Leader: MPs should be paid more but the whole system needs urgent reform

There is a sense of widespread disenfranchisement from a political system that people feel is corrupt and rigged against them.

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The suggestion that MPs’ pay should be increased, during this protracted and bitter period of austerity, seems like an idea drawn from the Louis XVI school of public relations. Average wages are not forecast to return to their pre-recession level until 2023 and, after a two-year pay freeze, public-sector salary rises have been capped at 1 per cent until 2016. If any group is to be exempt from such privation, how many will agree it should be MPs?

After the expenses scandal of 2009, MPs ceded control over their pay to an arm’s-length regulator, the Independent Parliamentary Standards Authority (Ipsa). David Cameron declared at the time: “We say that from now and into the future, MPs should not vote on our pay, our expenses, our pensions, our terms of service . . . Isn’t that an essential part of restoring faith in parliament, in politics, in this House of Commons, that all of us care about?” What he did not anticipate was that Ipsa, unbeholden to public opinion, would suggest that MPs’ pay should rise, not fall. When the body publishes its recommendations later this month, it is expected to propose a 13 per cent increase in MPs’ basic salaries from their current level of £66,396 to £75,000. MPs also have generous pension allowances.

For fear of incurring the wrath of voters and the tabloid media, all three of the main party leaders have distanced themselves from the report. Mr Cameron has argued that the “cost of politics” must be reduced, Ed Miliband has suggested that any increase in pay should be pegged at 1 per cent and Nick Clegg has described, with his usual verbal elegance, the prospect of a rise as “potty”. Some MPs have even suggested that parliament should strip Ipsa of its responsibilities in this area. Yet, privately, most recognise the case for reform. A survey of 100 MPs conducted by YouGov on Ipsa’s behalf found that 69 per cent thought they were underpaid, with an average salary of £86,250 proposed.

Any assessment of MPs’ pay must begin by acknowledging that, by historical standards, they are not underpaid and that they already earn vastly more than most of those they represent. In 1979, MPs were paid £9,450, the equivalent of £40,490 in real terms. Their pay has since risen by more than 50 per cent, compared to an average increase of 37 per cent. The median full-time salary in the UK is £26,312, putting MPs comfortably in the top 5 per cent of earners.

Yet if parliamentarians have less cause for complaint than some suggest, the case for an increase in their pay remains a compelling one. The average MP now works 69 hours a week, excluding travel, with much time spent on constituency casework. British members are paid significantly less than their counterparts in Japan (£165,945), the United States (£108,032), Australia (£120,875), Italy (£112,898) and Canada (£99,322) and less than the average GP (£88,920) and far less than the typical BBC executive.

Should MPs’ salaries remain frozen at their current level, the result will be an even narrower political system, the preserve of the trust-fund class, the wealthy and the entitled. It was in an attempt to avert this fate that David Lloyd George introduced an annual stipend of £400 for MPs in 1911, describing it is an allowance for those “who cannot be here because their means do not allow it”.

Today, for those without inherited wealth or lucrative business interests, the obstacles to becoming an MP are becoming more formidable. As the former Labour general secretary Peter Watt recently wrote of parliamentary selections, “If you can’t afford to take a couple of months off work, pay for accommodation and travel, abandon your family and pay for your own materials you are screwed.” Add to this the estimated £10,000 cost of running for parliament and higher pay begins to look like nothing less than adequate compensation for what is or should be a hugely demanding job. It was this consideration that led Commons officials to encourage MPs to treat their expenses as a de facto second salary, creating the conditions for the scandal uncovered in 2009.

If an increase in pay is to be sold to the public – and it will have to be at some point – it will only be acceptable as part of a wider set of measures to improve democracy and accountability. In return for an increased basic salary, MPs should relinquish any significant outside interests and devote their full attention to legislation and to their constituents (many of whom are in desperate need of it). The bloated House of Lords, whose 760 members are able to claim a tax-free daily allowance of £300 for “clocking in”, must finally be reformed and replaced with an elected senate. All 92 hereditary peers should be abolished. And all parties must give greater thought to how to enable more working-class candidates to stand for parliament, including the possibility of a public allowance for those without the necessary means.

Our politics are debased and our culture is hysterical. The public is no longer merely sceptical of MPs’ motives; it is cynical about them. And fewer and fewer people wish to become members of a political party. There is a sense of widespread disenfranchisement from a political system that people feel is corrupt and rigged against them.

If we are to have a democracy that is truly worthy of the name, it is time to recognise that we will need to pay for it.

The Houses of Parliament. Photograph: Getty Images

This article first appeared in the 08 July 2013 issue of the New Statesman, The world takes sides

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.