Equality must be at the centre of a vision for a better society

The challenge is to have sufficient imagination that we construct a sufficiently radical alternative.

Even hard-bitten progressives are shocked by food banks. We talk about austerity and the damage to our society, but the reality of extreme poverty, of foodbanks, teachers bringing in breakfast for starving children, families moving because of cuts in benefit, an explosion of Wonga loans, still shocks and surprises.  Many of us will want to get busy campaigning, marching with the TUC on the 20 October. But we need to do more.

We need to reassert that equality is a central concern for progressives. Class, the Centre for Labour and Social Studies, the trade-union backed Think Tank, today publishes Why Inequality Matters. A popular version of the seminal The Spirit Level, it argues compellingly that inequality has been rising, and that inequality is bad for society as well as those who suffer directly.  Wilkinson and Pickett’s book  was inspirational, and began to shift the terms of debate. Peter Mandelson’s infamous “We are intensely relaxed about people getting filthy rich” was firmly thrown in the dustbin of history. This pamphlet is an attempt to more widely develop these arguments, to ensure that the alternatives to Austerity embrace startegies for equality at their heart.

Ed Miliband’s talk of “predistribution”, while somewhat wonkish, certainly seem to be on the same page. As does Len McCluskey ‘s call this week for a £1 increase in the minimum wage. Economists such as Paul Krugman, Robert Reich and Stewart Lansley have increasingly stressed that more equality is an essential precondition for more stable economies less prone to recession. The filthy rich don’t spend their money, while working people spend their money and increase demand.

Joseph Stiglitz, another Nobel prize winner, in his most recent book, The Price of Inequality, develops these arguments providing a powerful critique of free market ideas. He also links inequality to the argument that flexible labour markets contribute to economic strength, arguing instead that stronger worker protections correct an imbalance of power. Weakened unions have thus contributed to greater inequality – an important argument in support of fair laws for unions to replace current restrictive legislation.

The Spirit Level and the widespread dissemination of this pamphlet and the new popularity of the importance of equality may be compared to the publication in 1931 of R H Tawney’s Equality. Tawney, Beveridge and Keynes were all part of the ideological development that was to become dominant in the war years. A set of ideas that underpinned political development. Ideas that contributed to the Social democratic settlement of 1945, and ushered in the welfare state.

The challenge for today is to have sufficient imagination that we construct a sufficiently radical alternative, with equality embedded, that can be a new settlement for our times. The lurch to the right of the cabinet reshuffle demonstrates that while the left may see the bankruptcy of the Tory response to the crisis, they are confidently pursing the dismantlement of our welfare state. Far from conceding the defeat of neo-liberalism , the Tory right, as with Mitt Romney in the US, would take us down an ultra-neo-Liberal road. With carefree abandon, they would happily see an impoverished society, ruled by the one per cent - a scorched earth apocalyptic vision.

This is a world where triangulation is meaningless; where our responsibility is to construct a compelling vision of a credible alternative. Equality at the centre of such a vision, for a better society  for all, and better conditions for working people, provides the basis also for constructing the necessary alliances across society to become a compelling majority.

After a decade of disillusion and estrangement of people from politics, a new grit is appearing, the necessity of political involvement, the beginning of a new passion for political change. Ed Miliband’s Labour Party is on the right track if it can embrace these ideas, and turn the early ideas, the notion of constructing a new settlement into convincing policy positions.

Our intention in publishing this pamphlet, indeed the whokle purpose of this new think tank, is to generate debate across the labour movement. If we can shift the terms of debate in a progressive direction, we will be delighted.

Will we look back in twenty years and say – The Spirit Level and the pamphlet Why Inequality Matters were decisive contributors to the mood which won the 2015 election and propelled Britain towards a new progressive settlement? A bit ambitious perhaps, but on the other hand…..

Steve Hart is chair of of Class and political director of Unite

Ed Miliband’s Labour Party is on the right track. Photograph: Getty Images
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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.