Supporting Olivia Blake

At the moment, the Youth Representative for the National Executive Committee of the Labour Party is being contested by two individuals, Bex Bailey and Olivia Blake. Both of them are leading great campaigns, and both of them have shown so much passion that I believe that both would make excellent Youth Representatives for the NEC. However, I wish to use this opportunity to write down some thoughts regarding the campaign, and specifically cite why I will be supporting Olivia Blake for NEC Youth Rep.

The National Executive Committee, or NEC, is the governing body of the Labour Party, which oversees the overall direction of the party and the policy-making process. The NEC is made up of a range of opinion formers within the party, which includes affiliate organisations, trade unions, MPs, MEPs, the Leader and Deputy Leader of the Party, and so on. Crucially, one position on the Committee is reserved for someone to represent all young members, which is one of the most important ways for younger members to be represented by the Labour Party at the national level. Moreover, the Youth Rep will also sit on the national committee of Young Labour, which is the governing body for the subsidiary of the Labour Party. In many ways, this is an important election, but particularly because 2013-2014 will be crucial in setting the foundations for the general election campaign that Labour faces in 2015.

Unfortunately, Young Labour has become laborious and elitist through a combination of complex governing rules and regulations in addition to limited institutional flexibility. One of the most important and pressing issues is that almost all elections are conducted through delegate systems, which means that only delegates get to vote for certain positions, including the NEC Youth Rep. This is hugely frustrating given that regional representatives are elected directly through one member one vote (OMOV). It kind of suggests that direct elections are not only possible in theory, but feasible in practice. An associated problem for the organisations is that communication in general is kept to the barest minimum – if existent at all. For example, information regarding how to submit motions, the locations of previous conferences, and the information for how to become a delegate was kept unclear, which meant that some Labour Clubs found it difficult to organise meetings in time to form proposals, pass motions and elect delegates.

These issues also faces Labour Students, and so both organisations urgently need to deal with them. Otherwise, they could damage the claim that YL and LS are democratically-run organisations. What we need at this time, especially for Young Labour, is a candidate that will open up the processes of decision-making to all members under 27s, which will ensure that the NEC is properly represented. It means that there should be a renewed emphasis on transparency and democracy. One of the ways to do this is to break the elitism that seems to have grappled Young Labour at the moment. This will ensure not only that the organisation is run more democratically, but also ensure a greater diversity of opinion will be heard, fostering further inclusiveness of Young Labour. This, in turn, will feed back into the NEC.

I believe that Olivia Blake is the strongest candidate for this change to happen. Olivia is unconventional in that she is not based in London and did not study the usual ‘Politics, Philosophy and Economics’ at University. Olivia goes to the University of Sheffield and she is studying towards a PhD in Medical Biology. This alone makes her a candidate that will offer a fresh perspective on policy-making, something that has been marginalised to an extent. However, it is not only her background that is impressive, but her entire manifesto. It is detailed beyond reproach, and many of the policies that she cites are ones with which I can identify. These are less about where we stand on the left-right spectrum, which is where we potentially differ. However, we are united in our insurmountable appetite for reform of the structures that govern Young Labour (and, by extension, Labour Students). Some of her excellent policies include:

  • Guaranteed reports to members to ensure that communication and transparency is upheld. This is such a simple, useful policy that I cannot believe it has not been implemented before. I can’t remember when I last heard anything – if ever – from the current national committee, or the NEC Youth Rep for that matter.
  • Feedback sessions in every region of the country to ensure that all young members feel represented. This is another great policy because it will challenge the idea that YL is just based in and around London. It is true that regional Young Labour organisations do exist, but communication between them and the national organisation is not particularly strong or co-ordinated, at least not from where I’m standing.
  • Reform of youth elections to ensure that, in future, all young members get a direct vote in who represents them at the NEC and YL level. This is the bedrock that should sit at the apex of Young Labour. How is it that, in the twenty-first century, we are still electing positions using a nineteenth century system for a political party that is supposedly all about democracy?

These are just three policies that I’ve cited. Her full manifesto is available here. There are so many other things that Olivia wants to achieve that make her a good candidate for reform – including a women’s network, regional liberation groups, more communication online, opening up Young Labour events, and so on and so forth. I’m very proud to be a supporter of Olivia.

Olivia has been a campaigner for Labour for absolute ages, and tirelessly fought the corner for women’s rights, social justice and equality for as long as I can remember. Without doubt, Olivia has been inspirational in many ways. She was the person that gave me the courage to go door-knocking for the first time for the #labourdoorstep and encouraged me, advised me and helped me a great deal since I’ve met her in 2008. Her passion could never be doubted, for Labour in particular, and life in general.

I proudly support Olivia Blake for NEC Youth Rep.

mg

Labour and the EU: From realpolitik to principle?

Since David Cameron called for a referendum on Europe, it would appear that the issue of Europe has subsided somewhat. And yet, there is a distinct danger that the approach taken by the Prime Minister’s opposite number, Ed Miliband, is beginning to create antagonism within Labour. Cameron’s referendum pledge means that the position of the Labour Party towards Europe has been questioned – to such an extent that it is possible that the issue could damage the Party’s electoral chances. This is because Labour’s position is based on realpolitik, not principle. At a time of intense debate about the very nature of the European Union, it is more important than ever that a Labour policy based on principle, as opposed to pragmatism, comes to the fore. First, however, it is worth teasing out why a tension could emerge within the Party.

Let’s rewind time back to the 1960s. The UK was not part of the then European Economic Community, having been snubbed by a veto courtesy of the French. The Labour leadership was not unhappy about this because it saw the EEC as nothing more than a ‘capitalist club’. In 1962, the Leader of the Opposition, Hugh Gaitskell, exclaimed that a federal Europe would mean: ‘the end of Britain as an independent European state, the end of a thousand years of history!’. [1] For Labour, what was at stake here was more than just national sovereignty. Rather, the Party argued that the EEC would further the interests of capitalists alone. For those reasons two reasons, Labour fought for a ‘no’ vote on Europe in 1976, and opposed Margaret Thatcher’s support for the EU in the early 1980s. However, as the 1980s drew to a close, the Conservative Party and the Labour Party switched position. The European project turned emphasis away from a common market, which would be fully implemented by the early 1990s, and instead emphasised pan-European welfare, including employment rights and a commitment to a better standard of living. The Labour Party looked across the Channel and saw that in mainland Europe broadly left-of-centre policies flourished. At this point, Labour opted to support the EU because it has economic and social benefits for the UK. [2]

Back to 2013, and the orthodox Labour support for Europe has come under significant pressure. The pledge by David Cameron to hold a referendum on the EU has caused an EU-induced schizophrenia: first, Ed Miliband rules out a referendum on Europe; second, Ed Balls makes the opposite claim. This confusion suggests that Labour needs to rebuild its strategy on Europe. Most importantly, and probably uncomfortable for some, Labour must call for a referendum on Europe. Once it has done this, Labour will be able to shape the agenda on the future of Europe by asking two questions:

1. What should Europe stand for? There are three principles:

  • Democracy. European democracy should rest with the European Parliament, on the one hand, and a European President, on the other hand. This would ensure national representation through two input-based mechanisms. The EU must do more than preach democracy, it must begin to practise it too.
  • Economic and Social Prosperity. One of the overriding positive impacts of the EU is that it will help to stimulate national economies. This is the major output-based mechanism that needs attention. The EU must be able to do less on a European-wide level, and support national economies instead. For this reason, Ed Balls and Douglas Alexander were right to call for a real-terms cut in the EU budget. The EU should become an association of national economies that supports employment rights and better living standards.
  • Subsidiarity. Power must be devolved to the most local institution possible. This goes to the heart of democratic power and also remains a prerequisite for economic prosperity. This is because it will give European peoples a sense of ownership. All of this means that the EU become multi-level and multi-sectoral – a dynamic system that sees clusters of shared policy-making.

2. How can these principles be implemented? Here are some specific policies:

  • Democratic powers must be based on a directly elected president for the whole of the EU; but the European Parliament should become the sole initiator of European legislation (exceptions would be inter-governmental treaties to be scrutinised by national parliaments).
  • The overall size of the EU needs to be slimmed down through a smaller Commission; the removal of the European Common Agricultural and Fisheries Policies (CAP and CFP respectively); no more moving back-and-forth from Strasbourg and Brussels; and a salary freeze for MEPs and bureaucrats. This will allow for a real-terms budget cut.
  • Resources should support national economies and protect employment rights – this could include a guarantee of apprenticeships, placement schemes and more. This is hugely important to develop cultural and economic ties throughout Europe.
  • To safeguard subsidiarity, we need a more powerful Conference of European Affairs Committees (COSAC), which would meet more often to hold EU decision-makers to account. The UK Parliament should establish a Parliamentary Committee on Europe that brings together MPs, peers and UK MEPs to debate EU issues of major importance. It would be accountable to the UK Parliament, but also send representation to the EU.

This is what Labour must stand for. It must ensure that the principles given above remain at the heart of the European project in order to pave the way for a new European settlement that calls for a slim, dynamic association of national economies and not for a corpulent, bureaucratic union.

mg

Notes

[1] M. Charlton (1983) The Price of Victory, London: BBC, p.274.

[2] I’ve drawn this analysis from a BBC podcast by Analysis, called ‘Labour, the left and Europe’ (29 October 2012).

Pressure on the High Street?

It was not just the fact that HMV announced that it was going into administration that caused me to reflect about the state of British high streets. A few weeks ago, I also took a stroll through Broomhill, in Sheffield, where a countless number of shops had closed and a local coffeehouse was being turned into a Costa. Additionally, I found out my great granddad’s pub had closed down. The stark message appears to be that the high street is slowly dying. What is to blame for this morbid future of town centres?

The changes on our high streets have been accelerated by the economic downturn from 2007 onwards, and probably worsened by the economic policies of George Osborne. However, the long-term cause lies in a much broader shift in consumer culture that has moved from the high street towards larger, out-of-town shopping centres and towards the Internet. Earlier this month, in addition to HMV, we have seen Jessops and Blockbuster go into administration. This follows a number of other businesses including: Woolworth’s, JJB Sports, Clinton Cards, Optical Express and so on. This is a very small and selective list, but it shows that there are a wide variety of shops that are closing down. More generally, the number of town centre stores fell by almost 15,000 between 2000 and 2009 with an estimated further 10,000 losses over the past couple of years. [1] Without doubt, traditional high streets are in decline, which has seen the emergence of ‘ghost towns’ and ‘clone towns’ across Britain. [2] It means that, first, our high streets are dying and, second, those that remain all look the same, with a generic number of national outlets.

There are those that have little qualms about the decline of shopping in town centres; if anything, ‘clone towns’ have made shopping more convenient (you know what you’re getting from your Starbucks and your H&M wherever you are across the country), and better still, online shopping means you don’t even need to leave the house (hush about the tax avoidance from the likes of Amazon.co.uk though). Ultimately, however, high streets do matter. This is not just about nostalgia for an age of butchers, bakers and candlestick makers; this is about a vibrant local economy (although I do love a good cake). The problem is that national retailers suck out economic capital in town centres and take it straight back to their headquarters. Rarely do profits return to the local economy. The growth of tax avoiding retailers has further reduced the tax base for investment, which is further exacerbating the problem. Whether town and city centres are labelled ghost towns or clone towns, it damages the local economy. Communities become dependent on state-led investment, something which would be less likely in a locally independent economy where small- and medium-sized businesses work interdependently. [3]

A more fundamental point, however, is that British high streets are about public space. The space of the town centre is becoming marginalised and soulless – which may sound rather fuzzy, but is based on the idea of social capital. The problem facing our high streets has surpassed retail. It is also about our ability as citizens to contribute to the public spaces we occupy, which suggests that we need to reclaim town and city space. In other words, strong town and city centres matter because they contribute towards a dynamic economy, and they also help to strengthen and maintain a sense of social capital. We must recognise that the role of high streets has changed from a pre-dominant retail role towards one that should emphasise a social one. It entrenches a sense of belonging and localism, which is preached by both the main parties in their own ways [4]. As Jan Gehl points out:

Wanting to go into town is different from wanting or needing to shop. It is about an experience. It is about sociability and relaxation, creativity and being part of something you cannot get at home or work. [5]

To echo the points made by Mary Portas’ independent review from 2011, high streets should be bustling with people, services and jobs. They should be vibrant places that people choose to visit. They should be destinations. This is not about nostalgia – it is about social capital and sustainable economic growth.

The question, therefore, revolves around how we can improve the confidence and strength of high streets. ‘Localism’ has become a key word for this to happen. Local councils have always been marginalised in the British political system, for a range of reasons that go beyond this article’s remit. The broad point, however, is that local politics must matter to people; and the best way to do this is to empower local councils. [6] Local councils need to be at the heart of local decision-making, which includes the local economy – something which has been hoarded by central government for too long. Councils need to think more creatively about parking spaces, improving public transport and improving consultation with local businesses. The success of Business Improvement Districts is one important development (mechanisms where local businesses contribute to joint business plans), which demonstrates that working together is an important dynamic of the future. [7]

In terms of economic policies, a number of choices are available:

  • First, the model of business rates is out-dated and out of proportion. For example, the business rates for an ASOS distribution centre in Barnsley is around £40 per square metre; for a unit in a Rochdale shopping centre, this is £1,080 per square metre. This has led one commentator to question if business rates are taxing the high street out of existence. Business rates need to change.
  • Second, big businesses need to be regulated so that smaller, independent shops can grow. A diverse high street means that large supermarkets and hypermarkets must be limited in space and size, and regulated in terms of products. Changes in planning law should reduce the power of the likes of Tesco, Asda-Walmart, Morrison’s and so on. [8]
  • Third, the introduction of a ‘Small Business Saturday’. This has been introduced in the United States, and proven to be highly successful. Figures suggest that more than £3.4 billion were spent that day in 2012. This idea was sponsored by social media and supported by celebrities. It suggests that there is a lot of potential for this to work in the UK.

These are just three ideas, and many more should be looked at – reducing red tape, creating local enterprise zones, and setting up a Post Office Bank. However, none of these measures will be enough. The national economic policies of the current Coalition government are preventing the growth that is desperately needed. Austerity is simply not working. We are now on the brink of a triple-dip recession – an unprecedented and bleak outlook for the future that must be tackled. All of this makes the emphasis on local, sustainable growth even more important.

mg

Notes

[1] Department for Business, Innovation and Skills/GenEcon (2011) Understanding High Street Performance, Leeds: GenEcon, paragraph 21 (available here).

[2] See New Economics Foundation (2005) Ghost Town Britain, London: NEF (available here), and New Economics Foundation (2005) Clone Town Britain, London: NEF (available here).

[3] See, for instance, New Economics Foundation (2002) The Money Trail: Measuring the impact on your local economy using LM3, London: NEF (available here).

[4] The Conservatives, for example, have focused much on the ideas of the Big Society: see among others: D. Cameron (2011) Speech on the Big Society, London (available here). See also: Conservative Party (2009) Control Shift: Returning power to local communities, London: Conservative Party. The Labour Party has focused on One Nation as its main alternative starting point for localism. See J. Cruddas (ed.) (2013) One Nation Labour: Debating the future, London: LabourList (available here).

[5] J. Pehl, quoted in M. Portas (2011) The Portas Review, London: BIS, p.15 (available here).

[6] See J. Wilson (2012) Letting Go: How Labour can learn to stop worrying and trust the people, London: Fabian Society.

[7] Portas, p.21.

[8] New Economics Foundation (2011) Ten Steps to Save the Cities, London: NEF (available here).

Should Labour call a referendum on the EU?

Please note that this article was written for, and originally appeared in, Left Foot Forward, which describes itself as a ‘political blog for progressives’. The article was published on 07 January 2013, and is available here.

This month marks the fortieth anniversary of our membership to the European Union. Forty years on, and the UK has come to a crossroads with its relationship towards Europe. As the Conservatives are becoming increasingly outspoken about their distaste with the European project, it is time for Labour to confront the challenge of the EU. But, in addition to driving positive, constructive change at the heart of Europe, Labour must acknowledge that a referendum on the EU has become inevitable – even if this is many years away.

There is, of course, considerable contention of this point, and some argue that a referendum should not be called. The most cited argument is that a referendum could lead to a British exit of the European Union. This is not an argument against a referendum; it is an argument against democratic choice. It is true that referendums, in general, should be called sparingly and cautiously because they are not an effective resource in a diverse representative democracy such as the UK. However, to say that a referendum could lead to a result that you do not like is not valid. It’s called democracy.

So, why is a referendum needed? The most obvious point is that it will give the British public a choice in its support of Europe. The British want a referendum, so it is only fair and democratic to give them one. The European Economic Community (EEC) has been fundamentally transformed since the 1970s. It is now a European Union of 27 countries, with a wide range of institutions and decision-making powers. Moreover, over the coming four to five years, we will begin to see a new European settlement of powers. The unprecedented changes since the 1970s imply that the British public need to be given a choice in a reformed relationship with the European Union. The fundamental point is that a referendum on Europe will allow the British public to have a frank and open discussion about Europe; it will settle our membership for a generation. This point is particularly important because it underpins what politics is all about: debate, contestation, argument and persuasion. Europe remains a hotly contested issue, and it needs to be confronted directly. The spectre of Europe will haunt British politics until a referendum is called. [1]

This raises the issue about timing. There is an argument that, if a newly elected Labour government calls for a referendum, and loses, it would destroy a left-of-centre government, and plunge the entire party into a crisis. The government would probably fall. This argument, raised by David Clark, is indeed very powerful. This is a plausible scenario, but it rests on the assumption that a referendum would occur in 2016, which is not likely. It is many years away because a reform of the European Union will take as many years. We cannot vote on Europe before it has settled itself; it would give us more questions than answers. In order to give the British people a genuine choice in Europe, we must wait (i) until the Eurozone crisis is well and truly over and (ii) until a range of reforms of the EU have been implemented (reforms that would make the EU more democratic, economically rigorous and so on). Once both of these have been consolidated, it will be possible to call for a referendum. The new European settlement will not crystallise until some point in the next parliament, i.e., between 2015 and 2020, and more importantly, it will be more likely to occur in 2018 or later.

In the next five years, the Labour Party must make the case, first, for a reformed European Union, and second, for British membership of that Union. As described previously, Labour should use the growing momentum to call for a Convention on Europe’s Future, in partnership with other European political parties and leaders. A set of pan-European reforms is desirable across the continent. Once these have been agreed, it will be time for an in/out referendum.

A reform agenda for Europe, with a referendum attached at the end, is the strongest case that a pro-European government should make, and one where a ‘yes’ campaign can win. YouGov analysis has shown that, whilst the public currently seem to favour withdrawal, this is not very clear if the EU is reformed. Indeed, there is a strong case to be made for Europe. A frank and open discussion will re-focus debate away from the often superficial eurosceptic – or perhaps ‘eurocoward’? – arguments in favour of the more considered pro-European arguments. Pro-EU sentiments will not appear by magic: they must make a case for Europe that has been crowded out by a vehemently Eurosceptic media. Is it possible to make such a case? There is precisely such an opportunity, and pro-Europeans should not be afraid to make it.

Let’s take the case of the eurocowards: They believe that the British cannot cope with political engagement; that we do not have the strength to carry the European ship. They believe that we have nothing to offer to Europe and that we are better off hiding alone. Here is the vision of the eurocowards: an offshore, de-regulated tax haven which would be a pole for free enterprise in a global race. Could anything sound more preposterous? Pro-Europeans must argue that we can (and, more importantly, should) have a constructive relationship with our neighbours, and that we can lead the European project. Pro-Europeans must make the case that Britain has something to offer Europe just as much as Europe has something to offer the UK. Whereas eurocowards want us to play no part in the world, we believe in stepping out into the world and playing a part in it. Of course, there are choices to be made. The British public must learn that it cannot free-ride on the economic benefits of Europe without any commitment to Europe. That is not to say that pooling our resources cannot play to our benefit, as analyses do show.

