What Jon Cruddas's speech told us about Labour's policy review

The head of Labour's policy review hints that a mass programme of housebuilding will be a priority for the party.

Jon Cruddas's speech to the Resolution Foundation last night on "earning and belonging" was, in common with all of his addresses, thoughtful, intellectually rich and imbued with a rare sense of history. But anyone hoping for specifics from the head of Labour's policy review would have left disappointed. Cruddas described the review as being in its "first phase" and promised that over the next 12 months major pieces of work would be completed on "childhood, the Condition of Britain [Cruddas will deliver an IPPR lecture on this subject next Thursday], a British Investment Bank, infrastructure and voctional education". After the 2013 conference, he added, the review would enter a "second phase" before the policies "distil into a manifesto and pledge cards" after the 2014 conference.

There were, however, several important hints of Labour's priorities. In one of the most memorable passages, Cruddas lamented that while the government spends £1.2bn on housebuilding, it spends twenty times that amount on "rental payments to landlords". Not only was this a good example of how Labour is seeking to reframe the debate around welfare policy (Cruddas referred to "rent payments", rather than housing benefit), it also suggested that one of the party's key pledges will be a mass programme of housebuilding. 

In another intriguing section of the speech, Cruddas spoke of how Labour was exploring new ways of holding "our public institutions" to account and generating "a sense of ownership and responsibility". He cited the BBC, the police, Parliament and the City of London. Tessa Jowell's recent piece for the Telegraph calling for the BBC to be turned into "the country’s biggest mutual, with 26.8 million licence-fee payers as its shareholders", is a good example of the form this could take in practice. 

The line that has attracted the most attention is Cruddas's warning that "simply opposing the cuts without an alternative is no good." (He added: "It fails to offer reasonable hope. The stakes are high because when hope is not reasonable despair becomes real.") 

On one level this is a statement of the obvious. But it also points to a significant divide in Labour between those who believe there is nothing wrong with the economy that a bit of Keynesian stimulus won't fix and those who believe that capitalism needs to be fundamentally remade (Raf has neatly characterised this as a battle between Brown Labour and Blue). Cruddas's words made it clear that he intends to position Labour on the latter half of this divide. 

Jon Cruddas, the MP for Dagenham and Rainham and the head of Labour's policy review. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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. 

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