The Crewe branch of the Co-operative Bank. Photograph: Getty Images.
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The Co-operative needs to set a higher standard

An open letter to outgoing chief executive Euan Sutherland.

Dear Mr Sutherland,

Congratulations on your resignation! If you do the honourable thing and leave without taking a pay-off, you could save Co-operative members like myself £3.6m in your salary alone over night - an impressively efficient move. 

I know your chair said that your pay-out was what other "comparable companies" offer, but really, most people join the Co-op because it is not a comparable company. At a time when the British public have spent billions bailing out mainstream banks, we kind of wanted something... different?

I know you were also fuming with how your pay was leaked and by the public outrage that has followed - particularly from Co-op members and candidates like myself - but you of all people should know that members are supposed to participate and hold executives to higher standards. That again is kind of the point of being a Co-operative. Plus, we were victorious. It seems that, unlike other banks, members have actually succeeded in removing you when you tried to get paid millions without actually delivering any results. 

Yes, the Co-op needs reform. But our bank didn't fail because it didn't pay its top people enough - it failed because it wasn't co-operative and accountable enough. More transparency and power to members would have dislodged the appalling Mr Flowers long ago. A bigger Co-operative movement would allow a greater and more talented range of board members to choose from. Better worker representation as well as customer representation might help find alternatives to laying off 5,000 staff as in your plan. Similarly, if you'd asked us about boardroom pay in this upcoming survey of yours, and listened, we might not be in this pretty pickle. 

Right now, the Co-op bank - just like all banks and the rest of the country - has a choice. Are we going to carry on with business as usual, handing out huge cheques regardless of success until the next crash, or are we going to fundamentally reform our banking system? It's something George Osborne should think about in the Budget next week, but don't worry, he won't mention it. 

But Co-operators will. Because "The Co-op" is more than just a nice brand. Its a set of ideas and values. We believe in creating a robust and local banking system that is accountable to local people. We believe that participation and shared ownership, not big bonuses, is what leads to better banking. Co-operators work together to be radical, not make isolated decisions to preserve hierarchies between the elites and the rest. We believe it's a time for boldness, not swallowing what failed in 2008.

Of course if you don't believe any of this, then maybe the Co-op isn't for you anyway. But don't worry - sadly you'll still find plenty of banks where you'll fit right in. 

Sincerely,

Rowenna Davis 

Co-operative Labour Candidate for Southampton Itchen

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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Metro mayors can help Labour return to government

Labour champions in the new city regions can help their party at the national level too.

2017 will mark the inaugural elections of directly-elected metro mayors across England. In all cases, these mayor and cabinet combined authorities are situated in Labour heartlands, and as such Labour should look confidently at winning the whole slate.

Beyond the good press winning again will generate, these offices provide an avenue for Labour to showcase good governance, and imperatively, provide vocal opposition to the constraints of local government by Tory cuts.

The introduction of the Mayor of London in 2000 has provided a blueprint for how the media can provide a platform for media-friendly leadership. It has also demonstrated the ease that the office allows for attribution of successes to that individual and party – or misappropriated in context of Boris Bikes and to a lesser extent the London Olympics.

While without the same extent of the powers of the sui generis mayor of the capital, the prospect of additional metro-mayors provide an opportunity for replicating these successes while providing experience for Labour big-hitters to develop themselves in government. This opportunity hasn’t gone unnoticed, and after Sadiq Khan’s victory in London has shown that the role can grow beyond the limitations – perceived or otherwise - of the Corbyn shadow cabinet while strengthening team Labour’s credibility by actually being in power.

Shadow Health Secretary and former leadership candidate Andy Burnham’s announcement last week for Greater Manchester was the first big hitter to make his intention known. The rising star of Luciana Berger, another member of Labour’s health team, is known to be considering a run in the Liverpool City Region. Could we also see them joined by the juggernaut of Liam Byrne in the West Midlands, or next-generation Catherine McKinnell in the North East?

If we can get a pantheon of champions elected across these city regions, to what extent can this have an influence on national elections? These new metro areas represent around 11.5 million people, rising to over 20 million if you include Sadiq’s Greater London. While no doubt that is an impressive audience that our Labour pantheon are able to demonstrate leadership to, there are limitations. 80 of the 94 existing Westminster seats who are covered under the jurisdiction of the new metro-mayors are already Labour seats. While imperative to solidify our current base for any potential further electoral decline, in order to maximise the impact that this team can have on Labour’s resurgence there needs to be visibility beyond residents.

The impact of business is one example where such influence can be extended. Andy Burnham for example has outlined his case to make Greater Manchester the creative capital of the UK. According to the ONS about 150,000 people commute into Greater Manchester, which is two constituency’s worth of people that can be directly influenced by the Mayor of Greater Manchester.

Despite these calculations and similar ones that can be made in other city-regions, the real opportunity with selecting the right Labour candidates is the media impact these champion mayors can make on the national debate. This projects the influence from the relatively-safe Labour regions across the country. This is particularly important to press the blame of any tightening of belts in local fiscal policy on the national Tory government’s cuts. We need individuals who have characteristics of cabinet-level experience, inspiring leadership, high profile campaigning experience and tough talking opposition credentials to support the national party leadership put the Tory’s on the narrative back foot.

That is not to say there are not fine local council leaders and technocrats who’s experience and governance experience at vital to Labour producing local successes. But the media don’t really care who number two is, and these individuals are best serving the national agenda for the party if they support A-listers who can shine a bright spotlight on our successes and Tory mismanagement.

If Jeremy Corbyn and the party are able to topple the Conservatives come next election, then all the better that we have a diverse team playing their part both on the front bench and in the pantheon of metro-mayors. If despite our best efforts Jeremy’s leadership falls short, then we will have experienced leaders in waiting who have been able to afford some distance from the front-bench, untainted and able to take the party’s plan B forward.