Fabian Review www.fabians.org.uk Winter 2009/10

How to get the election year right: the next majority, the state, the debate, the Tories, the Labour case, the manifesto

PLUS Mary Riddell interviews Alistair Darling

Julian Le Grand defends one of Labour’s greatest achievements

The quarterly magazine of the Fabian Society Volume 121 no 4 £4.95

REVIEW OF THE WINTER Image: Adrian Teal But what about the ‘80s, Dave? Progressive posing isn’t enough; Cameron needs to criticise Thatcher to be credible on poverty

It is only twenty years since John Moore, sharpest hike in poverty in any western Yet the left needs more than a critique the little remembered Conservative democracy in the last half century. of the right. Defending universalism and Secretary of State for Social Security, Was this case of ‘don’t mention the arguing for redistribution are necessary. declared the Thatcher Government’s ‘80s’ because poverty doubled from 12 But they are not enough if this is not to belief that it had abolished poverty in per cent to 25 per cent from 1977 to 1992, be as good as it gets on poverty for a Britain. That the right says it now accepts precisely as the Government sought generation. not just that poverty exists but agrees to roll back the state and roll forward The new Fabian study presents with the left that inequality matters society? To be fair, David Cameron’s important challenges to poverty should be cause for celebration. analysis of why poverty and inequality campaigners on the left and in civic society But this will not be more than political rocketed under Thatcher might differ too. If we are to understand how and why mood music, while the real work of cuts from ours – but we don’t know because welfare was turned from a badge of our goes on elsewhere, if it does not lead to a he hasn’t been able to give some account equal citizenship to a pejorative term, the serious and evidence-based debate about of what it is. If Cameron cannot show fear that reciprocity has been lost should poverty and inequality. Our major new what he learnt from that history, the fear be taken seriously. The answer is certainly book The Solidarity Society, drawing must be that he will be condemned to not more ‘welfare crackdowns’. But a new on a two-year Fabian study, supported repeat it. welfare deal, which is more generous by the Webb Memorial Trust, therefore The evidence is clear that to those currently trapped in poverty challenges all of the major parties to redistribution matters. Simply asserting while requiring contributions to socially ensure their anti-poverty strategies learn the opposite ignores the wealth of valuable activity, is an idea which anti- from the evidence of what works and comparative data, painstakingly poverty campaigners should embrace to what doesn’t. compiled in recent years by a major make deeper progress possible. A rather more impressionistic sketch project at the University of North However much may have changed was offered in David Cameron’s Hugo Carolina. Far from causing poverty, this about our society, important lessons Young memorial lecture at The Guardian. demonstrates government spending has endure from Beveridge’s plan that This sought to correct, or contradict, his been the major determinant in reducing everybody put something in and party conference declaration that big poverty and inequality. There are was protected from the worst risks government was the cause of every social dangers too in the renewed popularity, in life. That idea was too powerful ill. The Conservative leader dutifully given fiscal pressures, of the apparently to be trumped by claims that an age began to analyse poverty trends across ‘common sense’ idea of targetting help of austerity made a fairer society the century, before an astonishing Rip on the poorest: history shows this creates unaffordable. That spirit must again Van Winkle moment saw him fall a ‘them and us’ dynamic which sees inspire new campaigns for our times. asleep in 1968 and wake up after 1997 support for the poor withering away without finding a word to say about the over time. SK

Winter 2009/10 Fabian Review 1 THE WINTER IN REVIEW email your views to: [email protected]

December sees prevention strategy, built on a vision Director Tim Horton had taken on the publication of the generous welfare state that Newsnight’s Politics Pen to propose of The Solidarity would enshrine equal citizenship and reversing this year’s planned increase Society. This is foster a sense of mutual independence. of the inheritance allowance. It seems the final report The Independent said: “the the idea is catching on: The Observer of the two-year future the report paints, of a return recently reported “Alistair Darling is Fabian Society to ’Victorian levels‘ of inequality considering freezing the threshold at and Webb and sharp social stratification by which the tax becomes payable, as Memorial Trust area, housing and employment, is a part of plans to cut the deficit.” This research project warning that deserves to be taken would not only be good news for the Fighting poverty and inequality in seriously. And whatever the merits deficit and for those that find the idea an age of affluence, commemorating of the case, this contribution from the of extending an unearned windfall the centenary of Beatrice Webb’s left means that, at long last, something to an already well-off minority 1909 Minority Report to the Royal like an argument can now be had.” distasteful, but will throw into even Commission on the Poor Law. sharper sharp relief the increasing Current anti-poverty measures albatross that is the Tory pledge to have gone as far as they can go, argues In the last issue of the Fabian Review cut inheritance tax for millionaires, the report, setting out a new poverty we reported that Fabian Research recession or no recession.

Fabian events and news are now reported at our blog, Next Left. Join the debate at www.nextleft.org and here are some recent highlights. We are also now on Twitter @ thefabians

Wednesday 29th September 2009 Saturday 7th November 2009 Darling says no to high pay commission David Miliband’s lessons from Obama “I’m worried about the bonus culture... but it is worth reminding Talking at the Fabians’ recent ‘The Global Change We banks and ourselves it isn’t a case of having a go at banks,” Need’ conference, Foreign Secretary David Miliband said Chancellor Alistair Darling at the Fabian Society’s recalled watching Obama’s Chicago speech on television Economics Question Time at Labour Party Conference. from Belgrade and why he remained optimistic about the transformational agenda of the administration. He added: “It is in their interest as much as it is in all of our interests that the system is cleaned up” and argued that it’s One audience member asked him what personal lessons about getting a “properly regulated, properly supervised” he had taken from Obama’s campaign and his personal system so that a global credit crisis wasn’t set off again. style. Miliband said he felt that the biggest lesson of both the campaign and the year since was that movement Finance select committee chair John McFall said: “We campaigning had to extend beyond election day: “‘You need good corporate governance... The lack of corporate campaign in poetry, but you govern in prose’, as Mario governance means that people have got away with murder.” Cuomo said. But the biggest lesson is that you have got to CBI director-general Richard Lambert argued that the financial campaign in government as well as in opposition, or in the sector should put ethics at the centre of it’s actions. “If business is campaign, that you do not get sucked into governmentalitis. not going to exercise the judgement that needs to be taken, then There are enormous pressures for that - but you have got to they will be regulated. You need a conversation about ethics.” ensure that you are a persuader in power.”

But Darling said that the Government was not considering a Posted by Sunder Katwala high pay commission: “It would be extraordinarily difficult for a government to operate something like that.”

Posted by Rachael Jolley

2 Fabian Review Winter 2009/10 Fabian Review INSIDE Fabian Review is the quarterly journal of the Fabian Society [email protected] The politics of 2010 4  Editor The route to the next majority 5 Tom Hampson Will Straw Assistant Editor Ed Wallis The state of things to come 7 Fabian Review, like all publications of Jonathan Rutherford the Fabian Society, represents not the collective view of the Society, but only We need to talk 9 the views of the individual writers. The Denis MacShane responsibility of the Society is limited to approving its publications as worthy Don’t wait for the big idea 10 of consideration within the Labour James Crabtree movement. Tory tactics for 2010 Printed by 12 The Colourhouse Stella Creasy London SE14 6EB Do the manifesto differently 13 Designed by SoapBox Communications Sunder Katwala ISSN 1356 1812 Fabian Society The Fabian Interview 14 11 Dartmouth Street The calm amid the storm London SW1H 9BN Telephone 020 7227 4900 Mary Riddell Fax 020 7976 7153 [email protected] www.fabians.org.uk The Fabian Essay 18 General Secretary A national treasure Sunder Katwala Julian Le Grand Research Research Director Tim Horton Books Research Fellow The carrycot under the desk 21 James Gregory Fatima Hassan Publications Editorial Director Tom Hampson The Fabian Society Editorial Manager Ed Wallis Noticeboard 22 Events Listings 23 Events Director Jemima Olchawski Events Manager Richard Lane Events Manager Fatima Hassan QUESTIONS WE’RE ASKING Events Manager Genna Stawski Communications Head of Communications Rachael Jolley Fabian office Finance Manager Phil Mutero Local Societies Officer Deborah Stoate Membership Officer Giles Wright Interns ELECTORAL MAP THE ARGUMENT THE CHANCELLOR SAVING FOR THE Katherine Street How has society Where will What’s next for the FUTURE Ollie Haydon-Mulligan changed since renewal come economy? Why should we Philip Edward Reynolds 1997? from? protect the Child Laura Bradley Trust Fund? Matthew Murray p5 p10 p14 p18 Maddy Powers Lawrence Mak Fabian Women’s Network Seema Malhotra [email protected]

Winter 2009/10 Fabian Review 3 Navigating the politics of 2010

An existential crisis is not a good look for a political party in an election year. Time after time it is the party Ed Wallis that doesn’t appear to is Editorial Manager at the Fabian Society have its act together that is punished at the polls. On one level, Labour’s position and messaging are clear: a list of tangible achievements over the past 12 years in power; decisive action taken to save the economy in the wake of the financial crisis; and a core belief that fairness can’t be left to the whims of the market but requires the support of a strong state. Recent weeks have seen a resurgence in spirit in the Labour camp. But the politics of 2010 still look incredibly tough for Labour, and both before and after the election we shouldn’t shy away from asking the deeper questions about the reality of the political landscape and what Labour wants power for. Resist calls for a pre-election blackout on debate: the current state of the electoral maths is, in part, because we haven’t done enough of the ‘what does it all mean’ thing whilst in government. So the challenges that are considered in this Fabian Review are ones that will be with us for years to come; and, in a make- or-break political year, the way we go about them now will inform not only the next election, but the longer term inquest into where next for the left.

4 Fabian Review Winter 2009/10 The politics of 2010

election. But this time, we must not wait for opposition before asking ourselves how we can build a winning coalition. It would be wrong to stick blindly to the Middle Britain strategy without, first, an honest appraisal of what worked and what did not, and second, considering what has changed in the near two decades since Radice set out his thesis. That task will require new research and honest analysis. Protagonists argue that the Middle Britain strategy was an overwhelming electoral success, heralding an unprecedented period of Labour governance which has delivered a list of achievements so long it took Gordon Brown minutes to read through them at this year’s Labour Party Conference. But another interpretation shows that Labour’s 13.5 million votes in 1997 was lower than the 14 million that John Major achieved in 1992 and, because of low turnouts, fell to 10.7 million in 2001 and to 9.6 million in 2005 (fewer even than the Tories recorded in 1997). There is scant academic evidence that the focus on ‘Mondeo Man’ worked in Labour has never been here before: electoral terms. Research by Dr Malcolm 12 years into office and contesting an Brynin at the University of Essex found The route election for another four or five. that “neither of the main parties can Some believe the party is heading woo supporters from the opposing main towards defeat. When this has happened party in sufficient numbers to make a to the next in the past, there has often been a difference.” From an annual survey of protracted period of internal division 5,500 British households, Brynin found and outward confusion. that of those who said they supported majority It took three election defeats and the Conservatives in 1991, only 9 per nine years of opposition in the 1950s cent supported Labour by 1999. But as before the circumstances were right for many as 24 per cent said in 1999 that they social researcher Mark Abrams to carry supported no party. Labour needs new research out his survey-based investigation – And in The Rise of New Labour, to make sure it isn’t stuck published as Must Labour Lose? – which academics Anthony Heath, Roger Jowell argued that old class-consciousness was and John Curtice show that many of fighting the battles of the past disappearing and the party could only New Labour’s key assumptions “were at win if it contended with rising affluence. best half-truths.” In the words of Dr Joe It then took even longer (13 years Moran, “They show that the success of and four defeats) under Thatcher and the Tories in the 1980s and new Labour Major for Giles Radice to write Southern in the 1990s had more to do with class Discomfort, which used qualitative de-alignment (the establishment of a Will Straw research to highlight Labour’s weakness broad base of support across classes) is Founding Editor in the south. Radice’s Fabian pamphlet, than class realignment (the winning over of Left Foot Forward coupled with the role of pollster and of a particular type, such as ‘Woking (leftfootforward.org) focus group ’guru’ Philip Gould, paved man’ or ‘Worcester woman’).” the way for the ‘Middle Britain’ strategy Putting these findings together that dominated Labour’s thinking in suggests that the targeting of ‘mosaic’ 1997, 2001 and 2005, with its focus on the groups was not the key to success that aspiring middle classes. many thought it was. On the other There is nothing inevitable in politics, hand, there was clearly merit in seeking and that includes the result of the next broad support. By bringing together

Winter 2009/10 Fabian Review 5 The politics of 2010 ideas from the left and right, this is what Building a new movement will not Third, values have changed. The the 1997 manifesto sought to achieve. be easy. But the task will be harder still decision by David Cameron to embrace Ed Owen, who worked for the party if the party doesn’t think hard about environmentalism and liberal social through Blair’s three victories, says, what has changed since 1992. While attitudes, and his professed desire “reaching out to as wide a constituency the mixed record suggests it would be to tackle relative income inequality as possible was absolutely right and wrong to continue without questioning are victories for progressives. But we absolutely successful.” the Middle Britain strategy, it would be should press home the advantage But did this pluralistic approach equally foolish to hark back to a romantic in what appears to many to be a break down once in office? Neal notion of class-consciousness. Changing progressive moment. A recent survey Lawson, chair of Compass, certainly demography, geography, values, and conducted by YouGov for the TUC thinks so: “We governed – despite the political reality should all have a bearing found that 53 per cent of all people, strength of the economy, the weakness on Labour’s next strategy. and 62 per cent of those with earnings of the opposition, and our massive in the middle quintile, believed that majority – like young people who gate- responsibility for solving economic crashed a party and hung around in the There is nothing inevitable and social problems lies mainly with kitchen waiting to be chucked out.” In in politics, and that the Government rather than ordinary doing so, Blair defined himself against people. Meanwhile 73 per cent of the elements of the party’s base (the “forces includes the result of the same group (compared to 68 per cent of conservatism”) and leant too far overall) believe that ordinary working towards the Daily Mail, the CBI, and the next election. But this people do not get their fair share of the City as he sought to ‘triangulate’ and time, we must not wait for nation’s wealth. outflank the Conservatives. Finally, we need to contend with Jessica Asato, acting director of opposition before asking seismic shifts in the political landscape. Progress, says, “There is some truth in Devolution has opened up new the criticism that in order to win we ourselves how we can flanks which Labour must defend. skewed too much of our policy directly build a winning coalition. The expenses scandal has shattered to their [Middle Britain’s] interests.” the power of incumbency while third But she adds, “On the other hand, parties’ representation has doubled those who say we can ignore Middle First, although more subtle than the since 1992. A hung parliament is a Englanders would end up with a party decline of the manual working classes statistically more likely outcome of that wouldn’t govern in the interests in the last quarter of the twentieth our electoral system than ever before of all the people. These people are the century, there have been profound shifts and therefore meaningful electoral backbone of Britain and we should look since Labour was last out of power. reform to a more proportional system to persuade them in a more progressive Society is older, better educated, more may be fairly close. If that took direction rather than kowtowing to culturally diverse, and more likely to be place the calculus would shift once them on the one hand or ignoring them working in professional or managerial again with alliances and successful on the other.” jobs. We know little about what this coalitions rewarded as they were for The most damning critique of the means though. Take participation in the first eight years of devolved rule Middle Britain strategy is that it created higher education: “There has been a in Scotland. Again more thought is no organisation able to support its aim three to four-fold increase in university needed to understand these dynamics and, instead, haemorrhaged support. graduates since the 1980s,” Professor but PR could strengthen those pushing According to Owen, “we haven’t been Geoffrey Evans, an expert in the Labour in a progressive direction. able to remobilise people and that’s sociology of politics at Nuffield College, These apparent changes suggest partly down to spreading ourselves so told me. “Graduates tend to be more Labour’s values are shared by a majority thinly.” Lawson is more critical: “the liberal and that gives more of a basis for in the country, but that we need a problem with defining yourself against tolerant attitudes … But what we don’t new approach to bring that coalition the party is that we stopped being a know is the degree of heterogeneity together. Putting time and energy Labour movement.” But although within this increasingly large category. into understanding these shifts is the membership is now a sixth of the 1950s We need more research there.” challenge of the next year. level, the decline is common across Second, over the years, de- Aneurin Bevan complained of parties in most democracies. Indeed Blair urbanisation has meant that Labour’s Abrams’ work that “this sort of thing initially bucked the trend as membership heartland constituencies in the north will take all the poetry out of politics”. increased from 266,000 in 1994 to 405,000 have become smaller, giving the party It needn’t. New Labour’s great mistake in 1998. As Nick Anstead and I argued a bias under Britain’s first-past-the-post was being too cynical about society in the Fabian book The Change We system. This probably won’t survive and too fearful of upsetting right wing Need earlier this year, to reverse this a Conservative Government, though, newspapers like the Mail. The next requires a completely fresh definition of who plan a 10 per cent cull in the Labour strategy must understand the membership and engagement to bring number of MPs, many from over- country it seeks to govern, but remain the party into the 21st century. represented Scotland. clear about its roots and its values.

6 Fabian Review Winter 2009/10 The politics of 2010 The state of things to come

Once again the state has emerged as the key political dividing line between Labour and the Tories. Jonathan Rutherford says the left needs a radical vision for new times.

Jonathan Rutherford The economy will dominate the General the ideology and political confidence is Professor of Cultural Election, but controversy will centre to confront the vested interests that Studies at Middlesex on the role of the state. What do we sustain this anachronism. The impact University and editor want the state to do and how shall we of New Labour’s reforms on human of Soundings journal (www.soundings.org. pay for it? The question will define the rights law, freedom of information, and uk). His latest book is political fault-line between Labour and devolution has been as much inadvertent After Identity (2007). the Conservatives. as planned. Since coming to power, it The Tories have come out of has avoided democratic reform of the Conference season trying to paint centre and focused ‘downstream’ on the Labour as the party of the modernisation of public services and on unreconstructed ‘big state’. This is a rebuilding infrastructure after the long politically powerful charge, with years of Conservative neglect. a feeling amongst the electorate that But New Labour’s market state Britain has become over centralised. has not been the people’s friend. However both parties are trapped in the Marketisation and the privatisation of discredited ideologies of the neo-liberal services do not enhance democracy nor decades, and neither are able to provide people’s capacity to live self-determined credible answers for the future. For lives. They replace paternalism with Labour to have any hope of recovery new kinds of impersonal, technocratic in the next year it needs to accept its and discursive forms of authority. New historic mistakes and articulate a new Labour modernisation has been a cause and compelling vision for the state. of the low synergy between individuals British social democracy has been and public institutions and this has wedded to the state, but the state has been reproduced in the political sphere, never belonged to social democracy. The intensifying the widespread popular levers of power have been consistently disaffection from political parties and kept out of reach: an upper class club land the formal institutions of representative has given way to a technocratic elite, and democracy. Labour’s failure to redefine bureaucracy has been partially replaced the use of government power has by outsourcing and the indirect rule infected the whole political system and of arms-length regulatory bodies, but allowed anti-state sentiment to become a the British state remains undemocratic, resonant political calling card – one that highly centralised, imperial, and in service the Conservatives hope to exploit at the to financial capital. Labour has lacked next election.

