The New Labour That Wasn’t: lessons for Miliband

If there is a lesson to be learned from the road not taken by New Labour, it is that economic reform and political reform are necessarily connected.

Labour currently faces a period of challenging redefinition. New Labour is emphatically over and done. But as New Labour recedes into the past, it is possible to speak of a road not taken – the ‘New Labour That Wasn’t? And what relevance does it have for Labour today?

The New Labour That Wasn’t found expression in a number of important works from the mid-1980s to the mid-1990s. Perhaps the key early contribution was David Marquand’s The Unprincipled Society, followed by Paul Hirst’s After Thatcher and Associative Democracy. Will Hutton’s The State We’re In (1995) arguably pulled the ideas together in the way that had the biggest impact. Another important feature of the context was the rise, from 1988, of Charter 88 as a pressure group and wider political movement arguing the case for comprehensive constitutional reform.

The New Labour That Wasn’t argued that the UK’s economic problems had deep institutional roots. In The State We’re In, Hutton argued that the UK’s competitiveness in manufacturing had been undermined historically by the short-termism of the City, making for an excessively high cost of capital and consequent underinvestment. German capitalism, he argued, offered an alternative model based on long-term, ‘patient’ industrial banking. It also illustrated the benefits of structures of governance of the firm that incorporate not only long-term investors but also labour as long-term partners – ‘stakeholders’ – in enterprise management.

For Paul Hirst, the UK’s economic revival depended on manufacturing renewal in particular. At its heart would be small and medium-sized firms adapted to the production of high-quality goods, targeted to the needs of varied customers, on the basis of highly and broadly skilled workforce. Institutionally, Hirst argued, this kind of production is supported by ‘corporatist’ arrangements that facilitate collaboration between labour and capital, as well as a strong regional dimension to economic growth strategy.

The second key plank of the New Labour That Wasn’t was the advocacy of a pluralist polity: Charter 88’s platform of devolution, a UK Bill of Rights for the UK, electoral and House of Lords reform and freedom of information. Pluralism here also entails an idea of cohesion and the common good. The individual citizen should be able to argue their case in dialogue with other citizens both in the workplace and in the wider public sphere.

The third key element of The New Labour That Wasn't lies in the claim that economic and political reform are necessarily connected. Power is shared across parties: industry and finance, labour and capital. But it is difficult to create the framework for this kind of pluralism to flourish when the state itself is so centralised and majoritarian.

Actual New Labour was partly inspired by this current of thought. But it was also defined, in some important ways, by a strong rejection of it. On the economy, New Labour briefly, and somewhat superficially, adopted the language of stakeholding. However, Hutton's relational idea of stakeholding gave way to a much more individualistic understanding of the term, a matter of individuals holding assets which increase their options in the marketplace. This reflected a key strategic decision on Labour's part to accept the existing financial system and (to a large extent) the rules of corporate governance.

While New Labour took a much weaker line on reforming the economy, on the side of political reform, New Labour of course adopted and delivered on a number of the pluralists' commitments. There were, however, also some major elements of the pluralists' agenda that Labour did not deliver on: while most hereditary peers were removed from the House of Lords, Labour did not go further in reform of the second chamber. The Jenkins Commission on the voting system reported in 1998 only to be politely but emphatically shelved. This was not accidental. Labour’s attitude to Charter 88 was marked at the outset by wariness and a degree of hostility. The pluralist republicans saw political process not simply as a means to an end but as valuable in itself. By contrast, New Labour adopted a decidedly more instrumentalist view, and took a significantly more managerialist approach.

This offers an interesting way of looking at the emerging perspective of ‘one nation’ Labour. On the one hand, there are some clear similarities between one nation Labour and the New Labour That Wasn’t. This is particularly true around the economy. First, there is the judgment that economic revival must involve industrial renewal. Second, there is an interest in exploring what lessons the German and Nordic economies might have for achieving industrial renewal. But the similarities are much less marked with the political pluralist dimension of the New Labour That Wasn’t. There are, however, important ways in which Labour’s politics could be usefully informed by this spirit. For example, if Labour is serious about radical economic change then it needs to consider how it can build an alliance of social and political forces to support it. Of course it will call on people to join and vote Labour. But it must recognise that many people whose support and energy it needs will belong to other parties or to none.

Positive economic change requires a broad movement and Labour cannot credibly claim simply to be this movement. Nor can it just demand that others follow. It must try to earn leadership through argument in open debate with others – including trade unions, religious groups, community organising initiatives and anti-cuts campaigners.It is encouraging to see that Labour is starting to grapple with the need for serious economic reform. But if there is a lesson to be learned from turning back to the insights of New Labour’s road not taken, it is in seeing that economic reform and political reform are closely intertwined.

This piece originally appeared in Fabian Review

Stuart White teaches political theory at the University of Oxford; Martin O'Neill teaches political theory at the University of York

Tony Blair talks with Ed Miliband during a Loyal Address service to mark the Queen's Diamond Jubilee at Westminster Hall. Photograph: Getty Images.

Stuart White teaches political theory at the University of Oxford; Martin O'Neill teaches political theory at the University of York

Photo: Getty
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The government needs more on airports than just Chris Grayling's hunch

This disastrous plan to expand Heathrow will fail, vows Tom Brake. 

I ought to stop being surprised by Theresa May’s decision making. After all, in her short time as Prime Minister she has made a series of terrible decisions. First, we had Chief Buffoon, Boris Johnson appointed as Foreign Secretary to represent the United Kingdom around the world. Then May, announced full steam ahead with the most extreme version of Brexit, causing mass economic uncertainty before we’ve even begun negotiations with the EU. And now we have the announcement that expansion of Heathrow Airport, in the form of a third runway, will go ahead: a colossally expensive, environmentally disastrous, and ill-advised decision.

In the House of Commons on Tuesday, I asked Transport Secretary Chris Grayling why the government is “disregarding widespread hostility and bulldozing through a third runway, which will inflict crippling noise, significant climate change effects, health-damaging air pollution and catastrophic congestion on a million Londoners.” His response was nothing more than “because we don’t believe it’s going to do those things.”

I find this astonishing. It appears that the government is proceeding with a multi-billion pound project with Grayling’s beliefs as evidence. Why does the government believe that a country of our size should focus on one major airport in an already overcrowded South East? Germany has multiple major airports, Spain three, the French, Italians, and Japanese have at least two. And I find it astonishing that the government is paying such little heed to our legal and moral environmental obligations.

One of my first acts as an MP nineteen years ago was to set out the Liberal Democrat opposition to the expansion of Heathrow or any airport in southeast England. The United Kingdom has a huge imbalance between the London and the South East, and the rest of the country. This imbalance is a serious issue which our government must get to work remedying. Unfortunately, the expansion of Heathrow does just the opposite - it further concentrates government spending and private investment on this overcrowded corner of the country.

Transport for London estimates that to make the necessary upgrades to transport links around Heathrow will be £10-£20 billion pounds. Heathrow airport is reportedly willing to pay only £1billion of those costs. Without upgrades to the Tube and rail links, the impact on London’s already clogged roads will be substantial. Any diversion of investment from improving TfL’s wider network to lines serving Heathrow would be catastrophic for the capital. And it will not be welcomed by Londoners who already face a daily ordeal of crowded tubes and traffic-delayed buses. In the unlikely event that the government agrees to fund this shortfall, this would be salt in the wound for the South-West, the North, and other parts of the country already deprived of funding for improved rail and road links.

Increased congestion in the capital will not only raise the collective blood pressure of Londoners, but will have severe detrimental effects on our already dire levels of air pollution. During each of the last ten years, air pollution levels have been breached at multiple sites around Heathrow. While a large proportion of this air pollution is caused by surface transport serving Heathrow, a third more planes arriving and departing adds yet more particulates to the air. Even without expansion, it is imperative that we work out how to clean this toxic air. Barrelling ahead without doing so is irresponsible, doing nothing but harm our planet and shorten the lives of those living in west London.

We need an innovative, forward-looking strategy. We need to make transferring to a train to Cardiff after a flight from Dubai as straightforward and simple as transferring to another flight is now. We need to invest in better rail links so travelling by train to the centre of Glasgow or Edinburgh is quicker than flying. Expanding Heathrow means missing our climate change targets is a certainty; it makes life a misery for those who live around the airport and it diverts precious Government spending from other more worthy projects.

The Prime Minister would be wise to heed her own advice to the 2008 government and “recognise widespread hostility to Heathrow expansion.” The decision to build a third runway at Heathrow is the wrong one and if she refuses to U-turn she will soon discover the true extent of the opposition to these plans.

Tom Brake is the Liberal Democrat MP for Carshalton & Wallington.