Labour and the Tories' woes show our political system is breaking apart

The growing strength of the Tory right and the anti-austerity left suggests our stable, predictable system of party politics may be coming to an end.

It is fair to say Philip Hollobone and Peter Bone don’t think much of David Cameron’s government. The clan leaders of the so-called Tory Taliban were responsible for the ‘alternative Queen’s Speech’ the other week which included moves to ban burqas, bash gypsies and wallop wind farms.

On the other side of the political aisle, activists from the People’s Assembly Against Austerity don’t think much of Labour either. One of their luminaries, PCS general secretary Mark Serwotka, spelled out why in his Staggers piece last week, berating Ed Miliband’s repositioning on welfare and spending as "economically stupid" and "politically inept".

Both can be dismissed as trumpet blasts from the political margins but they are indicative of something that our political leaders know only too well: British politics, as we have known it, is on the way out.

For 80 years, our system has accommodated large, conglomerated parties of the centre-right and centre-left, a small liberal party and assorted nationalists and unionists. This settlement has proved remarkably resilient in seeing off pretenders before, most notably the Social Democratic Party in the early 1980s, but the edges are now starting to atrophy, leading to fractiousness and fragmentation.

It starts at the edges but it really affects the centre, with powerful disintegrative forces pulling the two main parties towards the extremes, with centrists in both parties clinging on for dear life. As the Tories leach support to UKIP, Cameron moves rightwards to counter their advance.

Labour, meanwhile, faces a different challenge. It doesn’t have to counter an exogenous threat; recent events focusing on Unite’s modus operandi in parliamentary selection battles shows its problems are closer to home. The duty of trade unions to represent their members’ interests sees most reject austerity. This will become increasingly at variance with Labour’s more pragmatic approach as the party begins the process of staking a claim to the centre-ground and detailing its plans around deficit reduction and governing a radically downsized state.

As the party’s largest affiliate and biggest financial backer, with £8.4m donated to party coffers since 2010, Unite is currently pondering a merger with Serwotka’s more radical PCS (which isn’t affiliated to Labour) presenting the risk that a new super-union may disaffiliate from the party given the growing disagreements over economic policy, a move which would also scupper Labour financially.

Although it is the Tories who are publicly riven on issues stretching from gay marriage to HS2, Labour’s divisions run deeper. Social democracy, stripped of the ability to use the heft of the state to create a more equal society, suggests that Labour’s nervous breakdown is on its way, with the lack of hard detail about its direction currently serving to disguise tensions that go to the heart of what the party is for and in whose interests it governs.

Could either Labour or the Conservatives break apart? Traditionally the costs of establishing a political party and a hostile first-past-the-post electoral system, which makes it difficult for newcomers to gain electoral traction, has prevented this happening. But UKIP’s recent success is perhaps showing that it is possible to break the mould (although Farage still has to translate opinion poll results into actual seats).

Yet beyond the philosophical differences within our main parties lie deeper structural problems. Membership and participation levels have tumbled to all-time lows. Even allowing for a spike in new members following the 2010 defeat, Labour’s total is now half what it was in the mid-1990s. The Conservatives, with two million members in the 1950s, are now down to a tenth of that figure, with around 180,000 today. Meanwhile UKIP, with 30,000 recruits, is on course to overtake the Lib Dems, who have lost 35 per cent of their members since entering the coalition.

The emergence of a four-party system could see Labour win the next election with as little as a third of the popular vote, a prospect that should horrify party strategists, with "one nation" politics becoming a hollow boast if two-thirds of the electorate back other parties. But the rot goes far deeper than just the state of our parties. As few as six out of ten people now bother to vote in general elections – down from 78 per cent as recently as 1992, with the Electoral Commission warning that at least six million people are not registered to vote at all.

The crackpots of the Tory right and the purists of the anti-austerity left are easily dismissed as unrepresentative ultras, but their very existence – and their growing strength - serves to tell us that our stable, predictable system of party politics is now breaking apart.

David Cameron and Ed Miliband look on during the service to celebrate the 60th anniversary of the Coronation of Queen Elizabeth II at Westminster Abbey in London. Photograph: Getty Images.

Kevin Meagher is associate editor of Labour Uncut.

Photo: Getty Images
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Autumn Statement 2015: whatever you hear, don't forget - there is an alternative

The goverment's programme of cuts is a choice, not a certainty, says Jolyon Maugham.

Later today you will hear George Osborne say there is no alternative to his plan to slash a further £20bn from lean public services by 2020-21. He will also say that there is no alternative to £9bn cuts to tax credits, cuts that will hit the poorest hardest, cuts of thousands of pounds per annum to the incomes of millions of households.

But there is.

As I outlined here the Conservatives plan future tax cuts which benefit, disproportionately or exclusively, the wealthy. Suspending those future tax cuts for the wealthy would say, by 2020-21, £9.3bn per annum.

I also explained here that a mere 50 of our 1,156 tax reliefs cost us over £100bn per annum. We don't know how much the other 1,106 reliefs cost us - because Government doesn't monitor them. And we don't know what public benefit they deliver - because Government doesn't check.

What we do know, as I explained here, is that they disproportionately and regressively benefit the wealthy: an average of £190,400 per annum for the wealthiest.

And we know, too, that they include (amongst the more than 1,000 uncosted reliefs) the £1bn plus “Rights for Shares Scheme” - badged by the Chancellor as for workers but identified by a leading law firm as designed for the wealthiest.

Simply by asking a question that the Chancellor chooses to ignore - do these 1,156 reliefs deliver value for money - it is entirely possible that £10bn or more extra in taxes could be collected without any loss of  public benefit

To this £19bn, we might add the indiscriminate provision - both direct and indirect - of public money to wealthy pensioners.

Those above basic state pension age enjoy a tax subsidy of up to 12% on earned income.

Moreover, this Office for National Statistics data (see Table 18) reveals that the 10% of wealthiest retired households - some 714,000 households - have gross pre-tax and pre-benefit private income of on average £43,983. Yet still they enjoy average cash benefits from government of £11,500 per annum.

Means testing benefits to exclude that top 10 per cent of retired households would save £8.2bn per annum. And why, you might wonder aloud, should means testing be thought by the government appropriate for the working age population, yet a heresy for retired households?

Add in abolition of that unprincipled tax subsidy and you'll save even more. 

So there are alternatives. Clear alternatives. Good alternatives. Alternatives that enable those with the broadest shoulders to bear some share of the pain. Don't allow yourself to be persuaded otherwise.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.