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New Statesman
3 days ago
- Business
- New Statesman
Britain faces a revolutionary moment. Labour must respond
LONDON, ENGLAND - JULY 8: New UK Prime Minister Sir Keir Starmer (centre front) stands with Labour Party MPs, including some who won seats in the recent general election, at Church House in Westminster on July 8, 2024 in London, England. Labour won 411 seats in last week's general election, giving them a majority of 172. (Photo by) In the summer of 1942, at the height of the Second World War, in a country reeling from the trauma of Dunkirk and battered by the Blitz, noted economist William Beveridge put the finishing touches to his now-famous report. In its pages he set out a blueprint for a radical overhaul of the British state, one that would offer every citizen protection from the devastating social ills that gripped the society of his time. He wrote 'a revolutionary moment in the world's history is a time for revolutions, not for patching.' The Moment We are In Britain now faces another revolutionary moment but of a very different character. Beveridge's work imagined the architecture of the welfare state. Today's momentous task is that of fixing our economic fundamentals so that his creation might survive to the next generation. Under the last government our political and economic institutions became systemically incapable of meeting the basic demands of the British people; higher wages, bills that don't spiral out of control, thriving & cohesive communities and public services which function when they need them. Since 2008 the real wages of a typical full-time worker have been flat and they have no more spending power than they would have had 16 years ago. Unaltered this path leads only to collapse. Public consent for the contract which underpins our democratic system is stretched to breaking point. That contract is simple but profound. The people entrust their representatives with power so long as that power serves their interests and addresses their concerns. Yet, over many years, the political class ignored this pact. They placed party loyalty, special interests, or personal gain above those who put them in office. They ignored difficult realities while lending their ears only to the loudest, most organised voices in local or factional politics. They placed a higher premium on getting a headline in a newspaper than the exercise of power in service of the electorate. The majority were left silent until that silence became a roar of indignation. One year ago, diagnosing this profound dysfunction, a group of Labour MPs came together with a shared recognition: that national renewal would demand disruption, honesty about the difficult trade-offs ahead and the courage to face them. In the last week of July 2024, we penned a letter to the Prime Minister committing to these values, to stand behind him and the Chancellor in pursuing them and restoring trust in government to look after British families' finances. We announced that we had formed the Labour Growth Group. The Roots of the Crisis When Labour swept to power in July 2024, commentators excitably compared the result to the triumph of 1997. In truth, beyond the size of the majority, the two moments couldn't have been more different. In 1997 Britain had a public-sector debt-to-GDP ratio of around 35%, when this Government took office, it was nearing 100 per cent. Subscribe to The New Statesman today from only £8.99 per month Subscribe Many in politics and the media had spent years pining for a return to the halcyon 'normality' of this era but it is precisely there that the seeds of the current crisis can be found. The fall of the Soviet Union pre-empted a period of elite overconfidence in globalisation, liberal capitalism and the primacy of technocratic consensus. New Labour's 'Third Way' was highly effective in taking advantage of the proceeds of this period to deliver hugely important progressive reforms like a national minimum wage. But underlying structural weaknesses in the economy simmered even as a booming City of London kept tax receipts high. The tectonic plates of political and economic dysfunction had begun, slowly but surely to drift toward one another. The rupture occurred in 2008; the global financial crisis shook national economies to their core. Over-indexed on financial services and incredibly economically imbalanced. Britain was particularly exposed. The Cameron government responded with austerity; an economic choice as foolish as it was cruel. Slashing an already faltering public sector when investment was desperately needed and credit was cheap. Gutting everything from towns across Britain but baseline services. A decade of drift followed in which successive Tory governments doubled down on every external constraint to the economy imaginable. Quangos boomed as ministers merrily handed over democratic accountability for political decisions. MPs bemoaned levels of regulation and the size of the welfare bill while allowing both to balloon to record levels. Rock bottom wages were offered for essential work as the economy became utterly reliant on unsustainable levels of low-skilled migration. This failure of politics deepened social fractures. The Brexit vote in 2016 was a warning from voters to political elites seemingly unable