Balls sharpens his axe: where Labour would cut in 2015

Free schools, Police and Crime Commissioners, Titan prisons and army admirals are targeted for cuts.

There were two main aims of Ed Balls's speech on the economy today. The first was to reassure voters that while continuing to support stimulus now, Labour would pursue fiscal responsibility in office. While refusing to play George Osborne's game by saying whether he would stick to the coalition's 2015-16 spending plans ("when we do not know the economic circumstances two months ahead, let alone two years"), he emphasised that, before the election, Labour would adopt its own fiscal rules to eliminate the current deficit and reduce the national debt as share of GDP. Balls also signalled that, with growth finally returning, he would soon abandon his expensive pledge to introduce a temporary VAT cut (which Ed Miliband had such trouble defending in his infamous World At One interview) in favour of long-term capital investment. He said: 

Today, with growth prospects still very uncertain and interest rates too low to be of use, a temporary VAT cut now is still the right prescription before extra capital spending can come on stream – although any immediate tax cut which helps middle and lower income families is better than nothing. 

But over the coming year if, as we all hope, some kind of recovery does take hold, then the balance of advantage will shift from temporary tax cuts to long-term capital investment.

The second aim was to begin the task of forcing the left to accept that not only will Labour be unable to reverse most of the cuts imposed by the coalition, it will have to make its own. As Balls pointedly noted, "The next Labour government will have to plan on the basis of falling departmental spending."

The announcement that Labour would remove the winter fuel allowance from the wealthiest 5 per cent of pensioners is pretty small beer. While Ed Miliband's abandonment of universalism is politically significant (it opens the door to further benefit cuts), the move will save just £100m a year (less than half a per cent of the £207bn welfare bill), meaning that it barely qualifies as a rounding error. But Balls went on to outline, in greater detail than before, other, larger cuts and efficiency savings that a Labour government would seek to make. Since the shadow chancellor wants to give himself maximum flexibility in 2015, they were proposed in the form of questions (as was the winter fuel allowance cut) but, for now, they are the best guide we have to where Balls's axe would fall. Here's my summary:

- Not opening new free schools in areas with excess places. Balls derided "vanity schools projects" and suggested that Labour would not open new free schools in areas with a surplus of secondary school places. ("With primary school places in short supply in many parts of the country, and parents struggling to get their children into a local school, can it really be a priority to open more free schools in 2015 and 2016 in areas with excess secondary school places?")

- Scrapping Police and Crime Commissioners. ("When we are losing thousands of police officers and police staff, how have we ended up spending more on police commissioners than the old police authorities, with more elections currently timetabled for 2016?")

- Cancelling the new 2,000-place "Titan" prison recently proposed by Chris Grayling. ("Has the Ministry of Justice properly made the case for a major new 'Titan' prison, at a time when the prison population is falling?")

- Abolishing High Speed Two Limited, the company developing the new rail network. Balls suggested that this role could be performed more effectively by Network Rail ("Should we be spending millions on a separate company to deliver High Speed 2 when we already have Network Rail, which after all is responsible for rail infrastructure?")

- Cutting the number of army officers and admirals. ("Do we need more admirals than ships and more officers in our forces than our international counterparts at a time when frontline armed forces are under pressure?")

- Merging the four separate government motorist agencies. ("Do we really need four separate government agencies delivering services to motorists?")

- Combining management functions. in government departments, agencies, fire services and police forces. ("Does it really make sense to have separate costly management and bureaucracy for so many separate government departments, agencies, fire services and police forces - the same number as when this Government came into office - all with separate leadership structures and separate specialist teams?")

- Requiring industries to contribute more to the cost of regulation. ("Should industries pay a greater share of the costs of their regulators?")

The aim of these cuts and savings will be to free up funds for Labour's priorities (which Balls promised a "relentless focus" on): employment, housing, childcare, the NHS and social care. Based on his speech today, it is likely that Labour will go into the election promising to spend more than Tories in areas such as infrastructure (borrowing to invest), while giving itself the political cover to do so by adopting new fiscal rules, independently monitored by the OBR, and promising to control welfare spending (Miliband will announce his support for a cap on structural benefits, such as housing benefit, in his speech on welfare on Thursday). The defining political question is whether this will be enough to reassure a sceptical electorate, less than a third of whom believe Labour can be trusted to manage the nation's public finances, that it wouldn't "crash the car" all over again.

Ed Balls emphasised that Labour would have to plan "on the basis of falling departmental spending". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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"We repealed, then forgot": the long shadow of Section 28 homophobia

Why are deeply conservative views about the "promotion" of homosexuality still being reiterated to Scottish school pupils? 

Grim stories of LGBTI children being bullied in school are all too common. But one which emerged over the weekend garnered particular attention - because of the echoes of the infamous Section 28, nearly two decades after it was scrapped.

A 16-year-old pupil of a West Lothian school, who does not wish to be named, told Pink News that staff asked him to remove his small rainbow pride badge because, though they had "no problem" with his sexuality, it was not appropriate to "promote it" in school. It's a blast from the past - the rules against "promoting" homosexuality were repealed in 2000 in Scotland, but the long legacy of Section 28 seems hard to shake off. 

The local authority responsible said in a statement that non-school related badges are not permitted on uniforms, and says it is "committed to equal rights for LGBT people". 

The small badge depicted a rainbow-striped heart, which the pupil said he had brought back from the Edinburgh Pride march the previous weekend. He reportedly "no longer feels comfortable going to school", and said homophobia from staff members felt "much more scar[y] than when I encountered the same from other pupils". 

At a time when four Scottish party leaders are gay, and the new Westminster parliament included a record number of LGBTQ MPs, the political world is making progress in promoting equality. But education, it seems, has not kept up. According to research from LGBT rights campaigners Stonewall, 40 per cent of LGBT pupils across the UK reported being taught nothing about LGBT issues at school. Among trans students, 44 per cent said school staff didn’t know what "trans" even means.

The need for teacher training and curriculum reform is at the top of campaigners' agendas. "We're disappointed but not surprised by this example," says Jordan Daly, the co-founder of Time for Inclusive Education [TIE]. His grassroots campaign focuses on making politicians and wider society aware of the reality LGBTI school students in Scotland face. "We're in schools on a monthly basis, so we know this is by no means an isolated incident." 

Studies have repeatedly shown a startling level of self-harm and mental illness reported by LGBTI school students. Trans students are particularly at risk. In 2015, Daly and colleagues began a tour of schools. Shocking stories included one in which a teacher singled out a trans pupils for ridicule in front of the class. More commonly, though, staff told them the same story: we just don't know what we're allowed to say about gay relationships. 

This is the point, according to Daly - retraining, or rather the lack of it. For some of those teachers trained during the 1980s and 1990s, when Section 28 prevented local authorities from "promoting homosexuality", confusion still reigns about what they can and cannot teach - or even mention in front of their pupils. 

The infamous clause was specific in its homophobia: the "acceptability of homosexuality as a pretended family relationship" could not be mentioned in schools. But it's been 17 years since the clause was repealed in Scotland - indeed, it was one of the very first acts of the new Scottish Parliament (the rest of the UK followed suit three years later). Why are we still hearing this archaic language? 

"We repealed, we clapped and cheered, and then we just forgot," Daly says. After the bitter campaign in Scotland, in which an alliance of churches led by millionaire businessman Brian Souter poured money into "Keeping the Clause", the government was pleased with its victory, which seemed to establish Holyrood as a progressive political space early on in the life of the parliament. But without updating the curriculum or retraining teaching staff, Daly argues, it left a "massive vacuum" of uncertainty. 

The Stonewall research suggests a similar confusion is likely across the UK. Daly doesn't believe the situation in Scotland is notably worse than in England, and disputes the oft-cited allegation that the issue is somehow worse in Scotland's denominational schools. Homophobia may be "wrapped up in the language of religious belief" in certain schools, he says, but it's "just as much of a problem elsewhere. The TIE campaign doesn't have different strategies for different schools." 

After initial disappointments - their thousands-strong petition to change the curriculum was thrown out by parliament in 2016 - the campaign has won the support of leaders such as Nicola Sturgeon and Kezia Dugdale, and recently, the backing of a majority of MSPs. The Scottish government has set up a working group, and promised a national strategy. 

But for Daly, who himself struggled at a young age with his sexuality and society's failure to accept it, the matter remains an urgent one.  At just 21, he can reel off countless painful stories of young LGBTI students - some of which end in tragedy. One of the saddest elements of the story from St Kentigern's is that the pupil claimed his school was the safest place he had to express his identity, because he was not out at home. Perhaps for a gay pupil in ten years time, that will be a guarantee. 

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