Although the attendees at #Progress2010 were scattered between four different policy groups, over half of the audience remained in the main hall of the TUC building to see what many saw as the soon to be shadow chancellor give her first thoughts on the economy. Yvette Cooper MP, former treasury ace and wife of paralleled expert Ed Balls sat alongside newly elected Rachel Reeves MP, Wendy Alexander MSP as chair and Stephen Alambritis of the Federation of Small Businesses.

Ms Cooper was first invited to open the discussion with her thoughts generally about the position of Labour and, more specifically, about the economic implications of the ConDem coalition.

She opened: “This is a chance for us to reflect, to stress we were right to take action to support the economy and the banking system crash, to protect the security of jobs across the world and ensure the recession didn’t turn into a slump”.

She went on to stress the correct decision by 11 Downing Street to maintain a low inflation economy throughout its time in government, whilst adding the failure of tougher regulation and the urgent need for us to “face up to that failure”. Furthermore, the significant elucidation that Labour left low level earners vulnerable to current Conservatism cuts was clearly pressing, with the former chief secretary to the treasury stressing :

“They [electorate] left us and we need to get them back to champion the values of what we stand for, the economy still needs support in this fragile time and especially during the initial stages of the recover. Historically, people get left behind during times like these and we cannot let that happen again as it did in the 1980s. Let’s anticipate the challenge and threats, especially to the public services and ensure we are stand for strong opposition against the ConDem coalition”.

Rachel Reeves starting her commentary by offering much needed progressive passion of a need to set out a strong vision for local communities throughout the country. Through “targeted regional policy and green jobs, coupled with newly acquired local government power, Labour has the ability to take bold progressive steps in regaining the trust of the working classes”. Reeves stated a need to take a bold step and break up the banks to allow stronger competition within the industry, whilst also ensuring a fostering of mutual banks and building societies to aid growth. Her commentary was refreshing and promised much of her credentials over the coming years.

Stephen Alambritis of the FSB was quick to stress that we should always
remember the years of 1997 to 2007 as being a great economy built upon good economic principles:
 
“Currently, more people are working within the economy than ever before, 1000 bankruptcies a week during the last recession under the Tories, only 25,000 this year under the Labour party. Female entrepreneurship is also hugely increased alongside small start ups and people working from home, estimated to be approximately two million people.”

All the panellists were quick to point out that the Post Office bank may be a good alternative to fostering security for those who most need it. Ed Miliband’s campaign to create a Living Wage within the whole of the UK was greeted with approval from the panel.

Many economists, myself included, understand the sometimes eternal frustration with trying to have an economic debate with someone who doesn’t have an academic background in the area. It is rather like trying to debate health policy with a surgeon or legal procedure with a lawyer. Ms Cooper too acknowledged this stating:

“Opposition is an opportunity to be practical and hard-headed. However, we must remember that it is very difficult to open much-needed wide discussion with the electorate in a non-technocrat way. I believe that whilst we did immerse ourselves in the debate under the guise of ‘supporting the economy’, I don’t know whether we have been able to articulate the economic Keynesianism choices well enough.”

In summary, Yvette Cooper and rising stars such as Rachel Reeves showed at Progress that they have a significant role to play in opposition to the widely acknowledged threat of neo-conservative economic policies. Whilst both were quick to admit the failings of poor regulation and miscommunication of Labour policies to the electorate, the mood was consistent and positive. We have a role to play in protecting the people we have let down, and Ms Cooper and her soon to be team in the shadow treasury seem ready for the fight.