FABIAN REVIEW The quarterly magazine of the Fabian Society Autumn 2012 / fabians.org.uk / £4.95

On another planet

Our new poll shows how we can bring politics back down to earth, with Katie Ghose, Peter Kellner, Lisa Nandy and Ed Wallis p8 ­ / Interview: “Opposition politics is about storytelling” Jon Cruddas tells Mary Riddell p14 ­ / Essay: Geoff Mulgan on the long-term economy p18

Contents

FABIAN REVIEW Volume 124—No.­ 3

Leader Andrew Harrop 2 Primary colours

Shortcuts Deborah Mattinson 3 How has year two been for Ed? David Lammy 4 Out of the trenches William Davies 5 Policy-making after the crisis Hazel Blears 5 Making our representatives more representative David Walker 6 Beware of zombies James Harkin 7 Heading for the ditch?

Cover story Ed Wallis 8 Another planet

Peter Kellner 11 Becoming real Katie Ghose 12 Straight talking could get people tuning back in Lisa Nandy 13 Celebrate debate

Interview Mary Riddell 14 What’s the story?

Policy pitch Victoria Barr 17 A rainy day fund

Essay Geoff Mulgan 18 Engaging with the future

Books Marcus Roberts 22 The secrets of power

24 Fabian Fringe Guide

26 Fabian Society section

fabian review fabian society Events and Partnerships Local Societies Officer, Fabian Review is the quarterly journal of 11 Dartmouth Street Assistant, Melanie Aplin Deborah Stoate the Fabian Society. Like all publications of London SW1H 9BN the Fabian Society, it represents not the 020 7227 4900 (main) Editorial Finance and Operations collective view of the Society, but only 020 7976 7153 (fax) Head of Editorial, Ed Wallis Head of Finance and Operations, the views of the individual writers. The [email protected] Editorial Assistant, Phil Mutero responsibility of the Society is limited to www.fabians.org.uk Sofie Jenkinson approving its publications as worthy of Media and Communications Fabian Women’s Network consideration within the Labour movement. General Secretary, Manager, Richard Speight Seema Malhotra, Andrew Harrop [email protected] Editor, Ed Wallis Deputy General Secretary, Research Printed by DG3, London E14 9TE Marcus Roberts Senior Researcher, Natan Doron Designed by Soapbox, www.soapbox.co.uk Researcher, Rob Tinker Events and Partnerships ISSN 1356 1812 Head of Events and Partnerships, Membership [email protected] Olly Parker Membership Officer, Giles Wright

1 / Volume 124—No.­ 3 Leader © Kenn Goodall / bykenn.com © Kenn Goodall / bykenn.com Primary colours Rather than interesting ideas, Labour must set out a handful of signature proposals that exemplify how and why it would govern—Andrew Harrop

t’s become well known that Labour’s solid lead in already amassed. Instead Labour must do two things: re- the opinion polls is down mainly to the backing learn the language of the doorstep and prove it has a plan I of left-leaning former Liberal Democrats. In 2012 for Britain. Ed Miliband has proved he can unite socially liberal, Too few people will vote Labour if the party presents egalitarian voters and that there could be enough of them itself simply an empty vessel for their discontents with a to carry him to Downing Street. shambolic government. Ambivalent voters will only be No doubt if the Lib Dems remove Nick Clegg before won round in sufficient number by a positive alternative 2015 some former supporters will return. But it would and purposeful leadership. This requires Labour to offer take a huge reversal for the Conservatives to end up with substantive promises not just interesting ideas, fascinating a majority. In 2010, after all, they could not win despite a as ‘pre-distribution’, ‘the squeezed middle’ and ‘responsible seven per cent lead over Labour. capitalism’ may be to those of us who attend Westminster Commentators have been slow to catch up with the seminars. electoral maths, but in the year ahead the media will Instead, in the year ahead Labour must set out a have to learn to write of Miliband as a conceivable, even handful of big, signature proposals that exemplify how probable, prime minister. The Labour party however must and why it would govern, what marks it out from the not settle for the script the pundits are busy writing, where coalition and how people’s lives would change. The it limps into office as a minority party dependent on candidates for Labour’s plan include free childcare, a others to govern. national care service, a living wage, a job guarantee Instead in the 12 months ahead Miliband must turn his scheme for the young or a huge housebuilding attention to potentially sympathetic voters he’s failed to programme (each with credible funding plans attached). win so far, and there are plenty of them out there. Fabian Miliband’s model must be 1945 or 1979, when the research found that a quarter of British adults did not vote winning party entered the election with a clear policy Labour in 2010 but are prepared to consider the party programme which captured the public zeitgeist but also next time. Encouragingly, their views on the economy and heralded a rupture with the past. public services are much closer to those of Labour than Alongside that, Labour needs to reassess how it Conservative supporters. But only one-in-three of this group looks and feels. Today its spokespeople still sound like currently back Labour despite Miliband’s lead in the polls. middle-ranking ministers, the parliamentary party a tribe Winning a convincing working majority will depend of professional politicians. To reconnect Labour must on attracting more of them over, especially two types of reimagine itself as an insurgent force speaking for the ‘Labour-ambivalent’: people who didn’t vote at all in 2010 people, not a political caste speaking at them, as our new and floating voters who liked David Cameron but not his YouGov poll makes clear elsewhere in this magazine. party. Ed Miliband and those around him understand that the These potential supporters are the least ideological practice of Labour politics must change. Now to make it of voters so the answer is not a turn to the right, a move happen he must order his MPs to get out of Westminster, which would simply alienate the support Miliband has organise locally, listen better and speak ‘human’.

2 / Fabian Review Shortcuts

Smith – having started on that downward explain his stronger performance amongst path, continued into freefall, while the more women voters, who tend to place greater successful ones – Michael Howard and David premium on these qualities when judging Cameron – began to recover. Ed Miliband’s a leader. As might be expected for a Labour favourability ratings through his first year leader, Ed is ahead on ‘putting the interests followed this familiar pattern, dropping of working people first’. from +9 per cent to -17 per cent. The critical However, the poll reveals two striking HOW HAS YEAR TWO question now is whether he has managed to findings. The first is that the highest score BEEN FOR ED? reverse the trend. for all three party leaders when the public Ed Miliband has made headway At first sight, the data is reasonably are asked to rate them against the most in polls this year but needs to set out encouraging. Although Miliband’s year has salient leadership criteria is ‘none of the been mixed, and he suffered a reputational above’. It is the battle to be the least disliked his stall beyond Westminster dip in January, he has made an admirable rather than the most popular. Ed is winning —Deborah Mattinson recovery and a poll of polls shows a small this battle but he now needs to move in to a improvement year-on-year. At the time of more positive place. writing, the most current poll, ICM for The Guardian shows the favourability deficit Fewer than half say that 2012 has This time last year, my BritainThinks’ reduced to -13 per cent. And he is consistently colleague, Ben Shimshon, and I wrote a polling ahead of David Cameron who has been a good year for themselves piece for the conference Fabian Review moved into an entrenched negative position. and their families. Almost a third say where we identified year two as a critical But the devil is in the detail. Our recent that it has been a bad year year in the life of the opposition and its survey has repeated questions first asked leader. We pointed out that, whatever their a year ago, rating each leader against key popularity when they first took office, all attributes. Cameron ‘wins’ on being a good The second observation is that, while leaders of the opposition since Tony Blair communicator, and on being decisive. He the Westminster Village scrutinises and have taken a similar, downward trajectory in also leads on ‘does what he believes to celebrates (or bemoans) small changes up their first year in the job. be right, even when those decisions are or down, voters are much more consistent. In year two, the least successful unpopular’. By contrast, Miliband’s strengths Repeating these rating questions year-on- candidates – William Hague and Iain Duncan lie in empathy and listening – results that year shows no significant change for either leader. People are slow to judge and even slower to change their minds. Few initiatives “Miliband’s strengths lie in empathy and listening” from either side have cut through. Q. Please select up to three characteristics which you think apply most to Ed Miliband More in depth qualitative research explains why. Most voters still do not know August 2011 June 2012 what either leader stands for. Cameron has failed to convey his mission beyond dealing with the deficit (and he is not seen to have 36% 35% succeeded at that). Miliband, while making headway in neutralising his negatives from January, still has much to do in setting out 24% his stall beyond Westminster. 20% Last year we stressed the importance of showing leadership on the difficult 14% issues that were dominating ordinary voters’ 12% 12% 12% 11% 11% lives: jobs, prices, schools and hospitals. 9% 9% 10% 8% 7% 7% 7% They still are. People are not translating 6% 6% 5% 5% 6% 3% 4% 3% 4% Olympics feel-good into a positive outcome for themselves and their family. Fewer than

y half say that 2012 has been a good year for ve

geti c themselves and their families. Almost a third iction t know agmati c Is tough say that it has been a bad year. They feel let Is decisiv e Is ener Don’ Has a visio n Is pr down and disillusioned by all politicians. Has integrity Has empath Is charismati c Has co nv That is the challenge for year three. F Is a good listener eat communicator None of the abo Deborah Mattinson is Founder Director of Research by BritainThinks, July 2012 Is a gr BritainThinks

3 / Volume 124—No.­ 3 Shortcuts

Out of the trenches Labour might win a few skirmishes trying to trip up the coalition, but won’t win the enthusiasm of the electorate—David Lammy

I am not a pessimist, but scratch away at the patina of Olympic greatness and there is a nation stagnating. For at least the near future, the Great British public will have to endure soaring unemployment, shrinking public services and plummeting real wages. The politics of insecurity is nothing new. For the past thirty years, governments have had to manage Britain into a more globalised world, with more insecure terms of employment, identities faded in the face of increased immigration and more politics will make a difference. We can no History tells us we cannot win without it. atomised communities. But rather than build longer expect to stand on the soapbox in Attlee witnessed the colossal destruction of lasting solutions, successive governments town centres or pitch up on cuddly breakfast war and promised to build a ’new Jerusalem’ have instead opted for a grand bargain with TV and expect the audience to patiently for peacetime. Wilson spied that Britain was the electorate where all the downsides of listen to political posturing. We have to earn on the cusp of modernity and spoke of the a more global world were more than met the right to be heard. ’white heat of technological revolution’. by increased consumer power and rising Blair surveyed a country transformed after disposable incomes. In Westminster, the Labour 18 years of Thatcherism and proclaimed that The financial crisis abruptly ended economic efficiency and a strong society the bargain and, meanwhile, the political party plots new ways to bring could no longer be mutually exclusive. class has floundered. The failure to lift the down the government and the The old adage that oppositions do not win country out of the doldrums is at the stem of dynamics of coalition politics elections, governments lose them does not collapsing interest in politics. What matters make it a daily sport hold true for the left. Each successful Labour is what works, and we’re not working. opposition captured the imagination of a There is no light at the end of this tunnel public desperate for change and they won and those responsible for the crash remain The danger is that we think we can because they forged a purpose fit for its unreformed, unpunished and unrepentant. get away without trying. In Westminster, time. What is certain is that we cannot afford Politicians appear to preside over a rigged the Labour party plots new ways to bring to go to the country with a manifesto that society where those at the very top line their down the government and the dynamics of reads like a telephone book or a message as own pockets at the expense of everyone else. coalition politics make it a daily sport. In that feeble as ‘we will cut enough to be credible At first glance, this should herald a vein we have shown some leg to the Liberal but not so much as to appear cruel (where prosperous era for the centre-left, whose Democrats by denouncing some of the more possible)’. self-declared project is to shift power, wealth illiberal policies of our time in government. The public expects its oppositions to be and opportunity into the hands of the many. We have teased out division in Conservative strong, united and effective. It wants its Indeed, Ed Miliband has skilfully (and ranks by publicly flirting with the idea of representatives to understand and articulate bravely) carved out a message that voices an in/out EU referendum. We even found their anger of the inaction of the past few the anger of the electorate with those at the a technicality to stop us supporting Lords years. That we have done and we have done top and he has done it with conviction, over reform in order to strike discord at the heart it well. But they also yearn for a narrative phone hacking and LIBOR fixing. of the coalition. This is the day-to-day life of that isn’t premised on managed decline Yet that anger is difficult to harness when politics in the trenches of the opposition and – they want to hear a plan for national so many of the public have lost faith with the Parliamentary Labour Party does it well renewal. We are living through the most the entire political system as well as with – the abandoned boundary review being its difficult years of my lifetime politically, the present government. Fewer than one latest scalp. We may win a few skirmishes in socially and economically. We have to rise to in four believe that our current system of the inside pages of broadsheet newspapers the moment. F government is in any way effective and less but we will not win the confidence or the than a third believe that involvement in enthusiasm of the electorate. David Lammy is MP for Tottenham

4 / Fabian Review Shortcuts

history, ‘long wave’ theorists of capitalist to be propped up and defended, and those development have noted certain rhythms institutions that require critical and political and commonalities of how growth and transformation. Uncertainty is potentially stagnation alternate. But we still don’t know exciting, if it can be wedded to hope. But when or on what basis we will be able to say meaningful jobs, relationships and civic that this economic crisis has ended. interactions are those which are reasonably Policy-making after Thirdly, ideas and language suddenly predictable or guaranteed – if such predictions take on a new significance: part of the and guarantees can be honestly made. F the crisis uncertainty that is generated by a crisis is Our current condition is one of in how to describe, interpret and measure William Davies is Assistant Professor, Centre for clinging on to security blankets, events. Narratives suddenly compete against Interdisciplinary Methodologies, University of each other. Again, politicians have an Warwick. www.potlatch.org.uk while no longer believing that they opportunity here. How a crisis is framed is will keep us secure—­ William Davies one factor in how it ends up being resolved.

