Tories may be wrong on national debt, but some are right on personal debt

The Bright Blue conference revealed some allies in the fight against the payday lenders

Last week I attended a conference run by the Tory "Fresh" group Bright Blue. There were plenty of faces I recognised and not all of them belonging to the "left wing" of the Tory party. After a few conversations it had become apparent that there is an anger across all wings of their party regarding the continued employment of George Osborne.

For the Tories, who fancy themselves as the party of fiscal responsibility (though as a Labour party member myself, I remain skeptical), the perception of Osborne's continued weak effort is the source of much frustration.

However to suggest that Osbornomics is the sum total of the financial thinking within the Conservative party would be an error. Take the area of finance that I'm interested in for example, that of personal debt – many in the party who are driven by principle rather than pride tend to sit on the correct side of the tracks here.

Justin Tomlinson MP, for example, the member for North Swindon, is one of the most vocal critics of the payday lending industry in parliament.

Earlier this year he addressed parliament during the debate on the clauses in the Financial Services Bill in support of imposing a total cost cap on loans that lenders can deal out to consumers. This, for him, is one way to ensure exploitative companies don't make life harder of those who are most vulnerable.

But Tomlinson understands that this cannot be a single policy enacted in isolation. This was why he, along with fellow Conservative member of parliament, Andrew Percy, authored a very interesting report on financial education. For them both, more focus on finance early on, can better gear up people when they are older to make healthy financial decisions – which can be hard to come by if times are tough on the pocket with more and more payday lenders popping up on our high streets.

With Percy, his interest in bad debt stems from his own problems with it. Though he has never had to take out a payday loan, he has been in the position of owing tens of thousands of pounds – for which as of 2011 he was still paying off.

"I now pay about £600 a month to clear off all of my credit cards which I've had to roll into a loan since my election", he told the BBC last year.

Another Tory MP, Tracey Crouch, member for Chatham and Aylesford, also came into focusing on debt issues as a consequence of her own past. When I spoke to her earlier this year she told me that her debts were down to "youthful stupidity" and her £15,000 credit card and store card debt was largely the outcome of living a lifestyle she couldn’t afford, which some of her peers could.

Crouch insisted that there is a positive side to credit, indeed most regard it as the sign of a healthy economy. However she herself has seen the negative side of it. She is particularly concerned about those who are termed the "underbanked", namely those those who still have bills to manage and cashflow problems to overcome, but are restricted in their access to mainstream credit products.

Given the rate at which the payday loans industry is growing, the temptation to see this as an easy way out for the very vulnerable increases. The government has a responsibility to do what it can to ensure all consumers do not fall foul to expensive loans, but also many of the barriers of alternatives such as credit unions need to be overcome too.

For example the Association of British Credit Unions (ABCUL) still haven't tapped into social media, and trying to raise credit union membership that way, whereas payday lenders such as Wonga have done this very successfully.

One person who does know a thing or two about credit unions is Damian Hinds MP, the member for East Hampshire. He chairs the All-party Parliamentary Group (APPG) on Credit Unions, and is a vice chairman of the APPG on Debt.

His politics are perhaps most interesting because he is a self-described free-market Conservative. He told me that when he first became an MP he was convinced that market solutions would drive down expensive lenders and anything the state could do would only frustrate this process.

However, he has since changed tack on this, deciding that "normal market rules don't apply with payday lenders". Now Hinds realises that the state can play a part in helping a create a fairer lending market since all evidence points out that the invisible hand is typically absent.

The legacy of Osbornomics will be negative – and Conservatives themselves are as adamant as anyone that this is the case. David Cameron is not being a renegade, but a fool for keeping him. But the Conservative party is not without sound economic minds – and on an issue as important as personal debt this is proven most forcibly.

A payday loan company in Birkenhead. Photograph: Getty Images

Carl Packman is a writer, researcher and blogger. He is the author of the forthcoming book Loan Sharks to be released by Searching Finance. He has previously published in the Guardian, Tribune Magazine, The Philosopher's Magazine and the International Journal for Žižek Studies.
 

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.