Lib Dem Minister: Ed Miliband’s “One Nation” Labour is a delusion

Perhaps the Labour leader’s brother could assist him in coming up with a more economically literate policy platform, says Lib Dem minister Jeremy Browne.

We've had “Old Labour”, “New Labour”; now it's “One Nation Labour”. Ed Miliband is staking a lot on this rebranding. It is not, he insists, just the appropriation of the most hackneyed old cliché in British politics, it defines his ambitions for office.

It is easy to criticise the emptiness and evasiveness. And the vagueness; the lack of meat on the bones. To be “One Nation Labour” is to defend child-benefit hand-outs for the wealthiest 15 per cent of the population, including asset millionaires like Ed Miliband, paid for from the taxes of much poorer people, on the unintelligible basis that the richest section of society constitutes "the squeezed middle". To be “One Nation Labour” is to believe that it is immoral to have a top rate of tax lower than 50 per cent, but not to have the moral fortitude to commit to reinstating this rate in office. To be “One Nation Labour” is to claim a preference for democracy over unaccountable entrenched privilege, only to connive and vote to scupper House of Lords reform.

But the deepest criticism of “One Nation Labour” is more profound than just dithering policy indecision and ducking difficult choices. The fundamental flaw with “One Nation Labour” is its crushing parochialism.

To believe in socialism in one country is fantasy. The big fact of life today is how many different nations are rising in global importance. The world has never been more inter-connected; more globalised. There is a revolution taking place, with the dramatic rise in Asian prosperity and political influence, that seems to have escaped the exponents of “One Nation Labour”.

That is surely because Ed Miliband is a highly conservative and nostalgic politician. He takes his slogan from a nineteenth century Conservative Prime Minister. He becomes most animated when idealising the shared hardship of ration-book era Britain. He reserves his greatest ideological admiration for a recently deceased historian who championed the virtues of the Soviet Union.

But Britain will not thrive in a bubble of isolation floating somewhere in the sepia-tinted past. To prosper now we have to be internationally interconnected and competitive.

So, for a start, “One Nation Labour” would have to set tax rates that were globally competitive. To do otherwise would be ruinously destructive of our tax-base and our ability to fund good public services. That is why this coalition government is cutting corporation tax in Britain to the lowest level in the G7 to attract new investment and jobs. And it is also why Ed Miliband needs to be aware that globalised businesses and entrepreneurs are unlikely to chose to pay avaricious rates of tax under “One Nation Labour”, to the detriment of our public finances.

“One Nation Labour” would need to understand that we live in a far more globalised employment market. That explains Polish plumbers and Indian call-centres. And this market is getting far much competitive. It is getting more highly skilled. That is why this coalition government is reforming education to raise standards. Britain has fallen down the league tables in childhood numeracy and literacy. We will not succeed as a “knowledge economy” if we have a less knowledgeable workforce than our competitors. “One Nation Labour”, if it remains in cahoots with militant teaching unions wanting to protect the past, will oversee a Britain that becomes less competitive and less attractive to inward investors. The children forging ahead in South Korea and Singapore will not make allowances for an inward-looking British education system that fails to equip our children for the modern world.

And “One Nation Labour” would be forced to understand that no country can live beyond its means and borrow money without reference to the outside world. What vanity to believe we can ignore pragmatic welfare reform and the financial implications of a rapidly aging population. The countries that spend money they cannot afford and shirk reform – Greece is a good example – certainly don't live in splendid “One Nation” isolation. Quite the opposite: they become wholly dependent on others, forfeit their self-government and self-respect, and the poorest and most vulnerable people end up suffering the greatest hardship.

When it comes down to it, “One Nation Labour” is a delusion. It sounds reassuring precisely because it is backward-looking, nostalgic and implies a comforting isolation from the rest of the world. It suggests that Britain can go it alone, without reference to others. And crucially, it implies that the hard choices facing other countries around the world need not apply to us. On our island we can spend money and dodge difficult decisions without consequences.

Where can Ed Miliband turn to try and devise instead a more plausible ideological platform? Maybe he should start close to home. David Miliband has a reputation for being personally aloof. It probably cost him the Labour leadership in 2010. But he could possibly help his brother now, if Ed Miliband wants to be helped.

After two-and-a-half years travelling the world as Foreign Secretary, and two-and-a-half more benefiting personally from his internationally marketable skills, David Miliband must at least understand the parochial limitations of “One Nation Labour”. Maybe he could assist his leader by encouraging Labour to have a more outward-looking, up-to-date, globally aware and economically literate vision than Ed Miliband, with “One Nation Labour”, has managed to come up with on his own.

Jeremy Browne is a Home Office Minister and the Liberal Democrat Member of Parliament for Taunton Deane.

 

Ed Miliband speaking at last year's Labour Party conference. Photograph: Getty Images
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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com