If Labour is to succeed, it must end its addiction to the state

Having distanced himself from neo-liberalism, Ed Miliband needs to redefine British social democracy as more participative, more socially liberal, and more community-focused.

2014 will usher in a new dynamic in British politics, a time when Labour’s credentials as a potential party of government will be subject to sustained, critical examination. This is the moment when the party has to reveal more about the policy directions it intends to pursue, signalling where its real priorities for Britain lie. And this is the year that will reveal whether Labour has used its time in opposition to think imaginatively about its mistakes – and governing achievements.

It is vital that the party’s policy review is ruthlessly tailored to the challenges and pressures of the post-crisis age, and neither refuses to evade current realities nor reverts to the managerialist populism which characterised New Labour’s final days. It has to address key strategic challenges, signalling its acceptance of the hard choices that policy-making inevitably entails in today’s world.

The first challenge is the sheer scale of the retrenchment that the current administration has been inflicting on the public sector, and its long-term implications. According to the Office for Budget Responsibility (OBR), by 2017-18 government consumption of goods and services will be at its lowest level since the end of the Second World War. A centre-left party will have to learn to govern with far less public money around. It should avoid becoming trapped in a defensive, austerity-lite mindset, salami-slicing departmental budgets without determining the major social priorities it intends to pursue.

Labour needs to make a compelling case for 'switch spending' – allocating resources according to distinctive priorities beyond those favoured by its opponents, while identifying itself as the party that speaks up for the public realm. This means making a case for the social and economic value of public investment in those areas where the market cannot be relied on to deliver - infrastructure, universities, childcare, and social care. In the stringent fiscal circumstances Labour will inherit, identifying national priorities means starting to level with the public about the areas where spending needs to be  tightened , while signalling the kind of tax regime which it believes is required to perpetuate growth and ensure a fairer recovery Saying hardly anything about  these questions, for fear of offering a target to the party’s opponents, is likely to undermine Labour’s chances of securing the kind of electoral coalition which it needs to secure victory in 2015.

The second related challenge concerns the impact upon the UK’s society and economy of the financial crisis, and subsequent recession. Overly stringent austerity has eroded the productive base of the UK economy yet further. The scarring effects of the recession are manifest in the appallingly high numbers of young unemployed and crippling poverty levels among families with 'working poor' parents. Social mobility has ground to a halt while the capacity of middle class parents to horde the advantages of money and human capital accrued across generations are a major obstacle to an inclusive and fair society. A party that seeks to sustain a principled, reforming government needs to prepare the ground for the kinds of measures – mansion and land taxes, a higher minimum wage, an expansion of the pupil premium (right up to university level), and investment in childcare – which are urgently required.

The third strategic challenge that Labour must confront is the implications of the growing crisis facing the future integrity of the United Kingdom. The party is not alone at Westminster in failing to establish a cogent response to the dilemmas posed by a referendum on Scottish independence, the threat posed by the populist nationalism espoused by UKIP, and the UK’s membership of the European Union. Indeed, the fumbling, confused response of the UK parties has fermented a governing crisis at least as potent in its implications as the global financial crash. Were Scotland to vote ‘yes’ to independence in 2014, or  the UK to vote to leave the EU  in 2017, the shocks administered to the British political system would be nothing short of seismic.

If Labour is to become the party that breaks the extraordinary concentration of political and economic power in London - distorting the social and economic balance of England and the rest of the UK - then it must engage with rising resentment about the absence of a political voice and economic levers for many different English communities. A road map is needed for how power will be devolved to cities and counties as a credible answer to the English question, for so long evaded in British politics.

Labour needs to face up to these issues and to give a broad indication of its intentions in the face of them. At present, the temptation is to revert to the well-intentioned redistributivism and Treasury orthodoxy that were a hallmark of the Brown era. Yet the notion that Labour might pursue a fairer society primarily through the long arm of the central state – using familiar tools such as public spending and tax credits – is fraught with danger. Such a notion ignores the problem of legitimacy which that kind of top-down statism now faces in England – the sole remaining territory directly controlled by a Westminster government. An approach that merely ameliorates the dysfunctional and systematic inequality generated by markets and inequitable public service provision is also expensive and wasteful.

A shift of focus towards preventative up-front investment; a new model of social partnership – between government and civil society, and  the dispersal of power to agencies more likely to address the problems faced by different localities – would signal a distinctive approach to tackling some of the major problems facing England, and tackle  Labour’s reputation for excessive managerialism. It is increasingly evident that complex policy challenges – entrenched pockets of social disadvantage and isolation, the looming threat of obesity and lifestyle diseases, the prospect of catastrophic climate change – require a markedly different use of public power, a new model of partnership which is co-ordinated at local level, not the corridors of Whitehall.

The imperative to devolve more economic and political power across England should be reflected in a concerted programme of public service reform relying on the values of voice and locality, as well as choice; a welfare system in which contribution and protection are re-combined; and an explicit focus on SMEs and promoting local entrepreneurship. Only the concerted dispersal of power to individuals, communities and localities will provide the basis for an attack on elite vested interests and class-based inequalities that hold people back.    

Examples of this vision can be glimpsed in the work that local authorities throughout England from Oldham to Southwark are doing – drawing on the resources of communities, sharing front-line services, forging creative partnerships with the charitable sector and business, focusing on well-being and cultivating a  sense of place, while bringing neighbourhoods together to create public assets serving the common good.

Since 2010, Ed Miliband has demonstrated an impressive capacity to open up ideological territory and go against the conventional political grain. This quality might yet prove to be his winning card. Having distanced himself from the 'neo-liberalism' of the previous era, he needs now to redefine British social democracy as more participative, more socially liberal, and more community-focused. This kind of politics draws upon the non-statist strand of Labour’s heritage, reconnecting with those traditions that have woven decentralising and pluralist ideas with a determined opposition to injustice, alongside an understanding that the public realm means much more than the central state.

Patrick Diamond is vice chair of Policy Network, lecturer in public policy at Queen Mary, University of London, and a former Labour adviser

Michael Kenny is research associate at IPPR and professor of politics at Queen Mary, University of London

Ed Miliband speaks at the Labour conference in Brighton last year. Photograph: Getty Images.
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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

India Bourke is an environment writer and editorial assistant at the New Statesman.