or unwilling to respond to the public's pain. The immense economic cost of leaving didn't however result in the British people 'taking back control' but rather to power transferring from an unaccountable bureaucracy in Brussels to an equally dysfunctional one in Whitehall. The Conservative Party presided over this disgraceful period of British history and has rightfully been relegated to a position of political irrelevance as a result. But we must be clear that the same fate will await the Labour Party if we do not create a radical break from their legacy of failure. The hangover of the wilderness years leaves us too ready to be defined by opposition: anti-cruelty, anti-chaos, anti-Tory. This is fighting the last war; we must pursue a politics shaped by addressing what matters here and now. Our Vision: Strategic Disruption The dysfunction gripping Britain is not an unavoidable tragedy. It stems from a clear political failure and a catastrophic absence of moral courage. Our founding principle is that decline is neither inevitable nor acceptable; Britain's best days are ahead, but only if we choose purpose over complacency and disruption over caution. For too long politicians were content to accept the things they could not change, we instead set out to change those things which we cannot accept. We must smash the status quo. We reject the exhausted politics of technocratic incrementalism and trickle-down 'meritocracy' that favours those privileged enough to start the game of life three-nil up. The belief that 'grown-up' management will be enough to right the ship of Britain's institutions has not so much collided with reality as been obliterated by it. At the same time, we are in open conflict with populist nihilism, which diagnoses the failure of the current system but offers only embittered rage and dangerous fantasy in response. This is exemplified by the opportunism of Nigel Farage's promise of up to £80 billion of unfunded tax cuts to disproportionately benefit the country's highest earners. We stake claim to the politics of strategic disruption, reforming ruthlessly yet with recognition of fiscal reality, and absolute clarity about the trade-offs involved. All measured by a single standard: does this serve to make the working people of Britain better off? We put a strong economy at heart of our politics because it is a necessary condition to fund public services, reduce inequality and make all our constituents better off. Aneurin Bevan captured this truth: 'Freedom is the by-product of economic surplus'. If the centre-left fails to deliver abundance, then it will fall to the radical right on the barren grounds of scarcity. We stand proudly in a Labour tradition of radicalism that runs through Attlee's creation of the welfare state, Crosland's radical reshaping of left economics, and Bevan's fearless assault on entrenched interests to establish the NHS. Labour Growth Group is not just another faction, it is a political and moral project to rebuild Britain's broken systems in service of the many. Tony Blair once described New Labour as the 'political wing of the British people'. We take up that standard, not as insiders but insurgents relentlessly dedicated to placing the British people's needs above politics as usual. The National Renewal Compact: A Modern Beveridge Model to Rebuild Britain Britain urgently requires a framework for national economic renewal as bold and transformative as Beveridge's original vision was for welfare. Over the next year the Labour Growth Group will deliver our own comprehensive blueprint in the form of the National Renewal Compact, a set of accords underpinned by practical, costed plans to slay each of the giants holding Britain back. Just as Beveridge confronted the ills of his era, we currently identify five modern giants strangling Britain's economy and society: ● A Paralysed State: A machinery of government so risk‑averse and inward‑looking that it cannot confront hard choices or deliver lasting reform. ● A Nation Divided: A deeply imbalanced economy that concentrates wealth and opportunity in a few postcodes while vast regions are left behind. ● Building Banned: A planning and delivery system so clogged that Britain cannot build the homes, transport links, and infrastructure a modern economy demands. ● Enterprise Smothered: A regime of regulation and culture of hesitation that saps investment, dulls innovation, and turns ambition into retreat. ● Energy Constrained: A failure to secure abundant, affordable power—leaving households exposed, industry uncompetitive, and our future unprepared. This will not be a dry review or an endless discussion exercise. It is a deliberate and provocative act in developing political economy involving leading policy organisations – the Centre for British Progress, Britain Remade and Labour Together among others – as well as thinkers from across the political spectrum. Our own members will bring to bear their expertise from business, energy, law, engineering, trade unionism, technology, economics and more. With their collective energy and experience we will refine our analysis. We are clear that this government has made great strides to confront many of these problems, from the most radical reforms to the planning system in a generation to raising public investment to the highest level for over a decade, to removing barriers to building new nuclear reactors, to rolling back the dominance of quangos. But the gravity of this moment demands an extra injection of radicalism. Each of these giants requires difficult, courageous trade-offs. Fixing our planning system, for example, means confronting entrenched interests resistant to housebuilding and infrastructure expansion. Addressing regional division requires tough choices on fiscal redistribution and decentralisation of power. We are clear-eyed that disruption is uncomfortable, but necessary. Britain has run out of easy options and an increasingly unstable world makes the future hard to plan for. That is why, in the words of the American technologist Alan Kay, we hold simply that 'the best way to predict the future is to invent it'. Our aim is practical, radical, and achievable proposals, not a wish list but a blueprint designed explicitly for implementation. This will not be another policy pamphlet shuffled around desks in Westminster, but instead a rallying point for all those who recognise the urgency of national renewal. It will serve not just as a call to action but as a binding compact, ensuring we do everything we can to see this Government deliver on its promise of transformation. The Cost of Failure Our fight is inherently political rather than technocratic. Regional rebalancing, for instance, is not simply about efficiency or even fairness. It is a democratic necessity. A country divided against itself, in which one region thrives while the potential of others is squandered, is a country that will fracture. The people have been patient, but their latitude has been tested to the limit and will not hold much longer. If we as a party and as a government fail to come together now and reckon with this, then Nigel Farage as Prime Minister is what awaits. The Office for Budget Responsibility has recently warned that the country is effectively sitting atop a fiscal timebomb. Debt climbing constantly until it breaks 270 % of GDP by the 2070s while a collapse in long‑gilt demand could add £20 billion a year to interest bills and an ageing population doubles health spending from its current rate. A man peddling unfunded £80 billion tax giveaways in this environment is playing with matches in a tinder‑dry forest. A chaotic Reform administration could well set it ablaze in short order, driving a severe fiscal crisis in the form of a debt interest spiral. The ramifications for the very fabric of British society of that final act of political betrayal should make blood run cold right across our movement. The Call One year ago, we committed to a simple but revolutionary conviction: Britain cannot afford another generation of timid politics and managed decline. In just twelve months, the Labour Growth Group has evolved from a name on a letter into a determined force of reformers in Parliament, united by the urgency of the moment and a clarity about the hard choices required. Today, as we embark on the next phase of this project, in the form of the National Renewal Compact, we invite all who share our commitment to join us, from business leaders, civic organisations, unions, thinkers, and doers. We will work together to refine our analysis and reveal the answers the country needs. This effort goes beyond party politics; it is about rebuilding Britain's economy and salvaging her democracy. The hour is late, and there is no point in denying the scale of the challenge, but this country which we love has beaten greater odds before. The British people sense another revolutionary moment at hand. Together, let us honour that, and forge a future worthy of them. Chris Curtis MP: Co-Chair, Labour Growth Group Lola McEvoy MP: Co-Chair, Labour Growth Group Mark McVitie: Director, Labour Growth Group Related
New Statesman
14-07-2025
- Politics
- New Statesman
Labour's new factions show how worried the party is
Renewed threats to the government from the left and from Reform have left Labour MPs feeling twitchy about the future. One YouGov poll last week found that18 per cent of voters would be willing to vote for a Corbyn-led party, eating into Labour's base, while Reform is polling on 27 per cent. Some of the 2024 intake have begun to organise and collude to work out how exactly their party can cling onto power. Last Thursday saw the launch of the Living Standards Group – a caucus of 100 MPs, led by eight members of the new intake including the MP for Loughborough, Jeevun Sandher and the two co-chairs of the Labour Growth Group, Lola McEvoy and Chris Curtis. They have called on the government to refocus on more radical ideas to tackle the cost of living otherwise, they warn, Labour won't hold onto power in 2029. This is an interesting moment for the arrival of another back-bench caucus. Keir Starmer is likely approaching his non-governmental colleagues with caution after more than 100 MPs staged a damaging rebellion against Liz Kendall's welfare bill, leading to yet another government U-turn. The Living Stanards Group insist that the timing of theor arrival was coincidental. But coming so shortly after a major defeat for the government, this is a prime moment to put pressure on the government. Although a few welfare rebels are members, the aims of this cohort seem to be favourable to the government. Luke Murphy, one of the eight MPs involved in the leadership of the group said that its founding is a 'recognition that we need to work harder to make sure that we're generating new ideas which focus on the cost of living'. He added: 'we don't want people to turn away from mainstream parties. We want to demonstrate that Labour gets it'. According to Sandher, the group's de facto leader, conversations around the formation of a group focused on raising living standards have been ongoing for some time. His idea was to form a coalition of MPs from across Labour's internal political spectrum to create a 'policy funnel' for ideas on how the government can fix the cost-of-living crisis – and fast. These ideas will follow three principals: they must be progressive and aimed at middle earners, they must enhance economic growth, and they must be fiscally neutral (e.g. they are not dependent on borrowing). The group will be governed by a board which the eight founding MPs will sit on, which will meet to discuss organisation, plans and ideas. 'We'll have a way for people to sign up to those ideas, publicly or privately and take it forward from there,' he said. The group will not take a collective position due to the 'ideological diversity' of the MPs involved (the letter was signed by members of the Labour Growth Group and of their friendly opponents who they have facetiously termed the 'vegetable lobby'). Although some of the 100's support is not that substantial – one MP texts: 'I just signed [the letter] cos I agreed with it'. But what unites these MPs is a genuine anxiety that they may be out of a job come the next election. 'We've been in power for a year,' Murphy said, 'but families are still doing the maths on rent, groceries, energy bills and childcare, and for so many people, they just don't add up. We know that's not just bad luck.' The group, therefore, is aimed to keep the government's feet to the fire in fulfilling their promise to voters and chivvying it along in the process. 'Wherever people are thinking of putting their vote, living standards are at the core of most people's vote,' he said. Sandher agreed: 'If you're a young – and you go and get a degree – then you get to the major cities and you realise it's not really affordable and we're losing votes on both sides because of that,' he said, 'fixing that problem is clearly an electoral imperative.' Subscribe to The New Statesman today from only £8.99 per month Subscribe Holding together a coalition of Labour MPs (a party which is notoriously fraught by factionalism) will be challenging, especially considering this group will not explicitly request MPs involved to publicly back their demands on government. But the arrival of the Living Standards Group clearly indicates that Labour MPs have woken up to the true depth of the electoral threats their party is facing – from the left and from the rights. Related
Telegraph
03-07-2025
- Politics
- Telegraph
Labour grossly underestimated the problems of government – and is now paying the price
Twelve months ago, on the evening of July 4, the British people made themselves heard. But the sound heard across the land was not that of rapturous applause; rather, it was a merciless rebuke aimed squarely at a political class guilty of systematically disregarding their fundamental concerns: spiralling living costs, streets surrendered to crime, local communities in decay, and immigration surging beyond control. What echoed across Britain that night was a primal cry of indignation from a nation tired of being patronised and ignored. Many of us understood clearly the gravity of that moment. The public had given us a stark mandate: fix what is broken. Yet one year on, the truth must be faced – we grossly underestimated the scale of decay at the heart of our institutions, the dysfunction hardwired into the system, the sheer depth of economic stagnation. There was a comforting illusion within some Labour circles that simply having 'grown-ups back in charge' would be enough. A little sensible management here, some incremental tinkering there, would surely bring about revival. That comforting fiction has not merely collided with reality, it has been obliterated by it. Incrementalism cannot hope to match the scale of the task demanded by a deeply frustrated public. Radical transformation is no longer optional; it is existential. That is why we founded the Labour Growth Group. Shortly after that election victory, colleagues and I recognised the need for a political wing of the British people inside parliament. Ready to shatter complacency, push Government beyond its comfort zone, and constantly place the public's fundamental needs above ideological vanity or political convenience. This Government has made genuine strides where its predecessor repeatedly faltered: redirecting international aid towards strengthening our armed forces, dismantling unaccountable quangos, cutting through decades of congealed red tape stifling businesses, curbing low-skilled immigration, and overhauling a dysfunctional planning system that keeps Britain from building. These are not trivial achievements. Each represents genuine progress in places the Tories scarcely dared to tread in their fourteen years of power. We have however yet to fully embrace the profound radicalism the moment demands. Government continues to struggle against a largely unreformed Whitehall bureaucracy. Less the 'Rolls Royce' of legend and more a jalopy battered by a succession of reckless drunk drivers. We need to take back control of this machine, to make it work again for the people who fund it and unleash the talents of the many excellent people toiling within it. A start would be boosting the number of political appointees to the most active areas of Government, we need no artificial constraints on our ability to grip the system. We must sharpen our focus and relentlessly attack the deep-seated maladies stagnating our economy since the financial crash. This means decisive measures to rapidly build vital infrastructure, potentially using emergency legislation to fast-track key projects like Heathrow's third runway. Scaling up energy production by crushing the innumerable regulatory blocks on the next generation of nuclear reactors. Bolstering British innovation by creating a dedicated office to bring in the brightest minds from around the world to our businesses and research institutions. Not to mention revolutionise our skills training system and rebalance a fractured economy. Driving growth by confronting the roots of decline is the only viable path to improving living standards and funding the rest of our programme. None of this will be straightforward or painless. Serious politics means facing tough decisions and confronting unavoidable trade-offs. The stakes are unsparingly high. If we deny them, the difficult choices facing us today will soon become impossible tomorrow. Fundamental aspects of the social contract – inflation-linked pensions, healthcare for the sick and elderly, a meaningful social safety net – hang precariously in the balance. Bond markets are ruthless arbiters; they won't indulge in fairy tales. Fundamentally, we believe in Britain. There is no smarter bet than one on the ingenuity and resilience of its people. Yet prolonged stagnation and political failure have brought us to an inflection point. We have a clear choice before us: embrace radicalism and confront difficult truths, or retreat into comfortable narratives and virtue signalling. The latter route represents yet one more betrayal of the British people, setting the stage for a Nigel Farage administration in 2029 and perhaps even a more profound political crisis to follow. It may indeed be five minutes to midnight for Britain's future, but the clock has not struck yet. The Labour Growth Group is unwavering in its commitment to choose radical reform over inertia, action over complacency. We will do everything in our power to ensure that this Labour Government does the same. The call of the British people has been loud and unmistakable. We have heard it, now is the time to rise and answer.
The Guardian
10-06-2025
- Business
- The Guardian
No 10 blocked nature concessions in planning bill amid Labour rebellion, sources say
Downing Street and the Treasury intervened to stop any concessions in the planning bill, after pro-housing MPs voiced anger over a Labour rebel amendment that attempted to strengthen nature protections. The Guardian has been told that ministers drew up amendments to the bill last week in an attempt to head off the anger of wildlife charities and rebel Labour MPs amid a backlash against the bill. Two sources with knowledge of the discussions said they were expecting the amendments to be put in the Commons this week. But the amendments never appeared, after No 10 and the Treasury intervened. Fifteen Labour MPs rebelled against the government on Monday night to back an amendment by Labour's Chris Hinchliff to the planning and infrastructure bill which would have imposed new environmental obligations, including a rigid timetable, on developers. MPs from the Labour Growth Group (LGG) – a large caucus of pro-housing MPs – had raised the alarm with the Treasury and No 10. The LGG had criticised the amendments on X on Monday, saying its members were 'against these wrecking-ball amendments, and for getting Britain BUILDING'. Hinchliff then hit back at his Labour colleagues in a post, saying he was 'not joining them in doubling down on 20 years of failed deregulation that delivers under 2% social housing a year'. Senior sources suggested there had been strong opposition from the Treasury and No 10 on any new amendments or making any firmer commitments to look at adopting any of the proposals. The housing secretary, Matt Pennycook, declined to comment, but an ally said he had not been minded to accept Hinchliff's amendments in any case. The LGG had argued strongly that mitigations in the bill would mean further delays to new housing and threaten the government's 1.5m new homes target. 'For years voters have been telling politicians what they desperately need: lower my bills, get my wages rising, breathe life back into my local area, give my kids a shot at owning a decent home,' a Labour Growth Group source said. 'Under the Tories, time and again they were ignored. 'This bill is a cornerstone in the government's strategy to show them we are on their side and will deliver those things – we're very clear that demands from pressure groups must not be allowed to derail it.' Leading environmental groups are warning the government that verbal promises over part 3 of the bill – which is focused on environmental obligations – were not enough and the legislation needed to include solid guarantees of environmental results with scientific assurances. Beccy Speight, chief executive of the RSPB, said that without amendments the bill was a regression in environmental protection. 