Boris's championing of inequality is a recipe for destroying social mobility

The mayor presented social mobility as compensation for inequality but it's the gap between the rich and poor that erodes opportunity.

We can at least commend Boris Johnson for his candour. Unlike those in his party who hide behind euphemisms and platitudes, the mayor presented rampant inequality as both inevitable and desirable in his Margaret Thatcher lecture last night. Differences in IQ, the efficient operation of the free market and the need for economic incentives all meant it was "futile" for politicians to even try to narrow the gulf between the rich and the rest. "Whatever you may think of the value of IQ tests it is surely relevant to a conversation about equality that as many as 16% of our species have an IQ below 85 while about 2% have an IQ above 130," he said, oblivious to the fact that this gap isn't the cause of inequality but the result of it

But while delivering this bleakly Hobbesian message, he attempted to sweeten the pill by echoing John Major's lamentation of stagnant social mobility and calling for a dramatic expansion of opportunity. In one passage he remarked:

I worry that there are too many cornflakes who aren’t being given a good enough chance to rustle and hustle their way to the top. We gave the packet a good shake in the 1960s; and Mrs Thatcher gave it another good shake in the 1980s with the sale of the council houses. Since then there has been a lot of evidence of a decline in social mobility, as Sir John Major has trenchantly pointed out.

And in another:

It seems to me that though it would be wrong to persecute the rich, and madness to try and stifle wealth creation, and futile to stamp out inequality, we should only tolerate this wealth gap on two conditions. One, that we help those who genuinely cannot compete; and two, that we provide opportunity for those who can

But his presentation of social mobility as a form of compensation for inequality was almost comically inappropriate. As anyone with the most cursory grasp of the subject knows, reduced opportunity is the inevitable result of greater inequality: it's harder to climb the ladder when the rungs are further apart. As the empirical masterpiece The Spirit Level showed (see graph), it is the most unequal countries, such as the UK and the US, that have the lowest levels of social mobility, while the most equal, such as Sweden, Canada and Japan, that have the highest. In the case of Britain, it was after Boris's heroine took office, and the gap between the rich and the poor became a chasm (the gini coefficient rose from 12.9 in 1978 to 22.2 in 1990), that social mobility began to stagnate. 

Confronted by this unavoidable truth, Boris offered nothing resembling a solution. In his recent report on the subject for the coalition, Alan Milburn wisely noted that "deep-rooted inequality and flatlining mobility have been decades in the making" and that "in most developed countries there has been a declining share of economic growth going to labour (and a higher share to capital) at the same time as there has been growing wage inequality. In the UK, the share of national income going to wages of workers in the bottom half of the earnings distribution decreased by a quarter between 1979 and 2009."

But Boris had nothing say to about repairing the broken link between growth and earnings. Instead, he called for the return of academic selection under the guise of "academic competition" (perpetuating the myth of grammar schools as engines of social mobility) and sought to reassure us that those benefiting most from inequality were already paying their fair share. He told his audience: "Today, when taxes have been cut substantially, the top one per cent contributes almost 30 per cent of income tax [one might note that he is among them]; and indeed the top 0.1 per cent - just 29,000 people - contribute fully 14 per cent of all taxation."

Yet this statistic tells us less about what has happened to the tax system than it does about what has happened to the income system. Over the period in question, the earnings of the rich have soared to hitherto unimaginable levels. As a recent OECD study showed, the share of income taken by the top 1% of UK earners increased from 7.1% in 1970 to 14.3% in 2005, while the top 0.1% took 5%. Quite simply, the rich are paying more because they're earning more. Is this really cause for us to "fete them and decorate them and inaugurate a new class of tax hero"? If 11 million low and middle earners receive the pay rise they have been denied since 2003, they'll pay more tax too. In fact, compared to the rich, they're already paying the lion's share. As the ONS recently found, owing to VAT and other regressive levies, the least well-off households pay 36.6% of their income in tax, while the wealthiest pay 35.5%. Had the coalition taken Boris's advice and cut the top rate of income tax to 40p (with a 30p rate down the line) , that gap would be even wider. 

A more progressive tax system would narrow the gap between rich and poor and tilt the odds in favour of social mobility but here, as elsewhere, the policies promoted by Boris aren't the solution to a society in which birth determines destiny, they're the cause of it. 

Boris Johnson declared in his Margaret Thatcher lecture that it was "futile to stamp out inequality". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Who "speaks for England" - and for that matter, what is "England"?

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones.

The Hollywood producer Sam Gold­wyn once demanded, “Let’s have some new clichés.” The Daily Mail, however, is always happiest with the old ones. It trotted out Leo Amery’s House of Commons call from September 1939, “Speak for England”, for the headline on a deranged leader that filled a picture-free front page on David Cameron’s “deal” to keep Britain in the EU.

Demands that somebody or other speak for England have followed thick and fast ever since Amery addressed his call to Labour’s Arthur Greenwood when Neville Chamberlain was still dithering over war with Hitler. Tory MPs shouted, “Speak for England!” when Michael Foot, the then Labour leader, rose in the Commons in 1982 after Argentina’s invasion of the Falklands. The Mail columnist Andrew Alexander called on Clare Short to “speak for England” over the Iraq War in 2003. “Can [Ed] Miliband speak for England?” Anthony Barnett asked in this very magazine in 2013. (Judging by the 2015 election result, one would say not.) “I speak for England,” claimed John Redwood last year. “Labour must speak for England,” countered Frank Field soon afterwards.

The Mail’s invocation of Amery was misconceived for two reasons. First, Amery wanted us to wage war in Europe in support of Hitler’s victims in Poland and elsewhere and in alliance with France, not to isolate ourselves from the continent. Second, “speak for England” in recent years has been used in support of “English votes for English laws”, following proposals for further devolution to Scotland. As the Mail was among the most adamant in demanding that Scots keep their noses out of English affairs, it’s a bit rich of it now to state “of course, by ‘England’. . . we mean the whole of the United Kingdom”.

 

EU immemorial

The Mail is also wrong in arguing that “we are at a crossroads in our island history”. The suggestion that the choice is between “submitting to a statist, unelected bureaucracy in Brussels” and reclaiming our ancient island liberties is pure nonsense. In the long run, withdrawing from the EU will make little difference. Levels of immigration will be determined, as they always have been, mainly by employers’ demands for labour and the difficulties of policing the borders of a country that has become a leading international transport hub. The terms on which we continue to trade with EU members will be determined largely by unelected bureaucrats in Brussels after discussions with unelected bureaucrats in London.

The British are bored by the EU and the interminable Westminster arguments. If voters support Brexit, it will probably be because they then expect to hear no more on the subject. They will be sadly mistaken. The withdrawal negotiations will take years, with the Farages and Duncan Smiths still foaming at the mouth, Cameron still claiming phoney victories and Angela Merkel, François Hollande and the dreaded Jean-Claude Juncker playing a bigger part in our lives than ever.

 

An empty cabinet

Meanwhile, one wonders what has become of Jeremy Corbyn or, indeed, the rest of the shadow cabinet. The Mail’s “speak for England” leader excoriated him for not mentioning “the Number One subject of the hour” at PM’s Questions but instead asking about a shortage of therapeutic radiographers in the NHS. In fact, the NHS’s problems – almost wholly caused by Tory “reforms” and spending cuts – would concern more people than does our future in the EU. But radiographers are hardly headline news, and Corbyn and his team seem unable to get anything into the nation’s “any other business”, never mind to the top of its agenda.

Public services deteriorate by the day, George Osborne’s fiscal plans look increasingly awry, and attempts to wring tax receipts out of big corporations appear hopelessly inadequate. Yet since Christmas I have hardly seen a shadow minister featured in the papers or spotted one on TV, except to say something about Trident, another subject that most voters don’t care about.

 

Incurable prose

According to the Guardian’s admirable but (let’s be honest) rather tedious series celeb­rating the NHS, a US health-care firm has advised investors that “privatisation of the UK marketplace . . . should create organic and de novo opportunities”. I have no idea what this means, though it sounds ominous. But I am quite certain I don’t want my local hospital or GP practice run by people who write prose like that.

 

Fashionable Foxes

My home-town football team, Leicester City, are normally so unfashionable that they’re not even fashionable in Leicester, where the smart set mostly watch the rugby union team Leicester Tigers. Even when they installed themselves near the top of the Premier League before Christmas, newspapers scarcely noticed them.

Now, with the Foxes five points clear at the top and 7-4 favourites for their first title, that mistake is corrected and the sports pages are running out of superlatives, a comparison with Barcelona being the most improbable. Even I, not a football enthusiast, have watched a few matches. If more football were played as Leicester play it – moving at speed towards their opponents’ goal rather than aimlessly weaving pretty patterns in midfield – I would watch the game more.

Nevertheless, I recall 1963, when Leicester headed the old First Division with five games to play. They picked up only one more point and finished fourth, nine points adrift of the league winners, Everton.

 

Gum unstuck

No, I don’t chew toothpaste to stop me smoking, as the last week’s column strangely suggested. I chew Nicorette gum, a reference written at some stage but somehow lost (probably by me) before it reached print.

Editor: The chief sub apologises for this mistake, which was hers

Peter Wilby was editor of the Independent on Sunday from 1995 to 1996 and of the New Statesman from 1998 to 2005. He writes the weekly First Thoughts column for the NS.

This article first appeared in the 11 February 2016 issue of the New Statesman, The legacy of Europe's worst battle