A "one nation market" could turn the economy on its head

Far beyond calls for a "responsible capitalism", Miliband should push for a "one nation market" that can really benefit the many, rather than the few.

We have absorbed the narrative and enjoyed the dynamism, but the great challenge will now rest in its practical execution. In the run up to the next election, the crucial divergences between the major political parties will concern the conversion of their philosophy into practice. While the underpinning philosophy can lend itself to subtlety, its execution will inevitably be quite different.

We have only glimpsed forthcoming Labour policy this conference season, but perhaps enough to gauge its general direction and approach. From Caroline Flint, the shadow energy and climate change secretary, have emerged plans to abolish the present energy regulator, Ofgem, and impose greater regulation on the country's retail energy market. And Gareth Thomas, the shadow minister for civil society, and Chris Leslie, the shadow financial secretary, have called for more stringent requirements on the banks to deliver on transparency and to invest a proportion of profits in communities - much like the Community Reinvestment Act pioneered in the US.

All of which is very well for those footing the bills. But for the "one nation" philosophy to really succeed, Ed Miliband - and those of all parties and none - must complement such regulation with a far more ambitious agenda. Far beyond calls for a "responsible capitalism", Miliband should push for a "one nation market" - a market that can really benefit the many, rather than the few.

Increased regulation of the energy retail market, for example, could see caps on energy bills and a relief for consumers, but will not in the long-term decentralise electricity distribution, or create greater retail competition to break up its supply. Policy should instead seek to grant "the many" the power to take hold of such markets and indeed open up the opportunity for communities and smaller groups to enter in.

As argued in a ResPublica paper published earlier this year, communities could  themselves be perceived as the potential producers and owners, rather than simply passive consumers, of their electricity generation and supply. A recent growth in co-operative energy models and a greater interest in community shares, have really revealed the nation's appetite for such widespread ownership and devolved investment to take place. "Responsible capitalism" may hold large energy companies to account, but a "one nation market" could turn a consolidated economy completely on its head.

Miliband's "one nation" call, coupled with Jon Cruddas's drive for a politics of the "common good" and a better "big society", has opened up the opportunity for such an agenda to emerge. Turning the philosophy into transformative practice will now be the challenge, and may indeed be the pivot upon which the next election is won or lost.

Caroline Julian is a senior researcher and project manager at the think-tank ResPublica, and co-author of Re-energising Our Communities: Transforming the energy market through local energy production

Ed Miliband applauds shadow home secretary Yvette Cooper at the Labour Party conference in Manchester. Photograph: Getty Images.

Caroline Julian is a senior researcher and project manager at the think-tank ResPublica.

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Cabinet audit: what does the appointment of Andrea Leadsom as Environment Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for Environment, Food and Rural Affairs.

A little over a week into Andrea Leadsom’s new role as Secretary of State for Environment, Food and Rural Affairs (Defra), and senior industry figures are already questioning her credentials. A growing list of campaigners have called for her resignation, and even the Cabinet Office implied that her department's responsibilities will be downgraded.

So far, so bad.

The appointment would appear to be something of a consolation prize, coming just days after Leadsom pulled out of the Conservative leadership race and allowed Theresa May to enter No 10 unopposed.

Yet while Leadsom may have been able to twist the truth on her CV in the City, no amount of tampering will improve the agriculture-related side to her record: one barely exists. In fact, recent statements made on the subject have only added to her reputation for vacuous opinion: “It would make so much more sense if those with the big fields do the sheep, and those with the hill farms do the butterflies,” she told an audience assembled for a referendum debate. No matter the livelihoods of thousands of the UK’s hilltop sheep farmers, then? No need for butterflies outside of national parks?

Normally such a lack of experience is unsurprising. The department has gained a reputation as something of a ministerial backwater; a useful place to send problematic colleagues for some sobering time-out.

But these are not normal times.

As Brexit negotiations unfold, Defra will be central to establishing new, domestic policies for UK food and farming; sectors worth around £108bn to the economy and responsible for employing one in eight of the population.

In this context, Leadsom’s appointment seems, at best, a misguided attempt to make the architects of Brexit either live up to their promises or be seen to fail in the attempt.

At worst, May might actually think she is a good fit for the job. Leadsom’s one, water-tight credential – her commitment to opposing restraints on industry – certainly has its upsides for a Prime Minister in need of an alternative to the EU’s Common Agricultural Policy (CAP); a policy responsible for around 40 per cent the entire EU budget.

Why not leave such a daunting task in the hands of someone with an instinct for “abolishing” subsidies  thus freeing up money to spend elsewhere?

As with most things to do with the EU, CAP has some major cons and some equally compelling pros. Take the fact that 80 per cent of CAP aid is paid out to the richest 25 per cent of farmers (most of whom are either landed gentry or vast, industrialised, mega-farmers). But then offset this against the provision of vital lifelines for some of the UK’s most conscientious, local and insecure of food producers.

The NFU told the New Statesman that there are many issues in need of urgent attention; from an improved Basic Payment Scheme, to guarantees for agri-environment funding, and a commitment to the 25-year TB eradication strategy. But that they also hope, above all, “that Mrs Leadsom will champion British food and farming. Our industry has a great story to tell”.

The construction of a new domestic agricultural policy is a once-in-a-generation opportunity for Britain to truly decide where its priorities for food and environment lie, as well as to which kind of farmers (as well as which countries) it wants to delegate their delivery.

In the context of so much uncertainty and such great opportunity, Leadsom has a tough job ahead of her. And no amount of “speaking as a mother” will change that.

India Bourke is the New Statesman's editorial assistant.