Labour would reform the state, not just rebuild it

Tight budgets will demand imagination and innovation in the way public services are run.

Against a background of austerity and pessimism, it is Labour’s duty to set out a vision for Britain’s future which is both optimistic and hard headed. As Ed Miliband has said it is our One Nation mission is to tilt the balance from despair to hope.

Optimism is needed to counter the Tories’ divided, inward-looking version of Britain. But Labour must also be hard headed because the country will take time to change. Tight financial constraints will require tough choices. As some budgets are increased to reflect our priorities others will have to be scaled back. These “switch spends” will not be an option but a necessity.

The road will not be easy. One Nation Labour is a decade’s commitment to national renewal. It offers a new contract for Britain’s future, committing a Labour Government to support ambition, fairness and strong communities. We are under no illusion that to win two successive elections we will have to demonstrate our progressive passion can deliver real change for families in an era where there is less money around. 

In the aftermath of the global financial crisis, Ed Miliband has led the debate on the need for big changes to the economy. He and the shadow cabinet also know that One Nation Britain will require big changes to the state, which, by 2015, will have been battered by cuts and subjected to an ideological onslaught on its value and integrity. Our vision for a new state is not about simply repairing the damage, recreating the post war state or replicating the state we built between 1997 and 2010. It will reflect both financial limits and the challenges of a changing world. Labour knows both that an active, effective state is an essential force for good   but that it should never be suffocating, overcentralised, undermine autonomy or diminish the importance of non-state factors in building the good society. That is why we will reduce the role of the state where appropriate and strengthen it where necessary.

This article is primarily about the states place in our one nation story about national renewal, a new social contract, public service improvement and a new democratic engagement between Government and citizen. I recognise a major priority for the state is always to protect the security of its citizens. I have no doubt this will rightly be the focus of other peoples contributions to the debate about a new state.

A One Nation approach recognises that both unconstrained markets and an over-bureaucratic state can frustrate people, holding them back from the lives they want to lead. All MPs surgeries include often vulnerable individuals who receive poor treatment at the hands of one public institution or another. So tackling inequality is about improving life chances and living standards but also requires us also to ensure people irrespective of status are treated with respect in their interactions with the state.

Labour’s vision of a new state must signal our commitment to a new engagement between government and citizen. The story we tell about the One Nation Britain we want to nurture recognises both the virtues and the limits of the state. As Jon Cruddas has said, people’s lives are shaped by relationships with family, colleagues, friends and community networks focused around leisure pursuits, the voluntary sector, faith and community identity.

The NHS, schools, policing, council services will always be vital, but our quality of life is heavily dependent on these non-state relationships. So the state needs to achieve the right balance between supporting these positive relationships and networks without seeking to replace or undermine them. Cameron’s Big Society did not fail because the public didn’t want a greater voice in shaping their own neighbourhoods and services. It failed because of deep rooted cynicism about Tories who claimed to champion active communities while cutting the voluntary sector, failed to appreciate the enabling role the state can play and were enacting policies that corrode the foundations of strong communities.

By the end of our period in government, Labour’s failure to talk about family and community left the impression that we saw Britain’s future only through the prism of state and market. One Nation Labour believes our future success depends on our capacity to harness the best of an active state, aspirational individuals, strong families and community networks supported by a vibrant private sector. A healthy life usually achieves the right balance between independence and interdependence.

A new "Rights and Duties" social contract will define the relationship between state and citizen. Rules and expectations that are explicit about both government’s responsibilities and the duty of citizens to make a positive contribution related to their ability and means. What does that mean? A tough and fair welfare system with a greater correlation between what people contribute and what they should expect in return while recognising that vulnerable people must always be treated with dignity and compassion. This includes a compulsory jobs guarantee for the long term and young unemployed and a clear requirement to take work except in cases of sickness or serious disability; rewards and incentives for wealth creators who innovate and invest for the long term with a clear expectation that businesses will contribute their fair share in taxes and decent pay; a living wage that will reduce the numbers dependent on the state for their income; a cap on non-EU immigration with immigrants supported to integrate, including a requirement to learn English; neighbourhood policing with the powers to enforce a zero tolerance approach to anti-social behaviour. The vast majority of British people are fair-minded, tolerant and generous but they want to be sure their government  will be tough in ensuring that the system is fair and not abused by their fellow citizens.  

Labour will need to undo the damage this government is doing to public services but we will also set out our own radical programme for change. When we left office, NHS waiting times and crime were at record low levels. Schools were improving with disproportionate progress being made in deprived communities. This didn’t happen by chance but through a combination of investment and reform. Many of the reforms were necessary and effective but it is also important to acknowledge that some top-down targets led to unintended consequences and sapped the morale of staff, crowding out innovation and creativity.

One Nation public services means a commitment to minimising the post code lottery with core entitlements and standards. It means striving to bring up the levels of the worse to those of the best in every community. Service improvement is essential to meet public expectations, reduce inequality, enable us to do more with less and cope with the demographic challenge of an ageing society.

This should not be about perpetual organisational upheaval but improving the quality and efficiency of the frontline. National standards, expressed in terms of entitlements, would be coupled with support for local delivery and innovation, transparent measures of performance, tough new value-for-money duties and audits, more empowered and more accountable staff at all levels, and a relentless focus on world class leadership. The remuneration of public service managers and executives should be subject to much greater transparency and scrutiny. Public service changes should not be imposed top down but co-designed with staff and citizens.

New private sector provision would be supported where state provision has repeatedly failed or is unable to meet needs and where partnerships between public and private can improve outcomes. But this has to be within a framework of public accountability and high ethical standards. It is one tool in the locker, not the answer in all times and places.

In the NHS and education, the Tories have focused on giving power to the providers of services. One Nation Labour will give more influence and control to patients and parents. In my view choice is neither a panacea nor a realistic option in many circumstances. But it is crucial to give people a personalised - not a “conveyor belt” - service, with greater control for individuals and families over decisions about their lives together with a greater stake in collective community provision.

It was a Labour Government that promoted personal care budgets, neighbourhood based budgets and a membership model for NHS foundation trusts. An increasing number of Labour councils are introducing new cooperative models of public service organisation. We will continue to be the public service pioneers and innovators. Whitehall must be reformed to remove the policy and financial silos which lead to poor procurement and undermine integrated frontline service delivery and place-based budgeting. More power and resources should be devolved to local councils and city regions in return for greater voluntary sector, community and business participation.

If we are to make inroads with those families who continue to present the most challenges to their communities we must change an approach which involves numerous agencies that fail collectively to achieve any real change. Instead, each family  should have one named lead professional who has control of a pooled budget and an agreed contract focused on opportunities and responsibilities. This would be both more efficient and more likely to reduce social exclusion on a long term basis.

Within a framework of clear national standards, our approach to service delivery will be to redistribute power from Westminster and Whitehall to local statutory and voluntary organisation, communities and citizens. Our aim must be to ensure that the vast majority who rely on the state for education, health and social care have access to the same quality and also the same level of control   as those who can afford to buy the best private provision.

As the failure of the coalition’s economic policies has demonstrated there will be no prospect of a fairer, more united country without dynamic businesses generating jobs and growth. That is why Chuka Umunna is working with business to identify how the state can develop an active industrial strategy, supporting UK plc to compete in the global market. This is something we came late to in government. It should have been an integral part of our policy from the beginning. Government must play a leading role in supporting viable businesses of all sizes to start, grow and scale up by ensuring Britain has the infrastructure, skills and capacity to innovate. We should not apologise for providing targeted support to sectors which give UK plc competitive advantage – new manufacturing and the green economy, for example. Nor should we be timid about the radical changes in skillset and mindset which will be required to create a new entrepeneurial Whitehall with the capacity to drive an active industrial strategy in partnership with business.

Most of all, as Ed Miliband has said, the economic model which is predicated on wealth and opportunity trickling down from a few at the top has been discredited. An active industrial strategy must ensure the economy delivers for the working people who help to create the wealth. Britain’s recovery will be built by the many not by relying on a few at the top.

A new state must also adopt a radically different way of interacting with citizens. “Real Time Democracy” requires new kinds of engagement, accountability and participation. The same level of effort made by parties to connect with the electorate during election campaigns should be devoted to engaging with citizens by a government throughout its term in office. Labour wants to consider a number of new ways of making this happen, harnessing the power of social media. In opposition, Labour’s Peoples’ Policy Forum and Your Britain website have already gone a long way in opening up the party’s policymaking process. Some potential ideas for an incoming Labour Government could include: opening up decision-making in a way that does not simply share the outcome with the electorate but includes the range of options under consideration; senior officials being expected to create advisory boards of frontline experts, including service providers and users; fewer Whitehall “consultations” and more citizen juries; public services having a duty to publish accounts and create systems of external scrutiny. The new state must have the explicit goal of improving public confidence and trust in the political process.

If we are to build an ambitious, fair and proud Britain we must reject those who want to pose a bogus choice between big and small state. The Tories are hell bent on undermining public confidence in the capability of government. By the time we left office it sometimes appeared that we believed the state alone could resolve our economic and social challenges. The truth is that building One Nation in the context of a shrinking interdependent world and where we are truly all in it together will require the best of an active state, strong families, ambitious individuals, dynamic wealth creators, a vibrant civil society and empowered communities. It is getting the support and incentives right to give people a real stake in our national renewal which will determine our nation’s future destiny. That is how Labour will rebuild Britain.

Ivan Lewis is the MP for Bury South

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Westminster terror: Parliament hit by deadly attack

The Met Police is treating the events in Westminster as a "terrorist incident". 

A terrorist attack outside Parliament in Westminster has left four dead, plus the attacker, and injured at least 40 others. 

Police shot dead a man who attacked officers in front of the parliament building in London, after a grey 4x4 mowed down more than a dozen people on Westminster Bridge.