So, should Labour call for a referendum on the EU? Yes, it should. But this referendum cannot take place immediately. Ed Miliband should take leadership of the debate by accepting a referendum for the end of the next parliament, which will (i) settle the question of a referendum and (ii) allow the EU to be given a chance to reform itself. Until then, the British political elite must play a constructive part in shaping its European future.

mg

Notes

[1] There is, of course, the added tactical reason that is often touted: it will split the Conservative Party and marginalise the influence of UKIP. I’m not sure these tactical reasons are particularly valuable: former UKIP voters are likely to return to the Conservatives; and the Conservative Party could just as much unite as divide over Europe.

The Living Wage: Supporting living standards, economic prosperity and consumer freedom

The Living Wage Campaign is a laudable campaign that seeks to protect and strengthen employee rights. The LW will be a key factor for economic recovery and crucially helps to re-balance our economic system in favour of the citizen. A decent, living wage has three positive claims: first, it rests on a moral claim that people should not be treated as cheap commodities; second, it rests on a economic claim that it will increase growth through greater consumer spending; and third, it rests on a political claim that will allow citizens to spend their money more ethically.

Living Standards

The Living Wage Campaign was founded on the principle that work should be rewarding, and that it should bring dignity. Consequently, wages should be enough to provide families the essentials of life. [1] The campaign has roots that go back to the late nineteenth century, where one MP wrote: ‘A living wage must be sufficient to maintain the worker in the highest state of industrial efficiency, with decent surroundings and sufficient leisure’. [2] A living wage is important because the minimum wage is not enough for a sufficiently comfortable life in the twenty-first century. This is not about luxury, it is about protecting living standards:

  • The Living Wage has had a colossal effect on reducing in-work poverty. Since 2001, over 45,000 families have been lifted out of working poverty, directly as a result of the LWC.
  • Relatedly, the LW contributes to a reduction in fuel poverty. A living wage would cut the horrifying situation where people have to choose between their radiator and their dinner (especially at a time when fuel bills are going up).
  • The LW is about increasing the health of employees. A higher wage means less stress, and could ensure that the money is spent on better quality food, goods and services (with obvious health benefits).
  • Being paid the minimum wage prevents parents from seeing their children at weekends because they end up with two or three jobs to make ends meet. The LW intends to end such a situation, ensuring hard-working parents’ strain is eased through wage security.
  • Better living standards will have an effect on the economy: a happier, healthier workforce will lead to higher productivity, fewer ‘sick days’ and a greater sense of social cohesion. The modest effect that the LW will have on reducing inequality is vital. [3]

Economic Prosperity

The last three bullet points of the above section have already hinted that the Living Wage plays an important part in prosperity. This is something that goes beyond the individual level, or as the Mayor of London puts it: ‘Paying the London Living Wage is not only morally right, but makes good business sense too’ (quote from LWC Website). Independent studies have shown that 80 percent of employers believed that the LW increased employees’ quality of work, and absenteeism decreased by approximately 25 percent. Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70 percent of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer. [4]

The benefits for the economy are important for the macro-level too. Higher wages allow for greater consumer spending. Workers’ spending on consumption accounts for roughly half of GDP in advanced economies. Lower wages means less spending, and hence less demand for economic output. Unless this is more than offset by new investment or exports, total output will contract as a result of a wage cut, and employment will fall. [5] Unfortunately, the UK is not export-focused. Combine that with government cuts and decreases to global investment, and we have stagnation in economic output (enter the double-dip recession). A Living Wage could counter some of these negative effects.

Citizenship

Ultimately, giving the employee more economic power can only be a good thing. A massive problem for the low-paid is that their choices, in economic terms, are diluted. They are forced to shop in the cheapest possible places, without any regard to the ethical or moral outcomes. Plenty of people do not buy goods with a Fairtrade mark simply because it is more expensive. Should our moral and ethical choices be limited because we are paid less? No. [6] I am not saying that we should all be paid enough so that we can go to Waitrose, or that everyone should buy free range eggs. But surely there is a problem if shoppers buy unethically because they are paid unethically?

A link between ethical consumption and the LW definitely exists. The LWC is not just about individual changes to eating more healthily, but also about wider societal efforts to create a more ethically-balanced economy. Higher wages means that spending power of the consumer could be directed towards more ethical goods – precisely those Fairtrade, free range and environmentally-friendly products that cost marginally more. Wages affect attitudes to shopping. As one commentator puts it: ‘spenders of the world, unite!’. [7] The LW could enhance exactly this sort of behaviour to create a more ethically-based capitalism.

