what does that well known Starmerite Paul Mason say about the current Labour Budgetary offering?
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Rachel Reeves, in a Budget response suddenly dumped on her by Keir Starmer’s positive Covid-19 test, gave a very effective answer. We can spell out a coherent alternative. And she did so with such clarity that it had the public schoolboys on the Tory backbenches rattled to their Asprey cufflinks.
Labour, unlike Sunak, would go on borrowing to invest. It would cut taxes on working people, starting with VAT on fuel tonight, and abolish business rates altogether, replacing them with taxes designed to force the tech monopolies to pay their fair share. It would, in addition, invest £224bn over eight years on decarbonising energy and transport.
While the Tories flaunt
their insouciance over climate change, cutting the taxes paid by short-haul air passengers on the eve of the Cop26 summit, Labour has placed climate mitigation at the very centre of its investment plans. Reeves pointed out that, had the Tories not spent ten of the last 11 years
squeezing life, growth and social justice out of the UK economy, Britain might not have suffered the worst recession and the worst scarring of any major country.
She told, in short, a convincing alternative story – something Labour has struggled to do since Starmer took office. By summoning the image of Johnson and Sunak as street pickpockets, buffooning around while they lift your purse, doling out favours to champagne-drinking bankers on pointless short-haul flights, Reeves also dramatised the social dynamics.
For all the fawning press Sunak gets from media types inside the network of favours, garden parties and wedding receptions that surround the Tory elite, the Chancellor wants – openly and philosophically – to radically shrink the welfare state, but who’s been forced by the unexpected arrival of Covid-19 to put it off for a bit.
The lives of real people, facing wages eroded by inflation, rising tax, fuel and energy bills, and crumbling public services, do not match the sunny optimism generated within Sunak’s Potemkin village. And that is Labour’s opportunity. In Red Wall seats where one Tory MP after another voted to flood local rivers with sewage, the penny has begun to drop: that people feel worse off because they are worse off; and that nothing in the actions of the Tory party suggest how they and their families might claw their way out of grinding, multigenerational, post-industrial distress.
So the warnings from some Labour-leaning commentators – that the Tories have put their tanks on Labour’s lawn and that the party’s electoral prospects are therefore doomed – are misguided. The differences could not be clearer.
And in Reeves the party has found – both at conference and by complete accident at the Budget – its most effective and gutsy communicator. Yes, she authored a book about Alice Bacon, “hammer of the Trotskyists”, and once disparaged benefit claimants, but Reeves also seems able to articulate the basic class antagonism Labour was formed to address.
In a party bereft of talented and articulate lawmakers, and of professionally competent people, this is all you can ask of a centrist social democrat. And Reeves’s achievement raises an interesting question. Last week, Dominic Cummings offered Labour a massive brain dump of advice on how to defeat Boris Johnson. The core of it is impossible to achieve: forget the socially liberal agenda of the labour movement and lure potential Tory switchers with promises to terrorise terrorists and jail criminals.
But in one respect, Reeves, and we should assume Starmer (who held the pen on the response speech until minutes before it was delivered), have followed Cummings’s advice – and were doing so as early as the Labour conference. They have begun to frame the party’s anti-austerity offer around tax cuts for working people – VAT, National Insurance and business rates – as well as borrowing. For it is a truism often forgotten by the Labour left that fiscal austerity can be embodied in a tax rise just as much as in a spending cut."