Labour's "economic credibility" problem

Everyone agrees that the party needs to spell out a clear alternative to the coalition's cuts -- so

As Labour gears up for its annual conference, the focus is, predictably, on the economy - namely, how the party can win back the public's trust. Growth may be but a distant dream, while unemployment figures offer no comfort, but the coalition's relentless message that "Labour got us into this mess" seems to have got through to the public.

The most effective line in Nick Clegg's speech to the Liberal Democrats' conference last week was when he hit back at Ed Balls' claim that the coalitions' cuts were "too far, too fast", by saying that Labour would have done "too little, too late."

The latest Guardian/ICM poll shows that only 34 per cent of voters think Labour has the right policies to rescue the economy. Even among definite Labour voters, only 66 per cent back the party's economic plans. This is despite other polls consistently showing that the public is nervous about the speed and scale of the governments' austerity measures.

What this shows is that it is not enough to point out that the economy is stalling: Labour must offer a detailed, solid plan about exactly what they would do differently.

This is a point made by Balls himself today. Discussing ways of winning back credibility in today's Guardian, he writes:

Families are not asking: "Who was right on the pace of deficit reduction?" They are asking: "Who can get Britain back on its feet?" I believe we can only win public trust by making the case for a credible and compelling plan that will revive growth, get unemployment falling, take the tough decisions to tackle the deficit in a balanced way, and transform our economy for the long term.

A new report (£) by the Fabians reiterates this point:

Saying we would cut, but not by quite as much, or that we will cut by some undetermined amount some time in the future, is not sufficient.

Everyone is agreed that Labour must produce an alternative plan to win back credibility. But this is hardly a new issue; the economy has been the dominant issue for the duration of this government and before. There is certainly a strong argument for not rushing such an important policy, but Miliband has now led the party for a full year. Labour should publish specific plans soon, and get the message out to the public. As we face the prospect of a renewed global economic crisis, there is a political opportunity for Labour -- but only if it presents a consistent, credible line tied to a concrete policy. If it waits too much longer, it may well be "too little, too late" to win back their credibility.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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A year on from the Brexit vote it’s striking how little we know about where it will lead

So many questions, so few answers.

One year one. Anyone who hoped we’d know what Brexit might look like or even, heaven, forbid, that we’d be inhabiting a post-EU UK by now, must be thoroughly disappointed. Even those with more modest expectations are feeling slightly uncomfortable. Because, a year on, we don’t know that much more about what Brexit means  than we did on 23 June last year (well, we know it means Brexit, I suppose).  

We do know some things. First, that divorce talks are preceding trade talks, as the EU insisted – and David Davies denied – all along. Second what the European Union wants in the initial negotiations is crystal clear and indeed on their website, if you’re interested.

Third, the government, for the moment, remains committed to the kind of hard Brexit it has laid out since the Conservative Party conference. Nothing that has been said or done since the election indicates a softening of that position.

That’s it. That’s essentially all we have to show for the last year. This isn’t to say that stuff hasn’t been done. Both the European Commission and the British civil service have been beavering away on the Brexit issue. Papers have been written, careful, detailed analysis carried out. In fact Brexit has dominated the work of Whitehall since the fateful vote.

But for all this work, it’s striking how little we know about where this process will lead. The government’s commitment to a hard Brexit might not survive. Whether it does so or not will depend on what happens with the things we don’t know. The known unknowns, to coin (well, quote) a phrase.

First, we don’t know how long the prime minister will remain in post. This is obviously important, not least given Theresa May herself has seemingly singlehandedly been defining the kind of Brexit Britain should seek. Yet there is more to it than that. A leadership election would take time, and eat up yet more of the two years stipulated by the EU for the Article 50 process. It would also open the rift within the Conservative party over Brexit. Always a good spectator sport. Never a recipe for effective government.

Second, we don’t know how parliament will behave. Much has been made of the "soft Brexit majority" in the Palace of Westminster. But remember last June? When the significant majority of pro-remain MPs were expected to kick up a fight over Brexit? The same MPs who nodded the triggering of article 50 through with hardly a glance? We just do not know yet how MPs will behave.

And their behaviour will be shaped by both inter and intra-party dynamics. Both the large parties are internally divided over Brexit. The Labour leadership seems happy to leave the single market. Many Labour MPs, in contrast, are fundamentally, and publicly, opposed to the idea. Whether loyalty (not least given the prospect of another election) triumphs over opinions on the EU remains to be seen.

As it does for the Tories. I imagine the phrase "do you really want to risk a Corbyn government" will soon trip off the tongue of every government whip. Whether this threat will prove effective is anyone’s guess. Tory Remainers certainly seemed to rein in their criticism of the prime minister following the "chocolate trousers" affair. Maybe this was simply a case of keeping their powder dry until the legislation needed to make Brexit work hits parliament in the autumn. We’re about to find out. And it will matter much more now the Tories have lost their majority.  Indeed, I think this, more than anything else, is why the prime minister called the election in the first place.

One crucial determinant of how MPs behave will be what public opinion does. Regular polling by YouGov since the referendum has, until recently, shown virtually no movement in attitudes towards Brexit. Around 52 per cent think it was a good idea, and around 48 per cent a bad one. Sound familiar? There has in recent weeks been what could best be described as a slight wobble. What we don’t know is what will happen in the weeks to come. Should the polls show a swing away from Brexit, might politicians swing with it, increasing the pressure on the PM to modify and soften her stance?

Turning from Westminster to Whitehall, will a government with no majority adopt a different style to a government with a small one? This matters, particularly when it comes to business. The May Government before the election was notable for the way it put politics above economics, focusing on the need to ‘take back control’ even if this meant the potential for real economic damage. A number of business leaders report getting short shrift when they visited ministers to voice their concerns.

But can a weak government be so dismissive? We know what most businesses want – certainly the kinds of business that get to knock on ministerial doors. They want single market and customs union membership. They want, in other words, a soft Brexit. Chancellor Philip Hammond, it would seem, has been listening to them from the start. Will his colleagues now start to do so too?

And if government policy does start to shift, this in turn will open up a whole host of new unknowns. Most importantly, might the EU be open to some sort of deal whereby we limit free movement but get some kind of single market membership? That discussion has simply not happened, because of the way in which Theresa May closed it off by stipulating a hard Brexit.

Most EU observers think a compromise is unlikely in the extreme. Yet while the EU won’t be more generous to a non-member state than to a member state, there is no reason a non-member state should buy into all of core EU principles entirely, so there might be some room for compromise. Again, we don’t know. And we won’t unless we decide to ask.

So many questions, so few answers. That is the story of Brexit to date. One year on, and those answers are about to get clearer.

Anand Menon is the director of The UK in a Changing Europe. Read their report: EU referendum: one year on to find out more.

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