Miliband calls it right: tax income less and wealth more

As the NS has long argued, Labour should fund tax cuts for low and middle earners by finding new ways of taxing static assets, such as mansions and land.

It was a good speech from Ed Miliband today. He’s clearly been reading the New Statesman, which endorsed his bid for the leadership in 2010, just one of the many things we’ve got right over recent years – such as our forecast long ago that premature fiscal consolidation would result in a double dip recession, predicting a hung parliament (when no one else did) and calling for UK withdrawal from Afghanistan and talks with Taliban (now a mainstream position).

We’ve consistently argued that Labour should seek to reduce the tax burden for low and middle income earners and, because capital is so mobile and the very rich are so adept at avoiding income tax, find new ways of taxing unearned income and static assets, such as mansions and land. This is not a left/right issue: Vince Cable, Martin Wolf, of the Financial Times, and Tim Montgomerie, of the excellent ConservativeHome website, are all in favour of the introduction of new wealth taxes.

The UK needs a more resilient tax base and Labour, if it is to have any chance of winning again, must abandon unreconstructed statism and its old, failed tax and transfer redistributive model (we consider National Insurance to be a form of income tax, and Gordon Brown certainly used it as such with his devious manoeuvres). That’s why we support greater emphasis on “predistribution” (awful word but good concept). 

In last week’s magazine we supported, as George says, the admirable Conservative MP for Harlow (my old home town in Essex) Robert Halfon’s call for the restoration of the 10p tax band for earnings between the personal allowance, which will rise to £9,440 in April, and £12,000, a measure worth £256 to basic-rate taxpayers. Now Ed Miliband is saying that Labour would reintroduce the 10p rate. That is smart politics, and just the kind of distinctive policy it will need as it seeks to remake itself as the party of social justice, entrepreneurial initiative and the competent state in the run-up to the 2015 election. Above all, Labour needs to show that it has learned the lessons of the Blair/Brown years, when asset bubbles were allowed to inflate dangerously, the party became carless and arrogant in power and far too nonchalant about rising inequality. Game on.   

The 12-bedroom mansion in Kensington Palace Gardens bought by steel magnate Lakshmi Mittal for $128.3m in 2004. Photograph: Getty Images.

Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.