Tag Archives: welfare

Labour Clears The Way poster from 1911 general election

The anti-people’s budget and the constitutional crisis that isn’t

The government rhetoric about the House of Lords’ threat to derail their cherished plan to cut tax credits has been extraordinary over the last few days. To believe it, you would have to think that we are in the deadlocked position Parliament found itself between 1909 and 1911, when the then Liberal government attempted to force through David Lloyd George’s so-called “People’s Budget,” which established the foundations of the modern welfare state and, less successfully, sought to introduce a new system of taxation based on land values. It resulted in a constitutional showdown and eventually the Parliament Act 1911, which limited the powers of the Lords and sought to eventually replace it with a chamber “constituted on a popular basis”.

Then, the landed gentry clubbed together in the Lords to thwart a popular mandate for a more caring system of welfare for the working poor. Now, the Conservative government (which includes a number of members of the landed gentry) are throwing a hissy fit because our semi-reformed House of Lords is threatening to block an attempt to penalise the working poor. We aren’t talking about legislation here, which the Parliament Act prevents the House of Lords from being able to block, but an unamendable and thus unscrutinisable statutory instrument, which the government could retable the very next day if it wished to. In the past, governments have got extremely frustrated by the parliamentary ping-pong which has necessitated when the House of Lords and House of Commons disagree. Here, the government is losing its shit before the first serving volley has been fired.

I suspect this rather shrill reaction has more to do with George Osborne’s insecurities – possibly related to him seeing his future Prime Ministerial career retreating into the sunset – than it has to do with any true constitutional outrage. It was therefore extraordinary to hear this morning that Corbyn’s Labour have already capitulated. Of course, it is reasonable for Labour and the Lib Dems to have a fall back position to support if the crossbenchers are not prepared to support the fatal motion to kill the SI; but to go one step further and adopt the Tory position on constitutional sclerosis is bizarre. This puts Jeremy Corbyn in the odd position of a man who won’t bend the knee before the Queen but is all too eager to prostrate himself before the Prime Minister.

It should not be too hard to see that the Tory position on this is all bluff and bluster. The Tories can’t unilaterally suspend the Lords, as they were suggesting a few days ago. To change the powers of the Lords would require a new Parliament Act and re-open the can of worms on Lords reform, which they insisted was not a priority three years ago. To stuff the Lords with Tory peers would be an act of political suicide; it would make democratic reform of the Lords almost inevitable and make Cameron and the Tories look like the most corrupt administration in parliamentary history; don’t forget that even the Liberal threat to do the same in 1911 was part of an electoral pledge in the face of an overwhelming majority of flagrantly self-serving hereditary peers sitting in the Lords. Even Cameron cannot believe he is in the same position, not matter how great his powers of wishful thinking might be.

If this is their threat, I say bring it on. Fortunately, so does Tim Farron. I’m baffled that Jeremy Corbyn isn’t similarly energised at the prospect; just what is the point of him?

Lib Dems, welfare and the art of negotiation

Nick Clegg signing the NUS anti-tuition fees pledge.As former, disgruntled party members go, I think it is fair to say that I’ve been remarkably discreet and reasonable. I’m not a huge believer in trashing my former colleagues (and still, in many cases, current friends) in some vanity exercise designed to justify my resignation ex post facto, and tend to distrust the judgement of people who feel the need to endlessly do so. Aside from a couple of blog posts, I’ve generally kept pretty schtum, and have very little time for those who denounce the Lib Dems as having sold out and failed to achieve anything in government, as if the position they were put into wasn’t fiendishly difficult or that the alternative – a Tory majority government – would be somehow better. Generally speaking, while I think they are getting the big picture pretty badly wrong, on a daily basis the Lib Dems are making a very real difference in government.

You can tell there’s a but coming, can’t you?

But, then. Tuesday. What, the actual, fuck? Just for the sake of argument, let’s completely ignore the human cost of yesterday’s vote on benefits. Let’s just focus on the politics. Back in September, flushed with his (non) apology about his handling of the tuition fees debacle going viral on YouTube, Nick Clegg issued an ultimatum: “For me, it is very simple. You can’t have more cuts without more wealth taxes.

Well, aside from some tweaking to the pension rules, he didn’t get any wealth taxes this autumn. But you know what? The cuts are happening anyway. So much for “it is very simple”.

Unless, apparently, you are Stephen Tall: “It’s the kind of compromise that happens within a Coalition government.” Well, er, no. The “compromise” was that the Tories would get a cut in benefits and the Lib Dems would get a wealth tax. Spinning retrospectively that all that has happened was Cameron and Clegg split the difference is delusional. What actually happened is that Clegg made an opening gambit, Osborne called his bluff, Clegg blinked, and got a pity concession so he could at least pretend to have saved some face. Carry out your threats or don’t make them; you won’t get a second chance.

Putting benefits at the centre of a horsetrading negotiation is one thing. Failing to carry out threats is quite another. You can argue that the Lib Dems have conceded too much in this coalition, but tuition fees aside, they haven’t actually done that bad a job of over-reaching or making pledges they weren’t prepared to stand by. Clegg, to his credit, has carried out his threat to block boundary changes in exchange for the Tories’ betrayal over House of Lords reform (although the fact that the zombie boundary review lives on within the pages of the Mid Term Review speaks volumes about the weak leadership of both Cameron and Clegg). Things were looking up. Today’s capitulation however can’t be put down to naivety. What it suggests is that for Clegg there ultimately is no bottom line and no point at which he is prepared to walk away. What it tells Osborne is that he can merrily keep salami slicing the welfare bill, and the Lib Dem response will be the Stephen Tall “genius” move of “splitting the difference” each time. It would be comedy gold if it didn’t affect the lives of so many vulnerable people.

Speaking of comedy gold, it should not be forgotten that the Lib Dems communications department would very much like its parliamentary party to keep pushing the line that “The Conservatives can’t be trusted to build a fair society.” Based on today’s performance, it is manifest that that assertion is not true. Of course you can trust the Conservatives. They have an agenda and they doggedly stick to it. They might not want a fair society (although by their standards, and many voters’, they do), but they can damn well be trusted. That consistency counts for an awful lot in the electorate’s eyes.

It is Clegg, and all those who go along with him, who can’t be trusted. From a communications point of view, flip-flopping in this way is more damaging to the Lib Dem brand than any number of backbench MPs going off message. The Lib Dems’ communications problem isn’t non-entities saying the wrong thing; Clegg himself is the living embodiment of the Lib Dems’ fundamental communications problem. Focusing on anything else is just displacement activity.

Oh, and a final thing. I really don’t understand why it is that so many Lib Dems are so up in arms about Ken Clarke’s secret courts legislation, with talk of special conferences and all out war coming my way from numerous sources, while the best welfare gets is a shrug of the shoulders. It isn’t that I don’t think civil liberties are worth standing up for; it’s the lack of a sense of proportion. Enabling the government to hold secret trials, at most, might affect thousands of people. Benefit cuts stand to affect millions.

Even if you agree with these cuts, from a civil liberties perspective, surely last year’s legal aid cuts were more onerous than the secret courts? I just don’t understand why so many seem prepared to die in the ditch over a principle that affects a tiny minority, while don’t appear capable of doing anything more than shrug their shoulders over cuts which affect a whole segment of society. Again, it appears dangerously to resemble displacement activity; the wider cuts are too hard and too vast, so it is easier to focus on small measures and exaggerate their importance (see also: this utter preoccupation with Labour hypocrisy and opportunism as if that somehow justifies anything whatsoever).

90% of the criticism of the Lib Dems is at best unfair, at worse downright mendacious. But what I saw on Tuesday was a party that has ceased to have any kind of strategic nouse or moral compass whatsoever; that will doom them more than anything.

Dealing with failure

Frank Field’s deconstruction of the New Deal for Young People makes damning reading. What is perhaps is even more damning is that despite the fact that despite the fact that the Department for Work and Pensions have had all day to formulate a response, the ‘rebuttal’ on the BBC website remains ultra-lame:

“Since 1997 the number of young people on unemployment benefits has fallen – not risen – by well over 100,000.”

… which only helps to make Field’s point. These kids are not getting jobs, they are turning into what is now ubiquitously referred to as ‘neets‘.

It is easy to forget quite what a flagship policy this was for Labour back in 1997. It was the basis of one of their famous five pledges and was initially funded by the only tax increase they promised – a windfall tax on utility companies. For a decade, if any opposition MP raised the merest of objections to how effective the policy is, the government came down on them like a ton of bricks. For years this has been trumpeted as one of their main, and most proud, achievements.

So for the New Deal to have not only failed to make progress on youth unemployment, but to actually go backwards, is a body blow to the pretty much everything Labour have stood for over the last decade. Add to this the disastrous tax credit fiasco and you can only marvel at the fact that the only person who has a shot at being their next leader is the main architect of such failure.