Recovery or not, the problem for Labour is that the Tories have framed the debate

The opposition should worry less about the growth rate and more about developing its own story about the economy.

Over the summer a new consensus emerged in the media that our economy was back on track. Tabloids proclaimed "Britain is booming" as a raft of positive figures and forecasts suggested the economy had returned to growth. It’s been enough to embolden George Osborne - this week he announced we had "turned a corner" and claiming victory for his economic policies.

Positive growth rates (even if they are low) are obviously good news for the coalition, but the truth is that their narrative about the economy doesn't rely on statistics at all.

Today nef is publishing research into how economic debates are framed on both sides of the political spectrum to win support for different policies. Our main finding? The coalition has an economic narrative that is the textbook definition of a powerful political story.They have developed a clear plot, with heroes and villains, and use simple, emotional language to make their point clear.

Repeated with remarkable discipline over several years, their austerity story has gained real traction with the British public. In fact, the polling data we analysed showed that month on month, no matter what people think about the coalition, they continue to believe spending cuts are necessary for the economy.

The story relies on a small set of frames to understand our economy. That austerity is the inevitable price we pay for decades of overspending. That spending cuts are the only medicine for our sick economy. That Britain is broke, hobbled by dangerous debts, and government spending is a bad habit we need to kick. It casts the coalition as its heroes, cleaning up the mess of the last Labour government. George Osborne faithfully retold it on Monday as he reminded us pre-crisis Britain was dependent on state spending and blamed falling living standards on his predecessors.

The government has successfully framed all economic debates on its own terms, but what is most powerful about their narrative is how resilient it is to different circumstances. If the economy is strong the medicine is working, if the economy is weak we need more medicine.

Meanwhile those who oppose the coalition have struggled to find their voice. Challenges to the government's policies tend to rely on academic instead of emotional language. Many fall into the trap of accepting coalition frames (a basic principle cautioned against by framing expert George Lakoff).Very few are rooted in a core story about how the economy works that is simple to understand and retell. That uses memorable visual metaphors, like the maxed out credit card George Osborne refers to when talking about the public finances.

George Osborne may have been right when he said "those in favour of plan B have lost the argument" –rightly or wrongly the austerity story has almost become orthodoxy. But it can still be challenged with another story about what is happening in our economy. One that will resonate with people when growth is low and unemployment is high. That explains why the cost of living is rising and how we can deal with it. That is simple, coherent and emotional, so that it is likely to be retold.

The headlines may have changed, but the story the coalition is telling about the economy is still the same. Opponents of the government should worry less about the growth rate and more about developing their own story about the economy.

Carys Afoko is head of communications at the New Economics Foundation

George Osborne and Ed Balls attend the State Opening of Parliament, in the House of Lords at the Palace of Westminster on May 8, 2013. Photograph: Getty Images.

Carys Afoko is head of communications at the New Economics Foundation

Getty
Show Hide image

Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

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

0800 7318496