This provides a revealing insight into the Conservative philosophy behind the ‘big society’ and how it differs fundamentally from Labour’s approach.

American philanthrocapitalism has emerged as a powerful force partly as a result of low taxation on the rich but also because of a lack of public provision of essential services for those who cannot afford to pay privately. In America wealthy individuals and not-for-profit organisations have stepped in to try and fill the yawning gap left by a patchwork of poor services and a postcode lottery the like of which we have not seen in Britain for many decades.

Philanthropy and private patronage creates a hierarchical power relationship between the donor and the beneficiary which may allow rich and powerful patrons to dictate the nature of the service provided. We are all aware of the powerful king commissioning the artist to create a flattering portrait of himself to impress a potential wife. This may be less worrying in art – and in recent weeks we have seen a generous £10 million gift to the National by Lloyd Dorfman and the largest donation in the Serpentine Gallery’s history from the Dr Mortimer and Theresa Sackler Foundation.

All credit to those donors whose money will add to the richness of our artistic life. But where private philanthropy is a substitute for essential public provision of health and education the situation is more worrying.

Labour’s way of building strong and vibrant communities has always been based on mutual relationships of equality where people with few resources have come together in collective self-help groups like the co-op movement, trade unions and voluntary organisations to work together to improve conditions for everyone. This is a relationship between equals of mutual respect. It is very different from private patronage.

I welcome the Dorfman Theatre and the Sackler Serpentine, but a New Philanthropy Capital report has made it clear that philanthropy and charities cannot fill the estimated £5 billion, for voluntary and community organisations which will result from the 30 per cent cuts to local authority funding.

Perhaps a more powerful way of funding a ‘fair society’ would be to create a mechanism allowing banks, building societies and other financial service providers to voluntarily contribute a proportion of their profits to be reinvested in community projects. This could extend to support in kind such as mentoring, providing advice and helping with the development of skills, creating a long-term relationship between communities and the financial sector. That would at least give the mantra of ‘we’re all in this together’ some credibility.

So Mr Cameron – be brave – it would be the most popular step you could take. It would prove that your ‘big society’ really is a governing philosophy and not, what many think, simply an exercise in political rebranding. 

 

Photo: ktylerconk