Thinking Differently About How Labour Governs, with Anna Coote, Andrew Harrop, Alison Mcgovern, Yvonne Roberts and Jon Wilson

Fabian Review www.fabians.org.uk Summer 2012

Thinking differently about how Labour governs, with Anna Coote, Andrew Harrop, Alison McGovern, Yvonne Roberts and Jon Wilson

PLUS: Mary Riddell interviews Liz Kendall MP AND: Policy ideas for the next Labour state

The quarterly magazine of the Fabian Society Volume 124 no 2 £4.95

EDITORIAL Image: Adrian Teal

New frontiers Revitalising the public realm means building a new culture in public services whilst thinking differently about the scope of government action when money is tight, says Andrew Harrop

Frustrated, powerless, ignored – the trust, shared purpose, integration and support for any extension of govern- three words people most associate with interdependence – the complete op- ment spending on Labour priority areas their use of public services, accord- posite of the atomistic, hands-off world such as job creation, house-building or ing to new Fabian Society research. of free schools or healthcare by ‘any universal childcare. It is a sad testimony. For all the last qualified provider’. To offer ‘more’ in these areas Labour Labour government’s achievements in To forge a new agenda of values- will need to build public support and revitalising the public realm there was laden institutions and ecosystems also show where the money will come something missing. Ministers focused politicians will however have to move from. Whoever wins the next election, so much on ‘what’ services do, they public opinion. For our research indi- tough public spending choices will often ignored ‘how’ they do it. cates scepticism bordering on hostility therefore be needed. The authors of Our findings suggest that a new with regard to the ‘middle tier’ of our new book, The Shape of Things to politics of public service must focus public institutions above individual Come, argue that after 2015 it will only not on targets and structures but on schools or surgeries. Consider for be possible to restrain public spending relationships and values. When asked example the government’s failure to without causing further hardship by how services should be improved, win the case for elected city mayors. By tackling problems at source. Sometimes the public don’t dismiss the utility of contrast the public has an enduring if that will mean smarter, earlier govern- market-based choices, but they value ambivalent faith in ministers’ powers ment intervention, so that more is done freedoms for frontline staff and strong to hear bedpans falling from Whitehall. to prevent chronic illness, dysfunc- bottom-up accountability just as much. Labour’s new ‘state of mind’ also tional parenting or weak employment So we need a grown-up relationship means thinking differently about the prospects. But it also means embracing between public, staff and the leaders scope of government action when radical reform of the private sector to of public services. But this can’t just be money is tight. Our research confirms end the market failures which load willed through new rules; just as with there is no ideological support for a costs onto the taxpayer through, say, the banks, it needs a new culture. smaller state, with only 23 per cent of the cost of housing or poverty pay. Perhaps, as Jon Wilson suggests people (and one third of Conservative In the autumn the Fabian Society in these pages, the point of national voters) supporting tax cuts and a nar- launches an inquiry on public spend- politics should be to breathe life into rower range of public services. We ing choices to probe these questions. strong, autonomous non-market found enduring support for spending Chaired by Lord McFall, it will seek institutions endowed with the right on the ‘core’ public services we all to identify opportunities to restruc- professionalism, ethos and values? use – health, education and police. ture spending to deliver prosperity We also need to re-imagine public But with cuts set to continue into the and social justice even with flat or service ecosystems based on common next parliament there is little public shrinking budgets.

Summer 2012 Fabian Review 1 FIGURE 2: Difference between per cent supporting tax rises to pay for more provision and tax cuts to pay for less (by party support)

20 CONTENTS

Public Colleges and universitiesProgrammes to help Nurseries and childcare the unemployed housing 0

NHS Police Schools

-20 Elderly care P3 “In areas which are top priorities for Labour, many more people support spending cuts than P13 “We have to have a fair system increases” across generations”

-40 policies for the next state -60 P21 “Since the 1970s socialists have lost Labour P15Swing-voters “Labour needs a new coLiberalncept ioDemocratn of the state coConservativenfidence in their doctrine in the face of the as a partner rather than protector” neo-liberal counter-revolution”

The summer Fabian Review features new polling on people’s attitudes to public services and outlines some policy ideas to illustrate how the 8next Labour government’s approach to statecraft can be reconfigured

3 The language of priorities Fabian Interview Books Andrew Harrop 12 “I want to avoid a clash of the 24 Imagining a life after capitalism generations” Zoe Gannon The state of things Mary Riddell 7 The relational reality THE FABIAN SOCIETY Yvonne Roberts 15 8 policies for the next state 25 Noticeboard 8 The ghostly state and invisible 20 Fabian Quiz 26 The Fabian Society today institution 21 The Fabian Essay: Socialism Georgia Hussey Jon Wilson now 28 The Summer in review 9 Beyond targets Kevin Hickson 28 Listings Summer 2012 Alison McGovern 10 The wisdom of prevention Anna Coote

Editor: Ed Wallis General Secretary: Andrew Harrop MEMBERSHIP Deputy General Secretary: Marcus Roberts Membership Officer: Giles Wright Printed by: DG3 Local Societies Officer: Deborah Stoate London E14 9TE EVENTS AND PARTNERSHIPS Head of Events and Partnerships: FINANCE AND OPERATIONS Designed by: Soapbox Olly Parker Head of Finance and Operations: www.soapbox.co.uk Events and Partnerships Assistant: Phil Mutero Fabian Review Melanie Aplin Fabian Review is the quarterly ISSN 1356 1812 FABIAN WOMEN’S NETWORK journal of the Fabian Society. Like [email protected] EDITORIAL Seema Malhotra all publications of the Fabian Society, Head of Editorial: Ed Wallis [email protected] it represents not the collective view Fabian Society Editorial Assistant: Sofie Jenkinson of the Society, but only the views of the 11 Dartmouth Street Media and Communications Manager: INTERNS individual writers. The responsibility London SW1H 9BN Richard Speight Rachel Chang of the Society is limited to approving Telephone 020 7227 4900 Jack Dahlsen its publications as worthy of Fax 020 7976 7153 RESEARCH Kari Johnson consideration within the Labour [email protected] Senior Researcher: Natan Doron Ben Sayah movement. www.fabians.org.uk Researcher: Rob Tinker

2 Fabian Review Summer 2012 THE LANGUAGE OF PRIORITIES The language of priorities

Our new YouGov polling finds the public give short shrift to many of the left’s traditional spending priorities. To win public support in a tough fiscal environment, we’ll need bold ideas and strong arguments says Andrew Harrop

of the eight areas of spending the most (57 per cent) of those expressing an popular option is ‘the current balance opinion wanted more spending. Andrew Harrop is is about right’ – around half support The news that eldercare is the pub- General Secretary of this view with respect to police, jobs lic’s top priority for any extra spend- the Fabian Society programmes, early years, schools, col- ing should provide a real boost for leges and universities. advocates for comprehensive reform of England’s disastrous social care system. But the rest of the results make Whoever wins in 2015 will face awful Not surprisingly Labour voters for grim reading for Labour politicians. public spending choices. The woeful are a lot more positive about In four areas which are top priorities for state of the economy means the deficit increasing spending on public the party, many more people support will remain high and there will be spending cuts than increases – across almost no scope for public spending services than Conservatives early years, colleges and universities, growth. So George Osborne smells and job programmes, for every two blood. He is quietly plotting a public In two fields, however, more people people who supported spending rises, spending review in 2013 to set out plans wanted a spending rise than a stand- three supported cuts. When it comes to for spending after 2015. He hopes he still. These were the NHS and, perhaps subsidised housing, a top priority for will force Labour into rejecting his plans more surprisingly, elderly care. Indeed many on the left, the results were even without an alternative – and losing any older people’s social care was the only worse: twice as many people want cuts hope of fiscal credibility in the process. one of our eight areas where a majority as increases. But where do people think the money goes now? And what are their priorities for spending in the future? New Fabian FIGURE 1: Would you prefer tax rates and the level of provision for each polling, conducted by YouGov, finds service to rise, or tax rates and the level of provision to fall, or is the some truly surprising answers, with balance about right? a mix of good and bad news for the left. After two years of the govern- Elderly care ment’s austerity narrative, ‘core’ areas NHS of public spending still receive very strong backing. But less mainstream Schools services which matter hugely to the left Police are little valued by the public, with one important exception. Nurseries and childcare Given the overall shortage of money, our polling was careful to present Colleges and Universities spending choices in a way that made it Programmes to help clear that any increase would imply a the unemployed tax rise. So we asked: ‘would you prefer Public housing tax rates and the level of provision for 0% 20% 40% 60% 80% 100% each service to rise, or tax rates and Tax rates should rise, to pay for greater provision of services the level of provision to fall, or is the balance about right?’ The current balance is about right Our first conclusion is that the British Tax rates should fall, to pay for less provision of services are conservative, with a small-c. For six

Summer 2012 Fabian Review 3 THE LANGUAGE OF PRIORITIES

“At the heart of today’s the ‘deserving’ and ‘undeserving’ are not keen on means-testing – but poor. This emerges with great clarity neither do they want the state to popular discontent is a from YouGov’s latest survey for the do more than provide a safety net. widespread sense that Fabian Society. And by a very large majority we Consider how people view the recognise that all of us rely on decent the insurance principle tax-and-spend trade-off for the different public services at some stage in services that the state provides. In only our lives. has been abandoned” two cases is there a decisive preference What, then, does this add up to? for higher tax and more provision over Again, the past provides a guide, lower tax and less provision: the NHS this time going back only half as and care for the elderly. The least popu- far as the Victorian era. This year lar programmes are public housing sees the seventieth anniversary of Peter Kellner is and those ‘to help the unemployed’. So the Beveridge report. This proposed President of YouGov where the poor face the same needs broadly what people nowadays want as everyone else – when they fall ill – a basic but universal system rooted or need care – they deserve to be in the insurance principle. At the treated well. But where people think the heart of today’s popular discontent need is more questionable, they want is a widespread sense that the insur- One of the many controversies that taxes cut. ance principle has been abandoned, Margaret Thatcher provoked was YouGov research earlier this year and that people who pay little in are her call for a return to “Victorian for Prospect explains why. Most of getting too much out of it that they values”. She meant thrift, civic pride us – and this includes most people don’t deserve. and personal responsibility, while on low incomes – think that many The key to reviving popular support many condemned her for glorifying recipients of welfare benefits are for decent welfare provision is to an era of squalor, misery and ‘scroungers’ who tell lies when they re-establish the insurance link between gross exploitation. claim benefits, for example by working payments in and payments out – and In one sense, however, Victorian in the cash economy while claiming to persuade voters that effective steps values are alive and well, or at least job seekers’ allowance. have been taken to prevent freeload- commonplace, today. Most Britons Our Fabian survey helps us to fill ing by those who take the system for implicitly draw a distinction between out the picture further. Most people a ride.

FIGURE 2: Difference between per cent supporting tax rises to pay for more provision and tax cuts to pay for less (by party support)

Public Colleges and universitiesProgrammes to help Nurseries and childcare the unemployed housing 0

NHS Police Schools

-20 Elderly care

-40

-60

Labour Swing-voters Liberal Democrat Conservative

4 Fabian Review Summer 2012 THE LANGUAGE OF PRIORITIES

FIGURE 3: Difference between per cent supporting tax rises to pay for more provision and tax cuts to pay for less (by age)

-10

-20

-30 18–24 25–39 40–59 60+

Nurseries and childcare Elderly care

None of this is to say Labour should Labour voters are a lot more positive us that championing the NHS remains abandon its ambitions for investment about increasing spending on public a huge ‘pull’ for Labour-leaning demo- in these areas. But it does suggest a services than Conservatives, or even graphics, including women and lower great deal of thought and effort will be Liberal Democrats. Interestingly income families. needed to successfully make the case ‘swing-voters’ – people who didn’t vote Age is an important factor, but not for investment. By contrast the findings Labour in 2010 but are now considering as determinative as one might imagine, on social care are very positive. They it – are closer to the Labour position on with only limited evidence of different suggest the public will get behind politi- most areas. Party political identifica- generations expressing ‘selfish’ prefer- cians if they finally agree a cross-party tion makes the least difference when it ences. For example we were extremely solution, even if it requires people to comes to views on policing, followed by surprised to discover that almost as pay for it. social care. Investment in public hous- many 18 to 24 year-olds support a cut ing is the most divisive area, but even in spending on colleges and universities among Labour supporters, as many as back an increase. Elderly care was Looking at different want spending cuts as want rises. much more popular than early years demographic groups, women Looking at different demographic across all age-groups, although that are more positive about groups, women are more positive about support increases with age. Meanwhile spending increases across the board, but more people opposed than supported spending increases across the particularly with respect to the NHS, spending on early years among each board, but particularly with elderly care and policing. Meanwhile age-group except the under-24s, with respect to the NHS, elderly lower income groups (C2DEs) are notice- the most hostile cohort aged 40 to 59. ably more positive than ABC1s about In six out of eight areas no age-group care and policing spending on NHS, public housing and was more pro-spending than the over (to a lesser extent) early years and jobs 60s, despite their strong Conservative These general patterns have their programmes. By contrast they are less leaning. This underlies the importance variations, although none undermine supportive of extra school spending. It for Labour of talking about the risks the the overall picture. Not surprisingly is hardly a revelation, but this reminds coalition is taking with public services.

Summer 2012 Fabian Review 5 THE LANGUAGE OF PRIORITIES

What we think our about, job seeker’s allowance, pro- of over-estimation was higher for the duced the greatest inaccuracy, with latter two, which tend to attract much money’s spent on the average response more than ten more negative comment. times higher than the true figure (7.7 Our conclusion is that the left has per cent rather than 0.7 per cent). The little to fear from better information Eleven years ago the Fabian data also hints that people may be on how much is spent, as long as Commission on Taxation and particularly inclined to over-estimate the information is presented in an Citizenship proposed the publication the scale of unpopular areas of spend- open, clear way. If anything, citizens’ of citizens’ tax statements setting out ing: in reality we spend roughly the statements may convince people we how the public’s money is spent. same on tax credits, disability benefits spend less on ‘unpopular’ causes than Somewhat to our surprise, the and housing benefit; but the scale they think. idea has resurfaced as a key part of George Osborne’s proposals to exert downward pressure on FIGURE 4: Thinking about all the many things that government spends public spending. its money on; how much out of every £100 of government spending Many on the left are wary. But our do you think is spent on the following things? new research suggests that greater transparency could actually give reassurance to the public when it £100 comes to ‘unpopular’ areas of public spending. Why? Because people think we spend far more on them £90 £8 than we do.

£8 The first important finding £80 is that people usually over- estimate how much money £7 is spent £70 £8

Asking ordinary members of the £1 £60 public how much government spends £7 £2 £1 on different areas is of course a £3 ridiculously hard thing to ask. But we £9 £3 wanted to see whether ‘the wisdom of £50 £4 the crowd’ would produce plausible estimates and see what the inevitable £6 inaccuracies told us about public £11 £40 perception. We asked: ‘thinking about all the many things that government £12 spends its money on; how much £10 out of every £100 of government £30 spending do you think is spent on the following things?’ £10 £13 The first important finding is that £20 people usually over-estimate how much money is spent. This was true for eight of the ten areas we asked £10 people about. Based on the average £16 £16 response to each question, people thought that the ten areas together accounted for 91 per cent of all public £0 spending, when the actual figure is 61 What people think What money is per cent. money is spent on actually spent on This inaccuracy is not evenly distributed however: people are NHS Tax credits far better at guessing how much Education Housing benefit we spend on ‘big’ areas of spending – the NHS, state pensions and State pensions Child benefit education – than the rest. Indeed the Defence Police average response for the NHS was correct (16 pence in the pound). By Sickness and disability benefits JSA contrast the smallest budget we asked

6 Fabian Review Summer 2012 THE STATE OF THINGS The next Labour government needs to do the state differently. This is partly because of the brutal fiscal environment it will find itself in: the public spending tap won’t be turned on anytime soon, so Labour needs ways of doing things better for less. But it’s not just about money. Labour used state power in a way that failed to carry its people with it. Yvonne Roberts, Jon Wilson, Alison McGovern, Natan Doron, Anna Coote and Ruth Lister outline a different vision of a Labour state, that’s more relational rather than managerial; preventative rather than reactive; democratic rather than distant; and rekindles contribution.

The relational reality New Labour’s intense managerialism turned many away from the ballot box. Making the relational state flourish can re-engage voters and re-affirm a belief in their power as active citizens says Yvonne Roberts

Act, which devolves more powers to Labour’s intense managerial addiction Yvonne Roberts is local authorities and communities; and and its conviction that targets were chief leader writer the use of local referendums and recall the only ways to motivate and meas- for The Observer laws. Whatever the demarcations of the ure, plus the false consumerist promise and a Fellow of the new frontiers of the state, it will require (that can never be fulfilled) that, for Young Foundation more than doing what has always instance, in schools, social housing and been done, only more vigorously and health, individual market ‘choice’ was employing social media. all that mattered, was a profound part In 2010, Geoff Mulgan, now head of the process that has led to so many Politics, as defined by Westminster, of the charity NESTA, wrote a power- of the electorate to turn away from the has become tainted. Trust has been ful essay which built on his idea of ballot box. lost and engagement drained away the relational state and the shift from Politics has become too much like a so much so that – as Katie Ghose of a state that does things to and for mistrustful and jaded exercise in the Electoral Reform Society argues – people to one that works with people; shopping – a policy from this party, democracy is in danger of becoming a less controlling, more strategic. The another policy from that – and not minority interest. The paradox is that relational state is born out of the failure enough about a clear vision of society this is in spite of a monumental shifting of the current model but also from that permits genuine, not top-down, around of the furniture on the party necessity. The boom period under New co-operative self-organisation among political stage: Scottish devolution; Labour encouraged politicians still fur- different communities of interest; House of Lords reform; the Localism ther to infantalise the electorate. New citizens as active agents in their own

Summer 2012 Fabian Review 7 THE STATE OF THINGS lives. As Mulgan, a former adviser to Tony Blair writes, “a government which is too all-embracing, too power- The ghostly state and ful, or even too efficient may so limit the scope of individual responsibility as to leave people dependent, childlike and passive.” invisible institution For the relational state to flourish is, at its simplest, first, about ethos: working with, not doing to, molded by Jon Wilson argues that we need to radically change how an asset-based approach, not an expec- we think about the state. The task of national politics tation that much of the electorate lacks moral fibre and is riddled with welfare should be to build institutions, not try to control them dependency. Metrics questions what we count and value and why: what outcomes equal success? Metrics ought to include a and tax offices. It’s is a sprawling, de- Jon Wilson is a community’s social capital, resilience centralised collection of institutions. historian at King’s and wellbeing. Accountability requires Each has a life of their own: its own College London and a wider and more imaginative use of culture, its own local roots, its own member of Movement tools such as social media. Lessons can ways of justifying what it does to its for Change National be learnt from the example of single workers and users, as well as its own Committee issue campaigning organisations such of accounting to government. People as 38 Degrees, now with a million have a relationship with those real members, many of them new to politi- Where is the state? The Tories want it to institutions. cal activism. This will help to expand do less, Labour to do it better. Everyone We’ve forgotten about the real life of the pool of future politicians – a pool wants to run it. The Fabians publish local public institutions. If the state is a which, at present, is a desperately shal- magazines about it. But scratch the ghost, the institutions supposed to do low puddle. surface and it has a phantom-like pres- its work are invisible. What is also vital is the value of ence. You can’t see it or touch it. There The consequences are corrosive. narrative, the “overarching story” for are schools, hospitals, councils and law Politicians believe they’re managing a which Jon Cruddas, head of Labour’s courts, the benefit office and the Palace machine. Public workers think they’re policy review, is now said to be in of Westminster. But no one has direct only accountable to constantly shifting search. Jonathan Haidt in The Righteous experience of the state. national targets and standards, not Mind: Why Good People are Divided by As the Fabian Society’s research users. Councillors are more interested Politics and Region, refers to the research shows (see box), people don’t like the in the Audit Commission than local of psychologist Dan McAdams and the public sector. We all want things Labour citizens. The proliferation of meaning- importance of how our individual life thinks the state is about – solidarity, less paperwork drives the voice of real narratives – “a simplified and selective care, everyone pulling together. But people out of the system. reconstruction of the past” – feed into public institutions are cold, detached What can we learn from this? We an adult political identity. and disconnected. For every commit- need to recognise the independence of The construction of an overarching ted nurse there’s another who doesn’t local public institutions. Organisations political narrative and the urgent need hear a patient screaming in pain. work best when they’re driven by to re-engage voters and re-affirm a be- So, as people increasingly suggest, people’s internal sense of what’s good. lief in their power as active citizens, has the answer is for the state to be more The nurse who really cares is better become so much more difficult since ‘relational’. But can you have a re- than one who’s told to. A teacher is no both Labour and Conservative for lationship with a ghost? Can people good if they’re just following the rules. decades have focused on the moral connect to something so abstract and Public service workers should not deficiencies of sections of society and distant from everyday experience as be wholly in charge. But ‘producers’ ‘broken Britain’. ‘the state’? I don’t think so. For the aren’t effectively held to account by A strongly effective new political relational state to become real, we national standards or targets. Much narrative has to include a redesigning need to think harder about what we’re of the time, they find ways to game of the aims and goals of the welfare talking about. the system and entrench their own state; a 21st century definition of fair- When we talk about ‘the state’ we authority even further. ness (no more ‘light touch’ on the most talk about two quite different things. The answer is for public institutions privileged); the valuing of the public First of all, we mean the power of that are reconstituted as little democra- sector; care and vocation; a place for our democratically-elected sovereign to cies, in which different interests are political innovation and failure; an command in the public interest, as they forced to work together. Real power absence of demonisation of individual see it. This state commands through comes from the relationships institu- groups in the community; and a tone abstraction. It tries to do things by tions create between workers, users that treats the electorate as capable spending money, or making rules. But and local citizens. That means being adults. no-one has a relationship with cash or less worried about an abstract idea of Too often, on a party and personal regulations. Abstraction never makes a the public interest and more about a (promotion-minded) basis, politicians difference on its own. local sense of the common good. view voters as obstacles and liabilities. But the state is also something else. The task of national politics should And there’s no place for that in the It means schools and hospitals, law be to build institutions, not try to relational state. courts and councils, benefit offices control them. That’s what Labour once

8 Fabian Review Summer 2012 THE STATE OF THINGS

did: the NHS, new universities, comprehensive schools. Now, we need different institutions. But the spirit should be the same, to create then let go. Public services leave We’ve forgotten about the real life of local public people powerless institutions In new research by the Fabian This is a significant section of the Society, we found the top three words population who are not only less To start, politicians need to be clear the public associated with their satisfied by public services, but feel about what they can’t tell people to experiences of public services were considerably less ownership of ser- do. Too often, public servants use frustrated, powerless and ignored. vices. This is wrong. At a time when compliance as an excuse for caution, In the discussion groups we ran political disenchantment is so high implementing regulations which one has as part of the research, participants and public services are under such forced them to do. Our public sector argued that an increased voice for strain, we must now use services to spends too much time chasing ghosts, local people in decisions about run- engage a wider public. imagining the central state has far more ning services would improve qual- Those who choose not to vote are power to command that it really does. ity. Participants also suggested that in many ways totally disconnected Of course, national politicians it would provide a chance for local from political processes and as a con- are elected to make things happen. people to feel ‘a part of something’. sequence have little political power. Sometimes they do need to rule by com- This idea presents a fairly strong Political power is often felt most at a mand. But when they do, they need to argument in favour of viewing public local level. The ability to influence and recognise they’re coercing people who’ve service reform as a vehicle for civic control your local environment is one got their own ways of doing things. They engagement, particularly as we found that should be extended as wide as pos- need to understand the limits of their that those who choose not to vote are sible to reduce inequalities in society. power, and care of the financial and also those who feel the least owner- It is for this reason that public service emotional consequences of compulsion. ship of services. reform provides a credible ‘way in’ for Politics needs to be less about manage- Non-voters as a group are of a sub- attempting to engage people who have ment and more about statecraft, knowing stantial size and actually outnumbered lost faith in politics or perhaps never when to listen, negotiate and persuade those intending to vote Conservative had such faith in the first place. and when to rule through force. at the time we conducted our research So rather than seeing debates about So the answer is not for the central (4th – 9th April 2012). Where over- public service reform purely as a ster- state to measure different things. Even all responses to our polling survey ile discussion about increasing choice if we get better at counting what people found that 19 per cent of people were through an increased diversity of think about government services, we’re ‘satisfied’ with public services, for provider, a fresh look at public service still being deluded by ghosts. Politicians non-voters this was only 12 per cent. reform needs to integrate attempts to can lead, persuade, chastise and com- More strikingly, the answer ‘belongs engage people in politics and hold mand but they have no power to act to everyone’ being associated with local services to account.. on their own. The nearer you get to public services scored 14 per cent everyday experience of ‘the state’, the across all respondents on average, but Natan Doron is Senior Researcher at the more you see that its real people in local only 6 per cent for non-voters. Fabian Society. institutions who get things done.

Beyond targets

Politicians need measures of success to get re-elected, but targets based around outputs or outcomes are limited. Alison McGovern writes that her fellow politicians need to shift to a measure that begins with the citizen’s view point

In politics, targets matter. It’s pretty hard to get elected without saying Alison McGovern is what you will do if you win. The Member of Parliament public are rightly sceptical about those for Wirral South. who are unclear about their practical priorities.

Summer 2012 Fabian Review 9 THE STATE OF THINGS

And once you are seeking re-election, views on time). These are indeed the with one of the most important drivers delivery is an absolute political neces- tasks Jobcentre Plus carries out. But of ambition and identity: work. We need sity. I recall a Member of Parliament it’s not judged on what people actually to do much more than be polite. once describing to me his ‘what have think of the quality of service they’ve We need to restore the loss of dignity the Romans ever done for us’ leaflets. received. So it’s possible for staff to be involved in job insecurity. To do so, He had to remind to his voters that at promoting options that aren’t right for we need personal, specific assistance. the previous election he said what he the person concerned. And we need to recognise that the was going to vote for – smaller class The Conservatives’ approach to get- right and responsibility of each to work sizes, more nurses – and that he’d done ting people back to work has been an means the state has a responsibility it. Future pledges alone aren’t enough: attempt at marketisation. Flaws in their to recognise the unique barriers that we need credibility too. thinking have become immediately ap- face each person. Public servants need However, it’s not controversial to parent as the A4e scandal, and the exclu- to use emotional intelligence, and be suggest that simple targets have their sion of smaller, specific organisations in empowered to meet the aims of the flaws. Objective targets, which do not back-to-work efforts, have materialised. service in diverse circumstances. consider the subjective perception of So what should a Labour redesign For example, those out of work with government by the individual, are lim- of back-to-work targets look like? significant disabilities need different ited. As I have written before, what Switching away from outputs (or tasks help than young people caught up in a matters is the real life of the state. completed) to outcomes (the change global downturn hitting a place of low Let’s take an example. achieved) is necessary but not suffi- employment opportunities. Politicians Jobcentre Plus is judged cient. We need to assert what qualities can state the guarantee for all: a right to on job outcomes (peo- the relationship between the state and back-to-work help, and then empower ple moving into work), its people should be. local delivery, respectful of difference, employer engage- The existing customer service target and interested in the quality of life of ment (mainly for Jobcentre Plus goes some way to those they serve. whether job describing this. It challenges Jobcentres We’ll still need to track what govern- centres fill to treat customers with respect, be help- ment does of course, but we need a vacant posts), ful, polite, and listen. Customers are measure that begins with the citizen’s and timeli- also asked whether information was view point. We’ll need more than ever ness of pro- accurate and easy to use. to be accountable for the actions of the cesses (for But we need to go much further. In a state, but our election leaflets should be example, recession, more people are likely to walk written about the satisfaction the public holding into Jobcentre Plus for the first time. This really feel about those actions, not just a inter- is the moment that the state interacts production statistic. The wisdom of prevention The case for preventing harm instead of spending scarce public money on dealing with problems once they have occurred seems self- evident. So why is it so hard to move upstream asks Anna Coote?

This is how the welfare state works. sick – especially when most forms of Anna Coote is Head Almost all our resources and energies illness, from diabetes and heart disease of Social Policy for nef are devoted to dealing with problems to road injuries, depression and lung – the new economics once they have occurred, rather than cancer, are known to be avoidable? foundation stopping them from happening in the Wouldn’t we all prefer to avert the ca- first place. The case for moving up- lamities threatened by climate change, stream to prevent harm applies not just rather than leave a lethal legacy for our to the way we manage society, but also children and grandchildren? Which of You are on the banks of a fast-flowing to how we deal with the environment us would choose to take money out of river. You are trying to rescue people and the economy. taxpayers’ pockets and punish the poor who are being swept downstream. The On the surface, being in favour of in order to pay for an eye-watering bail- bodies keep hurtling past and you are preventing harm is like being against out, if we can prevent our banks from so busy hauling them out that it’s a sin. Who wouldn’t choose to stop gambling their way to insolvency? while before you stop to ask: what’s people getting ill instead of going to The more we are threatened by crisis, going on upstream? What can be done all the expense and bother of trying the stronger the case becomes. Social to stop all these people falling in? to make them better when they are inequalities are widening obscenely,

10 Fabian Review Summer 2012 THE STATE OF THINGS bringing all manner of distress, con- is concerned, government policies welfare services – locking people into flict and waste. The earth’s natural are ostensibly upstream, focused on the downstream ethics of helping those resources are already stretched beyond carbon reduction and energy efficiency; who are already vulnerable and needy. their capacity to support our growing however, policy and practice are far too Rescue and cure tend to have imme- populations and the rapacious living piecemeal and the pace far too leisurely diate, tangible and measurable results, standards of the rich west. The power to avoid catastrophic damage in the while preventative measures are more of global capitalism to plunder the longer term. As for the economy, the complex and harder to measure: this environment and ratchet up social potential for preventing harm is mired creates a political bias against shifting inequalities becomes increasingly de- in neo-liberal ideology, where regula- the balance of investment upstream. structive as it struggles with its own tion is anathema, and in the hegemonic Meanwhile, the neo-liberal consensus copious contradictions. pursuit of growth, which trumps other favours maximum freedom for markets, Mainly, we know what to do to options. which are usually too short-sighted to prevent harm. We have plenty of good appreciate the benefits of preventing evidence about what works if we want social and environmental damage. to promote well-being, prevent disease, The earth’s natural resources No wonder preventing harm has mitigate global warming, protect natu- are already stretched beyond been described by one protagonist as ral resources and curb the excesses of their capacity to support our a “a category-shifting, mind-changing financial institutions. It’s easy to see the idea”. But a paradigm shift is just advantages of shifting investment and growing populations and the what’s needed to deal with the toxic action upstream: a better quality of life, rapacious living standards of combination of crises we face today. more efficient use of public resources, the rich west And crisis provides opportunity. There less need for heavy-handed state inter- is mounting evidence that downstream vention to deal with the consequences solutions aren’t working. Dissenting of failing to prevent harm, and a safer Why does it seem so hard to move voices are growing stronger and more legacy for future generations. upstream? Prevention calls for careful plentiful – from senior economists to But we don’t do it. In the case of anticipation and long-term planning, street-level protests. Radical change is the welfare state, the Beveridge ideal, which fly in the face of the short- creeping back up the political agenda. which was essentially preventative, has term urgencies of electoral politics. This is probably the best chance we’ve morphed into a deficit model, increas- The logic of averting harm seems to had in 30 years to put the wisdom of ingly restricted to meeting the needs of contradict the ‘rescue principle’ that prevention at the heart of a new politi- the neediest. Where the environment defines philanthropy, charity and most cal economy.

The case for contribution

Winning public support for spending behaviour-based diagnosis of the creates resentment among some of on benefits will not simply be a mat- causes of poverty has triumphed those who do not qualify. ter of some new eye-catching policy in a country where public attitudes Evidence of the value the public proposals. First the whole debate have always been more prone to attaches to reciprocity has rekindled on benefits needs re-framing. There blame ‘the poor’ than in continental interest in the contributory principle. is a growing belief that poverty is Europe. A recent TUC Touchstone pamphlet due more to individual failings than Public attitudes are clearly not makes the case for strengthening to injustice, as well as diminishing fixed but that does not mean it will contributory benefits as one (though support for redistribution through be easy to shift the tide. A first step not the only) means of addressing the tax-and-benefits system, and a in re-framing the debate could be the crisis of public confidence in the growing belief that benefits are too to reassert a clear structural analysis social security system. Instead of high, discouraging work incentives of poverty and an understanding of a negative case based on attacking and encouraging ‘scrounging’. All how individual agency is constrained. ‘something for nothing’, it considers appear to be undermining any sense Then we need to stop talking about ways of increasing the returns to of solidarity with benefit recipients. ‘welfare’, which has taken on such contributions. Another option might Public attitudes are mirroring pretty divisive and pejorative meanings, and be that aired by the Commission consistent messages from govern- reclaim the language of social security for Social Justice: allow payment of ment (New Labour as well as the or social protection. This could speak higher contributions in return for coalition). For some time politicians to the growing sense of insecurity higher benefits. ‘Premium’ national have denounced a supposed ‘de- felt by many citizens. We need to insurance might be sold as superior pendency culture’ and irresponsible remind people that social security is to private insurance and bind more benefit claimants, while ever more not just about poverty relief but about people into the scheme. punitive rules appear to have guaranteeing a degree of economic se- increased mistrust in the benefits curity for everyone. This points away Ruth Lister is a Labour peer and system rather than allay it. The cur- from such heavy reliance on means- Emeritus Professor of Social Policy at rent government’s individualistic testing, which ‘others’ recipients and Loughborough University

Summer 2012 Fabian Review 11 THE FABIAN INTERVIEW: LIZ KENDALL

“I want to avoid a clash of the generations”

Liz Kendall is one of Labour’s rising stars, tasked with one of the most important jobs in politics: securing the revolution in social care on which the future of Britain’s public finances depends. She talks to Mary Riddell about avoiding the impending car crash and how the costs of ageing can be fairly shared © Richard Gardner/Rex Features

12 Fabian Review Summer 2012 THE FABIAN INTERVIEW

Umunna and Rachel Reeves, some are tipping Kendall as the most likely future leader. “Oh my God, I’ve never heard that in my life. That is genuinely horrifying to hear.” Mary Riddell is a columnist for the Those who single Kendall out as a high-flier point to her Daily Telegraph human touch. Besides having an empathy with the older people whose interests she represents, she has the rare political quality of not actually looking, or sounding, like a politician. Never likely to be mistaken for a technocrat, she dislikes “the self-absorbed world of Westminster. Most Liz Kendall comes from a campaigning background. Her of my friends have nothing to do with politics. I keep in parents, a banker and a primary school teacher, were stalwarts good touch with my family – not enough, mum, I’m sorry. of the local community. And so, from an early age, was she. I nip home between votes [she shares a London flat with a “One of my first protest marches was for a zebra crossing,” partner whom she prefers not to discuss] and watch some she says. That zeal has not faded, which is just as well. As normal telly.” shadow minister for care and older people, Kendall is charged with securing the revolution on which the future of Britain may depend. She deplores the two-tier system under which Without a decent social care system for the elderly, the “people who have to pay for their care are NHS will crumble and the compact between generations subsidising council-funded residents. Providers fray. We meet shortly before the much-delayed white paper on social care is due to be published, and – although gloom are now saying they’re going to cut council- is not in Kendall’s repertoire – it is clear that she holds out funded places to concentrate on affluent areas, little hope of a comprehensive solution in a narrowly-framed paper thought unlikely to herald rapid implementation of so both sides are suffering: poorer people and the funding proposals set out in the report by the economist, those on middle incomes” Andrew Dilnot. “One of the really big disappointments in the Queen’s While there is nothing affected about Kendall’s ordinari- Speech was that they [the government] had promised, back ness, nor is it a complete picture. Educated at Watford Girls’ in 2010, a new legal and financial framework for social Grammar School (which was non-selective, she is quick to care.” That pledge was watered down to a draft bill omitting point out), she went to Queen’s College, Cambridge, graduat- the key issues and skirting round the £1.7 billion cost said ing with a First in History in 1993. In addition to a range of to have alarmed George Osborne. “We’re very concerned charity and think tank jobs focused on health, social care and that the Treasury doesn’t support Dilnot. It’s a massive early years, she was a special adviser to two cabinet ministers, mistake. Health and social care will be the primary pressure Patricia Hewitt and Harriet Harman. on public finances, and without reform funding will be Given the overload of younger politicians fast-tracked unsustainable.” from the special advisers’ office to the front bench, does she As evidence of the impending car crash, she cities the favour the idea of non-SPAD shortlists? “Yes, I really think we Barnet “graph of doom”, a PowerPoint slide showing that, should make it easy for people who don’t know the system. If within 20 years and unless things change dramatically, the we only represent a narrow part of the population, we’re not north London council will be able to provide no services going to make the right policies.” at all, apart from adult social care and some provision for On her own policy brief, she is – for now at least – more children. There will be no libraries, no parks, no leisure voluble on the defects than the remedies. She deplores the centres, and no bin collections. That apocalyptic future two-tier system under which “people who have to pay for for Barnet – once named the easyCouncil for its buoyant their care are subsidising council-funded residents. Providers approach to outsourcing – is likely to be replicated across are now saying they’re going to cut council-funded places the country. to concentrate on affluent areas, so both sides are suffering: poorer people and those on middle incomes. I’ve seen brilliant homes and shadowed workers who love their jobs, but this Kendall has the rare political quality of not is a low-status, predominantly female profession, in which actually looking, or sounding, like a politician. [thousands of] workers don’t even get the minimum wage.” In Gordon Brown’s day, and even now, Labour was inclined Never likely to be mistaken for a technocrat, to vest the future of Britain in burgeoning creative industries she dislikes “the self-absorbed world of and a high tech revolution. Kendall is one of the shadow team Westminster. Most of my friends have nothing to – Reeves is another – who argues that economic renaissance lies in the unglamorous and currently ill-rewarded end of do with politics” public services. “This [social care for the elderly] is a growth area. Why can’t we see this as an opportunity for the economy, Labour is scarcely blameless in the genesis of this crisis. as they do in France, setting up new companies and creating Successive governments ignored the problems of an ageing new jobs?” population until, in the twilight of the Brown administration, That, like much else, is a question for the health secretary. Andy Burnham’s cross-party talks collapsed amid a flurry of Kendall is cagey about revealing a Labour prospectus, on the alarmist propaganda about Labour’s “death tax.” But that was grounds that cross-party talks – since abandoned – are under before Kendall’s time. way to devise a durable system that will endure into the fu- Elected in 2010 as MP for Leicester West, she has emerged ture. Dim as the chances may seem of a satisfactory outcome, as one of the stand-out members of the new intake, rapidly both Kendall and Burnham must be hoping profoundly that promoted and entitled to attend shadow cabinet, although not the government proposes a financial solution – for, if it does yet as a full member. Even in a generation that includes Chuka not, then any incoming Labour government would inherit

Summer 2012 Fabian Review 13 THE FABIAN INTERVIEW the responsibility of dealing with a costly, and seemingly Darzi’s recommendations led to stroke care being concen- intractable, crisis. trated in eight [hyper-acute London] units. It was very Presumably she is banking on social care going into the controversial at the time, but now we have the best outcomes next spending review by George Osborne? “We want to solve of any major industrialised city in the world. You do need the problem as soon as possible. We want it done in this greater specialisation – and more people [treated] out of parliament. We’d like to see agreement before the spending hospital.” review.” On the current showing, that sounds optimistic, if Although Labour bitterly opposed Andrew Lansley’s not impossible. Health and Social Care Bill, warning of dire consequences, any incoming Labour administration will not be reversing the bulk of the reforms. “We’re not going to have another “We have to have a fair system across massive reorganisation”. Although Labour would introduce generations. When young people face greater integration between services, there are no plans to row tuition fees, squeezed incomes and high back on GP commissioning of services. “We always wanted to involve GPs more. If we had got back into government, that’s costs of living, it’s very hard to ask that the what we’d have done.” So the Lansley model can be made to entire payment come from the working age work? “We need to see the situation when we get back into population.” government. My big worry is that no one really knows who’s responsible in the [current] structure.” One day it may be her. Kendall is tipped as a future health So what does Labour have up its sleeve? Lord Warner, a secretary, an advancement she is eager to downplay. “I’ve member of the Dilnot Commission, has recently disinterred only been an MP for two years. If I can be a good MP, make the idea of an inheritance tax. Is Kendall in favour? “Before a difference on the care issue and be as normal a daughter, the election, one of the options we looked at [in reality the sister and a friend as I possibly can, that’s all I want to do.” central plank of the Burnham proposals] was a care levy. The Though she is neither overtly ambitious nor competitive, Tories called it a death tax , but it was [meant to be] a way to Kendall gives the impression that Labour’s new intake, unlike protect everybody; a small levy to guarantee that you kept the the Tories’ 301 group, is not a cohesive band. “I don’t feel it’s majority of your home to pass on to your children rather than a distinct group. I’m friendly to people across the intakes. I having to sell it to pay catastrophic care costs. don’t feel tribal.” “We have to have a fair system across generations. When young people face tuition fees, squeezed incomes and high costs of living, it’s very hard to ask that the entire payment If the government continues to prevaricate on come from the working age population. We’re not saying crucial issues, then she promises that Labour we’re going to do a care levy. That was our proposal at the last will pick up the challenge. “We have to show election, but you have to look at how costs are fairly shared. I want to avoid a clash of the generations.” we are prepared to take decisions. Whatever It sounds as if an inheritance tax of some variety is firmly happens, we shall have proposals on social on the table? “One of the things Dilnot proposes is a deferred care. That will be a big part of our manifesto payment, where the council pays your fee, and the money is recouped from your estate when you die. We’ve said we’ll look at everything he proposes, but whether the government A vice chair of Progress (she is also a Fabian member), is prepared to consider that is another matter.” Kendall is quick to defend it against allegations by the GMB The Dilnot plan, proposing a £35,000 cap on individual union that it is a subversive organisation that should be payments with the rest met by the state, has long been held expelled from Labour. “It’s a brilliant organisation. I’m a up as the ultimate goal in social care reform. In Kendall’s view, champion. We want more debate in the party, not less.” Dilnot is not enough. “Dilnot himself said that. You have two As a Leicester MP, in a predominantly white working pressures, sufficient funding for the present and reform for the class constituency, she is no stranger to doorstep anxieties future. The choice is not to put more money into the present about migration and eastern European incomers. “It’s educa- system or to do Dilnot. You have to do both.” tion and job opportunities they need.” But Ed Miliband Despite apocalyptic warnings of meltdown, the govern- didn’t broach that theme in his immigration speech? “He ment currently shows little inclination to do either. If progress will. Labour has to do what it says on the tin – open people’s stalls, does she envisage people dying for want of basic care? eyes to the world of opportunity and work. Education is my “You will have people ending up in hospital and residential passion.” homes. We know it doesn’t have to be this way.” If the Perhaps that, rather than health, is her future niche? “We government continues to prevaricate on crucial issues, then have the fabulous Stephen Twigg.” For now, each Friday she promises that Labour will pick up the challenge. “We have without fail, she takes an assembly in one of her constituency to show we are prepared to take decisions. Whatever happens, primary schools. “I tell the kids about being an MP. I tell them we shall have proposals on social care. That will be a big part it’s their parliament, not mine. It’s the most inspiring bit of of our manifesto." the week. They ask questions. ‘What’s government for? Why With NHS hospital trusts running into financial difficulty, do we have laws? Do you have a pet?’ (She doesn’t). Lifelong does she accept that the PFI schemes evangelised by Gordon learning is the only way we’ll cope in a globalised world. Brown and others represented a dreadful mistake? “I don’t It’s about acquiring the feeling that you can do something to think it is. There may be deals that weren’t the right ones for a influence events.” particular area, but the huge question and the key issue is the Liz Kendall’s own mission to influence events began when shape of hospital services.” she was the same age as the children to whom she hopes to Her vision is for specialised units rather than the current transmit her love of politics. She doesn’t say whether she sprawl of services. Is she talking about closing hospitals? got the zebra crossing for which she campaigned long ago. I “I don’t think we’re talking about closing hospitals. [Lord] expect she did.

14 Fabian Review Summer 2012 8 policies for the next state

policies for the next state

Support personal health budgets

Vidhya Alakeson is Research and Strategy Director at the Resolution Foundation, 8writing in a personal capacity

The left has always been strong on protection for the vulnerable example. She has significant mental health problems and has but all too often this comes at a high price for those who are been frequently admitted to hospital over the last four years. on the receiving end of support. The experience of individuals But being the recipient of over £100,000 of NHS support a and families who depend on state support is often one of year has done little to keep Claire well. With a personal health disempowerment and a loss of control. Their lives become budget to purchase a laptop, a gym membership and a college shaped by services, dictated by petty rules and regulations and course alongside some traditional services, she is managing to dominated by professionals, with little recognition for their stay out of hospital, learn new skills, regain some independ- role as experts in their own lives or their goals for what their ence and rebuild her relationship with her family, at less than lives could be. They become defined by the services they use a fifth of the cost. rather than by the people they are. Giving individuals with long term conditions greater con- Labour needs a new conception of the state as a partner trol of the support available from the NHS through a personal rather than a protector, recognising the expertise and assets health budget would refocus the NHS away from narrow that individuals have to solve some of their own problems. symptom management to allow individuals to improve their This is not about withdrawal of the state but a change in the health and wellbeing as they see fit, drawing on professional relationship between the citizen and the state, to one in which expertise as necessary but recognising people are experts by individuals and families shape the support that they receive to experience. Instead of buying services for people, individuals meet their own needs. would become purchasers in their own right, forcing the market This new relationship would be powerfully demonstrated to respond to their preferences and not the block purchasing of by Labour support for personal health budgets for everyone central commissioners. This shift towards partnership between with a long term condition who wants one. These are condi- the citizen and the state will be essential in securing the future tions like cancer, arthritis and depression that affect the way viability of the NHS as a service free at the point of use, as well people live as much as their state of health. Take Claire, as an as signalling a change in the role of the state. 1 Summer 2012 Fabian Review 15 8 policies for the next state A local early years infrastructure

Frank Field is MP for Birkenhead

All politicians seem to revere social mobility as a policy not good at in Britain is translating this evidence into service objective, but, in my experience, very few fully grasp what provision. And the early years has, so far, not been an area to this means, or have sat back to form a practical strategy which politicians, with notable exceptions (David Blunkett to that actually works. This in part explains the subtitle for my name just one), have given a lot of strategic thinking. Poverty Review report: ‘preventing poor children becoming Therefore should not Labour’s next manifesto set an poor adults’. explicit goal to promote good child development? What can In that report I set out an evidence-based strategy to the state do to advance this? combat class driven outcomes in childhood. We see this in the I recommend that a new Foundation Years education data: by age 3 class-based gaps in attainment emerge between infrastructure be created which would coalesce all early years richer and poorer children, and consequently when children services into one structure to make it more effective and self arrive at school for the first time, poorer children have lower reinforcing. At present a whole host of parties are responsible: levels of attainment than their richer peers. midwives, sure start, health visitors and ‘childcare settings’, Although schools raise the performance level of all children, yet these institutions do not always work well together and they do not close this attainment gap and so richer children are often reactive rather than proactive. tend to leave school with higher levels of attainment, and are A new infrastructure, locally driven, would provide a seam- therefore best placed to make best use of the opportunities less service to children, parents and parents to be, and would which the world affords them. work towards promoting good development, particularly Crucially, the evidence from the longitudinal studies shows for poorer children. Where issues arise, interventions would that it is possible to predict by age five where children will quickly be put in place, and parents would be supported to end up in adulthood. The ‘x factor’, although in this case it is create the best home learning environment possible. known, is having a good level of development at age 5. Existing budgets would therefore be better used to ensure The good news is that we know what good development the circumstances of a person’s birth no longer determine looks like, and, even better, how to promote it. What2 we are their lifetime achievements. Microcredit can kick start self-employment

David Blunkett is MP for Sheffield Brightside and Hillsborough

It pains me to say so, but the coalition have come up with and taking job placements, we need to think imaginatively. one good idea. They call it ’troubled families’. We might call Microcredit offers this opportunity. it ’family intervention plus’. This programme offers £458 To begin with, it would take people who are either on million over three years to help turn round personal and ‘social fund’ loans, or more likely the two-and-a-half-million financial problems, and focus on getting all adult members of people who are on ‘home domestic credit’ at most incredible the family into work. APR repayment rates, and work with them. One thing, at least in rhetoric, which unites both Labour and They have a loan, they have problems in paying it back, the Conservatives, is that work is the best way out of poverty. they are captured by the interest payments, which make it The trouble is that government action has often been impossible to escape from the trap. top-down, and has been about trying to fit those in par- Linking affordable credit with microcredit would ensure ticular neighbourhoods into a broader uniformed pattern that people were given the opportunity to borrow at accept- of behaviour. able rates, but not simply to pay off existing debts. Instead, What is needed is a two-fold approach. this would create an account on which they could then draw The first is the targeted and unified approach which the (using of course existing credit unions) to provide the advice ‘troubled families’ initiative is intended to achieve. It does, as well as the funding needed for them to be able to start however, need to go a great deal further in uniting the range earning a living. of benefits and therefore income available into something Yes, a lot of it would be fairly menial and basic work. more positive. But if people need ironing doing, meals preparing and Secondly, it needs to take people where they are and delivering, basic repair and gardening work, then why address the potential for them finding a niche within the not? immediate and broader community, which will lift their Getting paid means being able to pay off the debt; paying self-esteem and self-respect and give them a feeling that they off the debt whilst having an account offers people the chance really can make a contribution. of building up their own credit. One way we can do this is through ‘microcredit’, In this way, we can then move people into an optimistic which provides affordable loans specifically to kick-start situation of genuine hope. Let’s not fall into the trap set by self-employment. David Cameron in his recent welfare proposals: we too will Where there is very deep-seated poverty and a tradition need to think radically about conditionality but reciprocity of rejecting more conventional pathways to learning3 skills means a key role for government not its disengagement.

16 Fabian Review Summer 2012 8 policies for the next state

‘The room for manoeuvre in down some choices and reasonable people often work out that their room for manoeuvre is much narrower than they government is narrow’ had assumed. The Labour party is currently wasting a lot of energy Philip Collins is a columnist and trying to pretend this is not true in public service reform. In 2005, when I worked in 10 Downing Street, I remember leader writer for The Times finding an interesting document which, slightly doctored to take out some superfluous rhetoric, I sent round to my colleagues at the time. To a man and woman they responded by asking me why I had bothered circulating If Ed Miliband sounds vague at times, then so much the a paper which simply summarised the objectives of the better for him. Too precise an account of what he might government’s reform programme. I then revealed that I had do were he to become prime minister is almost always just sent them the 1997 Conservative party manifesto. an error. This sounds slippery and, in a way, it is. But the The point was that, after a long spell in government, demand on the leader of the opposition is to supply a different administrations had drawn the same conclusions. flavor of what his leadership might be like without granting Public services would work better, all concerned had de- too many promises that cannot be disavowed later. cided, if they were subject to a range of external incentives, The case of Nick Clegg is instructive and final. Never rather than simply left to their own devices. Both administra- truly believing himself to be a candidate for high office, tions had concluded that managerial autonomy was the best Clegg felt free to enter the 2010 general election with a option, as long as the results came in as expected. battery of promises. The most conspicuous, in retrospect, To the extent that the coalition is extending the was the student-bait of an end to tuition fees. If the Liberal principles that informed the work of the later Blair years, Democrats sink at the next election it will be tuition fees Labour should be careful about going in too hard with the that broke their pledge of integrity. criticism. The main reason Labour has no alternative set of But there is a bigger lesson than simply trying to remain ideas at the moment is that the range of possible options studiously vague. The thing to take from the experience of is narrow. It’s all been tried before and, for all its faults, the Liberal Democrats is not that they were double-crossed the approach that the Major government and that the Blair by the Tories. Their pain is not the inevitable consequence government arrived at has the most promise. of coalition. They could, after all, have abstained on the Labour sounds like it may well have to learn that lesson vote and, tactically, they ought to have done so. But that is all over again. The effect of sentimental opposition, in to advocate, in effect, that they should lie. health in particular, will be an impossible inheritance in The truth about the tuition fee debacle is that, once they government. The NHS cannot go on as it is. The traffic arrived in government and got their heads around the into the NHS from social care is just one example. Any facts, senior Liberal Democrats changed their minds. They responsible government, no matter how many parties form realised their policy was a nonsense. The history of tuition it and no matter what its political complexion, has some fees is easy to relate. The government is in favour of them horrible decisions to make on the NHS in the next decade. and the opposition is against. That rule is invariable no You have to be careful that you are not, in effect, ducking matter which party is in which role. Government narrows them by loose talk in opposition.

Develop a national mentoring programme

Sonia Sodha is Head of Policy and Strategy at the Social Research Unit, writing in a personal capacity

How children go onto do later in life isn’t just a factor of showed that after 18 months of mentoring, young people were whether they develop crucial basic skills like reading, writing over 50 per cent less likely to skip school and 46 per cent less and arithmetic – or even how many GCSEs or A levels they likely to begin using drugs. get. Just as important is whether they develop the outlook or But if a mentoring programme was going to work there are ‘character’ that helps them get on; characteristics like motiva- several things it would need to incorporate. First, the evidence tion, the ability to stick at a task, discipline and aspiration. on adult-child mentoring programmes is mixed – some Family is the most important influence on these. But de- schemes have been found to have little or no impact and veloping strong relationships with other adults – for example, poorly run programmes can even do harm. at school or in the community – can help to partly offset the What makes BBBS so effective? It uses psychologists to impact of growing up without positive role models at home. match mentors and mentees, who also provide training Labour should consider adopting a national mentoring and ongoing support to mentors. Mentors are asked to programme for its next manifesto. Evidence from the Big make a significant time commitment for at least a year. The Brothers Big Sisters (BBBS) mentoring scheme in the United programme is targeted at at-risk children and young people, States – now running in 12 countries – suggests that if done including those living in poverty and in single-parent right, giving at-risk children and young people the opportu- homes, and parents have to be signed up. These factors make nity to build long-term relationships with adult mentors in BBBS more expensive than many mentoring programmes their local community can significantly help. One evaluation (around £1000 per child per year) but rigorous cost-benefit 4 Summer 2012 Fabian Review 17 8 policies for the next state analysis has shown it generates four times this in return for providers such as charities and social enterprises rather than taxpayers. run as a top-down programme; so long as they stick to what The second important feature is that BBBS has grown out of makes the scheme successful. civil society, partly funded by business, and is run on a feder- A national mentoring programme would be a symbol of ated model like the Scouts or Guides. But local chapters have the relationship between the state and society that Labour to be faithful to the features of the programme that make it so wants to see: neither big-state solutions nor a ’big society’ style effective. Were a Labour government to pilot such a mentoring rollback of the state, but a genuine partnership between state programme over here, it should be contracted out to a range of and civil society.

The state needs a Self Determination Act

Anthony Painter is a writer, researcher and commentator. His next book – on the future of the left – is out soon.

The British state is a monster and it’s a consequence of its somewhere else. All of this matters far more in an atmosphere constitution. Ministerial responsibility, the centralised, unitary of fiscal constraint – better outcomes per £1 spent become state (in England) and departmental separation have left imperative. an inefficient, ineffective, unaccountable and wasteful state We need a radically different approach. Let’s just take apparatus. We should be getting far more for the £700 billion the welfare-to-work and support in work agenda. To get the we spend each year. best support for the individual possible, it is necessary to The scale of duplication is horrendous. This is a result marshal resources devoted to skills, childcare, tax credits, of departmental organisation and silos. The last govern- welfare support, the work programme, rehabilitation and ment’s Total Place strategy outlined how, in Leicester and addiction management, job centre plus, careers advice and Leicestershire, there were 450 face-to-face access points support, economic development and many other areas for service users, 65 call centres, all at a cost of £15 million besides. It is simply not possible to co-ordinate all this per year. Ministerial responsibility means that initiatives from the centre or to respond effectively to individual and proliferate and duplicate with different departments spend- local needs; democracy also suffers a deficit. For a Total ing resources in aiming to achieve similar things. The same Work approach, there has to be some co-ordinating local report found 120 projects or programmes delivered by 50 mechanism. providers across 12 funding streams to help people into work The approach up until now has been for central government in Lewisham. to push powers down at a painfully slow pace. Instead, why People are furious at public sector waste – and they are not put rocket boosters on the process? Give any local authority right. This is nothing to do with service providers and public or group of local authorities or Local Enterprise Partnerships sector workers, who are efficient. It’s simply a matter of the the ability to insist on being granted powers over resources British state and how it is structured. impacting their area, subject to basic minimum requirements Only minimal change can come from top-down efficiency and a commitment to improve outcomes. A Self Determination drives. As soon as one programme is eliminated, another Act of this nature could reverse the logic of the British state. initiative is innovated that creates more duplication5 and waste Anything else is just fiddling round the edges and will fail. People are furious at public sector waste – and they are right

Embed new entitlements within public services

Sophie Moullin is a Fulbright Scholar at Columbia University, and formerly a Senior Policy Adviser at the Prime Minister’s Strategy Unit

While England doesn’t have a written constitution, we do services have both clear national entitlements and more local have an NHS constitution. We value equity in public services input into services. nationally, even if we also want a say in services locally. Two years into the coalition, services seem suspended Pollsters repeatedly point to this ‘inconsistency’ in attitudes. somewhere in between local and national layers. Whitehall But the public are astute: the countries with best public has lost some of its power, but it’s not clear where it has gone

18 Fabian Review Summer 2012 8 policies for the next state to. Public sector professionals, let alone parents or patients, struggles. But access to evidence-based psychological thera- are unsure who is responsible for what, what the minimum pies remains limited. Culture as well as money is a barrier. provision is, and what can be done when services aren’t fair Some good employers have found there is a strong business or good enough. case for offering four initial counselling sessions; the NHS As well as funding cuts, confused accountability puts might well find so too. If their local health services fail to quality and equity at risk: look at the rise in waiting times and offer it, they should pay for those who need it to access fall in NHS satisfaction. But Labour can’t just say ‘we told these privately. you so’. Nor should they reverse reforms like free schools. Entitlements in education could be to a choice of extra- Instead, they should develop a few new entitlements within curricula activities decisive for social mobility. If the school public services. These should build-in means of direct redress fails to offer it, groups of parents should get the money to when they are not met, including enabling people to access source or run them otherwise. Entitlements don’t need to alternative services privately or as a community group. be complex or costly: to boost reading at all abilities, why While basics like waiting times and core curriculum and not do a deal with the makers of e-readers to give every police response times matter, entitlements also need to reflect child one? new issues. Unlike the coalition, Labour has to offer, unapolo- The paradox of localism is that the public feel empowered getically, something for families that are not ‘troubled’, and when their rights and roles, nationally and locally, are clear. pupils who don’t get free school meals. A few bold entitlements, with real means of redress, could Mental health is one example: many people are held shore-up support for public services, and create space for a back in work, their health and relationships by emotional meaningful local empowerment.

Two years into the coalition,6 services seem suspended somewhere in between local and national layers. Whitehall has lost some of its power, but it’s not clear where it has gone to

Commit to close a prison

Paul Goggins is MP for Wythenshawe & Sale East and a former prisons minister

Prevention is better than cure; in the long run it may also be inability to devise a more effective way of dealing with prison- cheaper. Yet as a nation we continue to pour vast amounts ers who receive short sentences. of public cash into expensive services that deal mainly with In preparation for the next Labour government we need to be the symptoms rather than the causes of social problems. more radical. There won’t be any extra money so new initiatives Shifting resources to upstream activity that can foster will have to be funded by phasing out some of the existing pro- positive behaviour remains one of our greatest public policy vision. Voters rightly want criminals to be punished – and those challenges. who pose a threat to safety and commit serious offences should We are all familiar with the arguments: healthier lifestyles get lengthy prison sentences. But the electorate also want less and more effective primary care would reduce the number crime and better value for money. So, we should be bold. of patients needing hospital admission; a greater supply of We should select one of our main city regions, make a clear affordable social housing would reduce the huge taxpayer commitment to close one of the prisons in that area – say subsidy paid to private landlords through housing benefit. in 5 years time – and use the projected savings to fund a But organisational change on the scale required takes time and substantial programme of preventative work and intensive those with a vested interest in the status quo often stand in community punishments. We should invite local authorities to the way. work closely with the prison and probation services, helping When I was the prisons minister, organisations would to co-ordinate and commission the additional provision of come to me with proposals for alternatives to custody that supported housing, drug and alcohol treatment, and training were imaginative and on the faces of it likely to be effective. for employment. But it was often impossible to fund them because most of the These new community based services would need to be money spent on offenders was literally locked up in the prison paid for in advance of the prison being wound down. Funds system. The average annual cost of a prison place is currently could be provided through Social Impact Bonds, designed just under £40,000. to cover the up-front costs as well as drive better outcomes. In government Labour expanded capacity – 26,000 new Because of the commitment to close the prison, investors prison places since 1997 – and focused on making prisons would be confident of getting their money back plus a higher more effective in terms of education, healthcare and reduced return if reoffending rates fell. reoffending. This had limited impact and the numbers in And if we can turn the tanker round in an area like this, prison continued to rise. Particularly frustrating was our why not on other key issues like health and social care?

7 Summer 2012 Fabian Review 19 8 policies for the next state Save our libraries

Dan Jarvis is MP for Barnsley Central and shadow culture minister

With schools, hospitals and social care all under pressure, them beyond the reach of many families. Meanwhile around why should we care about libraries? The case for them cannot 23 per cent of households still lack an internet connection, be made on the basis of nostalgia – and there is no question with almost half of them citing a lack of money or skills as the they have to bear their fair share of cuts. But libraries have main obstacle. a progressive mission that is often undervalued, and that is Libraries represent a fundamental principle of equality of more valuable than ever at a time of recession. Indeed, in access to information, one that is especially important in a many ways they embody the sort of society Fabians want knowledge economy. But they also represent a unique, truly to see. democratic space, to which everyone has equal access, where I believe libraries have a deeply practical impact. With you are not being sold anything, and where you go to pursue an estimated six million British adults functionally illiterate your own interests and development. That is something not – at a cost to the economy of up to £81bn – libraries’ well- even a school or hospital can offer. Libraries have an intangi- documented role in developing reading skills is not a luxury. ble but real impact as a visible expression of these values: they Nor is their work on digital access – they helped more than a are a signal of what sort of society we are, and the value we million people get online last year. And modern libraries help place on them is a signal of the sort of society we want to be. in a host of other ways – anything from Baby Rhyme Time But this does not seem to be the sort of society pursued by to Knit and Knatter programmes, by way of job clubs and the current government. For the Tories, the community role homework groups. of libraries seems to be mainly a chance to make savings and And that impact has a strong element of social justice. It shuffle off responsibility onto volunteers. Instead they should is no coincidence that library use and equality are closely be champions for the value of libraries: making libraries correlated around the world (though the increasingly unequal stronger, more connected, better at reaching out to those who UK is an exception). Illiteracy hits the least well-off hardest. don’t use them and more relevant to their needs. The idea that An astounding one in three British children does not own a libraries are irrelevant is nonsense; the idea they could have a single book: the cost of buying rather than borrowing8 puts greater impact is certainly not. More ideas from Stella Creasy, Sadiq Khan, Gisela Stuart, David Winnick and many more at Fabian Review Online at www.fabians.org.uk

FABIAN QUIZ

In this timely book, Joseph Stiglitz argues Please email your answers and your that inequality is both cause and consequence address to [email protected] of the failure of the political system, and or send a postcard to: moreover that it contributes to the instability Fabian Society of our economic system. Fabian Quiz Penguin has kindly given us five copies to 11 Dartmouth Street give away – to win one, answer the following London SW1H 9BN question: Answers must be received no later the price of Which economist famously argued than Friday 31st August 2012 inequality Joseph Stiglitz that the private pursuit of interest will lead to the well-being of all?

20 Fabian Review Summer 2012 THE FABIAN ESSAY

Socialism now As the Labour party moves towards the next general election and beyond, Kevin Hickson argues we need to remake the case for a socialism that is democratic; transformative; liberal; and uses the central state to address real issues

had in their socialist ideology. Since the 1970s socialists have lost confidence in their doctrine in the face of the neo-liberal Dr Kevin Hickson is Senior Lecturer in counter-revolution, despite some very effective work from the Politics at the University of Liverpool likes of Roy Hattersley and Raymond Plant in the 1980s. The third way of Blair and Tony Giddens could be seen as the final capitulation to globalisation and free markets. The banking crisis and recession should now instil a greater sense of belief in socialists having seen neo-liberalism fail so spectacularly. In 1974 Tony Crosland, the leading post-war Labour party Crosland pointed out that socialism is not a commitment intellectual, wrote his last major work, Socialism Now. Three to certain means, such as nationalisation, but to ends. The years later he was dead. The title can be meant in two ways. principal ends are equality, social justice, rights and free- The first is an analysis of socialism (or social democracy) in dom. The mechanism: democracy. The objective: individual contemporary conditions, an evaluation of the recent past and emancipation. Socialism, properly understood, is a liberating of the best way of moving forwards. This he did with a critical doctrine. It is not about the extension of state power at the evaluation of the Wilson government of 1964-70 and its lessons expense of individual freedom, nor is it puritanical. for the next Labour administration. But it can also mean an instant demand for socialism. Arguably it is once again the time for socialism now, in both senses of the term. The coalition It is essential that Labour’s electoral appeal is more government appears increasingly right wing, while the leader- ideological given the major economic shocks ship of Ed Miliband is now approaching its third year. We need to make the case for socialism once again. This over the past four years and the nature of Labour’s is informed by the strong belief that ends (values) are the electoral performance since 1997 proper basis for means (policies) if the Labour party is to, first, win the next general election, and then to be a radical government. There are three elements to such a reappraisal Firstly, equality was the principle which most clearly of socialism. The first is to provide a clear account of socialist defined socialists from their political opponents. Without a values, emphasising its liberal foundations against calls for commitment to equality, socialism had no meaning. Equality a communitarian or even a conservative basis. The second did not mean a complete equality of outcome in which the is to re-emphasise the importance of the central state as the duke had as much as the dustman, but it did mean more than essential mechanism through which socialism is realised, equality of opportunity where everyone had the same chances dismissing localism and arguments about the lack of govern- to compete for the highest grades and salaries. It involved ing capacity. The final element is that socialism understood the radical idea that markets produced unfair outcomes; in this way is inherently democratic and has implications for over-rewarding those who were successful in the market, and the political and electoral strategy of the Labour party today. penalising those who were not. Since we were not wholly responsible for our position in relation to the distribution of Socialist values resources then to fail to rectify such inequalities that were cre- As Tony Blair once said, although perhaps came to regret ated by the market would be an injustice. The most effective later, governments are rudderless without a clear set of way of rectifying these unjustified inequalities was through guiding principles. It is the commitment to clearly perceived redistributive taxation. The result was a more just society. ends which define radical governments. This was true of the The recent arguments about ‘pre-distribution’ – reforming Liberal government of 1906-14, the Labour government of the economy so as to avoid the creation of these unjustified 1945-51 and the Conservative governments of 1979-97. Each inequalities – is a welcome development but it doesn’t replace had a clear sense of purpose and mission. the need to redistribute: firstly, to stimulate economic activity One of the striking features when reading Crosland’s in a time of recession; secondly, to remedy already existing work, or that of other leading post-war revisionists such as injustices; and, also, to ensure that the market continues to act Hugh Gaitskell or Douglas Jay, is the confidence which they in a way which does not further infringe social justice. THE FABIAN ESSAY

Tony Crosland argued for ‘socialism now’. The time is right to do so again

Without the correction of unjustified inequalities then long as they are not subject to coercion – fails to provide an basic rights could not be realised. The disadvantaged would adequate understanding of freedom, which only socialists be more likely to under-perform in education, suffer from properly grasp: that without equality people cannot be ill health and die at a younger age. Moreover, equality and truly free. The aim is emancipation of all citizens within the social justice were required in order to extend individual societies in which they live. Such abstract principles provide freedom. Freedom only made sense in the positive use of that the most effective basis for a socialist approach to the major term; that is to say that unless someone had the means to give economic and social ills of the day. Appeals to community practical effect to their theoretical freedom then they were not and tradition – most recently associated with Blue Labour – in truly free. Some of the privileges of the fortunate may be lost contrast, are inadequate and can work against the kind of as a result of redistribution but the increase in the absolute society socialists wish to create. Blue Labour appears nostalgic and relative position of the worse off would extend their in its appeal to working class solidarity while traditions practical freedom. are constantly made and remade in light of changing social What is striking about this understanding of socialism and economic circumstances. The emotional and intellectual is its radicalism compared to the New Labour years, where appeal of liberal socialism is, therefore, far greater than that there was significant redistribution but the gap between the of Blue Labour. rich and poor widened as increases in salaries and bonuses at the top outpaced the fiscal gains for those at the bottom. New Socialism and the state Labour seemed all too willing to accept such inequalities in Another popular argument in recent times has been localism. the name of global competition or economic efficiency. They The central state is deemed distant, bureaucratic and authori- endorsed meritocracy, whereas socialists had traditionally tarian whereas people can be empowered in participatory rejected it. local communities. Also significant is the inherently liberal nature of socialism. It should be pointed out that this focus on localism, which The neo-liberal view of freedom – that people are free so has been a feature of Blue Labour and Progress’s Purple

22 Fabian Review Summer 2012 THE FABIAN ESSAY

Book, is an over-reaction to the ‘big society’ agenda and Keynesian analysis in the 1930s and successfully pitched to is futile and irrelevant in many of the central challenges the electorate in 1945 and again in 1966, with lesser victories facing Britain today. No doubt the local amateur dramatics in 1950, 1964 and 1974. society, community association or women’s institute are Often, however, the Labour party has appeared to lack full of well-intentioned citizens but it is impossible to find faith in its own ideology. This was true for many on the left ways in which they could resolve the big issues of the day, of the party in the 1950s and early 1980s who argued that it such as the economic downturn, regulation of the banks, the was better to wait in opposition for the inevitable crisis of eurozone crisis and climate change. Only the central state capitalism when they would be elected to power to introduce can do this. true socialism. New Labour, although in every other way This was the argument that I made in a recent contribution far removed from the Labour left, also shared this sense of to the debate with Roy Hattersley and it still seems incontro- pessimism that socialism could be popular on a regular basis. vertible to me. At no point did we say that the central state There was a trade-off between power and principle and must act in isolation. In some cases the central state should therefore socialism should be abandoned in order to attain work with regional and local government and in others with office. The 1992 general election was arguably the last time the international institutions such as the European Union, but act Labour party presented a socialist manifesto. it must. Nor does it mean that centralists oppose democratic reform of the state. Localists misunderstand the nature of power, which is Between 1997 and 2010 Labour lost five often less about ‘power to’ and more about ‘power over’. In million votes. The biggest loss of votes occurred order to gain power, someone else must lose it. Given that between 2001 and 2005 considerable power resides in large-scale corporations, such transfers of power can only be achieved by nation states. By taking power away from private sector business elites, the It is essential that Labour’s electoral appeal is more ideo- socialist state democratises economic power in the interests logical given the major economic shocks over the past four of the many. Crosland argued that such a transfer of power years and the nature of Labour’s electoral performance since had already occurred in Britain by the 1950s as the capitalist 1997. The best, if not the only way for Labour to win is to be class had lost power to the state, to organised labour and to explicit in its socialist commitment. A determination to match an autonomous managerial class. Many of these changes were the coalition’s spending cuts, as advocated by some, is not a reversed by Thatcherism and it is now necessary to consider viable electoral strategy, leaving aside the ethical arguments such issues once again. against such a policy stance. However, some would retort that the state cannot act Between 1997 and 2010 Labour lost five million votes. The because it has been hollowed out by processes such as glo- biggest loss of votes occurred between 2001 (already down balisation. This idea, it can be argued, had an important effect from 1997) and 2005, with four million votes lost under Blair on New Labour. The role of the state is limited to maintaining and a further million under Brown. Of these five million, the confidence of financial markets and attracting the inward only one million went to other parties. Some went to the investment of multinational corporations. We are, according Conservatives believing they had genuinely changed, while to globalisation theorists, in a borderless world where states others went to alternative ‘left-of-centre’ parties including lack any power to pursue a different course. However, even the Liberal Democrats, SNP and Plaid Cymru. Four million a cursory glance at the different state structures which exist abstained. The most likely explanation for this is that many today shows all to clearly that we are not in a one-size-fits-all voters became disillusioned by New Labour and would world and there are better models of capitalism which could therefore respond positively to a more radical Labour party. be followed by a Labour administration than the neo-liberal A Blairite emphasis on an appeal to the unmoveable United States – such as the more welfarist system in Sweden ‘median voter’ and to those suffering from ‘southern dis- or the German corporatist model with its emphasis on plan- comfort’ on the basis of opinion poll and focus group data ning and partnership between managers and workers. Both is inadequate, both as an electoral strategy and as a socialist systems have proven to be more resilient in the face of the belief in the capacity of the democratic transformation of the banking crisis than the British economy, which was danger- economy and society through the state. Democracy, as social- ously over-reliant on financial services. ists understand the term, is not passive but rather proactive, involving leadership and debate in the belief that socialism Socialism and the electorate can be made relevant and popular and that public opinion Apparently safe in the knowledge that history was on their responds to political argument. side and that the final victory of communism was inevitable, Marxist socialists did not feel the need to convince the elector- At moments of upheaval, such as the one we are now living ate of the moral superiority of socialism. However, even as in, there is an opportunity to recast the political agenda. early as the late 19th century, revisionists from Bernstein There is no inevitability that political opinion will move onwards have pointed out the failure of Marxist analysis to leftwards. Indeed, it may move to the right as people look for explain developments in capitalism, while the collapse of scapegoats to blame for the current difficulties. It is only by communism in eastern Europe showed that it was not the making the case for socialism that we can persuade people final stage of history. that the left offers a better alternative, with more attractive Lacking this faith in laws of history, democratic socialists values and sensible policies. Since it offers the only real have had to persuade the electorate that socialism offered answers to the major issues of the day it is socialism, as the way to a better society and superior form of economic outlined above – democratic; transformative; concerned with organisation. Socialism, understood in its non-Marxist form, real issues, which can only be tackled through the concerted is an inherently democratic doctrine. It involves making argu- action of the central state; and based on explicitly liberal ments to the electorate to gain their support and trust so that socialist values – that is the most appropriate basis for the socialism can be introduced through the state. Initially lacking Labour party as it moves towards the next general election a rigorous economic theory, the Labour party drew heavily on and beyond.

Summer 2012 Fabian Review 23 BOOKS

How much is enough? A fitting The authors identify seven basic Imagining a life question in these times of austerity, and ‘goods’ from which to determine what for the answer we are directed to a this ‘good life’ should look like: health, after capitalism lesser-known essay by the economist respect, personality, harmony with nature, John Maynard Keynes, The Economic friendship and leisure. In this mix there The good life isn’t about money Possibilities for our Grandchildren. In this is a lot to agree with, but overall it’s says Robert and Edward essay Keynes predicts that within one hard not to feel patronised. In a quest Skidelsky’s new book. But hundred years, by 2030, we will have against moral relativism their good life reached a point where we will no longer is already decided and it feels overly what they put in its place is too need to continue to grow to satisfy our prescriptive. But perhaps this is only to be prescriptive for Zoe Gannon needs and instead capitalism would be expected given they describe themselves a means to an end, the end being the as non-coercive paternalists. Added to this ability to satisfy our needs and step off the they seem too keen to privilege a middle treadmill. Robert and Edward Skidelsky class, western ideal while pretending it is ask us to imagine a life after capitalism; a applicable across the globe. I started to life of leisure. seriously depart from their vision of the “How Much is Enough? The Love of The first part of this book takes good life when they advocate marriage Money and the Case Keynes to town, and demonstrates in no over all other forms of union, stable for the Good Life” uncertain terms why his prediction has not or otherwise, and seem to imply that Robert Skidelsky come to pass, bringing in an improved sexual freedom is not a desirable state & Edward Skidelsky understanding of the difference between of affairs. This departure was complete wants and needs and the features of our when, in the penultimate paragraph of the Allen Lane, £20 capitalist system. The Skidelskys highlight book, the authors make perhaps their only the faustian nature of our deal with supposition without evidence: “Could a capitalism, painting Keynes as somewhat society entirely devoid of religious impulse naive to imagine that capitalism would stir itself to pursuit of the common good? shut up shop on its own. We doubt it”. I won’t be alone in finding This is a book littered with interesting this off the cuff remark somewhat insulting Zoe Gannon is head facts which illustrate the insatiable nature – to suggest that without a commitment to of research at the of capitalism. I’m sure I am not alone in my a higher being we cannot be committed High Pay Centre ignorance that Veblen goods, named after to the common good seems lazy to say the American economist, are the goods the least. desired because they are expensive and known to be so. There is a Russian joke which sums it up: one Russian oligarch Some of the sacred cows of walks up to another and asks how much his tie cost. The second duly answers “one hegemonic political thought thousand dollars”. “Unlucky” replies the are also challenged. The first, “mine cost two thousand dollars”. authors argue that growth Some of the sacred cows of hegemonic political thought are also challenged. The can’t be an end in itself, only authors argue that growth can’t be an a means to an end, so we end in itself, only a means to an end, so we should do away with GDP. What should do away with GDP should replace it? Not happiness: “to go from the pursuit of growth to the pursuit of happiness is to turn from one false Given the quality of some of Skidelsky’s idol to another.” Free trade is a “dogma” previous work before, this book is sadly rather than a means to economic growth: a disappointment. It feels in parts like it “No country has become rich under a really should be two books: the first an free trade regime.” Each argued with exploration of Keynes’ text and an analysis precision, an eye for detail and a plethora of why he was proved wrong, the second of sources. a philosophical exploration of what the With these sacred cows slain we move good life, or the good society really is. to the meat of the question: what is the These books sit uneasily together, but good life? They put aside Amyata Sen’s there is still much to agree with and much arguments for ‘capabilities’, as having that’s of interest, despite the assumption the means to achieve the good life is not that the good society is a religious one sufficient: the good life can only be defined undermining the book at the last. as ends, the outcome. They denounce The authors quote Keynes at one point, the notion of moral relativism, which has who stated that it is better to be “broadly been dominant for some time. It is not an right than precisely wrong.” In this regard individual quest for the good life, which they may have succeeded. Do they have each person defines on their own terms. all the answers? No, but they never Instead there is a definitive good way pretended to. What they have done, and to live your life, and for that matter a this should be recognised, is contributed bad way. to the debate we should all be having.

24 Fabian Review Summer 2012

NOTICEBOARD The fabian society today THE SUMMER IN REVIEW LISTINGS SUMMER 2012

NOTICEBOARD

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Leader of Scottish Labour and Welsh Labour, Nominees for both national and Young Fabian The following sentence shall be added to and the candidate for Mayor of London.’ elections should submit a statement in support the end of paragraph (i): ‘It shall similarly of their nomination, including information A new paragraph shall be inserted after be able to bar people from contributing about themselves, of not more than 70 words. paragraph (i) to read: ‘in any contested election editorial content.’ within the Labour Party where the society or Nominations should be sent to: Fabian Society In paragraph (ii) the word ‘meeting’ will be a local society or Young Fabian Group has a Elections, 11 Dartmouth Street, London replaced by ‘activities’. right to cast a vote on behalf of its members, SW1H 9BN. Or they can be faxed to 020 the society/group will only cast a vote after a 7976 7153 or emailed to phil.mutero@ Fabian Women’s Network ballot of all members who have membership fabian-society.org.uk. Please write the position A new bye-law shall read: addresses in the geography of the election.’ nominated for at the top of the envelope, fax or Membership of the Fabian Women’s subject line of the email. The closing date for Network shall be open to all national In paragraph (ii) the words ‘in exceptional nominations is 15th August 2012. members of the Society who are women. circumstances’ shall be deleted and the The affairs of the group shall be regulated following words added at the end: ‘or for by a constitution, amendments to which representatives to the National Policy Forum Subscription rates shall be subject to the approval of the of the Labour Party’ executive committee. The group shall be At the Annual General Meeting, members Paragraph (iii) shall be amended to replace responsible for the organisation of its agreed to increase the annual Ordinary rate the word ‘society’ with ‘executive committee’. own activities, which shall include the subscription by £1 to £38.00 (£36.00 for The second sentence shall be replaced publication of pamphlets and the holding those paying by direct debit). with: ‘In the case of Scotland and Wales, of schools, conferences and meetings. the Fabian nominee for this seat will be The Reduced rate subscription for students, retired nominated by the executive of the Scottish or and unwaged/unemployed members remains Scottish and Welsh Fabians Welsh Fabian groups respectively’ unchanged at £19.00 (£18.00 direct debit). A new bye-law shall read: Membership of the Scottish Fabian group Paragraph (iv) shall be deleted. and the Welsh Fabian group shall be AGM RESOLUTIONS open to all national members and fully- paid up members of local societies whose Fabian Fortune Fund Any full member, national or local, may membership addresses are in Scotland submit a resolution to the AGM. The deadline WINNER: Barbara Hawkins £100 and Wales respectively. The affairs of the for resolutions is 15th August 2012. They Half the income from the Fabian Fortune Fund two groups shall each be regulated by a should be addressed to the General Secretary goes to support our research programme. constitution, amendments to which shall at the address above or emailed to phil. Forms and further information available from be subject to the approval of the executive [email protected]. Resolutions will Giles Wright, [email protected]

Summer 2012 Fabian Review 25

The Fabian Society today

A recent survey of the Fabian membership is a reminder of the Society’s place as the British left’s most plural and open intellectual tradition, discovers Georgia Hussey

typical Fabian Society member fit into Georgia Hussey is a this pigeonhole? Labour blogger, who With an average age of 55, and worked for the Fabian a male to female ratio of 4 to 1, the Society on editorial and figures from our survey of 500 Fabian membership projects members did little to break the carica- ture. The majority of Fabian members are highly educated – 37 per cent The cartoon of a stereotypical British achieved master’s degrees, and more politician would always depict an people have gained a PhD than had upper class, white male of fifty plus. stopped education after secondary Even interest in politics is seen as the school. Over half of those who replied dominion of the older generations, with were over 60. voting turnouts showing waning interest in the under 25s. So how does the When asked at the start of 2011 whether the Fabian Society should view the Liberal Q. Do you think the Fabian Society should view the Liberal Democrats as political partners or adversaries Democrats as political partners or adversaries, members were closely split 60

However, in spite of a somewhat ho- mogenous demographic in some areas, 50 in others the typical Fabian proved hard to narrow down. Our members named professions from postman to architect, 40 taxi driver to CEO, and were evenly spread across income brackets. But in one area more than any other there proved to be no typical Fabian member: 30 56% their political views. When asked at the start of 2011 whether the Fabian Society should 44% 20 view the Liberal Democrats as political partners or adversaries, members were closely split: just over half saw the party as adversaries. Favourite 10 politicians were also varied, with those named spanning from Tony Benn to George Osborne (really), and

0 the Fabians were also divided by their Partners Adversaries membership of other Labour party organisations, half having joined at least one other, and half being solely

26 Fabian Review Summer 2012

Q. Which three policy areas are you most interested in?

Defence 5.9% Pensions 7.0% International Development 9.7% Transport 11.2% Constitutional Affairs 12.5% Housing 13.0% Crime and Justice 13.9% Local Government 17.8% Europe 18.3% Environment 18.9% Employment 19.6% Foreign Affairs 21.6% Health 31.9% Education 36.5% Economy 62.2%

0% 10% 20% 30% 40% 50% 60% 70%

Fabian. Though interest in policy areas fell mainly towards a concern for the economy, the Fabian members showed 7% 11% a range of policy priorities. When asked Secondary School which policy areas they were most Qualiﬁcations 14% interested in, 62 per cent placed the economy as a main concern, followed Undergraduate by education and then health at 37 degree per cent and 32 per cent. Interestingly, Q. What is your highest educational although 40 per cent of the survey 32% Masters members were retired, concern for qualiﬁcation? policy on pensions rated second lowest, at 7 per cent. PhD 38% Though interest in policy areas Medical/Legal fell mainly towards a concern for the economy, the Fabian members showed a range of

policy priorities Progress 14% So trying to describe what the Compass stereotypical Fabian member stands for seems to be an impossible task. Our members showed split views on Co-operative Party everything from the Lib Dems to their Q. Which other 15% interest in policy areas. However there LGBT Labour associated Labour was one interest shared by each survey party organisation are 51% member. When asked whether the LGBT Labour Movement you a member of? ability to influence the Labour party for Europe was a factor in the member’s membership, the overwhelming answer was a Socialist Health Association 13% ‘very important’. With a collective 6970 years of membership to the Labour SERA party between them, and an average membership of 21 years, it is clear that 1% None 2% the one stereotypical Fabian trait is 2% 2% commitment to the Labour party.

