Cooperation must be at the heart of Labour's renewal

Councils are already implementing a model that could revolutionise public services nationally.

The next Labour government will face a double whammy of rising expectations, with less money for public services and welfare provision. If we want to protect people who rely most on public services, we will need to do differently with less. If we try and do more with less, we will fall flat on our faces. Different with less can work if we give more decision-making power to the people and communities who use those public services, because they have a direct interest in making sure services are as effective as possible. Whatever the amount of funding on offer, empowering people and their communities creates better outcomes. Labour councils around the country are already putting this idea into practice, and it offers a model that can be extended right across public services nationally.

Many council or housing association tenants are dissatisfied with the standard of housing management they live with. Repairs are done late and to a poor standard. Housing officers can be dismissive and slow to respond to requests for help. Anti-social neighbours are left unchallenged. These things happen because the tenants themselves have no direct control over the people providing the services. But this changes when tenants elect local boards that appoint the housing managers, or in cooperative housing schemes where everyone living on an estate has a share in owning it. Estates like Blenheim Gardens in Brixton which is run by an elected resident management organisation, or Coin Street Housing Cooperative on London’s South Bank, show that when tenants are in control, services improve faster.

As we grow older we rely more on social care and home help. For someone who’s lived their life independently it can be a frightening experience to suddenly be told who will come into your home and when, what you will eat, when you will be bathed, and even when you will go to the toilet. With care staff under intolerable pressure normal human interaction is reduced to a perfunctory minimum and the older person’s own preferences are barely considered. This is no way to treat someone towards the end of a lifetime of hard work and self-reliance. This situation can be turned round by setting a budget for the older person and letting them choose, with professional advice, the help and services they would prefer. Take this a step further and let people combine their budgets in ‘micro-mutuals’ of service users and you put real purchasing power in their hands, forcing providers to offer services that better meet their clients’ needs with higher standards of care and support tailored to each individual.

Some inner-city housing estates suffer high levels of violent youth crime. There are estates in parts of London where the majority of young people are involved in gangs that carry knives and guns and involve themselves in drug dealing, robbery and assaults. But there are also examples of initiatives that successfully steer young people away from harm. On the Myatts Field Estate in Brixton the community took action itself, using their own understanding of the problems in their own neighbourhood and making use of their own ability to reach out to the young people getting involved in gangs. They set up a range of activities including informal mentoring, sports, dance, cookery, even trips to other parts of London to open their young people’s eyes to the positive alternatives available to them. Over three years they got 80 young people out of gangs and steered their lives back on track – a rate of success dramatically more successful than the council’s own youth interventions despite having only a tiny fraction of the resources. This demonstrates the power of community leadership, so in Lambeth we are setting up a youth services trust owned by local people that will support each estate to identify and bring in the services and activities that will make a difference to their young people. This isn’t about turning amateurs into professionals, it’s about putting the professionals under the control of the people who live with the problem. There are safeguards to make sure no one section of the community can exclude any other, but instead of fighting the system to get the change they need the community can use their energy to fight the problem.

Public services become more effective when the people who use them are in charge. By shifting power to service users we create a partnership of equals that leads to genuine cooperation between providers and the people they serve. The result is better services and more resilient communities. Over twenty Labour councils are working together as part of the Cooperative Councils Network to pilot new approaches like these across all our services. By empowering people we can give them back the power to change their lives. We cannot continue locking vulnerable people into dependency by taking away their ability to influence the things that are done to them. We live in a highly diverse society, and we cannot meet such a complex pattern of need if we seek to control everything from the centre. But this agenda is not just about changing Britain, it’s also about winning back support for Labour. People want public services that meet their needs better, and they want more control over the decisions that affect their lives. Change is never easy, but if we refuse to change we will get stuck in a cycle of salami-slicing services that will leave people in despair. We recognise there is no bottomless pit of money – times are hard, and if we pretend otherwise people won’t vote for us. So we need to show we can do things better for less by putting the resources of the state under the control of the people who rely on it.

Lambeth was a by-word for what went wrong with Labour in the 1980s. Today Lambeth, alongside other Labour councils, is building a new agenda based on empowerment and cooperation that can help shape Labour’s renewal in the 2010s.

 

Getty
Show Hide image

By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman