The Tories are hurting, not helping the working class

Behind the government's rhetoric, things aren't getting better for working people. They’re getting much, much worse.

I normally enjoy a good Fraser Nelson column. But last Friday’s, which argued the Tories are the party for working people, was frankly delusional. I thought it was a spoof. Reading it, I wish Mr Nelson had been out on the doorstep with me and Labour’s Victora Groulef in Reading East on Thursday.

After an excellent afternoon knocking on doors, we came to the last house in the street and met a lady who summed up the Tories’ problem. She was a teaching assistant and her husband ran a small building firm. She had never voted Labour before, but now she was all ears. She was profoundly disillusioned with David Cameron. Her husband’s building business had taken a hammering and the banks were proving a nightmare. And she was tired of reading about government attacks on teaching assistants like her who she knows make a huge difference to her school’s ability to personalise education for youngsters and transform standards.

Our friend’s story captured the truth that the Tories are now profoundly hurting, not helping Britain’s working classes. It didn’t get a lot of comment, but last week we saw figures showing that in the first full year of this government, inequality has begun to spiral up – and this before the new bank bonus round Ed Miliband raised in the Commons, or this year’s huge cuts to tax credits, or this year’s whopping tax cut for Britain’s richest citizens. The reality is Britain’s aspirational classes have been left high and dry by the Tories. 

Let’s start with the engine room of aspirational Britain: our small business community. I’ve started a small business. I know what a roller coaster it is. And I know just how critical a friendly bank can be. Small business is the key to reducing unemployment. In fact, as Labour’s Toby Perkins recently pointed out, 90 per cent of people moving from unemployment into private sector employment do so with small businesses. But right now, the government’s comprehensive failure to tackle the bank lending crisis is suffocating enterprise. Business lending has fallen in every quarter of the last two years not least because our banking sector is so uncompetitive; 89 per cent of all our businesses are locked into the five big banks. That’s why Ed Miliband and Chuka Umunna launched the report of our small business taskforce with a commitment to introduce a new system of regional banks - banks that only lend to businesses within a defined community - to support small business, modelled on Germany’s successful Sparkassen.

Or let’s take education. Alan Milburn, the government’s social mobility tsar, last week published figures revealing the shockingly low levels of state school students admitted by Russell Group universities. The head of Ofsted, Sir Michael Wilshaw, has attacked the reality that "unseen" pupils from poor backgrounds are being let down. The clock is going backwards.

Yet for all his bluster, Michael Gove is focusing his attention elsewhere. He is presiding over a system that is radically centralising and radically fragmenting our school system. That’s why we need a very different kind of reform. As Stephen Twigg argued last week, the success of the schools in Shanghai shows strong oversight at local level is vital to sharing best practice. And as Andreas Schleicher of the OECD has pointed out, there is a strong correlation between collaborative culture and system success. Sir Michael Wilshaw made much the same point, signalling strong support for the plan set out by Stephen last Monday.

Stephen made a powerful case: wherever school freedom promotes higher standards we will extend those freedoms to all schools. We must make sure "no school is left behind." A school should not have to change its status to earn the permission to innovate. There needs to be stronger oversight of local standards – and a proper effort to foster collaboration. That adds up to a radical devolution of power, rather than the centralisation now underway in Whitehall. And to this we have to add radical change to the curriculum with a technical baccalaureate to provide a bridge from school to high-quality apprenticeships and into work for the 50 per cent of our children who don’t chose to go to university.

Or let’s take welfare reform. The challenge for welfare reformers is not whether you can dream a dream. It’s whether you can deliver. For all their tough talk about "welfare reform", the reality is that the benefits bill is rising by £20bn more than planned because David Cameron is doing nothing to address the long-term drivers of social security spending. And right now the welfare revolution we were promised is simply falling apart.

Just last Thursday, we heard stories that the National Audit Office is profoundly troubled by the state of Universal Credit. There are supposed to be a million people on the system in 10 months' time. But right now, the virtues of Universal Credit are enjoyed by just a few people in Tameside. Or take the work programme. Nice idea in theory. Failing in practice. The latest figures show nearly a million people have flowed though the programme and not even started a job, never mind kept one. Worse, for those in their 50s, who have paid a fortune in National Insurance, there is no additional support available when they become unemployed. They’re lumped in with everyone else. Result? Long-term unemployment is higher among those who have paid in the most. That isn’t fair.

Labour is proposing a radical alternative. A 'triple lock' on welfare spending with an overall cap on the budget, a household benefit cap and a limit of two years to the time you can spend on the dole. But we’ll back this with a jobs guarantee that will channel investment into support for private sector jobs for young people and the long-term unemployed. Labour councils all over Britain are trialling the idea and it’s proving an incredible success. And we’ll move to put the something for something back into social security with extra help to find work for those who’ve cared for others or paid in for a lifetime.

Last year, Norman Tebbit attacked the government’s "abiding sin" of simply seeming "unable to manage its affairs competently". A year on, things aren't getting better for working people. They’re getting much, much worse. I fear Mr Nelson has fallen for the oldest con trick in politics: the rhetoric-reality gap. He might like the government’s rhetoric, but the reality is it's now Labour which has the plan to be realistic with money – but radical with reform. 

Michael Gove speaks at last year's Conservative conference in Birmingham. Photograph: Getty Images.

Liam Byrne is Labour MP for Birmingham Hodge Hill, and sits on the International Trade select committee. He is the cofounder of the UK-China Young Leaders Roundtable and author of Turning to Face the East: How Britain Prospers in the Asian Century.

Photo: Getty
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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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