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 a Labour leadership candidate and MP for Pontypridd. 

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”