Fighting For A Living Wage

A living wage has unparalleled benefits for living standards of employees, benefits the economic growth of this country, and can ensure that citizens become more active in their consumer choices. There are other reasons for introducing the LW. One is that it would reduce the need for taxpayers to effectively subsidise employers who pay their staff too little, because state benefits, such as working tax credits, would be reduced.

It is hugely misleading to say that the Living Wage would ‘kill business’. For most businesses – and especially in banking, IT and construction – implementing the LW would represent less than a one percent rise in overall costs; in other industries the costs are a few percentage points higher, but a phase-in could mitigate any harms. [8] Indeed, one way to increase the take-up rate would be to offer tax-cutting incentives to small- and medium-sized businesses for introducing a living wage.

Analysis has also shown that simply reducing income tax rates – touted as one alternative to the LW – is poorly targeted and cuts the British tax base even further, which would perversely increase debt (cut income tax but pay tax credits equals higher debt burden).

For all those reasons, I’m very happy that the Labour Party has announced its unequivocal support for the Living Wage and that Sheffield Labour Students supports this campaign. I’m also proud to support the Living Wage Campaign in Sheffield more generally. And I’m more than happy that Sheffield City Council will introduce a living wage for all its staff.

mg

Notes

[1] D. Hirsch and R. Moore (2011) The Living Wage in the United Kingdom, London: Citizens UK, p.4. Report available here.

[2] Ibid., p.4.

[3] For instance, see R. Wilkinson and K. Pickett (2009) The Spirit Level: Why equality is better for everyone, London: Penguin.

[4] These figures are drawn from the Living Wage Foundation. Click here for more details.

[5] J. Stanford (2008) Economics for Everyone, London: Pluto Press, pp.158-9.

[6] One very interesting example of this in action was Hugh Fearnely-Whittingstall’s Channel 4 three-part documentary, Hugh’s Chicken Run, from a few years ago. Here, local residents learnt about free range chicken, but some residents simply could not afford to eat ethical chicken – even if they wanted to.

[7] D. Jeffery (2012) ‘A Call to Arms: Spenders of the world, unite!’, Canvas 3:6. Article available here.

[8] M. Pennycock (2012) What Price a Living Wage? Understanding the impact of a living wage on firm-level wage bills, London: IPPR. Report available here.

The Tragedy of European Union

For someone with a German heritage and who regards himself as a social democrat, it is with a heavy heart that I have become sceptical about the future of the European Union. Europe is a place very close to my heart – the cafe culture, the sense of shared values and epistemic communities, the diverse range of identities, the beer, the excellent little patisseries and bakeries (just food in general really) are truly wonderful European things. In other words, I love Europe. But I believe that the dream of European Union leaves me, more and more, with a sour taste. This is particularly soul destroying given that, around 14 months ago, I was full of enthusiasm about a closure of the EU’s ongoing crises. That enthusiasm has waned, and no one has taken up European leadership like I had hoped.

Right now, there are two colossal problems facing the EU: first, the eurozone crisis, which has spiralled out of any proportion imaginable. Second, any sense of democratic input to decision-making has withered away. In other words, the input legitimacy of European institutions and the output legitimacy of European policy-making have vanished, which have turned the EU into an illegitimate beast. [1] Here’s some more depth:

  • Output Legitimacy. The output policy-making role of the EU has not worked. People are usually relaxed about the authorities so long as they do their job well. The EU, however, has spectacularly failed, which means that the preferences of European populations have not been enacted. Ergo, there is an output-based legitimacy deficit. It is not just that the Euro has been a disaster: the Common Agricultural Policy is uncompetitive, the Common Fisheries Policy has culled fish stocks, and bureaucrats are wasting huge resources by travelling to and fro from Brussels to Strasbourg (for not doing all that much). These are just three examples of many. Policy-making in the EU is simply not working.
  • Input Legitimacy. Mario Monti in Italy and Lucas Papademos in Greece were both installed as heads of government without being elected. These are very stark examples of how the European Union has undermined the principle of democracy. The European Commission (EC) and European Central Bank (ECB) have also imposed austerity measures on other governments, such as Portugal and Spain, without a sense of accountability. Unelected leaders have begun to govern across the continent. So, the contribution of the demos to policy-making (through elections) has been destroyed, which has caused an input-based legitimacy deficit.

Using the idea of legitimacy shows us how deep the problems of the European Union have become, and tells us something troubling about its future too. Current reform proposals do not intend to increase input legitimacy, but rather hand more power to the ECB. Furthermore, the discourse of ‘austerity’ and ‘marketisation’ (that has until now failed to work) is still a course that the EU is pursuing regardless of its consequences. The crisis is going to get worse. The dream of a European union has turned into a tragedy, which leaves us with two options: either the EU must be dismantled, or the entire system must be rebuilt from scratch.

The big question is this: what should Europe be for? The European Union has achieved a great deal, not least safeguarding peace and ensuring economic growth through the single market. It has added to the global power of all member countries through the EU as a trading bloc at the World Trade Organisation, and made an impact on joint foreign policy initiatives. Finally, the EU encourages the spread of democratic values, at least in principle, through the European Neighbourhood Policy (ENP). These values should be maintained, but the priorities must change. First, the EU needs to do more than preach democracy, it needs to practise it. Some examples include a directly elected president, a Commission drawn from the European Parliament, and the EP itself to be given more powers. Second, the EU should be guided by two policy-making principles: economic prosperity and subsidiarity. This means that the single market must be protected and the EU budget must be reformed – far less money must go to the CAP and other protective measures. Instead, the EU should provide investment for national economies and support the spread of knowledge (fostering apprenticeships, training, university funding, and so on). These two areas of reform point to one thing: a looser relationship between its members. We must turn away from ‘union’ towards a ‘partnership’. The EU must be governed democratically, through a consort of a president and strong EP, and its focus must be economic growth and educational investment. If the EU cannot reform itself into a democratic, economic centre, then it is doomed to fail and its members should consider a hasty leave.

At this point it is worth mentioning the British angle. British interests are closely linked to that of the European market: it accounts for 54 percent of British export alone. This means that we have a clear interest in shaping European institutions. Additionally, Britain benefits hugely from the bargaining power of the EU trading bloc at the WTO, and even in other areas of foreign policy. To go it alone would risk marginalising British influence on the world stage – politically and economically. As David Clark summarises very well: “Britain will stand little chance of remaining influential at a global level if it cannot be strong and influential in its own neighbourhood”. [2] Ultimately, there is no halfway house with the EU, although this is always something that Britain has craved. [3] Britain needs to take a decisive step and, whilst I’m probably being naive, I have hope that the United Kingdom can take that decisive step to lead Europe – because sitting in the ‘EU waiting room’ has become untenable, and leaving the European project would be an act of national defeatism.

There are three key things that must happen. First, the European project must be democratised, which means that the EU must ‘slim down’ its priorities and reinvigorate the principle of subsidiarity. Second, policy-making must move away from neo-liberalism towards decentralisation and fostering equal opportunities. Third, and most importantly, EU members must be given a referendum on membership once the new constellation of decision-making has been settled, no sooner or later. The combination of these three things are the last chance that the EU has to become a legitimate focal point for democracy and economic prosperity. If the EU fails on this, then I would prefer for Britain to leave the EU (and, indeed, for the entire project to take the final bow). [4]

mg

Notes

[1] Legitimacy here is based on Fritz Scharpf’s definition of: i) input legitimacy as reflecting the will of the people, derived from their authentic preferences and a sense of proceduralism, and ii) output legitimacy, which means that political choices are legitimate if and because they effectively promote the common welfare of the constituency in question. See F. Scharpf (1999) Governing in Europe: Effective and Democratic?, Oxford: OUP, p.6.

[2] D. Clark (2012) ‘Labour’s Next Foreign Policy’, in J. Denham (ed.) The Shape of Things to Come, London: Fabian Society, p.111.

[3] A. Gamble (2012) ‘Better Off Out? Britain and Europe’, Political Quarterly 83:3, pp.468-77. Also, anyone know current policy on the EU? It’s all very confusing with the government: first Cameron vetoes policy proposals to save the EU, then Osborne demands action to save the euro.

[4] These are some hints as to the future direction that the Labour party must take when they are thinking about their stance on Europe. It does not pay to call for EU budget cuts only to humiliate David Cameron – Labour must spell out an alternative, and this little article hopes to show one way towards a social democratic alternative.

At Conference

Monday, 01 October at Manchester Piccadilly. It was raining. I had a searing headache. Worst of all, I have had less than three hours sleep (again). On the whole, I have been feeling pretty deflated about my life for weeks now (cue the violin). I feel this preamble is necessary, even if personal, only because it set the scene for Labour’s Conference. I wondered around Manchester somewhat aimlessly until I finally managed to find Manchester Central, which was, as it happened, a huge conference centre. At that point, my despondency was matched by nervousness – I had never been to Conference, and had no idea what to expect. Then I realised that I probably ought to give some air of confidence and purpose so that I would earn some kind of respect (and possibly dignity). Equipped with my faux bonheur, I went through security.

Seconds later I bumped into Jon Cruddas and walked past Dennis Skinner. PAs were rushing past me with their iPads. It was strange how quickly I had passed into some kind of red bubble of politicos. I walked as briskly as I could, pretending I knew exactly what I was doing. I entered a large hall full of stalls. Luckily, Peter Hain was just beside me, so all the attention was on him and I was able to pass by rather quietly and avoiding a barrage of leaflets. At this point, my nerves had decided to leave the pit of my stomach and were replaced by butterflies of excitement. I continued through the hall to take a look around, but before I took anything in, I realised I was late for the scheduled speech of Ed Balls.

Once through the double doors to the Main Hall, I was in total darkness and heard a slow, sad and echoing voice. Very concerned, I turned to my left and saw a man dressed in a blue suit (which only added to the surrealism). He directed me towards a staircase that I hadn’t seen from the corner of my eye. I went up and took my seat, listening to the echoing voice of a councillor and waiting for the Shadow Chancellor. And waited. 40 minutes late, Chuka Umuna took to the stage in a short, low key speech, before handing over to Ed Balls. The Shadow Chancellor’s speech was good, I thought. Balls isn’t the most charismatic man in the world, but his speech was sensible. I was more than happy with his assessment of what was needed for the British economy: a growth strategy through real infrastructure investment. The speech was shorter than I expected, but then again, I had no concrete idea of what to expect.

