Militant Liverpool by Diane Frost and Peter North: The secret of a revival - we stopped feeling sorry for ourselves

In recent years, with the help of a substantial capital injection from the EU, Liverpool has undergone a long-overdue renaissance. A friend of mine once asked the city’s former Anglican bishop David Sheppard how he explained the revival, to which Sheppard

Militant Liverpool: a City on the Edge
Diane Frost and Peter North
Liverpool University Press, 223pp, £14.99

Over the past 50 years, Britain’s manufacturing base has steadily declined, as once thriving industries have fallen into the hands of multinational corporations and transferred to the cheap labour economies of the Far East. All of our great northern cities have suffered from this phenomenon but none more than Liverpool, once one of the great port cities of the empire. In the last five decades of the 20th century, the population of Merseyside halved as people moved away in search of work, leaving dereliction and despair in their wake.

These problems were exacerbated by a history of sectarian politics, appalling industrial relations and a growing sense of victimhood. In 1983, on the night that the Labour Party suffered its greatest ever defeat, Liverpool elected a Labour council. Although no more than a quarter of the councillors were paidup members of Militant, the Trotskyite sect, they wielded a disproportionate influence. Derek Hatton soon became a household name and, before long, he and his colleagues had dragged the council into an unwinnable confrontation with the Thatcher government.

This book is a readable, if somewhat repetitive and sloppily edited account, by two Liverpool academics, of the three tumultuous years during which the Militant-dominated council ruled Liverpool. It is based on interviews with many of the leading protagonists. The council’s philosophy was workerist and unremittingly confrontational. The private sector barely featured in its plans. It was committed to a substantial programme of public works, regardless of the available resources. It saw nothing wrong with the tradition that public-sector jobs were allocated by union shop stewards – with the result that there was scarcely a non-white face to be seen.

The council’s first act was to set a deficit budget and then demand that the government make up the shortfall with money that it claimed had been “stolen” from Liverpool by a succession of poor rate support grant settlements. Initially, it had some success. A Tory local government minister, the genial Patrick Jenkin, conceded to much of the council’s demand, only to be rewarded with a huge bout of triumphalism, the gist of which was that the Liverpool working class had, through mass action, defeated the Tories.

This was a serious misreading of the tea leaves. When, the following year, the councillors attempted to pull the same stunt, they found Jenkin rather less amenable. Who would blink first? By now, the council was claiming that the government had “stolen” £350m of Liverpool’s money.

The Tories were having none of it. Far from increasing the council’s housing allocation, they cut it. The council plugged the gap with £90m in loans from French and Swiss banks. Despite this, in 1985, the councillors refused to pass a budget, in defiance of warnings from the district auditor that they could be disqualified and surcharged. The council racked up huge debts. All attempts at compromise were rejected. A long struggle ensued, during which 30,000 public employees were issued with redundancy notices. The debacle ended in recrimination, with 47 councillors being surcharged and disqualified from office and the city handed back to Liberal Democrat control.

If Liverpool’s militants expected much sympathy from the wider Labour movement, they were disappointed. Neil Kinnock, then party leader, regarded them as a liability, alienating the public and providing the Tories and the tabloid media with yet another stick with which to beat the poor old Labour Party. In due course, the Liverpool party was purged and the Militants expelled.

In recent years, with the help of a substantial capital injection from the EU, Liverpool has undergone a long-overdue renaissance. A friend of mine once asked the city’s former Anglican bishop David Sheppard how he explained the revival, to which Sheppard replied: “We stopped feeling sorry for ourselves.”

"In the last five decades of the 20th century, the population of Merseyside halved as people moved away in search of work, leaving dereliction and despair in their wake." Photograph: Getty Images.

This article first appeared in the 03 June 2013 issue of the New Statesman, The Power Christians

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Even before Brexit, immigrants are shunning the UK

The 49,000 fall in net migration will come at a cost.

Article 50 may not have been triggered yet but immigrants are already shunning the UK. The number of newcomers fell by 23,000 to 596,000 in the year to last September, with a sharp drop in migrants from the EU8 states (such as Poland and the Czech Republic). Some current residents are trying their luck elsewhere: emigration rose by 26,000 to 323,000. Consequently, net migration has fallen by 49,000 to 273,000, far above the government's target of "tens of thousands" but the lowest level since June 2014.

The causes of the UK's reduced attractiveness are not hard to discern. The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit and a rise in hate crimes and xenophobia are likely to be the main deterrents (though numbers from Romania and Bulgaria remain healthy). Ministers have publicly welcomed the figures but many privately acknowledge that they come at a price. The OBR recently forecast that lower migration would cost £6bn a year by 2020-21. As well as reflecting weaker growth, reduced immigration is likely to reinforce it. Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.

Earlier this week, David Davis revealed the government's economic anxieties when he told a press conference in Estonia: "In the hospitality sector, hotels and restaurants, in the social care sector, working in agriculture, it will take time. It will be years and years before we get British citizens to do those jobs. Don’t expect just because we’re changing who makes the decision on the policy, the door will suddenly shut - it won’t."

But Theresa May, whose efforts to meet the net migration target as Home Secretary were obstructed by the Treasury, is determined to achieve a lasting reduction in immigration. George Osborne, her erstwhile adversary, recently remarked: "The government has chosen – and I respect this decision – not to make the economy the priority." But in her subsequent interview with the New Statesman, May argued: "It is possible to achieve an outcome which is both a good result for the economy and is a good result for people who want us to control immigration – to be able to set our own rules on the immigration of people coming from the European Union. It is perfectly possible to find an arrangement and a partnership with the EU which does that."

Much depends on how "good" is defined. The British economy is resilient enough to endure a small reduction in immigration but a dramatic fall would severely affect growth. Not since 1997 has "net migration" been in the "tens of thousands". As Davis acknowledged, the UK has since become dependent on high immigration. Both the government and voters may only miss migrants when they're gone.

George Eaton is political editor of the New Statesman.