Jon Cruddas MP heads Labour's policy review. Photo: Getty
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How councils are already delivering the Cruddas agenda

If you want to know what a Miliband government might look like, you should start by paying a visit to your local town hall.

What does it mean to be a socialist in a shrinking state? The Labour Party comes a step closer to an answer today as Ed Miliband launches IPPR's Condition of Britain report, but the key themes of a new approach are already clear. In fact, they are already being implemented up and down the country by local authorities. If you want to know what a Miliband government might look like, you should start by paying a visit to your local town hall.

Councils have a tendency to lead the pack when it comes to government innovation. They invented public education and sanitation in the 19th century, the national health service in the 20th and now they are on the cusp of pioneering a new approach to government and welfare. This rapidly accelerated process of change is being driven by gigantic budget cuts - many councils will halve in size over the course of the current decade against a backdrop of rising demand for their services, especially social care.

So far, most councils have focused on ruthless pruning of staff and some restriction of services. But over the next few years many will launch into a radical programme of change that will confound both small state conservatives and big state leftists by showing that we can still have active and effective government with much less money. 

Neighbourhoods will be asked to help decide how to spend declining budgets for street cleaning, leisure and parks. Some leisure centres may be closed altogether and local people given subsidised gym memberships to their local Virgin Active. Face-to-face customer contact will disappear in some areas to be replaced with websites and carefully trained neighbours and shop workers.

The themes underpinning this change are precisely those that might inform a new settlement of the kind envisaged by Jon Cruddas. Councils are heavily shifting their services towards prevention rather than cure. Services are being reformed to keep old people living independently in their own homes rather than letting them languish in expensive and depressing care homes and hospitals. In some areas, councils will pay families and carers to build social support networks around young people with learning disabilities, reducing their lifetime cost to the public sector.

Councils are taking a much more active role in shaping the local economy to ensure that it creates fewer problems for the state to solve. This is partly about working together across conurbations such as Greater Manchester to identify growth industries and encourage the creation of middle income jobs. But it is also about interventions to give consumers better choices, ranging from bulk purchasing of energy and insurance to the creation of white good stores with cheap consumer credit and alternative payday lenders.

The public is also being asked to contribute more of its time to shaping and supporting public goods. In some areas they will be given control of parks and asked to maintain them. In others, they are already being asked to cook meals for neighbours and grit their own streets in the winter. The best metaphor I can find for this new model of government is the common; the idea that a place is a vital resource that business, households and government must all contribute to maintaining. 

There is no doubt that what is emerging in town halls is embryonic, messy and imperfect. That is to be expected. Councils are being forced into a new paradigm of government at breakneck pace. They are held back by very deep budget cuts, which raise very serious questions about whether some councils can survive in their current reform. No amount of reform will allow us to run social care on thin air. 

A Labour government in 2015 can fuel the local revolution by accepting recommendations from its policy commissions to devolve housing benefit, reduce limits of council borrowing, and by devolving big pooled budgets to fuel economic growth and closer working with the health service. We live in a time when the central progressive dilemma is how to decouple social progress from the act of spending public money. In local government we can see the future. In a few years, we will start to understand whether or not it works.

Simon Parker is director of the New Local Government Network

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Jeremy Corbyn challenged by Labour MPs to sack Ken Livingstone from defence review

Former mayor of London criticised at PLP meeting over comments on 7 July bombings. 

After Jeremy Corbyn's decision to give Labour MPs a free vote over air strikes in Syria, tonight's Parliamentary Labour Party (PLP) meeting was less fractious than it could have been. But one grandee was still moved to declare that the "ferocity" of the attacks on the leader made it the most "uplifting" he had attended.

Margaret Beckett, the former foreign secretary, told the meeting: "We cannot unite the party if the leader's office is determined to divide us." Several MPs said afterwards that many of those who shared Corbyn's opposition to air strikes believed he had mishandled the process by appealing to MPs over the heads of the shadow cabinet and then to members. David Winnick declared that those who favoured military action faced a "shakedown" and deselection by Momentum activists. "It is completely unacceptable. They are a party within a party," he said of the Corbyn-aligned group. The "huge applause" for Hilary Benn, who favours intervention, far outweighed that for the leader, I'm told. 

There was also loud agreement when Jack Dromey condemned Ken Livingstone for blaming Tony Blair's invasion of Iraq for the 7 July 2005 bombings. Along with Angela Smith MP, Dromey demanded that Livingstone be sacked as the co-chair of Labour's defence review. Significantly, Benn said aftewards that he agreed with every word Dromey had said. Corbyn's office has previously said that it is up to the NEC, not the leader, whether the former London mayor holds the position. In reference to 7 July, an aide repeated Corbyn's statement that he preferred to "remember the brilliant words Ken used after 7/7". 

As on previous occasions, MPs complained that the leader failed to answer the questions that were put to him. A shadow minister told me that he "dodged" one on whether he believed the UK should end air strikes against Isis in Iraq. In reference to Syria, a Corbyn aide said afterwards that "There was significant support for the leader. There was a wide debate, with people speaking on both sides of the arguments." After David Cameron's decision to call a vote on air strikes for Wednesday, leaving only a day for debate, the number of Labour MPs backing intervention is likely to fall. One shadow minister told me that as few as 40-50 may back the government, though most expect the total to be closer to the original figure of 99. 

At the end of another remarkable day in Labour's history, a Corbyn aide concluded: "It was always going to be a bumpy ride when you have a leader who was elected by a large number outside parliament but whose support in the PLP is quite limited. There are a small number who find it hard to come to terms with that result."

George Eaton is political editor of the New Statesman.