Monthly Archives: September 2012

Labour should prioritise unions over business

There are 400 ‘business representatives’ at the Labour Party conference this week, to highlight an interesting choice of words found in a recent Financial Times report. I am kind of hoping that the phrase is an unnecessarily imprecise synonym for ‘exhibitors’.

But if the rules have been changed while I wasn’t looking and the Confederation of British Industry and the Institute of Directors do get official delegations nowadays, that would only mark the logical culmination of the trajectory Labour has been on since the days of the Prawn Cocktail Offensive of some 20 years ago.

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Tory tax on the poor – coming to a council near you

contribution by Seema Chandwani

Once upon a time, there were 20 people living in King Tory‘s Mansion, 10 of whom were assessed as ‘unable’ to pay for their Council Tax for various reasons ranging from old age, disabilities, mental illness or lowly paid. The total amount of Council Tax for all 20 people was £2,000, or £100 per a person. The 10 that could pay, did directly and the 10 that could not had their Council Tax paid for by King Tory, totalling £1,000.

One day King Tory says to the 10 who can’t pay: “We are only going to pay £900 towards your Council Tax”, or a 10% cut. The 10 would need to find £10 each to top up the amount needed for Council Tax.

King Tory has a condition: he will give £900 but the pensioners will be protected 100% from paying any Council Tax. As 5 of the 10 are pensioners, £500 of the £900 is spent on them. This means the remaining 5 only have £400 between them, and now need to find £20 each. So the cut for them is 20% even though the pot is only 10% smaller.

* * * * * * * * * *

The central government is imposing an ideology many of us would remember as the ‘Poll Tax’ where everyone must pay something. What they have done is fired a shot, and handed the gun to Local Councils to take the rap. We must not be fooled by this, even though some Councils appear to be taking the blame for the shot fired.

Who gets shot next is up to us, it’s called ‘Localism’, through the ‘consultations’.

Central Government have asked Local Councils to undertake, we decide who pays and who does not, whether everyone outside the protected pensioners pay 20% or whether we also protect low income families with Children, thus increasing the percentage for the rest.

We are being forced to choose one vulnerable group over another, groups that probably will already be facing cuts in Working Tax Credits, Housing Benefit, Disability Allowance and anything else from the ‘Overall Benefit Cap (OBC) etc.

This also creates a ‘postcode lottery’ as People with Disabilities could win the X-Factor style choice in one borough but in a neighbouring borough People with Disabilities have not won the popularity contest to be chosen. Therefore, many Local Councils are proposing a blanket ‘they all pay the same percentage regardless of circumstances’ roll out.

In Haringey where I live the shortfall is £5.7m this year and it is not 10 people affected, it is 36,000 in our borough alone. Some families are looking at a loss of a variety of benefits, including Council Tax to equate a weekly shortfall of up to £246.33.

Haringey is one of the cheapest places in London to live, so if families are unable to live here then social cleansing from more affluent areas is most definitely going to be taking place, if not already.

There are options, the Local Authority could use money from another budget to pay for this shortfall, but in Haringey that budget is already being cut by £86m just like many boroughs in England. Even if the Local Council decided to sell an ‘Old Peoples Home’ this year, what are they selling next year or the year after?

Whilst communities up and down the country figure out how this can all be paid for, ‘King Tory’ and his friends are enjoying their Income Tax Cut and some are not even paying any taxes.

—-
Seema Chandwani is a member of the Labour Left National Committee & Editor for Labour Left Blog

Report details how the BBC buried negative news on the NHS Bill

OpenDemocracy’s ourBeeb project have published a report which details how the BBC has failed in its responsibilities to inform the British public about the truth surrounding the highly controversial NHS Bill.

Titled: How the BBC betrayed the NHS: an exclusive report on two years of censorship and distortion, it gives a thorough account of a silence around the NHS bill within the BBC.

It details the apparent keenness of the BBC to follow the government’s positive privatised NHS spiel (The…Bill will allow GPs to get control … of the NHS budget) and ignore the many reports that tell a whole new, accurate story.

They say that on the day the Health and Social Care Act was approved and passed through the House of Lords (19th March 2012), not one article was published on the BBC’s online news page on the NHS.

Similarly, the BBC failed to report that former Health Secretary, Andrew Lansley, received £21,000 to his personal office from John Nash the then chairman of Care UK – a health firm with a substantial income from the NHS. Nash also founded Sovereign Capital which runs a number of private health firms.

The Daily Mail reported on the business activities of Andrew Lansley’s wife, Sally Low. ‘Low Associates’ which was found to be boasting of its ability to help ‘make the link between the public and private sectors’ – sounds familiar.

Labour MP Grahame Morris said it constituted a “clear conflict of interest” and suggested Lansley’s position was no longer tenable. This still failed to make a ripple of news within the BBC.

