One year after the 2011 England Riots, what do we know?

The Equality Trust presents their digest of the causes of the riots.

Children and parents, personal resilience, hopes and dreams, the brands, the usual suspects, police and the public, community engagment, involvement and cohesion. What do these have in common? They were identified as key themes to address in the wake of the 2011 England Riots.

The Government-commissioned Riots, Communities and Victims Panel put the themes together. The Equality Trust’s Research Digest 5 (pdf), out today, reflects on the themes and summarises academic research on the relationship between the themes and income inequality:

• Children and parents: British epidemiologists Kate Pickett and Richard Wilkinson have explored the link between income inequality and the UNICEF index of child well-being. What they found is that where inequality is high, child well-being tends to be lower.

• Building personal resilience: Relative deprivation adds to the stresses of family and community life, so removing sources of resilience (pdf). Over time stresses accumulate, and resilence is often worn away.

• Hopes and dreams: In wealthy, market democracies, inequality is a good predictor of how likely it is that a person who is born poor will stay poor. As far as dreams go, if these do not match up to real prospects, it is easy to see why some young people would think that they have no stake in society. According to the OECD, social mobility is less likely in the UK than in any other wealthy country in the world. There are many possible reasons for this, including resource-rich neighbourhoods, good schools, better preparation for higher education, family and friend networks, and snobbery and prejudice – all of which are available differentially to certain groups in a more stratified society. Those born less lucky benefit less from good neighbourhoods, good schools, and family networks, so creating a stickiness of family background for the more disadvantaged that it difficult to escape.

• The brands: Relative deprivation has been linked to conspicuous consumption and consumerism.

• The usual suspects [criminality]: Crime, including violent and acquisitive crime, has been linked to inequality—in multiple contexts and through multiple methodologies (pdf).

• Police and the public: Where inequality is high, there is evidence that there is more deadly use of force on the part of police. One young person from Tottenham commented:

“Police need to be more open. Just a short statement after Mark Duggan’s death would have helped. And if any police officer does anything wrong they should be dealt with. Need to show that they are not above the law themselves. We need to be able to trust them.” (Young person, Tottenham, National Centre for Social Research).

• Community engagement, involvement and cohesion: From the World Values Survey there is evidence that inequality reduces social cohesion, weakens community life and lowers levels of trust.

On the first anniversary of the England Riots of 2011, it is useful to reflect on our society and the outbreak of riots one year ago, in August. According to the Equality Trust’s report, income inequality affects starting points (children and parents), trajectories (personal resilience, hopes and dreams) and outcomes (consumerism, violent crime and excessive force by police). The Digest concludes that, if we want to foster a cohesive, shared society, we should be aiming for a less stratified society, with high levels of trust and strong communities.

Broom rat. Photograph by Infrogmation/CC-BY-SA

The Equality Trust is an independent, evidence based campaign working to reduce income inequality in order to improve the quality of life in the UK.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR