Tory group Renewal: capitalism needs "emergency shock treatment"

The Conservative organisation is wise to warn that the party should not position itself as the defender of a market system that is not working for the low-paid.

One of the reasons that the Conservatives' attacks on Ed Miliband as a "socialist" and a "Marxist" have failed to succeed is that they have positioned themselves as the absolutist defenders of a market system that isn't working for the majority. For millions of workers, the link between higher growth and higher wages that existed for decades has been severed. GDP may finally be rising but median wages are still forecast to be below pre-recession levels in 2018 and no higher than they were in 2003. 

In these conditions, it is unsurprising that many are attracted by Miliband's radical solutions. As I've noted before, if the Labour leader is a socialist, so are most of the public. Around two-thirds of voters support a 50p tax rate, a mansion tax, stronger workers’ rights, a statutory living wage and the renationalisation of the railways and the privatised utilities (putting them to the left of Miliband). 

If the Tories are to stand any chance of triumphing in 2015, they will need to offer answers to the failings of the market, rather than merely excuses. One group that understands this is Renewal, which seeks to broaden the party's appeal among working class, northern and ethnic minority voters. Founded last year and led by former Conservative candidate David Skelton (a frequent NS contributor) it is today launching a new piece of work entitled "Renewing Capitalism", which will look at "new ways to create a genuinely competitive economic environment in which the consumer and the low-paid are protected, competition is cherished and anti-competitive, monopolistic behaviour is cracked down on". It is also calling again for the introduction of policies such as a rise in the minimum wage, the building of one million homes and the creation of a new Secretary of State for consumer protection. At the same time, Policy Exchange, Skelton's alma mater, has launched "Popular Capitalism", which will look at ways of creating private sector jobs outside London and dealing with the challenges around low pay and housing shortages. 

Skelton said of Renewal's new project: "The Conservative Party needs to come to terms with the fact that many people, particularly the low paid, don't think that capitalism is working for them. We need to do more to show that capitalism can work for everybody in every part of the country. Being pro market isn't the same as being pro big business. Where there are instances of abuse – in either the public or the private sector – Conservatives should come down hard to protect the consumer."

Robert Halfon, its main parliamentary supporter, who recently argued in favour of a windfall tax on the energy companies on The Staggers, said: "It was a big mistake for the Conservative Party to oppose the minimum wage. We must right that wrong by at least increasing it in line with inflation.  We should not make the same mistake. We must move on to ensure that everyone, in the north and the south, on low wages as well as high, can benefit from the proceeds of growth. If we say that the Conservative Party is on the side of hard working people then we have to really mean it."

Renewal's programme offers a coherent response to what remains the Conservatives' greatest weakness: that they are viewed by most voters as "the party of the rich". But it is less clear to what extent the party leadership is prepared to embrace it. While it seems likely that there will now be a significant rise in the minimum wage next month, after Tory cabinet ministers threw their weight behind the idea, the Conservatives have yet to came close to outlining a plan to build houses on the scale required, preferring to focus on subsidising demand through Help to Buy. In the 12 months to September 2013, annual housing starts totalled just 117,110, while annual housing completions fell by 8% to 107,950, the lowest level of construction since the 1920s. 

More broadly, Renewal faces countervailing pressure from organisations such as the Free Enterprise Group whose vision of an even more deregulated economy (for instance through UK withdrawal from the Social Chapter) is at odds with its call for a more humane capitalism. Just 14 months away from the election, time is short for the Tories to detoxify their brand. The decision to cut the top rate of tax, to privatise large parts of the NHS and to demonise trade unionists have all added to the damage. But if Renewal's agenda becomes the party's, the long work of winning a hearing among voters who have shunned it for decades will begin. 

David Cameron speaks at the Conservative conference in Manchester last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

A swimming pool and a bleeding toe put my medical competency in doubt

Doctors are used to contending with Google. Sometimes the search engine wins. 

The brutal heatwave affecting southern Europe this summer has become known among locals as “Lucifer”. Having just returned from Italy, I fully understand the nickname. An early excursion caused the beginnings of sunstroke, so we abandoned plans to explore the cultural heritage of the Amalfi region and strayed no further than five metres from the hotel pool for the rest of the week.

The children were delighted, particularly my 12-year-old stepdaughter, Gracie, who proceeded to spend hours at a time playing in the water. Towelling herself after one long session, she noticed something odd.

“What’s happened there?” she asked, holding her foot aloft in front of my face.

I inspected the proffered appendage: on the underside of her big toe was an oblong area of glistening red flesh that looked like a chunk of raw steak.

“Did you injure it?”

She shook her head. “It doesn’t hurt at all.”

I shrugged and said she must have grazed it. She wasn’t convinced, pointing out that she would remember if she had done that. She has great faith in plasters, though, and once it was dressed she forgot all about it. I dismissed it, too, assuming it was one of those things.

By the end of the next day, the pulp on the underside of all of her toes looked the same. As the doctor in the family, I felt under some pressure to come up with an explanation. I made up something about burns from the hot paving slabs around the pool. Gracie didn’t say as much, but her look suggested a dawning scepticism over my claims to hold a medical degree.

The next day, Gracie and her new-found holiday playmate, Eve, abruptly terminated a marathon piggy-in-the-middle session in the pool with Eve’s dad. “Our feet are bleeding,” they announced, somewhat incredulously. Sure enough, bright-red blood was flowing, apparently painlessly, from the bottoms of their big toes.

Doctors are used to contending with Google. Often, what patients discover on the internet causes them undue alarm, and our role is to provide context and reassurance. But not infrequently, people come across information that outstrips our knowledge. On my return from our room with fresh supplies of plasters, my wife looked up from her sun lounger with an air of quiet amusement.

“It’s called ‘pool toe’,” she said, handing me her iPhone. The page she had tracked down described the girls’ situation exactly: friction burns, most commonly seen in children, caused by repetitive hopping about on the abrasive floors of swimming pools. Doctors practising in hot countries must see it all the time. I doubt it presents often to British GPs.

I remained puzzled about the lack of pain. The injuries looked bad, but neither Gracie nor Eve was particularly bothered. Here the internet drew a blank, but I suspect it has to do with the “pruning” of our skin that we’re all familiar with after a soak in the bath. This only occurs over the pulps of our fingers and toes. It was once thought to be caused by water diffusing into skin cells, making them swell, but the truth is far more fascinating.

The wrinkling is an active process, triggered by immersion, in which the blood supply to the pulp regions is switched off, causing the skin there to shrink and pucker. This creates the biological equivalent of tyre treads on our fingers and toes and markedly improves our grip – of great evolutionary advantage when grasping slippery fish in a river, or if trying to maintain balance on slick wet rocks.

The flip side of this is much greater friction, leading to abrasion of the skin through repeated micro-trauma. And the lack of blood flow causes nerves to shut down, depriving us of the pain that would otherwise alert us to the ongoing tissue damage. An adaptation that helped our ancestors hunt in rivers proves considerably less use on a modern summer holiday.

I may not have seen much of the local heritage, but the trip to Italy taught me something new all the same. 

This article first appeared in the 17 August 2017 issue of the New Statesman, Trump goes nuclear