Liberals need to challenge inequalities of economic power

To recover from the longest crisis of living standards in memory, we must address fundamental questions around ownership and democracy.

As the citizens of Egypt, Syria and Brazil struggle for control over their lives, it may seem a bit rich to suggest that the UK's economic troubles stem from an unequal distribution of power. Seen from Tahrir Square, Homs or Sao Paulo, the inequalities within British society probably appear moot. Nonetheless, as the Social Liberal Forum will discuss at our third annual conference this week, to recover from the UK's longest depression and crisis of living standards in recent memory, we must address fundamental questions around ownership and democracy, ultimately asking, "Where does power lie?"

So, let us ask: with whom does the power to ensure that finance serves the wider economy more than its own interests - and to prevent the sector from abusing its dominant position in the economy - rest? What about the power to rid politics of the corrupting effects of big money; the power to demand that the press, police and those in positions of influence uphold standards of decency – where does that power lie? To say nothing of the power over the positive capabilities we need to live the lives we have reason to value. How does the ownership of capital, companies, utilities and resources affect the social and economic freedoms we seek? In whose hands is power in each of these domains concentrated, and how can we ensure a more effective, equitable distribution?

Generations of liberal thinkers from Mill and Smith to Beveridge, Keynes and Hutton have acknowledged that the exercise of power by third parties can infringe our freedom. Indeed, liberalism is a political movement dedicated to eradicating the concentration and abuse of power – witness our (almost) unified rejection of state surveillance or of illiberal 'secret justice.' But some aspects of modern liberalism focus almost exclusively on the state as the greatest threat to our rights and liberties when a host of institutions, practices and systems can encroach on our freedom. Our vigilance against the concentration of power must extend to any aspect of society where we find it - with financial capitalism in disarray, electoral politics captured by vested interests and corporations failing to pay their dues while living standards fall for so many, now is the time to unpick the issue of ownership, democracy and power.

Take the question of power over earnings, of particular relevance given the unprecedented decline in the value of wages for millions of low and middle earners. To many, a 'democratic focus on pay' equates to a Living Wage - specifically, to ways in which government can take the lead in paying its own staff enough to live on, and legislate and/or regulate so that companies do the same - thus ending the subsidy for low pay. While these are tools social liberals would welcome, we should go further, democratising the workplace.

Low pay is at least in part a function of the lack of voice, of power, that most employees have over their pay and conditions. As Deborah Hargreaves and Janice Turner will debate at our conference, workplace democracy and a reformed role for unions have a huge part to play in empowering employees to secure a decent salary - democratically, from the bottom-up, in a way that's sensitive to the side-effects that higher wages might bring. In a globalised, competitive, technologically advancing economy, such effects cannot be ignored, and might lead us to ask "how do we unionise [or more broadly, empower] the unemployed?", because empowering those in work at the expense of those without will not do. The answer may lie in radical things like a minimum citizen's income or by expanding mutual friendly societies, perhaps on a sector-by-sector basis, which could provide a range of options to smooth the bumpy journey many face in the labour market - salary insurance, training, apprenticeships and so on.

Applying mutual ownership, widening democratic participation and a redistribution of power to the labour market is simply one example of a social liberal approach to the political economy - the conference will feature discussions on adapting this approach to public services, finance and banking, local and regional government, the welfare state and national economic strategy. The last two are key, and will be addressed in Steve Webb MP's William Beveridge Memorial Lecture, and a keynote speech by Vince Cable, respectively.

Beyond agreeing that we need to reform our political economy, we should ask ourselves whether we can implement said reform and how - answering a question put by Evan Davis in a panel discussion at the Manchester International Festival, "Are we Powerless?" How can we use our collective power as citizens to challenge received wisdom, and to move beyond securing protections against the abuses of power detailed above to fostering the positive power to live fulfilling lives? I suggest two necessary but insufficient conditions must be met.

Firstly, we must take a step back and frame policy, politics and economics differently- as if people mattered, to coin a phrase. The past 30 years - arguably longer - have focussed on growing output, on the assumption that higher living standards would follow. For some, this came true - for the many, the median salary being worth what it was a decade or more ago, not so much. So instead of asking "how do we grow the economy from here?" (which distorts how we address the crisis, hence Osborne's inflation of yet another property price bubble, for instance), we should ask how the government, private enterprise and society as a whole can empower citizens to secure for themselves the capability to live fulfilling lives. We should proceed from there, rather than assuming that growth of output, however achieved, is our goal. Framing the discussion in this way will put deficits, investment, ownership, democracy and power into balanced perspective - and permit the freedom of thought needed to satisfy the second condition, that of formulating detailed policy to meet the challenges we face.

In answer to Davis's question of powelessness, panelists Owen Jones and Judith Shapiro lamented the lack of a coherent alternative to, for want of a better word, neoliberalism. Remember this lesson from history: that even as the post-war economic settlement, with its Bretton Woods institutions and sustained growth in living standards, reached its apogee in the 1950s, 60s and 70s, the likes of Hayek, von Mises and their pals in the Mont Pelerin Society met to tear down brick-by-brick the intellectual edifice of Keynesian social democracy. Where is today's Mont Pelerin group that can build a real alternative not only to austerity but to the concentration of power that hinders progress? Where is the political movement that can integrate grassroots activism with bold leadership to put such an alternative into action? This is not a nostalgic call for a return to some golden past, but an appeal for a coherent vision as to where tomorrow's sustainable, equitable prosperity will come from.

Returning to first principles, it falls to social liberals across the political spectrum to consider aspects of ownership, democracy and power in ensuring our political economy provides shelter from poverty, ignorance and conformity, takes on Beveridge's five evils, and secures the freedom and capability for all to live fulfilling lives - nothing short of tireless endeavour to this end will suffice.

Vince Cable will be the keynote speaker at tomorrow's Social Liberal Forum conference. Photograph: Getty Images.

Prateek Buch is director of the Social Liberal Forum and serves on the Liberal Democrat Federal Policy Committee.

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If the SNP truly want another referendum, the clock is ticking

At party conference in Glasgow, I heard Scotland’s governing party demand a future distinctly different from the one being sketched out in Westminster. 

Nicola Sturgeon described Glasgow as the “dear green city” in her opening address to the SNP party conference, which may surprise anyone raised on a diet of Ken Loach films. In fact, if you’re a fan of faded grandeur and nostalgic parks, there are few places to beat it. My morning walk to conference took me past chipped sandstone tenements, over a bridge across the mysterious, twisting River Kelvin, and through a long avenue of autumnal trees in Kelvingrove Park. In the evenings, the skyline bristled with Victorian Gothic university buildings and church spires, and the hipster bars turned on their lights.

In between these two walks, I heard Scotland’s governing party demand a future distinctly different from the one being sketched out in Westminster. Glasgow’s claim to being the UK’s second city expired long ago but I wonder if, post-Brexit, there might be a case for reviving it.



Scottish politics may never have looked more interesting, but at least one Glasgow taxi driver is already over it. All he hears in the back of his cab is “politics, fitba and religion”, he complained when he picked me up from the station. The message didn’t seem to have reached SNP delegates at the conference centre on the Clyde, who cheered any mention of another referendum.

The First Minister, though, seems to have sensed the nation’s weariness. Support for independence has fallen from 47 per cent in June (Survation) to 39 per cent in October (BMG Research). Sturgeon made headlines with the announcement of a draft referendum bill, but read her speeches carefully and nothing is off the table. SNP politicians made the same demands again and again – devolved control of immigration and access to the single market. None ruled out these happening while remaining in the UK.

If Sturgeon does want a soft Brexit deal, though, she must secure it fast. Most experts agree that it would be far easier for an independent Scotland to inherit Britain’s EU membership than for it to reapply. Once Article 50 is triggered, the SNP will be in a race against the clock.


The hare and the tortoise

If anyone is still in doubt about the SNP’s position, look who won the deputy leadership race. Angus Robertson, the gradualist leader of the party in the Commons, saw off a referendum-minded challenger, Tommy Sheppard, with 52.5 per cent of the vote.

Conference would be nothing without an independence rally, and on the final day supporters gathered for one outside. A stall sold “Indyref 2” T-shirts but the grass-roots members I spoke to were patient, at least for now. William Prowse, resplendent in a kilt and a waistcoat covered in pro-indy
badges, remains supportive of Sturgeon. “The reason she has not called an Indy 2 vote
is we need to have the right numbers,” he told me. “She’s playing the right game.”

Jordi McArthur, a member for 30 years, stood nearby waving a flagpole with the Scottish, Welsh and Catalan flags side by side. “We’re happy to wait until we know what is happening with Brexit,” he said. “But at the same time, we want a referendum. It won’t be Nicola’s choice. It will be the grass roots’ choice.”


No Gerrymandering

Party leaders may come and go, but SNP members can rely on one thing at conference – the stage invasions of the pensioner Gerry Fisher. A legendary dissenter, Fisher refused this year to play along with the party’s embrace of the EU. Clutching the
lectern stubbornly, he told members: “Don’t tell me that you can be independent and a member of the EU. It’s factually rubbish.” In the press room, where conference proceedings were shown unrelentingly on a big screen, hacks stopped what they were doing to cheer him on.


Back to black

No SNP conference would be complete without a glimpse of Mhairi Black, the straight-talking slayer of Douglas Alexander and Westminster’s Baby of the House. She is a celebrity among my millennial friends – a video of her maiden Commons speech has been watched more than 700,000 times – and her relative silence in recent months is making them anxious.

I was determined to track her down, so I set my alarm for an unearthly hour and joined a queue of middle-aged women at an early-morning fringe event. The SNP has taken up the cause of the Waspi (Women Against State Pension Inequality) campaign, run by a group of women born in the 1950s whose retirement age has been delayed and are demanding compensation. Black, who is 22, has become their most ­articulate spokeswoman.

The event started but her chair remained unfilled. When she did arrive, halfway through the session, it was straight from the airport. She gave a rip-roaring speech that momentarily convinced even Waspi sceptics like me, and then dashed off to her next appointment.


Family stories

Woven through the SNP conference was an argument about the benefits of immigration (currently controlled by Westminster). This culminated in an appearance by the Brain family, whose attempt to resist deportation back to Australia has made them a national cause célèbre. (Their young son has learned to speak Gaelic.) Yet for me, the most emotional moment of the conference was when another family, the Chhokars, stepped on stage. Surjit Singh Chhokar was murdered in 1998, but it took 17 years of campaigning and a change in double jeopardy laws before his killer could be brought to justice.

As Aamer Anwar, the family’s solicitor, told the story of “Scotland’s Stephen Lawrence”, Chhokar’s mother and sister stood listening silently, still stricken with grief. After he finished, the delegates gave the family a standing ovation.

Julia Rampen is the editor of The Staggers, the New Statesman’s politics blog

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

This article first appeared in the 20 October 2016 issue of the New Statesman, Brothers in blood