Labour's economic challenge

Ed Miliband needs to make sure his colleagues understand the need for radical change.

The deputy leader of the Labour Party, Harriet Harman, appeared on the BBC's Andrew Marr Show this morning. Harman was asked by Marr about the new kind of economy envisaged by Ed Miliband in his speech to Labour conference last month. Her rather unconvincing answers tended to confirm the analysis of the chief economist of the IPPR Tony Dolphin, who argued here recently that it's much harder to articulate a new economic paradigm than it is simply to assert that things need to change.

Dolphin wrote that "Distinguishing between 'predators' and 'producers' was an unnecessary hostage to fortune". Questions about good and bad businesses drown out, Dolphin went on, the "arguments of thinkers such as Will Hutton, Anatole Kaletsky and William Baumol over different models of capitalism". Marr duly asked whether Top Shop boss Sir Philip Green was a predator or a producer. Harman replied somewhat uneasily that "it's not about individuals", rather confirming Dolphin's fears.

Miliband and Labour's main problem, according to Dolphin, is that "there is no new well-developed economic model - comparable to monetarism in the 1970s - sitting on the shelf waiting for him to pick it up and champion it. He therefore faces a tough decision. Does he want to tinker at the edges with the existing model - a bit more banking regulation here, an employee representative on a company board there? ... Or is he prepared to make the case for more radical change and to champion those independent voices in economics that are not heard enough? "

When Marr invited her to elaborate on Labour's vision of a new economy, Harman did make it sound as if all Labour has in mind is to tighten up the regulatory framework governing financial services. But I suspect Miliband doesn't want to take to the easier of the two options Dolphin described and does want to "make the case for radical change". If that's true, then he needs to make sure his colleagues, Harriet Harman included, understand just what he has in mind.

Jonathan Derbyshire is Managing Editor of Prospect. He was formerly Culture Editor of the New Statesman.

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.