Change has to mean radical change

Editorial – Issue 330

Attlee went for it in 1945 with the formation of the modern Welfare State and the NHS. Wilson followed suit in 1964 with investment in state industries and new technology, equal rights and improved welfare.  Both followed periods of almost 14 years of opposition to Tory governments that had shrivelled state spending, overseen cuts in living standards and restricted rights of trade unions and civil society organisations.

Labour achieved a landslide on July 5^th winning 411 seats with a simple strapline –“Change”. Starmer’s post-election speech called for “renewal” and an end to Tory mess, chaos and incompetence. This would be a government presiding over a steady recovery of living standards, investment and rebuilding the social fabric. No increases in income tax or national insurance. No “dash for growth”.

There was a manifesto commitment to reducing poverty and inequality. Instead we’ve had the scrapping of the universal Winter Fuel allowance and the continuation of the invidious, poverty-boosting two-child benefit cap. Worse, seven MPs were suspended for six months for opposing the measure; a vindictive and unnecessary move given that Labour has a majority of almost 200 seats.

The legacy economic black hole of £22b is reason enough for real structural change argues Prem Sikka. Labour must end state capture by big corporations. Stricter regulation, ending tax havens, borrowing to invest, taxing the rich – in Starmer’s word “making those with the broadest shoulders pay more” – will be a winning way.

His Rose Garden speech at the end of August alongside the predicted budget from Rachel Reeves in October does not auger well for this path to recovery and renewal. Instead it looks like more austerity.

Whilst welcoming the record number of new women MPs Ann Pettifor argues for a wealth tax in addition to bringing the Bank of England back into public control as a means to boost an economy that works for people before profiteers.

The election victory was however paradoxical. Labour won with less than 35% of the vote. Many Tory voters stayed at home and Reform split the Tory vote share. The combined Tory and Reform vote in over 100 seats was bigger than the Labour vote. There was a low turnout, at 60% the second lowest of the century. Notably, Labour secured its lowest total of 9.6m votes – less than in 2017 and 2019 when Corbyn secured 12.8m and 10.2m votes respectively. Winning nearly 40 seats in Scotland was a boost but masks the bigger picture. 

These facts underline the importance of Labour building a base, winning over undecided voters and challenging right wing narratives on the EU or trade unionists for our problems. Don Flynn explains the folly of pandering to right-wing narratives on immigration. Meanwhile, Peter Dorey analyses the Tory Party dilemma: does it shift further to the right to steal Farage’s show or does it return to centre right, one nation policies?

Our correspondents recognise that in some areas Labour has hit the ground running. TUC leader Paul Nowak acknowledges that the acceptance of Pay Review Body awards to teachers, junior doctors and others is a positive move while pushing for the full implementation of Labour’s New Deal for Working people in the first 100 days.

David Toke finds positive evidence in the formation of Great British Energy and steps taken by Ed Miliband to boost renewable energy. Equally, Paul Salveson finds moves by Transport Secretary, Louise Haigh, to be going in the right direction, particularly with greater local powers for buses. Victor Anderson outlines four key challenges while Caitlin Barr emphasises the importance of delivering for youth.

The balance sheet is not so promising on housing. Duncan Bowie finds serious weaknesses in commitments to build 1.5 million houses and new social housing every year. Local government is still reeling from an almost 50% cut in central government grants over the last 14 years. Youth services, libraries, environment, housing, arts, education have all suffered says Tom Miller. Localism without funding is an empty pledge.

On Europe Starmer proposes a new and closer relationship while implying a serious review of the appalling trade deal delivered by Johnson’s government; welcoming the European Political Community and an iron-clad commitment to abiding by the European Court is a start. Philip Gough underlines the damage caused by Brexit disappointing many who believed it would bring bountiful results to farmers, fisherfolk, the NHS and numerous other areas.

The French parliamentary elections saw the united left platform as the winner stemming the march of Le Pen’s far right National Rally. Andrew Coates looks at why Macron is prevaricating on a new leftist prime minister.

In our International Supplement various writers review the importance of Labour adopting a new cooperative approach to working with European allies. Paul Garver provides an update on the US election campaign while Progressive Vermont Democrat senator Tanya Vyhovsky reviews the Harris campaign.

Two major international conflicts continue to dominate: Israel’s genocidal war against Gaza and the Palestinian people in the occupied territories and Putin’s equally ruthless imperialist aggression against Ukraine. Andy Gregg and Mary Mason make our ongoing case for an end to all arms sales to Israel (whether offensive or defensive), an immediate ceasefire and full withdrawal from Gaza and all occupied territories. Meanwhile we reprint Ukraine Solidarity Campaign’s  comprehensive pre-election statement. We urge all Labour MPs to get behind this appeal.

The march of far right authoritarian populists in Europe, India (as reported by Kabul Sandu) and the US is a major threat to democratic socialist aims. Labour in government has an opportunity to thwart these trends by radical action and like Attlee delivering  progressive change in the UK now.