Tartan Tories strike back

The Conservatives hold just one seat for Scotland in Westminster, but starting with the help of a 26

Outside the office of Peter Lyburn, Conservative candidate for Perth and North Perthshire, is a tiny private aircraft, visible from his desk in the Scottish spring sunshine. Given the geography of this vast, rural constituency - which stretches from the town of Perth, 40 miles north of Edinburgh, across swaths of agricultural land and up to the Highlands - an aeroplane might not be a bad way to get to some voters. But when Lyburn appears outside the office - a couple of rooms in the control tower of Perth's small, non-commercial airport - it is in something less ostentatious.

His saloon car parked outside, the 26-year-old candidate for the Tories' most winnable seat in Scotland bounds into the room, eating an ice cream. He is confident of his chances of winning the seat, which the SNP holds by a margin of just 1,521 votes. He and his team started their campaign early - 18 months ago, he explains - and these busy final days are being run "almost like a military operation". Today's schedule includes a visit to a Perth care home to meet Andrew Lansley, who is in Scotland for the day. "We don't want to keep the shadow health secretary waiting," Lyburn says as we head for the car. But once we arrive in town, without a map, we can't find the right street. We decide to walk, but the elderly couple we ask for directions don't know either. When, with the help of an iPhone and Google Maps, we finally work out where to go, it's so far away that we have to return to the car and drive.

Unusually young and competing for a pro­minent marginal seat, Lyburn has attracted more attention than the average candidate. But then in most Scottish constituencies, Conservative candidates don't come in for scrutiny at all: what would be the point? At Westminster, Labour has by far the most Scottish seats; the popularity of both the party and its Fife-born leader is holding up. The SNP leads Scotland's minority government at Holyrood, and presents its Westminster candidates as a necessary buffer to protect Scottish interests from "the London parties". This argument has kept it in second place in the opinion polls, though lagging far behind Labour, to which the Nationalists tend to lose support in Westminster elections. As a result, the battles being fought in SNP-Labour marginals, such as the seat bordering Lyburn's, Ochil and South Perth­shire, have become even tougher.

The Conservatives have only one Scottish MP, David Mundell in Dumfriesshire, Clydesdale and Tweeddale; David Cameron has conceded that most Tories north of the border have little or no chance of being elected. In some seats, they are fourth, or even fifth, in line. But as polling day draws nearer, and the widely predicted Conservative majority starts to look less and less inevitable, every marginal is becoming more important to the Tories, even in Scotland. The area that now comprises the Perth and North Perthshire seat has a long history of supporting the Conservatives: it has been SNP-held since 1995, but for almost all of the 20th century, it returned a Tory MP.

The half-decade Cameron has spent deodorising the Conservatives has had little impact in Scotland: the proportion of Scots willing to vote Tory has stuck resolutely at between 15 and 20 per cent since 2005. "Partly, it's because [the Conservatives] no longer have a strong hold in Scottish politics," explains Nicola McEwen, co-director of Edinburgh University's Institute of Governance. "If there is apathy towards Labour, ordisappointment, it's not going to benefit the Conservatives - it's going to go elsewhere, mainly. But also, one of the issues that is quite important for Scottish voters is which party can best represent them in the UK. And the Conservatives seem not to be able to do that."

Check mate

However, at this general election, for the first time since 1992, it looks as if the Tories might return more than one Scottish seat. That's not to say there has been a significant shift in Scottish politics. Nobody expects the party to win the 11 seats it has set its sights on; Peter Kellner, of the polling organisation YouGov, is more generous than most in suggesting that the Tories might feasibly add seven seats to their existing one, but points out that "gains of one or two are more likely".

Cameron himself is yet to make headway with most Scots, McEwen says. "I don't think he gets the same reaction as Margaret Thatcher, for instance, but there's no sign that he is especially popular, or turning things around for Scotland."

There is one significant change. In Scotland before 2005, not even Conservatives liked the Conservatives: the Scottish party worked hard under its leader David McLetchie to develop a moderate, "One Nation" identity at Holyrood that was distinct from Michael Howard's British Conservatives. With Cameron in charge, that divide has disappeared. "They're much more comfortable with the 'compassionate Conservative' identity being nurtured just now," McEwen says.

Lyburn is the perfect example of a Scot "energised in the party by David Cameron". He is such a textbook Cameroon, he could have been generated in a lab somewhere deep inside CCHQ. "We need to focus on the bottom 10 per cent of society," he tells me. "David Cameron calls it progressive ends by conservative means, and I agree with him 110 per cent."

He's a local candidate, having grown up on a farm outside nearby Coupar Angus, and has the requisite green credentials, after three years working for a recycling firm owned by the Scottish multimillionaire entrepreneur Angus MacDonald. Indeed, on his first foray into politics as the Scottish parliamentary candidate for Dunfermline West in 2007, Tatler magazine tipped him as a future environment secretary - as well as "top Tory totty". "He looks like a Conservative candidate," remarks the Scottish political commentator David Torrance. "He's got this mass of very Tory hair."

Lyburn is trying to sell the notion of a refreshed Conservative Party, with new candidates like himself. "What we're trying to get across to people is -look at our list of 11 seats. If you're in one of them, don't think you're the only person in your street who thinks the way you do," he says. Yet he denies there is any stigma attached to voting Tory in Scotland.

Lyburn tells me that his previous political campaign in Dunfermline shook the "stereotypical Tory boy" out of him. But at a public meeting that evening in the village of Scone, he tells a polite and attentive gathering of 25 or so that "there is a real and present danger of young people growing up without a 'get out and work' attitude". He relates his own experiences: if his dad hadn't got him up in the mornings to help out around the farm, he would have stayed in bed. Apparently this is the sort of discipline broken Britain needs.

Lyburn is hoping that Scots will respect the "grown-up politics" of Budget rebalancing - including significant cuts to the public sector, which employs a quarter of Scotland's workforce. He may be right, in a sense: despite Alistair Darling's Budget announcement that spending in Scotland is to fall by £400m, 60 per cent of the country's voters still back a Labour government. But the SNP is targeting both the Tories and Labour with one line: "More Nats means less cuts."

Perth's SNP MP, Pete Wishart, is presenting an even less complicated message on the doorstep. Dressed in a coat with a faint check - Black Watch, the regiment founded in the area and reduced to battalion status by Labour, with Conservative support - he tells people repeatedly: "It's us or the Tories in this constituency." Several respond: "Anybody but the Tories."

In this part of the town, there is support for just about everyone else. A few say they're SNP voters; about as many seem unlikely to vote at all. A middle-aged Labour supporter, recently made redundant by Network Rail, agrees to think about the SNP as a tactical anti-Tory vote, while another of about the same age, a builder, is agitated about Perth's Polish population. But it is the BNP's world-view, not the Conservatives' promised cap on immigration, that has caught his eye. "They aren't right on everything, but they've got the right idea on some things. Haven't they?"

Wishart may be working to keep the Conservatives out of his constituency, but he says the SNP's ultimate goal, independence for Scotland, would be served well by a Tory government in Westminster. "It would be an absolute disaster for Scotland," he says, but "this provides other opportunities and contexts. There is a big constitutional question for David Cameron if he is returned as prime minister with only a few MPs for Scotland. [But] I'm not bothered if Brown or Cameron wins. I want Perthshire to win, that's my agenda."

Like the Liberal Democrats, the SNP argues that the two main parties are the same: "They're both committed to cutting Scotland's budget."

Officially, the SNP could hardly be seen to support a Conservative government at Westminster. During general elections, independence takes a back seat, and it would be perverse for the Nationalists to campaign as Scotland's "local champions" while backing a party with so little Scottish support, especially now that Cameron has ruled out the possibility of negotiating with the SNP in return for support in a hung parliament. But a Labour win - or even a good return - may have grave consequences for the SNP. There will be a Scottish parliamentary election next year, and a positive general election for Labour, which has just one seat fewer than the SNP in the Scottish Parliament, should lead to a boost at Holyrood.

Dodging left and right

A hung parliament, meanwhile, would allow the SNP to "Scotland-proof any piece of legislation", as Wishart puts it. But while the SNP is popular - more so than it was in 2005 - it looks unlikely to add many, if any, seats to its present haul of seven. Appealing to the anti-Tory vote is the more obvious route to popularity.

The same tactic is in use in neighbouring Ochil and South Perthshire, another large, rural constituency. But here - a seat that Labour holds by a mere 688 votes, and that the SNP considers to be its top target - it's not the Nationalists who are using it but the incumbents, who are fighting their campaign on a UK platform.