We still don’t know when or on

Economists have discovered a new fondness what basis we will be able to say for pointing out that many situations are that this economic crisis has ended ‘uncertain’, and not simply ‘risky’. This distinction concerns whether or not the What all the new doyens of uncertainty future can be subjected to mathematical, tend to miss, however, is the simultaneous probabilistic calculation. Hence, credit rating banality of crises. Clearly the world is not agencies claim to know from studying in so much upheaval that it has ceased to Making Our data what the risk is of a given company function altogether. Money still changes Representatives More defaulting on its debt; by contrast, the hands. Shareholders still receive dividends. Representative economic returns of much research and Public services are still running. Regulators It’s no coincidence that fewer people development are uncertain and impossible still regulate. This is because failed to model. institutions rarely fail altogether, at least not are interested in a politics that is Times of economic crisis, as we are unless (as with a bankruptcy) this is publicly dominated by people they cannot currently living through, appear to render affirmed. relate to—Hazel Blears uncertainty endemic. Profound questions Most situations are both risky and are posed regarding otherwise unquestioned uncertain. Risk is not something that resides institutions, such as how firms are to be in things themselves, but a mathematical structured, what is the appropriate role of tool that people use to impose some Over recent years parliament has become the state, how money is to be produced. coherence on an otherwise haphazard dominated by a political class, the dominance Politicians can – and eventually must world. Our current malaise resides in the of which has helped to put people off – contribute to this more fundamental fact that many tools of risk assessment politics. They see Westminster as being scepticism. Ed Miliband took a gamble in are both discredited by this crisis, and yet divorced from real life, and they believe – his 2011 conference speech by criticising a necessary for the day-to-day functioning often correctly – that the things we discuss in whole form of capitalism, radically expanding of institutions. The notion of risk is central parliament do not reflect their concerns. the sphere of policy debate as he did so. It to how modern societies understand the The reason that debate in parliament is could have backfired, had it been interpreted interaction of the micro and the macro. often out of step with the public is because as an appeal to state socialism. Instead, rival For instance, nobody would speak of heart the people who make up our legislature are political leaders scrambled to occupy the disease as mere ‘bad luck’ any longer. On the not representative of the public as a whole. fresh territory that this speech opened up. other hand, the financial crisis was entirely The growth of the Westminster Village – Politicians willing to engage in such unforeseen by risk analysis, and confidence including think tanks and lobbyists – has debates must understand a few salient in experts to keep us secure is low. Our exacerbated this problem. features of these historic crises. Firstly, policy condition is one of clinging on to security In government I warned of the creation is only one of many contributors to how they blankets, while no longer believing that they of a “transmission belt,” by which I meant develop and then resolve themselves. One will keep us secure. the development of a career route in which reason why Miliband was courageous in The crucial political judgement in 2012 someone begins working for an MP, before posing a challenge to finance capitalism was lies in gauging exactly how much security becoming a special adviser, then being that no government or policy programme and insurance can be reasonably offered. On parachuted into a safe seat and finally can easily or quickly resolve its various the one hand, institutions are undergoing ending up serving in the cabinet. problems. He made himself vulnerable to a legitimacy crisis, and are ripe for political In 1970 just 3 per cent of our MPs came the charge that he lacked any alternative transformation. On the other, institutions are from a political background; by 2010 this programme, as indeed we mostly all do right the only defence against fear, and work best has risen to 24 per cent. Whilst political now. But unless the problem itself is named, when they are not constantly questioned. insiders have been using their networks then there can be no political response. As with the efforts to divide ‘good’ banking and knowledge to find a passage into safe Secondly, the duration of crises is also from ‘bad’ banking, politicians need to draw parliamentary seats, the consequence has radically uncertain. Looking back over a line between those institutions that are been the decline of the working class MP. >>

5 / Volume 124—No.­ 3 Shortcuts

>> 2010 saw a rise in the percentage of people from all backgrounds are given the the cost of being a candidate can run past MPs educated privately for the first time opportunity to stand for parliament. £40,000. To meet this, Labour must consider since 1983. Whilst the easy argument to To encourage working class people to setting aside a fund to support those from make is that this is a result of more Tory MPs become MPs Labour needs to change the disadvantaged backgrounds. The Speaker’s being elected, the reality is that the Labour emphasis of selection processes. Currently Conference report suggested this on a cross- party is hardly a beacon of equality. selections focus on management and party basis, but the reality is that progress It’s no coincidence that fewer people are communication skills – inherently middle- has stalled and Labour should be taking interested in a politics that is dominated by class. This focus can put off people from the lead on this issue. We claim to represent people they cannot relate to, and a lack of working class backgrounds, and we need the working class – we should let them working class candidates helps to explain to remember that these skills can be taught represent us too. why turnout is so low in many working class and learnt. There is no reason that the Building a more representative politics is communities. The Hansard Society found current crop of MPs should not be tasked essential if we are to be re-elected. We need that people feel more comfortable electing with mentoring would-be candidates to to show the public that we are in touch with someone they think is like them, and the ensure that we have a more diverse range of their concerns, are acting on the things that divide between the public and politicians is members of parliament. they believe are important, and that we will growing. govern on their behalf. This means looking Last year I set up the Speaker’s We need to show the public that at the lack of affordable housing, care for Parliamentary Placements Scheme to ensure the elderly and people being forced to work that people from working class backgrounds we are in touch with their concerns, multiple jobs to make ends meet. This can who are interested in politics can have the are acting on the things that they only happen when parliament looks and chance to work in parliament. This provides believe are important, and that we feels more like the people it is supposed support and opportunities to those who will govern on their behalf to serve, and Labour must lead the way by are passionate about politics but wouldn’t breaking down barriers facing working class normally have the opportunity to put that candidates to build a politics that connects passion into practice. The cost of selection and election with voters in 2015. F This is a good start, but we need to look campaigning can also be extortionate – at our selection processes to ensure that the Speaker’s Conference estimated that Hazel Blears is MP for Salford and Eccles

introduction of the very market norms that contractorisation, commissioning, localism, have imploded in banking and finance; we devolution, performance related pay, ‘lean’, still see veneration of ‘choice’ when public ‘Six Sigma’, ‘total quality management’, provision rests on necessary uniformity; public value, choice … transformation, we hear attacks on professionalism when ‘governance’. one of the strengths of the public sector In their study of private sector Beware of zombies is to muster expert knowledge for public management Jeffrey Pfeffer and Robert benefit. Sutton (Hard Fact, Dangerous Half Truths Many ‘new’ ideas in the public What is worse is that many of the ‘new’ and Total Nonsense, 2006) describe the sector turn out to be old hat tricked ideas turn out to be old hat tricked out in neophiliac condition. Related to the desire out in new finery—David Walker new finery. Because the public sector has, for new is the desire for big – the big intellectually speaking, been on the back idea, the big study, the big innovation. foot for so long, it has been unable to build Unfortunately, they rarely if ever happen. up resistance to a peculiar class of parasite, Even in the physical sciences, close In recent years the public sector has been the zombie idea. The phrase was coined by examination of so-called breakthroughs attacked by a virulent bug called neophilia, Professor Alan Maynard of York University nearly always reveals painstaking, defined in my medical dictionary as a for how, especially in the health service, old incremental work that finally is recognised fixation with the new, the trendy, the discredited ideas about competition keep as a big insight. ‘transformative’. The dictionary adds: reappearing despite empirical evidence, Public services have to adapt, to neophilia is a disease preceded by acute despite trial and failure. changing demography, to financial symptoms of panic and stress. Of course conventional wisdom opportunity and constraint. But let’s be The cause is a loss of intellectual should be challenged. But on the basis suspicious of breakthrough ideas and confidence, a failure of nerve – a fear of experiment, empirical caution and a realistic about timetables for change. Bright (on the part of the left) that we are on profound understanding of the inherent ideas are welcome but let’s save the ‘silver the wrong side of history. The disease complexity of public sector organisations bullets’ for the Lone Ranger and Tonto. F seems to persist, despite the collapse not subject to democracy, fiscal control and just of markets but of the ideas base on often hyper active multiple accountability. David Walker is contributing editor to the which market ideology has subsisted. So That’s what has been missing as the Guardian’s Public Leaders Network and we still hear ‘reform’ being touted as the public sector has sucked up to gurus, former director of public reporting at the Audit solution for public sector ills, meaning the consultants and … think tanks. Examples: Commission

6 / Fabian Review Shortcuts

Heading for the ditch? If Labour spends too much time in the middle of the road, it risks getting run over—James Harkin

As mainstream culture crumbles and the internet gives us the chance to bunch around the stuff we really enjoy, many of us are congregating in enthusiast communities around everything from coffee to quilt- making. Let loose in these ‘communities’, our initial curiosity is massaged by other enthusiasts into something approaching fandom. Perhaps the best thing about enthusiast communities, however, is that they only © Young Dave bother to flock around stuff that they really, really love – which means that the whole None of this could have happened Electoral Commission, Labour membership heap of stuff in the middle that no-one is were it not for the fraying of the middle fell to 156,000 in 2010. really mad about, everything from bog- ground. In my book Niche I grapple with The Labour party had deliberately opened standard Hollywood films to bog-standard the “missing middle” in all its guises – the its mouth wide to gobble up a new generation coffee shops, is coming under threat. problems which beset middlebrow culture, of party members, but no sooner had it caught Starbucks, for example, is losing ground to the disappearance of a certain kind of them than they began to wriggle away. As small independent coffee shops on both department store retail, the crisis of the much as department stores like Woolworths, sides of the Atlantic and is trying to do mainstream media and the slow death political parties had spent years edging their something about it. So are middle-of-the- of mainstream political parties. It’s only way towards the middle ground in search road Hollywood films that no one can be by understanding the changing political of the widest possible audience. No sooner bothered to tweet about. economy in which institutions operate had they arrived there, however, than they that we can hope to reinvent them for a realised that they’d become perilously difficult Like beached whales, even if they new era. It’s clear, for example, that the to distinguish from one another – that they’d last half-century has seen a steady, painful begun to look generic. And that, in a way, only could swallow an audience of decline in the membership of British made things worse. Like beached whales, floating voters whole, from now on political parties. Since the zenith of their even if they could swallow an audience of it was going to very difficult to hold popularity in the 1950’s, for example, the floating voters whole, from now on it was them down two major British political parties have going to very difficult to hold them down. undergone a relentless spiral of decline. When Ed Miliband offered membership of Between the beginning of the 1960’s and the Labour party to anyone under the age of Something very similar is happening in the end of the 1980’s, the percentage of the 27 for a penny, he was implicitly recognising politics, too. In the early stages of Barack British electorate marshalled in mainstream that mainstream political parties have become Obama’s campaign for the presidency, political parties fell from 9.4 per cent to cheap and generic – the political equivalent of it would be difficult to over-estimate the 3.3 per cent. When Tony Blair won the a supermarket own brand. extent to which his team circumvented leadership of the Labour party in July If the Labour party is really going to the traditional structures of the American 1994, he mounted a spirited campaign to renew itself, it can’t rely on selling itself Democratic party in favour of cultivating a reverse the tide. For the first four years his cheap, reaching out to unreliable intellectual core group of followers who really believed campaign to recruit new party members mavericks, or sending out messages on in his message. By spending time talking looked like a stroke of genius, and Twitter. Somehow it’s going to have to grow to each other around a website, so-called succeeded in swelling party membership a fresh new political niche. F ‘Obamamaniacs’ were able to reinforce each by 40 per cent. The problem was that most other’s loyalty to the campaign and motivate of the new arrivals felt no real affinity with James Harkin is Director of the strategic research themselves to grow the flock. Then came the the Labour party, and most of them left agency Flockwatching. His book Niche: The Tea Party, another mediated interest group soon after it entered government in 1997. Missing Middle and why business needs to wreaking the same kind of havoc in the From a relative peak of 405,000 in that year, specialise to survive, is newly published in upper echelons of the Republican Party. according to figures it submitted to the paperback by Little, Brown

7 / Volume 124—No.­ 3 Another planet

Before we can persuade non-voters that politics is worth saving, it needs to say something to them about their lives writes Ed Wallis

Ed Wallis is Editor of the Fabian Review

here is a danger that politics is becoming detached “I don’t feel that I would be able to keep up my side of from people at the very time they need it most. With conversation” Ttough economic times leaving lives increasingly in- secure, the democratic process should be a vehicle through “I don’t think a member of parliament would want to speak which people’s concerns can be voiced and addressed. But to me anyway, they’re probably far more intelligent than me. politics is no longer seen as having any answers to the big It’d be awkward conversation” questions people are asking. Yet our new YouGov polling – featuring the first detailed “I do not feel we are on the same level” study of non-voters since the last general election – sug- gests it would be a mistake to think that people have given “Would find it awkward, wouldn’t know what to say” up entirely on democracy; but the disconnection has deep roots, probably unreachable by the structural reforms our We are sailing into uncharted emotional waters: a sense leaders tend to offer as solutions. What’s rotten is the culture of sadness and confusion, a personal inferiority to the rul- – the way our parties do politics. ing class that makes people ill at ease. The usual sense that Because people so rarely interact with politicians, we people think MPs are all lying scumbags can be found, for asked them to imagine a situation where they did. If you sure, but the theme that dominates is of a people trampled were on a long train or plane journey and an MP sat down underfoot by their political culture. next to you, would you talk to them? 44 per cent said no and These verbatim responses are augmented by our wider only 49 per cent said yes. This was a much more negative poll. We listed some positive attributes of politics and while response than for other professions: 72 per cent would be there were some takers, by far the biggest winner was ‘none pleased to sit next to a well-known actor or pop star, 68 per of the above’ (38 per cent). As you would expect, this was cent a doctor or teacher, and 63 per cent an electrician or even higher (44 per cent) among non-voters. Only 7 per cent plumber. One slither of satisfaction for MPs is that they are of non-voters agreed ‘most MPs are basically honest’ com- losing the race to the bottom of the public’s affections: bank- pared to 20 per cent of those who voted for one of the three ers were the least appealing travelling companions of all, main parties. 4 per cent of non-voters chose ‘most MPs have with only 42 per cent wanting to continue the conversation. a good feel for what is happening to the people who live in What does this tell us – that members of the public their constituencies’, half as many as voters. would rather while away a journey with a pop star than a A list of criticisms of the way we do politics proved much politician? So far, so unsurprising perhaps. But we asked a more popular. There was a fairly even spread across state- dedicated sample of non-voters – those who sat on their ments covering our adversarial political culture (36 per cent hands in 2010 – for the reasons behind their responses and agree ‘Politicians are more interested in scoring political in so doing, revealed something about how this large group points than doing the right thing’), the professionalisation sees the political class. of politics (34 per cent agree ‘Most MPs have too little experi- There is anger: “they are all idiots who have no clue ence of the real world before they go into politics’) and the about real life”; “they are all beneath contempt”; even rarefied nature of the political class (31 per cent agree ‘Poli- “I do not talk with fuckwits on planes”. Apathy is every- tics is a game played by an out of touch elite who live on an- where: the most common responses cited boredom or lack other planet – politics isn’t made up of people like me’). The of interest as the primary reasons to avoid engagement. But biggest winner by some distance, however, was that ‘politi- beyond this lies something more subtle, maybe more fun- cians seldom give straight answers to straight questions on damental. There is a pervasive sense of separate lives, of the radio and TV’, with 57 per cent agreeing. MP inhabiting a different world. Even if you wanted to get This is revealing. People often say politicians lie all the to know it, you wouldn’t be able to understand it. time. They clearly don’t, but the fact that they often seem

8 / Fabian Review Cover Story

Here are some criticisms that some people Which one or two, if any, of the following make about politics and politicians in Britain might make political parties seem more these days. Which two or three of these, if any, relevant to your life? (%) do you agree with most strongly? (%)

TOTAL NON VOTERS TOTAL NON VOTERS

Politicians seldom They stopped arguing give straight answers for a minute and tried to straight questions to work together to solve 57 on radio and TV 48 44 the big issues of the day 38

Politicians are more They seemed less interested in scoring eager to win my vote political points than 24 and more eager to 25 36 doing the right thing 32 solve my problems

Most MPs have too They looked more like the society little experience of the real they are supposed to represent: world before they go more working class, 34 into politics 22 19 more women, more ethnic 13 minority MP Politics is a game played by an out of touch elite who They used less jargon live on another planet and spoke in the same 31 – politics isn't made up of 29 18 language as everybody else 17 people like me Politicians spend too They listened to me more much time arguing with rather than told me each other, and too little 29 27 16 what to do all the time 13 saying where they agree

Politicians just want Their policies were to win my vote – easier to tell apart they don't care about 26 27 14 from one another 15 my problems

