Why "predistribution" could be a winning agenda for Miliband

How the state can act to prevent inequalities arising in the first place.

"Predistribution", a concept that Ed Miliband discusses in his interview in this week's New Statesman, is one that is easily mocked. But it represents an idea that is central to the challenge of building a fairer economy - that the state, rather than merely ameliorating inequalities through the tax and benefits system, should act to ensure that they do not arise in the first place. (See this recent piece by Yale professor Jacob Hacker, the man who coined the term). To this end, it should legislate for policies such as a living wage and introduce curbs on predatory energy and rail companies, pursuing what Miliband's consigliere, Stewart Wood, has called a "supply-side revolution from the left". As he wrote in a piece earlier this year:

We will need different kinds of banks and stronger competition in the banking industry; corporate governance reforms to incentivise good ownership models and longer-term business strategies; ensuring that companies see the continuing upskilling of their workers as an obligation and not simply a luxury; and the courage to challenge vested interests in the economy that charge excessive prices for energy or train fares and squeeze families' living standards.

In his speech to today's Policy Network conference, Miliband will elaborate on this theme, stating that while redistribution will remain a "key aim of the next Labour government", a greater focus on predistribution is needed. He will advance two main arguments for this claim. Firstly, that the failure of the last Labour government to reduce inequality proves that while redistribution is "necessary" it is "not sufficient", and secondly, that the fiscal constraints a Labour administration will face (based on current forecasts, it would inherit a deficit of £96.1bn or 5.8% of GDP) mean that it will be not able to increase tax credits (the last Labour government's primary redistributive instrument) in the manner that Tony Blair and Gordon Brown did.

The great strength of predistribution is that it does not cost the state a penny to pursue. Rather than relying on taxation to narrow the gap between the rich and the poor, Miliband will harness the instruments of legislation and regulation. Rail companies, for instance, would be barred from raising fares by more than 1% above inflation. As he will say in his speech:

As with much of Miliband's "responsible capitalism" agenda, more detail is required (which, given that we're still not even halfway through this parliament, is hardly surprising) but the ambition is admirable. Under the rubric of predistribution, Labour can finally adopt the kind of policies that will have a transformative effect on the living standards of working people.

In his speech at the Policy Network conference, Miliband will say that redistribution is "necessary" but "not sufficient". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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For the Ukip press officer I slept with, the European Union was Daddy

My Ukip lover just wanted to kick against authority. I do not know how he would have coped with the reality of Brexit.

I was a journalist for a progressive newspaper.

He was the press officer for the UK Independence Party.

He was smoking a cigarette on the pavement outside the Ukip conference in Bristol.

I sat beside him. It was a scene from a terrible film. 

He wore a tweed Sherlock Holmes coat. The general impression was of a seedy-posh bat who had learned to talk like Shere Khan. He was a construct: a press officer so ridiculous that, by comparison, Ukip supporters seemed almost normal. He could have impersonated the Queen Mother, or a morris dancer, or a British bulldog. It was all bravado and I loved him for that.

He slept in my hotel room, and the next day we held hands in the public gallery while people wearing Union Jack badges ranted about the pound. This was before I learned not to choose men with my neurosis alone. If I was literally embedded in Ukip, I was oblivious, and I was no kinder to the party in print than I would have been had I not slept with its bat-like press officer. How could I be? On the last day of the conference, a young, black, female supporter was introduced to the audience with the words – after a white male had rubbed the skin on her hand – “It doesn’t come off.” Another announcement was: “The Ukip Mondeo is about to be towed away.” I didn’t take these people seriously. He laughed at me for that.

After conference, I moved into his seedy-posh 18th-century house in Totnes, which is the counterculture capital of Devon. It was filled with crystal healers and water diviners. I suspect now that his dedication to Ukip was part of his desire to thwart authority, although this may be my denial about lusting after a Brexiteer who dressed like Sherlock Holmes. But I prefer to believe that, for him, the European Union was Daddy, and this compulsion leaked into his work for Ukip – the nearest form of authority and the smaller Daddy.

He used to telephone someone called Roger from in front of a computer with a screen saver of two naked women kissing, lying about what he had done to promote Ukip. He also told me, a journalist, disgusting stories about Nigel Farage that I cannot publish because they are libellous.

When I complained about the pornographic screen saver and said it was damaging to his small son, he apologised with damp eyes and replaced it with a photo of a topless woman with her hand down her pants.

It was sex, not politics, that broke us. I arrived on Christmas Eve to find a photograph of a woman lying on our bed, on sheets I had bought for him. That was my Christmas present. He died last year and I do not know how he would have coped with the reality of Brexit, of Daddy dying, too – for what would be left to desire?

This article first appeared in the 19 January 2016 issue of the New Statesman, The Trump era