Winter 2009/10 Fabian Review 7 The politics of 2010

The financial crisis should herald a employment, as well as new emerging progressive moment for the centre-left. markets and changing needs around But it is floundering in the ideological an ageing society, well-being and vacuum left in the wake of New Labour. health, social care and education. On It has neither the alliances across civil current trends this social economy will society, nor the collective political become the biggest sector by value agency to secure a new radical electoral and employment. We will need to agenda. It has no story that defines what develop novel ways linking the formal it stands for. The ideology of liberal and informal economy in ways that market capitalism might have lost its protect the latter from the downsides credibility, but it remains the only story of monopoly profit-seeking. The state of economic life on offer. needs reconstituting so that it is capable Renewal of the centre left must of interacting with the complexity begin with a new political economy. and values of social and community Britain is now the only major economy organisations, and devolving real still in recession. It has to make the power and decision making to workers transition from casino capitalism to a and users.1 balanced, low carbon, more equitable Making public services more form of economic development. The mutual and democratic can avoid transition demands an economics whose the problems of the market and principles are ecologically sustainable bureaucracy, and create new social wealth creation, durability, recycling, spaces for innovation and social cultural inventiveness, equality, and development. Achieving a balance human flourishing. between freedom and security, It is possible to make this shift and efficiency and conviviality, for both be politically viable, especially at a time workers and users will be immensely of such social and economic insecurity. difficult, but essential. One radical We need to develop a democratised, idea that should be considered is to redistributive, social activist state underpin this social economy with a capable of regulating markets and citizen’s income – an unconditional, asserting the public interest in the wider non-withdrawable income payable to economy, but which is also decentralised each individual as a right of citizenship and responsive to individual citizens (www.citizensincome.org). To meet and small businesses. It will be an Minimum Income Standards it will be intra-national state, negotiating need to be worth £10,000 per annum, elements of its sovereignty in global paid for through income tax. To make alliances and institutions, contributing this more politically acceptable, an to internationally agreed goals – we interim partial Citizen’s Income of must commit to the political battle for £4600 – the same as children’s Citizen’s a social Europe. A social democratic Income – could be introduced. state requires the introduction of A Citizen’s Income challenges proportional representation in national big cultural prejudices around the elections, and a new system of party puritan work ethic, the deserving funding to remove the influence of and undeserving poor, and the ‘hard- rich individuals and interests. We need working families’ ethos. But we are now an elected House of Lords and the in the end game of an old paradigm, and revival of local government tax raising the birth of the new will require some powers in order to deepen and extend radical thinking. The period of austerity democracy through society. we are entering will involve a shift from In the decade ahead, the a culture of private consumption to the effervescent quality of wealth creation consumption of public goods. It will will demand secure social foundations. mean wealth and resource redistribution Business must be made accountable to and a state capable of fostering new employees through forms of workplace kinds of democratic, convivial publics. participative democracy. The advocacy That will be the political challenge that roles of civil society organisations, in will define politics for years to come. particular the trade unions, need to be strengthened. The welfare system will 1 Robin Murray, Danger and opportunity Crisis have to support flexible and fragmented and the new social economy, NESTA, 2009

8 Fabian Review Winter 2009/10 The politics of 2010 We need to talk Denis MacShane MP More open debate is politically essential – before is a member of the Fabian executive. and after the election says Denis MacShane

Where are the Tory ideas? And where is become Government thinking. A for-and-against speeches and then vote a Labour’s debate? few years ago I proposed in a budget proposition up or down. Even the most loyal of Tory amendment a financial transaction During 2010 – both before and after columnists are worried at the absence tax. It was rubbished by the Labour the election – Labour needs to start of thinking on the Tory side. The once- Treasury team. Now Gordon Brown debating ideas again. Which is the best legendary Conservative Research promotes it with evangelical fervour. He way of reducing inequality ­– creating Department – home to Enoch Powell, has even persuaded President Sarkozy more businesses to employ people or Chris Patten and John Redwood who that this Anglo-Saxon idea to control taxing the better earners in the middle were all original thinkers whatever excessive global financial behaviour is class? Is the minimum wage the one thinks of their politics – is barely worth backing. Labour, thanks to the endgame in delivering social justice or alive. Phillip Blond, who invokes energetic pushing of Alan Johnson and must more be done to help workers? early English nativist (and often anti- les frères Miliband, are also edging close Will all-women or all-BME lists for Semitic) communitarians like Hilaire to electoral reform. parliamentary candidate selection Belloc and GK Chesterton, is the finally remove as MPs those who do Cameron’s beau du jour. But despite not have a university qualification the catchy ‘Red Tory’ label there is Labour has allowed and is this desirable? Has the balance no applicable system of governance debate to be replaced against secular Enlightenment rights emerging from Blond’s vapourings. swung too far in favour of religious Iain Duncan Smith is more serious by the pulpit; the sermon ideologues dictating what women and wrong, as some of his proposals wear or who controls reproduction and in the reports he is producing are read out at the Labour sexuality? What do we do about the fact often substantial. Other once-serious Party Conference and the that more British soldiers have died in Tory think tanks like Policy Exchange President Obama’s war in Afghanistan have been captured by obsessive terror that competing ideas than in the Bush-Blair war in Iraq. All Europhobes, wasting time defending the squillions spent by DfID have seen Tory allies on the right of the right in should be tested and voted an increase in inequalities and poverty Eastern Europe. upon has vitiated Labour in the world, so do we need to rethink Cameron, as Steve Richards of The the categories of UK global policy? Independent has pointed out, is not heir Would an independent Scotland be to Blair but rather a William Hague But to test these and other ideas a disaster and does Labour need an with hair, which gets blacker and we need to debate them. Columns in English policy? If some immigrants more bouffant at each Prime Minister’s The Guardian are not a debate. Labour reject with contempt British values, is Questions. Dave is not even close to has allowed debate to be replaced by it racist to discuss this? What would a the sophistication of the Blair-Brown- the pulpit; the sermon read out at the coalition between Labour and the Lib Mandelson invention of New Labour Labour Party Conference and the terror Dems look like and how would it work and there is no sign of the One Nation that competing ideas should be tested given our adversarial parliamentary Toryism that allowed the Conservatives and voted upon has vitiated Labour. political culture? to hold power for more than a decade Policy ideas are to be welcomed. But These are questions for debate; and after 1951, let alone the British version they are worthless if they are presented I offer no views until invited to open or of neo-liberalism that kept Labour in as stand-alone pet projects not subject oppose a motion on any of them. But opposition between 1979 and 1997. to the dialectic of debate. Instead of what was heresy months ago becomes But if Cameron’s millionaire shadow happening inside political parties, the orthodoxy today. So it should. Labour cabinet is ideas-light why cannot most popular mass meetings in Britain must never find itself as after 1931 saying Labour gain traction? Is it because we are organised by a debating forum called ‘No one told us we could do that.’ have lost the art of debate? Different Intelligence Squared, where grown Between now and the election the outfits, from Compass to Progress, or ups bored rigid by the sterile shouting debate of ideas with a clear ‘for’ and a the eternally young Fabians stake out matches and point scoring of Question clear ‘against’ has to re-enter Labour positions. Papers are produced. Some Time and Newsnight pay money to hear praxis.

Winter 2009/10 Fabian Review 9 The politics of 2010

I’ve ploughed through enough Renewal sweeping as Red Toryism on the left Don’t wait essays and sat through enough Fabian are slim. conferences to know exactly what is Having pre-emptively assigned that coming. Labour is going to lose the next to the bin, what should we do instead? for the big election, and immediately following the To dust off an over-used analogy, defeat there will arrive a small tsunami Labour should follow a strategy more of events and articles calling for root and like Isaiah Berlin’s fox, and less like his branch ideological surgery. The r-word hedgehog. Berlin split the world into idea will be deployed with glee. We must be two philosophical camps. Some theorists genuinely radical, they’ll say – as if there were like hedgehogs, in that they had is anyone out there who really just wants one big idea about how the world Anyone expecting a new a little slice of a fairer society. works. Think Plato, Kant, or Rousseau. Underlying this will be a tempting Others were more like a fox, in that they grand theory for the left but ineffective archetype of political wanted to consider many different ideas. will be disappointed – renewal. Labour, unlike its pragmatic Aristotle, or most liberal thinkers, are in Tory opponents, goes oddly weak- the second camp, along with foxy old instead we need energy kneed over an ideological overhaul. This Berlin himself. and resources for many approach, which one might dub ‘waiting around for another Crosland to turn up’, new approaches, says undergirds much of the time we all spent Moments of James Crabtree talking about reinvented progressivism, comprehensive renewal and the sorry cul-de-sac of the Third Way. It is a model of politics genuflecting don’t come along that to Thatcherism: if you don’t have a major ideological break, with some Hayek in often. You can’t rely on your handbag, something isn’t right. them happening. Just James Crabtree And post-election, man alive, Labour is an editor at is going to want some firm Thatcher- calling for them won’t Prospect magazine, esque renewal badly enough to do itself and tweets at a mischief. make them appear. Indeed @jamescrabtree The move from old Labour to new, hoping that an individual and in the US the shift to the ‘New Democrats’ in the late-1980s, were both sage will eventually bring broadly in keeping with such a change. Both movements combined a rejection a new synthesis is almost of the ideas, institutions and political certainly a mug’s game divisions of the past. Both were wrapped up in the veneer of eventual electoral success. And don’t get me wrong: Stretching the analogy, Labour such pushes for Big Renewal can be a thinks it wants a hedgehog renewal: splendid thing, if they come off. That one big brilliant re-imagination of social James Purnell quit the Government to democracy for the 21st century. But try and pull off something a little bit much wiser to go for a foxy renewal, in like this with his big thinking Open Left which we try to build many different, project at Demos is an admirable thing – competing, sometimes contradictory and more power to him. strands of rethinking, and hope that But moments of comprehensive good things come from it. As social renewal don’t come along that often. theorists Michael Hardt and Antonio You can’t rely on them happening. Just Negri might put it, here, we want the calling for them won’t make them appear. multitude. Indeed hoping that an individual sage At the risk of delving yet further into will eventually bring a new synthesis is the predictable, Labour has much here almost certainly a mug’s game. Phillip to learn from the Democrats. The first Blond has just about managed it for the and most important lesson, however, Tories, but he is a sui generis figure way is perhaps the least obvious: we should outside the mainstream of his party. ignore Barack Obama himself. Hoping The chances of an intellectual renewal for a British Obama to turn up is even so brilliantly bold, imaginative and less likely than wishing for some kind

10 Fabian Review Winter 2009/10 The politics of 2010

other end, what about Will Straw’s new Left Foot Forward blog? Again, one member of staff, and a budget of a lot less than £100,000 – already a daily must-read, and doing damage to the Tories. Here one might also add the Fabian Society’s own Next Left blog – likely run on a budget of almost literally zero pounds, and a useful source of ideas and debate. So a foxish approach to progressive renewal would realise that what we really need is another dozen – no, actually, make it two dozen – new institutions. At least one new serious big league think tank, to go alongside IPPR. A leadership academy for young activists and thinkers. A group Sipa Press/Rex Features to develop a post-crunch progressive political economy, and another to think through trade and globalisation. of super-charged Geoff Mulgan-on- some of them decided they could do the A media monitoring organisation, like steroids to dream up an entirely new same. Stein teamed up with some astute Media Matters, to keep tabs on the right vision of social democracy. operatives, like Simon Rosenberg at the wing press and blogosphere. And a Instead we should look more at think tank NDN – and, eventually there bottom-up version of Policy Network, the period of democratic renewal that followed a feverish process of institution to link up thinkers around the world occurred roughly between 2004 and building. Groups like the Center for (rather than wining and dining just 2006. As New York Times journalist Matt American Progress, Media Matters, their presidents). Bai details in his book The Argument, Center for Progressive Leadership, and What else? A handful more decent after John Kerry’s defeat some high level a host of others (along with money for wonky group blogs, like Left Foot Democrats decided something needed existing progressive groups) were the Forward, but on strategically important to be done. And as I was told the story result. And when Barack Obama arrived, areas of policy like climate change, when I worked in DC back in 2006, the this new progressive architecture was Asia or devolving power. A web process of renewal came down to one ready to go. He fired the weapons with development outfit to help progressives man called Rob Stein, and a PowerPoint skill, but Hillary Clinton could have tool up for the new era. An organising slide deck. done nearly as well. institute to help the Labour party itself Stein’s slides detailed how the Obviously, Labour doesn’t have change its structures and approach. Republicans, between about 1970 and a billion dollars. But a concerted An intellectual strategy group to do 1994, had invested many hundreds of programme of institution building socio-demographic analysis. And some millions of dollars – a lot of money, need not cost much. The Cameroon intelligent single issue campaigning but not that much money – to renew renewal has bequeathed a rich array groups, on the same model as Health their political infrastructure. The result of largely inexpensive new institutions: Care for America Now in the US, which had been a slew of new think tanks, Policy Exchange, the Centre for Social just helped to plan Obama’s health care leadership development groups, Justice, ConservativeHome, and bill. And so on. NGOs, help for candidates, and so on. even Phillip Blond’s newly launched The left needs good ideas, and Stein touted his presentation around Respublica. And on the progressive side perhaps just as importantly, good people. elite progressive politicians and rich too, Compass took over the left of the It’s not an original thought, but Labour liberal donors, and explained how the left with one full time member of staff faces an ideological context changed conservatives really had created a ‘vast and a minimal budget. That they have utterly since 2005, let alone 1997. That right wing conspiracy’ – it was just a achieved so much with so little is an the checklist of issues is familiar, from rather humdrum conspiracy housed entirely repeatable political miracle. China to carbon and back again, makes in the plush offices of the Heritage Elsewhere there are other examples. it no less pressing. And the best way to Foundation and Focus on the Family. Geoff Mulgan’s Young Foundation isn’t prepare isn’t to expect one big theory The millionaires were receptive. “So strictly party political, but he still built to reinvent the centre left. Instead, why what you are telling me” they seemed it into the biggest thinking institution not swarm it? If progressives ditch the to say to Stein “is that the Republicans in the UK in under five years. (They radical talk and really put their backs bought the American Government for now have about 60 staff.) Look also at into it, there is a fighting chance the left an investment of not much more than a the close to miraculous reinvention of can have Lord Cameron back in Notting billion dollars?” And, having heard this, Demos under Richard Reeves. At the Hill, by 2015.

Winter 2009/10 Fabian Review 11 The politics of 2010

these inequalities. We are passionate development from the actions of the about the benefits to all of investment Government itself. To shrink one would Tory in everyone achieving their potential. fundamentally alter the condition of the We put people and possibility first, not other and vice versa. Today’s state isn’t profits and privilege. separate to community, citizens or the tactics for These principles also drive our market but a framework within which practical agenda, giving purpose and each combines. priority to the nitty-gritty of service Remove the support collective delivery in office. We should acknowledge provision and regulation offers and 2010 Tory talk of progressiveness as a little guarantees community groups reflection of our success in government. or market forces could respond Whether belatedly accepting the effectively, let alone do so in a way that Whether to savage the minimum wage or championing advances rather than damages social international development, their progress. Depending on civil society Tories as barely-reconstructed Damascene conversion speaks to how to become a surrogate for the state Thatcherites, or take seriously Labour has changed the terms of debate is as callous as leaving communities on the priorities for contemporary British at the mercy of the market – or their their ‘progressive’ claims is politics. failures. There is nothing progressive a key strategic dilemma for Yet today’s Tories still try to apply about leaving the pursuit of social yesterday’s solutions. As they try to justice to chance. Labour. Stella Creasy argues reconcile interest in social mobility or In contrast, we understand the Labour needs to show what community cohesion with the deification benefits to be gained from working of the free market, they revert to type. with the voluntary sector and the progressive really means. This manifests itself in a mantra that market within a progressive state. In whatever the issue, the ‘state’ gets in the partnership with a thriving public way of progress through clumsy and sector it is a mix that can create a expensive bureaucracy. society where opportunity is easier to For today’s Tories, to be realise for all. Those who gain from progressive is to ‘roll back the state’ going to co-operative run schools also Stella Creasy so the voluntary sector and the market prosper from living in a country that is Labour’s candidate for Walthamstow at can take charge, supposedly able to invests in early years education and the next election respond to needs in a way that state- youth services. based services cannot. Promoting civil Instead of waiting for the market society may appear progressive, but to act, our progressive principles Today’s Tories wear their progressive as a replacement for the state it is challenge us to be pro-active across credentials on their sleeves. Gone are the spectacularly socially retrogressive. public, private and social spheres for the days in which Thatcher said there was We know this not least from the common good. And as we look to the no such thing as society. Now David history of progressive movements and future, we apply this to addressing the Cameron emotes about child poverty, reforming Conservative Governments. inequalities created by the challenges Nick Hurd professes love for the Whether the Butler education reforms of globalisation. Whether planning for voluntary sector and Eric Pickles wants or Disraeli’s public sanitation, some of economic stability, addressing climate to be a co-operator. yesterday’s Tories understood public change or stubborn social immobility Those of us on the left should provision was an effective mechanism we know we can achieve more together resist the temptation to dismiss these for social progress. Co-operatives than we do alone. statements as merely soothing noises were born out of absence, not as an In the face of Tory attempts to directed at voters concerned they are alternative. The original pioneers espouse progressive interests, we the nasty party. Instead we must show didn’t work together to act against must stand firm as to the importance how the issue may be progressive, the state, but because there was so of pursuing progressive outcomes. but their intent is not. In setting out little to protect communities from That George Osborne can claim to be what progressive administration offers the cataclysmic impact of nineteenth progressive because he cares about Britain‘s future, we need to show how century industrialisation. poverty highlights how we far we have and why only Labour has the politics In modern Britain where the to go to win the debate about what a and the policies to make this a reality. society and state are interwoven, the concern for inequality means in practice. Progressive political movements seek consequences of such an approach Simply stating that something is to advance social justice; recognising would be to cripple progressive progressive doesn’t make it so. It is not that whilst talent is evenly distributed action by both areas. Not only does enough for us merely to tell the Tories across society, the opportunity to get today’s voluntary sector receive much this; Labour must do more to show how the most out of it is not. The outcomes of its funding from public sources, and why we are the real progressive progressives chase are those that rectify its very nature is a response and choice for Britain.

12 Fabian Review Winter 2009/10 The politics of 2010

What sort of election manifesto should This risks turning the manifesto Labour publish to make its argument for into a box-ticking exercise, not a tool Do the a further term in government? of public-facing political advocacy: On one level that is a question about the issues of every ministerial team the policy agenda which the party puts and government department, the manifesto forward. The next few weeks will see concerns of every policy stakeholder one final round of debate about policy and progressive pressure group ideas, from party activists keen to see acknowledged, yet with the overall differently bright, bold and popular ideas to push argument buried deep within. on the doorstep and myriad civic society Very few people will remember groups pressing their issues and causes. much of the content half an hour after It is, in reality, rather late for major shifts looking at it, including those about to Labour is running a in political and policy direction, though go out and knock on doors to persuade different kind of election the financial and political crises of 2008 others of the case. left more in flux for longer during this An excessive focus on policy can campaign this time, argues electoral cycle. crowd out values too. Campaigning is Sunder Katwala – that But it is also a question about how about contrasts; The Choice for Britain Labour pitches its core argument to ends with twelve things Labour would requires a different type of the voters. The theme of its last two do which the Tories would not. These manifesto campaigns was, in effect, ‘much done are presented as policy differences, but but more to do’. each (implicitly) speaks to a contrast “Large chunks of our 2001 and 2005 of political priorities and values too. manifestos were more or less word-for-word Unfortunately, the reader - whether identical”, one Labour Minister tells me. an activist ready to campaign, or a It is easy to understand why. Language voter themselves - has to derive those has been carefully crafted around which principles for themselves. the party can coalesce. The statistics on By all means, let’s publish before Sunder Katwala progress made were updated, and the the campaign begins an audit of the is General Secretary next steps of the policy agenda set out. Government’s record, the lessons of the Fabian Society This had the virtues of being contentful learnt in power, and the detailed future and serious, though it suggested too agenda across the range of policy. that a party aware that it must govern in But that isn’t the manifesto we need. prose felt it might be prudent to leave the That should be a work of political poetry out of its campaigning too. advocacy, not just a policy report. Why The 2010 manifesto is shaping up not publish the necessary detail similarly. Labour effectively published, alongside it? without much fanfare, a draft manifesto What we need at the core of the in embryonic form in its ‘The Choice manifesto is an argument: what does for Britain’ document on the last day Labour think is right and wrong about of the party conference. It suggests the condition of Britain in 2010; and another manifesto similarly conceived about why the values of fairness are of as a report of work-in-progress from a important. reforming government. The manifesto should contain more This is strange. Labour is clear that politics, and less policy, and remember it is the ‘underdog’ in this election: that five statistics are almost always that it needs to run the insurgent less effective than one. It should not campaign of a party challenging need translating into non-wonk speak for power, seeking to disrupt the to be advocated on the doorstep. assumption that David Cameron Of course, clarity about Labour’s has won. Taking that idea seriously future vision and how the policy should make the dynamic of the 2010 choices – from tax and spend, to care campaign very different from that of and green jobs – signpost those values 2005 and 2001. That should include are more important than the form the doing the manifesto differently too. argument takes. We risk publishing an enormously But we should ensure that the policy-rich manifesto, including every manifesto doesn’t get bogged down statistic you would need if ‘the Labour in the details. Make it memorable for government since 1997’ was your those taking the message out to others. specialist subject on Mastermind. And keep it short.

Winter 2009/10 Fabian Review 13 THE FABIAN INTERVIEW: ALISTAIR DARLING The calm amid the storm

Alistair Darling has come through the economic crisis with his political stature enhanced – but with constant economic aftershocks, colleagues after his job and the toughest election in a generation, things aren’t getting any easier for the Chancellor, reports Mary Riddell. Rex features

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“Of course you’ve got to get on The episode, which appalled with colleagues and work collegiately. opponents, served him as a reminder I don’t have any problem with a of the stakes. “The authorities colleague who wants to do this or across the world were doing similar that. I think just at this time, though, operations because that’s what was Mary Riddell every one of us needs to have our necessary to keep the banks going. is a columnist for the Daily Telegraph shoulders to the same wheel. We have Anyone who doubts that should look a job of work to do.” It is vital “that at what happened to Northern Rock, every single one of us is pointing when it was much more difficult for Number 11 Downing Street is a no-frills in the same direction. I think that is the Bank of England to do things place. Next to the shabby sitting room happening now,” he says, in what on a more confidential, covert basis. where I am to meet Alistair Darling is might be a final warning shot across It didn’t help one bit that people a Fifties-style kitchenette, in which an the bows of Mr Balls. knew Northern Rock was getting aide to the Chancellor offers instant assistance. They went round and got coffee and forages in the fridge for milk. His limpet-like adherence their money out.” We squint at the label on the bottle and He was, he says, “living on the discover that the contents are, in theory, to his own job recently edge for a while. There were many too ancient for consumption. days when I knew that unless the This tableau suggests either frugal won him the Spectator’s Bank was making interventions like husbandry of public money or a ’Survivor of the Year’ that, then literally banks would have government past its best-before date. had to shut their doors and cash Naturally, Mr Darling would discard award – an accolade machines would have been switched the latter metaphor. The election off. People should be in no doubt that looms, and he is “ready for the fight. that he accepted with the world banking system was on the This election, coming on the back of customary modesty, brink of collapse in October 2008.” such traumatic economic events, will It was, he concedes, a lonely and define the shape of the country for the explaining that his last frustrating time. “I suppose it’s partly next five or ten years. my Hebridean background. You just “The decisions made by the next such honour came when, have to think no one’s going to help government will be absolutely critical. as Transport Secretary, he you, you’re on your own, and you I’m not going to stand back and hand have to try and make the right calls. It it over to people who, in my view, are was twice named ’Most was [irksome] to have people sniping going to take us back 20 years. There’s at the edges, saying: ‘You should have everything to play for. Anyone who Boring Politician’ by done this or that’ when I couldn’t says the election is decided is talking Truckers’ Weekly disclose what I was doing. I couldn’t utter nonsense.” have said: ‘By the way, the banks While many might question such are about to collapse, but I’m doing bravado, Mr Darling knows a bit Despite the hour (not long after something about it,’ because the very about survivalism. His limpet-like dawn) and the rigours of the job (he act of saying that would have been adherence to his own job recently routinely works all weekend), Mr disastrous. You just have to put up won him the Spectator’s ’Survivor of Darling is a calming presence. Rising with it.” the Year’ award – an accolade that he smoothly through Cabinet, he seemed I had not expected such a sense accepted with customary modesty, untouched either by failure or great of isolation, especially since Gordon explaining that his last such honour success until he became Chancellor. Brown has sometimes seemed only came when, as Transport Secretary, At first branded a dullard, he was later too eager to alleviate his Chancellor’s he was twice named ’Most Boring called a doom-monger for predicting, aloneness by doing the job for him. Politician’ by Truckers’ Weekly. restrainedly as it transpired, that Their close relationship – which did “An obscure sect in the transport Britain faced the worst economic crisis not deter the Prime Minister from world,” he says now, but he does not in 60 years. trying to eject his old friend – is sound displeased. The survivor gong Although his handling of the one of the most singular in politics. acknowledged his refusal to be ousted meltdown has earned him much When I suggest that familiarity has from the Treasury; an episode about respect, most days provide some made Mr Darling under-awed by the which he is also sanguine. When I new aftershock. We meet soon after legendary wrath of Mr Brown, he say it’s no secret that Ed Balls came the revelation of emergency Bank offers a wry smile. close to supplanting him, he says: “If of England loans of £61.6 billion “As you say, we’ve known each you’re going to be the Chancellor, to HBOS and the Royal Bank of other a long time. But even if I’d only you need broad shoulders whatever Scotland, made with the Chancellor’s known the PM for ten minutes...there is happening. You stand your ground knowledge and kept secret for are times when, if you think something when you need to. 14 months. should be done, you need to make your

