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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Richmond is a wake-up call for Labour's Brexit strategy

No one made Labour stand in Richmond Park. 

Oh, Labour Party. There was a way through.

No one made you stand in Richmond Park. You could have "struck a blow against the government", you could have shared the Lib Dem success. Instead, you lost both your dignity and your deposit. And to cap it all (Christian Wolmar, take a bow) you self-nominated for a Nobel Prize for Mansplaining.

It’s like the party strategist is locked in the bowels of HQ, endlessly looping in reverse Olivia Newton John’s "Making a Good Thing Better".

And no one can think that today marks the end of the party’s problems on Brexit.

But the thing is: there’s no need to Labour on. You can fix it.

Set the government some tests. Table some amendments: “The government shall negotiate having regard to…”

  • What would be good for our economy (boost investment, trade and jobs).
  • What would enhance fairness (help individuals and communities who have missed out over the last decades).
  • What would deliver sovereignty (magnify our democratic control over our destiny).
  • What would improve finances (what Brexit makes us better off, individually and collectively). 

And say that, if the government does not meet those tests, the Labour party will not support the Article 50 deal. You’ll take some pain today – but no matter, the general election is not for years. And if the tests are well crafted they will be easy to defend.

Then wait for the negotiations to conclude. If in 2019, Boris Johnson returns bearing cake for all, if the tests are achieved, Labour will, and rightly, support the government’s Brexit deal. There will be no second referendum. And MPs in Leave voting constituencies will bear no Brexit penalty at the polls.

But if he returns with thin gruel? If the economy has tanked, if inflation is rising and living standards have slumped, and the deficit has ballooned – what then? The only winners will be door manufacturers. Across the country they will be hard at work replacing those kicked down at constituency offices by voters demanding a fix. Labour will be joined in rejecting the deal from all across the floor: Labour will have shown the way.

Because the party reads the electorate today as wanting Brexit, it concludes it must deliver it. But, even for those who think a politician’s job is to channel the electorate, this thinking discloses an error in logic. The task is not to read the political dynamic of today. It is to position itself for the dynamic when it matters - at the next general election

And by setting some economic tests for a good Brexit, Labour can buy an option on that for free.

An earlier version of this argument appeared on Jolyon Maugham's blog Waiting For Tax.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.