How Blue Labour can outflank the coalition

There is a huge opportunity for Ed Miliband to borrow and adapt thinking from the centre right.

When political parties have been in government for a long time, they run out of new ideas. After their crushing defeat in 1997, it took an awfully long time for the Conservatives to even refresh their thinking. The process of intellectual renewal didn't begin in earnest until after 2001, when a new generation of think tanks were created to modernise the centre right.

Something similar is needed now on the centre left. A process of renewal is slowly starting. New groups like the Resolution Foundation are doing interesting work on stagnating wages. The Blue Labour project is interesting, as any group involving both James Purnell and Jon Cruddas is likely to be.

The problem is that this new thinking won't come to fruition for years yet. And that leaves Ed Miliband awfully exposed. Why not borrow and adapt some thinking from the centre right? There are plenty of opportunities to outflank the coalition.

I hear you groan. Of course, these days people are naturally suspicious of anything that smacks of "triangulation" or "outflanking". I understand why. Crass attempts to defeat your ideological opponents by turning yourself into them don't work in the long term. There is no point trying to out-racist the BNP. But there are a whole set of new ideas floating about on the centre right that can fit in with Labour voters' values.

Take the environment. Over the course of recent years, politicians have scrambled to catch up with the public, and have quickly cobbled together a framework of policies to be seen to be "doing something". Partly because of this scramble for headlines, our current set of policies are not particularly effective. We have some, like the climate change levy, which reduce carbon emissions at a cost of less than £4 a tonne. We have others, like feed-in tariffs and the renewable heat incentive, which do the same job, but at a cost which is orders of magnitude higher. (The feed in tariff is about £440 for the same tonne). Rationalising the higgledy-piggledy mix of overlapping instruments we now have would allow us to decarbonise more, at a lower cost. With energy bills now a front page issue again, and Labour voters most likely to feel the pinch, there is a huge political opportunity here: making things "greener and cheaper" is the winning position in the green debate. You could spend the savings on reducing fuel poverty.

Or think about welfare. Here, things are tricky. Public attitudes are often described by commentators as "tough". That's partially true, but is a rather superficial reading. It is true that there is a big political danger for Labour in being too associated with an uncritical defence of the welfare status quo. Voters quite rightly want to change a system that left 5-6 million working age adults on out-of-work benefits all the way through the long boom.

But there are public attitudes and policy opportunities that Labour can work with. The first is strong public support for the contributory principle -- the idea that those who make greater contributions will get more out of the welfare system. This was a core principle of the welfare state as designed by William Beveridge and Lloyd George, who regarded it as essential for both reasons of fairness and public support for the welfare state, and also to underpin incentives to work. But every time the UK has experienced fiscal problems, we have rinsed the contributory principle out of the system a little further, because it is politically tempting to hit those whose immediate needs are less severe. This process is still going on, and few people realise that the UK is an extreme outlier among developed countries in having moved so far away from this principle. Most other countries, from the US to Germany have contributory unemployment insurance at a higher rate than basic welfare payments.

Perhaps the most interesting concrete proposal to emerge from the "Blue Labour" discussions so far is a renewed interest in the contributory principle. But how to get from here to there? At Policy Exchange, we recently suggested allowing the creation of a personal welfare account that would sit above the new Universal Credit. However, that would take time and money to run up. As a first step, we could change things so that the conditions on receipt of welfare benefits (like the period in which you can turn down non-preferred jobs) were relatively more generous than for those with a record of national insurance contributions, compared to those without.

On crime too, there are relatively technocratic ideas floating around on the centre-right which Labour should be seizing on. Poor people are disproportionately likely to be the victims of crime. And polling by Lord Ashcroft suggests that crime has become the government's main vulnerability. The polls also show that the public are far "tougher" on crime than any of the main political parties are. But voters aren't thick either: given that money is tight, we need to be smart on crime, and use resources in the most effective way.

There are masses of things that could be done to improve the criminal justice system, which don't involve spending more money. Our prisons are awash with drugs, and the Metropolitan Police estimates that there are a thousand corrupt officers bringing them in. We will never make progress on rehabilitation until we sort this out. Prison work has been neglected and too few prisoners work. Meaningful work helps rehabilitation, and the money it would generate could be used to help victims and also to get prisoners to partially "pay for their stay." Community sentences are rightly regarded as a joke by the voters, because they fail to stop reoffending. We have proposed thaty they be replaced them with meaningful "work orders".

Despite Tony Blair's promise to be tough on the causes of crime, crime prevention efforts are still peripheral. And of course, there is much more that can be done to enable the police to do more with less: from the shift to individual patrolling (twice as many patrols for the same money) to the more targeted use of expensive warranted officers (they shouldn't be cleaning cars).

On schools, Labour needs a much clearer response to the coalition's expansion of the academies programme. Given that it was originally a Labour initiative, perhaps it is time to try and snatch the policy back. The new government has radically increased the number of academies by allowing existing schools to convert to academy status. And it has introduced new parent-driven free schools. But Andrew Adonis' original academies programme -- in which consistently failing schools are replaced by new schools -- is still up and running. Seven schools of this type, sponsored by individuals and institutions, opened in the first couple of months of this year. Unfortunately for Labour, the government are already moving to rebalance their agenda back towards the Adonis vision. Andy Burnham needs to move much quicker if he is going to grasp this opportunity.
Why not take Adonis' original concept and turbocharge it? Set the bar for failure far higher and aim to replace not tens but hundreds of schools that are failing less privileged children. You could push lots of public institutions to act as sponsors: every university in the country, for instance. If you wanted to make a political point and needle the Tories, you could push independent schools to act as sponsors too.

Trying to turn around a party after a long period in government is a tough gig, as William Hague and Iain Duncan Smith discovered. But there are all kinds of policy opportunities out there for Ed Miliband, if he chooses to take them.

Neil O'Brien is Director of Policy Exchange

Neil O'Brien is the director of Policy Exchange.

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Don't blame Jeremy Corbyn - polls show only Tory voters could have kept us in the EU

Despite deep divisions in the Labour Party, it's the Tory voters who let Remain down. 

The Labour Party was already having enough difficulty keeping itself together without a referendum on Britain’s membership of the European Union coming along. The party was reeling from the election of a leader who was not only well to the left of most of his parliamentary colleagues but also did not obviously have the personal skills needed to do the job. However, the referendum on the EU compounded the party’s difficulties by exposing another fissure - between its traditional white working class supporters and its public sector socially liberal middle class ones (including the vast bulk of its parliamentary party). In combination the two divisions threaten to tear the party part.

Elections in the UK are usually about the left and right of politics, whether the government should do a little more or a little less. On this Labour’s working and middle class supporters tend to be at one with each other. They all, albeit to varying degrees, want the state to do more, to curb the excesses of the capitalist market and produce more equitable outcomes. So long as political conflict focuses on this issue they are a viable electoral coalition.

However, the EU referendum was not about the size and the role of the British state. It was about what Britain’s relationship should be with an intergovernmental organisation that epitomises one of the major social and economic phenomena of our time, globalisation. This phenomenon has had significant economic and cultural consequences, including, not least, substantial flows of migrants in search of work in an internationalised labour market. 

Young graduates vs working class pensioners

Among young university graduates this development is regarded as an opportunity rather than a problem. It is the kind of world in which they have grown up. They have acquired the skills required to compete in the global market place. Indeed, they may well become migrants themselves, deploying their valued skills in Berlin or Barcelona. Meanwhile the experience of university, in which international students are often commonplace, has led them to embrace the cultural diversity that immigration brings.

This world looks very different to many an older white working class voter, who left school at the earliest possible opportunity. They are used to a world in which everyone speaks the same language and shares a common set of cultural values.  As a result, the relatively high levels of immigration that the UK has experienced in recent years is regarded as a threat. They want back the country in which they grew up and in which they once felt comfortable. Meanwhile, they suspect that the inflow of migrants helps explain why they have seen little if any increase in their living standards.

With questions of immigration and identity at its core, the referendum on Britain’s membership of the EU inevitably cut across Labour’s electoral coalition. Those with different educational experiences voted very differently. According to a large poll conducted on polling day by Lord Ashcroft, graduates and those still in education voted in favour of remaining in the EU by 59 per cent to 41 per cent, while those whose educational experience did not extend beyond secondary school voted by 65 per cent to 35 per cent to leave. Similarly, in their on the day exercise YouGov found that graduates voted in favour of Remain by 68 per cent to 32 per cent, while those whose highest qualification is a GCSE or its equivalent voted by 70 per cent to 30 per cent in favour of Leave. The party’s middle class supporters were in a very different place on this issue than their more working class ones.

White voters vs ethnic minorities

Just to compound Labour’s difficulties, there was a clear ethnic division in the referendum too. Those from an ethnic minority background, who have never shown much inclination to back UKIP, seemingly found the Leave side’s emphasis on reducing immigration relatively unattractive. Lord Ashcroft estimates that only 32 per cent of those from an ethnic minority background voted to Leave, compared with 53 per cent of those who regard themselves as ‘white’. Consequently, another part of Labour’s electoral coalition, Britain’s ethnic minority population, were also on the other side of the referendum divide from the party’s traditional white working class base.

Against this backdrop it was, in truth, hardly surprising that the highest level of support for Leave was in predominantly working class local authority areas in the North and Midlands of England where Labour tends to be relatively strong.  In the 2014 European Parliament election, Labour won on average 28 per cent of the vote in those local authority areas where less than 22 per cent have a degree, whereas the party won just 20 per cent in areas where more than 32 per cent are graduates. Now in the referendum, on average Leave won as much as 64 per cent of the vote in those places that fall into the former group, but as little as 42 per cent in the latter. A t the same time, no less than 71 of the 90 local authority areas in England and Wales with fewest graduates are in the North of England and the Midlands, whereas just 13 of the 83 areas with most graduates do so.

In short, the principal explanation for the fact that Leave did so well in the West Midlands (59 per cent), the East Midlands (59 per cent), the North East (58 per cent), and in Yorkshire & Humberside (58 per cent) in particular lies in the demography of Leave support and of those regions rather than in any particular failings on the part of the Labour party. Indeed, once we have taken the demographic character of an area into account, if anything Remain tended to do rather better the stronger Labour was locally. For example, amongst those council areas in England and Wales with relatively few graduates Leave won 62 per cent of the vote on average in places where Labour won over 25 per cent of the vote in 2014, compared with 67 per cent where Labour won less than 15 per cent.

Meanwhile, it was, of course, the other parts of its coalition, the socially liberal middle class and the country’s ethnic minority population, that ensured that London was the one part of England and Wales that did vote decisively in favour of remaining  (by 60 per cent to 40 per cent).  No less than 24 of the 33 council areas in the capital have a population in which over 32 per cent are graduates, while no less than 27 of the 41 most ethnically diverse parts of England and Wales are located in the capital. Again demography was crucial.

Corbyn not to blame

Against this backdrop it was hardly surprising that across Britain as a whole only around two-thirds (63 per cent according to Lord Ashcroft, 65 per cent as estimated by YouGov) of those who voted Labour in 2015 voted to remain in the EU. The party was never likely to achieve much more than this. And at least the party’s coalition did not fracture as badly as the one that backed David Cameron a year ago; well under half (42 per cent according to Lord Ashcroft, 39 per cent, YouGov) of those who voted Conservative in 2015 voted to remain. The real source of the Remain side’s difficulties was the failure of David Cameron to bring his own voters on board.

Yet it is Jeremy Corbyn who is taking the blame for the inside much of the Labour party for the Remain side’s failure, as the party’s pre-existing division about his leadership interacts with the division made manifest by the referendum. Of course, MPs are entitled to make their own judgement about Mr Corbyn’s capabilities for the job, a judgement that his performance in the referendum appears to have reinforced and which they may feel has become more pressing given that the outcome of the referendum makes an early general election more likely. But in truth there is little in the pattern of the results of the referendum to suggest that Mr Corbyn was personally responsible for Remain’s defeat. The referendum outcome looks more like a pretext for `an attempt to secure Mr Corbyn’s removal than a reason.

However, the referendum does raise questions for all wings of the Labour party, including above all its parliamentary party in which middle class graduates predominate. As we have argued before, unless the party can persuade the less well-off in Britain that social democracy can tame the tiger of globalised capitalism so that their interests and concerns – cultural as well as economic – can be met, it is at risk of losing their support. We have already in Scotland how the politics of identity can cause much of Labour’s working class support to melt away, and there is a risk that a similar politics could have the same effect in England should UKIP be able to sustain a post-referendum purpose and appeal. 

Certainly, there was little in the Remain side’s case – as espoused by Labour as well as the Conservatives – that met those concerns. There was, in truth, no answer on how to deal with immigration, while there was little attempt to explain how the UK’s membership of the EU could be used to advance the economic interests of the less well of. Instead the only reason offered for voting to remain was the allegedly deleterious consequences of leaving. Telling working class people that they have to put up with the consequences of globalisation is simply not good enough. Labour needs to take note – whoever leads it.
            
John Curtice is professor of politics at Strathclyde University and a columnist for IPPR’s journal Juncture