Archives for posts with tag: Keir Starmer

A letter which I have submitted to The Guardian

As a Corbynista I was prepared not to like Sir Keir’s ‘essay’. I understand that The Spectator is offering a bottle of champagne to anyone who can read more than half of the 36-page Fabian Society paper. I qualify. You can read it at https://fabians.org.uk/wp-content/uploads/2021/09/The-Road-Ahead-FINAL_WEB-fri-1.pdf

Keir identifies the major tasks facing a future Labour government as restoring the proper balance between the functions of the state and the job of private enterprise, so as to restore an effective NHS, excellent state education, an adequate welfare state providing a proper safety net for those who are unemployed, disabled, ill or otherwise unable to earn the means of living; to protect civil order by having enough police, and to restore the civil and criminal justice systems with adequate numbers of courts and access to justice irrespective of means.

All fine: but I do feel that the ideas in Keir’s paper need more, in order to be really credible. ‘Who will pay for all this public spending?’ people will ask. 

That seems to me to be the only question Labour must answer, in order to make a really credible offer. Keir mentions the great challenges met in 1945, and others – even Tories like Iain Duncan Smith – have recently suggested that after the devastation of COVID (and of Brexit, although they don’t admit it), what is needed is a ‘wartime solution’. That is, much higher government spending, financed by borrowing and higher taxes, not austerity. 

It’s important that Labour should explain that this is economically highly literate: that the country can, and should, spend its way back to financial health. Indeed, in the USA President Biden is already doing just that. Higher taxes, on the rich and the offshore multinationals, are fine: they will benefit most people and enable the state to function properly. 

The ‘big idea’ which Keir has identified here is the need for a ‘contribution society’ so everyone makes a fair contribution to the maintenance of society, reducing the gap between rich and poor.

Labour, in the person of Gordon Brown, saved the UK economy after the 2008 crash. But the Tories persuaded the electorate to accept an untrue economic narrative which portrayed the rescue as profligacy. Twelve years of economic pain and failure have followed. 

It is vital that Labour should communicate how Keynesian economics, which restored the US economy after the great crash of 1929, and the UK economy after 1945, can turn things around and restore a fairer society where greater overall prosperity is shared fairly between all the people. Maybe Yanis Varoufakis, who has explained all this so well, could become the next Chancellor of the Exchequer.

Hugh Bryant

Sir Keir Starmer: So what is Labour going to do? You know, we keep being told that we are world-class in this and that, and probably the only thing that we can think of that fits that description is the vaccine programme. We have brilliant scientists who have developed the vaccine and our super-efficient NHS is distributing it faster than anyone else.

But you don’t need me to tell you that not much else is world-class at the moment. The number of people who have died in the UK is the highest in Europe and our economy is doing worst among the developed nations. 

Literally millions of people are having to go to food banks, and thousands are homeless on the streets, even in winter time. Universal Credit, to pay everything for a family of four, comes to less than a typical middle-class family will spend just on groceries in the supermarket. 

At the same time some people are getting massively richer through their private contacts with the Conservative party, making contracts to supply things which they know nothing about and which they fail to do, trousering billions in the process.

You know all that. What did you vote for in connection with Brexit? I can’t believe that you really wanted our farmers and fishermen to be unable to export to the EU, or our performing artists, actors, musicians, opera singers, orchestral players or dancers to be unable to go on tour anywhere in Europe, or for none of the stars that we used to welcome from Europe to be able to come here. The Brexit deal leaves out not only the performers but also our financial services industry – together that means half our economic output is effectively subject to a no-deal Brexit. Is that really what people wanted?

Let’s start thinking about what we in Labour could do, if we were in government. People liked the idea of an extra £350 million per week for the NHS as a result of our leaving the EU. Leaving the EU has actually cost us far more than this each week so far. But let’s stay with the idea that the NHS does need more money. Because it does! 

So people were right to vote for more money for the NHS; and Labour will give the NHS the funding that it needs, which is much more than £350 million per week. There needs to be enough investment to ensure that we have sufficient hospital beds – at the moment we have the lowest number per head of population in Europe – enough doctors – we have a shortage of several thousand – enough nurses – we have a shortage of 40,000 nurses – and all the necessary equipment and facilities that the NHS needs. The NHS needs massive extra investment, and Labour will provide it. 

Just remember the Nightingale hospitals. The army came in and very efficiently did what they are very good at, creating instant buildings, and the government managed to cobble together enough ventilators – but we didn’t have any doctors or nurses to staff these new hospitals. It was an illusion. Labour is not in the business of illusions. We want to give you the real thing, something solid and reliable.

What about our housing? When did you last meet someone who lives in a council house? We need to build hundreds of thousands of council houses. Yes, council houses, not so-called ‘affordable’ houses. Because current housing is not affordable. For somebody on an ordinary income even the deposit for a private rented flat may be out of reach. To buy an ‘affordable’ house, as it is defined, in parts of the south-east, costs half a million pounds. 

The government needs to invest in things which provide solid, lasting benefits for society and at the same time provide real jobs. If we built another half million council houses, as they did at the end of the Second World War, this would employ thousands of people and provide work for many subcontractors and manufacturers all over the country. Labour will provide the necessary finance to local authorities so that they can afford to do this.  

And local authorities need the proper funding – which they used to have – in order to do all the things which they can do to make our lives more civilised. We need to make sure that they have enough funds to pay properly for social care which can work closely with the National Health Service, so that old people are not just dumped.

We need children to be properly catered for. The Sure Start scheme needs to be reinstated and properly funded. Our schools and their teachers must have proper funding. It’s interesting that if you send a kid to a private school (or what is called a ‘public school’), it’s going to cost over £30,000 per year, whereas in the state system the budget for each pupil is around £4,000. 

Nearly eight times less! We need to invest in our schools, so that our teachers can take their proper place in society – and indeed so that we can attract the best and most talented people to become teachers – and so that those schools can have all the facilities to educate our children to the highest standard. It’s no good when Dame Louise Casey, the Children’s Commissioner, says in her leaving report that a fifth of children leaving school cannot read and write. We are the sixth richest country in the world, and that is disgraceful. Teachers need to be in the same league as other professionals.Every child should have a proper amount spent on them. We should rejoin the Erasmus educational exchange scheme. Labour will do this.

We must get away from this idea that public is bad and private is good. Think where you would rather live, if you couldn’t live where you do now. Which country? I expect quite a lot of people would say Italy, France, Germany, or Spain, where every town has an elegant square and fine buildings around it; fine public facilities – in Germany even modest sized towns have their own opera house – whereas our whole country has only three major opera houses.

We have to get through this pandemic. It seems wrong to us in Labour that there are still hundreds of thousands of people who have fallen through the net and are not receiving any kind of state benefits even though they are prevented from working, perhaps because they have just changed their job or they have gone self-employed – and by the way, being self-employed, we think, is often a scam, so their employers can cheat the tax-man. 

We are very pleased to see the judgement in the Uber case which is, we hope, going to outlaw much of the ‘gig economy’ so that everyone who works hard can have paid holidays and sick leave when they need it. Good work by the trades unions got this result, and Labour will legislate to make sure of it.

But, you will say, Labour is always very good at spending other people’s money. We need government to be prudent. Frankly, you need to know, that is an over-simplification. As Mr Sunak has proved, when the money is needed, money can be easily found. If you compare our situation now with that at the end of World War II, we were far worse off then and borrowing was much higher – and yet the Labour government successfully started the NHS, built half a million council houses and created the modern welfare state. Margaret Thatcher and her handbag are not a good economic model!

And what about our relations with Europe? We don’t think that people voted to leave the Customs Union and Single Market. Indeed the Brexit campaigners constantly assured us that there would be no question of this happening. 

Again, people wanting to stop immigration have perhaps forgotten how many immigrants keep the NHS going. How many doctors and nurses there are from other countries all around the world. How many teachers and researchers in our leading universities – and indeed how many plumbers and fruit pickers – there are from our friends and neighbours in other countries.

Immigrants, as a group, contribute over 10% more in tax than people who were born in this country. We should welcome them. Freedom of movement would actually be a very good thing for our country, so long as we have proper resources in place. 

If there is a competition for public services, it is because those services have been cut to the bone. If we had properly funded public services, then everybody would be able to benefit, wherever they have come from. 

Labour wants this country to be really world-class, not just world-class for the spivs. A Labour government would lead the country, all the country, into a better place. We know that it will cost money, at least in the short run, and we need to look again at the taxation of the giant multinational companies who use our public facilities but contribute hardly anything in tax.

There is a reason why it is cheaper to shop online than to visit a shop on the High Street. It is because the likes of Amazon and Apple and Google play the market in international tax and pay little or nothing in this country. Labour will put a stop to this and will tax the multinational companies not on profits but on turnover from sales in this country. 

And yes, we will introduce higher rates of income tax for the wealthy. It’s true that the wealthy already pay a lot of tax. But frankly if you earn several hundred thousand pounds a year you can afford to pay some more.

We will look sympathetically at the idea of universal basic income. It is frankly wrong that anyone in work should have to go to a food bank, as many nurses do. It is wrong that people who are disabled or unable to work for whatever reason should have less to cover all their living expenses than what many people spend every week just on groceries in Sainsbury’s or Waitrose.

Mention those shop names; what’s happening on the High Street is something which Labour wants to address too. The great department shops can’t survive if people can buy everything online at a cheaper price. Your local bookshop won’t survive if Amazon can sell books for less than the local book shop can buy them wholesale. Labour will ensure that online retailers have to bear the same costs as physical shops who employ local people and provide real service face-to-face.

Labour will invest in our justice system. We will actively seek to rejoin the European criminal intelligence network; we will reopen courts and provide properly resourced Legal Aid, including for family cases, so that justice is no longer open only to the rich, and people charged in criminal cases do not have to wait for up to a year to be tried. Justice delayed is justice denied, and Labour agrees. Labour will uphold the Human Rights Act.

Welcome to our world – to the Labour world. Really world-class.

[Applause]