Winter 2009/10 Fabian Review 15 THE FABIAN INTERVIEW

same point.” And what’s his current Darling may indeed be the fulcrum of growth forecast for 2010. Still 1.25? victory or defeat. “It will be up to all “Yes, that’s the midpoint. We forecast of us,” he says. “I get my retaliation between 1 and 1.5 per cent. But you’re in first.” While few Chancellors going to have to wait.” have been as tested by fire, he wears We are talking ahead of the Pre- the trauma of the last year with an Budget Report, on which Mr Darling equanimity that may be rooted in his lips must be sealed, but there is little non-political background. hint of harmony with Mr Brown, who The eldest of four children, he recently put himself at variance with comes from a middle-class Edinburgh his Chancellor by predicting 1.5 per family of hybrid party allegiance. cent growth next year in an interview His political interests at Aberdeen with the Daily Telegraph. University, where he studied law, On the tone of the PBR, Mr focused on fixing rates for student Darling says: “The best thing you canteen food rather than Marxist could look at is the consensus at the theory. Years on, he can ultimately time of the Budget, where [everyone] take or leave his chosen profession. argument. There can’t be a relationship said I was wildly optimistic. Look When I ask whether he plans to between PM and Chancellor where at where they are today. Most are stay in politics for the long term, he there aren’t healthy tensions. [Or] just a wee bit more optimistic than says: “I’ve always thought that if you sometimes unhealthy tensions...” me...I’ve been very clear that you live a life of 100 per cent politics, you Presumably he means rows? “If don’t just bounce back and behave as are missing out on a huge amount. everybody agreed with one another, if nothing has happened. Your normal friends and neighbours something would be very wrong. “It will take time...I said it [the have normal lives and go out with Of course you have disagreements economic crisis] was going to be their families. You’ve got to have that from time to time. On differences more profound and long-lasting than hinterland. of opinion, living in the same place people thought, and I’ve seen nothing “I wasn’t a professional politician. helps. I bumped into him just now – since to indicate [otherwise]. The tone I was elected when I was 34, and an unscheduled meeting if you like. is going to be very cautious. We’re not I think anyone who says they’re You can talk to someone much more out of it yet. Unemployment will rise going to be a politican until they’re 65 easily like that.” into next year.” or 75 is being pretty presumptuous. No doubt many corridor conclaves This gloomy prognosis is bad Secondly, I don’t think it does anyone are devoted to a major alleged tension enough, I suggest, without the any harm to contemplate that there is between Nos 10 and 11 – Mr Brown’s intervention of Mervyn King, the a perfectly good life outside politics.” eagerness to talk up growth and Mr governor of the Bank of England, How does he keep a toehold on Darling’s focus on reducing the highest warning Mr Darling that his cuts aren’t the real world? “This is the worst national debt since records began. stringent enough and that the UK time to ask me. When I’m not here, “I’ve been saying two things since risks losing its Triple A credit rating. I’m in the Treasury. Margaret [his the Budget: that we need to support “Well, [he] said he didn’t think there wife] and I did get out to Gandhi’s the economy and, when recovery is was any risk of that. But the governor [his favourite Indian restaurant] last established, we need to live within is independent.... No one disputes week.” Even his reading list suggests our means, getting borrowing down that as recovery is established we’ve an ambivalence. When I ask what he to an acceptable level.” got to get our borrowing down.” wants for Christmas, he says: “What He is scathing of the Tory shift Do the two of them get on? I really like is a good book that isn’t away from talking up austerity. “We get on perfectly well,” he says, about politics. I’ve been reading The “It wasn’t working as well as they adding, slightly wearily: “I’ve seen Girl With The Dragon Tattoo by Stig thought, so they flipped to being in the governor more times than either of Larsson.” Though eager to receive favour of growth, except that they us intended. We met in 2007, and I’ve the rest of the detective trilogy, Mr haven’t any means of delivering probably seen him every week since.” Darling is also looking forward it.” Maybe so, but Labour has also I ask if he has any role models (though not perhaps so avidly) to flipped, abandoning Mr Brown’s among past Chancellors, but sets little Skidelsky on Keynes. omerta on cuts. Mr Darling claims store by precedent. “A Chancellor Will he ever go back to the law? he has always been for focused tax is defined by events. A hell of a “Oh, I don’t know. Would you go rises, pointing to the squeezes he has lot depends on your judgment at to a doctor who hasn’t practised for placed on the rich. particular times. You’re not the club 22 years? I enjoyed the law.” Then, “I think the emphasis on growth treasurer. It’s a highly political job, as if aware that this sounds rather is absolutely right,” he adds loyally. you’re a pivotal part of government.” wistful, he adds briskly: “All of us are “Gordon and I may say [things] With the economy “central” to concentrated on the election. That’s slightly differently, but it comes to the who wins or loses the election, Mr the most important.”

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On whether he will stand down of government, you dare not mention afterwards, he says: “No, far from it. the word, but in any civilized society I’ve said I’m ready for the fight. There’s you have to have the right balance. everything to play for. No election is Yes, we’ve got a long way to go, but decided at this stage.” George Osborne, we’ve made big changes. People of snapping at his heels, recently accused lower income are getting a far better him of being “obstructive” on green start than they would otherwise. issues. Does he mind? That’s something Labour should be very proud of. They should make no apologies for it.” “A Chancellor is defined This may signal further measures against the rich. Certainly, it reflects by events. A hell of a Mr Darling’s contempt for his rival’s lot depends on your policies. Might Mr Osborne, though young and inexperienced, not make a judgment at particular good Chancellor? “My criticism of George Osborne times. You’re not the is not his age. That’s got nothing to club treasurer. It’s a do with it. It’s just that he consistently gets things wrong. That’s fine when highly political job, you’re in opposition. It’s a calamity when you’re in government.” Mr you’re a pivotal part of Darling’s visceral dislike of the Tories, government” and especially Mr Osborne, is striking in so mild a man. That animus is, I suspect, a driving force in his politics. “Osborne playing at politics has Maybe the impulse to crush the Tories never bothered me one way or the also made him cling on so fiercely other. If he spent rather less time doing when his job was under threat. that and rather more time solving Combativeness is, however, quite bigger issues, he might do himself a different from personal ambition. It favour,” he says, fairly pointing out is easy to guess why Gordon and his own emphasis on green recovery. Alistair, for all their rows, have “Look at his [Osborne’s] green ISAs, never replicated the poisoned pact for instance,” he grumbles. “They’ve linking Tony and Gordon. The PM, admitted they’ve got no money for it. his Chancellor says, is “first among It really is a sham.” equals.” Besides, he does not want Mr Darling avoids, possibly to his job. a fault, the “focus group politics” When I ask if he would like to he deplores in the Tories. Asked if become leader, he looks at me as he would mourn Trident, he repeats if he can think of no more grisly Gordon Brown’s offer of reducing four fate. “Me? No, not remotely.” That submarines to three. He does seem, won’t encourage his admirers. “But however, to sound the death knell for it’s relatively easy to understand ID cards. “Most of the expenditure is the answer, I hope,” he says dryly. on biometric passports which you and Almost no senior politicians rule I are going to require shortly to get themselves out of the leadership and into the US. Do we need to go further mean it. Alistair Darling, clinging than that? Well, probably not.” to his shrinking hinterland, is the On a Tobin tax on financial exception to the rule. transactions, a Brown favourite, he says: “It could be made to work.., but you’d have to have international agreement.” On Labour’s core purpose, he is bolder. When I ask if he sees Labour as a party of reditribution, he says: “There’s been far more redistribution than people realise. In the first two or three years

Winter 2009/10 Fabian Review 17 THE FABIAN ESSAY A national treasure: Defending the Child Trust Fund from the Tories

With all politicians looking for things they can cut, Julian Le Grand says Labour must fight to preserve the Child Trust Fund.

18 Fabian Review Winter 2009/10 FABIAN ESSAY

‘Income only maintains consumption, but assets change Julian Le Grand the way people think and interact in the world. With assets, is the Richard Titmuss people begin to think in the long term and pursue long- Professor of Social Policy at the London term goals. In other words, while incomes feed people’s School of Economics stomachs, assets change their minds.’5 and an ex-No 10 In practice, of course, as we all know, asset ownership adviser is very unequal. In the UK, 50 per cent of marketable wealth is held by the top 10 per cent of the population and 7 per cent by the bottom 50 per cent.6 And this One of the greatest achievements of the current Labour inequality is particularly acute among the young.7 This Government has been the setting up of the Child Trust is not surprising for, in the absence of their own savings, Fund. That young people should set out on their adult lives the young have only two sources of capital: family gifts or not only with appropriate education and training but also inheritance (which are very unequal in their distribution), with an endowment of assets or capital was an imaginative and the capital market (which is not usually accessible to idea – championed in Britain originally by the Fabians the young in general and to the children of less well off and by the Institute of Public Policy Research.1 Since the families in particular). Government set up the Fund in 2003, the idea has been translated into a successful, popular programme with the The ownership of capital gives potential to transform the lives of its beneficiaries. But the Fund is now under threat. The Conservatives people psychological and economic have described it as a ‘luxury’ and have proposed limiting it to the poorest sections of the population. The Liberal independence; it encourages them to Democrats have suggested abolishing it and putting the invest, to save and to think about the money into education instead. This seems like a good time to remind ourselves of the initial rationale for the scheme, future more widely and to publicise more widely its successes. In the UK we invest heavily in youth, but almost entirely through education and training. Though obviously very Arguments such as these led to the introduction of the important, this neglects a key area of potential investment: Child Trust Fund. This is an account set up in the name of capital or asset-holding. There is evidence that the having each child born since September 2002, with the Government even a relatively small amount of cash in the bank at the putting in £250 for every child, and an additional £250 for beginning of adulthood can make a considerable difference the children of poor families. The Fund may be invested to the young adult’s subsequent life chances. For instance, in saving accounts or in shares in packages offered by capital or asset holding at the age of 23 has strong links selected financial institutions. The parents can choose with time spent in full time employment between 22-33 for which type of account they want and which financial men and women, earnings at age 33 for men, and the health institution will provide it. To protect children from loss of men and women at 33, even when other conditioning through investment delay, the Government opens an factors such as income, family background and education account on behalf of children whose parents do not find are controlled for.2 Preliminary findings from a recent the time to open an account themselves within a year. study found a positive wage premium associated with Parents and others can save into the Fund; and the income asset-ownership, again after other relevant factors are from the fund is tax–free. The Government adds an extra controlled for.3 There is also evidence from the United sum to the Fund when the child is seven years old. The States that individuals and families who own capital tend money stays in the Fund until the child is 18, when it can to have better health, more marital stability, higher levels of be used by the young adult at will. self-employment, lower levels of domestic violence, lower The Child Trust Fund has proved to be both successful mortality rates, better educational outcomes for children, and popular. Research by the Children’s Mutual has and higher savings when those children become adults. found that more than 4.6 million children already have Again this remains true even when family background, open, active accounts, with approximately 70,000 being past income and education levels are taken into account.4 opened each month. 75 per cent of children are having The precise mechanism of causality has not been fully their account opened voluntarily by their parents before researched, but there are several plausible explanations for the permitted year is up, an engagement rate far superior these relationships. The ownership of capital gives people to other financial products such as occupational pensions. psychological and economic independence; it encourages Savings rates with leading providers have trebled and two them to invest, to save and to think about the future more million parents are saving for their children each month.8 widely; it enables them better to weather the vicissitudes The monthly amounts being saved for children are up of life such as unemployment or the onset of acute illness from £15 to £24, a huge 60 per cent increase. that lead to unexpected income loss; and it puts them less All this includes low income families, 30 per cent of at the mercy of others’ decisions. More generally, as the US whom add monthly to their child’s Child Trust Fund. In academic Michael Sherraden has put it: fact, 97 per cent of the Child Trust Fund’s Government

