Memo to Ed and Ed: ignore the call to embrace austerity

The New-Labour, me-too approach on cuts is a political and economic dead end.

Jim Murphy, long regarded as the leading Blairite in Ed Miliband's shadow cabinet, has attracted a handful of headlines today with his Guardian interview, in which he says Labour must have "genuine credibility" on the economy and reveals that he would accept £5bn of Tory defence cuts.

The shadow defence secretary tells Nick Watt:

It is important to be both credible and popular when it comes to defence investment and the economics of defence. There is a difference between populism and popularity. Credibility is the bridge away from populism and towards popularity. It is difficult to sustain popularity without genuine credibility. At a time on defence when the government is neither credible nor popular it is compulsory that Labour is both.

"Genuine credibility". A phrase right up there with Paul Krugman's "Very Serious People". Don't get me wrong. I support cuts to the UK's defence budget. And, of course, credibility is self-evidently important. But Murphy and his fellow Labour deficit hawks have outsourced the definition of credibility to the Tory party, the right-wing press and neoclassical economists. After all, is "genuine credibility" secured through growth of 0.5 per cent? Or unemployment at 2.6 million? Yet, bizarrely, despite the economy tanking, and Osborne's deficit-reduction plans falling apart, an increasing number of New Labour figures are buying into the Tory narrative on the deficit and embracing their right-wing opponents' monomaniacal obsession with deficit reduction over economic growth and job creation.

As Watt notes:

The timing of Murphy's intervention is significant in domestic and international terms. On the domestic front it comes just as key Labour figures express doubts about the party's economic strategy. These concerns were highlighted in a pamphlet by Lord Mandelson's Policy Network think tank last month which criticised the "vagueness" of Labour's deficit reduction plans.

But embracing austerity is bad politics and bad economics. It is a strategy (if one can call it that despite the fact that I have yet to hear how it will help Labour present a convincing and appealing alternative (yes, alternative!) to the Tories' failed austerity agenda) premised on a myth: that Labour went into the last general election opposed to cuts and committed to higher levels of public spending. This is nonsense. Alistair Darling's plan to halve the deficit over four years was enshrined in the Labour manifesto - to the irritation of some on the centre-left (like Polly Toynbee, David Blanchflower and, er, me!) In fact, Darling went as far as to claim that Labour planned to make "deeper and tougher" cuts than Margaret Thatcher made in the eighties. It's a fiscal strategy that was then adopted by the two Eds, Balls and Miliband, despite the fact that it muddied the ideological and policy water between the Conservatives and Labour and has since enabled coalition ministers to defend their draconian austerity measures with a version of: "Well, Labour's own figures show they would have had to cut almost as much as we are."

If the two Eds, egged on by the likes of Murphy, now truly believe Labour can win the economic argument with a "we want cuts too, but not just yet and not as many", and by going beyond Darling, they are living in a fantasy world. Politically, austerity-lite won't cut it with the voters. Economically, it won't work in spurring much-needed growth (see here, here, here and here). It is time, as a wise man once said, for Labour to say that deficits aren't "immoral" and make the argument that "sometimes deficits are necessary to serve the society you live in". (Interestingly, the wise man in question was David, not Ed, Miliband, during the Labour leadership contest of 2010).

In fact, in today's Guardian panel on "what Ed needs to do now", columnist Zoe Williams hits the nail on the head:

The problem with Ed Miliband's opposition is not that they won't admit their past mistakes but that they don't articulate properly either their mea culpas or their triumphs. A simple graph, rendered in word form (preferably spoken by Miliband himself, rather than Balls) would demonstrate that there was no systemic deficit problem before the crash, and the upkick that made the spending look dangerous was due to the banking crisis. Then they could legitimately apologise for failing to regulate banking; point out that the coalition hasn't regulated it either and we're still subject to the same risks; and mention, furthermore, that Gordon Brown averted disaster over that period. . . If they won't make that case, they are just left tugging at the threads of the austerity drive, which comes across as unconstructive and watery.

To abandon opposition to cuts, as those cuts begin to bite, as voters back a slowdown in the deficit-reduction programme and as more and more data shows that austerity is killing the British economy, is just madness. The New-Labour, me-too approach on cuts is a political and economic dead end and, in my view, best ignored.

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.

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The 8 bits of good news about integration buried in the Casey Review

It's not all Trojan Horses.

The government-commissioned Casey Review on integration tackles serious subjects, from honour crimes to discrimination and hate crime.

It outlines how deprivation, discrimination, segregated schools and unenlightened traditions can drag certain British-Pakistani and Bangladeshi communities into isolation. 

It shines a light on nepotistic local politics, which only entrench religious and gender segregation. It also charts the hurdles faced by ethnic minorities from school, to university and the workplace. There is no doubt it makes uncomfortable reading. 

But at a time when the negative consequences of immigration are dominating headlines, it’s easy to miss some of the more optimistic trends the Casey Report uncovered:

1. You can always have more friends

For all the talk of segregation, 82 per cent of us socialise at least once a month with people from a different ethnic and religious background, according to the Citizenship Survey 2010-11.

More than half of first generation migrants had friends of a different ethnicity. As for their children, nearly three quarters were friends with people from other ethnic backgrounds. Younger people with higher levels of education and better wages are most likely to have close inter-ethnic friendships. 

Brits from Black African and Mixed ethnic backgrounds are the most sociable it seems, as they are most likely to have friends from outside their neighbourhood. White British and Irish ethnic groups, on the other hand, are least likely to have ethnically-mixed social networks. 

Moving away from home seemed to be a key factor in diversifying your friendship group –18 to 34s were the most ethnically integrated age group. 

2. Integrated schools help

The Casey Review tells the story of how schools can distort a community’s view of the world, such as the mostly Asian high school where pupils thought 90 per cent of Brits were Asian (the actual figure is 7 per cent), and the Trojan Horse affair, where hardline Muslims were accused of dominating the curriculum of a state school (the exact facts have never come to light). 

But on the other hand, schools that are integrated, can change a whole community’s perspective. A study in Oldham found that when two schools were merged to create a more balanced pupil population between White Brits and British Asians, the level of anxiety both groups felt diminished. 

3. And kids are doing better at school

The Casey Report notes: “In recent years there has been a general improvement in educational attainment in schools, with a narrowing in the gap between White pupils and pupils from Pakistani, Bangladeshi and African/Caribbean/Black ethnic backgrounds.”

A number of ethnic minority groups, including pupils of Chinese, Indian, Irish and Bangladeshi ethnicity, outperformed White British pupils (but not White Gypsy and Roma pupils, who had the lowest attainment levels of all). 

4. Most people feel part of a community

Despite the talk of a divided society, in 2015-16, 89 per cent of people thought their community was cohesive, according to the Community Life Survey, and agreed their local area is a place where people from different backgrounds get on well together. This feeling of cohesiveness is actually higher than in 2003, at the height of New Labour multiculturalism, when the figure stood at 80 per cent. 

5. Muslims are sticklers for the law

Much of the Casey Report dealt with the divisions between British Muslims and other communities, on matters of culture, religious extremism and equality. It also looked at the Islamophobia and discrimination Muslims face in the UK. 

However, while the cultural and ideological clashes may be real, a ComRes/BBC poll in 2015 found that 95 per cent of British Muslims felt loyal to Britain and 93 per cent believed Muslims in Britain should always obey British laws. 

6. Employment prospects are improving

The Casey Review rightly notes the discrimination faced by jobseekers, such as study which found CVs with white-sounding names had a better rate of reply. Brits from Black, Pakistani or Bangladeshi backgrounds are more likely to be unemployed than Whites. 

However, the employment gap between ethnic minorities and White Brits has narrowed over the last decade, from 15.6 per cent in 2004 to 12.8 per cent in 2015. 

In October 2015, public and private sector employers responsible for employing 1.8m people signed a pledge to operate recruitment on a “name blind” basis. 

7. Pretty much everyone understand this

According to the 2011 census, 91.6 per cent of adults in England and Wales had English as their main language. And 98.2 per cent of them could speak English. 

Since 2008-2009, most non-European migrants coming to the UK have to meet English requirements as part of the immigration process. 

8. Oh, and there’s a British Muslim Mayor ready to tackle integration head on

The Casey Review criticised British Asian community leaders in northern towns for preventing proper discussion of equality and in some cases preventing women from launching rival bids for a council seat.

But it also quoted Sadiq Khan, the Mayor of London, and a British Muslim. Khan criticised religious families that force children to adopt a certain lifestyle, and he concluded:

"There is no other city in the world where I would want to raise my daughters than London.

"They have rights, they have protection, the right to wear what they like, think what they like, to meet who they like, to study what they like, more than they would in any other country.”

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.