How Labour can counter the populist threat

The party should radically devolve power and budgets to bridge the gap between "representative" and "responsible" government.

Ed Miliband’s determination to end "machine politics" and reenergise representative party politics comes at a time when the UK’s established democratic system is showing signs of distress: from the movements for Scottish independence and the UK to leave the European Union, to UKIP’s steady rise and the electoral abstention of large swathes of working class and young voters. Political parties like Labour find it increasingly difficult to represent the people that elect them as well as govern responsibly in an era of increasing complexity.

The late political scientist Peter Mair documented this dilemma as that of an acutely growing gap between "representative" and "responsible" government, predicting that it would be one of the principal sources of democratic malaise that confront western democracies. Traditional political parties were once more representative, giving them the legitimacy to govern responsibly on behalf of a given electoral constituency. However, structural changes and growing complexity – globalisation, European integration, the rise of technocracy – have moved parties on from their representative role, enhancing, or forcing them to enhance, their responsible governing role. This refers to the process of being prudent and consistent in government, as well as being accountable and conforming to external constraints and legacies.

Mair’s key point is that demands for "responsiveness" and "responsibility" are increasingly at odds with one another, and parties’ capacity to reconcile this tension has been undermined by their "professionalisation" and resulting decline as representative organisations. Populists have been quick to capitalise on this, positioning themselves as the "tribunes of the people".

So how do mainstream parties square this need for complex governing structures and the simultaneous demand for a sense of simplicity, belonging and engagement – the need for cold technocratic speak and emotive "popular" story telling? Two areas for improving representational politics in the UK should be explored and driven-forward.

The first is the devolution of power and a more fiscally federal model for the UK – one of the most centralised states in the OECD.  The coalition’s City Deals are a start, but a Labour government can go much further in giving city-regions and local actors the tools and incentives to shape their affairs and tackle regional and sectoral imbalances in the UK economy. The recent Centre for Cities report highlighted the overwhelming dominance of London. Is it a coincidence that the cities of Belfast and Cardiff come first and second in a league table of successful city regions in the recession? Devolution deals with the Welsh and Northern Irish assemblies appear to have incentivised dynamic collaboration between businesses, universities and devolved government. Scotland is also pushing for more movement in this direction (Edinburgh was second to London in creating private sector jobs), along with England’s core cities and key cities.  

This territory is interesting when applied to the populist phenomenon – as well as countering some of the socio-economic drivers of populism, an agenda which gives voice and levers to local communities and cities also can have significant political and cultural benefits.

The second area is a new politics of institutional creation and reform. The traditional political party is dying – literally. Politics thus needs to find new ways of opening up and engaging with people. This covers giving people greater say in choosing their democratic representatives, rebalancing the scale of career versus non-career politicians, and opening the door to more civilised and consensual politics. But it also goes much further: individualism, consumerism and immigration have all eroded solidaristic models of the past. As Matthew Taylor argues, the starting point must not be on applying emergency treatment to a broken model, but on "supporting a new set of institutions from the bottom-up to tap into the emergent individualism of Europe’s people, particularly the young…This individualism largely rejects hierarchical paternalism and mass solidarity in favour of a philosophy of self-help and social enterprise underpinned by fast forming and reforming networks of interest."

This point is consolidated by Moisés Naím’s analysis on the increasingly hamstrung nature of top-down legislative power: he points out that in 30 of the 34 countries of the OECD, the head of state is opposed by a parliament controlled by the opposition.

The rise of populism can be seen as a corrective if political parties see it as a signal to  bridge the gap between "representative" and "responsible" government.  Indeed an important question, which goes to the heart of this dilemma, is whether such reforms to strengthen the responsiveness of policymaking would actually lead to a healthier and better democracy.

These questions are further complicated by the extremely low standing of elites and the bankruptcy of economic orthodoxy which prevailed over the last three decades. As Tim Bale writes, centre-left parties like Labour have the difficult task of finding a "penchant for populism" on the economy to gain a hearing and win elections. This needs to be balanced with the rebuilding of credibility and reputation for economic competence as well as a programme for governing responsibly. There also needs to be a concerted recognition of the non-economic or political drivers of populism: with politicians developing responses to popular concerns over culture, identity and community in an age of increasing insecurity.

All in all rising levels of democratic stress and the changing nature of power structures look unlikely to be kind to parties and elite institutions that stand still. Ignoring the populist signal is a dangerous game. 

Michael McTernan and Claudia Chwalisz lead the new Policy Network and Barrow Cadbury Trust project on ‘Understanding the Populist Signal’. The project will look at political renewal in populist times. The first event will be held in London on 6 February 

Nigel Farage canvasses for UKIP's local candidate Glyn Wright in Salford on September 30, 2013. Photograph: Getty Images.
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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.”