity ahead The left must now accept that immigration is a real issue, that patriotism is popular, that people want control of their lives and that the media matters more than deliver- ing flyers. If we can get past our liberal disdain for these facts of life, there is tre- mendous opportunity in the anti-elitism of voters and their acceptance of immigrants. Voters want an immigration system that is effective, a country they can be proud of and an economy that works for them, not just the establishment. What’s so wrong

© Aftab Uzzaman with that? F

5 / Facing the Unknown PRINCIPLE TWO We must see Brexit as the end of an era and commit to radically reshaping social democracy

state that empowers citizens throughout Democratic socialist societies can leave their lives; a state that looks after everyone, no-one behind. We cannot reshape our po- not just the lucky few. We have huge unmet litical economy by reinforcing the exclusion needs in our society, we must create a cul- of groups who already suffer disadvantage ture and an environment where sustained and discrimination. So it follows that the Angela Eagle is the Labour MP for Wallasey investment in all our citizens encourages position of women, should be transformed these needs to be properly met. too. This is one of the crucial ways we can une’s referendum on Britain’s member- This requires democratic socialist par- challenge poverty and improve the life Jship of the EU signalled the end of an era ties everywhere to rethink how to achieve chances of the generations to come. It is for our country. As democratic socialists we their egalitarian aims; our sister parties now time to tackle discrimination and have a duty to see it as an opportunity for a throughout Europe and across the devel- disadvantage in all its forms, rather than radical reshaping of the political economy oped world are facing similar challenges. just measuring it. of our country, our continent and of social We need to rediscover our ability to think We must start by spreading the gains of democracy itself. creatively to empower those who work, economic growth, prosperity and oppor- When Labour returned to government rather than those who just own. We need tunity more fairly across the regions and in 1997, the hegemony of the Thatcher- to create new institutions and structures to nations of Britain to stimulate economic Reagan economic consensus meant help people manage the risks that change growth everywhere. The Tories have re- Labour continued to rely on market eco- brings, and to respond to the growing need warded pre-existing advantage by localis- nomics shaped in the 1980s, whilst seeking for security too. This will require Labour to ing the rewards for economic success. Their to actively redistribute income, wealth rewrite the fundamental rules of Britain’s policies, such as those on business rates, and opportunity to balance the inevitable political economy. That is the only way require urgent review. inequalities of a radical capitalist economy. social democratic politics can ever succeed We need to think far more ambitiously Labour’s policies, similar to those adopted and it is the left’s only way back to being a about what would constitute a modern by social democratic parties throughout the credible and relevant party of government. industrial base that would allow us to com- West, helped to mitigate some of the worst pete in a changing world. Given the central- effects of neoliberalism. But, despite three A Marshall plan for working ity of ideas, knowledge and skills in Britain’s terms in office, we never really changed the class communities modern economy, this means changing the political terms of an accepted international The challenge for us today is more complex way we teach and upskill people throughout economic orthodoxy. than ever before. We live in a globalised their lives, including rewarding employers This ‘bolting-on’ of socialist institutions world where technology has turbocharged who invest in their people. and rules to our capitalist society gave the the evolution of our economies. We are on We also know that entrepreneurial coalition government easy targets for their the cusp of a fourth industrial revolution. activity – risk-taking and creativity – will be austerity project. Sitting on the opposition Big data and the ever-widening effect of crucial in driving British success. There is a benches, we protested, largely in vain, as digital technology will transform our world tricky compromise to be reached between they very quickly dismantled key tenets of beyond recognition. Human beings are far rewarding success and ensuring that we our political legacy – such as Sure Start, tax more connected globally than ever before. don’t leave behind those that try but don’t credits and redistributive council budget- Our economies are increasingly based on succeed the first time. This is particularly ing to provide help to the poorest areas. mind not muscle. Automation, artificial important for women, who are the fastest Today’s problems are different from intelligence and evermore sophisticated growing group within the rapidly expand- those of 1997. Things are in many respects algorithms are replacing human endeavour ing ranks of the self-employed, with many much worse. We have rising levels of in- in many fields. women working part-time for periods in equality and large numbers of people feel And yet class divides persist and are their lives. Only Labour can or would deliver the system offers very little to them or their growing, as we see opportunities for social the active state that would both reward en- families. Indeed the Brexit vote was, for mobility stagnate. Today, while we have trepreneurialism and leave no-one behind. some, an expression of their sense of frus- access to more ‘things’, we feel spiritually Finally, as we are seeing with greater tration and powerlessness. A temporary poorer and less happy. So how can govern- frequency when it comes to enormous fix for a broken and increasingly unstable ment help to guarantee the common good globe-spanning corporations, today’s solu- system is just not good enough. To chart and the happiness of our citizens? We tions are looking increasingly creaky. If the a prosperous way forward for our country need nothing less than a Marshall plan for owners of the means of production are we need an entirely new vision for the working class communities. an app developer in San Francisco – well

6 / Fabian Policy Report outside of the reach of HMRC – the workers Beyond Europe, Labour’s vision of Brit- for their work ethic, character and future are sole traders working across London. ain’s place in the world has been in turmoil ability. We need to give them the certainty And when there is no shop floor on which for at least a decade. It is not good enough the government will reward investment to organise, how do we rebuild u nions that to simply be a passive observer of events, into workforce development. can reach across national divides and ensure tutting at things we don’t like. Britain, like Part of that planning will involve people receive fair wages that allow them it or not, is a global superpower. We are the assessing what Britain does best and focus- to live with dignity? How do we ensure world’s fifth biggest economy, a diplomatic ing on our strengths. But it’s not just about they pay their fair share of taxes to reinvest heavy-hitter and retain a powerful military winning. We need to win right, so this into opportunities for all Britons? That will capable of projecting force anywhere. Our analysis needs to include projects which: require increased global cooperation, not role in the world must be to spread the add to social infrastructure; boost women’s less. Brexit, ironically, was a step forward in same respect for human dignity that lies participation in the workforce; and encour- terms of Britain’s ability to redistribute profit at the core of our movement. It means age the sense of fulfilment people feel to those upon whose labour it was created. helping those in need, empowering those when their lives mean something and they We must now turn to explain how we that are weak, making friends and fighting are part of a great Great Britain. will ensure that creativity and entrepre- evils where we see them – whether they The Tories’ slash-and-burn attitude to neurialism are rewarded. And we must be poverty, ignorance or the capricious the state has included a failure to think ensure that those that endeavour to do violence and repression we still see in the intelligently about research and develop- something new and fail will not be left world. For those that care only about Britain ment, and innovation strategy development, destitute. Our Labour movement leaves no and its economic success, we must defend from the bottom-up. We need to develop person behind. So we must respond to this internationalism at all times by reminding products and services that help create the new emerging world. them that our reputation in the world – our jobs of the future. Some have suggested soft power – intimately affects our ability to “super-catapult centres”, which act as Our place in the world exert change that benefits Britain as well force multipliers for governmental spend Brexit will end a fifty-year-old strategy as other nations, including getting deals to and effort. We need a wider and more which sought to replace the UK’s imperial repatriate offshore taxable profits and set- comprehensive network of these centres, past with closer economic and political co- ting labour standards that protect workers. working closely with universities, industries operation with the democracies in Europe. and unions. By clustering these centres The question for Britain needs to be Rethinking our political economy intelligently to make them as efficient how the future of our engagement with the So it is clear we need to use this once in a as possible we can demonstrate how gov- world can bolster our capacity to achieve our lifetime rupture in our national strategy to ernment can help and not hinder people’s national goals and those of our citizens. We forge a new and progressive way forward. lives and would form part of a Labour need good jobs. We need our expertise and We must build on our internationalist government’s active and explicit commit- ideas and manufacturing to flow around values and collectivist culture. It is about ment to regional economic plans. This the world, bringing back revenues that help time we as a nation stopped falling for the cooperation would form the central eco- pay for our enabling state and create high- Tories’ reductive austerity rhetoric, which nomic plank of a devolutionary agenda that quality jobs. We need to be able to exert outrageously tries to compare investment isn’t just about local government but pressure on foreign companies to do the for the future to frivolous spending on the communities as a whole, allowing for right thing by British workers and ensure nation’s credit card. Crude politics, employ- rational local integration of education, skills they pay their fair share of corporate taxes. ing misleading metaphors, may have won and training. Many of those who supported Brexit at the ballot box in the last general election When people lose faith in government, aspire to turn Britain into a deregulated off- but will not help Britain win in the long social democratic parties suffer. Laissez- shore financial centre. This is not our vision. term. For me, this summer’s sporting en- faire market economics with active redistri- We must forge a new relationship with the deavours were a far better metaphor. We all bution was an approach to government that democracies of Europe that maintains our saw our amazing haul of medals from the worked, to an extent, in a different time. values of solidarity and cooperation, lead a Olympics. That success was built on central In today’s accelerating, globalising, conversation between our sister parties on planning and intelligent, strategic invest- opportunity-filled world, Britain can still a shared, modern vision for our continent, ment to nurture talent to: help athletes succeed and government must play a and ensure that the Brexit negotiations do develop; allow us to pull ahead of the rest huge part in that success. But social demo- not lead to an acrimonious divorce. Part of the world; and bring pride to the nation cratic parties need to rethink how we do of this common vision will include mak- as a whole. things. We need to rediscover – not the ing sure that our worker and corporate We need to invest in both physical policies from our movement’s past – butthe regulations do not deliberately undercut infrastructure and human capital. For willingness to embrace change. We need to EU standards. We want Britain to succeed tomorrow’s economy, we desperately need help people manage the risks that change because it is the best place to work, the most to increase the accessibility of digital infra- brings and to harness the whirling energies forward-thinking, and attracting the best structure, transport and housing, as well of change to catapult Britain forwards.This talent. Not because it is the easiest place to as skills training and citizens’ capacity to is the only way social democratic politics set up shop and exploit our hard-working, retrain fast and effectively. That also means can ever succeed and is our only way back well-trained citizens. encouraging companies to take on people to being a credible party of government. F

7 / Facing the Unknown PRINCIPLE THREE We must be an actor on the international stage, not just a commentator

Gisela Stuart is the Labour MP for Birmingham Edgbaston

iven the tensions within the Members of parliament know this, democratic accountability in the EU have GLabour party and on the left, it might particularly those who were in the Com- deep roots on the left. But we have tended appear self-indulgent to talk about a mons before 2010. The worst day in to overlook the loss of accountability exer- new internationalism. government is better than the best day in cised by electors in member states and seen But the kaleidoscope has been shaken, opposition. But newer MPs can be seduced it as a price to pay for cooperation rooted in and when the pieces fall into place, we had into thinking that just landing blows at the our belief that there is greater strength in better make sure we emerge as a political Conservatives, enjoyable as it is, is what it collective action. We must now recognise force that is capable of being in govern- is all about. that the EU referendum has exposed some ment. The blunt truth is that Labour only And voters know it too. Look at what unresolved conflicts which we as a party has relevance if it is serious about being a happened to the Liberal Democrats. Most need to address. The referendum did not party of government with a credible policy of their speeches can be written in advance. cause them, but it flagged them up in big agenda. If Labour members want to be part Whoever is in government has done too neon lights. of a pressure group they are in for a shock. much or too little, and done it too late or The decision to vote to leave the Euro- There are a lot of other organisations out too early. It’s never about today and what pean Union is the culmination of a process there that do that job, and they do it better. difficult decisions they would be prepared that started when John Major’s govern- After losing office, parties go through to make. After serving in the coalition ment negotiated opt-outs from the Maas- phases of reorientation. It starts with they went to the country largely arguing tricht Treaty. We would not join the single “we’ve lost, but behave as if we are still that they stopped the worst excesses of currency and we would not be part of the in charge”. Followed by “we just attack, to the Conservative right. The voters weren’t single travel area called Schengen. But we show that we are a damned good opposi- impressed and reduced the parliamentary did accept the concept of EU citizenship tion”. And finally “we can demonstrate to party to a rump. and the transition from free movement of the British people that we are better than Labour must be an actor, not a bystander labour to the free movement of people. the current lot”. and commentator. Politics is the art of the The 1997 Labour government played The danger is that we get stuck in the possible, underpinned by values and prin- a significant role in shaping what became second phase, and come to believe that ciples. Bland statements and unrealistic the Lisbon Treaty. But it did not only not being a critical commentator is sufficient. aspirations won’t do. retract from the Maastricht opt-outs, it Only in power can we shape the agenda. That is why it matters that Labour has a even promised a referendum on any future That means the progressive left must credible foreign policy. One that is rooted decision to join the euro. articulate in practical and thought through in our values and principles, but based on This brief history is important for policies what a Labour government would actions that can be started in opposition two reasons. First, we stopped thinking do differently. We must show that in the and developed in government. rationally about the developments in the way we behave where we do have power, At its heart, Labour is an outward look- European Union. We saw that all we had to for example in local government, and in ing internationalist party, and we have not say was “Europe” and the Tories would start the way we ask questions and hold the historically spent time tearing ourselves fighting with each other. And we knew that Conservatives to account at Westminster. apart over Europe. The Conservative party the voters hate divided parties. Backbench debates are good, but success- fault line of sovereignty has not run as We moved with seamless ease from an ful amendments to legislation are better. deep in Labour. Concerns about the lack of anti-common market party in the 1980s

8 / Fabian Policy Report to an unquestioningly pro-EU party in the new century. To appear united became more important than critical analysis. Even during the referendum those of us who openly campaigned to leave were airbrushed out of the Labour family picture. This would have mattered little, if it had not also meant that whole swathes of traditional Labour voters also felt they were being ignored. When it came to Europe, social demo- cratic principles were no longer applied to a whole range of things. We did not even comment on the way a whole generation of young people in countries like Greece were thrown on the unemployment scrapheap, because the political project of saving the © Jason Eppink euro as a currency demanded it. Second, we failed to take a dispassion- protected by a strong Labour party that is than alone. But we do need to be able ate look at the immigration figures and capable of being in government. to articulate what role we wish to play what it meant for communities. Insufficient The coming years will involve rewrit- in the world. We have a permanent seat planning for local firms and public services ing the rules of our relationship with our in the UN security council and together meant not enough people were trained, European neighbours. Labour can sit on with France provide the largest military and recruitment from abroad became a the side lines or it can shape the future. I capability on the European continent. permanent default position, rather than will be on the side of those who fight for The left needs to move beyond hand a response to a temporary need. Wages the best deal for this country, rather than wringing and decide not just what it were kept low by recruitment from areas try and turn the clock back. thinks about things, but what it would do in Eastern Europe with significantly lower Labour has always been internationalist about them. wage levels. This caused huge problems and worked on the principles of coopera- This takes me to the final point. for communities, but too many on the left tion. We have fought for universal human As a party we have neglected contacts refused to acknowledge this. We told our rights and separated foreign policy from with our social democratic sister par- voters they were racist or ignorant or both. international development. And in the ties. Country-to-country relationships Labour must acknowledge these two late 1990s it was Labour which spelt out are important, as we face similar chal- factors before it can have a European policy principles of when intervention is right, lenges. The Westminster Foundation fit for a party that is serious about govern- and worked on developing a concept of a for Democracy provides a very useful ment, because that policy has to take duty to protect. forum but it is not sufficient. We have ne- the country forward. The British people We now need to return to a willing- glected these relationships as they are seen have voted to leave the political union, ness to engage, act and when necessary as “no votes territory”. True at election but we can and will continue to shape the intervene. The decision to go to war in Iraq time, but in the long run it diminishes our future of the European continent. This is and the subsequent developments must reach as an international movement. our Europe. It belongs to us as much as not stop us from articulating new prin- A new internationalism for the left it belongs to the French or the Germans. ciples – albeit ones shaped by the errors means being an actor in a world where Now is not the time to try and re-run the made over Iraq. the successive waves of globalisation – of decision, or to equate it with becoming What would today’s Labour party have goods, to money, to people – have shown inward looking, isolationist or racist. said if faced with the 1994 genocide in that many of the post-WW2 institutions We must now focus on implementing Rwanda or the conflict in Kosovo? Would aren’t capable of responding to the chal- the decision the country took. A decision we be able to even begin to articulate a lenges we face. to put an end to the supremacy of EU law policy that could set out a series of actions Statements of ideas and values are over UK law, to break the link with access that could save lives? comforting because they allow a degree of to trade and unlimited free movement of Whether it is Syria, Libya or Yemen, we certainty, tidiness and purity. Actions are people, and to spend more of those funds need the military and diplomatic capacity complicated, uncertain and often involve which currently go to the EU on our priori- to first win the war and then maintain the a balance of moral values. But actions are ties like the NHS and public services. peace – as well as being able to respond to what government is about and actions are When it comes to things like workers’ humanitarian crises. what change things for the good. rights we should be proud that successive NATO remains our main military al- If Labour wants a foreign policy fit Labour governments gave us the minimum liance. Much is done on a bilateral basis for government, it needs to shape institu- wage and improved workers’ rights beyond and it is clear that we will, in almost all tions, articulate its values and be prepared to European standards. I want those rights circumstances, work with allies, rather take difficult decisions.F

9 / Facing the Unknown PRINCIPLE FOUR We must be the unifying force that holds the UK together

Nick Thomas Symonds is the Labour MP for Torfaen

ccording to clause IV of its con- unknown, but of remaining within the EU. The challenge posed by the nationalist A stitution, the Labour party “believes Meanwhile, Northern Ireland’s deputy parties should not be seen only as anti- that by the strength of our common en- first minister Martin McGuinness has called establishment. Rather, the politics of iden- deavour, we achieve more than we achieve for a border poll on a united Ireland. Whilst tity they represent should be understood, alone.” That principle, of working together, this may be regarded as a distant prospect, and reflected in our own approach. The of pooling risk, of not leaving individuals at there is the immediate problem of the 300- distinct Welsh Labour brand has served the mercy of the slings and arrows of out- mile land border between north and south the party well in the principality. Speak- rageous fortune, has urgent contemporary on the island of Ireland. Whilst Northern ing in the first Welsh Day debate in the relevance for the left. Rarely has the United Ireland remains part of the EU, there is free House of Commons on 17 October 1944, Kingdom seemed as divided. On 23 June, movement across the border with fellow Aneurin Bevan contended in the House two of the UK’s constituent parts, England EU member Eire, which is crucial to travel of Commons: “Wales has a special place, a (by 53.4 per cent to 46.6 per cent) and and trade. A pragmatic approach is now special individuality, a special culture and Wales (by 52.5 per cent to 47.5 per cent) required to ensure secure borders whilst special claims,” accepting there was a case voted to leave the European Union. Two maintaining the way of life of those who for devolution. But he then set out that, voted to remain: Northern Ireland (by 55.8 rely on crossing and re-crossing the border for him, there was “no special solution for per cent to 44.2 per cent) and Scotland (by without hindrance on a daily basis. The the Welsh coal industry which is not the 62 per cent to 38 per cent). Good Friday Agreement of 1998, surely solution for the whole mining industry These are not mere differences of opin- one of the greatest achievements of any UK of Great Britain.” Bevan may have been ion between our home nations; rather, the government, meant that the army watch- opposed to devolution, but these words divisions raise pressing questions that poli- towers along the border became a thing of capture the nature of the issue: celebrating ticians will have to answer in the months the past. We have to ensure that the border the diversity of the home nations whilst and years ahead. And for politicians of does not once again become a divisive uniting them with progressive policies is the left in particular, answering these frontier, as the outer edge of the EU. the ultimate political challenge of the post- questions, and seeing the positive oppor- These are some of the many practical devolution age. tunities in amongst the many difficulties is issues that need to be addressed, yet a Labour is in a unique position to meet particularly pressing. It is not only vital for practical approach alone is inadequate if this challenge. The Conservatives can win the future of our United Kingdom, but it is we are to keep our four nations united. The a parliamentary majority without winning key to the survival of the Labour party as a Brexit vote was made in a particular set of a single seat in Scotland, and by focusing powerful force for change. circumstances. From 2010, the parties in only on England and Wales. Labour cannot On 18 September 2014, Scotland voted power in the four parts of the UK have all do this. Labour has to appeal to voters in in to remain part of the United Kingdom (by been different. The SNP’s popularity has Scotland, Wales, and across the length and 55.3 per cent to 44.7 per cent). But that was soared north of the border in the wake of breadth of England. Thus, concentrating on on the basis that the UK was a member of the Scottish referendum. In Wales, Plaid issues that appeal to the country and bind the European Union. Now, Scotland has Cymru has not enjoyed similar success, it together is the task we must focus on. voted to remain, but the UK as a whole has with the exception of Plaid’s leader Leanne There is an argument that these very voted to leave. The Scottish first minister, Wood gaining the Rhondda seat in the facts point to the need for electoral reform, Nicola Sturgeon, has raised the prospect 2016 Welsh general election and then to allow party representation in areas where of a second independence referendum, making a bid, ultimately unsuccessfully, to first past the post is currently shutting them run on the basis not of a leap into the serve as first minister. out. But the Conservatives do not intend to

