Beyond Westminster, Labour is rebuilding itself as a movement

In constituencies across the country, Labour is turning itself from a declining party of the twentieth century into a vital movement of the 21st.

If you believe the press, Labour has been hobbling toward its conference. So let me put the record straight: we have had a good year building a politics of One Nation, and we are in a strong position to win in 2015. Three years out of a serious defeat, five years after the collapse of Lehman Brothers signalled the end of an economic era, Labour under Ed Miliband’s leadership is renewing itself in deep and profound ways. We have an intellectual project - One Nation. We have an organisational project – the party as a movement. We are building the political project – One Nation Labour.

Ed Miliband describes One Nation as a country in which everyone has a stake, where prosperity is fairly shared and we make a common life together. That is the goal of our policy review.

Our immediate task is to deal with the crisis in living standards. Not since the nineteenth century have we experienced a decade in which we are poorer at the end than we were at the beginning. Wages are falling, jobs are chopped and diced and poorly paid, prices go up. Whole regions of the country lack a vibrant private sector. Too much of our economy has been about extracting wealth rather than creating it. Too many corporations have put their shareholders before their customers; worrying about the short-term rather than planning for the long-term. And there are too many sectors underperforming and relying on low skill, low waged jobs. Our tax base has been over-dependent on finance and property. As the economy begins to recover, David Cameron’s government is replacing police and nurses with an army of estate agents.

Labour has a real alternative. Not big increases in day-to-day spending; nor simply copying the Tories salami slicing. Our alternative is reform.

We will begin by dealing with the cost of living crisis and tackling the deficit. We will stop household bills rising so fast. We will cap the cost of payday loans, and work to provide people on low incomes with alternative sources of affordable credit. We will introduce workers on renumeration boards to ensure a fairer distribution of reward. There are no magic answers to rebuilding the British economy. Reforming our economy so that it works for working people will require everyone to play a part. Government alone cannot galvanise the creative energy and ambitions of millions of people.

Our state is over-centralised and unable to build the trust we need to develop the economy. It needs fundamental change. We will push down power and resources to combined authorities so that they can begin the task of renewing their regional economies.

In a time of fiscal constraint we will be guided by three principles of government. First, we will support local people taking on the power and responsibility to shape their services and communities. We will help people to help themselves and each other. Second, we will invest for prevention, in order to avoid the costs of failure. For example, we need to be building homes, not wasting money paying for our failure to do so through a rising housing benefit bill. And third, our policy will prioritise collaboration between the public, private and voluntary sectors to avoid silo thinking, silo services, duplication and waste.

Over the last year, the policy review has been making the One Nation political project a reality. We have organised conferences and scores of debates and round table discussion. We’ve published an ebook and at conference on Sunday we will be launching the new book One Nation: Power, Hope, Community edited by Owen Smith and Rachel Reeves.

Effective policy making has to be part of a larger story and movement that gives it meaning and purpose. In the party there is a growing energy to build a new political movement that creates real change in people’s everyday lives. Politics is alive and thriving, it's just not happening around political parties. In the past we drove people away with our inward looking, controlling political culture. We championed innovation and entrepreneurs in society and business but we neglected to encourage them in our own organisation. But Labour is changing.

We are connecting once again with people. In constituencies across the country, Labour is turning itself from a declining party of the twentieth century into a vital movement of the 21st. We are rediscovering our traditions; those periods in our national history when working people joined together to build a better life for themselves, to win political representation and to secure for themselves a just share of national prosperity. The democracy and greater equality they created have been deeply civilising influences on our country. That is Labour’s heritage and we are now modernising our traditions for the digital age. Iain McNicol is embedding these reforms in our organisation.

During the last year, Arnie Graf has been up and down the country meeting hundreds of people. Hundreds have been trained to organise in local communities. Movement for Change are organising campaigns like the community network Home Sweet Home in Cardiff, working with tenants and landlords to improve housing standards. Parties can no longer simply be vote harvesting machines. To attract people’s active support they need also to be social and cultural movements. When people are reduced to votes and votes become transactions people drift away. The thousands of conversations in people’s living rooms, the meetings, the social media based campaigns, the friendships and solidarities that develop around neighbourhood campaigning are not about jolting the old machine politics back into life. They are about creating a different kind of politics; people winning power and building the self-confidence to create real change.

People organising together to agree a common good gives society the power to stand up to the centralising market and bureaucratic state. We need to achieve a balance of interest in the governing of our institutions, in which no one interest dominates over the others. Our politics is about the renewal and conserving of our common life and it is about a deepening of democracy which gives people more control over their lives. Policy grows out of this position and establishes permanent change.

Those who worry about Ed Miliband's determination to change the relationship between the party and the trade unions need to understand that he is right. The millions of working people who are part of the labour movement are our life blood. Without them we are nothing. But we cannot treat them as if they are the Dead Souls out of Gogol's novel. We need a fundamental change in our relationship with them.

Both the Labour Party and the unions have to face a hard truth about our historic relationship. We stopped talking to one another. We need to rebuild our relationship and that means changing it. Working people have everything to gain from a confident union movement contributing to rebuilding the economy. The country has everything to gain from a Labour Party with deep roots in our cities, town and villages.

In the year ahead, the policy review will be focusing on what really matters to people: work, family and place. Work that is fairly paid to support our families. Family because nothing is more important in life, and the place where we live that gives us a sense of belonging. This is the political centre ground: families, where they live and the work they do. Our answers to the cost of living crisis are part of our longer term goal to build an economy that works for all working people and not just the few at the top. That is the task ahead, a new political economy for One Nation.

Ed Miliband delivers his speech on reforming the Labour-trade union link at The St Bride Foundation in London on 9 July 2013. Photograph: Getty Images.

Jon Cruddas is Labour's policy review coordinator and MP for Dagenham

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Leader: The great revolt

The vote for Brexit has plunged Labour and the Conservatives into crisis.

Britain has taken a great leap into the unknown. More than four decades after joining the European Economic Community, it has turned its back on a union of 27 other nations and 500 million people at a time of profound crisis in Europe. For the European Union, which has helped maintain peace and security in Europe for half a century, it is a great blow. The shock waves are being felt across the world.

We respect the wishes of the 17 million people who voted for Leave but strongly believe it was the wrong decision. Britain will be a diminished force for good in the world, unable to influence and shape events in Europe and beyond. The UK’s reputation as a proud, outward-looking, liberal and tolerant nation has been damaged. Many Britons feel that they no longer recognise or understand their own country, while foreign nationals living in Britain feel similarly perplexed, and even afraid. Young people, who voted overwhelmingly for Remain and will have to live with the consequences of Brexit the longest, are understandably aggrieved. Yet we should not condemn those who voted for Brexit, especially the less fortunate; rather, we should seek to understand and explain.

The only good thing to say about the referendum campaign is that it is over. Seldom have facts mattered so little, and nastiness and smears been allowed to carry the day. The Leave campaign was built on half-truths, false promises and more than a whiff of xenophobia. Its leaders dismissed warnings of negative consequences of Brexit – for the economy, and for the unity and political stability of the UK – as “Project Fear”. The Remain campaign’s intention may have been to scare voters with the claims, but that does not make them untrue.

Since the result became known, the pound has tumbled to a 30-year low against the US dollar. The FTSE 250 index of shares – the best proxy for the British economy – is down 11 per cent, even after a bounce on Tuesday. This is worrying for anyone who has a pension and is near retirement. Companies that were considering investing in Britain have put their plans on hold. Several big banks are weighing up whether to shift their operations abroad. Inflation is likely to rise and economic growth to fall. A recession is looming and many jobs will be lost. And for what? A vainglorious attempt by a feeble prime minister to settle a long-burning feud in the Conser­vative Party, and to satisfy the demands of Nigel Farage’s UK Independence Party and the xenophobic right-wing press.

Investors hate uncertainty, but uncertainty is about the only thing that can be guaranteed. The breaThe vote for Brexit has plunged Labour and the Conservatives into crisis.k-up of the UK, only narrowly averted in 2014, is perhaps inevitable, with all the consequences for Britain as a world power. Scots voted to stay in the EU, and who can blame First Minister Nicola Sturgeon for agitating for a second independence referendum? Why should the Scottish people be dragged out of the EU against their democratically expressed wishes?

The vote for Brexit has plunged Labour and the Conservatives into crisis. David Cameron, who so recklessly gambled the country’s future on the referendum and will for ever be defined by his calamitous error, will be gone in September, his premiership an abject failure. His successor may well be the preposterous and mendacious Boris Johnson. Wit, ­energy and bombast are poor substitutes for truthfulness, honour and competence.

In his £5,000-a-week column for the Daily Telegraph on 26 June, Mr Johnson said that the Leave victory was not driven by fears over immigration, and the pound and the markets were stable. Both claims were false, as he well knew. His assertion that Britons’ rights to live, study, work and own property in Europe would be unaffected was equally misleading – this will have to be negotiated.

Not only are the Leave leaders in denial about the consequences of Brexit, they have given scandalously little thought to how Britain’s new relationship with the European Union might work in practice. The EU – which, as we said two weeks ago, is a troubled and failing institution – is in no mind to grant the UK any favours. Nor should it.

Mr Johnson wrote that Britain’s “access to the single market” will continue. As any of the “experts” of whom the Leave leaders were so dismissive during the campaign could have explained, for a non-member to obtain access to the EU’s single market, of the sort that Norway enjoys, it must accept freedom of movement. Perhaps Mr Johnson, who some suspect was a reluctant Brexiteer at heart, may be willing to accept this compromise if he becomes prime minister, as seems likely. Yet the majority of Leave voters will not: if it is forced upon them, their rage will make the anger that fuelled Brexit look like a child’s tantrum.

This article first appeared in the 30 June 2016 issue of the New Statesman, The Brexit lies