Ed Miliband's speech on the economy: five key points

The Labour leader adapts Obama's "growing from the middle out" and calls for a "recovery made by the many, not just a few".

Ed Miliband will head to Bedford today to deliver the major speech on the economy that I first reported on The Staggers earlier this week, followed by a joint Q&A with Ed Balls at a training centre. 

It's unclear whether the speech will contain any new tax or spending commitments (although Jon Cruddas promised Newsnight last night that it would feature "a major, substantive piece of economic policy"), it will, according to pre-released extracts from Labour, offer "a choice between two different visions of our economy". 

"The Conservative vision of a race to the bottom in wages and skills, rewarding those at the very top but leaving everyone else squeezed as never before. Or the One Nation Labour vision." In an interview in today's Guardian, Miliband elaborates on this theme.

So, ahead of the speech at 10:45, here are five of the key points from the pre-released extracts and the interview. 

1. You've never had it so bad

Miliband's decision to make the speech in Bedford is an allusion to Harold Macmillan's famous 1957 address in the same town in which the Conservative prime minister declared: "you've never had it so good". 

Today, the Labour leader will say, millions across Britain fear "they will never have it so good again". 

Small businesses are working harder than ever before. People are working harder than ever before. But for far too many, wages are falling and prices are rising.

"Far from feeling they have never had it so good, millions across Britain today fear 'they will never have it so good again'. The question that people ask me the most is 'how do we turn this round?'"

It this bleak outlook - the Resolution Foundation reported yesterday that living standards will not return to pre-recession levels until at least 2023 - that will shape Miliband's policy priorities. 

2. Policy without a price tag

With less money around to spend and Labour wisely holding back its tax and spending commitments until the state of the public finances is clear, Miliband will outline alternative means of building a fairer economy and society. Returning to the territory of "predistribution" (although probably without using that word), he will say that a Labour government would take action to:

- "break the stranglehold of the big six energy suppliers

- stop the train company price rip-offs on the most popular routes

- introduce new rules to stop unfair bank charges

- cap interest on payday loans."

3. Miliband channels Obama: "growing from the middle out"

At yesterday's PMQs, Miliband channelled Ronald Reagan, asking David Cameron his own version of the US President's famous question to Jimmy Carter in the 1980 presidential debate: "Are you better off now than you were four years ago?" 

"At the end of the parliament, will living standards be higher or lower than they were at the beginning?", Miliband asked the PM.

In his Guardian interview, Miliband borrows from another US President, Barack Obama, and offers his account of what Obama calls "growing the economy from the middle out". He says: 

"We need a recovery made by the many, not just a few at the top. A recovery made by building, not squeezing, the middle. The government's economic strategy consists of squeezing the middle further, a race to the bottom and trickle down from the top."

Miliband notes that past recoveries have been driven by the middle class. 

"Henry Ford used to say: 'I have to pay my workers enough so they can buy the cars they are producing.' There was a British equivalent in relation to Macmillan: the houses were built, but people had the wages to buy or rent the houses."

4. Mansion tax: we're looking into it

Asked by the Guardian whether he will adopt a version of Vince Cable's "mansion tax", Miliband replies: "We have said we will look at the idea of mansion tax. Ed Balls was right to say that and we have said we would work with the government to make it happen."

The confirmation that Labour is exploring a mansion tax as part of its policy review is encouraging. Here at the NSwe've long argued that the burden of taxation should be shifted from income towards wealth and assets (see NS editor Jason Cowley's 2010 cover story on the subject). Wealth taxes are harder to avoid than those on income (even the most determined tax avoider cannot move his or her mansion to Geneva), are progressive (wealth is even more unequally distributed than income), and benefit the economy by shifting investment away from unproductive assets and towards wealth-creating industries. For the psephologically minded, it's also worth noting that they're popular. A Sunday Times/YouGov poll found that 63 per cent of the public (including 56 per cent of Tories) support a mansion tax, with just 27 per cent opposed.

5. Cameron's "global race" is a "race to the bottom"

Ever since his address at last year's Conservative conference, no David Cameron speech or interview has been complete without a reference to "the global race" facing Britain. But Miliband will denounce the Prime Minister's vision as one defined by a "race to the bottom". 

