Tag Archives: equality

Lord Smith of Clifton writes: trends and tendencies in contemporary UK politics and the future of the Lib Dems

(Preamble: Trevor Smith joined the Liberal Party in 1955 when it had five MPs; he fears he may die with the LibDems having the same number!)

The Lib Dems are in a very serious state, possibly facing meltdown of the kind experienced by the Canadian Conservatives some time ago (though they managed a spectacular come back), or the Canadian Liberals in last year’s elections. The burning question is how, at the very minimum, to limit the electoral damage and hopefully to revive the party’s fortunes.

A starting point is to recognise the turbulent condition that has characterised most party systems in the western democracies for some time. Voter alienation resulted from the dramatic loss of public confidence in the ability/integrity of political elites. This has prompted a perceptible lurch to the Right in many countries, including such notable social democracies as Holland. The UK has not been immune to this. New Labour was the most obvious symptom, encapsulated in Mandelson’s phrase – “we are intensely relaxed about people getting filthy rich”, as Blair has succeeded in unashamedly doing for himself since leaving office. New Labour also presided over the continuing growing gap between rich and poor. The drift Rightwards was also seen in the thrust of much of the argumentation in the Orange Book, written by influential LD MPs. The Tories, of course, have always had a significant number of far-Right MPs, – especially the ‘Flag, Faith, Family’ brigade – whose influence waxes and wanes over time, but who are currently becoming more vociferous in the light of the Eurozone crisis.

Where does this place the future of the LDs? We must undertake a tally of our strengths and weaknesses and must not flinch from doing so. The LD Leadership should not seek to stifle this – not least because it can’t. The Labour and Tory parties are engaged in public debates about policy, which are neither particularly convincing nor edifying. But the high rhetoric/low substance surrounding Cameron’s ‘Big Society’ (but no Big Deal!) musings and the oxymoronic (pun intended) nature of the advocacy for ‘Blue Labour’ should not detract LDs from arguing robustly among themselves about the future direction of the party. Such a debate is essential if we are to prepare for the future.

First, at the outset, we must fully recognise the toxic effect of the U-turn on tuition fees: it is as indelible a stain on us as Iraq was on Blair/New Labour or as the treatment of miners was on Thatcherism. There are no mitigating arguments that can be prayed in aid to dispel the sense of public betrayal over tuition fees. Compounding the situation is the stark fact that the new fees system is too complicated to convey easily for general consumption – and in itself that is bad politics.

Second, in Coalition, LDs have allowed the Tories to assume too much of the initiative especially in policy areas where we had earlier set the pace. Prior to 2010, for example, Vince Cable had established his unassailable authority on a whole range of economic issues: unsustainable public and private debt levels; excessive remuneration packages in the big corporations; the inadequacy of banking regulation; and the monopolistic position enjoyed by Rupert Murdoch in the mass media. That considerable advantage has been allowed to be largely squandered. Tackling fat cat pay has now been adopted by Cameron and Osborne and by Ed Miliband. They are all ‘Johnny-come-latelys’ to the problem: the Tories are unconvincing converts, while the Blair/Brown governments positively refused to address the issue, which had become increasingly blatant during their watch. We’ve let both pinch our clothes and it will be difficult to recover our previous unique position. Cameron’s latest proposal to give shareholders more control over remuneration is far too weak; the boards of the institutional shareholders, who control the votes, are as steeped in fat cat greed as elsewhere in commerce and their record (e.g. insurance companies successive pension scandals) is not unblemished.

Third, Nick Clegg fought the last Election promoting the notion of “Fairness” as an operating political principle. The Coalition’s adoption of steadily raising the income tax threshold and pupil premium is consistent with this, but they have to be seen alongside the Government’s fiscal policies that bear most heavily on the poorest and particularly women and thus will have far greater general impact.

I could go on but these examples are enough by way of illustration.

In our stocktaking, we should ask what effect have individual LD ministers had on policy-making of a distinctive LD kind. We have not resisted Michael Gove’s emaciation of local authorities’ involvement in education in England with the quangoisation of schools through a massive expansion in the number of Academies. Andrew Lansley (if we are foolish enough to let him) will have poisoned the NHS with a massive injection of private marketisation. When Lib Dem ministers demit office, what foot prints will have been left of which they can be proud? In these two policy areas LD ministers seem to have exercised little or no clout.

Since May 2010, the position of women has deteriorated both in terms of lower-end job prospects and representation on the boards of major corporations. Lynne Featherstone, the LD minister for women, should say what, if any, policies have been initiated to deal with these two problems.

We should ask ourselves what the noticeable Lib Dem impact has been on broad areas of Government policy not covered in the Coalition Agreement, and in too many areas it is clear that we have been out-manoeuvred by our Tory partners in Government. True, we are the junior partners but we should not be pushovers – too much has been conceded to date.

For example, in the areas of Defence and Foreign Affairs – where we have ministers – there is no public evidence of any obvious LD influence in the conduct of policies; indeed, quite the reverse as in the case of the employment of Cameron’s EU veto. At best, there has been acquiescence. And, yet again as with the economy, our internationalism has been squandered – a unique selling- point over decades. How can we recover this?

What steps should now be taken to protect/re-assert our profile/ratings?

First, we should acknowledge the tuition fee debacle, and demonstrate that our remorse over fees is not as fragile as our original commitment against them. To this end, we should fight for a substantial reduction in fees now and, very importantly, ensure this happens before the 2015 general election. A post general election reduction could be met from the savings from abandoning Trident. (We assume that’s still LD policy but wouldn’t bank on it!).

Secondly, LDs should make a firm commitment significantly to reduce the gap between rich and poor that has been growing under successive governments over the past three decades. This Government is reforming welfare payments to save public funds, reducing welfare dependency, as well as “idleness” among the poor. Any future government with formal Lib Dem involvement or support must address the other end of the spectrum – the idle rich, to which end the ‘mansion tax’ or some variant should be re-visited.

Thirdly, we must also state LDs will tackle three other glaring inequalities: gender, ethnic and regional.

As we’ve said, the position of women continues to deteriorate and this must be reversed. For example, there must be much more childcare provision for working parents, while consideration of the introduction of quotas on the boards of major corporations as has been successfully accomplished in Norway. It’s clear the recommendations of the Davies’ Report, that called for FTSE 350 boards to have 25% women membership by 2015, are not being taken seriously enough by business generally, and neither the ratio nor the date look like being achieved.

Similarly, it is abundantly clear, in view of the appalling slowness to date, ethnic recruiting quotas must be introduced for a defined period of, say, ten years for the police services; this policy has worked very well in remedying the Catholic/Protestant imbalance in the Police Service of Northern Ireland and should be emulated in Great Britain. Quotas are a very effective method of remedying ingrained institutionalised bigotry, bias and prejudice.

Regional inequalities: the North/South prosperity divide continues to widen. Are the recent Enterprise Zones, part of a policy of “managed decline” or an earnest attempt to promote authentic economic growth in the Regions? The Barnett Formula should be applied to the English Regions with full transparency; in a way previous governments have shied away from doing.

Finally, for the moment, but very importantly, there remains the question of the future of the NHS. How it develops is vitally concerning for England (NI, Scotland, and Wales are distinct) and no less so for the LDs. There needs to be some very serious intra-party discussions if ruptures are to be avoided or at least contained.

In terms of LD party management, the NHS issue is symptomatic of a growing authoritarian tendency amongst the Leadership. Party Conferences are becoming too stage-managed. Tom McNally, LD leader in the Lords, has written in Liberal Democrat News suggesting they should be held less frequently! The provision for membership participation in policy-making distinguishes the LDs from the Tories and Labour. It should be lauded, defended and not diluted.

Trevor Smith is a Liberal Democrat working peer.

Social Liberal Forum at Conference – Part I – Fairness in a time of Austerity

The centrepiece of Social Liberal Forum’s Conference programme was the debate on Motion F34: Ensuring Fairness in a time of Austerity. Below are the highlights from the excellent discussion that the Motion inspired – full versions of the speeches can be found on our Conference Speeches page, including my own speech that I was unable to deliver given how over-subscribed the debate was – Chairman Geoff Payne had to apologise to the 25 people he was unable to call on!

Martin Tod’s excellent speech outlining the Motion’s key policy objectives began the debate. Martin argued that

Our ministerial team is doing great work across all these areas, but this motion unambiguously seeks to strengthen our commitment to tackling the evils of poverty, social injustice and inequality. Hard to do at the best of times. But even harder in a time of austerity.

Martin went on to tackle the issue of wealth and inequalities:

We still live in a country where the richest 20% own nearly 2/3rds of the country wealth. And the poorest half, only have 9%.

Wealth taxation isn’t just right. It’s responsible. A recent OECD report made clear that wealth taxes are the least harmful to growth compared to other ways of taxes.

But it’s also not straightforward. Transitions can be difficult – particularly on land taxation.

But if we’re thinking differently. Thinking for the next election. Thinking before the next election. We need to start now – and this motion calls upon our ministers to get the work done to get the cool, dispassionate look at taxation on wealth – instead of other taxes – as a way of closing the deficit and paying for our public services.

Following Martin’s speech three Amendments were tabled; the first addressed the acute shortage of social housing, and in particular the need to protect vulnerable groups from changes in housing benefits; the second sought to protect the universality of child benefit, proposing to subject the payments to progressive taxation as outlined in a study by the Institute for Public Policy Research; and the third called on benefits for the wealthiest to be scaled back before those for the needy are cut.

Naomi Smith, member of the SLF Council, spoke with real passion on policies that addressed the financial service sector – asserting

at  the outset that in promoting fairness as a principle of party policy, we must be very specific in terms of the details. “Fairness” is a weasel word if it is not rooted in specifics.

Naomi went on to call for the separation of high-risk investment banking from high-street services, whilst ensuring that the Coalition government takes action that

strengthen[s] and nurture the other end of the financial spectrum. As the motion states: mutual benefit societies, credit unions and regional stock exchanges must be encouraged and fostered.

Naomi’s full speech is available here.

Lines 38-41 of the Motion proved the most controversial of the debate, with impassioned speeches and one-minute interventions arguing both for and against their retention in a separate vote. Liberal Youth National Chair Martin Shapland made a strong case against any form of graduate tax or contribution, as did Dr. Julie Smith, but in the end Will Hawkins’ well-delivered intervention won the day – the Motion as drafted simply called on Liberal Democrats to

possibility of building cross party support around replacing tuition fees and student loans with a graduate tax system

and Will’s plea to allow our Ministers the space to explore graduate co-payments was re-iterated by David Hall-Matthews in his summing up, convincing Conference to retain the lines calling for an exploration of a graduate tax to replace fees and loans.

David also emphasised that when the Social Liberal Forum submitted this Motion, our

aim was not to embarrass the party leadership or our hard-working ministers – it was to help them, in their negotiations

with the Conservatives over future government policy.

David continued, telling Conference that ensuring fairness in a time of austerity is surely what we are there for. We accept the need for cuts – but the Conservatives don’t need us to tell them to do it – some of them positively enjoy it! But they do need us to tell them how to do it. So it isn’t, to quote a phrase, savage. So that those in the greatest need are still protected – or in fact better protected against the chill winds of Labour’s recession.

The point of coalition government is that two parties start with different priorities. Then they negotiate hard. In a civilised fashion, but trying to win battles for what they believe in. And if there’s one word that sums up what Lib Dems believe in, it is Fairness. Freeing people from poverty, not just from the over-centralised state.

This last point was, in effect, the overriding theme of the debate – that just as government has a duty to devolve political power to the lowest feasible unit, there is also an onus on the State devolve economic power too – implementing policies that alleviate poverty and economic hardship, raising the capabilities of the worst off. This Social Liberal Forum Motion, passed as Amended, could see the beginning of just that.

Did the budget meet my tests?

A brief note, reflecting on the criteria by which I proposed we should judge the budget, now it has sunk in:

  • What is the timescale? 5 years, so this is a clear Conservative victory. I am deeply concerned about this, possibly more than anything else, because I think it will damage growth over the next half decade (possibly plunging us back into recession) and thus prolong, not minimise, the pain.
  • What is the proportion of cuts to tax rises? I hear differing figures, but I think the most accurate figure is 77% cuts to 23% tax rises. That is a slight reduction on the Tories’ 80:20, but is closer to that than the Lib Dem figure of 71:29 (or 2.5:1 depending on how you want to look at it). Of course, converting it all to percentages highlights quite how close all three parties plans were (Labour were committed to 67:33). To an extent therefore, I will concede that much of the battle had already been lost before the election. But there are tax rises and then there are tax rises. Which brings me to…
  • What kind of tax rises? Leaving aside the Capital Gains Tax tweak, which only raises £1 bn (half the amount to be raised in the Lib Dem plan), the main hit is on VAT, both the higher and lower rates, to 20% and 6% respectively. There is no escaping from the fact that this is a total defeat for the Lib Dems in coalition. There are no new wealth taxes, despite the fact that large amounts of uneconomically productive wealth is locked up in land across the country, which in turn ensures that rent rises are artificially high (a problem exacerbated by the Housing Benefit cap) and contributes to the housing shortage. The Social Liberal Forum can point to one small victory however: the increase in personal allowance will not be passed onto people paying the higher rate of tax, something which we argued for at both the special conference and in our letter to Nick Clegg and Danny Alexander.
  • Will it be egalitarian? Despite the government’s protestations, the broad consensus is that the overall package will lead to greater inequality, not less. Indeed, the debacle over whether the package is fair on the poor or not has made our case superbly about the need for the Office of Budget Responsibility to be both genuinely independent (ideally appointed by parliament directly) and have inequality written into its terms of reference. If it had been, I genuinely believe that it would have lead to a fairer budget: George Osborne to his credit understands the need for transparency in fiscal policy and has taken great strides to improve this. Ensuring that they can’t spin about inequality is a very crucial part of the jigsaw puzzle.
  • Will we end up with more or less means testing? Superficially, this is a victory as the scope of means testing was not increased. With that said, the number of people facing marginal rates of tax of around 90% actually increased – despite David Cameron’s highflown rhetoric about ending this last year. If proof were ever needed of how a smaller state can lead to less freedom, this is it.
  • Will this budget lead to a fairer, greener economy? The short answer to this is: wait and see. There was very little in the budget to give us hope on this score, apart from the commitment not to cut any further capital spend. We must now look to the Spending Review to see whether all this pain will lead for a more sustainable, brighter future. Much of what is in the coalition agreement is hopeful on this score, and much of it will be lead primarily by Liberal Democrat Cabinet members: Vince Cable and Chris Huhne. But it involves convincing the Treasury that these plans are worth proper investment, and sadly the Treasury have not exactly filled me with confidence this week.
  • What will be in the budget to prevent a “double dip” recession? Again, we will have to wait and see on this score. The commitment to capital investment was at least something, as was the very small amount of help to entrepreneurs. But to suggest that taking such a large amount of money out of the economy during such a short timescale will have no impact on the recovery, is fantasy economics. Osborne and Alexander are taking a big gamble here. Only one thing is clear: if we do go back into recession, it will be very clear who is to blame.

Overall, then, I’m not convinced this is a good budget, or even a necessary one. If I were a Lib Dem MP would I oppose it? I would certainly be thinking very hard about how I might be able to improve it via the Finance Bill.

But where do we go from here: any thoughts?

New Demos pamphlet makes the Lib Dem case for equality

In association with The Equality Trust, Demos have today published three pamphlets focusing on equality from the perspective of each of the main political parties. The Liberal Democrat one, A Wealth of Opportunity, is written by Julia Margo and William Bradley and has a foreword by David Laws MP.

A concern with inequality lies deep in liberal DNA. More than a century and a half ago, John Stuart Mill argued for a cap on inheritance so that wealth might be more fairly distributed in society. His views jarred with Victorian attitudes. Would they be more accepted now?

This pamphlet argues for a renewed liberal equality agenda, based on evidence of the divisive impact of inequality on society and recent findings of the central role that financial security and access to resource plays in life chances and child development.

The Liberal Democrats face a unique opportunity: concern for economic inequality has never been more fashionable or higher in the public mind than in this post- recession era and following the double-scandal of MPs expenses and bankers bonuses. In the wake of the Labour government’s failure to effectively tackle inequality, a radical agenda focused on redistributing resource, capitalising disadvantaged families and improving services would cement the reputation of the Liberal Democrats as the vanguard of the contemporary progressive left.

The book makes three main policy recommendations for the Liberal Democrats to adopt:

  • Tax wealth via land value taxation and replacing inheritence tax with an acquisitions tax.
  • Introduce a capabilities boost to benefits and services by increasing benefit and tax credit levels for the working poor, additional resources for early years education for children from disadvantaged backgrounds and focusing Sure Start on programmes with a proven impact on child well-being, capability development and parenting.
  • Capitalise low income families by raising the minimum wage, entitling low income families to a £500 lump sum on the birth of a child, refocusing child benefit so that it is higher for younger children and encouraging people on low incomes to save via a system of matched funding.

The pamphlet can be downloaded for free on the Demos website.  You can also download their pamphlet aimed at Labour, Society of Equals and the Conservatives, Everyday Equality.

The Spirit Level in 3 minutes

A short film to promote The Spirit Level, the paperback edition of which came out this week:

Okay, it ever so slightly over-eggs the pudding, but it is good fun nonetheless.

The Social Liberal Forum will be running a joint fringe with the Equality Trust at the Liberal Democrat Spring Conference in March. More details soon.

