Why we need a Lib Dem-Tory alliance

It’s time to strengthen the liberal-right in British politics.

Nearly two years into the coalition, both of the governing parties are promoting their distinct identities to garner supporters. This is because the Conservatives want an outright majority. The Liberal Democrats just want survival.

But as David Laws commented in a keynote speech to Bright Blue this week, now is not the time to stress differentiation and split the coalition. A better strategy - for both parties and, most importantly, for the country, especially in this period of economic turbulence - is to stress the shared agenda of the two partners and the longevity of the current government.

In actual fact, it's time to seriously consider a long-term relationship, even a merger, between the two parties which lasts beyond 2015. The liberal-right needs a strengthened political identity in this country, to dilute the influence of ideologues and reactionaries, and to maintain progressive policy-making.

The Conservatives face a weak opposition and Cameron is popular with the electorate. But it is not enough. Polling by Michael Ashcroft of voters in key marginal seats shows that those who failed to give the party the votes they needed for a majority, are still sceptics today. Low-income women and ethnic minorities are particularly doubtful. Teaming up with the Lib Dems would help reassure such voters that the party really is decontaminated, modern and liberal-minded.

The Lib Dems can never govern alone. They rely on coalitions. The problem is, transferring from one party to the other looks like flip-flopping, and they will be punished by voters. Their best hope of long-term influence lies in a merger with one of the major political parties. A liberal-right alliance would be consistent with their Gladstonian traditions and allow greater distinctiveness and influence than a Lab-Lib pact.

Finally, and most importantly, the country would benefit from a new liberal-right alliance. The truth is, since the 1990s, most senior minsters and civil servants have subscribed to economic and social liberalism: a belief in a competitive, market-based economy with protection and enhanced opportunities for the most vulnerable.

So all recent governments have sought low taxes, light-tough regulation and private sector engagement in public services. But, at the same time, there has been commitments to tax credits, enhanced investment in hospitals and schools, better workers' rights and a determination to protect personal freedom. This consensus on policy-making has - apart from notable anomalies - been followed by Cameron, who followed Blair, who followed Major.

Yes, there are problems with our economy and our society. More still needs to be done. But these liberal, pro-market reforms - based on close inspection of evidence - have made this country, slowly but surely, better. Satisfaction with our health service is at an all-time high. Educational standards are up. Crime and levels of poverty are down.

But the liberal-right - on the modernising wings of the three main parties - who are open to evidence and passionate about progress are under constant pressure from ideologues, who are nervous and uncomfortable about the direction of modern Britain. To keep these voices happy, archaic and ridiculous narratives, as well as ill-considered policies, are often trumpeted.

So, for example, we have Cameron proposing a transferable tax allowance for married couples, a throw-back to the 1950s which will do nothing to boost marriage rates. Clegg, meanwhile, went into the last election calling for the scrapping of tuition fees, despite the fact that the new funding arrangements have not harmed university access for the most deprived. In the Labour party, there is stubborn opposition to private sector involvement in the health service, despite a wealth of evidence illustrating that increased competition enhances the performance and efficiency of hospitals.

Such thoughtless policy positions are championed simply to gratify unthinking, prejudiced viewpoints, which spread and are slavishly adhered to in political parties. Ideologues that enjoy the belligerency and tribalism of politics rise up the ranks and wield too much power, distorting steps to social and economic progress.

A new liberal-right alliance could change that. There would, of course, be room for those on the modernising wing of the Labour Party. Those who are passionate about good policies and open to new ideas, not dogmatists and tribalists, would be more influential. And the silent majority in this country - who simply long for a better life for their families, whichever party is in power - would benefit from a new sort of politics: discursive, progressive and evidence-based.

Ryan Shorthouse is the Director of Bright Blue

Ryan Shorthouse is the Director of Bright Blue, a think tank for liberal conservativism 

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.