LABOUR politics changed when the Government was told that the banking system was at risk of meltdown. Now no one should be under any illusions about neo-liberalism. Labour’s political opponents are thrashing around for any excuse to avoid the obvious – and the Government is letting them get away with it. But fact is that the economic model that shaped the world for the past three decades has become unsustainable.
Ironically, it fell to Gordon Brown – one of the architects of “new” Labour and regarded by his critics on the left as a slavish adherent of neo-conservative economic thinking – to rescue the banks.
Whereas the Prime Minister decided at an early stage in the credit crunch to do “whatever it takes” to keep people in work and with a roof over their heads, he has yet to apply the same logic to saving the Labour Party. Brown’s dualism was exposed by his special adviser’s proposals to feed an internet-based smear campaign against leading Conservative MPs. Damian McBride and former Peter Mandelson aide Derek Draper were part of the political machine over which Brown presides. This machine is oiled by prime ministerial patronage exercised by the party leader as head of the executive arm of government. It has corrupted Labour policymaking, the parliamentary party, Labour staff, local government and the party in the country.
In last week’s vote on parliamentary expenses, Brown showed a better grasp of the depth of public feeling than either David Cameron or Nick Clegg. Even though his YouTube appearance made him a laughing stock, Brown won all the votes on MPs’ expenses that he sought in the House of Commons. MPs voted to scrap the second-home allowance, both for London MPs and ministers with grace-and-favour residences. All MPs’ office staff will become employees of the Commons and receipts will have to be produced for any expense claim, not just those over £25. That attention to detail must now be applied to the Labour Party machine.
Key areas of party activity must be purged of Blairite influence: membership and party finance, local government and parliamentary candidate selections. This malign influence has contributed to falling membership, with a consequent loss of support in middle England and Labour’s heartlands.
Tony Blair left the party with its membership and finances in tatters, and without a policy for ethical donations. The rot set in at an early stage in Blair’s premiership, with the notorious £1 million cheque – subsequently returned – from Formula One boss Bernie Ecclestone. Instead of a mass membership organisation of more than one million – the target in the wake of the 1997 landslide victory – Blair bequeathed a shrivelled party of just over 175,000 members.
Labour currently has no strategy to retain and recruit members.
Nothing symbolises the Blairite legacy in local government more than directly-elected mayors. This policy was imposed on the party for its 1997 manifesto. One place where the model was adopted that is worth close examination is Stoke-on-Trent. There, through Democracy 4 Stoke, a cross-party community organisation, local Labour members spearheaded a campaign to scrap the office of mayor. In October 2008, the people of Stoke voted in a referendum to get rid of their mayor. Sadly, this decision was not accepted magnanimously by either the Labour Government or the party machine.
This is the crux of Labour’s problem in local government. It wants to engage with local people. But it seems unable to accommodate any deviation from the party line. As the Tories learned from their decimation on local councils in the late 1980s and through the 1990s, local government is the bedrock for national government. A party which neglects its local base risks a decade or more in the wilderness at Westminster.
It is not as though Brown was unaware of this aspect of Blair’s legacy when he took over from him. In a paper, Brown urged: “We need to turn outwards and draw those who share our values but not our party into our work. We must become a focal point for community concerns and action, listening to and working with residents in every locality in pursuit of social justice.”
However, the NEC has postponed the annual general meeting of the Labour group on Stoke-on-Trent council, thus preventing the election of a new group leader. The challenge for Labour in Stoke-on-Trent is to be at the forefront of a rainbow coalition to see off the threat posed by the British National Party at the European and local elections. That’s not going to be achieved by unhelpful interference from the national party. It will take leadership from the top to set the party back on track, stop that interference and enable local parties to regroup, rebuild and eventually regain control in places such as Stoke – where Labour once held all the seats on the council.
As far as candidate selection is concerned, winnable parliamentary and local council seats are now regarded as career opportunities. The controversy over Erith and Thamesmead in south-east London has been fuelled by allegations of questionable attempts being made to secure the nomination for this safe Labour constituency for 22-year-old Georgia Gould, daughter of Tony Blair’s polling guru Philip Gould.
The challenge for Brown now is whether to ride out the controversy or take the opportunity to order an urgent review of the procedures and call for the whole process to restart under local control.
These key areas of party activity – raising money, local government and parliamentary candidate selection – are examples of where the Labour Party machine continues to work to a Blairite agenda. Brown saved the banking system. He recognised the outrage over MPs’ expenses. He travelled the world to get an international agreement to tackle global tax-dodging. He broke the taboo on a higher income tax band for those who can afford it. These achievements, together with the Equality Bill, point to a distinctive Labour political narrative of fairness. That’s essential to win back millions of voters. Now Brown must show the same political courage in reforming his party.
The NEC should meet as planned on May 21 to send clear messages to members and potential voters ahead of the June 4 elections, and redirect staff to membership retention and recruitment. For the NEC to act, Brown has to drive a stake into the heart of “new” Labour. What has he got to lose, other than that his most coveted prize – being Prime Minister?
Peter Kenyon is chair of Save the Labour Party and a member of the Labour’s National Executive Committee
