Labour's challenge to Osborne's attack on the poor could be a turning point

If Labour perseveres, it might change the terms of debate on a fundamental issue.

This week could mark a turning point for Labour and everyone who wants to live in a better society. On a crucial political framing issue, the leader of the Labour Party refused to follow the right to the right. The issue was benefit cuts and if an admittedly long but tactically and clever game is played we might change the terms of debate on a fundamental issue.

Let's start where we always should: with what we believe. I believe this. That no one was born wanting to live their lives on a couch avoiding not just work but the opportunity to make the most of their life – to be a fully rounded citizen and able to make the most of all their talents.  We are born equal – that is with an equal right to make the most of the wonderfully different talents and attributes we have. Some of course got lucky in terms of looks, brains, body or family wealth. But that notion of fundamental equality requires society to intervene to equal out as many life chances as possible.

So when I look into the eyes of another – whether it’s a rich banker or a person in receipt of benefits payments – I don’t really see a ‘greedy pig’ or a ‘skiver’ but a fellow human being.  From that basis a different debate is possible – one that aspires to a much more ambitious sense of the good life and a good society.

We can confine the debate to in-work benefits. We can compare the rich to the poor. We can talk about the lack of jobs. We can compare tax avoidance to benefit fraud. We can point to who the real scroungers are, as Compass, the organisation I chair, did this week. We can ask why highly profitable companies aren’t paying a living wage to the people their profits rely on. All of these things can help. But it won't change the underlying terms of debate. The only thing that will is a different and more humane view of each other and the massive inequalities in income, wealth and power which shape our life chances.

The opinion polls are, of course, in a different place. In harsh economic times people can become harsher in their attitudes.  This is equally the case when they are egged on by George Osborne trying to set the in-work poor against the out-of-work poor as he did in his Autumn Statement.

Some in Labour’s ranks worry about the electoral consequences of the more nuanced approach taken by Ed Miliband and Ed Balls. Some fear that it's better to lose the argument but win the election so that at least some assistance can be given to the poor – no matter how little and at a high price  of continually  conceding critical ground. It is an understandable strategy at a rather minimalist level but it eventually and inevitably ends up destroying itself. Over time, there is no point in the Labour Party merely doing the work of the Tories but just at a slightly slower pace. The party will then just hollow out as it forgets what its mission is. And lest we forget, what Labour leaders say and do matters. The British Social Attitudes Survey shows clearly what happens when they stop saying inequality matters – the public no longer think inequality matters and support for social security plummets.

That doesn’t mean we don’t have to take great care with this debate. This is not a new war that can be won in one response to one pre-budget statement. The old war was lost over decades as the rich were heralded for their riches and the poor were blamed for their poverty. We are going to have to finesse our arguments and persevere on this for some time using all sorts of new language, frames and policies. And we are going to have to strike up unlikely alliances – not least with those on the right who still believe in a "one nation" and compassionate conservatism. It may be paternalistic but it at least understands the responsibility of the rich to the poor.

Neither can we leave the debate to those at the top.  Like every other big culture change – like attitudes to race and sexuality – this is a war we have to engage in everyday in our own lives.  What we say and do matters.  We can confront prejudice and fear in the workplace, pub and street. We have to be the change we wish to see in the world.

No one really wants to spend his or her life doing little that is productive. We are only fully human when we are creative. That doesn’t have to be paid work; it can be running a family or running the local community. The economy cannot function without either of those tasks being performed. Some have such serious mental and health problems that society has to support them and we should be proud that we can. Other needs intensive help to rebuild their confidence and ability to live a more fulfilling life. We should give them that help.

This week a line was drawn in the sand. It’s not yet in the right place – but it’s a good start. From here we can and must fight back. The other side win only when we stop fighting – if we don’t stop fighting we cannot lose. 

On a crucial political issue, Ed Miliband refused to follow the right to the right. 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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Labour trying to outdo Ukip on border control is the sure path to defeat

Only Diane Abbott has come out fighting for free movement. 

There is no point trying to deny it. Paul Nuttall’s election as Ukip leader is dangerous for Labour. Yes, Nuttall may not be a credible voice for working-class people – he ran as a Tory councillor in 2002 and has said that “the very existence of the NHS stifles competition”. Yes, he may be leader of a party which has (for now) haemorrhaged donors and supporters. But what Nuttall’s election represents is the coming of age for a form of right-wing populism which is pointed directly at Labour’s base. Along with the likes of Ukip's major donor Arron Banks, Nuttall will open up a second front against Labour – focused on blaming migrants for falling wages and crumbling services.

In the face of this danger, and the burning need to create a narrative of its own about the neglect of the communities it represents, Labour’s main response has been confusion. Barely a week has gone by without a major Labour figure repeating the touchstone myths on which Ukip has built its working class roots. Speaking on the Andrew Marr Show, Emily Thornberry openly backed the idea that migration has dragged down wages. “Do I think that at the moment too many people come into this country? Yes I do”, she said.

Another response has been to look for policies that transcend the debate altogether, while giving a nod to the perceived “concerns” that voters harbour about immigration. When Clive Lewis spoke to the Guardian some weeks ago, he also repeated the idea that free movement “hasn’t worked for many of the people in this country, where they’ve been undercut” and coupled this with compulsory trade union membership for those coming to Britain to work – a closed shop for migrant workers.

It is unsurprising that MPs on the right of the party – many of whom had much to say about the benefits of migration during the EU referendum – have retreated into support for immigration controls. This kind of triangulation and retreat – the opposite of the insurgent leftwing populism that Labour needs to win elections – is the hallmark of Labour’s establishment politics. Those who want to stand and fight on the issue should be concerned that, for now, only Diane Abbott has come out fighting for continued free movement.

At the moment, Labour is chasing the narrative on immigration – and that has to stop. The process that is shifting the debate on migration is Brexit, the British franchise of a global nationalist resurgence that is sweeping the far right to power across the western world. Attempt to negotiate a compromise on migration in the face of that wave, or try to claim it as an “opportunity”, and there is simply no limit to how far Labour will be pushed. What is needed is an ideological counter-attack, which tells a different story about why living standards have deteriorated and offers real solutions.

The reason why wages have stagnated and in recent decades is not immigration. Among the very few studies which find that migration has caused a fall in wages, most conclude that the fall is marginal. The Bank of England’s study, cited by Boris Johnson in the heat of the EU referendum campaign, put the average figure at 0.3 per cent for every ten percentage point rise in migrants in a given sector of work. That rises to 1.8 per cent in some areas.

Median earnings fell by 10.4 per cent between 2007 and 2015, and by 2021 are forecast to be lower in real terms than they were in 2008. For many communities, that fall in wages comes on top of the destruction of industry; the defeat of the trade union movement; the fire sale of Britain’s social housing stock; and years of gruelling Tory austerity. Nuttall’s Ukip will argue that economic and social insecurity are the result of uncontrolled immigration. To give an inch to that claim is to abandon reality.

Labour cannot win against Ukip by playing around with new and innovative border controls – it has to put forward a vision for a radically different kind of society. Under Jeremy Corbyn, Labour is closer than it ever has been to the kind of radical social and economic platform that it will need to regain power - £500bn of investment, building a million new homes a year, raising minimum wage and reinstating proper collective bargaining and trade union rights. What it needs now is clarity – a message about who to blame and what to do, which can cut through the dust kicked up by the Brexit vote.