10 / Fabian Policy Report change the electoral system anytime soon, rest of the UK – should be the answer to trial and error, but rather, the opportunity save for the proposed boundary changes. the West Lothian question, not the English to improve policy outcomes in different The left must win power under the voting Votes for English Laws method that the ways whilst learning from the experience system as it stands. Conservatives have quietly pushed through of other institutions. The Welsh Labour First, we should argue for entrench- parliament. If parliament is to remain a government’s Housing (Wales) Act 2014 ment in our constitutional arrangements. United Kingdom legislature, all MPs have is a fine example of a piece of legislation Despite a growing complexity in our to have equal voting rights. that other parts of the UK should fol- governance arrangements, we still have Next, we have to consider resource low. It places emphasis on preventing an uncodified constitution. We should allocation across the UK. In 1978, Labour homelessness, not only dealing with its seek to write one single document, rather chief secretary to the Treasury Joel Barnett consequences. Thus, Clause 55(4) of the than watch the Supreme Court continue devised a formula, based on short-term Act tightly defines potential homelessness: to set out constitutional arrangements in political considerations, allocating public “A person is threatened with homelessness piecemeal fashion in individual judgments, spending between England, Wales, Scot- if it is likely that the person will become as it adjudicates between our Westminster land and Northern Ireland, in ascending homeless within 56 days.” This means local government and the devolved bodies. New order. Never meant to be permanent, and authorities have a far greater duty to find Scotland and Wales bills in this parliament not based on relative need, this is due for alternative accommodation before people will strengthen those devolved institutions, reform. At the height of the Scottish ref- are out on the streets. England would do but constitutional reforms must not con- erendum campaign, then party leaders Ed well to follow suit. tinue on a reactive basis. Rather, we need to Miliband, David Cameron and Nick Clegg Alongside these distinct approaches be pro-active and create a long-term dura- promised to maintain the Barnett formula should be a coherent set of progressive bility in our constitutional settlement. This for Scotland. But the reality is that, with EU policies from the UK Labour party that could be done on an all-party basis through social funding set to be withdrawn once makes an offer to left-of-centre voters all a constitutional convention, and one way the UK leaves, funding questions are once across the country. Non-devolved policy of knitting the nations together could be more open for debate in this new context. areas remain crucial, and the state of the through reform of the House of Lords. This provides an opportunity to reconsider UK economy is central to the monies avail- Like the US Senate, which contains repre- what fair funding looks like. To look again able to devolved governments. Reform of sentatives from all fifty states, representa- at moving to a funding settlement based the personal tax system to help the lowest- tives of the devolved nations could sit in on need, that includes looking at deprived paid, or a wealth tax, would have an impact the second chamber. areas in England as well. across the UK. Treasury issuing of long- For many years, academics have puzzled That the UK’s devolved bodies are term government gilts to fund investment over Tam Dalyell’s West Lothian question: all unique also provides opportunities, on infrastructure – whether on transport how it was right that, with devolution, meaning that each can be a laboratory of or on digital, in the form of achieving Scottish MPs could vote on English issues, public policy. Each devolved institution comprehensive broadband coverage – but English MPs could not vote on Scot- has the capacity to innovate, and thus could not only kick-start our economy but tish issues. Devolution all round – that is, promote “best practice” across the UK. also link the people of the UK together in England outside London as well as the This should not be seen in any sense as more than ever before. The EU provisions protecting workers, consumers, and the environment that have been incorporated into our domestic laws over decades must be retained and strengthened. There has undoubtedly been a post-ref- erendum blow to the confidence of the left in UK politics. This is unsurprising. It has not been easy to see the new situation as presenting opportunities, particularly since internationalism has always been such a key component of our socialist thinking. Yet it is because of our historic sense of the col- lective that we in the Labour party have so much to contribute to a post-referendum UK. Seizing the moment requires a vision of how the left sees the 2020s in UK politics: a settled set of constitutional arrangements, a progressive vision across the whole of the UK, and a willingness to develop, and learn from, our devolved politics. We must meet this challenge collectively because we are, quite simply, better together. F

11 / Facing the Unknown © Robert Couse-Baker

PRINCIPLE FIVE We must develop a new approach to immigration and freedom of movement

Stephen Kinnock is the Labour MP for Aberavon

12 / Fabian Policy Report he result of the EU referendum take in the post-Brexit era. It’s no cheap the left’s conflation makes it uncomfort- T revealed a divided Britain: 52 per cent imitation of Ukip, nor an ‘electoral ploy’, able to discuss the real world impact voted to leave in a rejection of a status quo but an approach born of progressive values of immigration as a dynamic of change that hasn’t worked for them in decades. and our desire to see them realised. in communities, for fear of being seen People decided to ‘take back control’, even The starting point must be to view our as racist. though they knew there’d be economic core values through the prism of immigra- Thirdly, concern about immigration consequences. For many of the 48 per cent tion, and to conclude that immigration doesn’t automatically equal racism. Thanks who backed remain, there’s been despair itself is not a left wing value. I am resolutely to the race-baiting tactics of Farage’s Ukip about what the result means for our future, pro-immigration, yet I don’t see immigra- and others, concerns about immigration and what it says about the character of our tion as a value; I see it as a social and are too often answered with a charge country. There can be no doubt, immigra- economic dynamic. The difference is vital. of racism. As we stand up to genuine tion is the issue that throws that divide into By treating immigration as a value, we racism, we must recognise that having sharpest relief. have ended up ignoring some key truths: concerns about the impact of the dynamic Nothing polarises attitudes like im- Firstly, we must recognise that im- of immigration, as separate to immigrants, migration: at one end it’s a universal good migration is not the same as freedom is legitimate. – economically and as a real-life expression of movement. We often treat the two as Many people are genuinely concerned of British openness. At the other, immigra- identical. However, we must be clear that about the impact of the immigration tion is the cause of changes many people while global immigration is the movement dynamic on their community, but the believe have relegated them to the outside of people into Britain from all over the limitations of our discourse mean that of their communities. The former are world, freedom of movement extends that feeling often manifests itself in vitriol portrayed as politically-correct elitists, run- concept to be potentially limitless. directed at people themselves. Therefore, ning the country in their own interests; the The referendum had a clear message: the we must look past our moral disagreement latter are denounced as racist nationalists. limitless nature of freedom of movement, with the conclusions people draw and It’s an issue we, as a country, must despite its proven economic benefits, is not truly listen to what has led those people to tackle head on, because we’ve seen where their perspective. ignoring it leads: exit from Europe, fractured The starting point must Finally, the impact of immigration is communities, and the emergence of a be to view our core not measured, it’s experienced. We often publicly-confident racism. Healing these answer concerns about immigration with divisions is the pre-eminent challenge values through the prism statistics, yet you speak to people across of our time if we are to create a post-Brexit of immigration, and to the country who reply “I get that, but it’s future for our country that offers hope to all. not my experience of immigration.” Ex- Addressing immigration is also vital to conclude that immigration ploring this experience is Professor Justin the left because the national divide is par- itself is not a left wing value Gest’s The New Minority: White Working ticularly deep when it comes to the broad Class Politics in an Age of Immigration and coalition that make up the Labour vote; socially and politically sustainable. Much Inequality. Gest’s central thesis is that over from the working class of our heartlands to of this is down to government’s failure to recent decades “white working class people the urban socialists, liberals and progres- create an economic, social and political en- sense they have been demoted from the sives, and everybody in between. Unless vironment that could make it so. However, centre of their country’s consciousness we rebuild that coalition, Labour will never opposing freedom of movement isn’t the to its fringe. And many feel powerless to again win power and deliver the change same as opposing immigration. do anything about it.” And while we talk Britain needs. Being pro-immigration means making about economic inequality, Gest’s research Our failure to act decisively to bridge it an economic, social and political success is clear: the driving force of people’s the divide has led to a rather incoherent in the long-term: as much immigration perspective is a feeling of social and approach to immigration. At the last elec- and as many immigrants as is possible political marginalisation. tion, it produced a ‘controls on immigration’ and sustainable, to be limited only by our As part of this social trend, immigration policy that left us in electoral limbo. For ability to create the environment for all of is both a cause and a victim: “White work- one part of the electorate, it seemed like a Britain to thrive and feel valued. ing class people believe ethnic minorities cynical ploy, to be forgotten the morning Secondly, immigrants are people; im- have been given social advantages at the after the election; to another it seemed we’d migration is a dynamic. This is another expense of white working class people.” abandoned our core values and principles. dangerous conflation: immigration is a so- Many might question whether this So, the national challenge of healing cial, political and economic dynamic; while feeling is justified; the social and economic Britain’s fractured society is indivisible from immigrants are people, with the hopes, predominance of white people in general the left’s existential challenges, and we must dreams, needs and wants of every person. isn’t in question and they have the advan- address both in tandem: no more retail poli- Both ends of the debate too often muddle tages of language and integration. Some tics, triangulation or tactical positioning. It’s these words to very different effect: Ukip will say this smacks of ‘white privilege’. time to get to the heart of the matter. use concerns about the impact of immigra- However, feeling marginalised and I believe there’s a new approach to im- tion to fuel anger towards immigrants as discriminated against is born of experi- migration that Labour, and Britain, must ‘the other’. At the other end of the debate, ence and perspective, neither of which

13 / Facing the Unknown are quantifiable. To deny the reality of the of government, from entry requirements discussion about how we do this – getting experience of white working class people, and integration support, to economic and it right is too important. quite frankly, smacks of ‘class privilege’ and public service investment to combat mar- However, in the short-term, as we enter ignores the responsibility of government ginalisation. This managed balance is what Brexit negotiations, this managed approach for the structure and success of society. makes immigration sustainable and takes must be driven by two core principles. In absence of anyone else, including the us ever closer to a non-racist, open society. First, we can no longer support limit- Labour party, engaging with this reality, So, what would managed immigration less freedom of movement as our society the BNP, EDL and Ukip have channelled look like in practice? At the heart of the doesn’t have the social, economic or po- that feeling to be anti-immigrant; stoking detailed policy that’s required sits a key litical capacity to make it sustainable. It is embers of blame and grievance. As morally question: how do we replace the current clear Brexit negotiations will be shaped by repugnant as we may find these parties, system of freedom of movement with a the so-called ‘Brexit dilemma’: we know they’ve given the white working class work-permit system? that Britain is unable to absorb limitless not just a route for their frustration but, The answer to this question will be free movement, but a shift to a different importantly, a voice. In the words of one of driven by how we judge who should be system is only possible on condition that Gest’s respondents: able to receive work-permits. This must be we leave the single market, which in turn “The EDL & BNP exploited us. They a carefully calibrated approach given the would present profound challenges to our know we don’t have a voice. They know subsequent impact on our communities economy. However, were we to continue to the government doesn’t give a shit about and economy, so will likely have to be a support limitless freedom of movement, it us. For 20 years we haven’t had a voice. system predicated on (i) the applicant’s will do untold damage to our democracy But to get that voice, we had to agree to skills and qualifications; (ii) the need for and society. be torn apart.” those skills in the economy; and (iii) their The only way Theresa May can resolve With these truths in mind, we must ask economic context. the Brexit dilemma is to negotiate a pan- ourselves – what are we trying to achieve? European agreement on reducing freedom I believe two key values of the society we We can no longer support of movement, as a pre-cursor to negotiating must build are openness and non-racism. limitless freedom of the new terms of our access to the single These values aren’t defined by the number market. Our prime minister is supposedly of immigrants entering the country, but by movement as our society a tough and accomplished negotiator. For the quality of experience every person has doesn’t have the social, our country’s sake, she must now prove it of this country. economic or political capacity Second, we must protect the rights of This allows us to set out the role of EU citizens in Britain. It is both the mor- immigration within that: as much immi- to make it sustainable ally right and sensible thing to do, given gration as possible, without driving social the contribution these EU citizens make tensions to such an extent that racism While the priority is designing a transi- to Britain, and given that we require a breaks out. tion to a work-permit based system, a reciprocal commitment for UK nationals in It says we can be pro-immigration and comprehensive approach requires a broad other EU countries. champion immigrants as part of a non- range of complementary policy to be con- Some will say managing immigration racist and open society, while recognising sidered, including proposals to: establish is a ‘tough’ approach. If limiting immigrant we have to manage immigration so those a Scandinavian-style Foreign Worker’s numbers were the defining objective, I values aren’t threatened. Registration Agency; create a commission would agree. But it is not. This is facing up to a human truth: to consider how we can accelerate the The managed immigration approach nobody is born racist, but immigration that hiring and training of British employees; I am proposing is rooted in left wing reaches levels beyond a society’s capacity expand the Migrant Impact Fund, from values and anchored in the reality of post- to cope can lead, in extremes, to racism. £35m to £500m; extend English language referendum Britain. It will allow us to build That racism fuels a vicious, ugly backlash, learning opportunities; and increase fund- an open and non-racist society, and will in which there is tremendous anger in one ing to enforcement bodies to crack down help rebuild Labour’s electoral coalition, community and tremendous fear in an- on exploitation of workers that has driven staying true to the values and pragmatism other. Nobody wins and everyone suffers. down wages. that have been the basis of our historic suc- It sets back our ideal of an open and non- The policy detail of this holistic ap- cesses and support. It is a means to an end, racist society, makes further immigration proach should be developed by a dedicated not an end in itself. politically unsustainable and, as we’ve seen Labour team as soon as possible, given the It is also an approach vital to Britain in in relation to Syria, means we cannot show critical nature of immigration to a post- a post-Brexit age: in the era of increasing our humanity to the refugees who need us. Brexit world. globalisation, the people and countries This approach doesn’t mean we be- These are complex questions, both in who are successful in the future will be come less pro-immigration, just that we the process we create but also what the an- those open to other cultures, international recognise we must balance our desire to swers say about the nature of our country, opportunities and to new technologies. encourage immigration with our ability to with implications for our economic, trad- And the successful governments will be manage immigration and its impact. This ing and international future. We can’t be the ones who bring their people together, stretches across almost every responsibility squeamish about having a comprehensive to make immigration work for all. F