Politicians usually They were less ignore the views of in uenced by the media 20 people like me 18 14 10 None of these would 4 None of these make political parties 7 8 relevant to my life 11 7 Don’t know 14 9 Don’t know 15

evasive under questioning fuels the sense that they do. a group who are increasingly politically active in campaigns Clarity is crucial to building trust with the electorate and like Occupy, UK Uncut and 38 Degrees, but who see dimin- seeming like you’re telling it straight. This is something the ishing returns from political parties. Labour party has struggled with in opposition. For example, Could anything bring non-voters back into the demo- the leadership didn’t feel able to oppose the benefit cap cratic fold? For some in political circles this is a pointless because of its broad popularity, but couldn’t fully embrace question: non-voters don’t vote and that’s that. But our poll it due to its unpopularity with its core constituencies. The shows that a quarter of non-voters intend to vote at the next result was a muddled position which was hard to communi- election, even before any improvements that might or might cate to voters and ended up looking slippery. not be put in place. Of course there is still time between now Why don’t people vote? The results are perhaps more and the next election for the political class to persuade them encouraging than expected: ‘don’t know’, ‘I was away at the not to bother. But this is surely evidence that not every non- time’ and ‘can’t remember’ make up over half of the respons- voter is an unreachable lost cause? es, indicating it is not a potentially combustible ‘anti-politics’ The thing that would make non-voters most likely to vote fervour that is keeping many away from polling stations but at the next election would be ‘if people in political parties spent something more prosaic and passive. This is overwhelmingly less time trying to win my vote and more time doing good the case for 18–24 year olds (69 per cent), who also scored work in my neighbourhood’. This scored 25 per cent, com- ‘I didn’t feel like my vote would make a difference to any- pared to just 2 per cent who said they’d be more likely to vote if thing in my life’ relatively higher than any other age group; ‘a party official knocked on my door to discuss political issues, a shrugged shoulder rather than a raised middle finger from or I received a telephone call or a letter’. This insight needs to

9 / Volume 124—No.­ 3 Cover Story

Thinking back to May 2010, which of these was Which one or two, if any, of the following the main reason you did not vote? (%) would make you more likely to vote in the 0 5 10 15 20 next general election? (%) 0 5 10 15 20 25

I was away at the time If people in political parties spent less I can’t remember why I didn’t vote time trying to win my vote and more time doing good work in my neighbourhood I didn’t want to vote because I don’t like the whole culture of politics and If politicians seemed more politicians in this country like real human beings I didn’t vote because all political If politicians stayed out of my way and parties are the same quietly got on with the business of running the country I didn’t feel like my vote would make a difference to anything in my life If I saw positive coverage of a political party in the media I didn't have time to go and vote If we had a more democratic politics, The party I wanted to vote for didn’t with a reformed electoral system stand or stood no chance of winning and House of Lords in my area If it was less hassle to vote I didn’t know how or where to vote If a party official knocked on my door I didn’t know there was an to discuss political issues, or I received a election on at the time telephone call or a letter Don’t know None of these – I intend to vote anyway None of these I intend NOT to vote anyway Signs of coalition resilience? Political parties would seem more relevant to my life if they stopped arguing for a minute and tried to work Representative politics is a pre-occupation of together to solve the big issues of the day Labour and Lib Dem voters? Political parties would seem more relevant to my life if they looked more like the society they are supposed to 60 represent: more working class, more women, more ethnic minority MPs (% agree) 40

% agree 20 12 31 25 13

Tory Labour Lib Dem Non voters 0 Tory Labour Lib Dem Non voters

form the core of our new political culture. If the only inter- and non-voters alike mostly agree that politics is ‘not perfect action people have with party members is about their voting but it’s the best way we have of collectively tackling the big intention, it feeds a cynical and transactional view of politics. If issues of the day and making the big choices that face soci- political parties were more involved in local issues and doing ety’. But they want a political culture that is less adversarial, things that people could see were making a difference, some less distant and more in tune with real life. One positive step semblance of faith in the power of politics might be restored. It would be slowing the special adviser’s fast track to power. would show rather than tell voters what a party can do. Our leaders spend whole careers in Westminster, grow up in People want parties to work together, with the coalition government: they learn the language of professional poli- spirit seeming in relatively rude health: 51 per cent of both tics and the public get lost in translation. The steps taken by Conservative and Lib Dem voters want political parties to parties to address problems of underrepresentation have stop ‘arguing for a minute and try to work together to solve yielded positive results in recent years, such as Labour’s all- the big issues of the day’, compared to on 39 per cent of women shortlists and the Conservatives’ A-list. We need to Labour voters and 38 per cent of non-voters. The bad news try similar measures to stop the stranglehold of special ad- is that the advent of coalition hasn’t changed the terms of visers on safe seats: all-local or non-spad shortlists. Unless political trade: people still think politicians prioritise point- we turn the tide against the increasing professionalisation less bickering over solving problems. of politics, politicians will remain from Mars and voters from A more representative politics where people ‘look more Venus, beaming out messages people feel they wouldn’t be like the society they were supposed to represent’ appears to able to understand even if they bothered to try. F be a pre-occupation of Labour and Lib Dem voters only, with 31 per cent and 25 per cent respectively listing it as a prior- This research was supported by a grant from the Joseph ity. Tories are, perhaps expectedly, less concerned (only 12 Rowntree Reform Trust Ltd and by John Jackson. Total sample per cent) but so too are non-voters (13 per cent). But with size was 2,018 adults. YouGov survey undertaken between politics a different world, perhaps non-voters can’t imagine 31st August–3rd September 2012. The survey was carried out or don’t care about making it more accessible. online. The figures have been weighted and are representative What can we learn from these findings? Ultimately voters of all GB adults (aged 18+).

10 / Fabian Review Polling Responses

Becoming real The artificiality of so much of today’s political discourse needs to be banished says Peter Kellner

To make sense of Britain’s non-voters, that even a closely-fought general election we must first clear away some statistical largely passes them by these days. cobwebs. Turnout in 2010 was 65 per cent. Perhaps we shouldn’t be surprised. The That is, around 45 million names were on two great engines of political passion for the electoral register, and 29 million of them much of the twentieth century – social class voted. So 16 million people failed to vote, and ideological conflict – are much weaker right? than they used to be. Far fewer people now Wrong. The register is an imperfect a guesstimate, I’d say that adds another 10 than half a century ago identify with any record of eligible electors. It doesn’t allow per cent to the tally of non-voters. political party. And in today’s multi-channel, for people who die between compilation This is why recorded turnout never culturally-fragmented world, broadcast (September/October) and election (May in exceeds 80 per cent nationally nowadays. Of news – one of the great shared experiences 2010). It counts some people twice or more the 16 million notional non-voters, perhaps of British life from the 1940s to the 1980s – is – people who move home and are registered nine million are realistically beyond our easily avoided. When I was growing up, it took at both their new and old addresses. (Some reach, at least in the short term. Or, to be some ingenuity, or a specially active social councils still take a while to remove out-of- more precise, it would need a massive effort life, to avoid the news on BBC or ITV; today, date names.) Students are often registered in in political engagement, social integration it takes a positive effort to choose the news. both their college constituency and at their and accurate registration, to bring that Indeed, I remember the moment when I family home. On the other hand, the register number down significantly. realised that the world was changing. In a taxi omits many people who don’t complete the to a TV studio at the start of the 1983 election registration form for one reason or another. campaign to discuss the polls, the driver said, Then there are electors who move home Non-voters are not a with evident relief that now he had a video between the autumn registration and the different breed from voters, recorder, he needn’t watch the election at all. spring election and don’t exercise their YouGov’s figures provide some important right to be registered at their new address merely a bit further down clues to what politicians need to do to re- as soon as they move. They fall into a grey engage with non-voters. (And, come to that, area of people who could vote but for whom the road to disillusion to re-engage with voters: one important the task of protecting their right to vote is conclusion from this research is that a bit of a hassle. The same could be said of What about the other seven million? non-voters are not a different breed from people who fall ill, or are in long-term care. These are the kind of people who used to voters, merely a bit further down the road Taking everything into account, including vote (or would have done had they been old to disillusion.) The two biggest failings they straightforward registration errors, if every enough) when turnout approached 80 per need to banish are their frequent failure to single person who could easily vote did cent, as it last did in 1992. The reasons, or give straight answers to straight questions, so, the nominal national turnout would excuses, listed above do not apply to them. and their habit of arguing with each other probably climb no higher than 90 per cent. They are the voluntary non-voters, in that for the sake of it. Then there are people who are on the they could fairly easily have voted in 2010 That’s not to say that genuine register and at the right address but never but chose not to. They are the people that disagreements should be hidden, rather vote. Many are people who are alienated YouGov questioned in this survey. that the artificiality of so much of today’s from the political system. They seldom The reasons they give for not voting are processed, spin-doctored, “lines to take” discuss politics or follow the news. Life is varied; but more, 41 per cent gave a political political discourse needs to be banished. a grind and they have given up hope that reason (such as dislike of Britain’s political Politicians must persuade sceptical electors any government will help them. And/or culture, or “all parties are the same”) than a that they understand real life, can talk they speak little English and live outside practical reason, 25 per cent (such as “I was normally and admit their mistakes – in short the political discourse that the rest of us away at the time”). However, fully 35 per to show that they belong to the same planet engage with. Not only do they not vote, they cent didn’t know or couldn’t remember why as the people they represent. F seldom give their views to pollsters. They they hadn’t voted. This suggests that many live below the political and polling radar. As non-voters are so detached from politics Peter Kellner is President of YouGov

11 / Volume 124—No.­ 3 Polling Responses

Straight talking could get people tuning back in The challenges highlighted by the Fabian polling are not straightforward. They demand a sophisticated response writes Katie Ghose

You Gov’s research for the Fabian Society claimed that ’Most politicians do their best gives fresh insights into the widening gulf, to help constituents who have problems’. highlighted in the most recent Hansard Partisan positioning at Westminster received Society Audit of Political Engagement, little admiration with respondents claiming between modern citizens’ expectations of they would be more likely to vote for a party representative democracy and their actual next time round ’if [they] spent less time perceptions and experiences. trying to win my vote and more time doing The political class has never been spend too much time arguing with each good work in the neighbourhood’. universally admired. It is not surprising other and too little saying where they agree’. Whilst the model of representative that this research finds more people would The public will of course judge formal democracy on offer is not matching chat to an actor or pop star than a member governing coalitions on their merits. Recent expectations, some findings give cause for of parliament. Nearly half (49 per cent) polls show declining support for coalitions, cautious optimism. Asked why they didn’t however would want to speak to a politician generally attributed to the waning popularity vote, 18 per cent of respondents simply said sat next to them on a plane – if only to of the current UK coalition government. But they didn’t know. This rises to 42 per cent berate them on the state of the economy! the findings of this survey do suggest that amongst non-voters aged 18–24. For this More seriously, this research tells us people will reward those politicians and age group it seems they have not yet been that politics is not connecting for many parties who can be more open to voicing given a reason to vote but likewise are not people. The results suggest that voters and agreements or to collaborating across party yet convinced of reasons not to. non-voters alike feel unrepresented; that lines on selected issues. People want their politicians to be more politics is not populated by ‘people like us’. like them and to focus on good local deeds; 31 per cent of respondents agreed with the and for parties to be distinct yet collaborative. criticism that ’Politics is a game played by But the findings of this They like the idea of more direct democracy an out of touch elite who live on another survey do suggest that but nearly half agree the current system planet – politics isn’t made up of people like isn’t perfect but ‘is the best way we have of me’; 34 per cent felt that ’Most MPs have people will reward those collectively tackling the big issues of the day too little experience of the real world before and making the big choices that face society.’ they go into politics’; 19 per cent thought politicians and parties This supports existing research which that if political parties ‘looked more like who can be more open to shows widespread support for the model the society they are supposed to represent: of representative democracy accompanied more working class, more women, more voicing agreements or to by a desire for it to work better in practice. ethnic minority MPs’ they might seem more collaborating across party These are not straightforward challenges. relevant to their lives. Parliament cannot They demand a sophisticated response from be a mirror image of our society but these lines on selected issues politicians to a population that does not findings suggest a desire to make it more fit the neat core/swing voter categories the reflective of Britain today. An overriding sense that politics is parties have relied on for so long. This disconnect is also apparent in the alien emerges from the survey. 18 per cent In the meantime, MPs could heed the type of politics on offer. The survey reveals of respondents said they would be more strongest criticism of the poll, their failure on a dislike of adversarial Westminster politics likely to vote if ’politicians seemed more radio or television to give ‘straight answers to with 44 per cent of respondents agreeing like human beings’ and 18 per cent felt that straight questions’. This could reflect a more that political parties would seem more political parties would seem more relevant if media-trained, professionalised political relevant if they ’stopped arguing for a they ’used less jargon and spoke in the same class. Politicians are never going to be our minute and tried to work together to solve language as everybody else’. first choice of flight companion. But straight the big issues of the day’. 36 per cent agreed Yet this is accompanied by support for talking could get people tuning back in. F with the criticism that ’politicians are more what MPs do, even if views diverge on interested in scoring points than doing the what that should be. The positive statement Katie Ghose is Chief Executive of the Electoral right thing’ and 29 per cent that ’politicians receiving the most support (24 per cent) Reform Society

12 / Fabian Review Polling Responses

Celebrate debate Too often political parties try to cover up disagreement or controversy. But to re-engage people, politicians should embrace argument, within as well as between parties argues Lisa Nandy

How to reconnect people with politics is a reflect the range of views held by the people preoccupation in the Westminster village, we are elected to represent. This is, and but it is the wrong starting point. The was always, Labour’s greatest strength; majority of the public are not apathetic, we are a grassroots party with reach into but many are seriously disillusioned with communities across the country. If used mainstream political parties. As one of wisely it helps the leadership to stay in my constituents put it recently: “as far as touch, not just to get messages out but to I’m concerned, you’re all paddling in the While all the parties chase the take messages in; to listen as well as to lead. same canoe.” Young people in particular centreground, millions of people are denied Over the last few decades that ability has are intensely political, but sceptical a voice. This trend, adopted as a deliberate been diminished, with increasing control about the major political parties and election strategy by Labour, has become a from the centre that at times reduced party unlikely to vote for them, let alone join. source of weakness, and poses a greater risk activists with much to contribute to little Yet protest movements have emerged and for Labour than for the other parties. Harold more than leafleters and minute takers. The volunteering is high. Civil society is alive Wilson once said that Labour is nothing advent of social media makes it impossible and well, but party politics has taken a if not a moral crusade. To gain public trust to exert that level of central control anymore wrong turn. Instead of reconnecting people and support we must seek clear definition, and it presents an opportunity for Labour to with politics, politics needs to reconnect not just seek the centreground. It is our become again the broad church of political with people. morality which gives us our integrity and opinion, with a range of voices that reflect How to do this is a problem for all of the our strength. the diversity of the country and the people major political parties but perhaps more so who live in it. for the Labour party than any other. After Coherence matters to people – that the more than a decade in government the party A Labour party that Labour party can reach agreement and lost its ability to communicate policies that tries to control and dictate stand for election on a platform of priorities made sense, on issues that mattered, in a and policies that makes sense is essential language people understood. from the centre fails to – but so too is the debate that precedes Political slogans like ‘hard working good policies. It is no use pretending that families’, ‘the progressive consensus’ and make the best use of the pressing national issues are black and ‘joined-up thinking’ became too prevalent, its greatest strength: its white. How to fund higher education? How alienating people rather than inspiring them. to meet the growing needs of a population Too often slogans like these seek to cover up members living longer? So often the answers to these disagreement or controversy, when what is questions are in shades of grey, and our badly needed is politicians on the left who This also means taking on the difficult political debate ought to not only reflect but are prepared to tell the truth, even when it issues that too often the left is reluctant embrace and celebrate that, within as well as goes against prevailing public attitudes, and to confront. Emulating the Tories is one between parties. make the case for change. problem, but abdicating difficult political A Labour party that tries to control and No wonder then that the priorities that territory to them is another. There are too dictate from the centre fails to make the best dominate in Westminster are often a million few mainstream politicians of any party who use of its greatest strength: its members. miles away from the priorities people have are prepared to take on issues like welfare Labour has a leader who instinctively in my Wigan constituency. House of Lords reform and immigration with a sense of understands that. But as the next election reform, the alternative vote, and rifts in generosity and humanity. Because of this, approaches, this doesn’t mean merely the coalition have dominated discussion at those debates are overwhelmingly negative, following rather than leading: we must Westminster and the media, but in two years helping to fuel the very anti-politics all openly embrace debate and make the moral have not featured in my mailbag while the parties should seek to dispel. case for change. It’s what so many people social care crisis for the elderly and disabled The way to make major political parties have been waiting for, for so long. F is pushing families up and down the country relevant again is to loosen up the political to breaking point. debate and bring in a range of voices that Lisa Nandy is MP for Wigan

13 / Volume 124—No.­ 3 What’s the story?

