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 Deputy Director, Head of Policy and Strategy at the thinktank ResPublica.

Photo: Getty
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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.