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
Photo: Getty
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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.