There is a general consensus that Labour lost the argument on the economy and business which led to a bruising election defeat just over three weeks ago. However, the European referendum is a great opportunity for Labour to reconnect with business and lead the fight to stay in Europe and regain trust on the economy.
An in-out referendum on Europe has looked inevitable for some time now and the reaction that many people had on the doorstep was that it should be had sooner rather than later so the issue can be put to bed. Labour now needs to make this argument of bringing the referendum date forward so we can have the debate and businesses can have the confidence to carry on without uncertainty looming over them. Recently, the Bank of England said there has been no effect on business regarding the referendum, but we should all expect business to be more cautious when making investment decisions as we approach the referendum.
Towards the end of the election, Labour started using the slogan ‘Britain succeeds when working people succeed’, which I agree with. However, it is also true that Britain only succeeds when British business succeeds. They create the jobs, wealth and opportunities for working people to go on and get on life and that is the kind of aspiration that Labour has been talking about since losing the election. Making the case for an early referendum will reduce the uncertainty hanging over businesses and will also be a significant step for Labour on regaining trust on the economy.
It was not too long ago when David Cameron changed his tune in the election and injected a bit of vigour into his speech. Talking about small business the prime minister said: ‘Taking a risk, having a go, taking a punt – that’s what pumps me up’. Labour had a great plan for small- and medium-sized businesses and simply did not talk about it enough. For example, cutting business rates was a popular policy as Britain has one of the highest business rates in Europe, but among the lowest rates of corporation tax, which the Tories want to cut. There is a clear distinction between those policies, but it was something that wasn’t talked about enough by the Labour party and meant the Tories came across as the party for innovation and small business.
Recently, the government announced 16- and 17-year-olds will not be given the opportunity to vote in the referendum. Again, the Labour party throughout the general election said that the voting age should be lowered to 16. If any single party can learn lessons from the Scottish Independence referendum it certainly is the Labour party. If 16- and 17-year-olds were trusted to make a decision on the Scottish referendum, why on earth are they not being trusted on the EU referendum?
There are many obvious arguments about why 16- and 17-year-olds should be given a say such as they can be taxed, have children, get married with parental permission, leave school the list goes on, but beyond this there are reasons which link back to the notion of aspiration that many in the Labour party have been talking about. As the cliché goes, young people are the future of our country and we want them to have the confidence to start businesses and create opportunities.
Any 16- or 17-year-old that decides to leave school and create their own business is taking a huge risk and I am a strong believer of ‘bigger the risk bigger the reward’. With the digital boom, we should be encouraging and helping young people with aspirations to go out there and be innovative, but not giving them a say in the EU referendum sends out the wrong message. Many of these young people will heavily depend on Europe and denying them a say on the world’s largest trading block simply is not right.
If Labour does not take a proactive approach to the EU referendum or does not learn the lessons from the Scottish referendum then this may be a long five years. There is no doubt that some of us are still licking our wounds after that election defeat, but the EU referendum is a real opportunity to set the agenda to stay in Europe and demonstrate that Labour has the grit, determination and most importantly the competence to lead on the international stage and to be trusted on the economy once again.
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Kamran Hussain is a member of Progress and former Labour party campaigns assistant
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