In this week’s New Statesman: Greece – A warning for Britain?

In a special report from Athens, Daniel Trilling explores the consequences of austerity in Greece. PLUS: The NS Leader and Rafael Behr on Osborne's Autumn Statement.

The NS Leader: The Chancellor is making growth less likely, not more

As yesterday’s Autumn Statement confirmed that George Obsorne’s economic programme has triggered negative growth and delayed the deficit recovery until at least 2018, the New Statesman’s leader demands an end to the Chancellor's destructive regime.

The results of Mr Osborne’s strategy were both predictable and predicted. In October 2009, when he was being hailed by much of the British press as the country’s economic saviour, the New Statesman warned that “the only economic plan he seems to have is for attempting to balance the books. He does not have a plan for growth. He has a plan for a lack of growth.” But Mr Osborne caricatured his opponents as “deficit deniers” and dismissed calls for a “plan B”, led by our economics editor David Blanchflower, as Keynesian dogma. He is now paying the price for doing so.

The Chancellor offered a series of familiar explanations for his failure – the eurozone crisis, higher oil prices and the slowdown in emerging markets – but the UK remains the only G20 country apart from Italy to have suffered a double-dip recession. With its own currency, its own independent monetary policy and the ability to borrow at historically low rates, Britain could and should be doing better. Four years on from the beginning of the crisis, GDP remains 3.1 per cent  below its pre-recession peak. In the US, by contrast, where the Obama administration maintained fiscal stimulus, it is 2.3 per cent above.

In light of top rate income tax cuts and a poverty inducing  1  per cent  raise in benefits levels, Osborne’s pledge of a “shared austerity” rings hollow:

In addition to promising sustained growth and deficit reduction, Mr Osborne vowed that the burden of austerity would be shared, a pledge encapsulated in the mantra “we’re all in this together”. His words were honourable. There are important political, social and economic reasons for ensuring that individuals contribute according to their means. But the Chancellor has consistently failed to make sure that they do. The cut in the top rate of income tax from 50p to 45p, worth an average £107,500 to the country’s 8,000 income-millionaires, will proceed as expected next April. At the same time, benefit levels will be raised by just 1 per cent, a real-terms cut in income for the UK’s poorest citizens, many of whom are already dependent on charity. As Daniel Trilling notes (in his report from Athens, also in this week's NS), one of the few growth industries in the UK, as in Greece, is food banks. The number of people reliant on them has risen from 26,000 in 2008 to 100,000, and is expected to reach 200,000 over the next year.

Daniel Trilling: A warning from Athens

In a special investigation this week, the New Statesman’s assistant editor and author of Bloody Nasty People: The Rise of Britain’s Far Right Daniel Trilling reports from the Greek capital. Trilling interviews politicians, activists, refugees and voters, and asks how the austerity measures in Greece are leading to the rise of fascism and the far-right Golden Dawn:

For now, mainstream politicians follow the same logic as in other countries when faced with a threat from the far right: they compete on its territory. The government’s most recent move on immigration, for instance, has been to suspend all applications for Greek citizenship. Since August, a major police operation has been in progress to round up undocumented migrants and put them in detention centres. Yet such moves have only further legitimised Golden Dawn, which now positions itself as the real defender of the Greek people against austerity, taking a strong anti-bailout line and staging “Greeks-only” food distribution, blood donations and soup kitchens.

He meets a member of the right-wing party who confirms its "National  Socialist" ideology:

Through an intermediary, I contact “John”, a member of Golden Dawn who would speak to me only on the condition of anonymity. Now 32 and working for a banking group in Athens, he joined the movement at 16, convinced that politicians had “betrayed” Greece over the territorial dispute with Turkey. He tells me he was attracted by the “total discipline” of the group. “There was mutual appreciation and, of course, respect towards higher-ranking members.” There were frequent meetings and talks aimed at “ideological orientation”, towards the ideas of what John describes as “National Socialism”. His main task, he says, was to spread these ideas among his friends and classmates, handing out fliers and selling copies of the party newspaper.

Because of family and work commitments, John is no longer an active member but he still votes for the party. What, I ask, would Golden Dawn do if it got into government? “We’ll do what others don’t dare . . . I think about how many times people have laughed at us [during election counts] – and now half of them feel intimidated and half consider us the only solution.”

He  goes on to note that  austerity has led to the rise of food banks in Britain, too:

A week after visiting the clinic in Elliniko, I go to see another project, supported once again by donations and staffed by volunteers. This time, it’s food, not medicine, to provide for those who are unable to feed themselves or their families. Staff tell me that they have been overwhelmed by donations from the local community: shoppers at the nearby supermarket drop by with anything from a few tins of tomatoes to whole carrier bags full of supplies.

However, this isn’t Greece. It’s London – just down the road from my house. Some 13 million people live below the poverty line in Britain and as austerity forces more out of work or on to part-time wages, a growing number of people are struggling to cover the basic necessities.

Since 2008, when 26,000 people used food banks, the number has soared: more than 100,000 used them between April and September this year and the Trussell Trust, which operates the largest network of food banks in the UK, estimates that 200,000 people will use them in the year to come.

Greece’s crisis may be acute but it is not unique. In Britain, its effects have so far been easier to hide, while outbreaks of dissent have been more spasmodic: the student occupations of 2010; the 2011 summer riots; last autumn’s Occupy movement. And fortunately, the far right is in decline, even though victim-blaming and xenophobia are rife in our media. None of this has to happen; but to stop it, we need each other.




George Eaton: Danielle Allen – Labour’s new heavyweight

Our Staggers editor George Eaton meets the Obama campaigner, amateur boxer and Ed Miliband’s newest policy adviser Danielle Allen. They discuss Allen’s social activism, racial segregation in the US, how she met Miliband and her big plans for turning Labour’s “one nation” into a “connected nation”.

On 27 November, while most of Westminster was preoccupied with the imminent publication of the Leveson report, a group of Labour MPs, think-tankers and academics gathered in a House of Commons committee room to listen to Allen deliver a seminar on the “connected society”. The following day, shortly after Prime Minister’s Questions, Ed Miliband met her to discuss how her ideas could aid his party’s renewal. “Your ‘one nation’ should also be a ‘connected nation’,” Allen told her audience at the Commons. But what is a “connected nation”? And why is Labour so intrigued by the concept?

...When I asked Allen for some examples of connected societies, she replied: “In the modern context we don’t really have any good examples. What we have are examples of failure, so one has to take the failures and from that point imagine the positive version.” Allen, who is mixed race, cited present-day racial segregation in the US as an “extreme” case of disconnection.

Allen believes the left’s focus on fiscal and monetary policy has obscured the role of social organisation in reducing inequality. It is easy to see why her conclusions appeal to the Labour leader. While pledging to narrow the gap between the rich and the poor, Miliband has emphasised that there will be less money available for redistributive measures such as tax credits. “A lot of progressive politics is focused on compensatory or remedial approaches. What I am thinking about is how to solve resource situations so that the outcomes are more egalitarian in the first place,” Allen said, welcoming Labour’s recent emphasis on “predistribution”.

...“It takes work,” Allen said. “I don’t think it’s going to happen spontaneously. It’s about a mixture of incentive, persuasion and regulation. It requires conscious thought about the concept.” And she maintained that it was a task only Labour could accomplish. “Building a connected society is about empowering the disempowered – and that has to be a cause of the left.”


Rafael Behr: George Osborne has strewn the government’s path with landmines

In his Politics Column on the Autumn Statement , Rafael Behr points out that the government’s dignity rests upon avoiding the smell of “burning rubber” that hung about after the U-turns of the last Budget report. He continues:

Yet the whole thing was an epitaph for buried economic promises. None of the things that the Chancellor said would happen to growth, to the deficit or to the national debt is happening as forecast. His plan was to fix the public finances and restore prosperity before an election in 2015. Now he pleads for time, like a cowboy builder, surrounded by the rubble of a bodged repair, explaining to the appalled homeowner that the job is more complicated than it looked.

The policy  makers  at No 10 now turn their attention to winning back the middle classes , merging their electoral agenda with Labour’s in an appeal to the “squeezed middle”:

Despite much polarised public polemicising, Labour and the Tories are converging on the same electoral terrain. Senior strategists in both parties are scouring data from a new online tool that maps public anxiety about household finances and confidence in the future. They know the election can be won with the right message for voters who feel pressed for time, strapped for cash and ripped off on all sides.

The Chancellor glosses over the fact that working people feel the brunt of his benefit cuts as much as the jobless. In so doing, he has strewn the government’s path ahead with policy landmines – nasty fiscal traps that will detonate under the voters who already suspect the Tories are not on their side. They are unlikely to be persuaded by the Chancellor’s occasional, ostentatious displays of charity for the many and confiscation from the few.


Steven Poole: Invasion of the cyber hustlers

In this week’s NS Essay, author Steven  Poole lambasts the upsurge in “cybertheorists”, “cyberswamis” and “internet gurus” – prophets of the web who often hand down garbled predictions to everyday users, while giants  such as  Google and Apple jealously guard the secrets of web profitability:

Like every other era, the internet age has its own class of booster gurus. They are the “cybertheorists”, embedded reporters of the social network, dreaming of a perfectible electronic future and handing down oracular commandments about how the world must be remade. As did many religious rebels before them, they come to bring not peace, but a sword. Change is inevitable; we must abandon the old ways. The cybertheorists, however, are a peculiarly corporatist species of the Leninist class: they agitate for constant revolution but the main beneficiaries will be the giant technology companies before whose virtual image they prostrate themselves.

 ... The cyber-credo of “open” sounds so liberal and friendly that it is easy to miss its remarkable hypocrisy. The big technology companies that are the cybertheorists’ beloved exemplars of the coming world order are anything but open. Google doesn’t publish its search algorithm; Apple is notoriously secretive about its product plans; Facebook routinely changes its users’ privacy options. Apple, Google and Amazon are all frantically building proprietary “walled-garden” content utopias for profit.


In the Critics

Highlights from the critics this week include:

Sarah Churchwell on The Redgraves: a Family Epic by Michel Spoto.

Helen Lewis on Grace: a Memoir by the creative director of US Vogue, Grace Coddington

Claire Lowdon on Infrared by Nancy Huston, the novel that this week won Literary Review’s Bad Sex in Fiction award

“The Coup”, a short story by Tom Rachman

Ryan Gilbey on Seven Psychopaths, directed by Martin McDonagh

Rachel Cooke on Christmas television adverts

and much more. Read all about it in our "In the Critics" feature here.


Purchase a copy of this week's New Statesman in newsstands today, or online at:


Charlotte Simmonds is a writer and blogger living in London. She was formerly an editorial assistant at the New Statesman. You can follow her on Twitter @thesmallgalleon.

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How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.