A new dawn or a dark age?

Editorial – Issue 331

Dark clouds are gathering. Authoritarians using dictatorial methods rule in some of the most populous countries of the world, namely Russia, China and India. Trump’s reappearance as US President hangs in the balance. Across Europe far right and neo-fascist parties are gathering support, with Austria’s Freedom Party under Kickl (reported by Patrick Costello) the latest to join Meloni in Italy, Orban in Hungary, Wilders in Netherlands . This all underlines a deep crisis within global capitalism driving inequality, exploitation, poverty and climate change to breaking point.

Putin’s illegal and brutal war of conquest in Ukraine looks set to grind on into 2025 as reported by Hanna Ostapenko and Christopher Ford. They argue for boosting military aid as part of international solidarity, with no appeasement of the Russian aggressor. In the Middle East the massacre of thousands of innocent Palestinians in the killing fields of Gaza continues unabated. Don Flynn reports on Israel’s ultra-right government now extending the war to Lebanon and green-lighting further violent occupations in the West Bank, all in breach of the United Nations resolutions and international war crimes law.

Meanwhile in the UK, hopes have risen with the Labour government pledged to bring change. It is vital that Starmer’s team does not betray the trust of the people. Despite election campaign efforts to dampen expectations and the revelation of a £22 billion black hole in the public finances, rapid improvements be made before disillusionment sets in and the Tories newly elected  leader from the right of the party gets their act together.

The Institute for Fiscal Studies calculates £25 billion is needed to move beyond austerity—a manifesto commitment. To get public services working again the estimate is £70bn. We live in a low investment, low productivity economy where workers have seen their share of GDP drop from 65% in 1976 (the height of trade union influence) to 50% today. The finance sector has been  gifted light-touch regulations to make huge profits, little of which has trickled down. The privatised water industry is perhaps the most egregious example of our big bonus culture despite pollution and high charges.

This process has to be reversed. Chancellor Reeves’ budget should begin this change. However, as Victor Anderson reports, the indicators are contradictory judging from Keir Starmer’s speech to CEOs of top corporations at the London Guildhall conference in mid-October. Following a recent report identifying health and safety short-cuts lying behind the Grenfell tower disaster, talk of reducing regulations was dangerous. Moreover, to reprimand Transport Secretary Louise Haigh for standing by long-standing criticism of P&O ferries for its mass sacking of 800 workers is not a good look, particularly at a time when Labour is introducing its Bill on employment rights.

Fundamentally, if we are to move out of the austerity regime of the last 14 years, we need a huge drive, on the scale of the 1945 government, to invest in infrastructure, the NHS, transport, schools, housing and local authorities. As the Guardian editorialised: “Private investment cannot come at the cost of social protections for Labour”. There is a clear answer to the problem of a cash shortage to fix damaged infrastructure: a wealth and land tax, closure of tax loopholes and evasion, equalising capital gains and income tax rates and borrowing to invest (helped by the change in fiscal rules) particularly in green energy and infrastructure. Income inequality has rocketed in the last 15 years while poverty is now back to the levels of the 1970s. Growing numbers of foodbanks and homeless illustrate the problem.

Viktoria Szczypior of the Women’s Budget Group says scrapping the two child benefit cap is essential if Labour is to honour its commitment to reducing child poverty. Save the Children estimates 400,000 fewer children would be in poverty by the end of the decade as a result. Dr John Puntis puts the Darzi report on the NHS under the microscope, concluding that reform has to go with more resources.

Karen Constantine asks why Labour is only aiming to halve domestic violence over the next ten years while Sabia Kamali reports on the rise of hate crime against Muslim women. Prison officer Mickey Masters examines government penal dilemmas.

Democracy remains a central commitment for Labour. Andy Burnham welcomes proposals for greater devolution and reform of the Lords while stressing the case for electoral reform is inescapable if our broken system is to be mended. Pete Rowlands reports on Labour’s limited advance in Wales alongside highlighting problems in Welsh Labour.

In the psychodrama of the Tory leadership contest Robert Jenrick and Kemi Badenoch attack so-called ‘woke culture’ and seek to scapegoat migrants for our problems. Don Flynn argues Labour needs to demonstrate a more enlightened approach while Mike Davis cites the immigration policy of Spain’s socialist government as a progressive beacon.

On the eve of the crucial November 5^th US election, Paul Garver speculates on the likely outcome, foreseeing political mayhem whatever the result. Micheal Byaruhunga outlines the mix of climate change and big oil exploitation currently despoiling Uganda while Sunit Bagree underlines how sovereign debt is boosting malnutrition in the global south.

Corporations today have enormous power and incomes in billions of dollars, dwarfing that of many developing nations. They must be servants of the people not masters. For that to happen Labour must be bold in enacting effective transformative policies and socially just systems of regulation and tax to shift wealth and power to working people.