After his speech, I deftly flicked through my fringe guide and walked as fast as I could to one of the large meeting rooms next to the Exhibition Area. There was nothing faux about my sense of purpose this time: I had every intention of securing a free lunch at a fringe event. As luck would have it, I managed to get into a high profile one featuring Danny Finkelstein, Alastair Campbell and Lord Mandelson. Plus a free buffet lunch and coffee. The talk was really interesting, where Campbell came across very honestly about why Labour lost the general election in 2010. With anti-depressants finally in my veins thanks to the coffee, I was much more intrigued by Conference and scurried all around to get into discussions with people. I ended up in a long conversation from someone from the Howard League and their work to reform penal law. I also saw Alastair Campbell on a rowing machine. That was surreal, if slightly amusing. Sadly I couldn’t speak to him – others were eagerly haggling for his attention while he tried to catch his breath. After an hour and half of swooping around, the effect of the coffee wore off, which meant that my temporary good mood also decided to bow out. Bored, I went back into the Main Hall. Failing to concentrate, my mind played all sorts of gymnastics in my head. Changing tactic, I got out my fringe guide to coax out my earlier excitement at some of the events I wanted to go to: debates, panels, talks, discussions, speeches… All top stuff, although the only one on available on Monday at 4.30pm was an event on social media effectiveness full of older members of the Party to get some tips. Sigh. Finally it turned 6pm and I dashed off to meet my friend. We went for a meal at reliable Whetherspoons and ended the night by going to a left-wing bloggers’ karaoke party. A geeky, strange affair – geeky because of the bloggers, strange because at one point I heard Owen Jones singing to his heart’s content. It was 2.30am when we finally got home.

The following morning at 8am, I sat in the Hilton Hotel listening to the British Humanist Association. My free croissant and coffee were accompanied by a throbbing headache. At one point I wasn’t sure whether or not it had been worth getting up at 6.45am. My friend obviously didn’t think so, who decided to rock up at 11am, by which point I had been to two fringe events and had (another) coffee with a friend (who is, bizarrely, a veryactive Tory – she just loves conferences and arguments, I concluded).

At 2.30pm, it was time for the Leader’s Speech. It was fantastic. It was well-presented, well-thought-out and impeccably well-timed. It really delivered on everything that it needed to. Most importantly, a good speech is what I needed to reinvigorate my waning passion for politics that gripped me recently. My friend, and all the other people around me, were buzzing. We have a Leader of the Opposition who has the very real opportunity to become prime minister. Of course we were all in the Conference bubble, so it could all be twaddle. But I went to a fringe event afterwards where Tim Montgomerie, the ConservativeHome blogger, praised Ed Miliband. He thought the Tories were in real trouble. All other panellists – journalists, academics and shadow ministers – were genuinely impressed. Most of Tuesday evening was spent at fringe meetings going over One Nation Labour. I met my friend later too, and ended up staying out until 3.30am in discussions with various bloggers. At one point Hugh Grant walked past me to go to the toilet. CLAIM TO FAME.

On Wednesday, the fringes carried on. I ended up meeting Will Straw and a couple of other figures. Then I saw a friend to discuss a student policy network. My enthusiasm for all things politics was slowly making a comeback. The faux bonheur was almost entirely replaced by genuine (even if temporary) good spirits. We had lunch together and then I went to a fringe event to hear about the consequences of One Nation Labour for the British economy – with Polly Toynbee (who went on tribalist rants against the Tories, leaving me unimpressed) and Maurice Glasman (excellent speaker, complementing One Nation Labour with ‘One Nation Economics’ very well). After that event finished, I rushed back to the Exhibition Area to get into the next fringe meeting about environmental sustainability and economic growth. Chuka Umuna was there. As was free wine. I got chatting to a student from York University, who seemed very nice (but wouldn’t shut up when the panellists were talking, so our friendship was short-lived). 7.30pm and slightly tipsy, I stumbled out the conference centre and met my friend for dinner.

Last night of Conference meant that there would be a massive night out, organised by Labour Students. The most controversial moment came when Labour Students announced the raffle prize: a signed copy of A Journey, by Tony Blair. Half the room booed ferociously, the other cheered with equal vigour. It was interesting, if only because everyone had cheered in unison earlier in the night when Things Can Only Get Better blasted through the speakers.

All in all, I enjoyed Conference. The first day not so much. The atmosphere in general seemed a little bit anxious, and definitely not enthusiastic (regardless of my personal attitude). The Leader’s Speech smashed it though. Tuesday evening and all of Wednesday was full of vibrant buzz and ideas. Thursday morning I arrived in Sheffield with a renewed sense of optimism that Labour will get things going for the whole country.

mg