A number of unreported stories follow a similar tone including a story from Liberal Conspiracy which reported that the University Hospital of North Staffordshire (UNSH) had been charging A&E patients for any drugs they needed.

The report notes the BBC have refused an FOI request to find out how many complaints have been made about the lack of news surrounding the NHS bill.

The report also highlights a strange influx of reports from the BBC after the NHS bill had safely been passed through the House of Lords.

Besides the live streams on Democracy Live, the climax of one of the most controversial bills in recent history merited not a single article. With the bill safely passed, however, the next day saw a stream of seven articles.

The report focuses on mainly the output of BBC Online, in its news and analysis.

It concludes: “It is not in the government that the strength of the BBC lies – a parliamentary system captured by forces inherently opposed to its existence – but in the British public, the support of which it should rigorously protect.”

The identity crisis of Jon Cruddas

Jon Cruddas may have been asked to lead the Labour opposition’s policy review but the Dagenham MP is not, truth be told, especially interested in policy. ‘What interests me is not policy as such; rather the search for political sentiment, voice and language; of general definition within a national story. Less The Spirit Level, more what is England’, he said, speaking on ‘the good society’ at the University of East Anglia (Cruddas, 2012).

The public lecture series was entitled ‘Philosopher kings? How philosophy informs real politics today’, making contributions from Cruddas and Conservative David Willetts perhaps inevitable. But the utility of philosophy in political battle is not universally acknowledged. ‘Perhaps when they find out what is England they will let us all have the answer’, said Chancellor George Osborne, deploying this Cruddas passage for a little partisan political knockabout. The mockery will have chimed with Labour MPs who worry about whether their new policy chief leading Ed Miliband on an elusive quest for the essence of national identity will prove a particularly direct route to a winning agenda on the deficit, growth, jobs and housing.

Ed Miliband has placed a significant political bet on Cruddas as Labour’s philosopher king. It was not just a bet on the man himself, and his ability to somehow cajole the disparate actors within the byzantine, opaque, and dysfunctional Labour policy review and manifesto-making process into some sort of coherence. It was also a significant endorsement of the Cruddasite disposition about what matters most in politics, a view with which his leader has increasingly come to empathise.

That Cruddas world-view is well captured by his contrasting the state of England, an allusion to his political hero, the 1930s Labour leader George Lansbury, with The Spirit Level (2009), Richard Wilkinson and Kate Pickett’s influential best-seller which was hailed by many on the left as the most important book for a generation. It tells a story through comparative data, painting its picture by amassing graphs demonstrating correlations of various social harms associated with increased inequality.

This enabled Guardian and New Statesman columnists and leftish wonks to declare that they had found the Holy Grail: knock-down proof so that, surely, anybody could now see why the left was right and the right was wrong about inequality all along (Hattersley, 2009) (1). Mysteriously, these factual proofs seemed altogether less convincing for Telegraph or Spectator writers, and wonks on the right proved curiously stubborn in refusing to concede the argument (Saunders and Evans, 2010). This fierce partisan battle over the book’s merits demonstrated what the emerging application of brain science to political psychology would predict: that very few political arguments can ever be settled by appeals to ‘the facts’.

Rather, evidence tends to be used as ammunition to reinforce existing views, while even contrary counter-evidence will very often reinforce long-held views too, once the motivation behind its production is brought in to play. Every quarter’s economic statistics on growth, jobs, and unemployment shows us much the same phenomenon. Any expert analyses of the evident need for austerity measures, or their evident futility, will usually repolarise and rehash the existing debate, rarely bringing rivals together in the disinterested pursuit of evidence-based policymaking. If the facts don’t fit the frame, it is the facts that get rejected, not the frame.

Drew Westen, author of The Political Brain (2007), has characterised much liberal progressive advocacy as demonstrating an ‘irrational commitment to rationality’ in seeking political support through policy arguments, based on a belief that appeals to the evidence are a political trump card. Jon Cruddas would see these research conclusions from political psychology as providing further ammunition to reinforce what had long been his own gut instinct, that for Labour to connect, it needs less of the spirit of the LSE and rather more of that of Lansbury.

As Cruddas put it in the UEA lecture:

Politics for me is not a variant of rational choice theory. It is about base, visceral connections, sentiment, themes and language that grip people; stories and allegories that render intelligible the world around them.

This demands that his party understands politics as being driven by questions of identity as much as interests; to see persuasion as depending more often on stories than facts, and to put policy in its proper place, by understanding that the policy manifesto pledges which provide a necessary route-map of priorities for government will not resonate unless they fulfill a vital symbolic purpose too, speak to ‘political sentiment, voice and language’, so as to explain what motivates a political party and how that is reflected in what it wants to say about the nature of the country which it seeks to govern, and what its ambitions to change it are.

This is the Cruddas starting point: identity matters. And it matters for party and country alike. He sees the 2008 economic crash and 2010 election drubbing as creating Labour’s third ‘great identity crisis’ in not much more than a century of existence, comparable to its lost decades in the 1930s and 1980s.

There is a crisis of belonging in society, with a particular concern for the sense of social and political dislocation arising from the loss of traditional class identities among those who were once solidly Labour. In response to the dizzying changes of the global era, there is a foundational question about national identity, and how the form that it takes may shape the possibilities and contours of partisan political competition.

If Dr Cruddas has diagnosed the identity crisis facing Labour, he feels it much more viscerally and directly than that. His own personal political journey can be seen to represent a living out and working through of the strands, tensions, and contradictions of the Labour tradition in an attempt to discover, or to forge, its contemporary meaning and mission.

—–
This is the intro to a long essay published by Renewal Magazine. The longer version is here.

Council hoping to force jobless to pay council tax

Cornwall Council has released proposals to cut council tax benefit by 30% for all those of a working age.

In the new scheme everyone will have to pay a minimum of 30% of their council tax which means the maximum support a working age person can have is 70%.

It is also considering reducing the savings limit from £16,000 to £6,000, after which you would not be entitled to support.

The proposals have provoked a backlash from Cornwall Anti-Cuts Alliance and the Citizens Advice Bureau (CAB).

Jim McKenzie of the CAB told This is Cornwall that 47% of council tax benefit recipients were of working age. “If you get into arrears of two months you are at risk of the council seeking a liability order at a magistrates court…The issue is how they treat people who can’t afford to pay…””

Chris Gibson from Anti Cuts Alliance said: “…if they wanted to make more money why don’t they target those who can afford to pay a little more instead of hitting those struggling at the bottom?”

The scheme poses problems of how people will find money they just don’t have to pay a proportion of council tax. With so many other cuts to benefits this is just another financial hardship for those who struggle the most.

Councillor Steve Double said: “We appreciate that this is unwelcome news.  What we have to do is find the fairest way to deal with the situation handed to us by the coalition Government which will leave a £6m black hole in the council tax benefit budget.”

The proposals, if accepted, would come into effect no later than 31st January 2013.

The new scheme would affect everyone (bar pensioners) of a working age in receipt of Council Tax Benefit, including: single parents, people on a disability benefit and those on JSA income based benefit.

Where are the big, practical policies behind ‘pre-distribution?’

‘Predistribution’ and ‘Responsible Capitalism’, two concepts now associated with Ed Miliband, are starting to generate an interesting discussion about they actually mean in concrete policy terms.

I’d especially recommend recent articles from Sonia Sodha, Nick Pearce & Gavin Kelly, Paul Hackett and my colleague Tim Page. My own contributions (far less interesting) can be found here, here and here.

The two related ideas have generated much interest, but so far little in the way of ‘actionable proposals’. A point very well made by Paul Gregg, a man who knows a thing or two about the labour market, over at the LSE’s British Politics blog:

The key constraint is that they are indirect effects, and indirect interventions often lack the power to overturn the deeper processes already at work. Will a Living Wage campaign backed by public sector procurement achieve the scale to overturn the steady rise in wage inequality in the UK? Will shareholder activism combined with rules around binding votes for remuneration packages of top executives halt the rise in pay unrelated to firm performance?

As Gregg argues, there is a lot of good stuff in these concepts but more work is required

I think if these ideas are going to have the kind of impact on British public policy than their advocates support, they need to be fleshed out more fully – otherwise they run the risk of generating a lot of light but not much heat.

For example, one key component of ‘Responsible Capitalism’ is the reforming of corporate governance in order to involve more stakeholders than simply shareholders, empower workers and combat both extreme inequalities of pay and the short termism of corporate Britain which leads to a low level of investment.

Take this description in the Independent from Gavyn Davies:

In the US and the UK, the rights of the owners of the firm, the shareholders, are not only seen as sacrosanct, but company directors are required by law to protect them. This gives shareholders a primacy over other groups, such as employees, customers, or indeed the local community from which the firm derives its support services. Flowing from all this, it is claimed by the left, is the short- termism bred by Anglo-Saxon stockmarkets and the takeover culture. It is quite possible to imagine free market economies in which private firms do not operate in this way. In fact, Germany is one such example – a genuinely free market economy, but paradoxically one which requires directors on supervisory boards to represent all the interest groups that come together in a firm, not just the shareholders. The absence of any significant influence from the outside capital markets is said to have encouraged a long-term approach to investment decisions, employment practices, and customer relations. Many in the Labour Party want to see the next government take legislative action designed to import the German system of corporate governance into the UK.

There’s not much there I’d disagree with – involving stakeholders in governance, ending short-termism, etc. But that Gavyn Davies article dates from January 1996.

