Exclusive: Blair warns Miliband: offer answers, not outrage

The former prime minister says Labour must be more than "fellow travellers in sympathy" and warns it not to "tack left on tax and spending".

In his statement on Margaret Thatcher's death earlier this week, Ed Miliband pointedly noted that "she moved the centre ground". The Labour leader is aiming to achieve a similar feat. Indeed, he belives the centre has already moved to the left since the financial crisis, creating the space for a more unambiguously social democratic approach. It is a notion that Tony Blair fundamentally rejects. In his most significant intervention in domestic politics since leaving office, the former prime minister writes in the centenary edition of the New Statesman: "The paradox of the financial crisis is that, despite being widely held to have been caused by under-regulated markets, it has not brought a decisive shift to the left. But what might happen is that the left believes such a shift has occurred and behaves accordingly." 

Following last week's fractious debate on welfare, Blair says that Labour must be "the seekers after answers, not the repository for people's anger". He writes: "In the first case, we have to be dispassionate even when the issues arouse great passion. In the second case, we are simple fellow-travellers in sympathy; we are not leaders. And in these times, above all people want leadership".

Rather than retreating to its ideological "comfort zone", Blair argues that Labour must remain on "a centre ground that is ultimately both more satisfying and more productive for party and country". In a signal of his disapproval at some of Miliband's recent pronouncements, he writes that Labour must not "tack right on immigration and Europe, and tack left on tax and spending". Miliband has argued that the last Labour government was wrong not to impose transitional controls on migration from eastern Europe and has called for the introduction of a "mansion tax" on properties worth more than £2m. 

Blair writes: "The ease with which it [Labour] can settle back into its old territory of defending the status quo, allying itself, even anchoring itself, to the interests that will passionately and often justly oppose what the government is doing, is so apparently rewarding, that the exercise of political will lies not in going there, but in resisting the temptation to go there." 

Unlike some associated with New Labour, Blair argues that the party has been right to reject Conservative claims that it "created" the crisis by overspending. He points out that the current structural deficit was under 1 per cent of GDP in 2007-08 and that that public debt was significantly below 1997 levels at the time of the crash. "Over the whole 13 years, the debt-to-GDP ratio was better than the Conservative record from 1979-97." But he warns that now the crash has occurred "no one can get permission to govern unless they deal with its reality". 

Blair goes on to pose seven questions that he says are examples of those Labour must answer if it is to address the need for "fundamental reform of the post-war state". In a sign of how he would have approached last week's debate on welfare differently, he says that the party should look at the "right balance between universal and means-tested help for pensioners" and ask what is "driving the rise in housing benefit spending". He adds: "If it is the absence of housing, how do we build more?" Blair also urges the party to explore how it can focus on "the really hard core of socially excluded families, separating them from those who are just temporarily down on their luck". In 2011, the coalition launched a scheme led by Louise Casey, the former head of Blair's Respect Task Force, aimed at helping England's "120,000 most troubled families". 

On public services, Blair says that Labour should ask how it can take "the health and education reforms of the last Labour government to a new level, given the huge improvement in results they brought". Blair has recently praised Michael Gove's free schools as "a great idea" and has accused the teaching unions of obstructing "necessary educational change". In addition, he calls for Labour to explore how "developments around DNA" can help reduce crime and how technology can "cut costs and drive change in our education, health, crime and immigration systems". 

Hinting at his frustration at the party's perceived lack of policy development, Blair writes: "There is no need to provide every bit of detail. People don't expect it. But they want to know where we're coming from because that is a clue as to where we would go, if elected." The danger for Labour, he adds, is of "tactical victories that lead to strategic defeats".

Miliband, who has consistently spoken of the need to move on from New Labour, is likely to be unfazed by Blair's intervention but the former Prime Minister's words will reinforce the concern among some in the party that Labour risks being defined as a party of opposition, rather than  a government-in-waiting, as it continues its crusade against austerity.

Tony Blair argues in the New Statesman that the financial crisis "has not brought a decisive shift to the left". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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There's nothing Luddite about banning zero-hours contracts

The TUC general secretary responds to the Taylor Review. 

Unions have been criticised over the past week for our lukewarm response to the Taylor Review. According to the report’s author we were wrong to expect “quick fixes”, when “gradual change” is the order of the day. “Why aren’t you celebrating the new ‘flexibility’ the gig economy has unleashed?” others have complained.

Our response to these arguments is clear. Unions are not Luddites, and we recognise that the world of work is changing. But to understand these changes, we need to recognise that we’ve seen shifts in the balance of power in the workplace that go well beyond the replacement of a paper schedule with an app.

Years of attacks on trade unions have reduced workers’ bargaining power. This is key to understanding today’s world of work. Economic theory says that the near full employment rates should enable workers to ask for higher pay – but we’re still in the middle of the longest pay squeeze for 150 years.

And while fears of mass unemployment didn’t materialise after the economic crisis, we saw working people increasingly forced to accept jobs with less security, be it zero-hours contracts, agency work, or low-paid self-employment.

The key test for us is not whether new laws respond to new technology. It’s whether they harness it to make the world of work better, and give working people the confidence they need to negotiate better rights.

Don’t get me wrong. Matthew Taylor’s review is not without merit. We support his call for the abolishment of the Swedish Derogation – a loophole that has allowed employers to get away with paying agency workers less, even when they are doing the same job as their permanent colleagues.

Guaranteeing all workers the right to sick pay would make a real difference, as would asking employers to pay a higher rate for non-contracted hours. Payment for when shifts are cancelled at the last minute, as is now increasingly the case in the United States, was a key ask in our submission to the review.

But where the report falls short is not taking power seriously. 

The proposed new "dependent contractor status" carries real risks of downgrading people’s ability to receive a fair day’s pay for a fair day’s work. Here new technology isn’t creating new risks – it’s exacerbating old ones that we have fought to eradicate.

It’s no surprise that we are nervous about the return of "piece rates" or payment for tasks completed, rather than hours worked. Our experience of these has been in sectors like contract cleaning and hotels, where they’re used to set unreasonable targets, and drive down pay. Forgive us for being sceptical about Uber’s record of following the letter of the law.

Taylor’s proposals on zero-hours contracts also miss the point. Those on zero hours contracts – working in low paid sectors like hospitality, caring, and retail - are dependent on their boss for the hours they need to pay their bills. A "right to request" guaranteed hours from an exploitative boss is no right at all for many workers. Those in insecure jobs are in constant fear of having their hours cut if they speak up at work. Will the "right to request" really change this?

Tilting the balance of power back towards workers is what the trade union movement exists for. But it’s also vital to delivering the better productivity and growth Britain so sorely needs.

There is plenty of evidence from across the UK and the wider world that workplaces with good terms and conditions, pay and worker voice are more productive. That’s why the OECD (hardly a left-wing mouth piece) has called for a new debate about how collective bargaining can deliver more equality, more inclusion and better jobs all round.

We know as a union movement that we have to up our game. And part of that thinking must include how trade unions can take advantage of new technologies to organise workers.

We are ready for this challenge. Our role isn’t to stop changes in technology. It’s to make sure technology is used to make working people’s lives better, and to make sure any gains are fairly shared.

Frances O'Grady is the General Secretary of the TUC.