The black marks on the government's inequality record

Half way through the parliamentary term, how is the government doing? Not too well, writes One Society's Larissa Hansford.

At the half way point of the Coalition Government's term, debate rages over top pay, low pay and the persistently vast gulf between the two.

The trend to an expanding pay gulf is one that right and left alike have denounced. Front page headlines express outrage over the £1.32m payout to theformer director-general of the BBC, influential multinational board members call for a pay cap on corporate bonuses, and studies show that pay for top bosses rose an average of 10 per cent in 2011. Meanwhile £5m people are living at below living wage pay, with both Boris Johnson and Ed Milliband, backing an expansion of the scheme.

In the midst of so many calls for a reduction in the UK pay gulf, how have the Government performed on these issues? A new report by One Society, The Coalition Government and Income Inequality: The half term report, indicates that their record is wanting. It finds not only that inequality has not been reduced, but concludes that Coalition polices are actually likely to produce an increasing gap between the richest and the rest, at the same time as average incomes fail to keep up with the rising cost of living.

A One Society report on fair pay in Local Authorities showed how much progress has been made in the public sector over the last few years in addressing its inequalities. However, the private sector points out the report, where pay ratios are much more extreme, has largely escaped notice. The much reported "shareholder spring" led to just six substantial protest votes over extortionate pay at the top. BIS (The Department for Business, Innovation and Skills) proposals to increase shareholder power have failed to incorporate important stakeholders such as company employees. Proposals on binding pay votes have been watered down and there has been no significant action on issues such cash bonuses and simplification of pay packages.

At the lower end of the payscale, the two year public sector pay freeze and the upcoming two year below-inflation pay rise have put pressure on already low public sector salaries. Not only does this have a direct impact on inequality, but along with increasing costs of living, has serious implications for living standards. Increased costs of childcare, transport and cuts to tax credits have all played their part in this.

When they stood in the general election, inequality was a major concern for both coalition parties. The Conservative manifesto called for a society in which “wealth and opportunity must be more fairly distributed”. The Liberal Democrats meanwhile decried the fact that “Britain [is] one of the most unequal societies in the developed world, where ordinary people struggle to make ends meet.”

With 74 per cent of people believing that income inequality is too high and even CEOs beginning to recognise they are probably overpaid, it is clearly still a highly relevant issue to the electorate. On top of this, No. 10's favourite think tank recently warned that the Conservative Party are still seen as the party of the rich.

"Excessive" levels of income inequality are not only unpopular, but, as the One Society's report sets out, they are also inefficient. Growing evidence shows that large pay differentials stunt economic growth and cause instability. It also highlights the harmful effect that inequality has on our communities, our health and our environment.

For all these reasons, argues the report, political parties who want to be taken seriously in the next general election will have to outline a plan of action to tackle the UK's unacceptable levels of income inequality. Left and right alike must sit up and take notice of the harmful effect of extreme wealth disparities, and the significant impact that government policy could have in addressing them.

Marking the scorecard. Photograph: Getty Images

Larissa Hansford is a Campaign Assistant at One Society.

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Meet Anne Marie Waters - the Ukip politician too extreme for Nigel Farage

In January 2016, Waters launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). 

There are few people in British political life who can be attacked from the left by Nigel Farage. Yet that is where Anne Marie Waters has found herself. And by the end of September she could well be the new leader of Ukip, a party almost synonymous with its beer-swilling, chain-smoking former leader.

Waters’s political journey is a curious one. She started out on the political left, but like Oswald Mosley before her, has since veered dramatically to the right. That, however, is where the similarities end. Waters is Irish, agnostic, a lesbian and a self-proclaimed feminist.

But it is her politics – rather than who she is – that have caused a stir among Ukip’s old guard. Former leader Paul Nuttall has said that her views make him “uncomfortable” while Farage has claimed Ukip is “finished” if, under her leadership, it becomes an anti-Islam party.

In her rhetoric, Waters echoes groups such as the English Defence League (EDL) and Britain First. She has called Islam “evil” and her leadership manifesto claims that the religion has turned Britain into a “fearful and censorious society”. Waters wants the banning of the burqa, the closure of all sharia councils and a temporary freeze on all immigration.

She started life in Dublin before moving to Germany in her teens to work as an au pair. Waters also lived in the Netherlands before returning to Britain to study journalism at Nottingham Trent University, graduating in 2003. She subsequently gained a second degree in law. It was then, she says, that she first learnt about Islam, which she claims treats women “like absolute dirt”. Now 39, Waters is a full-time campaigner who lives in Essex with her two dogs and her partner who is an accountant.

Waters’s first spell of serious activism was with the campaign group One Law for All, a secularist organisation fronted by the Iranian feminist and human rights activist Maryam Namazie. Waters resigned in November 2013 after four years with the organisation. According to Namazie, Waters left due to political disagreements over whether the group should collaborate with members of far-right groups.

In April 2014, Waters founded Sharia Watch UK and, in January 2016, she launched Pegida UK with former EDL frontman Steven Yaxley-Lennon (aka Tommy Robinson). The group was established as a British chapter of the German-based organisation and was set up to counter what it called the “Islamisation of our countries”. By the summer of 2016, it had petered out.

Waters twice stood unsuccessfully to become a Labour parliamentary candidate. Today, she says she could not back Labour due to its “betrayal of women” and “betrayal of the country” over Islam. After joining Ukip in 2014, she first ran for political office in the Lambeth council election, where she finished in ninth place. At the 2015 general election, Waters stood as the party’s candidate in Lewisham East, finishing third with 9.1 per cent of the vote. She was chosen to stand again in the 2016 London Assembly elections but was deselected after her role in Pegida UK became public. Waters was also prevented from standing in Lewisham East at the 2017 general election after Ukip’s then-leader Nuttall publicly intervened.

The current favourite of the 11 candidates standing to succeed Nuttall is deputy leader Peter Whittle, with Waters in second. Some had hoped the party’s top brass would ban her from standing but last week its national executive approved her campaign.

Due to an expected low turnout, the leadership contest is unpredictable. Last November, Nuttall was elected with just 9,622 votes. More than 1,000 new members reportedly joined Ukip in a two-week period earlier this year, prompting fears of far-right entryism.

Mike Hookem MEP has resigned as Ukip’s deputy whip over Waters’ candidacy, saying he would not “turn a blind eye” to extremism. By contrast, chief whip, MEP Stuart Agnew, is a supporter and has likened her to Joan of Arc. Waters is also working closely on her campaign with Jack Buckby, a former BNP activist and one of the few candidates to run against Labour in the by-election for Jo Cox’s former seat of Batley and Spen. Robinson is another backer.

Peculiarly for someone running to be the leader of a party, Waters does not appear to relish public attention. “I’m not a limelight person,” she recently told the Times. “I don’t like being phoned all the time.”

The journalist Jamie Bartlett, who was invited to the initial launch of Pegida UK in Luton in 2015, said of Waters: “She failed to remember the date of the demo. Her head lolled, her words were slurred, and she appeared to almost fall asleep while Tommy [Robinson] was speaking. After 10 minutes it all ground to an uneasy halt.”

In an age when authenticity is everything, it would be a mistake to underestimate yet another unconventional politician. But perhaps British Muslims shouldn’t panic about Anne Marie Waters just yet.

James Bloodworth is editor of Left Foot Forward

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear