It’s official, and it’s serious. January’s GDP figures confirmed what everyone already knew, that we are in recession. The sheer speed with which the banks came unstuck, the conspicuous empty shop fronts in every high street, and the nightly tally of jobs lost are all hitting home with punishing impact. The government has stepped up to these challenges and has taken bold steps to recapitalise banks, stimulate housing and get credit moving again – but nothing is guaranteed.
The strength of our party and movement, and the strength of our ideas and values, will be measured by the action we take to safeguard communities and kick-start the economy during the months ahead. Labour councillors have a vital role to play in this process. For more than a hundred years they have rolled out progressive policies grounded in the desire to achieve security, dignity and opportunity for all. Action by Labour councils can be broken down into four categories: stimulating the local economy, safeguarding homes, providing financial assistance and advice, and providing local leadership.
Last November, Manchester City Council was the first local authority outside London to introduce a top-up to the minimum wage. This weighs in at £6.75 an hour – over a pound more than the national minimum wage, and more than 850 employees will benefit from the scheme by the time it has been fully rolled out.
Across the municipal border in Salford, the Labour council has been toying with a ‘purchase to rent’ scheme, with the aim of stimulating the local housing market. In Lewisham, Mayor Sir Steve Bullock has co-ordinated the work of all local public services to ensure that those in need are provided with joined-up services and advice, working with the local voluntary sector on issues such as advice on debt and energy efficiency.
Sir Jeremy Beecham, Leader of the LGA Labour Group, believes that Labour councils are leading the way in dealing with the economy because they are more than the sum of their parts. ‘It may suit Liberal Democrats to appeal in different ways to different areas of the same town with policies which are inconsistent.
‘A Labour council pursuing its agenda needs a more coherent approach. Whether it is Manchester on the local economy or Barnsley helping people graduate from welfare to work, Labour can demonstrate that its commitment to collective action and a long-term strategic vision can meet the challenges our society faces.’
The Tories have been left sounding hollow, bereft of any ideas that could have a meaningful impact on the lives of families across Great Britain. Nationally, they’ve flip-flopped from advocating non-intervention to criticising the government for inaction.
Tackling this recession will be the greatest challenge to face Labour local or central government for more than sixty years. It is time for all of us to get on with job and demonstrate to people on the local, national and international stages that it’s Labour leading the way.
Leading the way – Labour local government’s response to the credit crunch is published by the LGA Labour Group. For more information click here