Tag Archives: public services

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.

Message to Nick Clegg: spread the pain, don’t just cut services

The Social Liberal Forum believes Nick Clegg’s newly promulgated policy to rely on spending cuts raises serious questions.

We believe that this policy has to take into account the following issues:

  • It could require even deeper cuts in areas like affordable housing, schools and universities that are central for either the growth potential of our economy or to social harmony.
  • Tax increases help the stronger in our society absorb more of the pain of deficit reduction. Taxation increases should not only come from individual taxpayers but can be obtained from sectors of the economy like the City of London that generates wealth that is disproportionate to their overall economic contribution.
  • Spending cuts of the magnitude required pursuing this approach might result in substantial reductions in public sector employment, particularly in the regions that are more reliant on state funded jobs, like the Northeast.

A more balanced approach would be for tax increases, especially on the wealthiest sections of the economy to be accompanied by spending reductions spread over a period of eight years. We warmly support the party’s determination to resist premature spending cuts given the fragility of the recovery. However the country as a whole needs to weigh the importance of the composition and speed of any deficit reduction effort.

There is nothing random about local control of public services

Both Sunder Katwala and Grant Shapps are quite wrong: not only is local variation a price more than worth paying for local control, but it would end the phenomena of postcode lotteries.

“Postcode lottery” is a cliché, and a peculiarly British one. Why is it, for example, that the only references on Google to “zip code lottery” I can find are articles in the US referring to the UK? Surely Americans, with their far greater local control of public services, would be screaming about the phenomenon and demanding a massive centralisation of services? Yet strangely they don’t.

Can it be a coincidence that the UK is both obsessed with postcode lotteries and happens to be one of the most centralised developed countries in the world (if not the most – depending on how you measure. Malta is unquestionably more centralised but has a population the size of Kirklees or Devon)?

There is local variation in public services around the world; the difference is that in most other countries people are able to do something about it. It is no coincidence that a country like Denmark devolves healthcare down to the local level yet can provide a consistently higher level of care. The gap between aggrieved voter and accountable politician is much, much closer. What’s more, the fact that the grass seems to be greener next door proves to be an excellent incentive for local government to always be on the lookout for ensuring that services are as good as they can be: the price they pay for failure is getting booted out of office.

Sunder Katwala may not realise it, but he is in fact an advocate of postcode lotteries. The system he seeks to preserve could indeed be called a lottery because how you cast your vote has almost nothing to do with the level of health services you go on to receive.

Nonetheless, he is correct to point out that this is an argument that has not yet been won in the UK. Oddly for a country so seemingly unconcerned about the widening equality gap, the British public are fixated on the idea of a national health service providing an identical service from Lands End to John O’Groats (and beyond). This idea has been encouraged by the courtly dance between the media and a political class all to happy to indulge it. It is no coincidence that we are not just more centralised than ever, but we have spent the last 50 years doing so. We’ve come a long way from the reforming zeal of Joseph Chamberlain. Nonetheless, local variation of public services is a fact whether you have local control or not. It is simply dishonest to try fooling the public into thinking that somewhere out there is a magic formula that will enable Whitehall to impose a standard service across the land. The con has worked for half a century; it is now time to start treating the electorate as adults.

Grant Shapps, as a paid up member of a party which claims to be localist, ought to know better than to fan these flames. His report doesn’t appear to have any positive suggestions at all, merely pointing out that there is significant variation in IVF provision and that it is all that wicked Gordon Brown’s fault. Playing the postcode lottery card makes it harder for a future Tory government do actually do anything about it.

This suggests that the Tory commitment to localism is only skin deep. The fact that the Tories remain steadfastly opposed to giving local authorities the single most important tool for local control of public services – greater tax-raising powers – only encourages this view.

It is encumbant on people who like to bang on about postcode lotteries – whether they are on the left or the right – to say what they propose to do about them. The Liberal Democrats, as true localists, have an answer. Can Fabians and Conservatives say the same?

Money talks: a response to David Boyle

I very much welcome the challenge laid down by David Boyle to the Social Liberal Forum. Indeed, there is very little in it with which I can disagree. In particular, I share the view held by David that the view that ‘everything can be solved by tax and spending’ is mistaken. I strongly believe that we need a revolution in the way that decisions are made in this country, and that we need to take a totally different approach, a sustainable approach, to our day to day lives. We need a more local, more democratic and greener way of approaching politics. That would mean a paradigm shift in the way that we think of power and economics, and these are issues which will be at the heart of the SLF’s work.

Much of David’s article is about the causes of inequality. He rightly cites centralisation, education, snobbery and passivity. In the way that David describes them, none of them are about ‘tax and spending’. I would add another to this list, which crosses over with at least two in David’s list (snobbery and education): the persistence of social class, which leads to generation on generation holding on to power that it has, and perpetuating it through networks which outsiders can seldom access. The persistence of class is sometimes about money, but it is just as often about family connections and schooling, both of which can have an enormous impact on the kinds of informal opportunities and feet-in-the-door that are so often life-defining. Continue reading

Balancing the Dominance of Market Driven Theories

cafecultureThis article is based on a speech given by Dr Richard Grayson at the Urban Café, Newcastle upon Tyne on Monday 2nd February 2009 (event hosted by Cafe Culture North East).

Here, Richard sets out what he believes are distinct limitations to the market. Richard will assert that there is still a very clearly designed role for the state, one that is creative and enabling, rather than centralising and stifling.

I’m going to try to tackle three broad issues this evening. First of all, how recent events have affected views of the state. I then want to look at how social liberals approach the state, and finally consider what a social liberal state would be like. Continue reading