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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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.