In this week’s New Statesman: Dinosaurs vs modernisers

David Skelton: what the conservative modernisers must do next. PLUS: George Eaton on council tax reform, Rafael Behr on Miliband and the EU, and Ian Sansom pens an ode to paper.

David Skelton: What’s wrong with the Tory Party?

In our cover story this week, David Skelton – director of Policy Exchange – argues that David Cameron’s “modernisation” project did not go far enough. To return to power and win a majority in parliament, the Conservatives must learn to reconnect with the north and ordinary working voters. He describes how the public thinks that the Tories are “out of touch” and are “a party for the rich” – and outlines what they should do next.

When he became leader of the Tory party, David Cameron said that it had to “change to win”. He noted that the Tories had been stuck on about 33 per cent of the vote for many years. And that is exactly where they are in the polls now. Cameron has rescued his party from the scrapheap once, but his modernisation is still a job half done.

Last year, Policy Exchange and YouGov carried out a major polling exercise about what voters want, and there are lessons from it for all the main parties. For the Conservatives, it highlights four (overlapping) ways in which the party needs to do better:

First, they need to do better outside their southern heartland . . .

Second, they need to do better in urban areas . . .

Third, the Conservatives do badly among ethnic minorities . . .

Finally, the Conservatives need to do better among ordinary working people. Polls show two-thirds of voters agree that “the Conservative Party looks after the interests of the rich, not ordinary people”.

Skelton argues that cutting the cost of living – particularly housing costs – is the best way for the party to win back the working-class vote:

Driving down the cost of living should be one of the core ideas of Tory modernisers. Cutting tax for low earners, reducing the cost of living and reducing unemployment are the main ways it could shake off the tag.

The biggest cost of all for most people is housing. Rents are still rising sharply, and house prices have risen three times faster than wages over the past decade. The average age of a first-time buyer is now 37. Reviving housebuilding is also crucial to getting the economy moving.

We could also learn from the Continent. In France and Germany people have the right to buy a plot of land on which to build a house. For the millions of people priced out of owning their own home, a “right to build your own house” could have the same political impact as the “right to buy” did in the 1980s.

 

Rafael Behr: Ed Miliband is about to have the burden of defending the EU foisted on him. Is he ready?

In the Politics Column this week, Rafael Behr writes on Ed Miliband and the EU. The Labour leader has been called “perhaps Labour’s most pro-European leader ever”; he has no intention of matching the Prime Minister’s commitment to a referendum on whether Britain should stay in the EU. But can Miliband afford to become “Britain’s lead advocate for the status quo” when even “the mistiest-eyed Europhile” can see that the EU needs reform? Read his column in full on the NS website now.

 

George Eaton: Is this the coalition’s poll tax moment?

In Observations, George Eaton writes that the coalition’s reform of the council-tax system risks provoking a poll-tax-style revolt. The government has cut the fund for Council Tax Benefit by 10 per cent and millions of households will be forced to pay the charge for the first time.

Because the government has stipulated that the state must maintain current levels of support for pensioners, the burden will fall entirely on the working-age poor, many of whom are already facing large cuts to their benefits. Read his piece in full on the NS website now.

 

Ian Sansom: Bury me in paper

In the NS Essay this week Ian Sansom, author of Paper: an Elegy, writes a sweeping ode to the ‘Zelig of all materials’, and asks how printed matter will fare in the digital age. He begins:

Let me tell you a story. It’s a story that has not been told enough, and that we need to remind ourselves of as we grow ever further from its simple meanings and its truth. It is a creation story…

The story begins around 105AD with our eunuch, Cai Lun, a court official of the Han Dynasty, reporting on an invention that used mashed-up tree bark to produce an extraordinary material. Macerated bark fibres, says Cai Lun, are being mixed with water in a vat, into which a mesh or mould is dipped and from which the excess liquid is drained; the resulting pulpy mass is then hung to dry. This thing, this thin white precious thing, is – of course! – paper. And the story paper tells is the story of civilisation.

As we are weighed down with our ever-proliferating items of corporatised, licensable digital kit, and become ever more like anthro-info-conduits – walking, talking human slurry pits of undigested data – it is often easy to forget that paper was and is and is likely to remain the most ubiquitous, the most useful and also the most easily recyclable of man-made communication devices. Indeed, paper is still the ancient communication device that all modern communication devices seek, pathetically, to emulate: cheap to make and easy to inscribe; durable, readable, portable, disposable; the screen as the ultimate page.

But that is not all. Paper is and always has been more than just a medium for commu­nication. It’s more than just the archetypal data storage system. It has a much darker, stranger, more profound history. It performs numerous other obvious and important roles in our lives, roles that our tablets ande-readers and smartphones can’t even begin to emulate or adopt. What is the biggest difference between an iPad and a notepad? Honestly? Seriously? You can’t wipe your arse with an iPad – not yet. Paper still reaches the parts that other products cannot reach.

 

ELSEWHERE IN THE MAGAZINE:

 

Mark Leonard: The affluence trap

Our reporter at large Mark Leonard writes an extended report on the new China, transformed by wealth and social upheaval. We used to think that as the Chinese grew richer they would become more like us in the west. But now, at the peak of unprecedented growth in China, internal disputes are stirring. What are the consequences for the country and the world? Leonard writes:

For most of the past 30 years, China’s leaders have been kept awake at night by worries about their country’s poverty and the problems of a socialist economy. Today, it is China’s affluence and the problems of the market that are causing sleepless nights . . .

Last year began with a series of powerful signals of change. In February, the World Bank and the Chinese Development Research Centre released a report on the country in 2030, calling for a wave of market reforms; in March, a village in Guangdong was allowed to hold an election, having ousted officials suspected of selling off communal land at artificially low prices . . .

Since the global financial meltdown in 2008, China’s intellectuals have diagnosed a crisis of success. Each of the three goals of Deng’s era – affluence, stability and power – is seen as the source of new problems... China 3.0 will be defined by a search for solutions to these three crises.

Laurie Penny: In the red

Laurie Penny writes this week about the fallout from the Leveson inquiry, the Hacked Off report, and why “good journalism is as necessary as ever”:

The British press is about to change for ever but that’s no thanks to the Leveson report. After another round of back-room, minute-less meetings between ministers and managing editors, it has become clear that the bland tome of equivocation and suggestion that was the ultimate result of a media and parliamentary corruption scandal that nearly brought down the UK government is going to make almost no difference.

In 2013, the Murdoch media empire continues to profit from the muckraking, misogyny and celebrity-gossip dross that it uses to buy and sell electoral influence to the highest bidder; Jeremy Hunt is still in the cabinet and David Cameron remains Prime Minister. Meanwhile, Jonnie Marbles went to jail for throwing a plate of shaving foam at an aged media baron and I’m beginning to suspect that he might have had the right idea all along. This was our Watergate and the political establishment has been allowed to wipe its hands on its trousers and walk away.

In The Critics

  • In Books, the Conservative peer and former foreign secretary Douglas Hurd reviews Britain’s Quest for a Role, a memoir by the former diplomat David Hannay.
  • Our critic at large this week is Ryan Gilbey, who writes about Steven Spielberg’s landmark biopic Lincoln, released in UK cinemas on 25 January.
  • Rachel Cooke watches the Danish political drama Borgen and wonders what all the fuss is about.
  • Our pop critic Kate Mossman writes on David Bowie’s comeback, and in a seperate piece assesses the songs in Tom Hooper’s adaptation of Les Misérables.
  • Leo Hollis explores the ways in which digital technology is “mediat[ing] our experience of the city”.
  • Margaret Drabble reviews John Burnside’s short story collection Something Like Happy.
  • Helen Lewis finds precious little illumination in the pages of Anne H Putnam’s weight-loss memoir, Navel Gazing.
  • In the Books interview, Sophie Elmhirst talks to George Saunders, master of the real voice, about his latest novel – Tenth of December.

Read more in our "In the Critics this week" feature on Cultural Capital.

Purchase a copy of this week's New Statesman in newsstands today, or online at: www.newstatesman.com/subscribe

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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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump