The Lib Dems are still not addressing their race problem

The only one of the main parties with no black and minority ethnic MPs needs to promote radical solutions to racial inequality if it is to win credibility on this issue.

Liberal Democrats are feeling pleased with themselves over the equal marriage vote with hearty congratulations lavished on the former equalities minister, Lynne Featherstone, for driving this forward. And there's no denying that the Lib Dems deserve their share of the credit. Yet progress on other strands of equality, in particular race equality, is going into reverse. 

It's bad enough having an all-white party in the Commons but just as shamefully, the Lib Dems have never had much to say on race. In 2010, their manifesto contained just one idea of note, name-blind job applications. Yet two-and-a-half-years on, this policy hasn't even been rolled out to all Whitehall departments yet, never mind the rest of Britain.
 
Last year, the Conservatives commissioned Lord Ashcroft to study the attitudes of Black, Asian and minority ethnic (BAME) communities towards the Tories and the results were dire for the party. But buried in his report was even more devastating news for the Lib Dems. BAME Lib Dem support was in single figures - just nine per cent of Asians and a paltry six per cent of Afro-Caribbeans. And that was after Cleggmania. With the Lib Dems having done so little to appeal to BAME communities since taking power, one can only assume future surveys will need a microscope to detect traces of support.
 
How different things were when Nick Clegg was the fresh-faced and newly-elected party leader. Then he promised the Lib Dems would challenge Labour in its inner city heartlands. Sadly this was another broken promise. The party entered government without a clue of how to tackle endemic race inequality in Britain. And after two-and-a-half-years of drift, many BAME activists in the party are now at their wits' end.
 
On the 20th anniversary of the death of Stephen Lawrence,  the promise of change symbolised by the Macpherson report couldn't be further from coalition's agenda, despite the mounting evidence that Britain is becoming more racially divided. 
 
Disproportionate BAME unemployment has shot up in this recession, not least because cuts to public services have hit black and Asian workers hardest, impacting on families who were first encouraged to fill those public sector jobs when they migrated to Britain in the 1960s and 70s. Meanwhile, youth unemployment in London is running at 56 per cent, a similar level to Greece, and much of that is concentrated among black young jobseekers.
 
Section 60 stop and searches, under which police can stop people without reasonable suspicion, is targeted at black youth and was a source of discontent that contributed to the 2011 London riots. Last year, the equalities watchdog, the Equality and Human Rights Commission (EHRC), found that black youth were 28 times more likely to be stopped and searched under Section 60, effectively making it the new "Sus" law.
 
In every area of public life – from education, to health, to criminal justice - there are big issues of racial inequality that demand serious policy answers. Yet despite the Lib Dems wearing equality on their sleeves, the party has singularly lacked ideas for tackling these issues. Instead, they have brought into a Conservative integration agenda which argues that if only ethnic minorities could speak better English, integrate a bit more and shop the extremists then everything would be okay. Yet lack of English has always been an over-hyped myth of the right, minorities are generally more integrated than 'indigenous' communities, and the vast majority of Muslims deplore extremism as much as anyone else. On the real issue of racism, the Lib Dems have been eerily silent with the exception of Clegg's speech on the anniversary of the Scarman report into the Brixton riots of 1981.
 
Worse still, Lib Dem ministers have been colluding with their Tory colleagues to dismantle much of the equality infrastructure of the state. Having slashed the EHRC's budget by two-thirds, removed its race commissioners and axed the watchdog's powers to investigate authorities suspected of discrimination, the coalition is now ramping up its equalities vandalism to a new level.
 
David Cameron has already announced that equality impact assessments (EIAs) are to be abolished. EIAs are a requirement on public servants to consider equality when designing new policies. They need to be strengthened to stop council officers and Whitehall mandarins going through the motions, not scrapped. But the government intends to bin them altogether, in the apparent belief that if we ignore equality it will magically happen anyway - we just won't know about it because we aren't monitoring it.
 
On top of this, Vince Cable's Enterprise and Regulatory Bill proposes to repeal the "positive duty" on the EHRC to work towards eliminating discrimination, something that was enshrined in the 2010 Equality Act. At the same time, ministers have convened a Tory-dominated taskforce to review the "general duty" on all 40,000 public authorities to promote good race relations.
 
This rolling back of Labour's equalities laws, many of which date back to the race relations acts of 1976 and 2000, and the decimation of the watchdog charged with upholding the legislation, adds up to a disturbing picture of the government's attitude towards race.
 
The two coalition partners both share responsibility for this. Meanwhile, time is running out to implement policies that will make a positive difference to BAME communities before the 2015 general election.
Interestingly, the Conservatives have been changing tact lately. Cameron has signalled he wants more BAME MPs to add to the nine elected in 2010 and has ordered party vice-chair Alok Sharma and other ministers to come up with policies that will appeal to black and Asian communities. Tory cabinet members recently had a special briefing on the need to win over BAME voters in key marginals and nullify the negative legacy of Enoch Powell.
 
The Lib Dems, meanwhile, are still sleepwalking to disaster as far as BAME support is concerned. We're still waiting for a report on access to bank loans for BAME businesses – a relatively minor issue - that was commissioned by Clegg in 2011. An internal taskforce looking at the issue of education and employment, which I am part of, produced a 20,000 word report after a year of taking evidence only to learn that apparatchiks had expunged it from the party's spring conference agenda.
 
And now I learn that the party's manifesto working group has rejected the party's foremost expert on race equality, Baroness Meral Hussein-Ece, in favour of someone who has little knowledge of the issues and has spent much of her life opposing positive action.
 
On race equality, it is make-or-break time for the Lib Dems. That is why the Ethnic Minority Liberal Democrat group has joined forces with the Social Liberal Forum to hold a conference next Saturday to debate these issues.
 
As a party with a proud history of social radicalism it is time to promote radical solutions to address persistent race inequality in society. Unless we get into gear in the next few months, it may take a whole generation before the party gains credibility within BAME communities and attracts the brightest and best talent to stand for parliament.
 
Lester Holloway is a Liberal Democrat councillor in Sutton and an executive member of the Ethnic Minority Liberal Democrats. He tweets @brolezholloway
Nick Clegg with other senior Liberal Democrats at the party's autumn conference in Brighton last year. Photograph: Getty Images.

Lester Holloway is a Liberal Democrat councillor in Sutton and an executive member of the Ethnic Minority Liberal Democrats. He tweets @brolezholloway

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR