Policy Exchange is wrong on public-sector pay

It is misleading to compare private- with public-sector pay -- it’s not a like-for-like comparison.

Policy Exchange has a new report out today on the public sector, and while it has tidied up its stats a little -- given the hammering that dodgy stats on the public sector have got in the past -- what the report says is still pretty misleading.

For Policy Exchange and the shrink-the-state right, every nurse, every doctor, every teacher is a drag on the economy. The rest of us know that they all play a vital role -- as do countless other public servants. Far from holding back the private sector, the public sector educates and trains its workforce, buys many of its goods and services, keeps its staff healthy and provides the infrastructure without which the UK would travel back to the 19th century.

Policy Exchange wants people to believe that public-sector wages have overtaken those in the private sector. This is simply not the case. In every year since 1984 -- the earliest year for which official statistics are available -- average hourly pay in the public sector has been higher than in the private sector. But this is because the public sector has a much greater proportion of skilled and professional workers such as teachers and doctors than the private sector.

In recent years this trend has intensified. Lower-paid jobs such as cleaners and care assistants have been privatised, while the big growth in public-sector employment under the last government was among professionals such as teachers and doctors.

To compare pay properly, you have to look at people doing similar jobs, but this is impossible, as jobs differ too much. However, you can compare the pay of people with similar qualifications. This shows that graduates earn somewhat less in the public sector while those with no qualifications earn a bit more. This is because the gap between those at the bottom and those at the top in the public sector is smaller than in the private sector. Most people would think this is a good thing.

Of course, they cannot resist citing higher levels of absence in the public sector, even though public-sector staff are more likely to work when they are ill.

And it takes chutzpah to report accurately the collapse in private-sector pension provision for most private-sector workers -- despite the retention of diamond-encrusted, platinum-plated pensions in Britain's top boardrooms -- as a reason for attacking public-sector pensions.

It would be equally logical to say that if public-sector workplaces were more dangerous than those in the private sector, this should be evened up until as many people were killed at work each year in the public sector.

Under the guise of all-round fairness, Policy Exchange seems to want to bring the worst kind of vulnerable, low-paid, no-rights employment into the public sector. We think that is a very strange notion of fairness.

Nigel Stanley is the TUC's head of campaigns and communications.

This blog is cross-posted from Touchstone.

Nigel Stanley is the head of communications at the TUC. He blogs at ToUChstone.

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The English left must fall out of love with the SNP

There is a distinction between genuine leftism and empty anti-establishmentarianism.

After a kerfuffle on Twitter the other night, I am all too aware that writing something even mildly questioning of the SNP government is the British equivalent of approaching a lion pride on a kill. Nevertheless, seeing the almost hero-levels of mental gymnastics tweeted by Mhairi Black, in the week of the Hillsborough inquiry whereupon Nicola Sturgeon posed with a copy of The Sun endorsing her re-election, prompted me once more to consider just how spectacular the distance has become between the SNP that stood against Ed Miliband versus the SNP today and in government.

Mhairi tweeted: “So Kezia wants to put up the taxes of Scottish people to subsidise Tory cuts that her party supported in Westminster?”. Confused? So am I.

This follows in a series of SNP revisionism on what austerity is and the excuses the SNP has hidden, not quite so conspicuously, up its sleeve to not act on its new tax powers, so as not to break its bond with Middle Scotland. They insist that Labour’s plans for a penny tax are not progressive, and have framed it in such a way that an anti-austerity plan has now become a subsidy for cuts Labour actually haven’t supported for more than a year now. Just like that, the SNP is a low-tax mimicry of Toryism.

But it isn’t ‘just like that’. The SNP have governed from an economically cautious stance for seven years. For a brief period, they borrowed Ed Miliband’s clothes. But once the Red Wedding had been completed, they returned back to where they started: as successors to New Labour, though that is hardly fair: they are far, far less redistributive.

So why is it, in the 2015 election, and even today, many of us on the left in England still entrust our faith in SNP rhetoric? Still beat the drum for an electoral ‘progressive’ coalition with a party that doesn’t seem very happy to embrace even the concept of higher taxes?

My theory is that the SNP have successfully, indeed more successfully than any party in Britain, adopted the prime hobby of much of the Left: ‘againstism’.

‘Againstism’, clumsy I admit, is to be against everything. This can include a negative framing of being anti-austerity but not pro-anything in its place. But in this instance, it means to be anti-establishment. The latter, the establishment, is what Labour as a party of government always has aspired to be in competing to be the national government in Westminster - which is why elements of the Left will always hate it and will always vote against it. In a way, some of the left is suspicious of governance. This is occasionally healthy, until it prevents real progressivism from ever being elected.

While in government, Labour could be seen as sell-outs, rightly or wrongly, because they became the establishment and had no one but themselves to blame. The SNP are the establishment, in Scotland, but can nevertheless exercise ‘againstism’, even with new tax powers. They always will so long as Westminster exists, and so long as their main motivation is independence. This is why the bogeymans that sustain nationalism are not natural allies of social democracy; to achieve social democracy would be to remove the bogeyman. This means that the Lesser New Labour tradition within which they govern will continue to go unnoticed, nor be doomed to eventual death as New Labour itself suffered, nor be looked back on as an era of neoliberalism. The SNP can just avert attentions back to the Westminster establishment. ‘Againstism’. Paradoxically, the way the SNP have managed to come to exploit this is because of New Labour's devolution. Devolution has created, for the first time, the perfect environment for an establishment in one part of the country to blame the establishment in another. It has allowed for the rise of an incumbent insurgent. The SNP can campaign as insurgents while still being incumbents. It is a spectacular contradiction that they alone can manage.

Insurgency and anti-establishment politics are not, of themselves, a bad thing. We on the Left all dip our toes in it. It is a joy. It is even more fun for us to be successful. Which is why the celebratory mood that surrounded the SNP gains in Scotland, a paradigm shift against one incumbent for another, is, objectively, understandable. But these insurgents are not actually insurgents; they are the illusion of one, and they have had the reigns of power, greater now for the Scotland Bill, for seven years. And they have done little radical with it. The aim of an anti-establishment politics is to replace an establishment with something better. All the SNP have done is inherit an establishment. They are simply in the fortunate position of managing to rhetorically distance itself from it due to the unique nature of devolution.

This is why some of the Left still loves them, despite everything. They can remain ‘againstists’ regardless of their incumbency. They do not have the stench of government as a national Labour government did and inevitable would have. So the English Left still dream.

But now, with this mounting evidence and the SNP’s clumsy revisionism, it is up to the English Left to distinguish between genuine leftism and empty anti-establishmentarianism, and to see the establishment -via governance- as something to define for itself, to reshape as something better, rather than something to be continuously against. This is, after all, what Attlee's government did. The SNP have not defined the establishment, they have continued someone else's. It's up to us to recognise that and fall out of love with the SNP.