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