However, the SNP's Annabelle Ewing is out fighting her own negative campaign. In the streets of central Alloa, which have been thrown into chaos by a major redevelopment project, her focus is the failures of the local Labour council, which has fallen £9m into debt. Swaddled in an enormous yellow overcoat, Ewing is a consummate politician - perhaps unsurprisingly: she is the daughter of the former SNP president Winnie Ewing, and her brother is an MSP.

As we stroll through the Continental food market in the town high street, Ewing stops to speak only to shoppers, not stallholders, most of whom are from outside the constituency, so "they're not voters".

What she has to say plays, mostly, very well. Closures of public toilets and local halls have angered residents, and many of them are quite prepared to leave the blame where Ewing lays it, at Labour's door, although one elderly lady interjects "and the SNP at Holyrood". A passer-by in a baseball cap with a Scottish flag on it tells Ewing that he doesn't believe in independence: it's not the English he's worried about, it's "the Arabs and the Yanks". But he speaks warmly about George Reid, a former SNP MP and MSP for the area, and as he walks off he tells her: "Aye, I'll vote for you. That's not a problem."

Ewing emphasises the SNP's support for business and its rejection of Labour's planned National Insurance increase - "another burden that small business, in particular, does not need". The SNP has long stressed it is the party of Scottish enterprise, although its leader Alex Salmond, once an economist at the Royal Bank of Scotland, has had to abandon his vision of Scotland as part of an "arc of prosperity" stretching from Ireland to Iceland. In this constituency particularly, it may be a canny card to play. Like Perth and North Perthshire, Ochil includes a large pocket of Tory voters, who may choose to vote tactically for the SNP to keep the Labour incumbent, Gordon Banks, from holding on to the seat. Asked about the party's ideological positioning, Ewing dodges the question of left or right: she is concerned only with "protecting Scotland's interests".

Promises, promises

Meanwhile, Banks is taking an approach oddly reminiscent of Pete Wishart's. "I don't care what the SNP do, I don't care what the Tories do," the MP says. "What concerns me is my tactics." And those are ultra-local. In keeping with most of Labour's national pledges, he is offering his constituents more of what he has given them so far: he promises to be "as open and available as I have been over the last five years", pointing out that he maintains two constituency offices - one in Alloa, one in Crieff - to make things easy for them.

An unscientific sample of voters in nearby Clackmannan, a historically Labour-supporting area of the seat, suggests it may not be enough. Surrounded by a team of canvassers in bright red Scottish Labour cagoules, Banks makes an argument that is the same as the SNP's in Perth: can you stand to see the Tories win?

A woman on her way out into the evening sunshine tells him that "Labour have let me down so far" - on housing, on immigration - and adds, "I've written to yourself." Banks talks to her at length about her worries, then reminds her that a vote for the SNP is an open back door for the Tories. "I didn't like what they did under Maggie," she concedes.

As we walk on, Banks explains that this argument is not what it was. A woman in a football shirt takes one look at Banks and tells him she won't be voting - she is "not very impressed generally" by politicians. One campaigner approaches to say that they've just met a Tory. "Not a very nice one," he adds glumly, shifting the shoulder bag of leaflets resting against his hip. Tory voters, Banks remarks with resignation, "are no longer reluctant to tell you so".

But perhaps there is a positive side to this for Labour. With the peculiarities of Scottish politics, it is possible - just - that the tiny uptick in the Tories' Scottish reputation could work in Banks's favour. The Conservatives are now claiming to have the backing of 50 Scottish companies and business leaders over National Insurance - including that of Lyburn's former boss Angus MacDonald. If the Scottish Tories recast themselves as the party of Scottish business, the Conservative candidate for Ochil and South Perthshire may drain away a few of Ewing's votes. And if that happens, Gordon Brown may just find himself with one seat to thank David Cameron for.

This article first appeared in the 03 May 2010 issue of the New Statesman, Danger

Jeremy Corbyn. Photo: Getty
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Lexit: the EU is a neoliberal project, so let's do something different when we leave it

Brexit affords the British left a historic opportunity for a decisive break with EU market liberalism.

The Brexit vote to leave the European Union has many parents, but "Lexit" – the argument for exiting the EU from the left – remains an orphan. A third of Labour voters backed Leave, but they did so without any significant leadership from the Labour Party. Left-of-centre votes proved decisive in determining the outcome of a referendum that was otherwise framed, shaped, and presented almost exclusively by the right. A proper left discussion of the issues has been, if not entirely absent, then decidedly marginal – part of a more general malaise when it comes to developing left alternatives that has begun to be corrected only recently, under Jeremy Corbyn and John McDonnell.

Ceding Brexit to the right was very nearly the most serious strategic mistake by the British left since the ‘70s. Under successive leaders Labour became so incorporated into the ideology of Europeanism as to preclude any clear-eyed critical analysis of the actually existing EU as a regulatory and trade regime pursuing deep economic integration. The same political journey that carried Labour into its technocratic embrace of the EU also resulted in the abandonment of any form of distinctive economics separate from the orthodoxies of market liberalism.

It’s been astounding to witness so many left-wingers, in meltdown over Brexit, resort to parroting liberal economics. Thus we hear that factor mobility isn’t about labour arbitrage, that public services aren’t under pressure, that we must prioritise foreign direct investment and trade. It’s little wonder Labour became so detached from its base. Such claims do not match the lived experience of ordinary people in regions of the country devastated by deindustrialisation and disinvestment.

Nor should concerns about wage stagnation and bargaining power be met with finger-wagging accusations of racism, as if the manner in which capitalism pits workers against each other hasn’t long been understood. Instead, we should be offering real solutions – including a willingness to rethink capital mobility and trade. This places us in direct conflict with the constitutionalised neoliberalism of the EU.

Only the political savvy of the leadership has enabled Labour to recover from its disastrous positioning post-referendum. Incredibly, what seemed an unbeatable electoral bloc around Theresa May has been deftly prized apart in the course of an extraordinary General Election campaign. To consolidate the political project they have initiated, Corbyn and McDonnell must now follow through with a truly radical economic programme. The place to look for inspiration is precisely the range of instruments and policy options discouraged or outright forbidden by the EU.

A neoliberal project

The fact that right-wing arguments for Leave predominated during the referendum says far more about today’s left than it does about the European Union. There has been a great deal of myth-making concerning the latter –much of it funded, directly or indirectly, by the EU itself.

From its inception, the EU has been a top-down project driven by political and administrative elites, "a protected sphere", in the judgment of the late Peter Mair, "in which policy-making can evade the constraints imposed by representative democracy". To complain about the EU’s "democratic deficit" is to have misunderstood its purpose. The main thrust of European economic policy has been to extend and deepen the market through liberalisation, privatisation, and flexiblisation, subordinating employment and social protection to goals of low inflation, debt reduction, and increased competitiveness.

Prospects for Keynesian reflationary policies, or even for pan-European economic planning – never great – soon gave way to more Hayekian conceptions. Hayek’s original insight, in The Economic Conditions of Interstate Federalism, was that free movement of capital, goods, and labour – a "single market" – among a federation of nations would severely and necessarily restrict the economic policy space available to individual members. Pro-European socialists, whose aim had been to acquire new supranational options for the regulation of capital, found themselves surrendering the tools they already possessed at home. The national road to socialism, or even to social democracy, was closed.

The direction of travel has been singular and unrelenting. To take one example, workers’ rights – a supposed EU strength – are steadily being eroded, as can be seen in landmark judgments by the European Court of Justice (ECJ) in the Viking and Laval cases, among others. In both instances, workers attempting to strike in protest at plans to replace workers from one EU country with lower-wage workers from another, were told their right to strike could not infringe upon the "four freedoms" – free movement of capital, labour, goods, and services – established by the treaties.

More broadly, on trade, financial regulation, state aid, government purchasing, public service delivery, and more, any attempt to create a different kind of economy from inside the EU has largely been forestalled by competition policy or single market regulation.

A new political economy

Given that the UK will soon be escaping the EU, what opportunities might this afford? Three policy directions immediately stand out: public ownership, industrial strategy, and procurement. In each case, EU regulation previously stood in the way of promising left strategies. In each case, the political and economic returns from bold departures from neoliberal orthodoxy after Brexit could be substantial.

While not banned outright by EU law, public ownership is severely discouraged and disadvantaged by it. ECJ interpretation of Article 106 of the Treaty on the Functioning of the European Union (TFEU) has steadily eroded public ownership options. "The ECJ", argues law professor Danny Nicol, "appears to have constructed a one-way street in favour of private-sector provision: nationalised services are prima facie suspect and must be analysed for their necessity". Sure enough, the EU has been a significant driver of privatisation, functioning like a ratchet. It’s much easier for a member state to pursue the liberalisation of sectors than to secure their (re)nationalisation. Article 59 (TFEU) specifically allows the European Council and Parliament to liberalise services. Since the ‘80s, there have been single market programmes in energy, transport, postal services, telecommunications, education, and health.

Britain has long been an extreme outlier on privatisation, responsible for 40 per cent of the total assets privatised across the OECD between 1980 and 1996. Today, however, increasing inequality, poverty, environmental degradation and the general sense of an impoverished public sphere are leading to growing calls for renewed public ownership (albeit in new, more democratic forms). Soon to be free of EU constraints, it’s time to explore an expanded and fundamentally reimagined UK public sector.

Next, Britain’s industrial production has been virtually flat since the late 1990s, with a yawning trade deficit in industrial goods. Any serious industrial strategy to address the structural weaknesses of UK manufacturing will rely on "state aid" – the nurturing of a next generation of companies through grants, interest and tax relief, guarantees, government holdings, and the provision of goods and services on a preferential basis.

Article 107 TFEU allows for state aid only if it is compatible with the internal market and does not distort competition, laying out the specific circumstances in which it could be lawful. Whether or not state aid meets these criteria is at the sole discretion of the Commission – and courts in member states are obligated to enforce the commission’s decisions. The Commission has adopted an approach that considers, among other things, the existence of market failure, the effectiveness of other options, and the impact on the market and competition, thereby allowing state aid only in exceptional circumstances.

For many parts of the UK, the challenges of industrial decline remain starkly present – entire communities are thrown on the scrap heap, with all the associated capital and carbon costs and wasted lives. It’s high time the left returned to the possibilities inherent in a proactive industrial strategy. A true community-sustaining industrial strategy would consist of the deliberate direction of capital to sectors, localities, and regions, so as to balance out market trends and prevent communities from falling into decay, while also ensuring the investment in research and development necessary to maintain a highly productive economy. Policy, in this vision, would function to re-deploy infrastructure, production facilities, and workers left unemployed because of a shutdown or increased automation.

In some cases, this might mean assistance to workers or localities to buy up facilities and keep them running under worker or community ownership. In other cases it might involve re-training workers for new skills and re-fitting facilities. A regional approach might help launch new enterprises that would eventually be spun off as worker or local community-owned firms, supporting the development of strong and vibrant network economies, perhaps on the basis of a Green New Deal. All of this will be possible post-Brexit, under a Corbyn government.

Lastly, there is procurement. Under EU law, explicitly linking public procurement to local entities or social needs is difficult. The ECJ has ruled that, even if there is no specific legislation, procurement activity must "comply with the fundamental rules of the Treaty, in particular the principle of non-discrimination on grounds of nationality". This means that all procurement contracts must be open to all bidders across the EU, and public authorities must advertise contracts widely in other EU countries. In 2004, the European Parliament and Council issued two directives establishing the criteria governing such contracts: "lowest price only" and "most economically advantageous tender".

Unleashed from EU constraints, there are major opportunities for targeting large-scale public procurement to rebuild and transform communities, cities, and regions. The vision behind the celebrated Preston Model of community wealth building – inspired by the work of our own organisation, The Democracy Collaborative, in Cleveland, Ohio – leverages public procurement and the stabilising power of place-based anchor institutions (governments, hospitals, universities) to support rooted, participatory, democratic local economies built around multipliers. In this way, public funds can be made to do "double duty"; anchoring jobs and building community wealth, reversing long-term economic decline. This suggests the viability of a very different economic approach and potential for a winning political coalition, building support for a new socialist economics from the ground up.

With the prospect of a Corbyn government now tantalisingly close, it’s imperative that Labour reconciles its policy objectives in the Brexit negotiations with its plans for a radical economic transformation and redistribution of power and wealth. Only by pursuing strategies capable of re-establishing broad control over the national economy can Labour hope to manage the coming period of pain and dislocation following Brexit. Based on new institutions and approaches and the centrality of ownership and control, democracy, and participation, we should be busy assembling the tools and strategies that will allow departure from the EU to open up new political-economic horizons in Britain and bring about the profound transformation the country so desperately wants and needs.

Joe Guinan is executive director of the Next System Project at The Democracy Collaborative. Thomas M. Hanna is research director at The Democracy Collaborative.

This is an extract from a longer essay which appears in the inaugural edition of the IPPR Progressive Review.

 

 

This article first appeared in the 03 May 2010 issue of the New Statesman, Danger

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