Miliband backs a National Investment Bank

The Labour's leader proposal is good economics and smart politics.

Ed Miliband's speech on banking this morning received little media attention, largely since the main points were previewed in his Mail on Sunday interview. But one story that few have noticed is that the Labour leader has come out in support of a National Investment Bank.

In an interview with the New Statesman last September, Miliband said: "It's an interesting idea. It's something Ed [Balls] and I have talked about. It's definitely an idea worth exploring." He went on to commission Nick Tott, a former partner of Herbert Smith LLP, to examine the case for such an institution. Toot's report has now been published and has concluded that "there is a strong case for a British Investment Bank." In his speech, Miliband said:

Partly because it’s always cheaper for banks to lend to big companies than small ones.

We don’t believe the banks we already have will be equal to the task of lending enough to small businesses.

That’s why we believe there is a case for a British Investment Bank.

Government recognising its role to guarantee lending to small business to provide the long-term finance it needs.

It was a similar institution in the United States which gave a young entrepreneur a loan in the early eighties when nobody else understood his sector.

His name was Steve Jobs.

And he founded Apple.

Every other major country understands that government needs to act to tackle this problem of financing.

It’s time that British business stopped having to compete with one hand tied behind its back.

As Robert Skidelsky argued in our special "plan B" issue last year, a National Investment Bank, with the power to borrow [unlike the coalition's Green Bank], and a mandate to invest in infrastructure, would both stimulate recovery and support long-term growth.

Miliband's decision to support the proposal is also smart politics. Vince Cable, who called for part of RBS to be converted into a National Investment Bank in a private letter to David Cameron, is growing increasingly frustrated with the coalition's failure to stimulate growth. In his interview with Andrew Marr yesterday, he accused the banks of "throttling the recovery" through their obsession with obsession with "short-term trading profits". It is precisely this problem that a National Investment Bank is designed to address. But the constraints of the coalition mean Cable is unable to say so. In coming out for an Investment Bank, Miliband is reminding the Lib Dems that they are, in many respects, closer to Labour on economic policy than the Tories.

Labour leader Ed Miliband said a National Investment Bank would provide "long-term finance". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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"We repealed, then forgot": the long shadow of Section 28 homophobia

Why are deeply conservative views about the "promotion" of homosexuality still being reiterated to Scottish school pupils? 

Grim stories of LGBTI children being bullied in school are all too common. But one which emerged over the weekend garnered particular attention - because of the echoes of the infamous Section 28, nearly two decades after it was scrapped.

A 16-year-old pupil of a West Lothian school, who does not wish to be named, told Pink News that staff asked him to remove his small rainbow pride badge because, though they had "no problem" with his sexuality, it was not appropriate to "promote it" in school. It's a blast from the past - the rules against "promoting" homosexuality were repealed in 2000 in Scotland, but the long legacy of Section 28 seems hard to shake off. 

The local authority responsible said in a statement that non-school related badges are not permitted on uniforms, and says it is "committed to equal rights for LGBT people". 

The small badge depicted a rainbow-striped heart, which the pupil said he had brought back from the Edinburgh Pride march the previous weekend. He reportedly "no longer feels comfortable going to school", and said homophobia from staff members felt "much more scar[y] than when I encountered the same from other pupils". 

At a time when four Scottish party leaders are gay, and the new Westminster parliament included a record number of LGBTQ MPs, the political world is making progress in promoting equality. But education, it seems, has not kept up. According to research from LGBT rights campaigners Stonewall, 40 per cent of LGBT pupils across the UK reported being taught nothing about LGBT issues at school. Among trans students, 44 per cent said school staff didn’t know what "trans" even means.

The need for teacher training and curriculum reform is at the top of campaigners' agendas. "We're disappointed but not surprised by this example," says Jordan Daly, the co-founder of Time for Inclusive Education [TIE]. His grassroots campaign focuses on making politicians and wider society aware of the reality LGBTI school students in Scotland face. "We're in schools on a monthly basis, so we know this is by no means an isolated incident." 

Studies have repeatedly shown a startling level of self-harm and mental illness reported by LGBTI school students. Trans students are particularly at risk. In 2015, Daly and colleagues began a tour of schools. Shocking stories included one in which a teacher singled out a trans pupils for ridicule in front of the class. More commonly, though, staff told them the same story: we just don't know what we're allowed to say about gay relationships. 

This is the point, according to Daly - retraining, or rather the lack of it. For some of those teachers trained during the 1980s and 1990s, when Section 28 prevented local authorities from "promoting homosexuality", confusion still reigns about what they can and cannot teach - or even mention in front of their pupils. 

The infamous clause was specific in its homophobia: the "acceptability of homosexuality as a pretended family relationship" could not be mentioned in schools. But it's been 17 years since the clause was repealed in Scotland - indeed, it was one of the very first acts of the new Scottish Parliament (the rest of the UK followed suit three years later). Why are we still hearing this archaic language? 

"We repealed, we clapped and cheered, and then we just forgot," Daly says. After the bitter campaign in Scotland, in which an alliance of churches led by millionaire businessman Brian Souter poured money into "Keeping the Clause", the government was pleased with its victory, which seemed to establish Holyrood as a progressive political space early on in the life of the parliament. But without updating the curriculum or retraining teaching staff, Daly argues, it left a "massive vacuum" of uncertainty. 

The Stonewall research suggests a similar confusion is likely across the UK. Daly doesn't believe the situation in Scotland is notably worse than in England, and disputes the oft-cited allegation that the issue is somehow worse in Scotland's denominational schools. Homophobia may be "wrapped up in the language of religious belief" in certain schools, he says, but it's "just as much of a problem elsewhere. The TIE campaign doesn't have different strategies for different schools." 

After initial disappointments - their thousands-strong petition to change the curriculum was thrown out by parliament in 2016 - the campaign has won the support of leaders such as Nicola Sturgeon and Kezia Dugdale, and recently, the backing of a majority of MSPs. The Scottish government has set up a working group, and promised a national strategy. 

But for Daly, who himself struggled at a young age with his sexuality and society's failure to accept it, the matter remains an urgent one.  At just 21, he can reel off countless painful stories of young LGBTI students - some of which end in tragedy. One of the saddest elements of the story from St Kentigern's is that the pupil claimed his school was the safest place he had to express his identity, because he was not out at home. Perhaps for a gay pupil in ten years time, that will be a guarantee. 

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