Labour must not play games with House of Lords reform

Lords reform is a test of the party's credibility.

It is hardly surprising that, in its 112 year history, Labour has vacillated on some of its founding principles. Keir Hardie’s commitment to a National Minimum Wage fell foul of the trade union movement’s 1970s mantra that rights at work could only come with a union card. Thus it was that Trades Union Congress delegates voted against a minimum wage well into the 1980s.

Our early allegiance to Proportional Representation only lasted until the landslide victory under First Past the Post (FPTP) in 1945 six years before one of FPTP’s little perversions handed power back to the Conservatives (which polled a quarter of a million fewer votes).

The policy that most clearly connects Hardie with Ed Miliband is reform of the House of Lords. Along with universal suffrage, an accountable second chamber has been the defining constitutional characteristic of a party established to pursue a more equal society.

However, early idealism had to be tempered by the realities of gaining and exercising power; we continued to abhor a parliament based on inheritance and patronage. Attlee reduced its powers, Wilson and Callaghan changed its composition. None of them had the benefit of a cross-party consensus to radically alter this anachronistic institution.

As with the National Minimum Wage (and Hardie’s other great constitutional objective – a Scottish parliament) it was, ironically, New Labour that began the process of delivering some of the party’s original objectives.

Labour’s 1997 manifesto, focused as it was on the 21st century, stated that: “The House of Lords must be reformed. As an initial self-contained reform, not dependent on further reform in the future, the right of hereditary peers to sit and vote in the House of Lords will be ended by statute. This will be the first stage in a process of reform to make the House of Lords more democratic and representative.”

The “self-contained” reform proved to be the easy bit with 655 hereditary peers leaving the Chamber and the residue of 92 (now 90) remaining only until the next stage of reform.

As a result of that change, parliament convened in November 1999 with a second chamber that was far smaller (and politically balanced) than at any time in its history. The Lords had only 16 more members than the Commons, but without that elusive “next stage” of reform patronage has accelerated to fill the gap left by the departing hereditary peers to the point where it threatens to wipe out the relatively modest constitutional gains those 1999 reforms achieved.

There are now 141 more peers than there were 13 years ago. The coalition agreement seeks to raise the number by a further 203 (to reflect the last general election result). Taken together with the reduction of MPs, there is every prospect that by 2015 the House of Lords will have almost twice as many appointed or hereditary members as those elected to the Commons.

Only two other countries have a second chamber larger than the first – Kazakhstan and Burkina Faso. I doubt if either of those can match the unrepresentative nature of our bloated House of Lords. Some 44 per cent of peers are from London and the South East; under a fifth are women and there are more peers aged over 90 than under 40.

But the most serious criticism of the Lords remains its democratic illegitimacy and its institutionalised snobbery.

The dictionary definition of a Lord is a master, a feudal superior, a dominant person. Our quest for a fairer society can never succeed while we tolerate this embodiment of privilege at the heart of our democracy.

There are few politicians prepared to defend the indefensible. But there are plenty whose commitment to reform acts as a cover for preserving the status quo. Division over the details of reform have protected the Lords for a century and are capable of doing so indefinitely. Now Labour faces a very real test over the government’s proposals for the second stage of reform that we promised in 1997.

A test not just because David Cameron managed to change Conservative policy to the extent that their 2010 manifesto committed to “a mainly elected second chamber” (thus providing an unprecedented consensus and an unarguable case for the Parliament Act to be used to force this through the Lords).

It is also a test of our determination to bring about genuine change in a country shocked by the scandalous failure of its institutions. Ed Miliband deserves to be the beneficiary of a public mood that sees preservation of the old order almost in the same way that the post-war generation saw the 1930s. He cannot succeed if the Parliamentary Labour Party (PLP) decide that playing games with the coalition is more important than establishing real constitutional reform. The public may well suspect that the aim is to preserve a lucrative retirement home for MPs.

Of the many cross-party attempts to move this issue forward over the last decade, the most impressive was Breaking the Deadlock. Funded by the Joseph Rowntree Foundation and published under the auspices of UCL in 2005, the report argued for a chamber of 400 members, predominately elected by a system of PR, serving a single period of office in a House with no government majority. It provided the blue print upon which the current proposed legislation is based and of the five MPs who authored it, two, (Ken Clarke and George Young) are now Cabinet members as are two prominent supporters (William Hague and Francis Maude).

As we have discovered with family-friendly employment rights and same-sex marriage, a progressive illusion may not survive the reality of Conservative opinion but the debate that Labour began has shifted public and political opinion to a significant extent. To be critical of David Cameron on this issue at a time when he has led his party towards a position first established by great Labour figures such as Robin Cook and Tony Wright is to indulge in the worst kind of opportunist, tribal politics.

Constitutional change requires a public referendum and it is right that we challenge the absence of one in the coalition’s proposals. It is consistent with our stance on a range of issues from devolution to changing the voting system. The proposal that should be put to the British electorate has been largely determined over 15 years of debate during which necessary compromises have been made on all sides of the reform argument. It is now time to build on that work in order to establish a smaller, mainly elected second chamber which has democratic legitimacy and public support.

This may well be a test of modernity for the Conservative Party; but it is also a test of credibility for Labour.

A 1909 Labour poster shows workers breaking down the door of the House of Lords.

Alan Johnson is a former home secretary and MP for Hull West and Hessle.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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