Monday, 4 October 2021

The Labours of Keir Starmer

A few months ago I pondered on the fate of the centre left in Europe and suggested that it “will struggle to remain relevant unless there is a radical change of tack.” Last week’s strong showing by the SPD in the German election demonstrated the unerring (in)accuracy of my political predictions. Against that backdrop, the Labour Party in the UK held its annual conference last week, giving Keir Starmer his first opportunity as leader to speak to the party faithful in person. As with most political events these days it polarised opinion. Unfortunately for Starmer, the polarisation came from within his own party with a significant minority unable to forgive him for usurping the sainted Jeremy Corbyn who was always ever one last push away from delivering the socialist utopia that the British electorate has spent the last forty years rejecting.

It has indeed been a bleak couple of years for Labour. In December 2019 they suffered a historical election defeat, registering their lowest number of parliamentary seats since 1935. Following Corbyn’s resignation he was later suspended from the party on anti-Semitism grounds. Although he was subsequently readmitted, Corbyn remains suspended from the parliamentary party (he is not counted as a Labour MP, despite having won his seat in the 2019 election). This triggered an internecine conflict between the faction supporting Corbyn and the group of centrists backing Starmer who realise that he is Labour’s best chance of being re-elected to office. It has been an unedifying spectacle at a time when the UK has been convulsed by the pandemic and when the economic costs of Brexit are becoming more evident. This navel gazing has contributed to Starmer’s poor approval ratings, with only 20% believing him to be doing a good job compared with 59% who disapprove, whilst Labour trails by 5 points in the overall polls (chart).

Starmer inherited the leader’s mantle in April 2020 as the pandemic was taking hold, at which time the Tories had a poll lead in excess of 20 points. It is a well-worn political phenomenon that incumbents tend to enjoy a popularity surge during times of national emergency. But Labour did sufficiently well that by November 2020 it had reduced the Tories’ double digit poll lead to zero. Within six months, however, the Tories had widened their lead back out to 12 points. Obviously the vaccine bounce gave the government a boost but there was more to it than that. Starmer was open to the charge that Labour did not have clearly defined policies on a lot of issues and the internal splits within the party were playing badly with the electorate.

Holding office but wielding little authority

At one point, following the loss of a critical by-election,Starmer removed his deputy from the position of chair of the party only to have to appoint her to another high-profile position following unrest from the left-wing. During the conference, unions voted against a motion that would have committed the party to pushing for a change in the UK voting system towards proportional representation. This was widely seen as one of the few ways that Labour has a real shot at getting into government now that it can no longer rely on winning seats in Scotland.

All this has given rise to a perception of a leader who holds office but does not wield control. So it was that Starmer’s conference speech was widely recognised as vitally important if he was to generate any form of cut through with the wider public. In the event it was well received (although at 90 minutes, it was long by any standards). However it cannot gloss over the fact that a significant swathe of the Labour Party prefers slogans to election winning policies. The left-wing element which continues to follow the Corbynite policy stance so heavily rejected in 2019 has given no sign that it is prepared to make the necessary comprises required to defeat their political opponents. So long as this is the case, Labour will remain a party of opposition rather than government.

What can they do?

UK elections are usually lost by the incumbent rather than being won by a coherent opposition, and with three years until the next scheduled election it is too soon to write off Labour’s chances. However, it is clear that they need to offer a compelling vision for the future and for all the positive noises surrounding Starmer’s conference speech, there was little of any substance. Perhaps this is partly because in recent years the Conservatives have appropriated many of Labour’s policy ideas, but not before first denigrating them and then repackaging them as their own. In this context it is therefore understandable that Starmer does not want to give too much away. Moreover, the Conservatives, who for years sold the idea that Labour was the party of big government that would “bankrupt Britain”, have moved into Labour’s territory with their huge public support schemes and recently-announced tax rises. So what can Labour do to differentiate themselves in areas that will make a difference? I offer four simple prescriptions:

  1. Repair relations with the EU by committing either to rejoining the EU Single Market or establishing a customs union (assuming, of course, that the EU is willing to open negotiations). In doing so, Labour would have to be quite clear that this does not mean rejoining the EU – that idea would be a sure-fire vote loser. Tactically, such a policy would open up some clear water between them and their political opponents and highlight that the form of hard Brexit adopted by the current government is making life more difficult for the UK. 
  2. Fix the Universal Credit system. As I have outlined previously, there are two quick fixes that can be made: (a) reduce the waiting time between claiming state assistance and actually receiving any funds and (b) reducing the taper rate at which benefits are withdrawn when people transition back into work. Such a policy would be of most benefit to those at the lower end of the income scale – precisely those who Labour say they most want to help (I will come back to this in a future post). 
  3. Commit to not raising the rate of corporation tax following the hikes implemented by the current government. This would go some way to allay fears that Labour will take measures that weaken the UK’s international competitiveness and, in Starmer’s words, will help reset “the relationship between the government and business.” 
  4. Invest in the infrastructure necessary to meet the aim of transitioning towards electric cars. I have long been of the view that this needs to be done well ahead of the point at which the sale of vehicles powered by petrol or diesel is phased out. With the deadline for this having been brought forward from 2040 to 2030, we have only eight years left and arguably the network needs to be substantially completed within six.

Why this matters

You do not have to be a supporter of any particular party to realise that a credible opposition is required to keep the government on its toes. Without this moderating factor, governments become complacent and formulate policies to suit the interests of their supporters rather than the country as a whole. Keir Starmer may yet be the man who can drag Labour back to the centre of the political spectrum and make them a credible political force again. But if he is to be successful at the ballot box, his party members have to get behind him and start to sound like they want to govern rather than merely act as a protest movement.

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