Ed Miliband and Ed Balls at the Labour conference in Brighton last year. Photograph: Getty Images.
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Could flood prevention help Labour make the case for "good borrowing"?

Ed Balls's emphasis on the long-term benefits of investment in flood defences is an example of how the party could challenge the Tory narrative on public spending.

With the flood waters finally receding, the debate about how Britain copes with extreme weather in the long-term (the Met Office has just confirmed that this winter was the wettest since 1910) is beginning. Ed Balls has a notable piece in the Telegraph today committing the next Labour government to increased investment in flood defences (it "must and will be a priority," he writes). Having warned in his 2012 conference speech that "we must decide how we are going to protect our country from rising sea levels and exceptional rainfall", Balls, more than most, can claim to have seen this crisis coming.

In the piece, he makes the case for higher spending on flood protection (which, contrary to David Cameron's claims, was cut by 17 per cent in real-terms in 2010) as part of a wider shift towards long-term preventative spending (which can result in significant savings). He writes:

[T]he damage from the flooding of recent weeks is not only to people's lives and livelihoods, but the financial costs are expected to be over a billion pounds. Furthermore, the Committee on Climate Change warned last month that investment in flood defences is now £500 million below what's needed and that this risks £3 billion in avoidable flood damage.

How can this make economic sense? Rather than the short-termist salami-slicing of budgets we have seen, we need instead to make long-term decisions now that can save money in the future.

Next month's Budget must begin to set out that action, and I am also clear that investment in flood defences - preventative spending that can save money in the long-run - must and will be a priority for the next Labour government.

Balls is certainly right to argue for the long-term economic benefits of investment (alongside flood prevention, one could cite housing, childcare, transport and skills), which is why he has, crucially, left open the option of borrowing for this purpose, while achieving a current budget surplus.

In a recent Staggers piece, Julian Morgan, the chief economist of Green Alliance, made the case for running a capital deficit to pay for improved flood defences: "As flood defences provide protection for many years to come, it seems wholly appropriate to pay for them gradually with long-term borrowing by issuing 30 or even 50 year gilts, especially when the cost of financing is so low. This would mean that the burden would not only fall on the current generation of taxpayers, but would be spread across the current and future beneficiaries of the flood defences."

The shadow chancellor and his aides state both publicly and privately that no decision will be taken on whether to do so until closer to the election, when the state of the economy is clearer. But few in the party believe it will be possible for Labour to achieve its priorities – a mass housebuilding programme, universal childcare, the integration of health and social care – without doing so. As one shadow cabinet minister recently told me: "We all know that a Labour government would invest more." The question, rather is a tactical one: when and how does Labour make the case for "good borrowing"?

Owing to the Tories' framing of the crash as the result of overspending by the last government, the party starts from a position of weakness. In private, Ed Miliband’s advisers argue that the voters are able to distinguish between borrowing to fund day-to-day spending and borrowing for investment, just as they distinguish between “borrowing to fund the weekly shop” and “borrowing for an asset like a house”. But the Labour leader is not yet prepared to make this case in public. Since an ill-fated interview last year on Radio 4’s The World at One, in which he refused eight times to admit that Labour would borrow more than the Conservatives, Miliband has focused deliberately on market reforms that would not cost government money: freezing energy prices, expanding use of the living wage and restructuring the banking system. When he has made promises that would require new funding, such as the construction of 200,000 homes a year by 2020, the question of borrowing has been deferred.

But sooner rather than later, the party will need to return to it. After the deluge of this winter, flood prevention would be a good place to start.

George Eaton is political editor of the New Statesman.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.