"David Cameron talks about a global race. And it is essential that we can compete with China and India and others. But I have to tell you, Britain won't win a race to the bottom by competing in the world as a low skill, low wage economy.

"We were promised that we could have growth and a lower deficit. In fact, we've had almost no growth and the deficit is rising again. But David Cameron's failure is not simply a failure of economic management or judgement. It is a failure to understand how wealth is created and an economy succeeds.

"We cannot go on with an approach that simply promises more of the same: year after year of squeezed living standards for the majority of working people. Because it's wrong for them and because it's wrong for our economy."

Ed Miliband will call for "a recovery made by the many, not just a few" in his speech on the economy in Bedford. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Felipe Araujo
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Manchester's Muslim community under siege: "We are part of the fabric of this nation"

As the investigation into last week's bombing continues, familiar media narratives about Islam conflict with the city's support for its Muslim population.

“You guys only come when something like this happens,” said one of the worshippers at Manchester's Victoria Park Mosque, visibly annoyed at the unusual commotion. Four days after the attack that killed 22 people, this congregation, along with many others around the city, is under a microscope.

During Friday prayers, some of the world’s media came looking for answers. On the eve of Ramadan, the dark shadow of terrorism looms large over most mosques in Manchester and beyond.

“People who do this kind of thing are no Muslims,” one man tells me.

It’s a routine that has become all too familiar to mosque goers in the immediate aftermath of a major terror attack. In spite of reassurances from authorities and the government, Muslims in this city of 600,000 feel under siege. 

“The media likes to portray us as an add-on, an addition to society,” Imam Irfan Christi tells me. “I would like to remind people that in World War I and World War II Muslims fought for this nation. We are part of the fabric of this great nation that we are.”

On Wednesday, soon after it was revealed the perpetrator of last Monday’s attack, Salman Ramadan Abedi, worshipped at the Manchester Islamic Centre in the affluent area of Didsbury, the centre was under police guard, with very few people allowed in. Outside, with the media was impatiently waiting, a young man was giving interviews to whoever was interested.

“Tell me, what is the difference between a British plane dropping bombs on a school in Syria and a young man going into a concert and blowing himself up,” he asked rhetorically. “Do you support terrorists, then?” one female reporter retorted. 

When mosque officials finally came out, they read from a written statement. No questions were allowed. 

“Some media reports have reported that the bomber worked at the Manchester Islamic Centre. This is not true,” said the director of the centre’s trustees, Mohammad el-Khayat. “We express concern that a very small section of the media are manufacturing stories.”

Annoyed by the lack of information and under pressure from pushy editors, eager for a sexy headline, the desperation on the reporters’ faces was visible. They wanted something, from anyone, who had  even if a flimsy connection to the local Muslim community or the mosque. 

Two of them turned to me. With curly hair and black skin, in their heads I was the perfect fit for what a Muslim was supposed to look like.

"Excuse me, mate, are you from the mosque, can I ask you a couple of questions,” they asked. “What about?,” I said. "Well, you are a Muslim, right?" I laughed. The reporter walked away.

At the Victoria Park Mosque on Friday, Imam Christi dedicated a large portion of his sermon condemning last Monday’s tragedy. But he was also forced to once again defend his religion and its followers, saying Islam is about peace and that nowhere in the Koran it says Muslims should pursue jihad.

“The Koran has come to cure people. It has come to guide people. It has come to give harmony in society,” he said. “And yet that same Koran is being described as blood thirsty? Yet that same Koran is being abused to justify terror and violence. Who de we take our Islam from?”

In spite of opening its doors to the world’s media, mosques in Britain’s major cities know they can do very little to change a narrative they believe discriminates against Muslims. They seem to feel that the very presence of reporters in these places every time a terror attack happens reveals an agenda.

Despite this, on the streets of Manchester it has proved difficult to find anyone who had a bad thing to say about Islam and the city’s Muslim community. Messages of unity were visible all over town. One taxi driver, a white working-class British man, warned me to not believe anything I read in the media.

“Half of my friends are British Muslims,” he said even before asked. “ These people that say Islam is about terrorism have no idea what they are talking about.”

Felipe Araujo is a freelance journalist based in London. He writes about race, culture and sports. He covered the Rio Olympics and Paralympics on the ground for the New Statesman. He tweets @felipethejourno.

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