Philistines: neo-liberal Tories force cuts and closures on Tyneside

Who else, but the state, would build a library in Jesmond?

In June, Zadie Smith attempted to express in words how it feels to repeatedly defend the idea of public libraries, only to find your earnest and seemingly watertight arguments have made little impact on the run of things. “There aren’t many institutions left that fit so precisely Keynes’s definition of things that no one else but the state is willing to take on,” she wrote. “A library is a different kind of social reality (of the three dimensional kind), which by its very existence teaches a system of values beyond the fiscal.”

While Smith was sitting at her laptop (on a crowded desk in an American library), the then Minister for Culture, Media and Sport Jeremy Hunt was busy rolling out a £125m advertising campaign aimed at promoting all that is “Great” about Britain. “Knowledge is GREAT”, “Heritage is GREAT”, “Creativity is GREAT” ran posters hanging from the walls of Grand Central Station in New York. Union Jack-clad subway trains rumbled through the tunnels below. The message was repeated in cities worldwide.

In this instance, “knowledge”, “heritage” and “creativity” exist as marketable items – buzzwords, wheeled out in an effort to promote tourism to the UK. They are not elements of British life valued beyond their ability to generate revenue. If they were, why would Newcastle council be faced with enforcing a 100 per cent cut in arts funding, and why would it be talking about closing the majority of its libraries?

The culture which predicated this year of flag-spasming jingoism (QED Boris Johnson on the games: “Yesterday I cycled down the canal towpath to the Olympic Park, through Hackney; and everywhere I looked there were scenes of riparian merriment of the kind you expect to see at the Henley regatta”), is built of delicate stuff. Earlier in the week, representatives from 23 British theatres argued that “a modest but sustained investment in the arts has had an incalculable effect on the country.” Nicholas Hytner, Creative Director at the National Theatre, said the government’s default promise to encourage arts giving was nothing but “a smokescreen”. He enquired how private funding was to be secured in poorer areas beyond London. “These are not communities where there is space cash floating around. Where are the super-rich of Bolton, for example?” The same arguments have been bandied around with reference to our GREAT universities.

Some of the products of a “modest but sustained” arts investment since the 1950s were archived in Danny Boyle’s opening ceremony. Boyle, whose own interest in theatre might never have emerged if not for a job as an usher at the (state-sponsored) Octagon Theatre in Bolton, said that such organisations “create communities, and these communities come together and make these big works of art like the opening ceremony.” The bottom line, with theatre as with libraries, galleries and museums, is that “they provide something else to believe in … something in our cities and towns that isn’t Wetherspoons and Walkabout pubs and Mario Balotelli and John Terry.”

Across the globe, a history of private financial mismanagement and greed has been successfully repackaged into a reality in which an undeserving public forced the state to overspend and kamikaze into recession. This fallacy is now largely uncontested. The novelist Jeanette Winterson has proposed one way in which the companies who have gained most from doing business in Britain, might repay their debt to the public. Invoking the legacy of Andrew Carnegie, whose red-brick libraries, purposefully built with ascending stairs, a lantern near the door and the motto “let there be light”, Winterson argued:

“Libraries cost about a billion a year to run right now. Make it two billion and charge Google, Amazon and Starbucks all that back tax on their profits here. Or if they want to go on paying fancy lawyers to legally avoid their moral duties, then perhaps those companies could do an Andrew Carnegie and build us new kinds of libraries”.

For the price of a Starbucks franchise and a “take this book home without returning it for only £6.78 online at…” insert on the back page, it’s an interesting proposition. But the kind of paternalistic “big ideas” conservatism which encouraged philanthropy for the public good is a thing of the past. Neo-liberal austerity thinking does not require any such commitment.

Newcastle’s Theatre Royal, Northern Stage, Tyneside Cinema and Seven Stories are some of the institutions may loose 100 per cent of council funding. This does not mean they would fold, necessarily, but it does destabilise their efforts. The Theatre Royal would lose more than £500,000 annually. Chief executive Philip Bernays has pointed out, “we play to audiences about 15% above the national average, so we’re almost as successful as it’s possible to be … such a cult would almost certainly have an impact on the level of service we can offer or the programme that we can provide.”

Of the 18 libraries on Tyneside, only the Central Library is safe. This means that smaller, suburban libraries such as Jesmond – which provides internet access, local history resources, space for community groups, reading groups, lifelong learning courses and, of course, freely available books – are likely to be sold off to developers, despite the fact so many of them are less than 15 years old.

Zadie Smith expressed her frustration at having to write a long newspaper article to defend public libraries. “What kind of a problem is a library?” she asked. The services they provide, as places of free education, pleasure and community focus (perhaps the only indoor space available to enjoy without being expected to open your wallet), do not provide obvious financial benefits, and are therefore expendable. Local authors in the north east have written an open letter to the council, saying: “It is the young and the elderly who disproportionately depend on branch libraries. The cost in educational underachievement would far outweigh any savings made by cuts.”

But their argument, like Smith’s, will only be added to the pile. Because who, today, believes strongly enough that the people of Jesmond want, need and deserve a library? And more importantly, who believes it strongly enough to agree to pay for it, when the state no longer will?

The first Carnegie library, built in Dunfermline in 1883. Photo: Getty Images.

Philip Maughan is a freelance writer in Berlin and a former Assistant Editor at the New Statesman.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump