New Times,
New Thinking.

  1. Election 2024
9 October 2011

Labour’s economic challenge

Ed Miliband needs to make sure his colleagues understand the need for radical change.

By Jonathan Derbyshire

The deputy leader of the Labour Party, Harriet Harman, appeared on the BBC’s Andrew Marr Show this morning. Harman was asked by Marr about the new kind of economy envisaged by Ed Miliband in his speech to Labour conference last month. Her rather unconvincing answers tended to confirm the analysis of the chief economist of the IPPR Tony Dolphin, who argued here recently that it’s much harder to articulate a new economic paradigm than it is simply to assert that things need to change.

Dolphin wrote that “Distinguishing between ‘predators’ and ‘producers’ was an unnecessary hostage to fortune”. Questions about good and bad businesses drown out, Dolphin went on, the “arguments of thinkers such as Will Hutton, Anatole Kaletsky and William Baumol over different models of capitalism”. Marr duly asked whether Top Shop boss Sir Philip Green was a predator or a producer. Harman replied somewhat uneasily that “it’s not about individuals”, rather confirming Dolphin’s fears.

Miliband and Labour’s main problem, according to Dolphin, is that “there is no new well-developed economic model – comparable to monetarism in the 1970s – sitting on the shelf waiting for him to pick it up and champion it. He therefore faces a tough decision. Does he want to tinker at the edges with the existing model – a bit more banking regulation here, an employee representative on a company board there? … Or is he prepared to make the case for more radical change and to champion those independent voices in economics that are not heard enough? “

When Marr invited her to elaborate on Labour’s vision of a new economy, Harman did make it sound as if all Labour has in mind is to tighten up the regulatory framework governing financial services. But I suspect Miliband doesn’t want to take to the easier of the two options Dolphin described and does want to “make the case for radical change”. If that’s true, then he needs to make sure his colleagues, Harriet Harman included, understand just what he has in mind.

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday. The best way to sign up for The Saturday Read is via saturdayread.substack.com The New Statesman's quick and essential guide to the news and politics of the day. The best way to sign up for Morning Call is via morningcall.substack.com
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
THANK YOU

Content from our partners
Peatlands are nature's unsung climate warriors
How the apprenticeship levy helps small businesses to transform their workforce
How to reform the apprenticeship levy