Hackney Fashion Hub: A parallel universe of tourist wealth, launching in 2014

A tsunami-sized wall of cash is heading to Morning Lane, a shabby thoroughfare in Hackney - but who will benefit from it?

Two years after the riots, a tsunami-sized wall of cash is heading towards Morning Lane, a shabby thoroughfare in Hackney.

The local council secured £5m from the Greater London Authority’s regeneration fund for areas affected by the riots and it is being spent on a project costing tens of millions and called the “Hackney Fashion Hub”. Fashion outlets, a café and design studios will be housed in two new seven- and five-storey buildings and 12 railway arches located opposite and adjacent to the old Burberry factory, which has attracted busloads of Japanese tourists since it opened as an outlet store in the 1990s.

The developers are the Manhattan Loft Corporation, “the company who brought loft living to London” and whose recent projects include “67 of the most unique apartments in London, on the top floors of the Grade I-listed St Pancras Renaissance Hotel”. The architect is the trendy David Adjaye and work starts in 2014.

As well as big-brand fashion salesrooms, the development will include design studios “where locals can show their work”. The stress is on the word “local” and the council is keen to persuade us that this project is not just to attract tourists and investment from the Far East.

So we, the locals, should be over the moon about it, shouldn’t we? I spoke to Lia, who lives in Hackney and works at a vegan, volunteer-run café on Clarence Road, a focus of the London riots. She knew nothing about the development. But some local people do know and are into their designer brands – as the discerning young men who looted the Carhartt outlet near London Fields showed in 2011. Perhaps this is why David Adjaye’s shops on Morning Lane have massive, futuristic-looking riot shields on the front. I asked Adjaye Associates about them and got this reply: “No, those are simply shutters; all shops have shutters on them. They are shutters that cleverly also function as rain shields.”

Hackney Council claims that the new hub will be physically integrated with and encourage visitors to go to “other areas of Hackney” (such as the betting shops and pawnbrokers on the Narrow Way) and “new signage” will encourage them to do that. But in reality it is separated from Hackney Central by the bus station on Bohemia Place, while retailers on the Narrow Way in central Hackney, a site of rioting, are excluded from the party.

They are somewhat disgruntled. So the council has painted bright geometric shapes on the road outside their premises. “Next week we’re getting some pot plants,” said Ayub, who owns a local clothes shop. “They’re trying to kill us.”

So everyone has been catered for: the underclass in the ghetto of the Narrow Way and Clarence Road; the Chinese, South Korean and Japanese visitors in their parallel universe of tourist wealth on Morning Lane; and those who can afford the new flats on Chatham Place. If the shopkeepers still feel dissatisfied, they could participate in a scheme the council has set up called Hackney Is Friendly; it’s a “place to find a friendly face on the Narrow Way. Come in and say hello if you’re passing.”

 

It's all no change in Hackney: a simulated view of the new fashion hub. Photograph: Getty Images.

This article first appeared in the 12 August 2013 issue of the New Statesman, What if JFK had lived?

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman