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

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump