Labour must not "shrink the offer" in 2014

Those urging the party to avoid radical talk of reforming capitalism and remaking society fail to understand the deep-rooted wish for change.

By rights, 2014 should be a dud year in the political calendar, a phoney war prefacing the resumption of full hostilities in the election year to follow. That’s perhaps how Cameron and Clegg envisaged it as they cut the deal on a fixed term parliament that they hoped would let the economic cycle turn and the prospect of vote-grabbing giveaways hove back into view. Of course, that’s not how it’s played out.

As far as Labour is concerned, 2014 is the year when we push through the onslaught from Crosby and Cameron, to define the government we hope to form and the change we hope to be. We are confident that we will withstand this Lynton-led assault, thanks not least to the strength, determination and bloody-minded resilience of Ed Miliband. Yes, it will be tough.  But it is our very success so far in sloughing off Crosby’s slurs and connecting with the British people on the issues that matter to them – the cost of living crisis, above all else – that points the way forward. Now, some of those commentating on our party advise us to limit the Tories’ scope for attack by narrowing the political front on which we are engaged, to "shrink the offer" as we approach the business end of this parliament. But those calls will be resisted and rejected, because they fail to understand the deep-rooted wish for change, for another way of doing things, that is so widely felt across our country.

The logic of this marketing jargon is simple. Don’t frighten the horses with radical talk of reforming capitalism and remaking society, just lead them gently to water and, on current form, they’re likely to drink from our well. Yet the reason Ed Miliband’s Labour Party is reconnecting and rebuilding is precisely because of the boldness with which Ed has identified the core challenges which face our country and the radical ambition he has shown to address them. That’s what he did when he took on Murdoch and the Mail’s slur against Ralph Miliband, articulating the commonplace conviction that too often our press does not live up to the values of the British people.

That’s what he did when he coined the term 'squeezed middle', finding words that resonate because they are the truth for the vast majority of working men and women in our country. And that what he does when he talks of reforming capitalism, reflecting a widespread and deeply felt discontent with our unbalanced economy and the divided society and shrunken politics it has created. People may not be massing at the barricades in Britain, but they know Ed Miliband speaks for them when he says we can do better than this. And they want us to show them how.

And that, in essence, is the great challenge that 2014 poses for Labour.  It means longsighted ambitions, like a million new homes and a million green jobs. It means debunking old orthodoxies, such as the claim that you can’t buck the market, as we will do when we break up energy companies and freeze the bills. And it means having the faith of true progressives in the innate ability and good hearts of the great majority of British people and so investing in them: in their businesses and their skills, in their families and communities, in every part of our One Nation.

Far from a phoney war, 2014 is a critical period for Labour. It will be a year when, in stark contrast to the smear tactics and stunted ambition of Crosby and Cameron, we will expand our positive message for Britain, through practical policies, like the energy freeze or the Living Wage. It will be a year when we continue to set the agenda for a fairer economy and a more equal society. It will be a year when we help the British people to find hope once again, with a Labour Party that is the people’s party once more.

Ed Miliband at the Labour conference in Brighton earlier this year. Photograph: Getty Images.

Owen Smith is shadow welsh secretary and Labour MP for Pontypridd.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.