Summer 2012 Fabian Review 27

THE SUMMER Listings SUMMER 2012 IN REVIEW

What might an Ed Miliband government look like? The most comprehensive answer to that question so BEXLEY DONCASTER AND DISTRICT far arrives in a new Fabian book The Shape of Things Regular meetings. Contact Alan Scutt New Society forming, for details and To Come: Labour’s new thinking. Edited by John on 0208 304 0413 or alan.scutt@ information contact Kevin Rodgers on phonecoop.coop 07962 019168 email k.t.rodgers@gmail. Denham MP – who is Ed Miliband’s PPS, as well com as being a former cabinet minister and a member BIRMINGHAM of the Fabian Society executive committee – the All meetings at 7.00 in the Birmingham EAST LOTHIAN and Midland Institute, Margaret Street, 5 August. Summer Garden Party. 2.00 book features chapters from shadow cabinet rising Birmingham. Details from Claire Spencer onwards. Details of this and all other stars Rachel Reeves and Chuka Umunna, as well on [email protected] meetings from Noel Foy on 01620 leading centre-left thinkers like Will Hutton, Marc 824386 email [email protected] BOURNEMOUTH & DISTRICT Stears and Kitty Ussher. At the heart of the whole 26 October.Bridget Phillipson MP FINCHLEY collection is the recognition that our economy must All meetings at The Friends Meeting Enquiries to Mike Walsh on 07980 House, Wharncliffe Rd, Boscombe, 602122 be reshaped to deliver the responsible capitalism Bournemouth at 7.30. Contact Ian Ed Miliband has advocated. A more dynamic, Taylor on 01202 396634 for details or GLASGOW competitive and fairer economy will help reduce [email protected] Now holding regular meetings. Contact Martin Hutchinson on [email protected] the public costs of failing markets and help deliver BRIGHTON & HOVE public spending discipline. 14 July. Alex Sobel and Karin GLOUCESTER Christiansen on ‘Labour’s Next Majority Regular meetings at TGWU, 1 Pullman Project’. 5.15 at Friends Meeting House, Court, Great Western Rd, Gloucester. Ship St, Brighton Details of these and Details from Roy Ansley on 01452 all meetings from Maire McQueeney on 713094 email [email protected] 01273 607910 email mairemcqueeney@ waitrose.com GREENWICH If you are interested in becoming a member BRISTOL of this local Society, please contact Chris Society reforming. Contact Ges Kirby on [email protected] Rosenberg for details on grosenberg@ churchside.me.uk GRIMSBY Regular meetings. Details from Maureen CAMBRIDGE Freeman on m.freeman871@btinternet. Details from Kenny Latunde-Dada com [email protected] Join the Cambridge Fabians Facebook HARROW group at http://www.facebook.com/ Details from Marilyn Devine on 0208 groups/cambridgefabiansociety 424 9034. Fabians from other areas where there are no local Fabian Societies CAMDEN are very welcome to join us. The Fabian Society hosted a major one-day Contact Tristan Stubbs for details at conference looking at how Labour can win a [email protected] HASTINGS and RYE majority at the next election. The conference Meetings held on last Friday of each CARDIFF AND THE VALE month. Please contact Nigel Sinden at explored the messages Labour needs to win, the Details of all meetings from Jonathan [email protected] policies that resonate with the electorate and the Wynne Evans on 02920 594 065 or [email protected] HAVERING. organisational changes that will turn Labour into a • 4 July 9.45. Visit to City Hall to campaigning force without peer in British politics. CENTRAL LONDON obsever Members Question Time. The main event was Ed Miliband, who spoke of Regular meetings at 7.30 in the Cole • 17 July. Chris Leslie MP Room, 11 Dartmouth Street, London 7.30 at Havering Museum, High St, “the dramatic revelations” of the latest banking SW1A 9BN. Details from Giles Wright Romford, RM1 1JU crisis, and said that “for too long, we have had on 0207 227 4904 Details of all meetings from David an economy that works for a few at the top but Marshall email david.c.marshall.t21@ CHISWICK & WEST LONDON btinternet.com tel 01708 441189 not for most working people”. Miliband critcised All meetings at 8.00 in Committee Room, For latest information, see the website “short-term, fast-buck behaviour” in banking and Chiswick Town Hall. Details from Monty http://haveringfabians.org.uk Bogard on 0208 994 1780, email said that “values of integrity, responsibility and [email protected] HORNSEY and WOOD GREEN stewardship must be put back at the heart of the New Society forming. Contact David British banking COLCHESTER Chaplin – [email protected] Details from John Wood on 01206 212100 or [email protected] HULL Or 01206 212100 New Society. Hull Fabian Society Secretary Deborah Matthews and Chair CUMBRIA & NORTH LANCASHIRE Kevin Morton can be contacted at For information, please contact Dr Robert [email protected], on Twitter at @ Judson at [email protected] HullFabians or on 07958 314846

DARTFORD & GRAVESHAM ISLINGTON Regular meetings at 8.00 in Dartford 15 July. Summer Garden Party with Lord Working Men’s Club. Details from Stewart Wood, strategic advisor to Ed Deborah Stoate on 0207 227 4904 Miliband.3.00. Details from John Clarke email [email protected] at [email protected]

DERBY LEEDS Details for meetings from Alan Jones 7 July. Criminal Justice with speakers on 01283 217140 or alan.mandh@ including Linda Riordan MP and Mark btinternet.com Burns-Williamson.12.45 at Hebden Bridge Town Hall

28 Fabian Review Summer 2012

Listings SUMMER 2012

Details of all meetings from John Bracken SOUTH EAST LONDON at [email protected] • 18 July, speaker tbc 8.00 at 105 Court Lane, SE21 7EE LEICESTER • 2 September, 3.00–6.00. Summer Please contact Annie Moelwyn-Hughes on Garden Party [email protected] Details, contact Duncan Bowie on 020 8693 2709 or email duncanbowie@ MANCHESTER yahoo.co.uk Details from Graham Whitham on 079176 44435 email SOUTH WEST LONDON [email protected] Contact Tony Eades on 0208487 9807 and a blog at http://gtrmancfabians. or [email protected] blogspot.com A note from Local Societies SOUTHAMPTON AREA MERSEYSIDE For details of venues and all meetings, Officer Deborah Stoate Please contact Phillip Brightmore at contact Eliot Horn at eliot.horn@ [email protected] btinternet.com At this time of year, the listings page MIDDLESBOROUGH SOUTH TYNESIDE mentions many summer social events, with Please contact Andrew Maloney For information about this Society please on 07757 952784 or email contact Paul Freeman on 0191 5367 633 garden parties being popular. Most Fabians [email protected] for details or at [email protected] would probably think that an hour or three MILTON KEYNES SUFFOLK of Fabian fun with like-minded people was Anyone interested in helping to set up a • 14 July from 2.00 . Summer Garden quite exciting enough, but not the early new society, contact David Morgan on Party with speaker Baron Phillips of [email protected] Sudbury speaking on the international Fabians who, from 1907 for many years, situation in Iran. ran Fabian holidays, lasting a fortnight in NEWHAM • 20 September at 7.30. Richard Bourne Regular meetings. Contact Tahmina of the Socialist Health Associat ion on North Wales, briefly in Switzerland, the Rahman – Tahmina_rahman_1@hotmail. ‘Health and Social Care’ at Ipswich Lake District and latterly Surrey. com Library Lecture Hall Details from John Cook on 01473 Holidays were run with puritanical NORTHUMBRIA AREA 255131, email contact@ipswich-labour. management and clearly defined rules For details and booking contact Pat org.uk Hobson at [email protected] regarding meals, lecture times, lights out SURREY and time for phonograph playing. Alcohol NORTHAMPTON AREA Regular meetings at Guildford Cathedral If you are interested in becoming a Education Centre Details from Maureen was strictly forbidden and each day began member of this new society, please Swage on 01252 733481 or maureen. with Swedish Drill run by a gymnastics contact Dave Brede on davidbrede@ [email protected] yahoo.com teacher called Mary Hankinson. The fun TONBRIDGE AND TUNBRIDGE WELLS continued with fancy dress evenings, NORTH STAFFORDSHIRE For details of meetings contact John Any Fabian interested in joining a North Champneys on 01892 523429 charades, excursions and communal singing Staffordshire Society, please contact from ‘Songs for Socialists’. It’s easy to Richard Gorton on r.gorton748@ TYNEMOUTH btinternet.com Monthly supper meetings, details from mock at a century’s distance. However as Brian Flood on 0191 258 3949 Patricia Pugh remarks “for one month a NORWICH Society reforming. Contact Andreas WARWICKSHIRE year, it fulfilled some of the first principals Paterson – [email protected] All meetings 7.30 at the Friends Meeting for the founders, that socialists of their ilk House, 28 Regent Place, Rugby Details NOTTINGHAMSHIRE from Ben Ferrett on ben_ferrett@hotmail. should live in a community and work out Contact Dr Arun Chopra – arunkchopra@ com or http://warwickshirefabians. co-operatively their social, economic and gmail.com, www.nottsfabians.org.uk blogspot.com/ twitter @NottsFabians political philosophy”. Plus “the more exalted WEST DURHAM benefitted from meeting the criticisms and PETERBOROUGH The West Durham Fabian Society Meetings at 8.00 at the Ramada Hotel, welcomes new members from all areas of hearing the reservations of the less well Thorpe Meadows, Peterborough. Details the North East not served by other Fabian known, bringing them down to earth”. from Brian Keegan on 01733 265769, Societies. It has a regular programme email [email protected] of speakers from the public, community Today’s Fabians have to make do with and voluntary sectors. It meets normally meetings only, and occasional summer PORTSMOUTH on the last Saturday of alternate months Regular monthly meetings, details from at the Joiners Arms, Hunwick between garden parties which are, after all, June Clarkson on 02392 874293 email 12.15 and 2.00pm – light lunch £2.00. still opportunities to rub shoulders and [email protected] Contact the Secretary Cllr Professor Alan Townsend, 62A Low Willington, Crook, challenge points in a friendly and convivial READING & DISTRICT Durham DL15 OBG, tel, 01388 746479 atmosphere, even if it’s only for a couple For details of all meetings, contact Tony email [email protected] Skuse on 0118 978 5829 email tony@ of hours. skuse.net WIMBLEDON Please contact Andy Ray on 07944 SHEFFIELD 545161or [email protected] 19 July at 7.15. Lord Maurice Glasman on ‘Blue Labour’. The Quaker Meeting YORK House, 10, St James St, Sheffield. Regular meetings on 3rd or 4th Fridays Details and information from Rob at 7.45 at Jacob’s Well, Off Miklegate, Murray on 0114 255 8341or email York. Details from Steve Burton on steve. [email protected] [email protected]

Summer 2012 Fabian Review 29