RedLabour T&W Newsletter

Volume 1 Issue 2 January 2015

In this issue:
The Autumn
Statement:
Implications
and a
Progressive
Labour
Response

Regional
Devolution, the
Left and English
Nationalism

NHS staff fight back

999Callfor Change
Defend the NHS

Changing Britain
Together
Developing
Labour Policy

and Manifesto

Welcome!
Welcome to Volume 1, Issue 2 of Red Labour T&W News, the Newsletter for Red Labour
Tyne & Wear. This newsletter will be published monthly, on the first Monday of each month.
We encourage you to share this newsletter with your networks and promote the ideas
contained within it as a means of ensuring that Labour is committed to a democratic
socialist future which reflects the beliefs, values and principles of its rank-and-file members.
Labour must rediscover its core principles of social justice, equality and socialism in order to
win back votes lost since 1997 while attracting new voters that support our beliefs. We ask
you to support these beliefs by spreading them widely within the labour movement.
We welcome feedback from Red Labour supporters. If you have any responses to the
content, any comments or suggestions or if you would like to contribute to a future issue of
the newsletter, please email us at: redlabourintyneandwear@gmail.com

News & Events

Next meeting of Tyne & Wear Red Labour
Tuesday 10th February 2015 at 6.30pm Venue tbc
(note meeting previously scheduled for Monday 26th January cancelled)
If you would like to be added to our mailing list please email us at
redlabourintyneandwear@gmail.com

The People's Question Time - North East People's Assembly

Thursday, February 5th 7:00 PM

Red Labour
Who are we and
what is this all
about....

Royal Station Hotel, Newcastle upon Tyne,

Organised by the People's Assembly, this will be an anti-austerity alternative to the BBC's
Question Time and a chance to hear and question a range of perspectives on the big
political topics of the day.
NUT general secretary Christine Blower and local Green Party candidate Shirley Ford will
be on our panel with other panellists to be announced soon.
The format of this event will be very similar to BBC Question Time.

Tickets available here

Like us on Facebook
Red Labour Tyne & Wear Facebook

The Autumn Statement: Implications and a Progressive Labour Response Michael

Lloyd
It wasnt until the next day, when commentators had been able to analyse the implications of Osbornes current
position and OBR forecasts for the next five years, that Osborne and the Tories began to retreat from the most
blatant of neo-liberal agendas for the country. In the aftermath of the Institute for Fiscal Studies suggestion that
colossal public expenditure cuts were implied by the Tories suggested economic policy, taking the UK back to the
1930s in terms of the relative size of the state, Osborne began to accuse the BBC, among others of being guilty of
hyperbole. The suggestion now is that we only need to go back to 2002 and only achieve a balanced budget by
2020, rather than the forecast 23 billion surplus. Presumably it may take another couple of years after 2020 to
reach the 23 billion surplus and reduce the size of the state back to the 1930s?!!
Given the blatant presentation of this neo-liberal agenda one might have expected the Labour Party to have
reacted, at last, by exposing the agenda and by indicating that this scenario was not only challenged, but was
utterly and completely rejected. Unfortunately, Labour spokespersons similarly talked about balancing the books;
not making unfunded (by taxation) expenditure commitments, and borrowing only to fund infrastructure
investment expenditure.
The economic illiteracy of mainstream politicians is a concern. There is no need to achieve a balanced budget and
certainly not a surplus, except accidentally. The norm is for economies to run with manageable budget deficits
(and hence slowly reducing public debt/gdp levels) in order to ensure economic growth. One way to avoid running
budget deficits is to run a permanent net export surplus (Germany does this, but to the detriment of the rest of the
world, and particularly to the detriment of the rest of the Eurozone). The only other way is for the private sector to
run a permanent increasing deficit, i.e. via private debt. The problem here, as the UK will discover if the level of
private debt continues to explode, is that growth will grind to a halt as the private sector is forced to
deleverage/reduce its debt burden.
That the above analytical propositions are correct is evidenced by the fact that the UK economy has achieved
surpluses only 7 times in the past 60 years and the US economy for only 7 brief periods since 1776. Often periods
of surplus have been followed by recessions as lower borrowing in the private sector tries to restore the sector to
financial viability.
The dependence of private debt has been a feature of the UK economy since the 1980s. This is linked to the
reducing share of wages in national income. From 1950 to 1980 the average share was around 60%. From 1980 to
2010 (and it has certainly not improved since then) the average share was around 55%. Correspondingly, the share
of profit has increased from 25% to 30%, while investment, within that share, fell from 20% to 15% - reflecting the
increased share of the financial sector in the total profit share. N.B. The remaining percentages are accounted for
by self-employment income and net taxation on employment.
This description provides a rationale, and an opportunity, for Labour to reverse the declining share of real wages
by: substantially increasing the minimum wage; further application of the living wage; relaxing the constraint on
public sector pay; allowing collective bargaining to operate without tight constraints, and ending zero-hours
contracts. Such a policy will lead to wage-led growth as advocated by the TUC and, importantly, will lead to
reduced in-work tax credit payments and a self-limiting reduction in the budget deficit via the economic growth
achieved. Additionally, rent control in the private rented sector will reduce the need for housing benefit, which is
not welfare, but essentially a subsidy to landlords.
Higher taxes on high incomes and net wealth, already promised by Labour will complete a financial policy mix
which will move the economy into a growth phase and maintain and increase the size of the state, which can be
both progressive and enterprising. It should be noted that increasing wages will stimulate investment in
innovation. Clearly a range of other policies are required, but positive marketing of the ones indicated above can
replace the tired and erroneous rhetoric about balancing the books. Such a policy narrative can both begin the
task of redressing the growing inequalities in our society and of challenging the neo-liberal direction in which we
are currently travelling. It represents an agenda for change.

