To win in 2015, Labour must reject Conservative austerity

Arguing that the party will be "tougher than the Tories" risks letting the Conservatives back into the game.

If the old maxim that whoever sets the agenda wins is true, then David Cameron is in even greater trouble than the polls suggest. Ed Miliband has led on numerous issues from Leveson to Syria and is defining the terms of debate again with his defence of living standards. His call for an energy price freeze has succeeded in reviving Labour's fortunes, with the Tories responding with their own pale imitation on water bills.

But if Labour has won the battle, how can it win the war? With wages down by an average of £1,500 a year since David Cameron became Prime Minister and prices outstripping earnings in 39 of the last 40 months, a clear break with austerity is needed. Yet the Tories intend the next parliament to be marked by the toughest years of cuts yet. A taste of just how bad things are going to get was provided by an unlikely source. The Conservative chair of the Local Government Association predicted councils will go bust after the next round of severe budget cuts in 2015-16.

Alternatives are needed and that’s why the Labour Assembly Against Austerity has been established. Its launch conference this Saturday will look at the further policies needed to develop the agenda around defending living standards as an alternative to the Tory plan to deepen austerity. Its launch statement has already won the support over 20 MPs and over 500 councillors and activists.

While Ed Miliband is reflecting the public mood, those in our party arguing that Labour needs to reject policies such as a Living Wage are out of touch with the majority. After years of rip-off energy policies and crowded and expensive trains, the public wants more action against these companies who abuse their monopoly position to win super-profits for the few. From soaring payday loan use to growing NHS waiting lists, millions have a story to tell on how austerity is making life tougher.

Labour has everything to gain by promoting more polices that take on vested interests and the failed cuts agenda. Conversely, arguing that Labour will be "tougher than the Tories", as some shadow cabinet ministers recently have, will let the Conservatives back into the game.

Polls show that Labour has a strong lead over the Conservatives on being best able to provide jobs, keep prices down and improve living standards. It’s by offering a progressive economic alternative to austerity that it can best reach out to a broad coalition of voters left worse off by the coalition.

Cat Smith is Labour PPC for Lancaster and Fleetwood

Ed Miliband with David Cameron during the service to celebrate the 60th anniversary of the Coronation of Queen Elizabeth II at Westminster Abbey. Photograph: Getty Images.

Cat Smith is Labour PPC for Lancaster and Fleetwood

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Theresa May knows she's talking nonsense - here's why she's doing it

The Prime Minister's argument increases the sense that this is a time to "lend" - in her words - the Tories your vote.

Good morning.  Angela Merkel and Theresa May are more similar politicians than people think, and that holds true for Brexit too. The German Chancellor gave a speech yesterday, and the message: Brexit means Brexit.

Of course, the emphasis is slightly different. When May says it, it's about reassuring the Brexit elite in SW1 that she isn't going to backslide, and anxious Remainers and soft Brexiteers in the country that it will work out okay in the end.

When Merkel says it, she's setting out what the EU wants and the reality of third country status outside the European Union.  She's also, as with May, tilting to her own party and public opinion in Germany, which thinks that the UK was an awkward partner in the EU and is being even more awkward in the manner of its leaving.

It's a measure of how poor the debate both during the referendum and its aftermath is that Merkel's bland statement of reality - "A third-party state - and that's what Britain will be - can't and won't be able to have the same rights, let alone a better position than a member of the European Union" - feels newsworthy.

In the short term, all this helps Theresa May. Her response - delivered to a carefully-selected audience of Leeds factory workers, the better to avoid awkward questions - that the EU is "ganging up" on Britain is ludicrous if you think about it. A bloc of nations acting in their own interest against their smaller partners - colour me surprised!

But in terms of what May wants out of this election - a massive majority that gives her carte blanche to implement her agenda and puts Labour out of contention for at least a decade - it's a great message. It increases the sense that this is a time to "lend" - in May's words - the Tories your vote. You may be unhappy about the referendum result, you may usually vote Labour - but on this occasion, what's needed is a one-off Tory vote to make Brexit a success.

May's message is silly if you pay any attention to how the EU works or indeed to the internal politics of the EU27. That doesn't mean it won't be effective.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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