To win again, and win again soon, Labour needs to be seen as a party of government. Therefore, we need a compelling alternative economic strategy to address the economic reality. Anyone who opposes every cut in public spending is in denial of the economic situation. We must articulate how we would deal with the economic crisis differently from the current government. This must be based on fairness: cuts should be spread evenly across the income spectrum.
Perhaps in the past Labour has been agnostic about the kinds of industries and the kinds of jobs that we want in Britain: as long as the economy is booming, the reasons don’t matter. But the crisis in the banking sector showed that our economy was too dependent on the financial sector; and the cuts to be implemented will demonstrate that it is too dependent on the public sector. Similarly, our values should warn against an economy over-reliant on the grey, informal economy, which routinely exploits its low skilled, low paid workforce, and offers little progression or hope for them.
As we begin to recover from the recession and build the economy again, there is an opportunity to reshape the economy to be more resilient, as well as better for jobs and communities.
Our ambition should be for Britain to lead the world in the industries of the future. This does not mean ‘picking winners’; it requires a far more subtle approach. But all government actions – not just those in industry – contribute to the willingness of enterprises and industries to invest and develop in Britain.
Ed Miliband should consider:
• An inward investment review to understand fully the factors which drive investment in the kinds of high skill, high value industries we want
• Policies which incentivise parts of the economy we want to grow, like green industries, social enterprises and the creative economy.
Similarly, Labour should not be agnostic about the kinds of jobs we want. Our ambition should be for fair and satisfying workplaces.
New Labour’s vision of economic efficiency and social justice should remain our ambition. Faced with the challenges of an ageing population, emerging economies and globalisation, Britain’s economy cannot afford to have so many people out of work. At the same time, many who do not work are prevented by a labour market that is insufficiently flexible to enable them to juggle work with families and other responsibilities. Every mother who chooses not to work because she’s fed up of the inflexibility her employer gives her to look after her kids if they’re off school sick is a blow to the economy. And it’s unfair on her. Every older worker who is denied a job because the employer worries about him being a bit slow up the stairs is a blow to the economy. And it’s unfair on him. And every person whose employer cannot give him the flexibility to manage his mental health problems is a blow to the economy. And it’s unfair on him.
Ed Miliband should initiate a joint union-employer commission on ‘fair workplaces of the future’ looking at:
• How unions can improve the workplace
• Parents’ working rights
• Technology
• Mental health at work
• Working hours
• Older workers
Labour has long won people’s hearts through its vision about the kind of society we want to live in. By being bold about the kind of economy we want, and the kind of jobs we want, we can win people’s heads back too.
The New Generation: the Young Fabians 50th Anniversary Pamphlet can be read here