Winter 2009/10 Fabian Review 19 FABIAN ESSAY investment goes to families with household income below relevance to the current economic crisis. Most economists £50,000.9 Moreover, a recent study found that parents in would agree that this has been brought about in large part poor families are enthusiastic about the policy, preferring by excessive levels of debt, by instability in the markets, it to spending extra public money on education or income and by irresponsible, ill-informed borrowing and lending support. They also welcomed its universality, and the behaviour. Arguably, the Child Trust Fund addresses all of fact that they could not touch it. The last feature of the these. It encourages savings behaviour, thus reducing debt. scheme was particularly important since it removed the The savings are sizeable and long-term, thus encouraging temptation to raid their children’s savings and encouraged market stability. And it promotes financial literacy among both other members of the family, such as grandparents, to save its young recipients and their parents, thereby reducing the for the children.10 likelihood of irresponsible and ill-informed behaviour. Already the Fund has resulted in more than £2bn The policy’s merits have been recognised by other being invested in children’s futures, with the equivalent of countries as diverse as Hungary, Canada, Singapore, South £2.4bn entering the economy in 2020 and yearly thereafter. Korea and the United States, all of which have adopted or It is acting as a catalyst for new financial education are considering adopting similar schemes. An EU–wide initiatives in schools. And more than 100 British companies version – a ‘Bambini bond’ - has even been proposed.11 For are involved in supporting parents by giving access to Britain, the Child Trust Fund is a national treasure – both Child Trust Funds. literally and metaphorically. It must not be allowed to die Politicians take note: the public are very much engaged in its country of origin. with, and very supportive of, the policy, as the following results from questions in a recent Children’s Mutual Endnotes study show: 1 J. Le Grand and D. Nissan A Capital Idea: Start-up Grants for Young People London: Fabian Society (2000). G.Kelly and R. Lissauer. To what extent do you agree with the statement ‘The Ownership for All? London: Institute for Public Policy Research Child Trust Fund has encouraged me to start saving for (2000). my child’s future?’ 2 J. Bynner and S.Despotidou Effects of Assets on Life Chances. Of those who expressed an opinion 86 per cent of ABC1 London: Institute of Education: Centre for Longitudinal Studies and 94 per cent of C2DE agreed or strongly agreed with (2001). See also J. Bynner and W.Paxton The Asset Effect London: the statement. Institute of Public Policy Research (2001). 3 A. McKnight and C. Z. Namarzi ‘Evidence of an asset effect? To what extent do you agree with the statement ‘The Estimating the impact of financial savings and investment on Government should scrap the Child Trust Fund and use future wages’ London School of Economics: Centre for Analysis the money to pay for smaller primary school class sizes?’ of Social Exclusion Discussion Paper (forthcoming) Of those who expressed an opinion 74 per cent of ABC1 4 G. Kelly and R.Lissauer (2000) Ownership for All London: Institute and 100 per cent of C2DE respondents disagreed or of Public Policy Research (2000). strongly disagreed with the statement 5 M.Sherradan Assets and the Poor New York: M.E.Sharpe (1991) 6 http://www.statistics.gov.uk/cci/nugget.asp?id=2 To what extent do you agree with the statement ‘Any 7 For data on this for the UK, see J Banks and S Tanner Houshold political party that planned to scrap the Child Trust Fund Savings in the UK London: Institute for Fiscal Studies (1999). would make me less likely to vote for them at the next 8 Statistics from the Tax Incentivised Savings Association whose general election’ members cover approx 70% of the market Of those who expressed an opinion 73 per cent of ABC1 9 Calculated by the Children’s Mutual using Child and Working and 81 per cent of C2DE respondents agreed or strongly Tax Credit data. agreed with the statement 10 R. Prabhakar ‘Attitudes towards the child trust fund: what do parents think?’ British Journal of Politcs and International Relations So there are plenty of reasons why anyone concerned with 9(4) 713-729., 2007 the long-term health of British society and its people, especially 11 J. Le Grand and M. da Graça Carvalho ‘Investing in youth: Bambini the young, should support the development and indeed Bonds’ European Commission Bureau of Economic Advisers Monthly expansion of the Child Trust Fund. But it is also of direct Brief: Special Issues Social Agenda Issue 16, June 16, 2008, 18-22.

20 Fabian Review Winter 2009/10 BOOKS The carrycot under the desk

Shirley Williams fought both personal and political battles to become one of our best loved public figures, writes Fatima Hassan.

With the expenses scandal having Socialism clearly aligned him with one diminished faith in our elected leaders, side of a deeply divided party. In fact very few can say they have won the she shared many of Rodgers’ political admiration of the public, but Shirley views (as later became apparent) but she Williams remains something of a successfully steered clear of controversy Fatima Hassan is Events Manager at national treasure. and kept the Fabians from being tied the Fabian Society She is the daughter of Vera Brittain, but to a particular political grouping of the it was actually her father, George Caitlin, centre-left. a respected political scientist and failed Her time as General Secretary of Labour parliamentary candidate, who the Fabians highlights how often the framed much of her political thinking. In personal and the political clashed in its title alone, Climbing the Bookshelves Williams’ life. Her term required a careful is a tribute to a father who is credited balancing of work with motherhood, with driving Williams’ self-confidence which meant keeping her baby daughter and political awareness – encouraging in a carrycot under her desk in the his young daughter to discover the books Fabians’ Dartmouth Street offices. The within his dusty library and ultimately male-dominated Westminster inner laying the foundation for her future circle often kept Williams at arms length, career in politics. leading to what feels like a deep seated Climbing the She sees common ground here resentment towards them. Williams is Bookshelves: with the other members of that all–too- light on the details of the schisms and the Autobiography exclusive club of women who scaled fallings out that influenced her decision By Shirley Williams the heights of twentieth century British to leave the Labour Party for the SDP in politics: “I came to realise how often the 1981; there is honour in this approach, of Virago achievement of women politicians grew course, but it does leave many questions £20 out of their father’s belief in them… unanswered. Margaret Thatcher, Barbara Castle, Williams does provide some Jennie Lee and I were all examples… personal insight into contemporary of daughters living out their father’s debates, calling for lessons to be learnt aspirations.” A deeply honest admission from the Government’s management of from Williams, whose ambitions the 1956 Suez crisis to the Iraq War observers have more often attributed in 2003; warnings of the internal rifts to her mother’s legacy than her father’s caused by Eurosceptics during her time underachievement. in the Labour Party; and the alienation At Oxford she befriended Bill felt by Cabinet Ministers under a Rodgers, her future ‘Gang of Four’ micro-managed system – which often colleague. Rodgers became General diminished morale and authority. Secretary of the Fabian Society in the Throughout, Williams remains an 1950’s and was followed by Williams acute observer of British politics, offering in 1960. She recounts taking a different words of wisdom to a new generation of approach to the Society to Rodgers politicos who grapple with a new global though: his involvement in the order, and calling on the strength of Gaitskellite Campaign for Democratic hope during the most difficult of times.

Winter 2009/10 Fabian Review 21 FABIAN SOCIETY

These pages are your forum and we’re open to your ideas. Please email Tom Hampson. Editorial Director of the Fabian NOTICEBOARD Society at [email protected]

Membership rates On 14th November the Annual General Meeting of the Society agreed an increase of £2.00 in annual subscriptions to help fund our programme of events and publications. The annual rates are now: Cheque/Standing Order Direct Debit Ordinary £37.00 £35.00 Reduced £19.00 £18.00 Retired members, students, unwaged and unemployed members may pay at the reduced rate. The six-month introductory offer remains at £9.95 (£5.00 for students).

Fabian Fortune Fund North West Regional Conference Winners: David Yorath, £100; Saturday 13 March 2010 J.R. Hartley £100 The Mechanics Institute, Manchester A note from Local Societies Officer, Deborah Stoate Half the income from the Fabian Fortune ‘Progressive Politics – the Choice for 2010’ Fund goes to support our research programme. Keynote speech by Rt Hon Andy Burnham MP Forms available from Giles Wright, [email protected] Details from Graham Whitham at [email protected]

New Year Conference – ‘Causes to fight for’ Saturday 16th January 2010 | Imperial College London

Tickets are priced at £30 (£15 concession ticket) and can be bought through our website at www.fabians.org. If you are not already a member and would like to join, you can take advantage of our special introductory membership offer: £35 (£20 concessions) for a ticket to the Conference plus 6 months membership.

For further details please email Richard Lane at [email protected].

