Ed Miliband speaks at the Scottish Labour conference on March 21, 2014 in Perth. Photograph: Getty Images.
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Miliband defines his programme: big reforms, not big spending

What the Labour leader will tell his party's National Policy Forum today.

For Ed Miliband, his speech at Labour's National Policy Forum today is a chance to offer his clearest account yet of the intellectual course he has charted in the last four years. The central message of his address will be that Labour now stands for "big reforms, not big spending". This is both because only far-reaching structural changes to the economy will resolve the problems demonstrated by the financial crisis and the collapse in living standards, and because the deficit the party will inherit means the old answer of hiking public spending is no longer available. 

He will devote a significant section of the speech to outlining Labour's commitment to fiscal discipline, a subject on which some shadow cabinet members believe he has said too little. As he will remind delegates, Labour has pledged to "get the national debt falling as soon as possible in the next parliament" and "deliver a surplus on the current budget". "For all of the cuts, for all of the pain under this government, Britain still has a deficit to deal with and a debt to pay down," he will say. This is an important attempt to manage expectations and to remind NPF delegates (party activists and trade unions) that the generous spending settlements of the past will not be possible. As the experience of François Hollande demonstrates, centre-left governments can't afford to raise false hopes of an end to austerity. 

But the positive conclusion he will draw is that these fiscal constraints mean Labour has to be more, not less, radical in reforming the economy. It is, in a word, predistribution (one that unsurprisingly won't appear in his speech): seeking to achieve more equal outcomes before the government collects taxes and pays out benefits by rewiring the market itself. To this end, Miliband has promised to significantly increase the minimum wage, to end "exploitative" zero-hours contracts, to freeze energy prices, to cap rent increases, to devolve £30bn of funding to city regions (a dramatic break with Labour's centralising tendencies), to create two new "challenger" banks and to introduce worker representation on remuneration committees - radical proposals that do not cost government money. Another word for it, as a source close to Jon Cruddas told me is "Milibandism".

Ahead of Tony Blair's speech on Monday, to mark the 20th anniversary of his election as Labour leader, he will emphasise that he has "moved on from New Labour", but also that he is "not going back to Old Labour". A Labour spokesman told me: "This is not about looking back, this is an Ed Miliband model for 2015, it's not a 1997 model, it's not a 1975 model either."

Miliband will add: "Our programme for government is more radical and more ambitious in the change we seek, crafted for the age we are living in and the challenges we face. Moving on from a time when rising inequality was just a fact of life – or when we acted as if there is nothing we could do about markets that aren’t fair or aren’t working. Not seeing big spending as the answer. Not going back to make do and mend." 

Labour strategists are keen to contrast this rich agenda with what they regard as David Cameron's intellectual exhaustion. One told me: "They [the Tories] have run out of ideas, they have nothing left but a stale form of Thatcherism, which just wants to roll back the state in the hope of being able to offer tax cuts at some point." 

Miliband's bet is that his radical programme will resonate with an alienated electorate longing for answers to the living standards crisis. But Tories will urge caution, arguing that voters can't afford to "hand the keys back" to Labour ("the people who crashed the car") when the recovery remains fragile and the deficit is still high (Conservative strategists rightly regard the message that "the job is not done" as crucial to victory). Which of these two narratives best reflects the country's mood will determine the outcome in May 2015. 

George Eaton is political editor of the New Statesman.

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Calum Kerr on Governing the Digital Economy

With the publication of the UK Digital Strategy we’ve seen another instalment in the UK Government’s ongoing effort to emphasise its digital credentials.

As the SNP’s Digital Spokesperson, there are moves here that are clearly welcome, especially in the area of skills and a recognition of the need for large scale investment in fibre infrastructure.

But for a government that wants Britain to become the “leading country for people to use digital” it should be doing far more to lead on the field that underpins so much of a prosperous digital economy: personal data.

If you want a picture of how government should not approach personal data, just look at the Concentrix scandal.

Last year my constituency office, like countless others across the country, was inundated by cases from distressed Tax Credit claimants, who found their payments had been stopped for spurious reasons.

This scandal had its roots in the UK’s current patchwork approach to personal data. As a private contractor, Concentrix had bought data on a commercial basis and then used it to try and find undeclared partners living with claimants.

In one particularly absurd case, a woman who lived in housing provided by the Joseph Rowntree Foundation had to resort to using a foodbank during the appeals process in order to prove that she did not live with Joseph Rowntree: the Quaker philanthropist who died in 1925.

In total some 45,000 claimants were affected and 86 per cent of the resulting appeals saw the initial decision overturned.

This shows just how badly things can go wrong if the right regulatory regimes are not in place.

In part this problem is a structural one. Just as the corporate world has elevated IT to board level and is beginning to re-configure the interface between digital skills and the wider workforce, government needs to emulate practices that put technology and innovation right at the heart of the operation.

To fully leverage the benefits of tech in government and to get a world-class data regime in place, we need to establish a set of foundational values about data rights and citizenship.

Sitting on the committee of the Digital Economy Bill, I couldn’t help but notice how the elements relating to data sharing, including with private companies, were rushed through.

The lack of informed consent within the Bill will almost certainly have to be looked at again as the Government moves towards implementing the EU’s General Data Protection Regulation.

This is an example of why we need democratic oversight and an open conversation, starting from first principles, about how a citizen’s data can be accessed.

Personally, I’d like Scotland and the UK to follow the example of the Republic of Estonia, by placing transparency and the rights of the citizen at the heart of the matter, so that anyone can access the data the government holds on them with ease.

This contrasts with the mentality exposed by the Concentrix scandal: all too often people who come into contact with the state are treated as service users or customers, rather than as citizens.

This paternalistic approach needs to change.  As we begin to move towards the transformative implementation of the internet of things and 5G, trust will be paramount.

Once we have that foundation, we can start to grapple with some of the most pressing and fascinating questions that the information age presents.

We’ll need that trust if we want smart cities that make urban living sustainable using big data, if the potential of AI is to be truly tapped into and if the benefits of digital healthcare are really going to be maximised.

Clearly getting accepted ethical codes of practice in place is of immense significance, but there’s a whole lot more that government could be doing to be proactive in this space.

Last month Denmark appointed the world’s first Digital Ambassador and I think there is a compelling case for an independent Department of Technology working across all government departments.

This kind of levelling-up really needs to be seen as a necessity, because one thing that we can all agree on is that that we’ve only just scratched the surface when it comes to developing the link between government and the data driven digital economy. 

In January, Hewlett Packard Enterprise and the New Statesman convened a discussion on this topic with parliamentarians from each of the three main political parties and other experts.  This article is one of a series from three of the MPs who took part, with an  introduction from James Johns of HPE, Labour MP, Angela Eagle’s view and Conservative MP, Matt Warman’s view

Calum Kerr is SNP Westminster Spokesperson for Digital