Regional Devolution, the Left and English Nationalism - Michael Lloyd

The English are slow to accept the need for constitutional change or even the need to discuss the constitution.
Having an unwritten constitution is proof, apparently, that we really do not need to worry about constitutional
issues.
But English nationalism is now growing, stimulated by UKIP, which despite its title is a right-wing, populist English
nationalist party. The furore over Emily Thornberrys tweet after the Rochester by-election is proof of the febrile
nature of the current political context around the issue. Yes it was stupid of Thornberry not to have recognised the
potential for the interpretation placed on the tweet, particularly with Lynton Crosbys dirty tricks agenda on
behalf of the Tories. However, the Labour Party must be careful to understand the full political implications of the
agendas of those who espouse both hard and soft versions of English nationalism.
English nationalism, as a political persuasion, is relatively recent, awakened over the past 30/40 years by the
strengthening Scottish nationalism internal to the UK, and externally by the increasing degree of globalisation. For
the previous 150 years the English have been content to call themselves, essentially, British; bolstered by an
Empire, in the running of which they co-opted the Scots and the Welsh. The recalcitrant Irish remained aloof,
resistant also to the British Protestantism. Nationalism promotes calls for nationhood and we can see this
emerging now in England.
From a left-wing perspective this spells danger. The English administrative elites and the right-wing political class
want to hold on to the power of the central state. Sensing the demands for decentralisation and the
disenchantment with Westminster the response has been to move a measure of power to local authorities and
particularly the large cities of the North such as Manchester. This marginal shift of control over elements of
funding, it is hoped, will stave off the demands for the sort of regional devolution which has led to increasing
power and control in Scotland. The naivety of council leaders and some MPs in accepting this devolution without
questioning the motivation behind this minor transfer of responsibility is worrying.
In the North-East, the regrettable feeling in Teeside that the power lies in the north of the region, and particularly
with Newcastle, has already led to a separation between the LA 7 and the combined Teeside authority. This split
has not been helped by the Coalition Governments deliberate sabotaging of the regional identity by abolishing the
RDA and establishing two separate LEPs. We need to reassert our North-East regional identity
It is imperative that a campaign begins, on the left, to establish genuine regional devolution of power and funding
to the North-East. The best guarantor of greater local autonomy for individual councils, including parish councils, is
to have a seat of regional power and governance. It is to be hoped that Labours Constitutional Convention will
recognise the need for the political as well as the economic need for real regional devolution, within the context of
full-blown national and regional devolution in the UK as a whole.