22 Fabian Review Winter 2009/10 FABIAN SOCIETY Listings

A note from Local Societies Officer, Deborah Stoate

I would like to pay tribute to Frank Billett who is retiring from Southampton Local Fabian Society was formed in being secretary of the Southampton Area Local Fabian January 1910 so the Frank Billett Lecture will coincide Society after nearly 40 years in the job. Along with Pat with the centenary of the local society. When it was Haynes, John and June Solomon and Ian Taylor – all long formed, Sidney Webb, George Bernard Shaw and serving Local Fabian Society officers – Frank has been a Edward Pease, one of the founders of the Society, were loyal, dedicated and hard working secretary who will be on the Fabian Executive Committee and there were 46 much missed. Southampton Society have decided to have Local Societies including ones in Toronto, Christchurch an annual Frank Billett Lecture and the inaugural one is N.Z. and Melbourne. to be given in late January by Sunder Katwala.

BIRMINGHAM area. Contact Mandy Griffiths on Enquiries to Mike Walsh on 07980 contact Kay Thornton on All meetings at 7.00 in the Birmingham [email protected] 602122 [email protected] and Midland Institute, Margaret Street, Birmingham. For details CHISWICK and WEST LONDON GLASGOW MIDDLESBOROUGH and information contact Andrew 3 December. AGM followed by Now holding regular meetings. New Society hoping to get Coulson on 0121 414 4966 email Steve Pound MP on ‘The Labour Contact Martin Hutchinson on established. Please contact Andrew [email protected] or Rosa Party’s Election Prospects’. 8.00 in the [email protected] Maloney on 07757 952784 or email Birch on 0121 427 3778 or rosabirch@ Committee Room at Chiswick Town [email protected] for hotmail.co.uk Hall, Heathfield terrace, London W4 4JE. GLOUCESTER details Details from Monty Bogard on Regular meetings at TGWU, 1 Pullman BOURNEMOUTH & DISTRICT 020 8994 1780 or mb014f1362@ Court, Great Western Rd, Gloucester. NEWHAM 8 December. Christmas Party blueyonder.co.uk Details from Roy Ansley on 01452 For details of this and all other 29 January. Jessica Asato, Director of 713094 email roybrendachd@yahoo. meetings Ellie Robinson on Progress on’New Labour’s Legacy and COLCHESTER co.uk [email protected] where the Party Goes Next?’ Details from John Wood on 01206 26 February. Professor Alan 212100 or [email protected] HARROW NORTH EAST WALES Whitehead MP on’Housebuilding – 21 January. Gareth Thomas MP Further details from Joe Wilson on More or Better?’. CORNWALL Details from June Solomon on 01978 352820 All meetings at The Friends Helston area. New Society forming. 0208 428 2623. Fabians from other Meeting House, Wharncliffe Rd, For details contact Maria Tierney at areas where there are no local Fabian NORTHUMBRIA AREA Boscombe, Bournemouth at 7.30. [email protected] Societies are very welcome to join us. For details and booking contact Pat Contact Ian Taylor on 01202 396634 Hobson at [email protected] for details. DARTFORD & GRAVESHAM HAVERING 28 January. Dan Whittle of Unions 21 29 January. Sonia Klein on ‘Similarities NORTHAMPTON AREA BRADFORD Regular meetings at 8.00 in the Ship, and Differences of Political Campaigns New Society forming. If you are New Group forming. If anyone is Green Street Green Rd at 8.00. Details in the USA and UK’. interested in becoming a member of interested in joining, please contact from Deborah Stoate on 0207 227 AGM on Friday 21 February at this new society, please contact Dave Celia Waller on celiawaller@ 4904 email [email protected] Fairkytes. Mike Gapes MP on’Britain, Brede on [email protected] blueyonder.co.uk Europe and the World’ DERBY Details of all meetings from David NORWICH BRIGHTON & HOVE Regular monthly meetings. Details Marshall email david.c.marshall. Anyone interested in helping to re- Regular meetings. Details from Maire from Rosemary Key on 01332 573169 [email protected] tel 01708 441189 form Norwich Fabian Society, please McQueeney on 01273 607910 email contact Andreas Paterson andreas@ [email protected] DONCASTER AND DISTRICT HERTFORDSHIRE headswitch.co.uk New Society forming, for details and Regular meetings. Details from Robin CANTERBURY information contact Kevin Rodgers Cherney at [email protected] PETERBOROUGH New Society forming. Please contact on 07962 019168 email k.t.rodgers@ Meetings at 8.00 at the Ramada Hotel, Ian Leslie on 01227 265570 or 07973 681 gmail.com ISLINGTON Thorpe Meadows, Peterborough. 451 or email [email protected] For details of all meetings contact Details from Brian Keegan on 01733 EAST LOTHIAN Jessica Asato at jessica@jessicaasato. 265769, email brian@briankeegan. CARDIFF AND THE VALE Sarah Boyack MSP, Shadow Minister co.uk demon.co.uk Details of all meetings from Jonathan for the Environment, on ‘Labour Wynne Evans on 02920 594 065 or and Climate Change’. Tuesday, 8 MANCHESTER PORTSMOUTH [email protected] December 2009 at 7.30pm in the Buffet Details from Graham Whitham Regular monthly meetings, details Room, the Town House, Haddington. on 079176 44435 email from June Clarkson on 02392 874293 CENTRAL LONDON Details of all meetings from Noel [email protected] email [email protected] Regular meetings at 7.30 in the Cole Foy on 01620 824386 email noel. and a blog at http://gtrmancfabians. Room, 11 Dartmouth Street, London [email protected] blogspot.com READING & DISTRICT SW1A 9BN. Details from Ian Leslie 2 December. Dan Norris MP and Cllr on 01227 265570 or 07973 681451 FINCHLEY MARCHES Peter Ruhemann on’How Safe are our 10 December. Andrew Dismore MP New Society formed in Vulnerable Children?’. 7.30 at the Friends CHESHIRE on’Human Rights in the UK’. 6.30 in the Shrewsbury area. Details on Meeting House, 6 Church St, Reading. New Society forming in Northwich Grimond Room, Portcullis House www.MarchesFabians.org.uk or 10 February’Paying to Change the Planet’

Winter 2009/10 Fabian Review 23 FABIAN SOCIETY

24 March’Question Time for Local PPCs’ For details of venues and all TYNEMOUTH Alan Townsend, 62A Low Both meetings at 7.30 at RISC meetings, contact Andrew Pope on Monthly supper meetings, details Willington, Crook, Durham DL15 For details of all meetings, contact 07801 284758 from Brian Flood on 0191 258 3949 OBG, tel, 01388 746479 email alan. Tony Skuse on 0118 978 5829 email [email protected] [email protected] SOUTH TYNESIDE WATERSHED 14 December, 19.15 at the Westoe Pub, A new Local Society in the Rugby WEST WALES SHEFFIELD Westoe Rd, South Shields. area, details from Mike Howkins Regular meetings at Swansea Guildhall, Regular meetings on the 4th For information about this Society email [email protected] or J David details from Roger Warren Evans on Thursday of the month, 7.30 at the please contact Paul Freeman on Morgan on 07789 485621 email [email protected] Quaker Meeting Room, 10 St James 0191 5367 633 or at freemanpsmb@ [email protected] Street, Sheffield S1. Details and blueyonder.co.uk All meetings at 7.30 at the Indian WEST YORKSHIRE information from Rob Murray on Centre, Edward Street Rugby CV21 Details from Jo Coles on Jocoles@ 0114 2558341or Tony Ellingham SUFFOLK 2EZ. For further information contact yahoo.com on 0114 274 5814 email tony. For details of all meetings, contact David Morgan on 01788 553277 email [email protected] Peter Coghill on 01986 873203 [email protected] WIMBLEDON New Society forming. Please contact SOUTH EAST LONDON SURREY WEST DURHAM Andy Ray on 07944 545161or For details of all future meetings, Regular meetings at Guildford The West Durham Fabian Society [email protected] if you please visit our website at http:// Cathedral Education Centre. Details welcomes new members from all are interested. mysite.wanadoo-members.co.uk/ from Maureen Swage on 01252 areas of the North East not served selfs/. Regular meetings; contact 733481 or maureen.swage@ by other Fabian Societies. It has a WIRRAL Duncan Bowie on 020 8693 2709 or btinternet.com regular programme of speakers from If anyone is interested in helping to email [email protected] the public, community and voluntary form a new Local Society in the Wirral TONBRIDGE and TUNBRIDGE WELLS sectors. It meets normally on the last area, please contact Alan Milne at SOUTHAMPTON AREA All meetings at 8.00 at 71a St Johns Rd. Saturday of alternate months at the [email protected] or 27 January. Inaugural Frank Billet Details from John Champneys on Joiners Arms, Hunwick between 12.15 0151 632 6283 Lecture. Sunder Katwala, General 01892 523429 and 2.00pm – light lunch £2.00 Secretary of the Fabian Society. Contact the Secretary Cllr Professor

Fabian Quiz

In the current financial crisis Keynes has been taken out of his cupboard, dusted down, consulted, cited, invoked and appealed to about why events have taken the course they have and how a rescue operation can be effected. In Keynes: The Return of the Master, Robert Skidelsky looks at why we have gone back so emphatically to the ideas of an economist who died fifty years ago.

PENGUIN HAS GIVEN US five copies to give away – to win ONE, answer the following question:

Keynes’ most famous book is ‘The General Theory of Employment, Interest and Money’ written in 1936 but what was the title of his first published book?

Please email your answers and your address to [email protected] or send a postcard to: Fabian Society, Fabian Quiz, 11 Dartmouth Street, London. SW1H 9BN. Answers must be received no later than Friday 12th February 2009.

24 Fabian Review Winter 2009/10 LABOURLIST.ORG

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