Time to abolish the UK's last "rotten borough" - the City of London Corporation

One year on from the Occupy protest at St Paul's, we're no closer to reforming the dark heart of predatory capitalism.

On the night Occupy LSX marched into the City tweets came into me asking for help as the police kettled activists on the steps of St Paul's. I went down there and did what little I could to prevent people being roughed up. Over the next few days the tents soon appeared and the occupation became a debating forum on the causes and creators of the economic crisis.

As days turned into weeks and the cathedral hierarchy split over whether to evict the camp, the occupiers soon discovered the existence of an organisation the vast majority of the population barely knows exists. The City of London Corporation was flushed out of the shadows in which it normally lurks to show that it was something more than the organiser of a good pageant in the Lord Mayor’s Show.

Naturally members of Occupy turned their inquisitive attention to this seemingly quaint body that was threatening to send in the bailiffs. Just as the direct action by UK Uncut transformed the issue of tax evasion from a dry debate for accountants into a popular cause, Occupy has helped turn the spotlight on the abuse of power that is the City Corporation.

In Michael Chanan’s and Lee Salter’s new film, “Secret City”, Maurice Glasman explains ironically that St Paul’s was the site of our earliest democracy, where the citizens of London in medieval times would hold hustings. In the sixteenth century the city took over from Amsterdam as the centre of international credit and maritime trade. Its coffee houses became banks and governments became dependent upon them for loans, largely to finance wars.

Government's reliance on the city to finance the national debt gave the city such influence that the Corporation was able to avoid the successive reforms that established democratic local government in the rest of the country.

Instead the City Corporation to this day retains the business vote, which overwhelms the votes of residents in the elections for its Common Council. The vast proportion of elections in the City have not been contested. Instead an old boys’ network amongst the companies sorts out which favoured son is to be bestowed the seat.

This usually prevents anyone slipping through the net who shows any spark of independence, although not always. Around a decade ago, Malcolm Matson was elected with 80 per cent of the vote but was known to favour reform. He was hauled before the City’s Court of Aldermen and was blackballed. Local vicar, the William Taylor, was also successful in being elected but as soon as he started asking questions about the Corporation’s unpublished accounts, his bishop received letters with more than a hint of a threat.

Matson and Taylor could not be tolerated because they were asking questions about the massive resources being spent on the secretive role the City Corporation plays as the lobbyist for finance capital. The Corporation has used its influence to dictate successive government’s policies on the regulation of finance and taxation.

This secured the deregulation of the “Big Bang” era of Thatcher and the hands off approach under Blair and Brown. City speculators were allowed to create the bubble that eventually burst to create the current economic crisis. London became a funnel through which trillions poured into tax havens and the concentration on financial speculation rather than investment in our manufacturing base unbalanced our whole economy. Obscene levels of incomes and conspicuous spending in the City have also created a society grotesquely scarred by inequality and a capital city in which immense wealth is located cheek by jowl with stark levels of poverty.

It was Labour Party policy since its foundation to abolish the City Corporation, until Blair arrived and the policy changed to reform. The City cynically interpreted reform as simply giving more businesses the vote.

The abolition of this last “rotten borough” would show that Ed Miliband is serious about tackling predatory capitalism.

John McDonnell is the Labour MP for Hayes and Harlington

"Secret City" previews at the House of Commons on Tuesday 16 October. For details of screenings and to watch a trailer for the film, visit: secretcity-thefilm.com

A statue of a dragon that marks the boundary of the City of London. Photograph: Getty Images
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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.