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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How the Lib Dems learned to love all-women shortlists

Yes, the sitting Lib Dem MPs are mostly white, middle-aged middle class men. But the party's not taking any chances. 

I can’t tell you who’ll be the Lib Dem candidate in Southport on 8 June, but I do know one thing about them. As they’re replacing a sitting Lib Dem (John Pugh is retiring) - they’ll be female.

The same is true in many of our top 20 target seats, including places like Lewes (Kelly-Marie Blundell), Yeovil (Daisy Benson), Thornbury and Yate (Clare Young), and Sutton and Cheam (Amna Ahmad). There was air punching in Lib Dem offices all over the country on Tuesday when it was announced Jo Swinson was standing again in East Dunbartonshire.

And while every current Lib Dem constituency MP will get showered with love and attention in the campaign, one will get rather more attention than most - it’s no coincidence that Tim Farron’s first stop of the campaign was in Richmond Park, standing side by side with Sarah Olney.

How so?

Because the party membership took a long look at itself after the 2015 election - and a rather longer look at the eight white, middle-aged middle class men (sorry chaps) who now formed the Parliamentary party and said - "we’ve really got to sort this out".

And so after decades of prevarication, we put a policy in place to deliberately increase the diversity of candidates.

Quietly, over the last two years, the Liberal Democrats have been putting candidates into place in key target constituencies . There were more than 300 in total before this week’s general election call, and many of them have been there for a year or more. And they’ve been selected under new procedures adopted at Lib Dem Spring Conference in 2016, designed to deliberately promote the diversity of candidates in winnable seats

This includes mandating all-women shortlists when selecting candidates who are replacing sitting MPs, similar rules in our strongest electoral regions. In our top 10 per cent of constituencies, there is a requirement that at least two candidates are shortlisted from underrepresented groups on every list. We became the first party to reserve spaces on the shortlists of winnable seats for underrepresented candidates including women, BAME, LGBT+ and disabled candidates

It’s not going to be perfect - the hugely welcome return of Lib Dem grandees like Vince Cable, Ed Davey and Julian Huppert to their old stomping grounds will strengthen the party but not our gender imbalance. But excluding those former MPs coming back to the fray, every top 20 target constituency bar one has to date selected a female candidate.

Equality (together with liberty and community) is one of the three key values framed in the preamble to the Lib Dem constitution. It’s a relief that after this election, the Liberal Democratic party in the Commons will reflect that aspiration rather better than it has done in the past.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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