Is Alan Johnson the right man for the job of shadow chancellor?

The coalition, and the cuts consensus, have to be challenged, not indulged.

I was on Radio 4's World Tonight and BBC2's Newsnight yesterday discussing the appointment of the former home secretary Alan Johnson as the new shadow chancellor. I don't think any of us saw that coming -- in fact, I don't think Alan Johnson saw it coming! When I spoke to him at the Labour party conference in Manchester, he seemed keen to shadow the Deputy Prime Minister, Nick Clegg, and hold the coalition government's constitutional and electoral reform agenda to account. He has never served in the Treasury before and is not an expert on the economy.

Nick Robinson tells the following anecdote on his blog:

I once told Alan Johnson that some in the cabinet were arguing that he should replace Alastair Darling as chancellor. His communication skills, wry good humour and common sense were regarded by many as making him the perfect foil to Gordon Brown and more likely to cheer up the nation up than Darling himself.

I well recall his reaction – he looked like he'd swallowed a wasp. Unlike the other obvious candidate back then – Ed Balls – he had no economic training and was not desperate to do the job.

Regular readers of this blog will know that I was hoping Ed Balls would be made shadow chancellor. I believe he was the best-qualified person for the job – and he deserved it, too, having delivered a scathing critique of Osbornomics at Bloomberg in August, and having harried and humiliated Michael Gove at the despatch box again and again over the summer. I also think it is odd that the two most formidable economists on the Labour front bench should be confined to home affairs (Balls) and foreign affairs (Yvette Cooper), where their impressive grasp of macroconomics will not be needed and where Cooper, in particular, might be wasted.

But what do I know? I'm just a hack. Ed Miliband is the leader and I'm guessing he has a plan. Plus, Johnson is an experienced and able politician, a great communicator with a fantastic sense of humour, as well as a fascinating backstory that contrasts with George Osborne's privileged upbringing.

Now, there has been much debate over the past 24 hours as to whether the Johnson appointment and the decision to deny Balls the post he so craved is a sign of strength or weakness on the part of Miliband. I was on BBC Radio Wales with the former Blair adviser John McTernan this morning: McTernan thinks the new Labour leader showed "strength" in giving Balls the home affairs, rather than the Treasury, brief. Indeed, the narrative emerging from the Blairites is "Ed Mili faced down Ed Balls".

But there is another view that says that Miliband the Younger capitulated to the Blairites and the right-wing press, who like to refer to him as "Red Ed" and to Ed Balls as a "deficit denier", by going with the safe option of Alan Johnson, a supporter of the candidate (Mili-D) who was backed by more Labour MPs than Mili-E was. Kevin Maguire, for example, says:

Ed Miliband's fluffed his first big call. Appointing Alan Johnson as Labour shadow chancellor is to stick with the Alistair Darling line on halving the deficit when Labour lost the election. The bold move was to put Ed Balls or Yvette Cooper in the job and shift the Labour position to slower cuts to keep the economy recovering.

I'm not sure where I stand on this. Perhaps, as I noted in a CIF piece yesterday, the personnel issue is irrelevant and we should all wait to see what Labour's policy response is to George Osborne's Spending Review on 20 October.

Ed Miliband has repeatedly referred to the Alistair Darling plan for deficit reduction (that is to say, halving the deficit over four years) as a "starting point" and told Channel 4 News the day after his conference speech that he'd like to do more with taxation, and less with spending cuts, than Darling had allowed for. Johnson's appointment might be part of a deliberate strategy by Miliband to take charge of the party's economic and, specifically, fiscal policy rather than outsource it to the shadow chancellor/chancellor (as Tony Blair did in the Nineties and Noughties).

It is worth remembering that Miliband taught economics at Harvard during his sabbatical in 2003-2004 and chaired the Treasury's Council of Economic Advisers between 2004 and 2005. Unlike Blair, and perhaps Johnson, he understands economics.

Meanwhile, the coalition's fiscal and welfare policies are in disarray – at the Conservative conference, a cut in child benefit for higher-rate taxpayers to save £1bn was followed by a transferable tax allowance for married couples which will cost £500m! In today's Daily Telegraph, Chris Huhne, the Lib Dem Energy Secretary, says that the proposed spending cuts are not "lashed to the mast" and that it "may be appropriate" to alter the plans in the event of a serious economic downturn. Like Ken Clarke, the Tory Justice Secretary, Huhne also admits that a double-dip recession is a possibility.

So now is not the time for Ed Miliband to go wobbly on deficit reduction. The opposition has to make clear that deep and immediate cuts will make the deficit get bigger, not smaller. And Alan Johnson needs to understand the Keynesian argument, and the "moral" argument – as his preferred leadership candidate, David Miliband, put it during the Compass hustings in June – for running deficits in downturns.

Here are some people Johnson should perhaps try to speak to for advice this week, ahead of the SR on 20 October:

* Paul Krugman

* David Blanchflower

* Anne Pettifor

* Martin Wolf

* Ed Balls :-)

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

India Bourke
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Pegida UK: the new face of Britain’s far-right movement, and how to challenge it

“Let them drink tea,” Birmingham tells Islamophobes.

“Spooky,” is how Pegida UK – the latest branch of a global, anti-Islam, protest group  chooses to describe its silent march on the outskirts of Birmingham. 

“Islam is Nazism incarnate,” announces its new leader, Paul Weston, to a few hundred soggy, sober, brolly-clad protesters waving “Trump is Right” placards. 


Pegida UK protestors march through the rain. Photos: India Bourke

Such numbers are a far cry from the tens of thousands who attended the movement’s inaugural rallies in Germany in 2014, in response to the perceived “Islamisation” of Europe. And they would be derisory if the cheers Weston receives from his supporters weren’t quite so chilling, nor echoed so far.

For Pegida UK is not alone. From Calais to Canberra, thousands marched in the name of the movement’s toxic platform of anti-immigration and anti-Islam last weekend. I went to see the Birmingham rally to find out why such a protest is taking place in Britain.

***

"Today is the first of many European wide demonstrations that will bring people together like never before,” Tommy Robinson, UK founder and ex-EDL leader, tells the assembled crowd. “It's planting the seed of something huge.”

Robinson hopes to exploit a gap within Britain’s far-right. Traditional groups are fractured: the British National Party was decimated at the last election, standing just eight of a previous 338 candidates. In its place, a swell of smaller, extremist bodies – from the Sigurd Legion to National Action – are pressing an ever more militant agenda. Pegida hopes to scale back the hooliganism in order to garner a wider appeal, but it shares these groups’ confrontation with Islam, and each may spur the other on.

“With Pegida we’re seeing the rise of a seminal new threat,” says Birmingham MP Liam Byrne. “In the rise of Isis and politicians like Donald Trump, you have forces determined to promote a clash of civilisations between Islam and the West. Pegida is trying to surf that wave and make sure it crashes on our shores.

Opponents hope the movement will suffer the same implosion that felled the BNP and EDL, with both leaning  too much on their leaders’ personal brands. Robinson certainly seems as adolescent as ever: laughing as he swipes away a photo of a scantily-clad blonde on his iPhone screen to show me the international Pegida leadership’s “hidden” Facebook group.

Their new apparently "suited and booted" middle-class following is also less than wholehearted. One pin-striped IT executive I speak to seems embarrassed by the whole affair: “I’m just a cowardly family man who can’t see a solution being offered by mainstream politicians. I’d be sacked if they knew I was here,” he says, declining to give his name. 


A Pegida protestor poses in front of the main stage.

As long as such hesitation prevails, Pegida UK will struggle. Still, there’s a sense more needs to be done to ensure its demise.

Matching protest with counter-protest is the traditional leftwing response, and this weekend saw thousands of Pegida opponents take to the streets across Europe. Yet, in some cases, direct confrontation can risk drowning out – even alienating – the very voices it seeks to win over.

“Smash the facists into the sea,” instructed the Twitter account of the North London Antifa group ahead of last weekend’s far-right, anti-immigration protest in Dover, where injuries were sustained by demonstrators on both sides.

***

Instead, many now believe a better answer begins with that most British of pastimes: tea and a chat.

On the day before the Birmingam march, hundreds of the city’s cross-party leaders, religious figures and citizens gathered together at Birmingham Central Mosque to share their concerns over shortcake and jalebi.

“Groups like Pegida are parasites on the real concerns people have,” says John Page from the anti-extremism group Hope not Hate. “So we have to listen to these issues to close the cracks.

Initiatives around the city will attempt to take this approach, which sets a welcome lead not just for the UK, but Europe too.

The blanket smearing by groups like Pegida of Islam as a religion of sexist, homophobic Jihadi Johns places the burden of action disproportionately on the city’s Muslims. “It is our turn now to suffer these attacks,” says Mr Ali, Birmingham Central Mosque’s 42-year-old administrator. “It was the Irish, then the Jews, and now it is the time for us. But we are proud to be British Muslims and we will do what we can to defend this country.” 

A permanent visitors gallery, Visit-my-Mosque events, and publications that condemn Isis, are just some of the ways the community is challenging demonisation. It is even hosting a documentary crew from Channel 4 – a bold move in a city still reeling from Benefits Street.


Birmingham resident, Luke Holland, at a peaceful counter-protest in the city centre.

Mr Ali says: “The extreme right know nothing about Islam, but neither do many Muslim extremists.” The mosque is therefore in the process of formulating a “code of conduct”, making clear that hate speech of any kind is unacceptable.

"We have to help young people become the next Chamberlains and Cadburys and Lucases of this city," regardless of background, says Labour councillor Habib Rehman. Instead of letting them slip into despair and extremism of any kind, "we have to tell them: 'Yes You Khan!’”

Tea and talk is not the most dramatic response to Pegida’s claim it will have “100,000 decent people on the street” by the end of the year. But, in Birmingham at least – the city of Typhoo, where bhangra is as familiar as Bournville, and “No dogs, no Irish!” still sits heavy on the collective mind – tea, for now, means hope.

India Bourke is the New Statesman's editorial assistant.