At least two people died on the bridge, and a number of others were seriously hurt, according to the BBC. The victims are understood to include a group of French teenagers. 

Journalists at the scene saw a police officer being stabbed outside Parliament, who was later confirmed to have died. His name was confirmed late on Wednesday night as Keith Palmer, 48.

The assailant was shot by other officers, and is also dead. The Met Police confirmed they are treating the events as a "terrorist incident". There was one assailant, whose identity is known to the police but has not yet been released. 

Theresa May gave a statement outside Number 10 after chairing a COBRA committee. "The terrorists chose to strike at the heart of our Capital City, where people of all nationalities, religions and cultures come together to celebrate the values of liberty, democracy and freedom of speech," she said.

London Mayor Sadiq Khan has tweeted his thanks for the "tremendous bravery" of the emergency services. 

Labour leader Jeremy Corbyn also released a short statement. He said: "Reports suggest the ongoing incident in Westminster this afternoon is extremely serious. Our thoughts are with the victims of this horrific attack, their families and friends. The police and security staff have taken swift action to ensure the safety of the public, MPs and staff, and we are grateful to them."

After the incident this afternoon, journalists shared footage of injured people in the street, and pictures of a car which crashed into the railings outside Big Ben. After the shots rang out, Parliament was placed under lockdown, with the main rooms including the Commons Chamber and the tearoom sealed off. The streets around Parliament were also cordoned off and Westminster Tube station was closed. 

Those caught up in the incident include visitors to Parliament, such as schoolchildren, who spent the afternoon trapped alongside politicians and political journalists. Hours after the incident, the security services began evacuating MPs and others trapped inside Parliament in small groups. 

The MP Richard Benyon tweeted: "We are locked in Chamber of House of Commons." Shadow education secretary Angela Rayner tweeted: "I'm inside Parliament and me and my staff are safe."

The MP Jo Stevens was one of the first to confirm reports that a police officer had been attacked. She tweeted: "We've just been told a police officer here has been stabbed & the assailant shot."

George Eaton, the New Statesman politics editor, was in the building. He has written about his experience here:

From the window of the parliamentary Press Gallery, I have just seen police shoot a man who charged at officers while carrying what appeared to be a knife. A large crowd was seen fleeing the man before he entered the parliamentary estate. After several officers evaded him he was swiftly shot by armed police. Ministers have been evacuated and journalists ordered to remain at their desks.   

According to The Telegraph, foreign minister Tobias Ellwood, a former soldier, tried to resucitate the police officer who later died. Meanwhile another MP, Mary Creagh, who was going into Westminster to vote, managed to persuade the Westminster tube staff to shut down the station and prevent tourists from wandering on to the scene of the attack. 

A helicopter, ambulances and paramedics soon crowded the scene. There were reports of many badly injured victims. However, one woman was pulled from the River Thames alive.

MPs trapped inside the building shared messages of sympathy for the victims on Westminster Bridge, and in defence of democracy. The Labour MP Jon Trickett has tweeted that "democracy will not be intimidated". MPs in the Chamber stood up to witness the removal of the mace, the symbol of Parliamentary democracy, which symbolises that Parliament is adjourned. 

Brendan Cox, the widower of the late, murdered MP Jo Cox, has tweeted: "Whoever has attacked our parliament for whatever motive will not succeed in dividing us. All of my thoughts with those injured."

Hillary Benn, the Labour MP, has released a video from inside Parliament conveying a message from MPs to the families of the victims.

Former Prime Minister David Cameron has also expressed his sympathy. 

While many MPs praised the security services, they also seemed stunned by the surreal scenes inside Parliament, where counter-terrorism police led evacuations. 

Those trapped inside Parliament included 40 children visiting on a school trip, and a group of boxers, according to the Press Association's Laura Harding. The teachers tried to distract the children by leading them in song and giving them lessons about Parliament. 

In Scotland, the debate over whether to have a second independence referendum initially continued, despite the news, amid bolstered security. After pressure from Labour leader Kezia Dugdale, the session was later suspended. First Minister Nicola Sturgeon tweeted that her "thoughts are with everyone in and around Westminster". The Welsh Assembly also suspended proceedings. 

A spokesman for New Scotland Yard, the police headquarters, said: "There is an ongoing investigation led by the counter-terrorism command and we would ask anybody who has images or film of the incident to pass it onto police. We know there are a number of casualties, including police officers, but at this stage we cannot confirm numbers or the nature of these injuries."

Three students from a high school from Concarneau, Britanny, were among the people hurt on the bridge, according to French local newspaper Le Telegramme (translated by my colleague Pauline). They were walking when the car hit them, and are understood to be in a critical condition. 

The French Prime Minister Bernard Cazeneuve has also tweeted his solidarity with the UK and the victims, saying: "Solidarity with our British friends, terribly hit, our full support to the French high schoolers who are hurt, to their families and schoolmates."

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.