Review: The Spirit Level by Richard Wilkinson and Kate Pickett

I read The Spirit Level: Why More Equal Societies Almost Always Do Better whilst watching the last two seasons of The Wire and so Chris Grayling’s claims last week that parts of the UK were beginning to resemble the Baltimore portrayed in that TV series did cause me to smile wryly. Grayling’s prescription for tackling gang culture (leaving aside the completely ridiculous comparisons) amounted to little more than getting tough, cracking down on criminals and instilling more discipline in schools. By contrast, many of the points being made in The Wire – particularly the fourth season which focuses on the school system – have strong parallels with Wilkinson and Pickett’s book. In short, this sort of “get tough” approach will achieve almost nothing whilst the underlying causes remain untreated.

At the heart of The Spirit Level is a wealth of statistical data outlining how more equal societies (defined in terms of income inequality) do better in terms of physical health, mental health, drug abuse, education, crime and imprisonment, obesity, violence, teenage pregnancy, child welfare and social mobility (the latter is a bit of a killer incidentally, it would appear that “The American Dream” is more of a reality in many countries which Fox News would condemn as “socialist”). If that were all the book had to offer I would suggest you save your money and simply peruse the excellent Equality Trust website which Wilkinson and Pickett have helped to set up. What is more compelling, for me at least, is the explanation about why this may be the case. Continue reading

Lynne Featherstone meeting THIS WEDNESDAY

This is just a short reminder that our discussion evening with Lynne Featherstone MP will be taking place this Wednesday.

Title: After the recession, a different future
Date: Wednesday 1 July 2009
Time: 7.30pm-8.30pm
Location: Room Q, Portcullis House, Westminster, SW1A 2JR

Full details are available on the Flock Together website. Please confirm if you are likely to be attending on that website so we can keep an eye on numbers.

Our meeting the other week with Danny Alexander MP was very constructive (and well attended!). One of the recurrent themes at that discussion was the need to tackle equality and in particular the findings in The Spirit Level: Why More Equal Societies Almost Always Do Better by Richard Wilkinson and Kate Pickett. Social Liberal Forum council member Rev Chris Brice will be hosting a talk with Richard Wilkinson at St Martins Church, Gospel Oak, on Sunday 5 July and would like to extend an invitation to SLF supporters to attend. Details are available at the Flock Together website.

Save us from Fabianism

This article originally appeared in the April 2009 issue of Liberator Magazine (#332). Liberator have kindly allowed us to reproduce this here, along with Matthew Sowemimo’s accompanying article.

We have a new Liberal Democrat think-tank. And when there has been little or no thinking around the party for two decades, that has to be a good thing. So why am I uneasy about the appearance of the Social Liberal Forum?

It isn’t that I am suspicious of social liberalism. Heaven knows, I was even a contributor to the excellent essay collection Reinventing the State.

Nor am I a closet ‘market liberal’ – if there is such a thing – dedicated to handing over health and education to faceless American corporates.

No, this is an argument inside social liberalism, but it is an urgent one. Because there is more than one kind of social liberalism, and we can’t afford for the backward-looking Fabian variety to dominate again.

When the electorate demands something progressive, it would be disastrous for us to exhume the soulless old language of the 1970s and argue that we just never tried Fabianism hard enough.

This article is me asserting my right to try to claw back a genuinely Liberal social liberalism from the jaws of the Fabian beast.

It is a kind of open letter to Matthew Sowemimo, Richard Grayson, Duncan Brack, and all the others involved in the Forum, to look forwards – to look for the real reasons why Britain is becoming so unequal. To be Liberals, which means, I believe, rejecting the Fabian idea that everything can be solved by tax and spending. Continue reading

Reconnecting with our radical heritage

This article, an adaptation of the speech Matthew Sowemimo gave at the Social Liberal Forum fringe meeting at Harrogate Spring Conference in March, originally appeared in the April 2009 issue of Liberator Magazine (#332). Liberator have kindly allowed us to reproduce this here, along with David Boyle’s accompanying article.

Social Liberalism is the mainstream philosophy of the Liberal Democrats and has been so since the Grimond era. Social liberalism recognises that an individual’s material and personal circumstances can act as a constraint on them realising freedom. How meaningful is freedom if you don’t have a house or a pension? This core Social Liberal analysis is as relevant to today’s world as it was to the Edwardian era.

While political freedoms such as freedom of speech are crucial, poverty, inherited disadvantage and in today’s world, climate change, can curtail freedom. Lloyd George preceded his challenge to the landed aristocracy with the damning phrase that “a nation that ruled the waves could not even flush its own sewers.” Liberals have used state action to challenge disadvantages that prevent individuals realising their full potential. As Nick Clegg has said, “freedom and liberty mean nothing unless the barriers to progress and opportunity are removed.” Continue reading