Labour councils are the light at the end of this long, dark economic tunnel

The party's councils are filling the vacuum left by government inaction.

Councils up and down the land are facing their greatest financial crisis for generations. The coalition cuts are brutal and local communities and services are suffering enormously as a consequence. The poorest areas are being hit the hardest and the most vulnerable are suffering the most - such is Tory-led Britain.

As in any storm, councils can stay still and be swept away or get stuck in and survive. Those who innovate will go from strength to strength, while those who counsel despair will sink into a slough of despondency and take their communities with them.

And Labour councils are finding new ways to express and act on their values: fairness, mutual support and social justice.  A new report – One Nation Localism – shows exactly how. Innovating and taking action where they can, they are helping people in real ways despite these tough times. In a sense, this provides hope that an Ed Miliband-led "one nation" government will be able to pursue social justice even though the economic and fiscal climate left behind by a failed Tory and Liberal Democrat administration will be ferocious. It also shows that social justice relies on local innovation and action.

Local government funding is already being cut by a third and austerity is set to continue until at least 2018. In the pervading doom and gloom, it feels hard to be optimistic – where will the good news come from? And how can Labour present an alternative approach that shows you can deliver on your values even when money is tight?
  
There is no greater challenge than creating jobs and opportunity, as government inaction leaves an enormous vacuum – which Labour councils are filling. Just take Newham council’s new workplace scheme which has helped 5,000 people into work last year- many of them long-term unemployed. After the government disbanded Labour’s Future Jobs Fund, Nottingham council established their own to support young people in the city into employment. In areas as far and wide as Knowsley, Darlington and Plymouth the councils are working with local businesses to create apprenticeships and work opportunities to match out-of-work residents to.
 
The housing crisis continues but Labour councils are doing all they can to alleviate it in the short term and overcome it in the long term. Islington and Manchester are pioneering new models of investment in conjunction with council pension funds, to boost the supply of new affordable homes. Many more people are being forced to rent given the affordable homes crisis – and councils like Blackpool, Oxford and Newham are developing approaches to licensing to tackle rogue landlords and increase quality.
 
The need to overcome inequality and tackle poverty is of course at the heart of Labour councils,who see this as their core purpose. Up and down the country, in Liverpool, Newcastle, Blackpool, Sheffield , Leicester and Islington, Labour councils have set up Fairness Commissions to identify the challenges in their area and provide a framework to guide their decisions so they maximise their impact on narrowing inequality gaps. In Islington, for example, this has led to the council becoming a living wage employer and reducing its internal pay differential. In Liverpool a new approach to procurement looks to employ firms which can demonstrate clear benefits to local jobs and skills.

Twenty one Labour-led authorities have committed to a Co-operative Council approach, developing new ways of running public services to shift power and control out of town halls and into the hands of citizens. In Oldham, this means the council is finding new ways to work on the side of residents and seeking to remove barriers for them – whether by devolving significant power and funding to six districts within the borough with more direct community oversight or through a new Energy Co-operative that enables households to save up to £150 a year on their energy bills.
 
Taken separately, these initiatives show that given determination, councils can work to meet the needs of their residents against the odds – even though the overall national context still takes an enormous toll on people’s lives. Taken together, they chart a new agenda for Labour which recognises that even in a tight financial environment it is possible to take decisions in a fairer way. By adapting innovation to local circumstance, the one nation vision of a society bound together can be achieved without it becoming a ‘one size fits all’. In fact, is clear that greater social justice relies on different responses in different communities. Through localism, Labour’s values have become a practical reality.

One set of values, one nation, but many approaches – this is the mantra of a Labour localism. Hope is scarce resource in Tory-led Britain, but Labour in local government is digging its heals in to at least provide people with some hope despite the gloom. 

Cllr David Sparks is leader of the LGA Labour Group and leader of Dudley Metropolitan Borough Council.  One Nation Localism is available here

Cllr David Sparks is leader of the LGA Labour Group and leader of Dudley Metropolitan Borough Council

Getty
Show Hide image

The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496