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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Google’s tax worries, Oxford’s race dilemma and the left-wing case for leaving Europe

The truth is that many black students looking at the white, middle-class Oxford would justifiably conclude that they don’t belong.

As a Gmail user and a Google searcher, am I morally compromised by using the services of a serial tax avoider? Surely not. Google gets roughly 95 per cent of its revenues from advertising and much of that from clicks on the ads that surround its offerings. I have long observed a rule never to click on any of these, even when they advertise something that I need urgently. Instead, I check the seller’s website address and type it directly into my browser.

Taking full advantage of its services without contributing to its profits strikes me as a very good way of damaging the company. More problematic are pharmaceutical companies such as AstraZeneca (zero UK corporation tax in 2014) and GlaxoSmithKline (UK corporation tax undisclosed but it has subsidiaries in tax havens), which makes many prescription drugs and consumer products such as toothpaste – I chew it to stop me smoking. To boycott all such companies, as well as those that underpay their workers or pollute the planet, one would need, more or less, to drop out from the modern world. Consumer boycotts, though they have a certain feel-good factor, aren’t a substitute for electing governments that will make a concerted effort to tax and regulate big corporations.

 

After EU

David Cameron is finding it hard to get changes to EU rules that he can credibly present as concessions. But the talks that would follow a vote for Brexit would be a hundred times more difficult. Ministers would need to negotiate access to the single market, renegotiate trade deals with 60 other countries and make a deal on the status of Britons living in the EU, as well as EU citizens living here. All this would create immense uncertainty for a fragile economy.

With a current-account trade deficit of 4 per cent, the dangers of a run on sterling would be considerable. (This apocalyptic scenario is not mine; I draw on the wisdom of the Financial Times economics editor, Chris Giles.) But here’s the question. If the UK got into the same pickle as Greece – and George Osborne had to do a Norman Lamont, popping out of No 11 periodically to announce interest-rate rises – Jeremy Corbyn would walk the 2020 election. Should we lefties therefore vote Out?

 

University blues

Hardly a Sunday now passes without David Cameron announcing an “initiative”, either on TV or in the newspapers. The latest concerns the under-representation of black Britons at top universities, notably Oxford, which accepted just 27 black students in 2014 out of an intake of more than 2,500. As usual, Cameron’s proposed “action” is risibly inadequate: a requirement that universities publish “transparent” data on admissions and acceptances, much of which is already available, and a call for schools to teach “character”, whatever that means.

The truth is that many black students looking at the white, middle-class Oxford – with its disproportionate numbers from a handful of fee-charging schools, such as Eton – would justifiably conclude that they don’t belong. Cameron rules out quotas as “politically correct, contrived and unfair”. But quotas in some form may be what is needed if young people from poor white, as well as black, homes are ever to feel that they would be more than interlopers.

In the meantime, Cameron could tell elite universities to stop setting ever-higher barriers to entry. As well as demanding two A*s and an A at A-level, Oxford and Cambridge are introducing tests for “thinking skills” and subject-specific “aptitude”. Whatever the developers of such tests claim, it is possible to coach students for them. State schools don’t have the resources to do so or even to research the complex requirements of the various colleges and subjects. Oxbridge admissions tutors must know this but evidently they don’t care.

 

A fine balance

The latest government figures show that, despite the former education secretary Michael Gove introducing £60 fines for parents who take their children on term-time breaks, the days lost to unsanctioned holidays are up by 50 per cent to three million in four years. This was a predictable result. Previously, the sense of an obligation to respect the law and set their children an example of doing so persuaded most parents to confine absences to school holidays. Now a modest price has been placed on term-time holidays. Parents do the sums and note that they save far more than £60 on cheaper flights and hotels.

A similar outcome emerged in Israel when daycare centres introduced fines for parents who arrived late. Previously, most preferred to avoid the embarrassment of apologising to a carer and explaining why they had been delayed. Once it became just a monetary transaction, many more happily arrived late and paid the price.

 

Minority report

Here in Loughton, Essex, where I live quietly and unfashionably, we are dancing in the streets. Well, not quite, but perhaps we ought to be. According to an analysis by the Policy Exchange think tank, Loughton is the third most integrated community in England and Wales, just behind Sutton Coldfield in the West Midlands and Amersham, Buckinghamshire, but above 157 others that have significant minorities. We are well ahead of fashionable London boroughs such as Islington and Hackney, where residents obviously keep Muslims and eastern Europeans out of their vibrant dinner parties, whereas we have bearded imams, African chiefs in traditional dress and Romanian gypsies dropping in for tea all the time.

Again, not quite. I’m not sure that I have met that many non-indigenous folk around here, or even seen any, except in the local newsagents. Still, I am grateful to Policy Exchange for brushing up Loughton’s public image, which was in need of a facelift after the BNP won four seats on the council a few years ago and a TOWIE actor opened a shop on the high street.

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 05 February 2015 issue of the New Statesman, Putin's war