Jon Cruddas admits to Mary Riddell that simply translating his views into party policy would spell electoral disaster for Labour. But Ed Miliband’s policy chief is clear that “opposition politics is about story-telling”; Labour’s rethink must produce “a radical alternative which is not simply about saying nothing and trying to get over the line.”

Mary Riddell is a columnist for the Daily Telegraph

on cruddas did not plan to go to Labour Party confer- Labour is quite visceral and tribal, so it can be a source of ence. Instead he was looking forward to a US golfing frustration as well as passionate belief. It’s incumbent on us J tour with a group of old friends until his appointment all now to come up with new ideas.” as co-ordinator of the party’s policy review put paid to any With Labour 11 points ahead in the polls, it seems conceiv- thoughts of escape. “I’ve foregone one of the golf trips of able, if not likely, that the party’s familiar pattern of a spell in © Rex Features a lifetime,” he says, before adding dutifully that he would government followed by internal strife and years in the wil- much rather be in Manchester. derness could be broken at last. Were that to happen, then the His initial eagerness to stay away was not, he says, a success or failure of an Ed Miliband government would de- question of disillusion. “No, not really. My connection with pend, in large part, on the policies being evolved by Cruddas.

14 / Fabian Review Interview

His first step on taking over was to boil down Liam roots vote and too little on wooing the middle classes. As Byrne’s sprawling review, covering more than 20 areas, into David Miliband and Douglas Alexander wrote, after wit- three sub-committees – all chaired by Miliband – on the nessing the Democratic convention, Labour will not swing economy, politics and society. While Cruddas praises the the election on working class votes alone. Does Cruddas work done by Byrne, his methods are very different. think their view bespoke anxiety on their part? “I think it As befits a man recruited for his eloquence and vision bespoke [the fact that] you cannot retreat to a base. You rather than for an overload of technocratic zeal, Cruddas have to retain a wide and deep coalition. I’ve never liked spent his summer roofing and plastering the house he is the idea of slicing and dicing the electorate and micro- building by a beach on the west coast of Ireland. He took policies that address specific cohorts of voters, [such as] none of the worthy political tomes favoured by his colleagues Mondeo Man. You have to speak in bigger, primary colours (though it would be surprising if Cruddas, a bibliophile, had about the nature of the country. not read them all already), packing only books on home im- “That’s what Bill Clinton was doing [in his speech to the provements of which a study called The House Beautiful was a Democrats] – speaking in quite a raw and emotional way highlight. His research (think Frank Lloyd Wright rather than and telling the story about the choices in front of the coun- plumbing manuals) bore, in his view, a link to his day job. try. That was quite a good echo of what we’ll be trying to Assembling a set of policies and an election manifesto do at this conference. What David was saying, I guess was: “is about getting the footings in the ground, getting sol- Don’t make this a numbers game restricted to different id foundations and getting the design and the architec- segments rather than creating wider platforms and telling ture right.” It is fair to say that, in terms of glorious edi- deeper stories. That’s what I took from it, and I agree totally fices, Labour’s policy review is still several storeys short of with that. “New Labour got preoccupied with swing vot- Chatsworth House. To appoint Cruddas, a maverick who ers and marginal constituencies and small policy nuggets, shuns promotion, as the architect of ‘Rebuilding Britain’, rather than family and community and nationhood, which was – he concedes – a risky move on Ed Miliband’s part. is where the Labour Party always is when it wins.” “That’s a fair description. It was a signal that it [the review] Cruddas is delighted that Michael Sandel, Harvard pro- is quite a high wire act. I’m not by instinct a trimmer.” Nor, fessor, Reith lecturer and “probably the biggest political having voted for David Miliband as leader, was he even an philosopher on the planet,” will be at conference to warn early fan of younger brother. “No, but I’ve been impressed about the moral limits of markets. “Last year people said Ed by his resilience. He’s pulling towards him people who Miliband was on his own, but there is a bigger orbit of ideas might have been more equivocal, and I’ll put my hands up around the notion of virtue in the public realm, the sense to being one of them.” that we have duties and obligations to one another. That’s It is easy to see why Miliband gambled on Cruddas. A what the Olympic spirit is all about. My point is that we can seaman’s son with a PhD in economic philosophy, the MP walk and chew gum at the same time. You’ll see these ideas for Dagenham is a both a flagbearer of the left and an ad- gradually distilled into concrete stories of everyday life.” mirer of conservative values. “I have mates who are BNP and The forthcoming examples he cites are pension “rip-offs,” UKIP and Tory. I don’t surround myself with Labour mem- such as excessive management fees, and the escalating cost bers who have the same views as me.” Profoundly as he dis- of motor insurance. These may strike critics as rather slight, agrees with his BNP friends, he grasps what drives them. “Of given the continuing lack of detail over a Labour manifesto. course I do. I can understand a lot of their concerns.” Cruddas cautions against expecting too much illumination. His work with the grassroots has identified what he sees “I don’t think it’s a watershed conference. We’ve got to show as the vacuum in which Labour can flourish again. “David we’re going to be putting some footings in the ground. It Cameron’s modernisation programme is literally collaps- will be about people and the country and where we want ing because of the dominance of the brutal economic liber- to go. Sure, there will be illustrative policies, but it’s more als at the expense of much more interesting conservative the trajectory and where we’re heading – those big choices and social liberal traditions. That means there are spaces for the country. That’s what Clinton did really.” There will, for Labour to reclaim traditions in its own history which he warns, be few instant revelations. “The litmus test is not are socially liberal and conservative – wanting to preserve necessarily going to be the [leader’s] conference speech. communities and solidarity and institutions.” There will be ideas floated and new policies revealed, but While his endeavours are focused on an outright Labour the test is building the bigger picture over the next year.” victory (“I’ve never texted a Liberal Democrat”) Cruddas One problem, I suggest, is that – for all Cruddas’s per- does not rule out the prospect of coalition. His own touch- sonal skills as an orator and listener – Labour is perceived stone is the Blue Labour creed (he dislikes the label but as the party that doesn’t “speak human” (a criticism borne broadly favours the message of faith, flag and family) that out by the latest YouGov/Fabian polling). “I do accept that. has become a dominant theme in the party’s renewal. The A recurring theme in our conversations is how we can de- living wage and the community organising that Miliband velop a language that goes with the grain of people’s con- hopes will restore trust in politics – and in him – are con- cerns. The texture of Ed’s contributions are changing quite sistent with new conservative thinking, as are the leader’s dramatically. He’s now talking about people, places and own efforts to tackle predatory capitalism, ‘rip-off Britain’ stories rather than just silos of policy. I think Ed is begin- and to preserve the nation’s high streets. ning to calibrate an authentic language.” Some in the party are, however, uneasy that Blue La- Pre-distribution, I suggest, is not the most persuasive bour, with its nostalgic undertones, is an unwise replace- doorstep buzzword. “I agree. I take your point. But it’s not ment for the modernising drive of New Labour. Others impossible for us to operate on a whole series of different appear to worry lest too much focus is placed on the grass- levels.” Despite his enthusiasm for marrying the romantic

15 / Volume 124—No.­ 3 Interview with a comprehensible offer to voters, Cruddas is, on his your shadow cabinet? What I would read as creative en- own admission, not only not a details man but also “barely ergy, others would read as factional or political disagree- numerate.” It would be foolish, none the less, to underes- ment. You pay your money and you take your choice. I quite timate either his election-winning instincts or the policies like the idea that there are big people like Balls, whom you now taking shape. On education, for example, Lord Adon- might not agree with. But he’s in there, and I would prefer is, presented him with an inscribed copy of his book, Educa- him on my team to any other team. tion, Education, Education, as his submission to the policy “I see this stuff about tensions between Balls and review. High praise from Cruddas (“It’s brilliant”) suggests Miliband, and I think we’ve just got to get real. We’ve got that the Adonis prescription of an to have a process that can build academy expansion may presage, people’s different contributions in turn, a Labour continuation of “New Labour got into a manifesto – and build a sys- the Gove reforms. tem that can reconcile differences. On immigration, Cruddas has preoccupied with swing Balls is good. It’s right that he bats voiced personal concerns since voters and marginal for what he believes. I like that. taken up by Miliband. He is glad I don’t agree with him on some that the leader has started to ac- constituencies and small things. But we should be able to knowledge “people’s sense of vul- policy nuggets, rather than handle that or we shouldn’t be in nerability and the sheer velocity of family and community and this game.” changes in certain communities. Is there a danger that minor We’d got the economics pretty nationhood” disagreements among the Labour wrong. leadership might lead to fudged “Arguably we had too light a policy and incremental change? “I touch on the labour market and on the delivery of good agree. It is. That’s why I use the illustration of small targets.” quality housing and other [services] in those communities His theory is drawn from the Australian election of 2001 most altered by migration patterns.” Labour, in his view, when Labour, sure of victory, promised little in order to be also erred on numbers. Asked if you can expect struggling a “small target” for Conservative attacks on their economic communities to absorb huge flows of migrants, he says: credibility. “You can’t. In terms of numbers, we can’t accept the macro- Come election day, the party was annihilated by a Con- economic benefits without the obligations that go with it servative manifesto built around one fissile immigration … The points-based system was an acknowledgement that story that caught the nation’s imagination. “I want a radi- it has to be managed … within certain boundaries.” cal alternative which is not simply about saying nothing Given the lack of money for public services and hous- and trying to get over the line. Lynton Crosby [the strategist ing, will the points system have to get even tougher? “We’re who helped propel the Australian Conservatives to victory] looking at all of this. These issues are in the mix.” He also will probably be advising David Cameron, and he’ll know floats the idea of keeping a closer eye on the effects of mi- that playbook.” gration by “changing the census from a ten-year thing to Of a referendum on EU membership, which he has an annual [headcount] – and a partial amnesty for illegal backed, he says: “I am not going to disinvent the positions I immigrants of long-standing residence.” took. I abide by the [view] of shadow cabinet that this is not These suggestions, he stresses, are not party policy “but the right time for an EU referendum. However, we have to positions I’ve advocated in the past.” While he implies that consider how we rebuild a case for Europe. At some stage nothing should be off the table, he has no wish “simply to this issue must stop festering, and that means recognising translate my views into party policy.” Because that would that the people are going to have to be invited into this lose Labour the election? “Arguably, yes. Exactly. I am more conversation.” of a facilitator.” The role of the middle man is, he hints, On a third Heathrow runway, which he has opposed, sometimes tricky one. He is aware, he says, of “fault lines” Labour is split. How do they reconcile that position? “We’re and “crosswinds,” possibly over whether an over-arching going to have to, aren’t we? And we will. It will be a lively national story is sufficient bedrock for a government-in- conversation that we’ve got to have.” waiting. “Others would say: ‘Oh no, it’s about banks [and While offering no ultimatum, Mr Cruddas makes clear so on], and some of it is about the minutiae of policy devel- that he will not preside over a feeble manifesto. “No. It’s not opment. But opposition politics is really about story-telling. in my instinct. The notion of a strategy of small differences I feel it’s a duty for all elements of the Labour party to pull is anathema to me. The Tories would trump us. We have to together in the national interest and … to reclaim our own be bold and radical, and we’ll fail if we aren’t. There is no history.” safety first option. That doesn’t mean we’re left wing. We Ed Balls, I suggest, may take a less starry-eyed view. “I have to become slightly more conservative, and we have like Ed Balls. He’s a big political character, and he doesn’t to be bold.” hedge. He’s not afraid to get stuck in. He might not be im- Suppose the tensions in the party prevent such a course? pressed with some of what became Blue Labour, but I think “Then I’ll have failed. I hadn’t planned for this job, and I we can work through that. It’s small beer compared to the feel a sense of duty to the party. It would be on my head.” bigger things we would agree on.” Such thoughts of doom are far from Cruddas’s mind as he While he dismisses as“rubbish” rumours of rifts between heads to the conference he planned to miss. “I have laid Miliband and Balls, he does not deny some strain. “Look, is down my golf clubs for my party,” he says. This week will this an argument for having more insignificant people in start to show whether the sacrifice was worth it. F

16 / Fabian Review Column Policy pitch

Even with robust reform of financial sector The planned size of the fund should be regulation, it would be a mistake to think A rainy day fund subject to further analysis. As the fund is that a financial crisis could never happen The government should create a only intended for use in serious financial again. With the benefit of hindsight, we crises, it should be possible to allow the can now observe a long trend in political revenue stabilisation account to help fund to build up over time. The monies in economy in which the lessons of the 1930s meet the costs of a future financial the fund should be invested conservatively were forgotten over time: depression-era crisis writes Victoria Barr in counter-cyclical and liquid assets, able to restrictions separating investment from retail withstand the asset price volatility which banking were eroded in the US, while in accompanies financial crises and which can the UK, a ‘light-touch’ approach to financial be accessed quickly without the liquidation sector regulation was pursued by both of the fund itself causing market turmoil. Labour and Conservative governments. The fund is intended to improve the Over time, new cohorts of personnel management of tax revenues in a country will staff central banks, who have learned with a large financial sector. However, for about the recent crisis from textbooks rather simplicity, payments into the account need than personal experience, and who will be The UK was hit particularly hard by the not be explicitly hypothecated from particular influenced by new intellectual agendas. financial crisis, partly because it has a large revenues from the financial services sector, Within the financial sector, a new generation financial services industry relative to the size although this would be the spirit of the fund. of bankers will emerge, confident about of the economy. The City is a source of great We do not recommend an additional levy to the merits of their financial innovation economic strength for Britain, a sector in pay for contributions to the fund. and impatient with the fussiness of their which we excel internationally and which, The disadvantage of a Stabilisation compliance departments. Finally, future in good times, provides a healthy stream Account is the opportunity cost of locking politicians, mindful of the importance of of revenue for the Exchequer. However, as tax revenues away. The funds invested in the the City to British economic performance, recent events have clearly demonstrated, it account could otherwise be used for different may be swayed by persuasive arguments also brings with it fragility and risk. In this purposes, such as investment, reducing to relax capital adequacy requirements; to regard, it shares some of the characteristics of taxes or paying down the national debt. allow economies of scale to be exploited from the so-called ‘natural resource curse’, where These are not trivial concerns. However, the greater fusion of retail and investment the discovery of natural resources, like oil, the contingency function of the fund, and banking; or to celebrate a merger which turns brings great wealth to a country, but also fiscal the capability to respond to a serious crisis a national champion into an international volatility and other undesirable side effects. that it would give a future government, are behemoth, ignoring that the bank may have Many countries have attempted to avoid sufficiently important to warrant foregoing become too big for one sovereign to bail out the natural resource curse through the other expenditure in the short term. alone. These processes are not inevitable, but introduction of revenue stabilisation funds, At the current time, we remain in the they are not impossible to imagine over, say, which aim to smooth income over time and middle of an economic crisis, and the the next seventy years. insulate the rest of the economy from the government’s priority must be to jump The concern that the financial crisis may impact of natural resources exploitation. In start the economy out of the current slump. reoccur lies behind many of the current fact, countries have also introduced similar Payments into the Stabilisation Account regulatory reforms. However, the risk of ‘accounts’, sometimes called sovereign should therefore not commence until the reoccurrence also has implications for the wealth funds, to achieve a range of other economy is growing strongly again. management of the public finances. If objectives: to meet certain fiscal targets; to In addition to regulatory reform to reduce financial fragility builds up, unnoticed or save to meet long-term obligations; and to the likelihood of a financial crisis occurring ignored, during stable economic periods, then anticipate the costs of future financial crises. again, Labour should acknowledge that it is possible that economic and fiscal forecasts Such an approach has attractive crises are difficult to predict and economic could be out by a wide margin. The Treasury’s properties for the UK. The government forecasting prone to error. A ‘rainy day fund’ public finance forecasts and decision-making should establish a Financial Services would ensure that any future government on levels of taxation and spending before 2008 Revenue Stabilisation Account, or ‘rainy day is better placed to take action during a crisis were based on the expectation that the UK fund’, which could only be accessed in the and signal the Labour party’s commitment economy would continue to grow at around event of a serious financial crisis. In addition to securing Britain’s long-term economic 2.5 per cent per year. This expectation was to supporting measures to maintain stability stability. F very much in line with the consensus view in the banking sector, the funds in the among independent forecasters at the time. account could also be used to counteract the Victoria Barr is an economist at FTI Consulting However, the latest estimate of what the UK’s negative impact of a financial crisis on the average annual growth rate will have been wider economy (such as measures to boost A Fabian report on the Financial Services Revenue between 2007/08 and 2016/17 is less than half aggregate demand (e.g. tax cuts) or to avoid Stabilisation Fund by Victoria Barr and Nick that, at 1.2 per cent. cuts to public services). Donovan will be published this autumn

17 / Volume 124—No.­ 3 Engaging with the future

Since 2008, the UK economic debate has been obsessed with the short-term, but our ultimate recovery will depend on shifting resources from present wants to future opportunities. That means making innovation-led growth a much higher political priority, argues Geoff Mulgan

Geoff Mulgan is Chief Executive of NESTA (National Endowment for Science Technology and the Arts)

he next election – like so many in the past – looks to generate and adopt new knowledge and ideas. Decades set to be decided on the economy. Four years after of research, from the economist Richard Nelson and others, Tthe financial crash the public has yet to be convinced have shown that innovation is the most important driver of that the major parties know how to restart growth let alone long-term productivity and prosperity, and that innovative how to sustain it. The coalition is suffering from the most businesses create more jobs and grow faster. Yet despite the basic problem afflicting governments, in that its policies UK’s many strengths as an innovative economy, there are haven’t worked as it promised, and indeed expected. crucial ways we are losing ground. Leading ministers genuinely believed that a tough deficit In Nesta’s Plan I, published this autumn, we argue for a reduction strategy would lead to a quick bounce back to change of direction, to make innovation-led growth a much growth. Labour on the other hand has not yet set out higher priority. We show that although the UK has many either a convincing diagnosis of the past or a prescription innovative firms and people, from world-beating creative for the future. Were the other fundamentals pretty sound businesses like Double Negative to its thriving business ser- in 2007, before the crash? Was the problem just too little vices sector; from advanced manufacturers like Rolls-Royce regulation of the banks? We don’t know yet, and the result plc to world-class research universities; and from technology is a national political debate that is in odd ways becalmed. giants like ARM to the start-ups of Shoreditch, their success Instead since 2008, the UK’s economic debate has large- belies worrying trends. ly been about short-term recovery, focused on which of two Understanding these trends is the first step to a options will end the recession: Plan A or Plan B, austerity or more convincing policy. The most important concern in- stimulus. These macroeconomic choices matter greatly. But vestment. Nesta’s Innovation Index (which is acknowl- neither addresses the UK’s longer-term growth prospects. edged as the most authoritative measure available) shows Austerity may be unavoidable. But on its own it doesn’t lead that investment in innovation by UK businesses has fallen to growth. Stimulus may help in the short-term. But it’s sharply since the financial crisis of 2008: the most recent far from guaranteed to contribute to longer-term growth. data suggests it declined by as much £24 billion last year. That’s because growth depends on innovation – our ability This issue predates the credit crunch: in the period from

18 / Fabian Review Essay © Kenn Goodall / bykenn.com © Kenn Goodall / bykenn.com

2000 to 2007, businesses’ investment in innovation levelled technologies or firms will succeed.2 Nor did privatisation and off, investment in fixed assets fell and became increasingly deregulation transform state-owned businesses into great dominated by bricks and mortar at the expense of tech- innovators either – they left behind stronger balance sheets, nology, and companies accumulated cash. For many busi- but none of the companies that resulted became world in- nesses, the 2000s were less an age of innovation than an novation leaders in their fields, and usually R&D budgets age of cash and concrete. were cut.3 If that is the core of the problem, what are the solutions? But other policies were more successful. Britain has a Should government just cut red tape and bureaucratic bar- strong pharmaceutical industry for many reasons, includ- riers that get in innovators’ way? Should it provide tax cred- ing world class universities and an integrated NHS. But a its and subsidies? Should it target a rising share of GDP to critical role was also played by the combination of substan- be devoted to research (as China and India have done)? Or tial public funding for basic research and a pharmaceuti- should it just pump more money into infrastructures like cal price regulation scheme which for over forty years has high speed rail? We argue that the right approach is neither had the explicit goal of promoting “a strong and profitable excessive faith in top down prescription, nor excessive faith pharmaceutical industry”. We have had strong aerospace in laissez-faire. Instead all the world’s successful innovation and defence industries for similar reasons – a mix of gener- systems are hybrids, often combining almost opposite ap- ous funding for basic technologies, some strong firms, and proaches: heavy state subsidy combined with lively start-up stable contracting from government. Even apparent failures cultures and venture capital; strong science bases alongside had longer-run benefits. The government’s promotion of strong industry involvement in shaping research and devel- Inmos as a national champion in the semiconductor indus- opment (R&D). Indeed the successful models reflect the con- try in the 1970s was a failure in its own terms: Inmos did tradictory nature of innovation itself, which has to combine not thrive and ended up as a subsidiary of ST Micro. But it open, creative and speculative discovery alongside focused paved the way for a thriving microelectronics cluster in the and disciplined implementation. south west (said to be the world’s largest cluster of chip Britain’s history too confirms the need for a more nu- designers outside the US), driven in part by entrepreneurs anced approach. Many past attempts to create innovative who started their careers at Inmos.4 powerhouses failed. The national champions, targeted sub- If we look around the world at which nations are suc- sidies, and institutional reforms (like the creation of the Min- ceeding, many different models are in play, often involving istry of Technology) are rightly seen as failures.1 The 1965 UK levels of state support that would be considered excessive National Plan contains pages and pages of detailed analysis in the UK. Taiwan achieved dominance in microprocessor of the UK’s industries and their prospects, but did not lead manufacturing, a technology-intensive sector of which it to a golden age of economic growth. Few governments controls 80 per cent of the global market, thanks to very have had a good track record of forecasting which particular concerted government strategy over several decades.5

19 / Volume 124—No.­ 3 Essay

Finland has become a rich country with a strong manu- And some of the £40 billion infrastructure fund should facturing sector thanks to high levels of R&D investment, be earmarked for the infrastructures of the twenty-first through a combination of generous public funding of both century, in particular smart electricity grids and super-fast basic research and downstream development, effective broadband. These measures should be the first steps in a state agencies (such as SITRA, TEKES and Finnish Indus- longer-term rebalancing of government spending from try Investment) and one large firm, Nokia, that has built consumption to investment. The UK must also put in place a diverse ecosystem of small businesses around itself. Is- the financial architecture that businesses need to innovate rael has a dynamic defence and IT and grow. Part of the 4G auction industry, thanks to a mix of pub- could fund a generous venture lic venture funds that were then The general principle of capital co-investment fund to privatised, an immigration policy innovation policy is that help start-ups increase their size. that brought in tens of thousands because we all stand to benefit To provide larger-scale finance, of highly skilled Russians, an en- the government should consider gineering culture nurtured in part from innovation, we should the establishment of one or more through military service6 and the collectively mitigate the costs dedicated business banks, focused highest expenditure on R&D (as a on innovative businesses, com- percentage of GDP) in the world.7 and risks of innovation, which bined with an extension of credit Germany remains a powerhouse would otherwise fall heavily on easing. Meanwhile to get cash in advanced manufacturing the innovators themselves flowing into innovation, govern- thanks to a deep-rooted network ment should also consider more of agencies, strong relationships radical steps – like raising capital between firms, world-renowned technical skills, which allowances and corporate tax rates to put pressure on firms have proved very hard for other countries to emulate,8 and to invest their cash reserves. a strong science base.9 And the United States, that pro- If the top priority is to ensure that money flows into verbially free-market country, built many of its most suc- innovation, the next priority is to improve the working cessful innovations off the back of its government’s lavish of the innovation system. The UK has world-leading re- investment in science and technology, mission-related searchers, a good track record of generating university health and defence funding, state-backed investment pro- spin-outs, and internationally competitive clusters in a grammes and pro-business procurement policies.10 range of industries from financial services in London to So what should be done? We argue for action on three video games in Dundee and from semiconductor design fronts: raising investment in innovation; improving the way in Bath to biotech in Cambridge. But some universities are the innovation system works; and making our culture more still overly concerned with spin-outs (where a piece of re- innovation-friendly. Investment is arguably the top priority. search or technology forms the basis for a new company) The last decade showed the disconnect between the UK’s and intellectual property licensing, not the wider benefits financial sector and investment innovation and technology. they can bring to businesses (which matter more, as Alan Although capital markets exist to channel savings into new Hughes from the Centre for Business Research has shown. ventures, of the £6.6 trillion raised by businesses on UK mar- In some parts of the country and especially in much of the kets between 1999 and 2008, only £0.2 trillion showed up UK’s public services, innovation is scarce, either because as investment in innovation, work by Nesta and the Big In- would-be innovators have little support or because incen- novation Centre has shown. Venture capital for early-stage tives to put new ideas into practice are weak. None of the businesses continues to be in short supply, while our highly major parties have yet accepted the basic arguments of the concentrated and rapidly deleveraging banking sector burgeoning global social innovation movement – whose makes growth finance hard to come by. Public investment fundamental insight is that policies develop better through has fallen too. Despite some worthwhile initiatives, from the experiment, evolution and evaluation than through being protection of public research budgets to the establishment designed on paper and then implemented to scale. In all of the Technology Strategy Board and Catapult centres, in- of these fields there are specific options for improving the novation is currently a very small part of what government flow of ideas and the capacity of the system to turn ideas does. In the current spending review, discretionary spending into useful forms, whether by using Dutch-style voucher on innovation accounts for £2.6 billion, a figure dwarfed by schemes to encourage collaboration between businesses discretionary spending on other priorities. Since the crisis, and universities or between small and large firms, or by other governments, including the US, France, Germany and working with industry to offer prizes for major technologi- Korea have committed far more to research and other inno- cal challenges. vation spending than the UK, and the UK is unique amongst Finally, we need to make our culture more friendly to in- major economies in having a government R&D spend level novation. Nesta’s work encouraging schoolchildren to get lower now than five years ago. experience of coding and programming, rather than just Addressing this will require changes both to govern- learning how to use Powerpoint and Excel, is a good exam- ment spending priorities and to the UK’s financial system. ple. Bringing down barriers for innovators must also be a The financial crisis offers a chance to put in place, at scale, priority. In some cases, these are barriers to people, such as long-mooted plans to channel some of the £220 billion the migration rules which prevent skilled foreign students government procurement budget to innovative businesses. staying in the UK after graduating or which make it hard The upcoming 4G spectrum auction is expected to raise for start-ups to attract the talent they need to thrive. In oth- £3 to 4 billion, which should be committed to innovation. er cases, these are market barriers, such as overly restrictive

20 / Fabian Review Essay planning rules that make it hard for businesses in clusters tion, which would otherwise fall heavily on the innovators to expand or for their workers to find affordable homes. themselves. That’s a highly political principle. And it will Governments and political parties often talk a good talk need political and public advocacy and argument if it’s to about innovation. But many of these choices are not easy be widely supported. F – they involve a difficult shift in the balance of resources devoted to the future rather than the present, and many Endnotes may ask, like Groucho Marx, “what has posterity ever done 1. Broadberry, S. and Leunig, T. (2012 – forthcoming), ‘The Impact of Gov- for me?” At present the voice of innovators is largely miss- ernment Policies on UK Manufacturing since 1945’. London: Government Office for Science ing from economic debates. The issues they are concerned 2. Gardner, D. (2010). ‘Future babble: Why expert predictions fail—and why with were scarcely mentioned in the ruling coalition we believe them anyway’. New York, NY: Penguin Books. agreement. They are absent from the dialogue between 3. Council for Science & Technology. (2009).‘Improving innovation in the wa- government and financial institutions; and when business, ter industry: 21st century challenges and opportunities’.London: Council for Science & Technology. or trade unions, collectively take a stand on issues, they 4. Marston, L. et al. (2010) ‘Chips with Everything’. London:Nesta. are rarely mentioned. This is in marked contrast to other 5. An-Chi Tung. (2001)‘Taiwan’s Semiconductor Industry: What the State Did countries where the innovation field is more visible, more and Did Not’. Review of Development Economics Volume 5, Issue 2, pages supported and better understood. In the longer run, build- 266–288 ing a stronger coalition for innovation will be as important 6. Senor, Dan and Saul Singer. (2009). ‘Start-up Nation: The Story of Israel’s Economic Miracle’. New York: Twelve as the detailed policy recommendations, and vital if the 7. OECD (2011).OECD Science, Technology and Industry Scoreboard 2011. UK is to shift resources from present wants and needs to Paris: OECD future opportunities. The UK has a long history of engage- 8. Wolf, Alison. (2002) ‘Does Education Matter? Myths about Education ment with the future – from the Great Exhibition to sci-fi, and Economic Growth’, London: Penguin. and pioneers like Brunel and Berners Lee. Yet it is discon- 9. TechPolicy (2011).‘Boosting Competitiveness: Insights from Germany’s Innovation Model’. [online video] Available at: http://www.youtube. nected from national debate, as has been very evident com/watch?v=MIkFwuewXGE [Accessed: 01/08/2012]. through the endless public debates over responses to the 10. Block, F. (2008) ‘Swimming Against the Current: The Rise of a Hid- economic crisis. The general principle of innovation policy den Developmental State in the United States’, Politics & Society, 36, is that because we all stand to benefit from innovation, we 169–206. Demirela, P. and Mazzucato, M. (2012) ‘Innovation and Firm Growth: Is R&D Worth It?’.Industry& Innovation, 19 (1), p.45-62. should collectively mitigate the costs and risks of innova-

21 / Volume 124—No.­ 3 Books

The secrets of power Lyndon Johnson exercised political power with genius and ruthlessness. So does his biographer, writes Marcus Roberts

At the heart of the current presidential contest between accommodate ourselves to the new hard reality of execu- Barack Obama and Mitt Romney is the question of power: tive power. It is bright, sharp and clean and if you preferred who will wield it and to what purpose? Politicos – both shade and shadow, obliqueness and complexity, murkiness elected and otherwise – rightly obsess over this both in and deal-making, then it is hard to accommodate yourself terms of the horserace and the legislative legacy. That’s to the new reality both of Johnson’s power and its implica- the reason why one of President Obama’s very first dinner tions upon Caro’s writing. guests at the White House was Robert Caro. Put quite simply, there is no longer time and room in the Robert Caro has been writing the The Years of Lyndon masterwork for as detailed an exploration of side characters Johnson for over four decades and now publishes roughly a like Texas Governor Coke Stevenson or FDR New Dealer thousand pages every ten years. Prior to this work it was all The Passage Leland Olds, nor detailed studies of the passage of non- too common for Johnson’s triumphs to be overshadowed by principal legislation like Hell’s Canyon’s dam. Instead it is now of Power Kennedy’s Camelot and for his name to be just associated necessary for Caro to take us to the main action and actors with Vietnam. Caro corrects this by covering Johnson’s crea- ­—Robert A. Caro more directly and succinctly then before – a literary mirror- tion of the modern Democratic Party’s campaign apparatus, Bodley Head, ing if you will of Johnson’s own change. Where once we had his passage of seminal legislation like Voting Rights and £35 25 pages on Coke or 35 pages Hell’s Canyon, now we have Civil Rights, and that’s before we get to Great Society pro- the Cuban Missile Crisis – in 14 pages. grammes like Medicare and Medicaid or even the Vietnam And yet Caro never fails in his self-confessed principle war expected in volume five (or perhaps six). purpose with these books: to explore the nature of power Caro’s latest volume, The Passage of Power is indeed itself. It is in this that Caro continues his masterful reveal magisterial and defining. It is without question a work of of the secrets of power familiar no doubt to many of the both literary and political genius. But it is also too short. illustrious reviewers of his works from Gordon Brown to Bill Let me explain. As The Years of Lyndon Johnson go on, Clinton. For like LBJ, Caro possess a political genius. our protagonist’s power grows. As his powers grow, the Marcus Roberts Once again he reminds us why “counting is the first rule stakes of his decisions rise. But even as the stakes are raised is Deputy of politics”: in The Path to Power it was money, in Means of the window for LBJ’s decision making shortens. Thus Caro General Ascent it was voters, in Master of the Senate it was votes on is trapped in having to explain a larger number of momen- Secretary of the a bill and in The Passage of Power it is all of the above, as tous events and decisions within shorter time periods and Fabian Society Caro reveals how ”the counting” is the true foundation of thus is forced to compress his epic tale. politics and policy alike. A large part of the explanation for this change lies in the Caro reveals some of the most private fears and motiva- changing nature of power itself as the books go on. In the tions of politicians – as well as some of the best tricks beginning, Johnson’s power – as a student, a staffer and a of their trade. Johnson’s fear of electoral humiliation (a young Congressman – lay in his ability to influence. Come subject that President Obama himself acknowledged as the Means of Ascent his power was electoral (money, momen- great unspoken motivation of most pols in The Audacity tum, media, organising, and the like). Master of the Senate of Hope) serves as a brilliant guide on How Not to Run for is of course the definitive exploration of legislative power Office as he violates his own rule of ‘Do Everything’ in his and the trade-offs, compromises, rule manipulations and so failed 1960 presidential effort by failing to raise the money, on which that entails. crystallise his message, secure local support and hire the But The Passage of Power sees LBJ first powerless as key staff needed to ensure a successful run. This rule has Vice President and then, finally, possessed of executive great explanatory power for politics’ surprise losers: the power. That power, in contrast with legislative power is frontrunners defeated by insurgents who were willing to ‘do more direct, sharper and swifter. As a result decisions and everything’ in contrast to the heir-apparents’ self-imposed outcomes often occur with a smaller cast of characters limitations. Be it LBJ, Hillary Clinton or David Miliband, all within shorter time spans. Thus for those of us who adored had things they just wouldn’t do – in each case their previ- most the detailed, rich explorations of staff power, advisory ous victories had been when they did everything and their power, electoral power and legislative power we must now ultimate defeats were when they didn’t.

22 / Fabian Review Books

But what is perhaps most enjoyable from a historiogra- pher’s perspective, is the use of his own power that Caro FABIAN QUIZ now revels in. Where once a ‘just the facts ma’am’ tone was central to any use of a historian’s quote, now creeps in a future perfect: the case for progress in playful but sharp use of historian’s perspective to demolish the myths and inaccuracies of all lesser accounts. a n e t w o r k e d a g e – Steven Johnson One by one the greats of LBJ lore that were once Arthur Through fascinating human stories Steven Johnson explores Schlesinger or Robert Dallek are taken down by Caro as he a new vision of progress, arguing that networked thinking settles what feels like silent scores (only Doris Kearns Good- holds the key to an incredible range of human achievements, win emerges unscathed). Make no mistake, Robert Caro uses and can transform everything from local government to drug his Pulitzer Prize’d authority and status as top deity in the research to arts funding and education. It paints a compelling political biographers’ pantheon to settle old scores with other, portrait of a new model of political change that is already on mere mortal LBJ biographers. I can imagine Caro reading the rise, and shows that despite Western political systems error-strewn accounts of the 1960 Convention and yet waiting hopelessly gridlocked by old ideas, change for the better can patiently for decade after decade to right those wrongs – not happen, and that new solutions are on the horizon. with a mere rebuttal but with The Last Word on the matter. Time and again, particularly on the subject of the Kennedys’ Penguin has kindly given us five copies to give relationship with Johnson, Caro offers us first a tour d’horizon of the historians’ view of a given matter before contradicting away. To win one, answer the following question: the settled wisdom and leaving in its place the new story as Which was the first country to use internet voting stamped with the hallmark of Caro’s ruthless prose. in parliamentary elections? Lyndon Johnson exercised political power with genius and ruthlessness. With the The Passage of Power, Robert Please email your answer Or send a postcard to: and your address to: Fabian Society, Fabian Quiz Caro has emulated his subject of five decades and prac- [email protected] 11 Dartmouth Street tised his own literary power with equal genius and ruth- London SW1H 9BN lessness. It is simply a pity that he has not done so at even greater length. After all, even President Obama, who has since listened to Caro on both healthcare and Afghanistan, Answers must be received no later than Friday 30th November 2012 would surely find the time to appreciate it. F

23 / Volume 124—No.­ 3 FABIAN FRINGE TIMETABLE LABOUR’S ALTERNATIVE: THE SHAPE OF Come and join us in THINGS TO Manchester Town Hall, COME Albert Square, M60 2LA

VENUE TIMING INFORMATION SPEAKERS

Conference Hall 12:45 – 14:00 DEEPER DEMOCRACY: Stella Creasy MP; Peter Kellner (President, YouGov); Manchester Town Hall Can parties reconnect people and politics? Caroline MacFarland (Managing Director, ResPublica); Our cross-party panel asks if politicians Kathryn Perera (Chief Executive, Movement for can bridge the gap between Westminster Change) (Chair)

SUNDAY and the real world. Partners: Conference Hall 18:00 – 19:30 Politics: John Denham MP (PPS to Ed Miliband); Caroline Flint Manchester Town Hall Is the future plural? MP (Shadow Secretary of State for DECC); Katie Ghose Is Labour prepared for plural politics? (Chief Executive of the ERS) Simon Hughes MP (Deputy Leading Labour and Lib-Dem MPs go Leader, Liberal Democrats); Dr John Pugh MP (Liberal head-to-head. Can the two parties ever Democrats); Mary Riddell (Chair) (Daily Telegraph) work together? Partners: Conference Hall 20:00 – 21:30 FABIAN QUESTION TIME Andy Burnham MP (Shadow Secretary of State for Manchester Town Hall Labour’s alternative Health); Dan Hodges (Daily Telegraph); Owen Jones Our traditional Sunday night event. No (The Independent); Polly Toynbee (The Guardian); speeches, just the opportunity to put your Chuka Umunna MP (Shadow Secretary of State for BiS); views to our panel. Alison McGovern MP (Chair)

Exchange 2&3, Manchester 12:30 – 14:00 How can Labour solve the Stephen Twigg MP (Shadow Secretary, State for Central (inside secure zone) childcare crisis? Education); Seema Malhotra MP (Chair); Sam Smethers Can Labour build a winning argument (Chief Executive, Grandparents Plus); Purnima around childcare? How should it be Tanuku OBE (Chief Executive, National Day Nurseries

MONDAY delivered and what role should the state Association) play?

Partners:

ROUNDTABLE TIMETABLE Revaluing Food: Shifting the narrative Apprenticeships: How can provision Opening Up: Can a more open market on food waste be improved? deliver cheaper energy? Roundtables are by invitation only With: Mary Creagh MP (Shadow Secretary With: Rob Boucherat (Funding Policy With: Caroline Flint MP (Shadow Secretary of [email protected] of State for DEFRA); Alison Cairns (External Director, Pearson) Joanna Cain (Head State for DECC); Barry Gardiner MP (Labour’s Affairs Director, Unilever); Natan Doron of Learning and Organising, Unison); climate change envoy) (Chair); Natan Doron (Revaluing Food project leader and Senior Gordon Marsden (Shadown Minister BIS), (Senior Researcher, Fabian Society); Paddy Researcher, Fabian Society); Barry Gardiner Catherine McKinnell (Shadow Minister, Hayes (Executive Director, ESBI); Andrew Read about the Young Fabian MP (Labour’s Climate Change Envoy) (Chair); Treasury); Martin Wainwright (The Buglass (Head of Energy, Structured Finance Conference Fringe at Anthony Kleanthous (Senior Sustainability Guardian) (Chair) at Royal Bank of Scotland); Guy Newey (Head Adviser, WWF) of Environment and Energy, Policy Exchange) www.youngfabians.org.uk Partners: Partner: Partner:

24 / Fabian Review VENUE TIMING INFORMATION SPEAKERS

Conference Hall 12:30 – 14:00 New Forms of Work Stephen Timms MP (Shadow Minister for Employment, Manchester Town Hall The workplace is changing. We don’t know former Treasury Minister); David Coats (Associate what our jobs will look like in 10 years time, Director of policy, Work Foundation); Tom Hadley do we need “New Forms of Work?” (Director of External Relations REC); Doug Henderson (former Labour MP); Rowenna Davis (The Guardian) (Chair)

Partners: Come and join us in Conference Hall 18:00 – 19:30 Growing Pains: Rachel Reeves MP (Shadow Chief Secretary to the Manchester Town Hall, Manchester Town Hall How to rebuild the economy and restore Treasury); Brendan Cook (Head of Retail Banking and trust Wealth Management, HSBC); Maurice Glasman (Labour Albert Square, M60 2LA How to break free from double-dip Peer); Richard Lloyd (Executive Director, Which?); Larry Britain and forge an economy that works Elliot (Chair) (The Guardian) for everyone. VENUE TIMING INFORMATION SPEAKERS Partners: Conference Hall 12:45 – 14:00 DEEPER DEMOCRACY: Stella Creasy MP; Peter Kellner (President, YouGov); Lord Mayor’s Parlour 18:00 – 19:30 Crime, Punishment and Reform: Vera Baird QC (Labour Candidate for Police Manchester Town Hall Can parties reconnect people and politics? Caroline MacFarland (Managing Director, ResPublica); Manchester Town Hall Driving forward the justice agenda Commissioner); Frances Crook (Chief Executive, Our cross-party panel asks if politicians Kathryn Perera (Chief Executive, Movement for Breaking Labour’s silence on crime and Howard League); Tony McNulty (former Home can bridge the gap between Westminster Change) (Chair) justice. Challenging the right and winning Office Minister) and the real world. the public argument. Partners: Partners: Conference Hall 18:00 – 19:30 Politics: John Denham MP (PPS to Ed Miliband); Caroline Flint Lord Mayor’s Parlour 19:45 – 21:30 Labour’s Policy Review: Lord Andrew Adonis (Leading Labour’s Policy Review Manchester Town Hall Is the future plural? MP (Shadow Secretary of State for DECC); Katie Ghose Manchester Town Hall The shape of things to come on Industrial Strategy); Jon Cruddas MP (Policy Review Is Labour prepared for plural politics? (Chief Executive of the ERS) Simon Hughes MP (Deputy Following our landmark book, what is Coordinator); Angela Eagle MP (Chair of Labour’s Leading Labour and Lib-Dem MPs go Leader, Liberal Democrats); Dr John Pugh MP (Liberal the “shape of things to come”? Have National Policy Forum); John Denham MP (Editor, The head-to-head. Can the two parties ever Democrats); Mary Riddell (Chair) (Daily Telegraph) your say on Labour’s policy review as we Shape of Things to Come) Andrew Harrop; (General work together? put all the leading figures in one place to Secretary, Fabian Society) (Chair) Partners: take your questions. Conference Hall 20:00 – 21:30 FABIAN QUESTION TIME Andy Burnham MP (Shadow Secretary of State for Manchester Town Hall Labour’s alternative Health); Dan Hodges (Daily Telegraph); Owen Jones Conference Hall 18:00 – 19:30 ‘Spin Alley’ Live: Sadiq Khan MP (Shadow Secretary of State for Justice); Our traditional Sunday night event. No (The Independent); Polly Toynbee (The Guardian); Manchester Town Hall Come and debate the leader’s speech Mehdi Hasan (Huffington Post); Jackie Ashley (The speeches, just the opportunity to put your Chuka Umunna MP (Shadow Secretary of State for BiS); Our panel of top politicos give their spin Guardian); Tim Montgomerie (Conservative Home); views to our panel. Alison McGovern MP (Chair) on Ed’s performance. The only place on Andrew Harrop (General Secretary, Fabian Society);

TUESDAY the fringe to get the inside tracks on the Pippa Crerar (Evening Standard) (Chair) leader’s speech. Exchange 2&3, Manchester 12:30 – 14:00 How can Labour solve the Stephen Twigg MP (Shadow Secretary, State for Central (inside secure zone) childcare crisis? Education); Seema Malhotra MP (Chair); Sam Smethers Partners: Can Labour build a winning argument (Chief Executive, Grandparents Plus); Purnima Conference Hall 19:45 – 21:15 Two-speed Europe: Emma Reynolds MP (Shadow Minister for Europe); around childcare? How should it be Tanuku OBE (Chief Executive, National Day Nurseries Manchester Town Hall Are women being left behind? Linda McAvan MEP; Ivana Bartoletti (Editor, Fabiana); delivered and what role should the state Association) As austerity bites across Europe we ask: Felicity Slater (Chair) play? are the cuts hitting women harder? Partners: Partners:

Going for Growth: The new relationship Rebuilding the European left Next State: A sustainable public Next Economy: Good Business is good between Government and the economy With: John Denham MP (PPS to Ed finance settlement for business With: Lord Adonis (Leading Labour’s Policy Miliband); Axelle Lemaire (Députée With: Rachel Reeves MP (Shadow Chief With: Chris Leslie MP (Shadow Financial Review on Industrial Strategy); Melanie socialiste des français d’Europe du Nord) Secretary to the Treasury); Michael Izza (Chief Secretary); Alan Buckle (Deputy Leech (Director General, Food and Drink Executive, ICAEW); Paul Johnson (Director, Chairman, KPMG International); Stephen Partner: Federation); Vicky Pryce (former Chief IFS); Sarah Neville (Chair) (Public Policy Editor, Beer (author of ‘The Credibility Deficit) Economist at BiS); Steve Radley (Director of Financial Times) Policy, EEF); James Ashton (Head of Business, Partner: Partner: Independent) (Chair)

Partners:

25 / Volume 124—No.­ 3 The Fabian Society Section

on behalf of the majority of Scots. This is an Scotland and England, he didn’t just set up Reaching the parts other experience that can and should engage us a Scottish party, he set up the British Labour parties can’t reach all and I have been encouraged that across Party. The task for the next generation of the the party there is a growing awareness that Labour party across the UK is the same: to Polling for the Scottish Fabians rebuilding in Scotland matters to everyone. meet the challenges ahead and, in doing so, shows Labour still has a mountain But there is more we need to do. make the case for Labour as the only party The scale of these challenges over the with the concerns and needs of the whole to climb in Scotland. But Labour’s coming years means that the Labour party of the UK at its heart. F the only party that can represent the across the UK has to think as much about whole UK says Margaret Curran rebuilding our support in Scotland as it has Margaret Curran MP is Shadow Secretary of State about reasserting itself in the south east of for Scotland England. For Labour, it doesn’t matter where you take action, it is the change you make to people’s lives and the opportunities you cre- ate that matters. And in Scotland, that means The Treasurer’s view we have to face up to where we’ve got things The outgoing Treasurer of the Fabian wrong in the past and remedy them. Firstly, Society says that times change but ‘Out of touch, incompetent and boring’ that means accepting that the Scottish people are words that no one wants to be associ- are not going to tolerate an approach that Fabian values and objectives do ated with. And no political party seeking looks like we relegate the Scottish parliament not­—Nick Butler to rebuild wants to be described in that to a secondary priority, even if we know that way. That’s why the poll conducted by the not to be true. If we do that, we cannot expect Scottish Fabians this summer – which them to continue to march to the ballot box discovered these were the words voters to support us in UK elections. most connected with Scottish Labour – is a That’s why we need to reinforce to sit- sobering reminder to all of us that, despite a ting parliamentarians – regardless of what party review, a change in our top team and parliament they are in – and to our future positive results in May’s local government candidates that it doesn’t matter whether elections, we still have a mountain to climb. it’s a black chair or a green bench you sit Thirty years ago in the autumn of 1982 Our defeat in 2011 was, to put it mildly, on, it’s what you do when you’re there. when I became Treasurer of the Fabians, the a wake-up call. And while the overhaul of That means building an agenda that offers prospects for the Labour party looked bleak. our party in Scotland will be owned and hope and opportunity for the future built on The left was divided. One fault line split undertaken by Scottish Labour and led Labour principles that have served Scotland social democrats inside the party from those by our leader, Johann Lamont, it is in the in the past. These now need to be clearly who had left to set up the SDP. Another di- interests of the entire party across the UK articulated for the future, in the same way vided those who supported gradualism and that we have a strong and modern party that Ed Miliband is doing this for the whole the parliamentary road to socialism from that reaches all parts of Scotland. We are at of the UK. the hard left of the Militant Tendency and a turning point and in the next four years, Secondly, we need to stop living in the rag bag of Trots and opportunists who we will face three critical tests for our party the past. We are rightly proud in Scottish gathered around London Labour Briefing. and every one will have repercussions for Labour of our history, full of figures who On neither front was victory assured. Events the whole of the UK. The independence have had the force and legitimacy to speak could so easily have broken the party. As it referendum will, simply put, decide whether for Scotland. But the greatest legacy of was, Labour was marginalised and irrelevant Britain remains intact or breaks apart; Scot- people like John Smith and Donald Dewar for a decade and a half but enough of the land will then make an essential contribu- shouldn’t be our memory of them; it should party’s spirit and values survived to allow a tion to our efforts to form the next Labour be a new generation of Scottish Labour new generation to renew the cause in the government at Westminster in 2015; and the who can speak with the same authority and 1990s. next Scottish general election in 2016 will passion about the promise of Scotland and The Fabians, nationally and locally, show whether the Labour party can claim to its people. were part of the structure which made that be the only party that can extend its imprint That’s why over the coming years we survival and renaissance possible. In the 80s to every part of the UK and every level of will be relentlessly focussed on putting in in particular, the Fabians provided a social government. Our recent experience has de- place the best candidates we can muster sanctuary from the bitter atmosphere of CLP manded we restate the fundamental values for UK and Scottish general elections – the meetings. From 1983 onwards, the Society and purpose of the Scottish Labour party candidates we need to once again be able to provided a platform for the discussion of and we can learn and share experience from claim that we are the only party that speaks new ideas. There is still no authoritative his- across the party in different parts of the UK. for Scotland. tory of the party in this period, but when it is Responsibility for winning the independ- The Scottish Labour party has always written the gradual restoration of Labour as ence referendum rests disproportionally on made a concerted contribution to the party a viable, credible party fit to be trusted with the Scottish Labour party, as the only party across the whole of the UK. When Keir Har- government will be traceable to a succession that can speak of the benefits of the union die looked at the problems facing people in of Fabian conferences and publications.

26 / Fabian Review Fabian Society

Trust is hard won and it took Labour until rhetoric from Ted Knight and Derek Hatton. But in addition to those pleasures there 1997 to regain what it had thrown away. We need to offer a credible plan for progress, is the reward of having helped to sustain With Labour in government, the role of the to demonstrate that recessions do end but an organisation which has been part of the Fabians changed. Ministers were not short of not without active government action and tapestry of politics for almost 130 years. advice from lobby groups and civil servants. that we have the capacity to alter the life The Society is secure and in great shape. But the rundown of the party’s own research chances of the most disadvantaged here in I would like to thank all those who have department and the necessary if regrettable the UK and internationally. Times change helped to make could have been a tricky emasculation of General Committees and but our values and objectives do not. job more simple. Six General Secretaries, 28 Conference ran the risk of leaving ordinary Over the thirty years the Fabians have, as different Chairs, innumerable local society of- members with no voice. The Fabians played ever, adapted and responded to the chal- ficers, those who donate funds (in some cases their part in filling the gap – providing a lenges of the moment. The process has not anonymously) and of course the members – constant reminder that being in government been glamourous. Those who venture into without whom nothing would be possible. was not an end in itself. politics at any level seeking fame and for- Thirty years as Treasurer is long enough. Back in opposition, the Fabians again tune will find that there is no great fortune I am delighted that David Chaplin, who have the challenge of helping to develop and that fame comes only through scrutiny is standing as my successor, represents a new ideas. The party is less fractious now. If from the Daily Mail and the Daily Telegraph. new generation and that the Young Fabians anything the problem is that politics is too But politics remains an honourable activity. continue to thrive. They are the future. But quiet. With a deep and continuing recession, Being Treasurer of the Fabian Society that does not mean that there is no role for serious cuts in public spending, an unre- has been a pleasure rather than a duty. I those of us who are grey and grumpy. Fabi- solved set of problems in Europe and all the have made many friends, found a wife and ans don’t retire – the idea of Beatrice Webb other issues of our time, it is surprising that enjoyed the opportunity to experience up- retiring while there was work to be done is there are fewer protests and only a muted close the real political process as opposed laughable. Perhaps it is time to create the Old debate on policy. It is as if people have lost to that described in either the media or the Fabians. A luta continua. F faith in the political process and that even academic text books. Having been a Fabian the left is fatalistic. If true that is as danger- allowed me to understand and appreciate Nick Butler is Visiting Professor and Chair of the ous a threat to the Fabian view of progress working in No 10, even in the toughest of King’s Policy Institute at King’s College London. as any amount of pseudo-revolutionary times at the end of the last government. He is outgoing Treasurer of the Fabian Society

27 / Volume 124—No.­ 3 ANNUAL REPORT 2012

Treasurer’s Report Financial Statements As the figures demonstrate the Society’s finances are sound with income and These accounts are an extract from the expenditure balanced and turnover financial statements and may not contain maintained. In the circumstances this is a sufficient information to allow a full Suresh Pushpananthan, good result and a great credit to the Fabian understanding of the financial affairs of Chair of the Fabian Society staff – in particular Phil Mutero, our Head the society. For further information the of Finance and Operations and our new full financial statements and auditors It has been another successful year for the General Secretary Andrew Harrop. They report should be consulted. Copies of Fabian Society. We have had significant have managed to ensure that the Society has these can be obtained from the Fabian changes in our staffing at all levels with been able to adjust both to the inevitable Society, 11 Dartmouth Street, London a new team led by Andrew Harrop our uncertainties of the transition period around SW1H 9BN. General Secretary. Andrew has been in the change of General Secretary, and to the post for a year. I wish to thank him for his shift in external circumstances. With Labour excellent work so far, particularly in getting in opposition and an economic downturn Auditors Statement our finances back on track. continuing, the income from conferences The Executive Committee has spent much and events has inevitably been constrained. We have audited the financial statements of the past year undertaking a Governance Fortunately the Society has been able to of The Fabian Society for the year ended Review process. We will be making far- compensate with added income elsewhere – 30th June 2012 which consists of a reaching recommendations to the Annual in particular, and most encouragingly, from balance sheet, income and expenditure General Meeting in order to improve the research funding. account and notes to the accounts. In our structure and function of the Executive I would like to thank the staff, my opinion the Financial Statements give Committee. The new website has been a colleagues on the Executive led with a true and fair view, in accordance with great success, with many more participants great skill for the last two years by United Kingdom Generally Accepted enjoying the user-friendly site featuring Suresh Pushpananthan, and all those Accounting Practice, of the state of The quality articles and editorials. This year without whose hard work the Society Fabian Society’s affairs at 30th June 2012 will be the first year where elections to the couldn’t survive – our volunteers in and of its income and expenditure for the Executive Committee will have electronic Dartmouth Street and in all the local year then ended. voting alongside traditional paper ballots. We societies, our members around the country, have also recently purchased a new building. and those who support us financially – in Knox Cropper We will be moving into our new offices at 61 some cases anonymously. I would also Chartered Accountants Petty France once refurbished in Spring 2013. particularly like to thank the Young Fabians 8/9 Well Court While all these structural changes have whose energy and commitment have once London EC4M 9DN been taking place the Society has continued again been outstanding. to produce first class publications, events After 30 years as Treasurer it is time to Registered Auditors & analysis. We continue our input into the step down. It has been a privilege to serve Labour Party’s Policy Review process as well the Society and although we are not rich and as contributing significant outputs in our cannot afford to do everything we would main themes. wish, I believe that in both financial and The Young Fabians, Local Societies and organisational terms the Society is secure Fabian Women’s Network continue to thrive. and capable of making a great intellectual Lord Archer (1926–2012) I wish to thank all the staff and the Executive contribution to the challenge of returning Committee for their great work over the past Labour to power. The Fabian Society was saddened by year. It has been a great honour to be Chair of the loss of its president Lord Archer of the Fabian Society for the past two years. Nick Butler Sandwell. Peter Archer was elected as an MP in 1966 and served as Solicitor- General between 1974 and 1979 and Research and Editorial Trade Unions Shadow Secretary of State for Northern Asda, Barrow Cadbury Trust, Crisis, Dartmouth Street Trust, Amicus, Community, CWU, FBU, GMB, PCS, TGWU, TSSA, Joseph Rowntree Foundation, Igloo, Moat Housing, PCG, TUC, TUFM, UNISON, USDAW Ireland between 1983 and 1987. He TUC, Unilever, WWF received a life peerage as Baron Archer of Partner Organisations Sandwell in 1992. Lord Archer first joined Conferences, Receptions, Lectures & Seminars Compass Institute of Education, the Guardian, the Asda, EEF, Electoral Reform Society, EEF, ESBI, FEPS, Independent, the Observer, E Sharp, Left Foot Forward, the Fabian Society in 1956 and served as European Commission, Friends Provident, Food & Drink Progress, Labour List President of the Society from 1993. Federation, ICAEW, IOE, Sanofi-Aventis

28 / Fabian Review Noticeboard

Fabian Fortune Fund winners: Shaun O’Byrne £100 Linda Nicklin £100 Income and Expenditure Account 2012 2011 Half the income from the Fabian Fortune Fund goes to support our research programme. Forms income £ £ and further information available from Giles Individual Members 171,265 181,794 Wright, [email protected] Institutional Affiliations and Subscriptions 14,651 34,151 Donations 63,275 38,944 Subscription Rates Publications Sales 3,086 2,703 At the Annual General Meeting, members agreed to increase the annual Ordinary rate Conference and Events 129,574 169,274 subscription by £1 to £38.00 (£36.00 for those Publication Sponsorship and Advertisements 64,775 59,335 paying by direct debit). Research Projects 153,500 108,305 The Reduced rate subscription for students, retired Rents 31,034 34,861 and unwaged/unemployed members remains unchanged at £19.00 (£18.00 direct debit). Bank Interest 626 1,173 Royalties and Miscellaneous - 5,041 Total Income £631,786 £635,581 Fabian Society AGM 2012 venue EXPENDITURE Conference Hall, Mary Sumner House (Mother’s Union), 24 Tufton Street, London, SW1P 3RB. Research Projects 35,213 24,904 date Staff Costs 340,162 374,120 Saturday 17th November 2012, 13:00 – 16:00 Printing and Distribution 67,478 58,533 agenda 13.00 Doors open Conference and Events 95,392 93,155 13.15 Debate: Labour’s Public Face: How Promotion 5,130 2,995 voters feel about the people’s party Affiliation Fees 2,754 2,557 14.15 Tea and Coffee 14.45 Annual General Meeting Postage, Phone and Fax 8,918 9,543 1. Apologies Depreciation 3,516 3,387 2. Minutes of 2011 AGM Travel 1,735 525 3. Matters Arising 4. In Memoriam Other 5,300 5,300 5. Election results Stationery and Copying 10,110 8,443 6. Annual Report 2011-12 7. General Secretary's Report and Legal and Professional 7,502 8,396 Forward Programme Irrecoverable VAT 3,763 908 8. Treasurer’s Report Premises Costs 36,805 34,526 9. Appointment of Auditor 10. Resolutions Website & Database 5,849 8,755 11. Date of next AGM Bad Debts 2,902 - 12. Jenny Jeger Prize 13. AOB Total Expenditure £632,529 £636,047 16.00 Close of meeting followed by an (Deficit) Before Tax and Transfers (743) (466) informal social at the Westminster Transfers from Reserves - - Arms, 9 Storeys Gate, Westminster. (Deficit) before Taxation (743) (466) Corporation Tax - - AGM Resolutions (Deficit) for the year £(743) £(466) Further to those listed on page 30, the following is proposed by Peter Stern Bye-law 1, paragraph ii shall be replaced with: ‘There shall be a research and editorial committee consisting of not less than five persons to be appointed by the executive committee, and, up to five members to be elected at the annual general meeting. The committee shall elect a chair, who will provide reports to the executive committee and to the annual general meeting.’

29 / Volume 124—No.­ 3 Fabian Society Rule changes

Proposals to reform the Following its review of governance The following rules shall be amended: procedures and constitution of arrangements, the Executive Committee is the Fabian Society to enable a proposing a number of amendments to the Rule 9 (executive committee membership) Society’s rules. The key proposals are: The first paragraph of rule 9 shall be replaced more strategic and political input • Increase in term of elected executive with: ‘The executive committee shall comprise: from the Executive Committee committee members from one to two years (a) the Honorary Treasurer, who shall be elected and to strengthen its monitoring • Reduction in the size of the Executive as provided in rule 11 following; (b) 10 other of staff activities. Committee to a maximum of 22, with the members elected as provided in rule 11 following; president and vice-presidents no longer (c) three members elected to represent local Fabian members societies as provided in rule 11 following; (d) The Fabian Society has been enormously • Creation of a new ex-officio executive one member elected to represent the Society in influential throughout its long history. committee place for the Fabian Women’s Scotland and one member elected to represent the More recently, while in Government Network Society in Wales as provided in rule 11 following; and in Opposition, the Fabian Society’s • Limit of five Westminster parliamentarians (e) one member who shall be an employee of the significance to the Labour Party endures. on the Executive Committee Society and who shall be elected to hold office for We now have a new General Secretary and • Power for Executive Committee to suspend one year by the employees excluding the General senior staff. The Society needs an Executive or expel members in certain circumstances Secretary and Deputy General Secretary who may Committee that can contribute to its success • Power for Executive Committee to intervene neither stand nor vote; (f) one member who shall and this necessarily requires it to be more in the affairs of a local Fabian Society in the be appointed by the Young Fabian executive; (g) effective than at present. event of unacceptable practice one member who shall be appointed by the Fabian Women Network executive; (h) members co-opted It has been clear for some time that the The following resolutions will be voted by the executive committee provided that the governance arrangements of the Fabian on at the Annual General Meeting on 17th membership of the committee does not at any time Society are lacking and we need to November 2012, full details of which can be exceed 22 in number.’ strengthen them. There should be a clear found on page 29: distinction between the roles of the staff, The first sentence of the second paragraph who are responsible for tactics, operations Resolution 1 – Proposed by the Executive of rule 9 shall be replaced with: ‘The executive Committee (Requires a 75 per cent majority at shall have the right to fill casual vacancies other and delivery, and the role of the members a General Meeting) than the employees’ representative­ who shall be of the Executive Committee which focus on elected by the employees, and the Young Fabian, strategy and oversight. It is important not The following rules shall be amended: Fabian Women’s Network, Scottish Fabian and to confuse these roles. The staff should be Welsh Fabian representatives­ who shall be more accountable to the elected members Rule 2 (objectives) appointed by their respective executives’ of the Executive Committee. The Executive The word ‘disability’ shall be added to the Committee should be more accountable to existing list of grounds upon which the Society The first sentence of the third paragraph of the members of the Society. shall not discriminate: race, gender, sexual rule 9 shall be replaced with: ‘The executive orientation, age or creed committee shall elect such officers for the year as In September 2011, the Executive it thinks necessary, including a Chair and at least Committee agreed to the formation of a Rule 4 (membership) one Vice Chair.’ Governance Sub-Committee. It has worked The following sentence will be inserted at since that time to develop recommendations the end of the first paragraph of rule 4: ‘The The fourth paragraph shall be replaced with: to modernise the governance structures of executive committee may suspend or expel a ‘Any member absent from three meetings of the Society. The Executive Committee has member for reasons including being ineligible for the executive committee (excluding meetings made some changes already in the areas membership of the Labour Party, being suspended where apologies are accepted for a satisfactory that require only its approval. We now or expelled from the Labour Party, or unacceptable explanation) shall be deemed to have vacated his propose several Rule changes in order to conduct.’ or her seat.’ modernise the function of the Executive Committee and also some word changes The term ‘associate’ shall be replaced by the Rule 11 (executive committee elections) to bring the Rules up to date. We now seek term ‘associate member’ The first sentence of rule 11 shall be replaced with: ‘Before every second annual meeting (in the approval of the AGM for these much The following sentence will be added as a odd-numbered years), the Society shall elect needed changes. F new final paragraph: ‘Libraries, commercial by ballot an honorary treasurer and 10 other organisations and similar may take a publication members of the executive committee to hold office Suresh Pushpananthan subscription, with no associated membership for two years.’ Chair of the Fabian Society rights.’ The following sentence shall be added to the end Resolution 2 – Proposed by the Executive of the first paragraph of rule 11: ‘No more than 5 Committee (Requires a simple majority at a of the 10 other members elected shall be Members of General Meeting) the House of Commons or House of Lords.’

30 / Fabian Review Fabian Society

In the second paragraph of Rule 11 the The words ‘annual postal’ shall be deleted from Rule 13 (supervision of editorial content) number four shall be replaced by the number the current fifth paragraph of rule 11. The first sentence of Rule 13 shall be replaced three. with: ‘No article, essay, book, pamphlet or tract New rule (President and vice-presidents) submitted to the Society shall be published unless The following sentence shall be added to the The following rule shall be inserted between approved as of a suitable standard according to end of the first paragraph of rule 11: ‘None rule 9 and rule 10: ‘The President and Vice rules made by the executive committee.’ of the members elected shall be Members of the Presidents of the society, if any, may be elected House of Commons or House of Lords.’ at an annual or special general meeting on the Rule 14 (subscriptions) nomination of the executive committee. They shall In the second paragraph the phrase The following sentence shall be moved from not be members of the executive committee.’ ‘subscription for libraries’ shall be replaced by the second paragraph of rule 11 to become a the term ‘publication subscriptions’. freestanding third paragraph: ‘A statement from Rule 12 (executive committee each of these candidates and biographical details responsibilities) The rates for subscribing bodies shall be shall be circulated with the ballot paper.’ The first paragraph of rule 12 shall be replaced amended to: with: ‘The executive committee shall conduct • Constituency Labour Parties £38 The current fourth paragraph of rule 11 shall the general business of the Society; appoint such • up to 2,500 members £150 be replaced with: ‘Elections may be held using paid employees as it deems necessary, including a • 2,501–100,000 £495 secure paper or electronic methods. All votes must General Secretary; create such sub-committees and • 100,001–500,000 £995 be cast within a period to be determined by the groups as are considered desirable from time to • over 500,000 £1,700 executive com­mittee, which shall be not less than time; oversee research and editorial strategy; and 28 days and not more than 56 days after the day appoint all delegates to represent the Society. It Rule 15 (local societies) the ballot opens. Scrutineers shall be appointed shall delegate its responsibilities to sub-committees The following paragraph shall be added at by the executive committee, whose duty it shall be or to the General Secretary as it sees fit.’ the end of rule 15: ‘The executive shall have to oversee the accuracy of the vote, and to certify the power to intervene in the running of a local to the General Secretary the results. In the event In the second paragraph of rule 12 the phrase society, amend its rules or de-recognise it in the of a tie the chair of the society shall have the ‘and on the society’s website’ shall be inserted event of unacceptable practice which brings the casting vote.’ after the words ‘Fabian Review’. national society into disrepute.’

31 / Volume 124—No.­ 3 Listings

BEXLEY DERBY LEEDS 020 8693 2709 or email duncanbowie@ Regular meetings. Contact Alan Scutt on Details for meetings from Alan Jones on Details of all meetings from John Bracken yahoo.co.uk 0208 304 0413 or alan.scutt@phonecoop. 01283 217140 or alan.mandh@btinternet. at [email protected] coop com SOUTH WEST LONDON MANCHESTER Contact Tony Eades on 0208487 9807 or BIRMINGHAM DONCASTER AND DISTRICT Details from Graham Whitham on [email protected] 25 September: ‘Can Young People lead New Society forming, for details and 079176 44435 email manchesterfabians@ Birmingham out of Recession?’ This and information contact Kevin Rodgers on googlemail.com and a blog at http:// SOUTHAMPTON AREA all meetings at 7.00 in the Birmingham 07962 019168 email k.t.rodgers@gmail. gtrmancfabians.blogspot.com For details of venues and all meetings, and Midland Institute, Margaret Street, com contact Eliot Horn at eliot.horn@ Birmingham. Details from Claire Spencer MERSEYSIDE btinternet.com on [email protected] EAST LOTHIAN Please contact Phillip Brightmore at Details of all meetings from Noel Foy [email protected] SOUTH TYNESIDE BOURNEMOUTH & DISTRICT on 01620 824386 email noelfoy@lewisk3. For information about this Society please 26 October: Bridget Phillipson MP. plus.com MIDDLESBOROUGH contact Paul Freeman on 0191 5367 633 ‘Crime and Justice – The Way Forward’. Please contact Andrew Maloney on or at [email protected] 30 November: Clare Moody on ’Can EDINBURGH 07757 952784 or email andrewmaloney@ Social Europe Survive the Euro Crisis’ Regular Brain Cell meetings. Details of hotmail.co.uk for details SUFFOLK 6 December: Christmas Party. 25 January: these and all other meetings from Daniel 20 September: 7.30, Richard Bourne Jon Trickett MP on’How Can Labour Johnson at [email protected] MILTON KEYNES of the Socialist Health Association on Win a Majority in 2015?’ Meetings at The Anyone interested in helping to set up ‘Health and Social Care’ at Ipswich Friends Meeting House, Wharncliffe Rd, EPSOM AND EWELL a new society, contact David Morgan on Library Lecture Hall. November Boscombe, Bournemouth at 7.30. Contact New Society forming. If you are [email protected] (date TBC): Paul Greater on ‘Local Ian Taylor on 01202 396634 for details or interested, please contact Carl Dawson at Newspapers – and Essential part of our [email protected] [email protected] NEWHAM Local Democracy’. Details from John Regular meetings. Contact Tahmina Cook on 01473 255131, email contact@ BRIGHTON & HOVE FINCHLEY Rahman – Tahmina_rahman_1@hotmail. ipswich-labour.org.uk Friends Meeting House, Ship St, Enquiries to Mike Walsh on 07980 602122 com Brighton. Details of all meetings from SURREY Maire McQueeney on 01273 607910 email GLASGOW NORTHUMBRIA AREA Regular meetings at Guildford Cathedral [email protected] Now holding regular meetings. Contact For details and booking contact Pat Education Centre Details from Maureen Martin Hutchinson on [email protected] Hobson at [email protected] Swage on 01252 733481 or maureen. BRISTOL [email protected] Society reforming. Contact Ges GLOUCESTER NORTHAMPTON AREA Rosenberg for details on grosenberg@ Regular meetings at TGWU, 1 Pullman If you are interested in becoming a TONBRIDGE & TUNBRIDGE WELLS churchside.me.uk Court, Great Western Rd, Gloucester. member of this new society, please For details of meetings contact John Details from Roy Ansley on 01452 713094 contact Dave Brede on davidbrede@ Champneys on 01892 523429 CAMBRIDGE email [email protected] yahoo.com Details from Kenny Latunde-Dada TYNEMOUTH [email protected] GREENWICH NORTH STAFFORDSHIRE Monthly supper meetings, details from Join the Cambridge Fabians Facebook If you are interested in becoming a Any Fabian interested in joining a Brian Flood on 0191 258 3949 group at www.facebook.com/groups/ member of this local Society, please contact North Staffordshire Society, please cambridgefabiansociety Chris Kirby on [email protected] contact Richard Gorton on r.gorton748@ WARWICKSHIRE btinternet.com 20 September: James Plaskitt, Labour’s CAMDEN GRIMSBY candidate for Police Commissioner in Contact Tristan Stubbs for details at Regular meetings. Details from Maureen NORWICH Warwickshire. 25 October: Dr Kevin [email protected] Freeman on m.freeman871@btinternet. Society reforming. Contact Andreas Hickson on’The History of Labour com Paterson – [email protected] Thought’. 22 November. Lord Phillip CARDIFF AND THE VALE Hunt on ‘Home Affairs’. 24 January: Details of all meetings from Jonathan HARROW NOTTINGHAMSHIRE Brian Davies, former Head of CAFOD. Wynne Evans on 02920 594 065 or 24 September: Gareth Thomas MP. Regular meetings.Contact Dr Arun All meetings 7.30 at the Friends Meeting [email protected] 24 October: Dr Onkar Sahota AM. Details Chopra – [email protected], House, 28 Regent Place, Rugby Details from Marilyn Devine on 0208 424 9034 www.nottsfabians.org.uk, twitter from Ben Ferrett on ben_ferrett@hotmail. CENTRAL LONDON Fabians from other areas where there @NottsFabians com or http://warwickshirefabians. 17 October: Austin Mitchell MP. are no local Fabian Societies are very blogspot.com/ Meeting in House of Commons. welcome to join us. PETERBOROUGH Details from Giles Wright on 0207 227 Meetings at 8.00 at the Ramada Hotel, WEST DURHAM 4904 or [email protected] HASTINGS AND RYE Thorpe Meadows, Peterborough. Details The West Durham Fabian Society Meetings held on last Friday of each from Brian Keegan on 01733 265769, welcomes new members from all CHISWICK & WEST LONDON month. Please contact Nigel Sinden at email [email protected] areas of the North East not served by 25 October: James Hallwood of the [email protected] other Fabian Societies. It has a regular Constitution Society. All meetings at PORTSMOUTH programme of speakers from the public, 8.00 in Committee Room, Chiswick HAVERING Regular meetings. Details from Daniel community and voluntary sectors. It Town Hall. Details from Monty Bogard 23 October: Iain McNicol, General Greenaway at daniel.idris.greenaway@ meets normally on the last Saturday of on 0208 994 1780, email mb014fl362@ Secretary of the Labour Party. gmail.com alternate months at the Joiners Arms, blueyonder.co.uk 15 October: Robert Evans, former MEP Hunwick between 12.15 and 2.00pm – on the US Elections. 16 November: John READING & DISTRICT light lunch £2.00. Contact the Secretary COLCHESTER Cryer MP. Details of all meetings from For details of all meetings, contact Tony Cllr Professor Alan Townsend, 62A Low Details from John Wood on 01206 212100 or David Marshall email david.c.marshall. Skuse on 0118 978 5829 email tony@ Willington, Crook, Durham DL15 OBG, [email protected], or 01206 212100 [email protected] tel 01708 441189 skuse.net tel, 01388 746479 email Alan.Townsend@ For latest information, see the website dur.ac.uk CUMBRIA & NORTH LANCASHIRE http://haveringfabians.org.uk SHEFFIELD Regular meetings. For information, 20 September: Cllr Mahzer Iqbal. Public WIMBLEDON please contact Dr Robert Judson at HULL Services in Sheffield. Regular meetings Please contact Andy Ray on [email protected] New Society forming. Secretary Deborah on the 3rd Thursday of the month 07944 545161or andyray@blueyonder. Matthews and Chair Kevin Morton can atThe Quaker Meeting House, 10, St co.uk DARTFORD & GRAVESHAM be contacted at HullFabians@gmail. James St, Sheffield, S1 2EW. Details 18 October: Andrew Harrop, General com, on Twitter at @HullFabians or on and information from Rob Murray on YORK Secretary Fabian Society on ‘The Future 07958 314846 0114 255 8341or email robertljmurray@ Regular meetings on 3rd or 4th Fridays of the Welfare State’, 8.00 in Dartford hotmail.com at 7.45 at Jacob’s Well, Off Miklegate, Working Men’s Club, Essex Rd, Dartford. ISLINGTON York. Details from Steve Burton on steve. Details from Deborah Stoate on 0207 227 Details from John Clarke at SOUTH EAST LONDON [email protected] 4904 email [email protected] [email protected] For details, contact Duncan Bowie on

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