Labour must not be defined by opposition to the cuts

Miliband is right to ignore the 'stand and fight brigade' and shift his economic stance.

The clamour for a change in Labour's economic stance that began with In The Black Labour is now growing daily. Ed Miliband's speech today signalled that the change is underway. Many in and around the party will be cautiously relieved. Many others, however, will be deeply disappointed.

Commentators such as Mehdi Hasan and Polly Toynbee have demanded in recent days that Ed ignores the demands for a more clearly hawkish line. Instead, they urge, he should stand and fight for what he and they know is right and morally sound. Good economics makes good politics and, sooner or later, the electorate will realise that Labour was correct all along. They undoubtedly represent a very strong seam of belief within the party and wider movement.

But there are big problems with this 'stand and fight because we're right' position.

In the first place, it assumes parties win elections because they have a correct analysis and the soundest values. This would imply that the Conservative Party had the best policies for the eighteen years prior to 1997. A view to which Mehdi and Polly, I assume, do not subscribe.

It also overlooks the fact that every party and their supporters believes they are correct. We may caricature Tories or Lib Dems as ignorant or self-serving rather than sincere in their views but they think exactly the same about Labour. This reveals a fundamental truth about politics which is that the great majority of people just think they are right. Rational, evidence-based debate has only a limited impact, in part because it is very rarely conclusive. Assuming that the inherent rationalism and morality of our particular version of 'rightness' will win out is to flirt with a profound naiveté.

Indeed Labour's economic case is not nearly as self-evidently right as the 'stand and fight' brigade think it is. Yes, there is a good case to be made for a slower pace of deficit reduction or even a small stimulus as enshrined in Labour's five point plan. Wise men such as Martin Wolf, who hold no brief for Labour, have made the case many times. But arguing that a slower path to deficit reduction would be a wise policy is not the same as saying that our economic prayers would be answered by such a move. Inflation has been too high, productivity too low, investment too stagnant, global economic and political volatility too great for a small shift in fiscal policy to really blow away the storm clouds. In truth, Mehdi and Polly want to stand and fight, tooth and nail for something that would do some measure of good but probably not a great deal more than that.

What actually despatches governments is events not the right arguments. Most voters live their lives and ignore the detailed debates that occupy the political classes. It is usually only when something so big and bad happens that it cannot be ignored that voters think seriously about replacing the current lot with that other lot. That was the case with the Winter of Discontent before the 1979 election, the ERM crisis before the 1997 election and the banking crash before the 2010 election. A party in opposition has to rebuild its lost credibility in preparation for that moment. This is vital because, as the 1990 recession showed, a big event will not necessarily play for an opposition if they are not yet trusted to take over the reins of government. In short, a new opposition party needs honestly and painfully to understand why it lost the election and forensically address those failings not exclusively kick lumps out of the new government. Anyone who thinks this can be done without making an almighty effort to regain Labour's reputation for fiscal prudence and economic competence is buried far too snugly in their comfort zone.

Many will read this post and think it is simply arguing for Labour to roll over, adopt a Tory-lite position and hang patiently around until the voters get fed up with Cameron. That would be a misinterpretation. Opposition parties must stand and fight but they must make sure they have a chance of winning. Don't leap into the ring and start throwing punches if the referee (the media) and the ringside judges (the voters) have already decided you're a loser.

So support a slower pace of deficit reduction but don't make it the defining feature of the fight with the coalition. Instead use what few opportunities we have to persuade the ref and the judges that we're not quite as useless as they think we are. That must mean emphasising our commitment to tough-minded, fiscal practice, first and foremost.

Once that is established Labour might begin to get listened to on its wider message and where it might start landing blows on the government. Then it is time to start drawing the distinctions. Emphasise Labour's bolder policy for jobs and growth by using the power of the state to actively restore the competitiveness of British business rather than Osborne's reheated and chaotic Lawsonism. And, yes, talk about a vision for a fairer, more responsible capitalism but make it clear this is a vision for fairness within the context of austerity - a new type of social democracy for very different and difficult times.

Fortunately, this seems to be precisely the thinking behind Ed's speech this morning. There is much, much more to be done but, despite what the 'stand and fight' brigade might now say, the genuine fight-back may just have begun.

Adam Lent is co-author of In the Black Labour and formerly Head of Economics at the TUC. He can be followed on Twitter: @adamjlent.

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What's to be done about racial inequality?

David Cameron's words on equal opportunities are to be welcomed - now for some action, says Sunder Katwala.

David Cameron made the strongest, clearest and most high profile statement about ethnic inequalities and the need to tackle discrimination ever yet offered by a British Prime Minister in his leader’s speech to the Conservative Party conference in Manchester.
“Picture this. You’ve graduated with a good degree. You send out your CV far and wide. But you get rejection after rejection. What’s wrong? It’s not the qualifications or the previous experience. It’s just two words at the top: first name, surname. Do you know that in our country today: even if they have exactly the same qualifications, people with white-sounding names are nearly twice as likely to get call backs for jobs than people with ethnic-sounding names? … That, in 21st century Britain, is disgraceful. We can talk all we want about opportunity, but it’s meaningless unless people are really judged equally”, said Cameron.
While the proof of the pudding will be in the eating, this was a powerfully argued Prime Ministerial intervention – and a particularly well-timed one, for three reasons.

Firstly, the Prime Minister was able to root his case in an all-but-universally accepted appeal for equal opportunities. It will always prove more difficult in practice to put political energy and resources behind efforts to remedy discrimination against a minority of the population unless a convincing fairness case is made that values cherished across our whole society are at stake. Cameron’s argument, that any party which tells itself that it is the party of the ‘fair chance’ and ‘the equal shot’ must have a response when there is such clear evidence of discrimination, should prove persuasive to a Conservative Party that has not seen race inequalities as its natural territory. Cameron argued that the same principles should animate responses to discrimination when it comes to race, gender and social class. Put like that, wanting job interviews to be fair – by eradicating conscious and unconscious patterns of bias wherever possible – would strike most Britons as offering as clear a case of the values of fair play as wanting the best baker to win the Great British Bake-Off on television.
Secondly, Cameron’s intervention comes at a potential "tipping point" moment for fair opportunities across ethnic groups. Traditionally, ethnic discrimination has been discussed primarily through the lens of its impact on the most marginalised. Certainly, persistent gaps in the criminal justice system, mental health provision and unemployment rates remain stark for some minority groups. What has been less noticed is the emergence of a much more complex pattern of opportunity and disadvantage – not least as a consequence of significant ethnic minority progress.

Most strikingly of all, in educational outcomes, historic attainment gaps between ethnic minorities and their white British peers have disappeared over the last decade. In the aggregate, ethnic minorities get better GCSE results on average. Ethnic minority Britons are more likely, not less likely, to be university graduates than their fellow citizens. 

As a result of that progress, Cameron’s intervention comes at a moment of significant potential – but significant risk too. Britain’s ethnic minorities are the youngest and fastest-growing sections of British society. If that educational progress translates into economic success, it will make a significant contribution to the "Great British Take-Off" that the Prime Minister envisions. But if that does not happen, with educational convergence combined with current ‘ethnic penalties’ in employment and income persisting, then that potential could well curdle into frustration that the British promise of equal opportunities is not being kept.  Cameron also mirrored his own language in committing himself to both a ‘fight against extremism’ and a ‘fight against discrimination’: while those are distinct challenges and causes, actively pursuing both tracks simultaneously has the potential, at least, depolarise some debates about responses to extremism  - and so to help deepen the broad social coalitions we need for a more cohesive society too.

Thirdly, Cameron’s challenge could mark an important deepening in the political competition between the major parties on race issues. Many have been struck by the increase in political attention on the centre-right to race issues over the last five to ten years. The focus has been on the politics of representation. By increasing the number of non-white Conservative MPs from two to seventeen since 2005, Cameron has sent a powerful signal that Labour’s traditional claim to be ‘the party of ethnic minorities’ would now be contested. Cameron was again able to celebrate in Manchester several ways in which his Cabinet and Parliamentary benches demonstrate many successful journeys of migrant and minority integration in British society. That might perhaps help to ease the fears, about integration being impossible in an era of higher immigration, which the Home Secretary had articulated the previous day.

So symbolism can matter. But facial diversity is not enough. The politics of ethnic minority opportunity needs to be about more than visits to gurdwaras, diversity nights at the party conference fringes and unveiling statues of Mahatma Gandhi in Parliament Square. Jeremy Corbyn’s first speech as Labour leader did include one brief celebratory reference to Britain’s ethnic diversity – “as I travelled the country during the leadership campaign it was wonderful to see the diversity of all the people in our country” – and to Labour bringing in more black, Asian and ethnic minority members - but it did not include any substantial content on discrimination. Tim Farron acknowledged during his leadership campaign that the Liberal Democrats have struggled to get to the starting-line on race and diversity at all. The opposition parties too will no doubt now be challenged to match not just the Prime Minister’s rhetorical commitment to challenging inequalities but also to propose how it could be done in practice.

Non-white Britons expect substance, not just symbolism from all of the parties on race inequalites.  Survation’s large survey of ethnic minority voters for British Future showed the Conservatives winning more ethnic minority support than ever before – but just 29 per cent of non-white respondents were confident that the Conservatives are committed to treating people of every ethnic background equally, while 54 per cent said this of Labour. Respondents were twice as likely to say that the Conservatives needto do more to reach out – and the Prime Minister would seem to be committed to showing that he has got that message.  Moreover, there is evidence that ethnic inclusion could be important in broadening a party’s appeal to other younger, urban and more liberal white voters too – which is why it made sense for this issue to form part of a broader attempt by David Cameron to colonise the broad centre of British politics in his Manchester speech.

But the case for caution is that there has been limited policy attention to ethnic inequalities under the last two governments. Restaurateur Iqbal Wahhab decided to give up his role chairing an ethnic minority taskforce for successive governments, unconvinced there was a political commitment to do much more than convene a talking shop. Lib Dem equalities minister Lynne Featherstone did push the CV discrimination issue – but many Conservatives were sceptical. Cameron’s new commitment may face similar challenges from those whose instinct is to worry that more attention to discrimination or bias in the jobs market will mean more red tape for business.

Labour had a separate race inequalities manifesto in 2015, outside of its main election manifesto, while the Conservative manifesto did not contain significant commitments to racial inequality. The mid-campaign launch in Croydon of a series of race equality pledges showed an increasing awareness of the growing importance of ethnic minority votes - though the fact that they all involved aiming for increases of 20 per cent by 2020 gave them a slightly back-of-the-envelope feel. 

Prime Ministerial commitments have an important agenda-setting function. A generation ago the Stephen Lawrence case opened the eyes of middle England to racist violence and police failures, particularly through the Daily Mail’s persistent challenging of those injustices. A Conservative Prime Minister’s words could similarly make a big difference in the mainstreaming of the issue of inequalities of opportunity. What action should follow words? Between now and next year’s party conference season, that must will now be the test for this Conservative government – and for their political opponents too. 

Sunder Katwala is director of British Future and former general secretary of the Fabian Society.