By James Wilkins
The latest economic figures showing that the British economy shrank in the last quarter of 2011 underlines the damage that Tory economic policy is causing – both to growth and living standards. A clear alternative to its ‘austerity’ policies is needed, but the Labour front bench’s recent further capitulation to the Tory economic framework weakens both the struggle for such an alternative and its own electoral position.
By Stephen MacAvoy
On 13 January Ed Balls, previewing a speech to the Fabians, launched a new Labour policy – that Labour supported the Tory-led governments public sector pay freeze and it would start from a baseline of maintaining Tory cuts.
By Stephen MacAvoy
The forthcoming election is being fought with all three main parties committed to unprecedented cuts in public spending. As the Institute for Fiscal Studies has recently described, the Conservatives’ plans for public spending from this year onwards would make it the “tightest five-year period since (at least) World War Two” whilst Liberal Democrat and Labour plans would see the “tightest four-year period since April 1976”. The Financial Times has outlined various scenarios of what this will mean for the population here.
This consensus on cutting spending needs to be opposed by the widest possible coalition. Not only will these cuts unleash serious attacks on living standards of the population but they will undermine the restoring of economic growth, as the TUC has recently noted. Given that the recession has been driven by a collapse in investment and the government budget deficit is overwhelmingly a product of the falling tax receipts caused by the recession, the priority should be to increase investment.
By Stephen MacAvoy
Following the Liberal Democrats’ rise in the polls, the Blairites have launched an offensive to secure their long held goal of a Lib-Lab coalition. The BBC’s Nick Robinson has reported that senior Labour figures see the prospect of a Lib-Lab post election deal as the “the ultimate fulfilment of the New Labour mission.”
It is now less than two weeks till election day and postal voting is commencing, so one would expect Labour’s campaign to be focussed on maximising its vote. But this is not happening. Instead in the official campaign, run by Peter Mandelson, the formation of a coalition is being promoted. Mandelson’s memo to Labour Party members on 18 April, in which he said he was “not against coalition government in principle”, was flagged up by The Independent as “the first time a senior Labour figure has spoken about a Lib-Lab coalition” in this election. To help secure this outcome the Lib Dems are being defended, with Mandelson criticising media attacks on them. Simultaneously, Labour and its Leader’s prospects have been deliberately run down, with the FT titling an article “Mandelson admits voters tired of Labour”.
by James Norton
All the opinion polls which have come out since the budget confirm the politically damaging character of the budget and the consequent deliberate decision by Alistair Darling to declare that public spending cuts would be ‘tougher and deeper’ than under Thatcher.
Three new polls were published on 29/30 March. Opinium registered the Tories lead increasing from 7% on 22 March to 10% on 29 March. ComRes, which had give a Tory lead of 5% on 28 February, by 28 March recorded a Tory lead of 7%. YouGov, which prior to the budget had seen the Tories lead fall as low as 2%, on 29 March recorded the Conservatives having opened up a 7% gap over Labour.
In short the period prior to the budget, when Labour had been emphasising the difference between its position and Tory cuts, saw the Conservatives lead shrink dramatically. The moment that Alistair Darling delivered the budget, and deliberately talked about cuts worse than Thatcher, Labour’s position worsened significantly.
By Stephen MacAvoy
The narrowing of the Tory lead in the opinion polls over recent months underlines that the outcome of the next election is not certain. The political implications are clear: a shift by Labour to policies that motivate the overwhelming majority of the population threatened by the Tories’ planned harsh economic policies could prevent a Conservative government.
Despite the backdrop of a deep economic downturn and strong backing from most of the press amongst other factors, the Conservatives are still only polling on average at around 40 per cent (see UK Polling Report 28 December).
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