Labour should learn from the National Health Action Party, not strangle it

The anti-privatisation party is pioneering a new sort of politics.

Yesterday, at just about the time the Chancellor was getting to his feet to give his Autumn Statement, I met with the leadership of Britain’s newest political party the National Health Action Party (NHAP). Launched in November, the party consists of medics and health academics to fight the commercialisation and break-up of the NHS. The question is why do they feel they are necessary and what does this tell us about the state of party politics?

Lets start with reaction of at least one person in the Labour Party to the NHAP.  Paul Richards, a former special adviser and now regular commentator, said on their launch that the NHAP "must be strangled at birth" as it might deprive Labour of valuable seats. There are at least two responses we could make to Paul’s rather emotive desire.  The first is how does he know where the NHAP are going to stand candidates? And second – how come, even for a moment, he didn’t consider why they felt it was necessary to form a party to save the NHS – or more bluntly why they no longer trusted Labour with that task?

What Paul’s reaction revealed was the darkest side of ‘Laboursim’, a culture which is just about dominant within the party. It believes that if you knock on enough doors, deliver enough leaflets, elect enough Labour MPs – then they will occupy the state on a majority basis and deliver socialism to the people. Anything that gets in the way of that obvious and clear cut process must be destroyed or "strangled at birth". Indeed, the rather obvious failure to deliver socialism can only be the fault of people who get in Labour’s way – ‘it can't be our fault so it must be them’.  Hence the rather Freudian anger at the doctors but also the Liberal Democrats, Caroline Lucas, Plaid Cymru, Respect, and any independents. Someone get the couch – we need a psychologist, not a surgeon.

So ingrained is the belief in this top-down of theory of change that if "socialism is what a Labour government does" (as Herbert Morrison phrased it) then what ever it does must be socialism.  So setting the bankers free to wreck the economy is wrapped up in the glorious and crucial sound bite of New Labour that "social justice and economic efficiency go hand in hand". It means ‘let capitalism rip and we will top skim the cream and give a bit it to the poor, not least the NHS.'

But the economic efficiency side of the equation cast its shadow over everything. First you had to hide any redistribution as it was anti-free market and eventually obediently lower taxes to a level that would help wreck the country's finances. In addition, investment in the NHS had to be through capital friendly PFI schemes. Doctors and nurses could not be trusted to manage delivery themselves, there could be no public service ethos, instead they had to be forced to compete through the creation of quasi-markets and contestability – or they had to beaten over the head with ridged performance targets that always ended in with one box being ticked at the cost of failure elsewhere. Private sector clinics were brought and the likes of Virgin Health and Circle encouraged along their merry profitable way.  The Tories have of course picked up on all this and will push it to its logical conclusion.  They want to see hospitals fail and go bankrupt, they want to see chaos – out of chaos, just like the banking crash, they will say this is the fault of the big state – what we need is full privatisation. The NHS offends their free market principles and they will not rest until every element of it has a price tag.

So maybe we can see why the medics, health academics and campaigners are a tad nervous about sitting back and trusting Labour. Some of the very people who are saying warmer and kinder things now were there when all this happened. The NHAP know the currency that matters most is votes. And they intend to grab them. Not to hurt Labour, they aren’t stupid, though a thoroughly New Labour scalp would feel be nice for them I’m sure. No, the people in their sights will be the Orange Bookers and the Tories. If Labour is sensible and not just tribal, it might recognise the electoral dividend of such a move – or it could try to strangle them at birth. 

The people leading the NHAP are brave and daring. They feel like pioneers of a new sort of politics, just as Labour’s original pioneers were after becoming disillusioned with the Liberals. They are more than a single-issue party but are using a single issue to raise issues of equality, power and democracy. They refuse to fit within the narrow confines of the Labourist model that denies you any voice and any say. In a world defined by Facebook, and everything that is good and bad about it, people want to form different identities and relationships at different times. The straitjacket of obedience and conformity cannot be placed over the complexity and diversity of the future.

This is just the taste of things to come. British party politics is entering a volatile phase. Expectations have never been lower about what the two main parties can deliver. Witness exactly how much more growth would come from Labour’s five-point plan. But if Labour remains necessary to the possibility of radical change it is far from sufficient. The fight for totemic issues such as tax justice feel remote from it as do the real change makers out there like 38 Degrees, UK Uncut and Mumsnet.

Labour is going to have to change its ways if it wants to live in the real world – a world now a million miles from the rigid, disciplined and hierarchical structures of an essentially Victorian age. Ed Miliband knows this, as does the Labour for Democracy network that launched this week. It is not just a policy change Labour needs for a good society, but a culture change.

P.S.  Sorry this is personal but linked. This week makes the 20th anniversary of the Valley Party, the one-off Greenwich based political party who stood candidates to get Charlton Athletic back to its famous ground. They didn’t win a seat but harvested so many votes that the Labour council caved in and gave them what they wanted. Let's hope the same is true for the NHS.

Neal Lawson's column appears weekly on The Staggers.

Demonstrators protest against the government's Health and Social Care Bill in London. Photograph: Getty Images.

Neal Lawson is chair of the pressure group Compass, which brings together progressives from all parties and none. His views on internal Labour matters are personal ones. 

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

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