The Dunfermline victory can’t disguise Scottish Labour’s difficulties

Despite the party's by-election success, all the signs still point towards another SNP-controlled parliament in 2016.

Is the news from Dunfermline this morning another sign of Scottish Labour’s revival? Having managed to hold on to Glasgow city council last year despite a determined challenge from the SNP and, more recently, slash the nationalists’ majority in Aberdeen Donside, you could be forgiven for thinking things were starting to turn back in the party’s favour.

In reality, Cara Hilton’s victory – emphatic though it was – does nothing to change the current direction of Scottish politics. The SNP won the constituency in 2011 by just 590 votes and its MSP, Bill Walker, was (eventually) forced to resign the seat after being convicted of 23 counts of domestic abuse against three ex-wives and a step-daughter. Dunfermline is not, at any rate, natural SNP territory.

The more pressing question is why Labour has made so little progress over the last two years. Although the polls have narrowed in recent months, the SNP maintains a four to five point lead over Labour in terms of Holyrood voting intentions. Moreover, Salmond’s administration enjoys strong underlying approval ratings: 57 per cent of the Scottish electorate (together with 53 per cent of Labour voters) are satisfied with the performance of the Scottish government. These are impressive numbers for a party halfway through its second term in office. 

To some extent, Labour’s problem is presentational. It hasn’t yet persuaded Scots that it is an authentically Scottish party, run from Scotland, in Scotland’s interests. Nor can it offer a clearly defined policy platform. Scottish Labour leader Johann Lamont has established a commission to review the party’s approach to universal benefits. While they wait for the commission’s report, however, her colleagues are tying themselves in knots trying to carve out coherent positions on concessionary travel, free prescriptions and university funding.

But Labour also faces a deeply-rooted, structural challenge. The party has lost support at every Holyrood election since the first in 1999. From a peak of nearly 910,000 constituency and 785,000 list votes under Donald Dewar, it slumped to a low of 630,000 constituency and 525,000 list votes in 2011 under Iain Gray.

Significantly, the largest fall in its vote share didn’t occur in 2007 or 2011, as a result of a surge in SNP popularity. It occurred in 2003, when large chunks of the left vote broke away to smaller, more radical parties such as the Scottish Socialists and the Greens. These voters haven’t returned to Labour and there is little sign that they intend to.

There has been a broader weakening of Labour’s base, too. At the 2011 elections, Labour trailed the nationalists by 14 per cent among Scots who identified themselves as working class and by 19 per cent among Scots who qualified as working class according to official criteria. The SNP was also the party of choice for public sector workers, trade unionists and even Catholics, all of whom Labour would once have considered part of its natural constituency.

Labour is entitled to celebrate the Dunfermline result. The party fought doggedly, against a typically well organised nationalist campaign, to take the seat. But it shouldn’t let this modest success disguise the scale of the task at hand. All the signs still point towards another SNP-controlled parliament in 2016. 

Scottish Labour leader Johann Lamont. Photograph: Getty Images.

James Maxwell is a Scottish political journalist. He is based between Scotland and London.

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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