FREEDOM FROM POVERTY: THE FORGOTTEN NATION
‘True individual freedom cannot exist without economic security and independence. People who are hungry and out of a job are the stuff of which dictatorships are made.’
FRANKLIN D. ROOSEVELT, 1944
In my eighteen years as an MP, I have come to learn that the most effective politicians are those acting out of a very personal sense of injustice. I am often accused of being too rational, too reasonable, of rarely showing temper. This might be the case, but that does not mean I am not motivated by very clear and firmly held convictions, beliefs I have held since I entered the House at the age of twenty-three.
By then, I had witnessed the turmoil of the three-day week and the power cuts, and I was determined that people and government should never again be held to ransom in this way. I had also seen the disparity in incomes between some of the poorer families of my home town and the better-off workers who had migrated from the central belt of Scotland to work in the Corpach pulp and paper mill, which gave me a heightened awareness of inequality and its negative effects.
This crystallized when, as a teenager, I participated in the finals of the Scottish Schools Debating Tournament. For the first time, I came across people who were of my own age but from vastly different backgrounds. The disparity in outlook and aspiration between pupils from tough inner-city Glasgow comprehensives and those from fee-paying schools in Dundee and Edinburgh seemed remarkable to me. The wealthier participants were visibly more confident and outspoken, and carried themselves with self-assurance. I did not come from an impoverished background, but this was nevertheless the first time I had ever stayed in an hotel. I was awed by the experience, and this set me apart from other youngsters who treated the place as if it were an extension of their homes.
There was no difference in intelligence or eloquence – we were all gathered there because of our debating skills. But when you asked these teenagers what they wanted to do in later life, it became clear that those from poorer backgrounds expected less, and received it. They talked about ‘a job’, ‘a house’, whereas their more affluent counterparts had a very clear sense of what ‘profession’ they wanted and where they were going to live.
The experience was an eye-opener. It was, if you like, the beginnings of my sense of injustice. It gave me a determination to tackle the deep divisions within our society, which remains unabated to this day. Labour was once regarded as the party of social justice. The party believed in providing for the poorest, and that unarguable viewpoint was the party’s keynote, for many decades. It is safe to say that prior to the 1997 general election, few voters or even card-carrying members could have told you much about Labour’s foreign policy, or its attitude to European trade. They voted Labour and they contributed to its coffers because of its stand on social issues.
This does not mean that Britain should return to Old Labour policies. The dogma of class war, nationalization and tax-and-spend for the sake of it made a major contribution to many of the problems that Britain faces today. I want no part of any New Old Labour plan, yet in throwing out the worst of its past, New Labour has forgotten many of the people it should still be serving. As Mr Blair’s close ally, John Monks put it recently, New Labour seems to be treating some of its most loyal voters like ‘embarrassing elderly relatives’ at a family party.1 It was poignant that, on the night of the first vote to cut benefits in the new 1997 Parliament, Labour ministers supped champagne at Number 10 with a host of celebrities. Of course, had the politicians in question opted for tomato juice and an early night, the problems of Britain’s poor and dispossessed would not have vanished, but as a symbol of New Labour’s concerns, the juxtaposition was as symbolic as it was crass.
In an age where favourable media coverage and a carefully managed public image are lamentably as vital to a government as its policies, it was inevitable that we would see the Blairs hobnobbing with the Gallagher brothers and playing host to the stars of Cool Britannia. They can scarcely be reproached for that. Far more insidious is the growing body of evidence that suggests New Labour’s chief concern lies in courting the approval, and the votes, of Middle England, and that, simultaneously, it has lost interest in the poorest sections of society.
Take the slogan ‘education, education, education’: Tony Blair claims that equal access to a free and high quality education is paramount in dismantling the boundaries between rich and poor. I do not disagree, but if we assume the role of auditor for a moment, and look at two very different regions of England, we immediately see significant disparities. In Cornwall, 14.9 per cent of pupils are eligible for school meals, yet since May 1997 its schools have received only £308 per pupil through the system of competitive bidding, under which Local Education Authorities and schools have to apply to central government for funds. Rutland, by contrast, is one of Britain’s richest counties, with only 6.4 per cent of pupils eligible for school meals, yet it receives £1,006 per pupil. These figures suggest that the more disadvantaged areas of the UK are doing relatively badly when it comes to education funding, while the more comfortable, vocal and consequently more powerful regions grow even stronger. When the young people of Cornwall and Rutland compete in tomorrow’s job market such disparities will inevitably have knock-on effects.
A similar trend seems to be at work when we look at unemployment figures. Since Labour came into power, the biggest drops in unemployment have been felt by the most affluent constituencies. Conversely, between the years 1996 and 1999, the constituencies where unemployment fell the least were among the poorest. Constituency unemployment figures are not the most representative way of examining poverty as a whole, but these figures suggest that affluent communities have benefited more than poorer ones under New Labour. The two constituencies with the biggest improvement were in the most affluent region of the UK, the south-east, and the two seeing the least improvement were in Lancashire, in the second poorest region.2
The government has over-trumpeted its successes in reducing unemployment. The National Institute of Social and Economic Research has concluded that of the 191,000 young people who have passed into jobs under the auspices of the New Deal since its launch in April 1998, 115,000 would probably have found work anyway, due to the strength and growth of the economy. The New Deal was Labour’s attack on unemployment, giving eighteen to twenty-four-year-olds who had been jobless for more than six months the opportunity to receive ‘in-job’ training, and offering employers incentives to give such people temporary work and training. After a four-month gateway period in which work is sought, there are various further options, including subsidized employment on short-time education and training. It marked a bold attempt to undermine the benefits culture and replace it with a work culture, but there is no point doing that when there is not enough work to go around.
In practice, the New Deal has turned out to be nothing more than a repackaging of the old Youth Training Scheme. Employers have benefited from a cheap source of temporary labour and cash sweeteners for using it, but in more than a fifth of cases, there were no real jobs for trainees to go to after the period had ended. Sixty per cent of the starters to the full-time education and training option had left by September 1999. Of the 191,000 ‘placed’ in work, at least 50,000 were back on benefits within three months of completing the scheme. The National Centre for Social Research has shown that only a quarter of New Deal leavers were continuously in employment for six months after completion of the scheme. Such figures indicate that little is being done to erode the benefits culture.
As with the boom in the eighties, there are plenty of social groups who have not benefited at all from the recent economic upturn. An estimated 1 million children live with parents who are both out of work. Labour’s policy has been to provide incentives for parents to take work, even