Labour turns its guns on Osborne's infrastructure failures

New figures show that just seven of the 576 infrastructure projects planned by the coalition have been completed.

When Nick Clegg recently conceded that the coalition had cut infrastructure spending too fast after coming to power, he took care to assure us that all was now well. "I think we've all realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible," the Deputy PM said. 

While one welcomes the government's belated conversion to the merits of counter-cyclical spending (a rare concession to its Keynesian critics), the early results are not encouraging. Labour will use an opposition debate today to highlight new Treasury figures showing that just seven (1.2 per cent) of the 576 infrastructure projects planned by the coalition are "completed" or "operational" and that most of these are road schemes began under the last government. In addition, just 18.2 per cent of the projects are said to have "started" or to be "in construction" or "under construction".  

Clegg himself has previously expressed frustration over the timelag between projects being announced and completed. He remarked in a speech to the LSE in September 2011: "A key blockage is actually within government: Whitehall. Identifying projects and funnelling cash to them can take time – I understand that. These are big investments, and you have to get the detail right. But failure to deliver major infrastructure projects on time and on budget is a perennial problem in the UK."

The government's failure to improve its performance on this front is a matter of concern to the Lib Dems, with some blaming George Osborne's preference for Treasury "guarantees" over direct spending. In her column today, the Times's Rachel Sylvester reports that "Clegg and other senior Lib Dems are convinced that the Government needs to loosen the public purse strings and spend even more on infrastructure to stimulate the economy". 

After Clegg claimed that the coalition's capital spending cuts were "no more than what Alistair Darling spelt out anyway", Labour will also point to OBR figures (see below) showing that the government has spent £12.8bn less than Darling planned. 

Year

Public Sector Gross Investment - OBR forecast of Labour plans

Public Sector Gross Investment under the Conservative-led government

Difference

2010-11

£61.3bn

£58.1bn

£-3.2bn

2011-12

£50.7bn

£47.8bn

£-2.9bn

2012-13

£48.4bn

£41.7bn

£-6.7bn

The last time Rachel Reeves cited these figures, George Osborne accused her of "not being completely straight", a remark which earned him a rebuke from the Speaker. 

But even if one discounts the numbers for 2012-13 (which is still ongoing), the data shows that the coalition spent £6.1bn less in its first two years than Labour would have. Little wonder that the Lib Dems are urging Osborne to finally loosen the fiscal taps.

Shadow chancellor Ed Balls visits a social housing project with shadow chief secretary to the Treasury Rachel Reeves. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Metro mayors can help Labour return to government

Labour champions in the new city regions can help their party at the national level too.

2017 will mark the inaugural elections of directly-elected metro mayors across England. In all cases, these mayor and cabinet combined authorities are situated in Labour heartlands, and as such Labour should look confidently at winning the whole slate.

Beyond the good press winning again will generate, these offices provide an avenue for Labour to showcase good governance, and imperatively, provide vocal opposition to the constraints of local government by Tory cuts.

The introduction of the Mayor of London in 2000 has provided a blueprint for how the media can provide a platform for media-friendly leadership. It has also demonstrated the ease that the office allows for attribution of successes to that individual and party – or misappropriated in context of Boris Bikes and to a lesser extent the London Olympics.

While without the same extent of the powers of the sui generis mayor of the capital, the prospect of additional metro-mayors provide an opportunity for replicating these successes while providing experience for Labour big-hitters to develop themselves in government. This opportunity hasn’t gone unnoticed, and after Sadiq Khan’s victory in London has shown that the role can grow beyond the limitations – perceived or otherwise - of the Corbyn shadow cabinet while strengthening team Labour’s credibility by actually being in power.

Shadow Health Secretary and former leadership candidate Andy Burnham’s announcement last week for Greater Manchester was the first big hitter to make his intention known. The rising star of Luciana Berger, another member of Labour’s health team, is known to be considering a run in the Liverpool City Region. Could we also see them joined by the juggernaut of Liam Byrne in the West Midlands, or next-generation Catherine McKinnell in the North East?

If we can get a pantheon of champions elected across these city regions, to what extent can this have an influence on national elections? These new metro areas represent around 11.5 million people, rising to over 20 million if you include Sadiq’s Greater London. While no doubt that is an impressive audience that our Labour pantheon are able to demonstrate leadership to, there are limitations. 80 of the 94 existing Westminster seats who are covered under the jurisdiction of the new metro-mayors are already Labour seats. While imperative to solidify our current base for any potential further electoral decline, in order to maximise the impact that this team can have on Labour’s resurgence there needs to be visibility beyond residents.

The impact of business is one example where such influence can be extended. Andy Burnham for example has outlined his case to make Greater Manchester the creative capital of the UK. According to the ONS about 150,000 people commute into Greater Manchester, which is two constituency’s worth of people that can be directly influenced by the Mayor of Greater Manchester.

Despite these calculations and similar ones that can be made in other city-regions, the real opportunity with selecting the right Labour candidates is the media impact these champion mayors can make on the national debate. This projects the influence from the relatively-safe Labour regions across the country. This is particularly important to press the blame of any tightening of belts in local fiscal policy on the national Tory government’s cuts. We need individuals who have characteristics of cabinet-level experience, inspiring leadership, high profile campaigning experience and tough talking opposition credentials to support the national party leadership put the Tory’s on the narrative back foot.

That is not to say there are not fine local council leaders and technocrats who’s experience and governance experience at vital to Labour producing local successes. But the media don’t really care who number two is, and these individuals are best serving the national agenda for the party if they support A-listers who can shine a bright spotlight on our successes and Tory mismanagement.

If Jeremy Corbyn and the party are able to topple the Conservatives come next election, then all the better that we have a diverse team playing their part both on the front bench and in the pantheon of metro-mayors. If despite our best efforts Jeremy’s leadership falls short, then we will have experienced leaders in waiting who have been able to afford some distance from the front-bench, untainted and able to take the party’s plan B forward.