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New Labour and its insecurity


by Chris Dillow    
May 4, 2008 at 9:17 pm

The post-mortems – the mot juste, I think – on New Labour have missed a point.

The party is paying the price for the fact that the New Labour project was based upon profound, and now crippling, intellectual insecurity.

Put yourself in the shoes of New Labour’s founders in the 80s and early 90s. You see that traditional social democratic arguments for redistribution don’t work. You see Labour’s traditional support base, the manual working class, declining in numbers (pdf). And you see a managerial class winning what you want – wealth and power.

What do you do? You abandon traditional Labourism, in favour of an appeal to Mondeo man and Worcester woman.

You retain a vestigial belief in income redistribution but defend it only because it is the partner of economic efficiency, rather than a goal in its own right, and you pursue it through stealth taxes and complicated tax credits for working families. And you adopt a cringing deference towards the managerial class, believing it should be free of burdensome taxes whilst having the ability to deliver top-down reform of the public services.

What we’re now seeing is the collapse of this strategy. The 10p tax fiasco arose from a disregard of the interests of that supposedly shrinking core Labour constituency, the (childless) low paid, and Brown’s belief that meddling with a complex tax system was a substitute for explicit arguing for redistribution. And the pursuit of median voters has led to a collapse in Labour’s support in its heartlands; as Hopi points out, Labour’s losses were especially bad in south Wales.

Worse still, this strategy of insecurity means Brown cannot use at least three potentially popular narratives:

1. Many big-earners aren’t as smart as they think, and are just overpaid, as Mervyn King has said. So maybe we should tax them more. 

2. It’s time to simplify the tax system. Replacing tax credits with a citizen’s basic income could be just as egalitarian, but easier to administer and with lower marginal tax rates on the low paid.

3. The idea that everything can be managed from the centre is an illusion  – we just don’t have that much managerial skill. It’s time to trust workers and markets, not bosses.

The tragedy – well, I think it’s a tragedy – is that the death of the strategy of insecurity has led to a vacuum on the Left, with the Tories alone capable of adopting, perhaps insincerely, these narratives.


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About the author
Chris Dillow is a regular contributor and former City economist, now an economics writer. He is also the author of The End of Politics: New Labour and the Folly of Managerialism. Also at: Stumbling and Mumbling
· Other posts by Chris Dillow

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6 responses in total   ||  



Reader comments
1. Innocent Abroad

Er, I think you’ll find that Mr Cameron has first dibs on narrative 3. Unless of course the workers involved are in the public sector.

2. Lee Griffin

One thing I’ve seen clear (annecodotally) from a lot of the “public” feedback on this whole event is that the 10p tax issue hit a nerve with people that have voted labour regularly yet benefitted from the change.

What Labour perhaps have really failed to recognise is that deep down most labour voters probably vote labour because of the core belief in social welfare and helping those that need it ahead of managing financial gain, and even those (like myself) that have benefited from their tax reshuffle feel really aggrieved that a party like Labour would take away from those already worse off than ourselves.

The key for the future of Labour is to start making policies that look and sound like policies that are going to actually help those that need it and to deliver us all a better quality of life, and this of course means dropping shit like ID cards and 42 day detention. There’s no doubt the majority of the white population that voted labour and now have deserted them in protest will likely never be effected by the 42 day and could perhaps even be persuaded ID cards will do more harm than good…but these are not stupid people, and they’ll still see the harm that can come to individuals, especially innocent individuals, thanks to these policies.

If Labour continue to push these sorts of policies hard I can’t see them getting those voters back. And yet today I hear Brown saying he realises he hasn’t put his arguments across well enough, he is too fucking dumb to realise that it’s not that his arguments aren’t good enough…we understand his benign arguments all too well, it’s the execution of the policy we cannot bring ourselves to agree with no matter how charming the clunking fist aims to become.

Lee – Spot On!

I’m Single and Childless, and thanks to the payrise I got from my company at the beginning of this year and the increase in personal allowances i’ve just managed to avoid being worse off from this 10p debacle. I do mean JUST, I think i’m 30p a month better off!

I’ve voted Labour all my life and i’m seriously pissed off, someone earning thousands more than me has got a tax break, someone earning thousands less than me is paying more tax. All I hear from the government is Tax Credits, Winter Fuel Allowances, Minimum wage increases. This isn’t the Labour way, although eveidence points to the contrary.

I wouldn’t have been caught in that safety net, I’m not eligible for tax credits, winter fuel allowance er i’m 39, and I wouldn’t be affected by any increase in the minimum wage unless they put it up to about £10-11 an hour!

Gordon is going on TV telling us, Yes i’ve made mistakes but in the long run he’s right but we’re just too stupid to realise it. That attitude will bring us back to the party in droves. The “Since 1997″ speech has ran it’s course, people are hurting, what we need to hear is “Since 2007″.

Like you say i’m white working class, i’ve no really opinion on the 42 day thing but do feel a little concerned it would be used for more than what is currently intended further on down the line. The ID card a total no brainer mainly as i’d be asked to pay for the bloody thing!.

I didn’t have a vote last week but if I had it would have been for anyone but Labour.
I’m upset, pissed off, angry and disillusioned. If I hear the “F” word mentioned, FAMILIES, by a government minister preceded by “Since 1997″ You’ll here me scream from wherever you are.

The 10p cut was bad enough to keep hearing Gordon and the cabinet consistently defend it just pores salt in a very open wound. This Labour party used to stand for all working men it’s been driven home recently that quite a few of us have been cut adrift.

I have a bad taste in my mouth and I’ve feeling it’s going to be there for quite a few years.

. The idea that everything can be managed from the centre is an illusion – we just don’t have that much managerial skill. It’s time to trust workers and markets, not bosses.

I’d agree with that, but there has probably been no time within the last century in which more than a tiny minority in the Left has trusted markets more than managers.

And if you won’t have markets, you must have managers.

@ Innocent Abroad

I don’t think Cameron has first dibs on anything except his daddy’s inheritance.

Devolution and decentralisation is an ancient liberal idea developed to aid empowerment and general improvement – if this is part of Camerons’ ‘liberal conservatism’ he is appropriating his opponents traditions because he accepts conservatism is invalid.

Nick – Couldn’t agree with you more!

Tax Credits are a stupidly complicated and ineffective way of trying to redistribute income to lower paid workers. Like you say many lower paid people are not eligable for Tax Credits, it’s not even available for 18-24 year olds or anyone working under 30 hours a week FFS, surely these are the people who should be the main benefactors from a system like TC. Just letting people work part-time and keep their benefits would be a much simpler way of Redistributing income to lower paid workers than Tax Credits.


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