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Mehdi Hasan liked Ken Livingstone - but he was his own worst enemy

Defeat for Livingstone can't be pinned on Miliband.

So Ken Livingstone lost. Depressing, eh?

But perhaps not surprising. He had a bad press from start to finish (step forward, Evening Standard!) and, let's be honest, he ran a bad campaign. Then there's the fact that, as Adam Bienkov points out, in an excellent blogpost on Staggers, it wasn't Ken's (popular) policies that cost him the election, or his particular political agenda

. . . but the fact that it was Ken calling for that agenda. The sad truth is that after 41 years in London politics, too many Londoners have simply stopped listening to him. Every politician has a shelf life, a point where voters look at them and coldly decide to give another product a go. For Ken that happened in 2008 and he has spent the past four years failing to come to terms with it. . . Boris won because Londoners saw him as the most charismatic and likeable candidate. Ken lost, because after 41 long years too many Londoners have simply had enough.

In fact, I'm amazed that Boris's victory was so narrow in the end. Remember: Ken lost by just 62,000 votes out of the two million votes cast. Not bad, huh? 

Of course, the counter-argument is that Ken should have won by a mile, given the unpopularity of the Tory government and its austerity programme, Boris's buffoonish tendencies and Labour's big lead in London over all the other parties (as illustrated by the Opposition's impressive gains on the GLA). I don't deny this. I'm merely pointing out that in the various post-election post-mortems, we shouldn't exaggerate Ken's unpopularity or pretend "London" as a whole rejected him. I also refuse to believe that Oona King would have beaten Boris if she'd been chosen as the candidate instead, and I've seen no evidence to suggest that former Home Secretary Alan Johnson could have been persuaded to stand down from the frontbench and from parliament in order to run against Boris - had the Labour Party agreed to a slower selection process. 

I have to say, while I have my own criticisms of Ken and his campaign, the astonishing level of enmity and hatred expressed towards the Labour was out of all proportion to any of his missteps and misdeeds, both real and imagined. And it wasn't just the usual suspects in the right-wing press - the Evening Standard, the Daily Mail, the Telegraph. There was also the collection of (usual?) suspects on the "left": Nick Cohen, Martin Bright, Dan Hodges, David Aaronovitch et al. Even normally sensible centre-left commentators, like the Guardian's Jonathan Freedland, couldn't bring themselves to back the Labour candidate. "I don't want to see Boris Johnson re-elected," wrote Freedland, "but I can't vote for Ken Livingstone." 

I responded to Freedland, who I consider to be a friend, in a Guardian column of my own:

This is an evasion, pure and simple: if you don't want to see Boris re-elected then you have to vote for Ken. Sorry, there are no two ways about it.

Actions, as they say, have consequences. Whatever Ken's faults, were they really that bad or unforgivable that these lefties were willing to allow Boris, the arch-Thatcherite, back in for another four years? Really?

Freedland's particular gripe with Ken was over the latter's relationship with the Jewish community. Personally, I don't think that's what cost Ken the election - it was the tax avoidance, stupid. 

Ken handed his opponents a club with which to beat him, day after day, and did little to defend himself, with aides foolishly dismissing the row as a "non-story". But, as I wrote in a column in the New Statesman in March:

Principles matter. And so, too, does perception. So what on earth was Team Ken thinking? Why did none of the former mayor's aides raise any objections to his legal yet dodgy tax arrangements? The simple truth is this: you cannot run as the populist, banker-bashing candidate, the one who backs higher taxes on "rich bastards", if you're quietly channelling hundreds of thousands of pounds of your own earnings into a company jointly owned with your wife. You just can't.

Or as the headline warned:

Sorry, Ken — own up or accept the consequences

I so wanted to be proved wrong on this - but I wasn't.

Still, the silver lining: David Cameron won't be smiling this weekend. His party lost more than 400 seats across the land while the biggest threat to his leadership of the Conservative Party was re-elected in London. Right-wing backbenchers are getting more and more frustrated with his leadership - and, in particular, his partnership with the hapless Nick Clegg and the imploding Lib Dems. Meanwhile, Ed Miliband's Labour Party gained more than 800 seats, making in-roads in the south of England at the same time as holding off the SNP in Scotland. The Labour leader can't be blamed for Ken's defeat - Labour's mayoral candidate was elected, fair and square, the day before Miliband's own victory in the party leadership election in September 2010. Ed inherited Ken and did his best to help get him elected.

So far in this parliament, Miliband and Labour have been defeated only by Alex Salmond (in the Scottish Parliament elections last May); by George Galloway in Bradford West; and by Boris Johnson in London. None of those three men, of course, will be competing with Ed Miliband for the keys to Number 10 come 2015. The man who will, however, is proving to be a serial loser. As I point out in my column this week, the Don't Overestimate Cameron Association is growing in size. 

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 Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump