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

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New New Labour: forget ideological purity – Jeremy Corbyn is building a mass appeal party

Rather than a Seventies revival, the Labour leader is creating a social democratic party giving opportunities to all parts of the population.

Does the general election result signal a new political and, dare I say it, public relations phase for Labour?

There is a consensus among commentators and MPs across the political spectrum that Jeremy Corbyn’s leadership has been a continuous struggle to revive the party’s ideological purity and rekindle its cultural and political relationship with the trade unions.

The Economist cover depicting Corbyn as Lenin with the caption “Backwards, Comrades!” encapsulated the mood about a leader thought to only offer old and sometimes toxic solutions to new problems such as the gig economy, Brexit, fintech and corporate taxation.

Criticisms about militant left politics and Seventies nostalgia exist in a political and cultural framework constructed and passionately preserved by New Labour and its proponents. New Labour was the mark of a newly reformed party that had detached itself from the politically and electorally incapacitating idea of common ownership of the means of production (known as Clause IV), and endorsed competitive market economics.

The 1996 manifesto “New Labour, New Life for Britain” set out the party’s “third way” approach to realign the free market with social justice. For New Labour, the state’s minimised role in the economy, the liberalisation of financial services and public-private partnerships can and will lead to an effective taxation system and investment in health, housing and education.

The intellectual architects of New Labour cast this ideological departure as a necessity for denouncing an alleged anachronistic and unrealistic socialist way of thinking, and effectively regaining the trust of the electorate.

Whereas Tony Blair’s New Labour embraced the free market for communicating the party’s modernisation, Corbyn subverts the logic of the free market for the same effect – to present a party fit to govern in the 21st century.

Corbyn’s leadership cannot and should not be perceived as a nostalgic return to a strong state thriving on high taxes and the provision of welfare at the expense of social mobility, entrepreneurship and ultimately electability. Instead, Corbyn’s leadership is an attempt to develop a New New Labour based on the premise of participatory democracy.

As we approach the tenth anniversary of perpetual financial crises, political volatility and consolidation programmes, citizens in the UK and across the world are frustrated with the lack of political imagination and determination.

The conviction of the efficiency of an independent market in every aspect of social life including health, housing and education prevents political leaders and policymakers from implementing radical ideas. Corbyn’s leadership and political programme highlighted the limitations of New Labour in times of crisis and distrust. New Labour has grown old, and the disbelief in socialism appears as a conservative dogma that only contributes to an ever-greater disparity between citizens and parliamentary politics.

The 2017 Labour manifesto, “For the Many Not the Few”, envisions a productive role for the state but such a role is neither restrictive nor a top-down affair. Corbyn’s New New Labour regains its legitimacy as a social democratic party – and the electorate’s trust – by striving to create opportunities on both national and local levels for all members of the population to make meaningful contributions to policymaking, and seeks to broaden the range of people who have access to these opportunities.

From crowdsourced Prime Minister’s Questions, massive mobilisation of activists inside and outside the party’s structures to the understanding of wealth creation as a collective endeavour, the Labour party has the potential to become a creative platform upon which membership, participation, individual ideas and anxieties do matter.

Progressive taxation, redistribution of wealth and nationalisation of key industries are nostalgic musings about lost political battles as long as there exist rigid boundaries between the citizen, politics and the economy. The restructuring of Labour and the redefinition of activism according to the principles of participatory democracy have enhanced the meaning of deliberation and proven that social democracy is capable of dynamic reform and renewal.

What does the future hold for Labour and its multiple ideological orientations? Condemning Tony Blair’s New Labour and praising Corbyn’s new kind of politics after beating expectations in the election is not enough. It should be the duty and aspiration of each Labour leader to formulate a New New Labour for a party that is faithful to its social democratic values and is able to govern by offering new solutions to new problems.

Dr Kostas Maronitis is a cultural and media sociologist, and lecturer at Leeds Trinity University. He is the author of “Postnationalism and the Challenges to European Integration in Greece”.