Ed Miliband speaks at the Scottish Labour conference on March 21, 2014 in Perth. Photograph: Getty Images.
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Stuck on a burning platform – and with no money to give away – Labour is turning radical

In an age of fiscal famine, the tax and spend policies of the past are no longer an option.

When Conservative focus groups were asked before the last general election to select the picture that best represented Labour, they typically chose one of a lazy slob guzzling a beer while watching daytime TV. Four years later, the image persists. Lord Ashcroft’s new focus groups in Thurrock (Labour’s number two target seat) and Halifax found that this indolent character is still thought to epitomise the party. “Labour encourage that kind of behaviour. They make it too easy for people not to work and earn their money,” said one voter.

It is a charge that stings. The frequency with which shadow cabinet ministers assert that Labour is the “party of work” is testimony to how successful the Tories have been in branding it as the “party of welfare”. Ed Miliband’s own pollster James Morris told a Trades Union Congress meeting last year: “The challenge is very severe . . . if you look at politically salient target groups, those numbers get worse.” For those who celebrate Labour as the party of the Beveridge settlement, it is an unsettling reality. “If you’d said at the beginning of this parliament that the Tories would lead us on welfare, you would have been put in a straitjacket,” Labour’s former social security minister Frank Field told me.

Miliband’s speech on 19 June to mark IPPR’s Condition of Britain report was an attempt to turn this political supertanker around. He announced that Labour would abolish Jobseeker’s Allowance for 18-to-21-year-olds without Level 3 qualifications and replace it with a means-tested youth allowance conditional on recipients being in training. There would be winners from the policy: those who spend over 16 hours a week in further education would no longer be denied state support. There would also be losers. With the exception of some vulnerable groups, it would no longer be possible for school leavers to start their adult lives on benefits.

Labour strategists regarded Miliband’s address as an opportunity to change the conversation after a week defined by the fallout from his promotion of the Sun’s World Cup edition, Tony Blair’s bellicose pronouncements on the Middle East and ill-disguised tensions among shadow cabinet members. After Monday’s regular meeting of the Parliamentary Labour Party, Harriet Harman was heard to berate Douglas Alexander over the lack of women in Labour’s inner circle.

In these moments of drift, anxiety spreads about the likely outcome in May 2015. One Labour MP told me this week that he expects the Conservatives to win a majority of 10-20 seats. Few in Westminster regard that as conceivable, but it is a sign of how pessimism has entered the party’s bloodstream.

IPPR’s Condition of Britain report, consciously modelled on its influential 1994 Commission on Social Justice, had been 18 months in the making. But rarely had Miliband needed its message of national renewal more. After nearly a year spent lamenting the “cost-of-living-crisis”, with what many fear are diminishing returns, the Labour leader has begun to shift gears.

Confronted by the prospect of another parliament of austerity, the party is becoming more, rather than less, radical. Labour's policy review co-ordinator, Jon Cruddas, cites the “Burning Platform” email sent to Nokia staff in 2011 by the company’s then chief executive, Stephen Elop. Elop wrote of a man who woke to find the oil platform he was sleeping on engulfed in flames. In desperation, he jumped 30 metres into the freezing waters below. After his rescue, he reflected how the fire had caused him to act in a way he never previously thought possible. Faced with the “burning platform” of a £107bn budget deficit, Labour, too, is changing.

In an age of fiscal famine, the tax and spend policies of the past are no longer an option. To deliver progressive reforms, the state itself will need to change. In the next month, Andrew Adonis’s growth review for the party and the final report of the Local Government Innovation Taskforce will propose the biggest devolution of power in England for more than a century. Miliband has already committed Labour to transferring £20bn of funding to local councils, but Cruddas’s outriders are hopeful the final figure will be closer to £70bn. Responsibility for housing benefit, transport infrastructure, the Work Programme, and apprenticeships and skills will be delegated entirely to city and county regions. When Leviathan’s coffers run dry, the one thing that Labour can afford to give away is power.

If Labour’s problem is that it is viewed as the party of welfare, the Tories’ is that they are viewed as the party of the wealthy. In his conversation with the Miliband strategist and Labour peer Stewart Wood at parliament this week, the pin-up economist Thomas Piketty noted that the coalition government had introduced a super-rate of stamp duty on properties worth more than £2m. It has also raised capital gains tax from 20 per cent to 28 per cent and retained a top rate of income tax higher than that seen for all but one of New Labour’s 156 months in office. But, like Gordon Brown, on those occasions when he has redistributed, George Osborne has done so by stealth. The Tories missed their chance for a “Clause IV moment” on inequality when David Cameron vetoed a mansion tax on the grounds that “our donors will never put up with it”.

Both Labour and the Tories present themselves as parties for “the many, not the few”. But the voters have never been less convinced. An ICM poll on 17 June put combined support for the two parties at just 63 per cent (32 per cent and 31 per cent) – the lowest recorded figure in ICM’s history. Unless one is able to break the deadlock, the danger is that the country, like a lazy slob on the sofa, will be condemned to drift and decline. 

George Eaton is political editor of the New Statesman.

This article first appeared in the 18 June 2014 issue of the New Statesman, Islam tears itself apart

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

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