'Until we see actual amendments tabled that address the concerns held by us, many other organisations including the independent environmental watchdog, and thousands of people, we will continue to call for Part 3 to be scrapped.' Speaking at the dispatch box on Monday night, Pennycook said the government would be looking at strengthening national planning policy – rather than directly legislating – on some key environmental policies such as introducing swift bricks for new houses for nesting birds. Pennycook denied the plans would allow developers to damage habitats if they contributed to a nature restoration fund, which campaigners have called 'cash to trash'. He said some of the bill's critics had 'flagrant misconceptions' of what the changes would do. Hinchliff said the nature restoration fund was a 'kernel of a good idea', and said his amendment would give 'ministers the opportunity to rescue something positive from the wreckage of this legislation, ensuring environmental delivery plans serve their purpose without allowing developers to pay cash to destroy nature'. MPs voted to reject the amendment, which was backed by the Conservatives and Liberal Democrats – but not by Reform UK. Pennycook told MPs he was giving serious consideration to the OEP's concerns, particularly that part 3 of the bill rolled back environmental laws and left protected sites vulnerable to development. Richard Benwell, the CEO of Wildlife and Countryside Link, said the government needed to go beyond verbal assurances and ensure the legislation contained rock solid guarantees of environmental results, scientific assurances that new approaches could work, and transparent delivery plans for nature benefits. 'Fixing the serious risks posed by part 3 will need more than cosmetic change,' he said. Nigel Farage's party had backed an amendment to install swift bricks in new homes, which Pennycook said the government would look at doing through guidance. Pennycook said he would continue to take advice and give 'serious consideration' on what more could be done for environmental protection, with further challenges to the bill expected in the Lords. Hinchliff said that his amendment had been an attempt at compromise. 'Britain's biggest nature charities are so concerned by this bill that they have been calling for the entirety of Part 3 to be removed. 'If we can't improve this bill in the Lords we won't just risk harming nature—there will be severe damage to our relationship with an electorate that cherishes green spaces. I was encouraged to hear that the minister was listening to concerns yesterday - my door remains open - I want to help the government get this right.'
Daily Mail
13-05-2025
- Business
- Daily Mail
Reform holds on to five-point poll lead as dust settles after local elections - despite Keir Starmer's desperate attempt to woo back voters
Reform is holding on to a five-point lead despite Keir Starmer 's desperate efforts to win back voters, according to a poll today. YouGov research has put Nigel Farage 's party on 28 per cent - down one since last week. Labour has gained one to reach 23 per cent, with both changes within the margin of error. The Tories were languishing on just 18 per cent, having barely improved their standing. The survey was carried out on Sunday and Monday, partly before the PM formally unveiled his 'island of strangers' crackdown on immigration. However, the measures were widely trailed over the weekend. Panic has been mounting in Labour circles about the rising threat from Reform, which picked up 10 councils, two mayoralties and the previously safe Commons seat of Runcorn on May 1. Sir Keir has insisted he 'gets' the message from voters, and has been stepping up his rhetoric on immigration. He also hailed a trade deal with the US to help revive the stalling economy. The survey was carried out on Sunday and Monday, partly before Keir Starmer (pictured) formally unveiled his 'island of strangers' crackdown on immigration. However, the measures were widely trailed over the weekend. Cabinet Office minister Pat McFadden told a behind closed-doors meeting of MPs last week that the party is facing the 'fight of our lives'. But factions are at odds over how to respond to the surge. The Labour Growth Group, an influential caucus of new MPs, has sounded the alarm that Mr Farage will become PM unless the UK gets out of an 'economic doom loop'. Chairman Chris Curtis told the Guardian: 'Britain is stuck in a complete economic doom loop. We've had low growth. 'That's led to pretty awful cuts. It's led to public services that are broken. And it's led to disillusionment and division among the country... 'Until we get out of that economic doom loop, Nigel Farage is going to become prime minister. I think the stakes are that high.' The Red Wall group of MPs have demanded a 'break away from Treasury orthodoxy'. Left-wingers have been calling for a 'wealth tax' to replace cuts to the winter fuel allowance and benefits. There has also been a push from so-called 'Blue Labour' faction for a stronger crackdown on immigration.
