David Miliband's approach won't save Labour

The old party is dead but its successor is yet to be born.

Deep within a filling cabinet I keep a copy of the 1998 Marxism Today special that just said "Wrong" on a cover adorned by Tony Blair. I thought of it while reading David Miliband in last week's New Statesman. In it David proclaimed that Labour should say "loud and clear where we
made mistakes, but we should also insist that the list of gains far outstripped the mistakes. After all, even David Cameron said on coming to office that Britain was better in 2010 than 1997".

This coming to grips with our past is the essential question facing Labour. Just as New Labour defined itself against "Old", what the party says about its past now defines its future. But what David gets wrong is the idea that we judge a governments record on some balanced scorecard, like goals scored for or against. But this is not how people judge any government as the election result and subsequent polling shows. Instead governments either succeed or fail in total as political projects. Eden/MacMillan, Wilson, Heath and Major all failed compared to the success of Attlee and Thatcher. Those judgements are made not, for example, by trying to balance the poll tax with council house sales but whether they took their particular political project further forward and made them stronger.

Even if we take the most modest definition of the New Labour project, that of humanising neoliberalism, it is a project now in ruins. Unemployment is soaring and youth unemployment sickeningly high, the poor are being targeted and humiliated with housing benefit and a hundred other cuts, public services are being decimated - all of which would have largely continued under Labour. Education and health are being broken up and commercialised. New Labour paved the way for all this. Democracy is weaker and inequality greater after the biggest majorities Labour has ever had. The party itself is on the floor. Resistance comes from new forces; Avaaz, 39 Degrees and UK Uncut.

Before you ask, what did you expect, a revolution, let's go back to David who was right last week when he said "The role of social democrats is
to take the values of ethical socialism and put them into practice in a gradual way." Precisely, Labour is a party of gradualism and pragmatism. It means slowly and cleverly heading in the right direction. Not stupidly and quickly going in the wrong direction. Yes Labour did some good things
but mostly for the wrong reason in the wrong way. It broke the state in its manic attempt to set markets free and then prop them up when they
inevitably failed. In the process it destroyed its own electoral base.The promise of 1997 ran through its fingers. There is no legacy, no intellectual framework, no vision and no countervailing forces. Even the narrow project to humanize capital is set further back now than in 1997. It's why David Cameron thinks Britain was a better place in 2010 than 1997 - because we failed the test of pragmatism and gradualism not because we succeeded. And unless and until the party recognises its failure it cannot move on.

The core of this failure can be found in the rejection of the politics of interest and the necessary ideas, policies and forces to put the very
interests of society before the market, people before profit and democracy over elites. You can't humanize the market by giving in to it. That way lies crisis. You humanise it by moral arguments and political strength. That is why Ed Miliband is right about responsible capitalism but now has to package it within a compelling vision of a good society and a progressive alliance of forces, parties and organisations that will deliver and sustain it.

The in-balance approach of David Miliband just leaves us hoping the coalition fails and the party gets back having learnt the right technical lessons, recalibrating and tweaking this or that policy - expecting things to work out differently next time. They won't. I was an early and excited young proponent of New Labour because I could see Labour needed fundamental renewal. Back then options such a stakeholding and communitarianism offered different futures and was why I argued against the Marxism Today claim of "Wrong!" But they have been proved right.

Today Labour has to reconnect to a centre ground that well knows it failed, but only because it knows where it wants to lead them - to a good society. In this unique crisis of capitalism it should not be beyond Labour's ability to demonstrate it can tax well, spend well and regulate the worst excesses of the market effectively while building a new and responsive state.

Labour is in what Gramsci called an "interregnum". The old is not yet dead, the new is not yet born. One paradigm needs to give way to the new. Only Labour can determine how long its interregnum lasts - it can be painful and partial or more quickly and fully resolved. The party can be blighted for decades by a generation of politicians who refuse to admit they got it wrong. In difficult circumstances those politicians did their best. It wasn't good enough. But failure is acceptable if you learn from it. To do that you have face it. The Tories will never learn and will make things much worse. To do the best for the country Labour has to say it failed. Then it can move on.

Neal Lawson is chair of the pressure group Compass and author of the book All Consuming.

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Why Philip Green's fall should bring down the honours system – but won't

Sir Shifty may fall in disgrace, but our ridiculous system will endure. No matter what's happening in the rest of politics.

Sir Philip Green’s Efficiency Review (2010) is his Das Kapital and it is still, happily, online. You can, if you wish, smirk at his recommendations to the government, which were solicited by David Cameron, I imagine, because when he stood next to Green he looked not like a 17th-century woodcut but like a tall, handsome semi-aristocrat.

“There is no motivation to save money or to treat cash ‘as your own’,” Green grumbles, before complaining, “There are inconsistent commercial skills across departments.” I am weeping with laughter at the whole report. But I’m not one of those BHS employees watching their pension ­vanish as the hideous cushions, throws and bedspreads pile up on the Green family yacht Lionheart. I instantly rename the yacht 14-Day Return Policy No More.

The days when Green could write efficiency reviews for people to ignore are gone. It is said that he could lose his knighthood, because that would be exciting and pointless. If so, I hope the ceremony features the formal rending of a garment from the BHS sale bin – perhaps a torn sock will be flung at his head? The Queen will not be happy, because de-knighting makes the ancient system of patronage look as ridiculous as it really is. Do intercessors between man and God make mistakes? Would they raise a man the Daily Mail now calls “Sir Shifty”? (I checked whether there was a Sir Shifty among the knights of the Round Table who flogged the Holy Grail to a passing tinker. There was not.)

Lord Melbourne advised Queen Victoria not to attempt to make her husband, Albert, a king, for if the people knew that they could make kings, they might unmake them. Green will discover this in his tiny way. But the elites should not hide their baubles. One fallen knight will not destroy the system (and I cannot think that Green will take £571m from his Lionheart cushion budget to save his knighthood by replenishing the BHS pension fund, because a knighthood is, in essence, just a tiny Bentley Continental that you wear over your nipple). One fallen knight should destroy the system but it won’t, because human conceit and docility are without end. Green will be shunned. Nothing will change.

One might have hoped that the Brexit vote would have alerted Cameron to the abyss between the electorate and the elected. (Even Alastair Campbell, chomping against Brexit, seemed to forget that he was as complicit in the alienation of voters as anyone else: government by sofa, teeth and war.) The response was glib, even for Cameron, a man so glib that I sometimes think he is a reflection in a pond. Brexit hit him like someone caught in a mild shower without an umbrella. He hummed at the lesson that history dealt him; he hummed as he left his page. It was the hum of the alpha Etonian caught out in a mistake, yes, but it was still a bloody hum.

His next act was to increase pay-offs to favoured courtiers against civil service advice and at public expense; then, it was reported, he nominated his spin doctor Craig Oliver and his former spin doctor Gabby Bertin for peerages, because the upper house needs more PRs. He has learned nothing. I wish him a relaxed retirement in which he will, apparently, write his four-page memoir, David Cameron: My Struggle (sub-subtitle: Eton Mess?). I hope he does not attempt to deny “the prosciutto affair”, because there is no need. It was not true. It was too pure a metaphor.

So the honours system, an essential part of our alienating politics, alongside dodgy donors, duck houses and George Galloway, endures in its worst form as conventional politics fails. It is a donkey sanctuary for political friends and Bruce Forsyth. I am not suggesting that everyone who has been honoured is dreadful – some lollipop ladies deserve to be patronised with an OBE (when there is no E any more), I am sure, and the lords, some of whom are excellent, are the functional opposition now – but the system can no longer be defended by the mirth potential of watching politicians ponder what light-entertainment celebrities might swing a marginal before being posthumously accused of rape. We must find something better before the house burns down. Perhaps a robust parliamentary democracy?

The problem is best expressed by the existence of a specialist consultancy called Awards Intelligence, which engages in “VIP brand-building” by soliciting awards. It sells “awards plans” from £795, which I could well imagine Philip Green perusing as he bobs about aboard Lionheart, were it not too late. The Awards Intelligence website tells us so much, though obliviously, about the narcissism of modern politics that I am tempted to reproduce it in full. But I will merely report that it asks:

"Did you know that you can join the House of Lords on a part-time basis as an Independent Crossbench Peer or a political peer affiliated to one of the main politial parties – even if you have ongoing work, family or community commitments!"

The message from Awards Intelligence, which boasts of a 50 per cent success rate, is clear: the legislature is part-time, it exists to “instil trust, add credibility and provide a platform for you to have your say” – and it can’t always spell “political”.

Sir Shifty and Awards Intelligence do not constitute the worst crisis in the history of honours, dreadful though they are. During the First World War the royal German cousins were stripped of their garters, so that British soldiers would not have to kill men of higher rank. But it is time for the Queen to stop pinning toys on nipples. They are part of a political system sweeping us, swiftly, towards the night.

This article first appeared in the 28 July 2016 issue of the New Statesman, Summer Double Issue