Peter Kenyon

Labour Party: A Darling budget for May

Far be it from me to even contemplate interfering in the Chancellor of the Exchequer (CHX)'s perogative to determine the budgetary position just weeks ahead of the next election.

But I feel free to report my own thoughts on this issue in the context of recent discussions about the content of the 2010 Labour Party Election Manifesto.

There has been no debate about UK fiscal policy in Labour's National Policy Forum during the life of the current Parliament. Under the distinguished and politically adroit chairmanship of 'Privatise the Postmen' Pat McFadden MP, the National Policy Forum was forbidden from raising such matters. No such constraints were imposed at the meeting last Thursday between Ed Miliband, election manifesto coordinator,  and constituency representatives from Labour's National Executive Committee and National Policy Forum.

There were three out of six NEC constituency section representatives present - all from the Centre Left Grassroots Alliance slate. We all majored on the need for Labour to return to progressive taxation in its 2010 manifesto. This is a critical means of delivering 'A Future Fair for All'. 

The setting for that future is as much the budget, as the Manifesto. There is probably neither the time or opportunity for major tax reform in the 2010 budget. But there is scope for greater clarity about the direction of travel. Income tax policy and living incomes (benefits, wages and pensions) must be the instruments of choice for tackling poverty, and delivering a fair future for all. Those that can afford to pay should be encouraged to do so.

As for the deficit, the electorate is already wising up to the punative consequences of Conservative economic policy on the vast majority of people whether in work, on benefits or retired (unless extremely well-heeled). What Labour has yet to do is transform the popular perception of public debt into 'good' (not 'bad' as argued by the Conservative, Liberal Democrats and the right-wing (read most of) the media.)

There are areas of public investment that require further help. The most important in the view of many of my Labour Party colleagues at last week's meeting is council housing for rent. There is still too much slack in the construction sector. The private sector's failure to deliver affordable housing in sufficient quantity and quality is blighting hundreds of thousands of people's lives.

My worry is that Labour's budget deficit reduction programme is cast in terms of a Parliament and not as under former CHX, gordon Brown,  the expected economic cycle. We don't want a repeat of 1970 when Roy Jenkins' fiscally neutral budget did not help Harold Wilson secure a third election victory. 40 years on the markets and the banks have been rumbled.

The CHX's challenge is how to escape Treasury orthodoxy and deliver a Darling budget for May.

Housing - another failed market example

News from the National Housing Federation of a prediction that 2009/10 will see the smallest number of houses built since 1923 comes as no surprise to those of us familiar with market weaknesses. The lesson for Labour election strategists is that we have to go to the electorate with credible promises. We can demonstrate how Labour in government can no longer rely on market forces. Labour can show it is intervening to lift new starts now. And we need to offer bold commitments to build large numbers of affordable units wherever they are needed to reduce waiting lists, create jobs )mopping up slack in the construction industry), and training anew to keep pace with labour market shortages of skilled trades people. Tory Councils holding up house building, and /or refusing to insist on at least 50% affordbale social housing igrantin planning permission should be exposed for denying people affordable homes.

Of course,  Conservative 'shadow' housing minister Grant Shapps claims the data is "another failed Labour statistic". No, more a load of Shappstrap - it's a failed Blairite/New Labour statistic. That's why I remain puzzled by the idea that Tony Blair who vetoed council house building as Prime Minister can be of any help to Labour in the forthcoming election.

I just hope these NHF figures are a further reminder to Prime Minister Gordon Brown to reposition Labour as the party of government that intervenes in markets to ensure people's needs are met.

Labour delivering: more cash for council housing

Don't take my word for it. Read all about it here. Property Week reports:

The government has almost doubled its investment in building new council housing in what it has labelled the largest spending in the sector “for at least two decades”, in a sign of Labour setting out its priorities compared to the Conservatives ahead of the election.

Labour's core vote needs to ask would Cameron's Tories invest in housing for you? To which the answer would be yes, but it would be private and they would have to make a profit out of your need.

Cabinet irresponsibility and housing - who's in charge?

Blairite secretary of state for Communities and Local Government, Hazel Blears, would be better advised spending more time on her departmental responsibilities and less grabbing headlines that appear to undermine Labour's Prime Minister Gordon Brown.

There are lots of reasons why Labour has lost electoral support. But one, that is directly under Blears' control, is social housing for rent. A shortage of social housing is widely seen as one of the factors feeding xenophobia and the rise of the BNP. Labour's shameful opposition to council housing ownership (now being reversed) is part of the wretched legacy from Blair's political idol, Tony Blair.

At Labour's last NEC meeting, I asked if events highlighting Labour's efforts to keep a roof over people's heads as the recession bites could be given greater prominence in the ministerial media grid. Now that senior cabinet figures are rallying to support Labour's leader, perhaps Blears can be reminded to start delivering on social (particularly council) housing with some high profile, headline catching media opportunities, preferably before the 4 June elections. This would be a more effective way of persuading the electorate that Labour under Brown has learned from its mistakes under Blair.

Update 1609: And Tony agrees with me.

Labour unity preserved - 42-days shelved

Labour Party unity has been further consolidated by yesterday evening's announcement by Home Secretary Jacqui Smith to shelve plans to detain terrorist suspects for up to 42-days. I opined a week ago that this could be the first test of new-found unity post-Conference. My suggestion was:

Government can maintain its concern on the record, so that in the event of the need for longer powers of detention emergency legislation can be put before the House.

The Home Secretary told Parliament:

I have prepared a new bill to enable the police and prosecutors to do their work – should the worst happen, should a terrorist plot overtake us and threaten our current investigatory capabilities. Some may take the security of Britain lightly. I don’t. The Counter Terrorism (Temporary Provisions) Bill now stands ready to be introduced if and when the need arises. This would enable the Director of Public Prosecutions to apply to the courts to detain and question a terrorist suspect for up to a maximum of 42 days.

Quite so. Honour all round. Now the banking system has been rescued from systemic failure, it's time to focus on (among other things) reviving the economy, cutting taxes for low and middle-income families, building council houses, buying up abandoned private housing developments and pressing energy companies to pass on wholesale price cuts to retail customers.

Conference merry-go-round

Today, the Labour Party Annual conference will debate housing policy. Debate? Well, yes. I know I had a dig at the idea of debate in my last post. That was at the design of the Party website. There actually has been the same sort of debate that has been been taking place every year since Partnership in Power was agreed in 1997.

The change this year is that contemporary resolutions have been re-labelled as contemporary issues. Among the five contemporary issues agree for debate in the Priorities Ballot on Saturday is housing. This issue can be summed up in two words: council housing.

Conference has voted for restarting a council housing building programme every year since 2003 (I think). Yet every year our Labour government has effectively ignored the call reflecting the top down, nanny state, Tony Gordon knows best, local democratically elected bodies can't be trusted mentality that has dominated our politics for too long.

Not only do delegates want to debate the issue, they will also be considering a report from a National Policy Form (NPF) sub-committee report on the subject arising from a debate on the issue last year. Veteran campaigner Austin Mitchell MP is reported in today's Campaign Briefing recommending rejection of the report officially know as an Annex to the NPF report.

I fear Labour Party brothers and sisters will vote for remission i.e. sending the subject back to the Policy Commission responsible for housing policy - Creating sustainable communities - I'm hoping delegates heed Austin's advice, take a deep breath and vote to reject the Annex on a card vote. That's the way that every member, individual and affiliate can see how their delegate represented their views.

Don't hold your breath.

Flint sparks Labour party policy making furore

Caroline Flint's interview with the Guardian reported yesterday poses fundamental questions about Labour party policy-making. OK, No.10 backed away from endorsement, but that's not the point. The deadline for submissions to the Party's second stage policy making process is 28 February 2008. The issues she raised are new. As a Labour Party member/MP/government minister she has the same rights as every other member to make submissions. It is clear from reactions she has provoked questions ranging from her own sanity/political judgement to recognition that there are legitimate policy issues buried in the opinions she voiced on the evidence available to her as a minister.

According to the Labour Party website the Co-convenors of the Labour Party Creating Sustainable Communities Policy Commission are Hazel Blears MP and Michael Cashman MEP (NEC), the Government members are Malcolm Wicks MP, Hilary Benn MP, Ruth Kelly MP, Andy Burnham MP, the NEC members are Jeremy Beecham, Jack Dromey, Christine Shawcroft, Harriet Yeo and Walter Wolfgang, and the National Policy Forum members, Gemma Doyle, Andy Furlong, Joe Morgan, Alan Ritchie, Steve Warwick, Daniel Zeichner, Martin Eaglestone and Mark Glover

We are not told even as members when it meets, what is on its agenda, or what the outcomes of its deliberations are. I don't suppose it even crossed Caroline's mind that at least it would be courteous to consult the co-convenors before sounding off.

I would like to be a fly-on-the-wall when the Flint plan for the work-shy gets tabled. That's assuming, of course that she has any sense of collegiate responsibility to do it the way the rest of us active party members have to.

Is Labour reneging on its Council housing commitments?

I bumped into Alan Walter, chair of the campaigning organisation Defend Council Housing. He thrust the latest briefing document from DCH into my hand. It makes grim reading from anyone like myself who thought the new Leader actually wanted to build new Council houses. Worse there appears to be some sort of vendetta against Council tenants buried in the small print of the Housing Bill now expected to be rushed through its second reading in the House of Commons tomorrow. Austin Mitchell MP has tabled a new Early Day Motion. Worthy as they are what matters are votes on the floor of the House and amendments in committee.  Jon Cruddas did some interesting work on marginal constituencies and housing waiting lists during the Deputy Leadership campaign. Whether the latest polling data in tomorrow's Independent should be taken too seriously or not is a moot point. But I hope every Labour MP will take the time to read the Housing Bill and DCH's analysis and ask themselves: " Am I a turkey?" and "Is it Christmas?"