Has Red Toryism peaked already?

Cameron's flirtation with Red Toryism, like Blair's with stakeholding capitalism, was entirely super

The self-styled 'Red Tory' Phillip Blond appeared to be in the ascendancy earlier this year as David Cameron appeared alongside him at the launch of Demos's Progressive Conservatism project. Speculation that Cameron was prepared to embrace significant elements of Red Toryism intensified when his speech on "moral capitalism" to the World Economic Forum in Davos drew heavily on Blond's work. He even poached Blond's smart line on "recapitalising the poor".

Yet nearly six months on, Blond has little to show for his consistent attempts to woo the Tory leader. He has argued that the Conservatives should abandon their support for the part-privatisation of Royal Mail and outline a plan to extend the Post Office's retail banking function. But even after Lord Mandelson's policy retreat the Tories remain committed to privatisation. Cameron also shows no sign of support for a genuinely progressive tax system.

The Guardian's Tom Clark thinks he has an explanation. Noting the party's failure to support the tighter competition laws advocated by Blond, he writes:

While this policy is attractive, a Tory government would struggle to implement it, because it clashes with the big Conservative business interests. We arrive at the nub of the argument for ingesting Red Toryism with a shovel-load of salt. Clever people, of whom Blond is indubitably one, are prone to over-intellectualising politics - failing to grasp that it is a game where interests trump ideas. In the Tory party, the weightiest interest is property - not the abstract notion, but the real security of those who happen to own it.

It's hard to avoid the conclusion that Cameron's flirtation with Red Toryism was no more substantial than Tony Blair's fleeting support for Will Hutton's brand of stakeholder capitalism in his 1996 Singapore speech.

Hutton, briefly touted as the philosopher-king of New Labour, soon found himself sidelined in favour of Anthony Giddens as it became clear that his ideas would require a degree of state intervention intolerable for Blair. Just as social democrats speak longingly of Blair's Singapore speech, expect the Red Tories to soon wistfully reminisce about Cameron's Davos speech.

For all the seductiveness of Blond's analysis, it's increasingly clear that Conservative policy will continue to owe more to Arthur Laffer than to the Red Tories.

George Eaton is political editor of the New Statesman.

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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.