14 / Fabian Policy Report PRINCIPLE SIX We must put safety first by protecting and developing our security partnerships in Europe and around the world

David Hanson is the Labour MP for Delyn

t is the first duty of government to evidently vital. But while it is true that It is a massive network”. People who are Iensure that our people and communi- terrorism is the most pressing threat facing trafficked into countries become victims of ties are protected and kept secure. Secure the UK today, it would be disingenuous exploitation from illegal working to sexual from crime, secure from terrorism and with to ignore the multifaceted menaces that exploitation. It is imperative for the future strong defence against the many threats attempt to undermine the rule of law and negotiations to include detailed plans on that exist in an ever changing world. That our safety. how together we undermine and destroy is one of the reasons that many of us cam- Crime does not operate in isolation. Very the people trafficking networks. The very paigned hard to remain in the European often serious organised crime helps fund networks that prey on desperation and Union, as cooperation was, and is, key to terrorism, and terrorism tries to punch promote misery and criminality. tackling those threats. through our international security barriers We also face organised crime, which As the world has become more glo- leaving behind voids that people traffickers profits on the movement and sale of nar- balised, so too has crime. What was once a can manipulate. cotics and arms. The UK has some of the situation of localised and isolated criminal People trafficking has provided a tightest controls on drugs and guns in the and security pressures on our safety has background base to international crime world. The pressure that is being exerted on now become a web of interconnected for decades. But more recently, with the our, and our neighbours’, borders by those illegality and pan-national terrorism. horrendous situation in Syria and North trying to smuggle in these banned goods is All UK governments have rightly placed Africa, we have seen this form of crime extraordinary. We are one of the very few significant emphasis on tackling these make itself known on a more prominent nations in the world that have outright threats. Firstly, by developing robust basis. Not a day goes by when we do not ban on handguns, which has drastically domestic security services. Then, as illegal read online or watch on TV distressing im- reduced deaths by firearms in the UK. But activity became increasingly globalised, ages of people fleeing for their lives. Their criminal gangs thrive on the sale and use we created links with our European Union desperation for safety opens themselves of these banned weapons, leaving the UK partners and other national governments. up to unscrupulous people traffickers who a prime target for smuggling. This principle The state has been in a race to keep ahead profit from fear. The UK may not be at the applies to the import of illegal drugs as of terrorism and crime, a race which we can epicentre of this booming crimewave, but well. Our tight restrictions on drug use be proud to have, so far, led. if we fail to work with our international mean organised criminal gangs wish to However, Brexit potentially puts that partners it will be an activity that reaches exploit the resulting demand in supply. The progress at risk. It’s now crucial we lay our shores. UK government is constantly having to down the tests we should be setting the Only recently eighteen people were res- re-evaluate the ability of the border force government in renegotiating our future cued from an inflatable craft which began and police to track down and bring an end relationship with the EU to ensure we keep sinking a mile-and-a-half off Dymchurch to these criminals; a task that will dramati- the UK safe. in Kent. The Home Office’s very own im- cally change with the UK leaving the EU. To do so we must fully understand the migration enforcement team recently said As it stands, we face these challenges current threats we face, which are led by “organised crime groups work across bor- within a framework of directives and the threat of terrorism. Preventing and ders, not just in the UK. They are working multinational agreements that being a disrupting potential terrorist acts is self- all over Europe, into the source countries. member of the EU provides. Understand-

15 / Facing the Unknown ing these structures is an important step for understanding what we need to secure for the future safety of Britain. One of the most important institutions that accompanies the EU is Europol. It has helped to carry out over 18,000 cross- border investigations each year. Coopera- tion within this organisation has resulted in many criminal and terrorist networks being disrupted and the arrests of thou- sands of criminals, as well as action to tackle the scourge of people trafficking. It has also led to more than 4,000 suspected criminals being sent back from the UK to other EU nations, under the European arrest warrant, and over 700 suspects being returned to the UK to face justice. In total, since 2014, 11,217 arrests have taken place because of the EAW. Currently, being a member of the EU also means that we are a member of the European Union Agency for Network and Information Security (ENISA). This little known institution focuses its attention © Mario Mantel predominantly on the private sector. It tions both within and outside the EU. But that will address this. Business security is is designed to ensure that the internal we should continue to build upon current often overlooked but as crime has changed market of the EU can work at its most ef- arrangements with other ally nations. Not policy must also. More and more of the ficient by providing the private sector with only does this improve our safety at home UK private sector depends upon a secure the support and information they need to and abroad, but it also gives our security cyberspace in which to operate. Reassuring meet the minimum standards of security. services access to intelligence they need to these businesses that Britain is serious This is an often overlooked area of crime. develop new counter-terrorism techniques. about this could give us the opportunity to If we cannot provide the protection to The second priority for the renegotia- grow and develop our economy. This is an our businesses from organised crime and tion should be that we must remain a part opportunity that should not be missed. state backed industrial espionage we can of Europol, which has acted as a conduit Finally, we must go forward into the no longer proudly say Britain is the best of knowledge for police services across world establishing new relationships with country to do business in. Europe. Its ability to work cross-border has our allies to tackle pan-national terror- So, how then do we counter threats to allowed police services to exchange not ism. We should not ignore our excellent our security in life after Brexit? The first and only information about organised criminal partnerships with EU nations, as only a most important goal that must be reached activity and terrorist organisations, but it Europe united by a determination to defeat is to maintain cooperation with the EU. also aids in training police. We also must terrorism will succeed. We have had a The Labour party and Britain are both retain the ability to access the European ar- robust counter terrorism strategy in place, internationalists at heart, and that means rest warrant provision – not to do so would but we cannot rest on our laurels. Moreo- that we should never allow our govern- mean negotiating individual treaties and ver, it would be wrong for an international- ment to turn its back on our regional while we do so allowing home grown and ist Labour party and country like ours to neighbours. Cooperation with other nation international criminals to be let off the hook. not use our knowledge and experience of states is the only way we can continue to Thirdly, post-Brexit Britain will need to tackling extremism and turn away from tackle, undermine and defeat globalised formulate a robust strategy for protecting our partners who need our help. We should crime and terrorism. We only need to look private sector industries from cybercrime. be sharing our expertise and helping towards nations that do not live within, It would appear that leaving the EU would our allies in training their security forces or have access to, a common union of see us leave the ENISA. So we need to build in our techniques, as well as learning from states to bolster their security to see that a relationship with our European partners our partners. they are developing those very same links. and allies around the world. Only then can Our prosperity is based upon our The most famous of these is the Five Eyes we provide the private sector with the best security. Now, more than ever, we need intelligence alliance between Australia, advice and resources to combat industrial the government to re-evaluate what our Canada, New Zealand, the United States espionage and malicious attacks. If a Brit- security partnerships mean and how best and the UK. Because all UK governments ish government is serious about maintain- to utilise them. The first duty of govern- have taken security seriously we are ex- ing our place as one of the best countries ment is to provide security and this should pertly placed to still benefit from organisa- to do business in, we need to have policies underpin a post Brexit Britain. F

16 / Fabian Policy Report PRINCIPLE SEVEN We must see the result as a rejection of the economic status quo, and use the opportunity to build a fairer and more inclusive economy

Rachel Reeves is the Labour MP for Leeds West

wo days before the EU referendum ease with fewer EU migrants competing lost the referendum. My head had told T I visited the largest private sector with them for work. me – the economist – that we would employer in my constituency. A recent study by the Resolution win because the consequences of leav- It’s a business I know well. Many there Foundation found that, while widespread ing were a risk voters wouldn’t take. But, voted Labour at the last election and I had migration into the UK had no overall by Friday morning, we knew the leave spoken to some of them during the gen- impact on the wages of British workers, campaign’s emotional message was eral election campaign a year earlier. it had caused a “slight drag on wages” in stronger than the rational arguments of the The business employs about 800 people, some sectors. remain campaign. up from 750 in 2007 and 500 during the last The remain campaign consistently re- Looking back, I think politicians’ failure recession. The business helps major retail- fused to acknowledge that effect on wages to acknowledge voters’ legitimate con- ers import clothing and get their goods to – even though people felt it was true. cerns meant we didn’t earn the right to be shops across the country. The chief ex- Leaving won’t mean higher wages because heard on other issues – like the rights at ecutive works with a community centre to the impact of a recession, or at least slower work that are now at serious risk outside of recruit young people, although – like many growth, outweighs any positive impact of the EU under a Conservative government. employers – they also hire many Eastern less competition for jobs, as the Resolution We didn’t convince those who were European workers, particularly Poles. Foundation study highlighted. uncertain or who didn’t vote at all. But we Despite the support for Labour, I But it is important to acknowledge that asked the question and so we must respect knew it was going to be a tough audience. being a member of the EU did help keep the answer. Many workers blamed Europe for the wages lower for many workers. Workers So, how do we interpret the vote and fact their wages had barely kept pace need a pay rise and they resent the fact what should we on the progressive left be with the rising cost of living. Most felt that others keep getting richer while they demanding from the renegotiation? immigration was too high and out of control. work hard but struggle to keep their heads Immigration controls and ending free Few thought the government was on above water. movement has to be a red line post-Brexit their side. They listened politely while I The remain campaign – and Labour in – otherwise we will be holding the voters talked about the risks of voting leave. But particular – had little to say to working- in contempt. Subject to that, we need the the raw anger came out in the question class voters with whom we, above all greatest possible access that we can get to session afterwards. the other parties, should have been able the single market without free movement. The arguments included: “who cares if to communicate. We did not offer any Of course, British firms exporting goods leaving Europe meant fewer jobs? The jobs solutions to those who felt locked out and European importers to Britain have all go to foreigners anyway”; and “there from opportunities. shared interests. Neither side will want to was a massive recession when we were in There was nothing to say about better pay higher tariffs. But this will involve dif- the EU, so you can’t say leaving will cause skills provision to boost wages, either in ficult negotiations because the EU will not a recession”. the form of continuous education or about be able to offer better terms to countries The people I met believed leaving Eu- how we would use industrial policy to outside the EU club. rope would mean less pressure on public deliver more secure, well-paid jobs. The challenge for Labour now is how services and more money for them because I knew in my heart at lunchtime on we get the best deal for working-class the downward pressure on wages would the day of that workplace visit that we’d voters – many of whom have drifted away

