Ed Miliband. Photo: Getty
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While the Tories claim that growth is back, Ed Miliband will seize the Inequality Moment

Discussion of the gap between rich and poor has gone mainstream.

In autumn 2003, a new class called “What’s Left? The Politics of Social Justice” began at Harvard University. The visiting lecturer played a video of a Newsnight interview with Tony Blair in the run-up to the 2001 election. In the clip, Jeremy Paxman asked the then prime minister six times whether the gap between rich and poor mattered – and six times he dodged the question. “It’s not a burning ambition for me to make sure that David Beckham earns less money,” was one response.

The lecturer was Ed Miliband, then a 33-year-old special adviser in Blair’s government, on a sabbatical in the US. Inequality bothered Miliband much more than his boss. In June 2013, the Institute for Fiscal Studies concluded that between 1997 and 2010, “Those right at the top saw their incomes increase very substantially with the result that… overall inequality nudged up slightly.” A friend of Miliband’s from his Harvard days told me that the failure to tackle the gap between the rich and the rest was “a key source of his dissatisfaction with Blair and New Labour” during this period.

More than a decade later, the leader of the Labour Party believes that “tackling inequality is the new centre ground of politics”, to quote from his Hugo Young Lecture on 10 February. His closest adviser, the academic and peer Stewart Wood, leads the charge on inequality inside Miliband’s office. “Ed’s concern to stop Britain continuing down the path of growing inequality, to the detriment of social justice and our economic health, will be central to any government that he leads,” Wood tells me.

But aren’t all Labour leaders – with the exception of Blair and maybe Gordon Brown – concerned with the gap between rich and poor? Perhaps. However, the difference is that inequality is no longer a niche issue.

Forget Occupy Wall Street – how about the new mayor of New York, Bill de Blasio, elected on a populist pledge to tackle the Big Apple’s “tale of two cities”? Or the new darling of the US Democratic Party, Senator Elizabeth Warren of Massachusetts, who has called for a minimum wage hike to “stop income inequality in America”? Or even the US president? In a speech in December, Barack Obama called the income gap “the defining challenge of our time”.

Listen also to the words of the Pope. “While the earnings of a minority are growing exponentially, so, too, is the gap separating the majority from the prosperity enjoyed by the happy few,” the pontiff wrote in November. Then there’s the IMF, which said in February that inequality hinders growth.

Miliband invoked both de Blasio and the Pope in his Hugo Young Lecture; he often cites their names and Warren’s in private as well. “Whose recovery is this?” has replaced “Too far, too fast” as the economic mantra of choice in his office. Miliband believes the paradigm has shifted. The public is fed up with the rise and rise of the super-rich – the 1 percenters – at the expense of everyone else. Consider the polling: 74 per cent of voters believe the gap between rich and poor is widening (ComRes); 60 per cent say the Autumn Statement was good for “rich people”, compared to just 21 per cent who say it was good for “people like me” (Ipsos MORI); and a majority of voters (64 per cent) think company bosses shouldn’t be paid in excess of ten times more than their lowest-paid employees (Survation).

Yet, between 1985 and 2008, the top 10 per cent went from receiving incomes that were eight times higher than the bottom 10 per cent to incomes that were 12 times higher. According to the High Pay Centre, the chief executives of Britain’s biggest companies earned more money in the first three days of the year than the average worker will make over 12 months.

On 10 March, Capital in the 21st Century, by the French economist Thomas Piketty, is published in English. Described as “one of the watershed books in economic thinking” by the World Bank’s Branko Milanovic, it argues that the main driver of soaring inequality – the tendency of returns on capital to exceed the rate of economic growth – is hard-wired into modern capitalism and threatens to undermine modern democracy. The author’s solution? A global wealth tax.

Such utopian thinking won’t help Miliband but to pretend that Labour policies – such as a levy on bankers’ bonuses, a 50p top rate of tax, a mansion tax and a living wage – won’t make a dent in income inequality is disingenuous. Wood, a fan of the book, says: “We must respond to [Piketty’s] challenge with ambition and imagination, not with pessimism.” Labour, he tells me, “needs to set itself the task of reforming the way our economies work so that higher productivity and lower inequality go together”.

This isn’t just about economics. The politics matter, too. Pledging to tackle inequality – within the rubric of “Whose recovery is this?” – helps Labour neutralise the positive Tory narrative of “Growth is back”. Crucially, it offers Miliband his own brand of progressive populism to challenge the right-wing, anti-welfare populism of the Conservatives. This is the Inequality Moment. Yet the Tories, with their historic aversion to any mention of the “I” word, will struggle to answer the question: “Whose recovery is this?” Miliband’s calculation is that voters won’t. 

Mehdi Hasan is a contributing writer for the New Statesman and the political director of the Huffington Post UK, where this column is crossposted

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 05 March 2014 issue of the New Statesman, Putin's power game

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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

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

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