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