17 / Facing the Unknown from us as a party since the 1970s to other country is stark. The capital received £5,203 They must now guarantee to protect the parties including Ukip – and ensure the more per head in capital investment than rights enshrined in EU law and guarantee best economic settlement in terms of trade, in the north-east, according to an Institute that trade deals do not result in greater pri- immigration, growth and good jobs. for Public Policy Research North report vate sector involvement in public services We have to focus on our key priori- in 2014. or a relaxation of workers’ rights. We must ties. We need tough negotiations to keep We must ensure regions in the north press for these crucial guarantees. exports and imports tariff-free in the inter- and elsewhere get a fair deal when it comes To make certain we avoid a race to the ests of British – and European – exporters to investment in transport and other key bottom, we should continue to shadow the as well as consumers. We must also ensure areas like providing proper flood defences EU’s employment legislation where they the fullest possible access to the single – something that’s crucial to businesses make advances. A future Labour govern- market for the UK service sector. If that in constituencies like mine of Leeds West. ment should go beyond this by working in means signing up to rules on regulation These are some of the schemes that have partnership with business and trade unions or data protection, for example, that to happen if the Northern Powerhouse is to create more good, well-paid and secure would be a price worth paying to pro- to ever become a reality. jobs. At the very least, shadowing EU-wide tect jobs and investment. The chancellor must be prepared to advances in employment practices will be We also need to be clear about what the capitalise on the ultra-low borrowing rates a vital check on the resurgent right-wing chancellor must do to steer the UK through to help fund investment outside London – voices of the Tory Party who are now at the these turbulent times and build a strong rates that have fallen further still since we cabinet table. and resilient UK economy outside the EU. left the EU. Everything that has happened since This means urgent action in a number As well as environmental, energy the British people voted to leave the EU of areas to rebalance the economy away and transport infrastructure, we should shows that we need to take these actions from the focus on London and the south- be doing more to get behind our digital urgently. Just a few months after the result, east to ensure good quality and well-paid economy. Our digital infrastructure is cru- we are seeing the impact of Brexit with jobs in all areas of the country. cial, not just to tech firms and thousands firms cancelling or delaying investment, The new chancellor Philip Hammond of businesses, but also to rural and home- and jobs at risk. has said little about George Osborne’s based entrepreneurs who need good After the vote, Ford has warned Brex- so-called Northern Powerhouse and the connections to market their skills in Britain it could mean job cuts and rising car investment and jobs he promised which and abroad. We have some of the slowest prices. Nissan has suggested future could boost our northern towns and cities. and patchiest broadband in the devel- investment decisions about its plant in That investment is vital because it is oped world. The network needs more in- Sunderland will depend on the outcome of Labour communities outside the relative vestment to unlock the creative potential Brexit negotiations. prosperity of London and the south-east of all our citizens. The Bank of England has cut the base that stand to lose most by our departure Second, to ensure we can boost employ- rate to a new low, and the Chancellor from the EU. We need a coherent industrial ment rates across the whole country, we has been forced to promise to replace EU strategy, not just as a knee-jerk reaction must do more to support parents of young funding for scientists, farmers and retain to Brexit, because this is what has been children who want to work. We should move many other EU schemes after our exit – at missing since the Conservatives came towards a system of universal free childcare an estimated cost of £4.5 billion a year. He to power six years ago. The prospect of for all working parents of pre-school has also said the Treasury will guarantee Brexit makes the need for that strategy all children. The chancellor could fund this by to back EU projects signed before the the more urgent – to protect jobs, boost cancelling his predecessor’s regressive and Autumn statement. employment and to extend opportunities expensive cut to inheritance tax which – set But with the economic data deteriorat- across the country. to cost almost £1bn a year while entrench- ing, more must be done. As our economy Too many workers are stuck in jobs that ing inequalities in our society. The money struggles to work out its new place in the fail to use their talents and skills and offer would be better used creating a universal world, the government needs a strong and little prospect of development or progres- entitlement to childcare for all working sensible industrial strategy to rebalance sion. Too many people are locked out of the parents of children aged two. It would ex- the economy and protect jobs and growth labour market by childcare costs, disability pand our workforce and make it easier for across the UK. or other barriers and too many employers firms to recruit the talent they need. All this must happen while we still take face obstacles to their expansion, such as Third, we will need to keep a hawk eye heed of the referendum result and negoti- inadequate infrastructure, lack of access to on employment protections and rights – as ate our exit from the EU. If we fail to do finance and difficulty finding skilled staff. well as environmental and consumer that, people will despair because it will So what should the chancellor do to protections and banking regulations. The confirm their fears that no one is listening. address these challenges? Conservatives have always been deter- Brexit must be a wake-up call for anyone First, the government must ensure mined to strip away workers’ rights with who wants government by the people, adequate investment in infrastructure their proposals in the Beecroft report and for the people, of the people. And we on across the country – not just schemes promised a “bonfire of regulations”. Our the progressive left must use this to help like Crossrail in London. The investment membership of the EU made it harder for build a fairer and more inclusive model of gap between London and the rest of the them to do that. economic growth. F

18 / Fabian Policy Report PRINCIPLE EIGHT We must reaffirm and reset employment protection to make clear our position as the workers’ party

Iain Wright is the Labour MP for Hartlepool and chair of the business, innovation and skills select committee

rexit has unleashed great uncertain- supposedly interfering EU officials. The government rather than the European Bties. Throughout the discussions and vote to leave on 23 June was meant to bring Union. As a left-of-centre politician, I am negotiations that will take place over the to an end to barmy Brussels bureaucrats not going to argue against proposals which next few years, we need to be mindful of dictating bans on bananas being too curvy will improve the conditions of working the need both to retain and to reset the and cucumbers being too crooked. It was people, especially those who are lower economic model of regulation which pro- meant to free businesses from ludicrous paid, but we should be clear where those tects workers. and unnecessary red tape and bureaucracy. regulations come from. I use the word retain because our On workers’ rights, somebody in a meeting British membership of the European membership of the European Union has with businesses actually suggested to me Union enhanced protection of workers’ undoubtedly underpinned many of the that if the UK freed ourselves from the EU, rights in this country. And yet to a large employment rights in this country over the it would be easier to sack people – and degree, workers rejected this. Why that was last generation. It has guaranteed a mini- therefore much easier to hire people. the case is the reason why we also need to mum amount of paid holiday, it has given Of course, the reality of regulation use the negotiations as an opportunity to the civilising protection of maternity and is much more complicated than that. reset the regulatory framework affecting paternity leave, it has allowed part-time Speaking with businesses, as I do all the businesses and workers. agency workers the same rights as their time, it has often been difficult to get Voters rejected continuing membership full-time colleagues, and it has ensured them to specify which particular directive of the EU because they couldn’t see how that people are allowed in law to have a from the EU they feel compromises their the regulation of employment rights was break after working long shifts and succes- ability to compete and innovate. That’s directly affecting them, their families and sive days. In many ways, this regulation has not to dismiss their concerns: perceptions their communities for the better. On more had a greater impact on workers than any of large and ever-growing burdens on than one occasion, I have been asked by other part of our membership of the EU. business can have a powerful impact upon voters a question along the lines of: “If Somewhat paradoxically, however, firms’ behaviour when it comes to enter- the EU has helped workers, how come regulation had more of an impact upon ing new markets, innovating in products there are still zero hours contracts and the result of the EU referendum, especially and services to remain competitive, and companies like Sports Direct don’t pay the amongst traditional working class vot- employing new people. minimum wage?” ers that I represent in Hartlepool, than But if one scratches below the surface a In many respects, my constituency of perhaps most would realise. The rhetoric bit further, firms complain that an increas- Hartlepool in the north east of England is of “taking our country back” meant many ing volume of bureaucracy emanates from illustrative of the challenges the country different things to many different people. Whitehall rather than Brussels. Matters and the Labour Party face. Hartlepool But it was closely linked to a determination like the national living wage, the ap- voted to leave the EU by a ratio of 69:31. to wrestle back responsibility for framing prenticeship levy and quarterly tax returns The electorate dismissed the argument laws and regulations from unelected and for smaller business come from the UK that workers’ rights underpinned by

19 / Facing the Unknown EU action had helped individual employ- to court for unfair dismissal, both reflect ploitative. A pro-business attitude should ees. Their voting decision was a rational and are symbolic of the current mood go hand-in-hand with being pro-worker, – if somewhat angry – choice, based upon towards regulation and its impact upon reflecting not an idealistic and unrealistic their economic experiences over the last 30 the employment model. The changes have view that everybody should just get along, or 40 years. nothing to do with European legislation, but rather acknowledging that success in Over the course of my lifetime, given that they stem from the wishes of business comes from secure workers who Hartlepool, the town in which I was born, the government in Westminster, but they are able to produce innovative ideas. has been hit hard by globalisation and push the line away from the worker in a This is the context in which deindustrialisation. Heavy industry, which disproportionate and unfair way. It is lit- regulation should be seen. Regulation remained – just about – the bedrock of the tle surprise that tribunal cases for unfair must always underpin a modern and local economy when I was born, has all dismissal have fallen by some 70 per cent successful economy. Labour must argue been obliterated, and with it a reassuring since the changes were implemented. for a regulatory system which rewards certainty for life and employment chances. All of this has given us an economic innovation and secures prosperity for Despite Hartlepool’s nuclear power model where the cards are stacked against entrepreneurs, as well as protecting and station, which keeps wage levels higher the worker. It is little wonder then that vot- nurturing workers’ rights. than the sub-regional average, the loss ers in Hartlepool and across the UK voted This is also the context in which the of much of the town’s economic base has to leave the European Union – it was never negotiations towards exiting the European been acutely and painfully felt, and not seen to work in their interests. Union should proceed. The government easily replaced with comparable employ- Workers’ interests, therefore, should must ensure that current rights of workers ment opportunities. Jobs have been lost be the priority of the Labour Party during underpinned by membership of the EU are not to immigrants – something like 98 scrutiny of the Brexit negotiations. The retained. Anything less would be a clear per cent of people living in Hartlepool are party should be seen to be on the side of betrayal of protection for workers. white and British-born – but to the Far East the worker and to maintain those hard- But the government needs to see these and automation. fought for rights and protections on anti- negotiations as an opportunity to go fur- Our country now runs on a precarious discrimination, equality and health and ther and reset employment protection. It economic model. While, for some, job safety. Some elements of the Conservative can reverse the tribunal fees decision made security has increased, wage stagnation Party will wish to dismantle much of this by the coalition government. for people on low to medium incomes is a regulation. Cutting red tape tends to mean And we must ensure that all stakehold- fact of life. In addition, the gig economy, in cutting workers’ rights. We should stop this ers can play an active role in the formation which workers may receive work for a short from happening. of regulation, rather than allowing govern- and intermittent period of work, without But equally, being pro-worker should ment to impose new burdens unilaterally any associated protections like holiday pay in no way be interpreted as being anti- either without consulting or at the direction or pension contributions, is rising. business. We cannot see a rise in the living of powerful lobbies. That will mean proper How is the EU model of employment standards of all in this country if we do not and formal involvement in the regulatory rights even relevant in the era of the gig encourage and nurture the entrepreneurs process for both businesses and workers. economy? Prices have not risen for con- and businesses that generate wealth and It will also mean a focus on employment. sumers, but that is little comfort for people create success and prosperity. The general An economy might have the best regula- struggling to make ends meet and who are anti-establishment attitude which was a tory system on paper, but if enforcement of seeing falling wages. Globalisation may big part of the leave campaign – whose that system is not given proper priority, it is have provided the opportunity to buy a campaign, ironically, was led by represent- meaningless. The lack of a minimum wage cheap t-shirt or telly, but that could be at atives of the establishment elite – cannot at Sports Direct underlines this. Labour the cost of jobs in communities like mine. be allowed to descend into the view that must ensure that enforcement agencies Our business, innovation and skills somehow all business is inherently ex- like HMRC and the Health & Safety Ex- select committee inquiry into working ecutive are given sufficient resources and conditions at Sports Direct found treat- powers to be able to carry out their roles as ment of workers more akin to a Victorian thoroughly as possible. workhouse than a modern and supposedly The vote for Britain to leave the reputable business found on virtually every European Union exposed deep-seated high street and retail park in Britain. Sports flaws with our current economic model. Direct’s founder and majority shareholder As Labour enters the negotiations, we admitted that the company was not paying must stand firmly on the side of workers the national minimum wage. How was who feel disempowered and ignored. employment protection, from Europe or But we should also remember that we anywhere else, helping those workers? can do better for business as well. Labour The changes to the tribunal system by must use this opportunity to champion the coalition government in 2013, which regulations that deliver real rights for work- make it more difficult and much more ex- ers, business innovation and long-term

pensive for a worker to take their employer © Werner Schnell value creation. F

20 / Fabian Policy Report PRINCIPLE NINE We must build on the EU’s strong environmental record

Ruth Davis is a writer and campaigner on nature, climate and politics

ike any self-respecting observer for the government. The overwhelming its courts and parliament, for the opaque Lof politics, I am always keen to know majority of voters, leave and remain, do executive authority of Whitehall, where what the country’s taxi-drivers think about not want to see them watered down after Minsters and civil servants too often seek the state we’re in. So when I was late for Brexit, and many believe they should be to side-line MPs, ignore or trample on in- a meeting the evening after the EU refer- strengthened. Memories of recent defeats dependent advisors, and bypass the courts. endum, I grabbed a passing cab and asked inflicted by Britain’s army of nature lovers Recent revelations about the neutering of my driver what he thought should happen should also focus Conservative minds. Natural England (the English regulator to the UK’s green laws after Brexit, since so George Osborne’s efforts to gut the plan- of wildlife law) show how far down this many of them originated in Brussels. ning system were seen off by the National path we already are. Great vigilance will He was a confident leave voter and Trust, whilst a botched attempt to sell off be needed if our citizens are not to lose member of the Royal Society for the the nations’ forests stirred up a hornet’s access to environmental justice when we Protection of Birds. He was also unaware nest of resistance and was abandoned as a leave the EU. that many of our environmental laws were result. Any attempt at a post-Brexit bonfire The task of securing robust laws and made in Brussels, and was keen to retain of green regulation would likely suffer a governance will occupy green campaigners them. But, perhaps more significantly, similar fate. for years to come. But they must also find he could only see things getting better The first priority of the environment space to understand and influence new since, in his view, the British people are movement must therefore be to make areas of policy, including Britain’s trading renowned for their love of wildlife and a simple and compelling case for the relationships with Europe and the wider nature. Outside of the EU, he was retention of our existing environmental world. In some cases, it may be relatively confident these values would have room to laws – showing strong public backing, easy to make the case for embedding or grow and flourish. and working in partnership with busi- retaining high environmental standards His perspective illustrates the risks and nesses whose investments depend on such in any future trade deals. The UK’s car opportunities now facing the UK environ- regulatory stability. industry, for example, is geared towards ment movement. A large proportion of Once this principle has been secured, producing hybrid and electric vehicles for the laws that protect our countryside and we will have the time and space to adapt European markets, markets that will grow natural resources are indeed underpinned these laws more closely to the contours as the EU and UK clean up their transport by the EU, and could be unravelled by a of our particular geography, and to focus system and tackle air pollution. Ambitious government with an appetite for deregula- them on today’s challenges. This includes common standards make obvious eco- tion. And yet the UK remains a place where the restoration, as well as the protection, of nomic and environmental sense. people care deeply about nature, and have treasured landscapes and ecosystems. But But the impact of trade negotiations a patriotic pride in protecting it. in doing so, we must argue that all changes on other elements of environmental law Polling commissioned by Friends of the are subject to public scrutiny. The people could be less benign. It is unclear which, Earth demonstrates why retaining green of the UK will be poorly served if they if any, consumer protections the govern- laws would be the politically wise option swap the jurisdiction of Brussels, including ment might be prepared to sacrifice to

21 / Facing the Unknown secure agreements with countries whose social and economic criteria, and in doing to capture the opportunities offered by goods are manufactured to much less strin- so recognises the intrinsic worth of coastal burgeoning clean technology markets. gent environmental and safety standards communities, is possible; but for green The creation of a new department than our own. Such trade-offs are groups to support this will require them to (BEIS) that integrates industrial and unpredictable, may be hard to map and reach beyond their comfort zone, becom- energy policies has real potential, but it follow, and require new areas of resourcing ing advocates for social values that extend must signal quickly that the government and expertise. beyond the environment. intends to stabilise the regulatory environ- Farming and fisheries policies are more There is also a choice to be made about ment for those wishing to invest in low- familiar areas for environmental cam- the balance between regulation and finan- carbon Britain. paigners, but here too new approaches will cial support in farm policy. Wildlife would Some of the right policies are already be needed. The common agricultural and certainly benefit if some kinds of farming in the making, including the phase out common fisheries policies will disappear that are uneconomic and environmentally of coal-fired power, and a commitment even under the softest of exit strategies, unsustainable came to an end. Yet taken to to leadership in offshore wind. But these leaving the government with the complex its extremes, an effort to remove all support must be promptly confirmed. Equally task of creating a whole new policy frame- payments, and to protect the environment important is a clear-sighted view of where work for these hotly contested sectors. purely through regulation, would almost common standards are needed to foster In theory, it is hard to disagree with certainly end in practical and moral failure. UK industries, for example vehicle emis- my cabby, who argued that we must be In such circumstances, the farming lobby sions, or where EU co-operation is needed able to do better than the common agri- would insist on light-touch regulation as to maximise efficiencies and cut costs, such cultural policy or the common fisheries the quid pro quo for losing financial sup- as grid inter-connections with Ireland policy, modern by-words for bureaucracy port; whilst the exposure of the rest of the and the continent. Finally, the government and environmental harm. But to do so will sector to the global marketplace would put will need to develop a suite of policies take clear thinking and bold action by the an end to centuries of rural life and culture, that can make the UK world-beaters in environment movement. and to much local food production too. low-carbon manufacturing; including low This is because at their core, these are carbon steel. policies are aimed at maintaining European Our first ‘Brexit government’­ Felicitously, these are all areas where food production and rural employment. has chosen, rhetorically at the government’s social ambitions, boost- Their loss therefore begs a central ques- ing well paid work and tackling ingrained tion: do we, too, wish to support domestic least, to use this moment to inequality, are well-aligned with com- food production and the communities address head on the toxic mitments to cut pollution. They are also involved in it? And if so, what do we expect areas where the devolved administrations, in return? Or would we prefer to leave the after-burn of globalisation cities and regions have vital roles to play survival of our farming and fishing busi- in building out clean infrastructure, and nesses to the market, and seek to protect A far happier outcome would be a designing industrial policies tailored to the environment simply by regulating what continuation of some form of support pay- their local needs and capacities. is left? ment, in exchange for the active protection In the end, whatever we think about the For green campaigners, this choice will of the country’s soils, water, climate and referendum result, our first ‘Brexit govern- determine our relationship with those who wildlife. Happier still would be a commit- ment’ has chosen, rhetorically at least, to live and work in the countryside for a long ment to new forms of rural devolution, use this moment to address head on the time to come, as well as the future of our in which such agreements were shaped toxic after-burn of globalisation; the corro- landscapes and habitats. in part by local partnerships; producing sive inequality, the loss of a sense of control In the fishing industry, for example, a distinctively Devonian, Lancastrian or and shared identity, the lack of confidence a market-based approach could see the Snowdonian land management policy, in the future. privatisation of fishing rights, leading based on the character of a county, river In response, the environmental move- ultimately to their consolidation in the catchment or region. ment must now prove that it has answers hands of a very small number of vessels Ecological localism of this kind needs to these problems, and that it is on the and owners. Such an outcome might suit big hearts as well as cool heads, but could side of those who have lost out. It will some environmental groups, if it comes offer huge rewards. A similar level of skill need to demonstrate how stable laws with relatively ambitious environmental will be needed to tackle that other great and good governance protect the health standards. But it could also put an end to post-Brexit challenge – the transition to a and well-being of citizens; but also significant parts of the UK’s traditional zero carbon energy economy, outside of how local partnerships with clean tech in- fleet, including many of those who sailed the framework of the EU. Because whilst dustries, farmers and fishers can grow a fairer up the Thames earlier this year in the, the UK’s Climate Change Act stands and more balanced economy. In effect, probably mistaken, belief that Brexit of- independent of European legislation, and we need a post-liberal green politics, with fered them a chance to protect their way the Paris Agreement provides a powerful devolution and social justice at its core. of life. global framework for action, the govern- Creating it will shape a new generation An alternative approach, that allocates ment will need to resist the temptations of campaigners; as well as the green fishing rights based on environmental, of a post-Brexit deregulatory fix if it wants and lovely land on which they stand. F

22 / Fabian Policy Report PRINCIPLE TEN We must accept the referendum’s outcome and secure the best possible deal

Emma Reynolds is the Labour MP for Wolverhampton North East

he decision by the British people in June emphasised that the remain vote was the deal with our European partners, then we T 2016 to leave the European Union rep- majority view in their constituencies and leave. If only it were that simple. In reality, resents a seismic shift in British politics and that only 37 per cent of Labour voters opted there will probably be three stages. for our place in the world. The consequences to leave. However, none of this provides First, triggering article 50 will start the of the referendum will reverberate for comfort to the seven in ten Labour MPs formal two-year process of withdrawal. This years to come. Extricating the UK from an whose constituents voted by a great margin shouldn’t just be a decision for the prime economic and social partnership with our to leave. minister or the government. Parliament nearest neighbours spanning decades will In common with the majority of Labour should debate and vote on when to trigger not be easy, nor will it happen overnight. MPs and members, I am a passionate pro- article 50. It would be logical for sovereignty The process of leaving will be complicated, European. I campaigned with my heart and obsessed Eurosceptics, who argued so sensitive and lengthy. soul for a remain vote because I believe that forcefully for the supremacy of the UK At this critical juncture, it is vital that our EU membership makes us stronger, parliament, to take the same view. But they Labour has a strong voice in the negotia- more prosperous and influential in the appear to have gone quiet. tions with our European partners. We must world. Of course, leaving the EU is a bitter Second, there is likely to be a transitional respect the mandate of the British people pill for any progressive pro-European to arrangement. Some have suggested that and do everything in our power to secure swallow, not least because it is the poorest we fall back on our European Economic the best possible deal for our communities. who stand to lose the most. But as progres- Area membership. This Norway-style ar- Our approach must be well considered and sives we have a moral duty to listen to the rangement would, however, involve the free mindful of the risks and uncertainties. We people, respect their decision and respond movement of people and would therefore must hold the government to account and to their concerns. A failure to do so would be unacceptable to many who voted leave. mitigate the economic impact on those on be wrong, anti-democratic and would Third, the negotiation of a trade agree- low and middle incomes. further corrode the trust that has been lost ment will follow a different, complicated This was not the conclusion that with many working-class voters. While the and more difficult decision-making pro- everybody in our movement drew in the Liberal Democrats can perhaps afford to cedure. If it is a wide-ranging agreement, aftermath of the vote. Some called for article disrespect the result in a cynical attempt to national parliaments of the EU 27 will also 50 (the legal basis for leaving the EU in the re-establish themselves, we should not be have to ratify it. It is highly likely that this Treaties) to be triggered immediately. That so opportunistic. process will take longer than two years, would have been a serious mistake given So if the real challenge is to accept even if it takes place alongside the article 50 how unprepared the government is to carry the mandate and to get the best deal for negotiation. out these negotiations. Some demanded our communities, what should our ap- The complex nature of the third stage that parliament should overturn the result, proach be? We must start by being clear seems to have been lost on the new in- stressing that leave voters had buyer’s about the process. ternational trade secretary, Liam Fox. He remorse. But this is purely anecdotal and Some politicians and commentators see appeared surprised when the Americans there is no evidence it is widespread. Others this as a one-stage process: we negotiate a recently told him that any deal would

23 / Facing the Unknown have to wait until our relationship with same sentiment. It is a 75 per cent view, not ing firms. That means rebalancing the the rest of the EU was clear. When he a minority view. economy whilst supporting our service promised that the UK would withdraw from For many voters, concerns about im- industries, including financial services the customs union, the prime minister over- migration were compounded by a sense and related professional services both in ruled him, saying she had not yet decided that globalisation and the economy overall the capital and beyond . The government on that vital element of our negotiations. is not working for them. Insecurity in has to help create the right conditions Until there is clarity about whether we will the workplace is rife and pay restraint in for global firms, some of whom will be continue to share a common external tariff the public sector is the norm. There was considering taking their jobs, headquarters with the EU, and other crucial questions, a hankering to wind the clock back to the and investment elsewhere. striking trade deals with other countries will 1950s and 1960s prior to joining the Euro- The process of leaving the EU and be off the table. pean Community, and a nostalgia for an negotiating a deal might go well beyond Labour must have a strong voice at every era when well-paid, secure jobs were easy 2020. The Labour party must have a stage of the negotiations. It shouldn’t be to come by. clear strategy to influence the entire left to Tory ministers to set the agenda. We should seek to protect all the pro- process. Our priority must be to secure Britain’s negotiating strategy should not gressive aspects of our membership, such the best possible deal for the communities be based on the tax-cutting, anti-workers’ as the legislation which protects workers’ that we represent, and to push the govern- rights approach of Conservative Euroscep- rights and the environment. However, it is ment to allow MPs to scrutinise their plans tics. The concerns of working people must my strong view that no future deal can re- at every stage to ensure that parliament be put front and centre. tain free movement of people in its present is not bypassed. There should be a debate For Labour MPs and activists who form. We must argue for restrictions while and a vote on when to trigger article were speaking to working class voters, the getting the best possible economic deal in 50; not to block the process of leaving result of the referendum was not surpris- the circumstances. This won’t be as good the EU, but to shape the government’s ing. My constituents in Wolverhampton as the status quo but leave voters clearly position in the negotiations and to influence voted overwhelmingly for leave, and said that their concerns about immigration the final deal. More broadly, our prior- their principal reason was immigration. trumped their worries about the economic ity should be to transform the economy According to polling carried out by James cost of leaving. into a high-skill, high-wage economy, with Morris, concerns about the level of im- We must continue to call on the an active state and strong social security. migration are not confined to those who government to pursue an active industrial This is our task and for the sake of our com- voted leave. Remain voters also express the strategy to boost British manufactur- munities we must rise to the challenge. F © Ivan Bandura

24 / Fabian Policy Report PRINCIPLE ELEVEN We must hold leave campaigners to account for their broken promises

Chuka Umunna is the Labour MP for Streatham

espite the disappointment many of of Ireland would be maintained, or that great recession of 2008/09. “Project Fear” is Dus feel after the vote to leave the Eu- EU migrants currently resident in Britain starting to look a lot like Project Fact. ropean Union back in June, there is a path would have the right to remain. The opportunity for Labour is to make forward for the progressive left. We must Apart from these promises, they clear to the British people that it is the gov- hold the Conservative leave campaigners furiously denied that leaving the EU, our ernment which is responsible for this ca- to account for the impossible promises they biggest trading partner and source of lamity. Theresa May has said “Brexit means made during the referendum campaign, inward investment, would have any nega- Brexit” and put the three Brexiteers – Boris while pushing for a progressive Brexit deal tive impact on the economy. Institutions Johnson, David Davis and Liam Fox – in with the EU. and experts that warned of lower growth, charge of making it work. Andrea Leadsom First, it is important to say that our party higher prices and greater unemployment and George Eustice, who promised during must accept and respect the decision made were damned by the leave campaign for the campaign that the UK government by 17 million leave voters. But the form “scaremongering”, “talking Britain down”, would match the funding British farmers Brexit takes is up to parliament. Our party and indulging in “Project Fear.” Even currently get from the EU, are now respon- must play a full role in shaping it. And the the widely-respected Institute for Fiscal sible for agriculture as ministers at DEFRA. deal that emerges must take into account Priti Patel, who talked of how Brexit would the wishes of the 48 per cent as well as the We must not stop from boost Britain’s partners in the developing 52 per cent. holding the government to world, is at International Development. Accepting the result does not mean ac- A government that has created a DIY cepting the way in which it was achieved. account, and pushing our downturn, and is stuffed with people who There is no getting away from the fact vision of a positive future made promises to the British people they that Vote Leave ran a cynical and menda- relationship with Europe cannot keep. That is a potent line of attack cious political campaign. It was a victory for Labour and the left. achieved on the back of myths, simple lies, Our focus should not be wholly nega- and impossible promises. We must not Studies was said to be untrustworthy, as tive, of course. We have a responsibility to stop calling them out for it. it had in the past done work for the Euro- campaign passionately for the best Brexit So what were the Vote Leave prom- pean institutions. deal we can get; a deal that maintains as ises made during the campaign? One In the weeks since the referendum, many of the advantages of our EU mem- everybody remembers – that exiting the these promises have been shown to have bership as possible. This means continued, European Union will mean £350 million a been hollow. On most of them, nothing full access to the single market; retaining week extra being spent on the NHS. Many more has been heard. On £350 million a vital EU legislation protecting our environ- other pledges were aimed very specifically week for the NHS, leavers began back- ment and working peoples’ rights; and at Labour voters, such as spending more tracking on their commitment almost as close co-operation on counter-terrorism. on reducing primary school class sizes, soon as the result was known. It was not It also means guaranteeing the right of EU scrapping VAT on household energy bills, a promise, merely “an aspiration” Chris residents in Britain to remain here. That the and increasing junior doctors’ pay. On Grayling said the day after the referendum. government has not definitively done so is immigration, the promise of an Australian- On the economy, Vote Leave’s dishon- a disgrace. People are not bargaining chips. style points-based system was doubtless esty is plain for all to see. The value of the We must not stop from holding the attractive. Aside from this, Boris Johnson pound has plummeted to its lowest level leavers in government to account, and promised 300,000 new jobs as a result of since the 1980s. The Bank of England is pushing our vision of a positive future post-Brexit free trade deals. And they made forecasting lower growth, higher infla- relationship with Europe. That way, we can reassuring noises that nothing would tion, and more unemployment. Surveys heal the wounds that have been created by change in certain areas – for example, that of businesses and consumer confidence the referendum, and deliver as positive a the common travel area with the Republic have fallen to levels last seen during the future for Britain as possible. F

25 / Facing the Unknown EUROPEAN REFLECTIONS ments with third countries, and so on. seem to think. The article 50 “divorce” could But the biggest question of all is whether set target dates for the necessary agree- Britain will seek to continue to be part of ments, and specify that, until then, the sta- the single European market. If it does, it tus quo applies. But this itself raises ques- will have to follow the common rules for tions about that status quo, including what that market. If it leaves the single market, happens to budgetary contributions, voting What next? Truth it will face a tariff barrier and regulatory rights, and court jurisdiction over disputes obstacles to its main export market. This is during the interim period. There will be and myths about an unpalatable choice which divides both considerable uncertainty for years to come the government and leave campaigners. until the details of the final arrangements Britain’s institutional Whichever way the government decides are thrashed out. There will in all likelihood to go, there will be leave voters who are be a need for several different agreements, possibilities in the unhappy with the choice. as different fields require different legal It should therefore be no surprise that bases under the EU treaties. Some of those months to come the government is taking time to trigger legal bases require unanimous approval article 50, the procedure to negotiate of any agreement by all the EU member Richard Corbett is a Labour MEP withdrawal from the EU. And it is no states, meaning that Britain’s preferences for Yorkshire and the Humber surprise that some are calling for a second can be blocked by a single country. referendum on the terms of the exit deal. The article 50 agreement should also The article 50 procedure is full of pitfalls. settle the date of departure. A few, on he sheer magnitude of the task ahead Once triggered, it sets the clock ticking: both sides of the debate, want it as soon T is only now beginning to sink in. The after two years, Britain is out, if there is as possible. Others, in the interests of inventory of all the issues that need to be no agreement, a situation which would the departure being reasonably smooth, addressed is growing by the day. And the cause maximum disruption and many argue for as late as 2025. An intermediate government must define its negotiating legal uncertainties. If agreement is reached possibility is 2020, which is the end of the objective on each one of them, as must the within the deadline, it needs approval of current multiannual budget of the EU. Any European Union. date after June 2019 implies Britain will They range from the relatively The inventory of issues that have to elect new MEPs that year, possibly minor, such as whether the bids by various need to be addressed is just for a few months or a couple of years. British cities to be European capital of culture It is unclear whether the article 50 in 2023 can go ahead, to the crucial growing by the day process can be revoked once it is triggered. trading relationship. The treaty is silent on the question. But the Many have serious implications. One a qualified majority of the other member balance of legal opinion is that it can be, example is the European chemicals states. In practice, 21 of the 27 is the figure provided it is before the two-year deadline. agency, which tests and authorises all new to bear in mind. It also needs the consent It must also be a genuine request, and not chemicals for sale in the European market. of a majority in the European Parliament, a device to re-set the two-year countdown. Leaving the EU would normally mean we with British MEPs participating in the vote. Similarly, if an article 50 agreement are no longer part of it. Should we then set If no agreement is reached by the deadline, reached in 2019 sets a date of, say, 2022, up a new UK chemicals agency, recruiting the two year period can be extended only for departure, can the UK change its mind the necessary expertise at great expense? by unanimous agreement of all member between those two dates? There is greater Or, do we not bother, and follow the states, a factor that also leaves the UK with legal uncertainty here, but politically it is European expertise without being a part a significant negotiating disadvantage. likely that a change of mind about leaving of it? Or, do we seek to negotiate a special There is also room for argument about would be accepted, whereas change of mind membership or associate membership of what is covered by the article 50 withdrawal simply on the terms or timetable would not. it as part of our exit deal? Will other EU agreement. Article 50 refers to “setting out This is important in the event of a re- countries be willing to accept that? Cur- the arrangements for its withdrawal, taking think by the UK. Any referendum on the rently, EEA countries (Iceland, Norway account of the framework for its future re- outcome of the Brexit deal, and any deci- and Liechtenstein) are the only non-EU lationship with the Union.” In other words, sion to remain, should take place before members of it, and they have no vote on it does not itself settle the future relation- the date of Britain formally leaving the its board. ship. But “taking account” of it implies EU. Afterwards, any desire to remain in Similar questions abound in different some measure of agreement as to what that the EU would have to be pursued through fields: Europol, EU research programmes, will be: An EEA type participation in the an application to join afresh, under en- shared projects in overseas develop- single market? Continued participation in tirely different procedures and facing the ment, the European environment agency, other aspects of the EU? A complete break? standard expectations of any new member the (London based) European medicines Agreeing in principle to a particular state, including, in principle, acceptance of agency, continued participation in the type of relationship will still leave much to the euro. Any accession treaty, of course, European arrest warrant, the EU “open be settled afterwards. Negotiations will be requires the unanimous consent of every skies” system for aviation, and its arrange- sequenced, not parallel, as some in Britain member state. F

26 / Fabian Policy Report Red lines for Brexit negotiations with the UK Jo Leinen is a German SPD MEP

he narrow decision by British vot- T ers to go for Brexit adds yet another complicated task to the EU’s already busy agenda. For now, the ball is in the UK’s court and it is up to the new British gov- ernment to trigger the procedure for the withdrawal of a member state from the union under Article 50. Nevertheless the other 27 states need to use this time to develop a strategy for the negotiations on their future relationship with the UK. Given the UK’s economic and geo- © Siddie Nam political importance, as well as the close interdependence between the UK and the With this background, it’s even more Thirdly, whoever is part of the common “EU 27”, it is in the mutual interest of both of a puzzle why any member state would market has to respect the rules of the com- sides to carry out the negotiations in good give up such an advantageous position. In mon market. The UK’s participation in the faith and with the aim of ensuring close any case, not least to avoid the UK serving common market would therefore mean and lasting cooperation in as many policy as an example for other member states, that it had to abide by the rules governing areas as possible. From the EU’s as well as any agreement on the future relationship it, including workers’ and social rights, from a progressive perspective, however, between the EU and the UK must fall con- as well as consumer protection rules and some red lines can and must be drawn. siderably short of the status the UK enjoys environmental standards. The EU’s com- First, the exit from the European family within the union. petition law would also continue to apply must not be rewarded. The UK enjoys a very Secondly, the four freedoms – the free to companies based in the UK, and the UK special status within the European Union. movement of workers, goods, services and would have to follow European state aid Over the four decades of its membership, capital – are inseparable. If the UK wants to rules. The common European market exists the country has secured numerous opt- take part in the common market for goods, as a level playing field for all of the com- outs and derogations, while maintaining panies active in it – irrespective of where full involvement in the decision-making The exit from they are based – and exemptions from the process. The UK does not have to take part the European family above-mentioned rules would give UK in Schengen, nor in the EMU (Economic companies an unacceptable advantage over and Monetary Union). In the area of justice must not be rewarded their continental European competitors. and home affairs, the UK was not only Finally, there can be no special involve- granted a complete opt-out, but also the services and capital – which might prove ment of the UK in EU decision-making possibility to opt into single measures on essential for the City’s financial industry procedures. Out means out. While the a case-by-case basis, truly just picking the – it must in the same vein accept the free interests of the UK should be duly con- cherries it likes. On top of that, due to the movement of workers. We cannot make sidered in any EU decision affecting it, EU British rebate of 1984, the country saved any concessions in this regard, particularly institutions must be able to decide freely more than 100bn euros in national contri- as progressives. The common market is not and without interference or even the pos- butions. The now void “new settlement for an aim in itself, but should serve citizens by sibility of a veto from a non-member state. the United Kingdom within the European building more prosperous economies. That Whatever status the UK aims for, Union” contained additional perks, includ- citizens must be able to move freely to the it is highly unlikely if not impossible ing the possibility to limit in-work benefits places where their workforce is needed is that it will be more beneficial than its for EU migrants. furthermore an economic necessity. current position. F

27 / Facing the Unknown compare middle-income countries, such as much as 3 per cent of Czech GDP is be- as the Czech Republic, with high-income ing repatriated due to our uneven position ones, wages can be as much as four times within the internal market. lower in the former than the latter. We Such a degree of income outflow mainly tend to talk about the United States as an shows that wages are too low, which ena- example of a highly unequal country, yet bles investment to bear excessive earnings. Lessons for central the EU is significantly more unequal if we While our government is doing its best to take it as one region. We cannot ensure a increase wages by repeatedly increasing Europe: We need functional internal market and a currency minimum wages as well as increasing union in the long run with such a degree wages in the state sector, we have to find more unity and of inequality. And unless this inequality common European tools to restart general decreases, people will continue to move, wage convergence in order not to com- less inequality en masse, to richer countries, and they promise the internal market even further. will continue to be seen as bringing their It is in the interest of all member states to Tomas Prouza is a member of the low wages with them. Popular discontent work out mechanisms so that the internal Czech Social Democratic Party and will grow, bringing more extremism and market can work for the benefit of all its the Czech Republic’s State Secretary demagogic populism. At the same time, regions and create the widely desired level poorer countries will continue to suffer for European Affairs ‘brain drain’ and will be further distanced We tend to talk about from their richer counterparts from the the United States as an perspective of economic convergence and example of a highly unequal fter Britain’s exit from the Euro- sustainable development. A pean Union, the challenge is now to The internal market did a tremendous country, yet the EU is create a more cohesive Europe. The EU job in bringing convergence during the first significantly more unequal must protect its citizens, and foster an decade of this century. Since then, however, internal market that works for the benefit the central and eastern European countries if we take it as one region of all its regions. have hit a ceiling in their structural devel- In the British referendum, formerly opment, stuck with activities with too low playing field. I am convinced that wage industrialised regions of the United King- added value, and too low wages, to catch convergence is the right way forward and dom tended to vote in favour of leave. up with the EU average. For them, it will be would solve many European problems. Indeed, many British citizens seemingly difficult, if not impossible, to catch up with Many citizens observe similar dynam- had the impression that the European the older member states. ics within their countries and many were Union was acting as a catalyst for globali- Around 6 per cent of Czech GDP is doing so before the British referendum. sation and industrial restructuring. This being repatriated every year as dividends Perpetually allowing inequality to persist restructuring has brought with it higher from the Czech Republic to investors. It is or even increase is simply not a viable economic output, but has also exacerbated true that the Czech Republic is one of the long-term option for European economic inequality and compromised regional most foreign direct investment-intensive development. If we continue in this direc- cohesion within some member states. Eu- economies, but if the investment yields tion, centres will get richer and the periph- rope should now focus on creating real and were the same as in older member states, ery will get poorer. Indeed, this is not just a tangible assurances that together, through the outflow would be only around 3 per message for central Europe. It is a message our knowledge, wealth, institutional cent of GDP. This means it is possible that for the EU as a whole. F capacity and innovative approaches, we can moderate the costs of globalisation, yet reap most of its benefits. We have to under- stand that the European social model, high regional cohesion and wage convergence, are a prerequisite for strong growth and competitiveness, not an enemy. We tend to congratulate European countries on their relatively low levels of inequality and high social cohesion. However, this applies only if we look at the level of individual member states. Wages in the poorest states of the US are two to three times lower than in the richest. In the EU, the discrepancy is much more severe, with wages in the poorest states ten times lower than the richest. Even when you © Byron Lippincott

28 / Fabian Policy Report European progressives must understand what Britain told them, and find a new way forward Ania Skrzypek is senior research fellow at the Foundation for European Progressive Studies

uropean progressives had been reluc- Etant to consider Britain’s exit from the EU as a possible scenario. Consequently, on the morning after the Brexit vote, Euro- pean social democrats had no pre-prepared strategy to offer. © Thomas Hawk This has created an awkward situa- principles of solidarity, prosperity, democ- feeling among many progressives that the tion. After a plea from the Labour party, racy and peace. We now need to listen to UK has always been a difficult partner. European sister parties had refrained from the concerns raised by British citizens, and Because of that feeling, some are calling taking an active part in the referendum develop a modern and progressive agenda for article 50 to be filed as soon as pos- campaign. But they cannot afford to re- for Europe. sible. But there are also many who ask for main silent any longer. Although the vote What makes the task particularly dif- caution. Southern progressive parties fear took place in the UK, the debate on the EU ficult is that a divided movement will need that triggering article 50 may cause the has spilled over into the other 27 member to come together to make some difficult weakening of euro and hence harm their states. It has focused political attention on decisions. How do we respond to the hos- recovery, while eastern European countries the question of the future of the union. EU tility that has entered the public discourse fear the implications for freedom of move- citizens pondering the British struggle and about Europe? Unanswered frustrations ment and the effect on Polish, Romanian then the outcome of the vote do expect and fears about Europe have created a and other workers already living in the UK. to know what comes next, and progres- fertile ground for the radicalisation of at- Rapprochement among all those parties sives must come together to clarify their titudes. This is fueling populist and radical is therefore essential, if the UK and the standpoint. This is vital, especially given parties across Europe. It all makes the Labour party are to be able to count on the that what happens in the EU will frame vision of former Norwegian prime minister European progressives in the negotiations. electoral battlegrounds in Germany and Jens Stoltenberg – that the answer to Not only is the future of Britain at stake, France in the year to come. radical violence can only be found in more but the future of the EU as well. It has been Our progressive discussion must focus democracy – feel some way out of reach. called weak, unable to deal with the finan- on the strategy of the negotiations, as well It is distressing to observe the leader- cial crisis of 2008 and its aftermath. It has as finding answers to the concerns brought ship battle within the Labour party, which been seen as feeble in solving the refugee to the fore in the UK’s leave vote – concerns exposes further divisions. It is unfortunate situation, and it has been ineffective at which are shared by many citizens across that this contest is now absorbing the at- taming the authoritarian regimes growing Europe. The referendum debate essentially tention of the left, which otherwise could at its heart in Hungary and Poland. But came down to four issues: immigration, be used to shape what comes after Brexit. another way is possible – if progressive the economic crisis, the rule of law, and A positive commitment to European voices steer the conversation and become, terrorism and peace. It is a sign of the EU’s cooperation would be a welcome signal once again, the protagonists of peaceful, struggle that these are all linked to its core from the left in the UK. There is a bitter prosperous coexistence across Europe. F

29 / Facing the Unknown www.feps-europe.eu www.fabians.org.uk

Published with the financial support of the European Parliament