There is huge potential in the notion ‘Responsible Capitalism’, but for that potential to be realised the rhetoric needs to be transformed into practical policy solutions.

Watch: Israeli PM draws a cartoon bomb at UN

In case you thought people were joking – they weren’t.

Netanyahu’s cartoon showed a bomb with three separate levels — one for each of Iran’s stages to developing a nuke.

The first level accounted for 70 percent of uranium enrichment, then 90 percent, and then a “final stage” attached to the lit fuse.

Harman: Salma Yaqoob was “brave” and “important”

The deputy leader of the Labour Party Harriet Harman gave an exclusive interview to Liberal Conspiracy last week in which she praised Salma Yaqoob’s condemnation of George Galloway.

In the interview she answered questions about Labour’s biggest challenges now, mistakes the party made in government, on leader Ed Miliband, as well as whether Labour should talk about a Coalition with the Libdems.

The rest of the interview will be published here later in the week.

When asked directly whether Labour would welcome former Respect party leader Salma Yaqoob into its ranks, Ms Harman took a deep breath.

She started off by saying that she was certain that “no offer has been made”, but added: “I think some of the things she has done have been very brave and important.”

She added: “I think what George Galloway said about rape was terrible because there are a whole loads of people who have been raped who are anguishing about whether to report it, with a fear and foreboding they won’t be taken seriously. And when you have somebody high profile in the public domain who promulgates the idea that people who report a rape are more likely than not to be making a complaint that is unfounded – that has a terrible effect on people’ preparedness to report.”

She said that Salma Yaqoob’s criticism of Galloway “was important”.

“I thought that is was bold of her to do it from within the party and that was one the many reasons that led her to leave [Respect], then that is very good.”

Ms Harman also said that many Conservative and Libdem members and councillors had joined the Labour party in the past.

She seemed to indicate that the party would find it difficult find a reason to reject Ms Yaqoob from joining Labour if she wished.

“We always are actually looking for extending membership of the party and bringing people to us. People views do change over the years, but we don’t have a special policy for her.”

More of the interview will be published tomorrow.

Labour FINALLY accept that their approach to disability benefits isn’t working

Every single email and phone conversation I’ve had with Labour over the last two years have started with the line “If you don’t accept your part in ESA and that it is NOT working as you hoped, you can never move on. Sick and disabled people will always blame you and will never believe you really want things to change.”

So far, it has been the last major sticking point. Unwilling to say the actual words, we had reached a kind of impasse.

Yesterday morning, in a last ditch attempt to move things along, I emailed Liam Byrne and Anne McGuire. The time for “tinkering around the edges” had passed. Oh how I would like to tell you more, but I was clearer than I’d ever been.

Finally, after nearly two years of lobbying, pleading cajoling and VERY hard Paddington bear stares, with just a few days to go before conference, here are the words I’ve been waiting to hear. Enjoy.

Labour will call on Thursday for a “fast and fundamental” review of the test that determines who is eligible for sickness benefits, acknowledging that the policy the party introduced while in government is not working. Launching a consultation with disability campaigners in Glasgow, the shadow work and pensions secretary, Liam Byrne, will defend his party’s decision to bring in the Work Capability Assessment, which was designed to reduce the benefits bill, but will argue that the system needs to be reformed.

“That experience is telling us now that the test puts a bureaucracy against disabled people. It doesn’t put a team behind them, to help disabled people into work.”

Byrne said he would also be highlighting the combined impact of cuts to disability benefits and services, and argue that they are higher than the new levies imposed on banks.

A discussion paper which will be released by the shadow work and pensions team on Thursday states: “We believe that this government is forcing disabled people to pay for its economic mistakes.” The party has calculated that cuts to social care and disability benefits will total £8.6bn over the course of this parliament.

As if we didn’t feel the above article was enough of a breakthrough for one night, the lead story on Channel 4 News was that of Colin Naylor.

Finally, the country gets to hear of a story where the WCA has failed utterly. Colin lost his life and the inquest concluded that the assessment had been a factor in his death. at last, the country is listening.

I’m off to the US to volunteer for Obama

Readers, coverage on Liberal Conspiracy will be light for the next 6 weeks.

First, there’s the Labour Party conference from this Sunday. I’ll be in Manchester tweeting regularly and maybe writing a few updates from there.

Straight after the conference I’m flying to the other side of the Atlantic. First for a week’s holiday and then to volunteer on the Obama campaign.

I’ll be working in Los Angeles (I know it’s not a swing state, but they do have offices there to coordinate from), and then in Nevada – which is a swing state.

I’ll have some sporadic web access but it will be difficult to update the site regularly. I will be tweeting less too.

In the meantime, Don Paskini will be responsible for the site and Shantel Burns and Sarah McAlpine will be adding to news coverage.

I’ll write more about how campaigning for Obama is going once I get settled in there and establish web access.