Labour's Policy Statements - Changing Britain Together

1. Raise the Minimum Wage to 8 an hour and ban exploitative zero hour contracts.
2. Freeze energy bills until 2017 while reforming the broken energy market.
3. Cut the deficit more fairly by asking those earning over 150,000 to contribute a little more through a 50p
rate of Tax.
4. Get at least 200,000 homes built a year by 2020 and deliver a fairer deal for private renters
5. Scrap the Bedroom Tax.
6. Require all firms that have a major government contract to offer apprenticeships.
7. Repeal the Tories plans to bring competition and privatisation to the NHS.
8. Ensure the NHS has time to care with 8,000 more doctors and 20,000 more nurses, funded by a mansion tax
on homes worth over 2m.
9. Control immigration so that entitlements to benefits are earned and wages are not undercut.
10. Devolve power to Scotland, Wales, and the cities and counties of England.

See next page for how Red Labour supporters can contribute to improving on this....

We are still being invited to contribute to developing Labour Party Policy

and the Manifesto - Diane Jones

Following the Agenda 2015 exercise and the National Policy Forum and Annual Conference 2014, a 218 page
document National Policy Forum Annual Report was produced which sets out policy under the 8 Policy area
headings:
Stability and Prosperity, Work and Business, Living Standards and Sustainability, Stronger, Safer Communities,
Education and Children, Health and Care, Better Politics, Britains Global Role,
Angela Eagle, Chair of the National Policy Forum says Since being elected Chair of the NPF two years ago, I have
prioritised reforming our policy process to make it more meaningful, transparent and engaging.
An overarching statement 'Labour's Commitment to Equality' introduces the Report:
Labour is the Party of equality. We believe that no person should suffer discrimination or a lack of opportunity
because of their gender, gender identity, age, disability, race, religion or belief, socio-economic status or sexual
orientation. In government, every decision we take will be taken with that in mind. We will ensure the policies
across these eight documents and in our manifesto will be implemented ensuring that they further rather than
hinder this cause. Labour has always led the fight for equality, but our fight is not yet won. We will not rest until
everyone can live their lives free from hatred, fear and oppression. In government we will work to remove the
structural and social barriers that stand in our way.
Note that the party states that socio-economic status is included as one of the criteria! No discrimination or 'lack of
opportunity'. This should surely be very significant in terms of policy on the economy, austerity, the deficit and
benefits...

There is also a 29 page summary document Changing Britain Together which says

Our work is not yet finished, and as we begin to prepare our manifesto, we want to hear your views on our
programme, what the challenges we face mean to you, and your hopes and expectations of the next Labour
Government.
To join the conversation about our priorities for Britain, visit Changing Britain Together which says Help shape our
2015 manifesto by joining one of our supporter panels on five key issues:
Low Pay, Housing, Apprenticeships, Living Standards and NHS
First, contribute your views and ideas online.
Next, well be inviting a group of supporters on each panel for a round-table discussion with the Shadow Cabinet
member responsible for that issue.

So, let's have our Red Labour say!

Defend the NHS

999CallforChange - Darlington 3rd December 2014 - Geoff Walker

On a cold and frosty Saturday afternoon in December, a group of committed individuals met to plan a long-term
strategy for defending the NHS against its established pattern of privatising services. Individuals were in attendance
from around the country and represented a number of organisations, including KONP.
The meeting began with a discussion on the #astroturfing of the Peoples March for the NHS by the Parliamentary
Labour Party (PLP). Astroturfing I hear you say? Well, this is the process of political parties hijacking grass roots
non-party political activity and presenting it as their own. There is considerable evidence that the PLP
systematically hijacked the march for its own ends and created a feeling of alienation and discomfort in the grassroots campaign. This is not surprising as the rank-and-file Labour Party is now almost devoid of any realistic
mechanism for policy formulation. Its policy is decided, largely behind closed doors, at Labour HQ and submitted to
the National Policy Forum for tacit approval.
The group were united in their criticism of Clive Effords Bill and unanimously in favour of Pollocks Reinstatement
Bill. Effords Bill clearly allows for the privatisation and marketisation of services and the retention of PFI where the
Pollock Bill does not present the opportunity for this. They intend to advance this support through a national
convention of all campaign groups and networks in February 2015.
A protracted discussion took place on the function, form and content of the campaign to support the NHS:
producing hard facts, collecting anecdotal evidence and progressing direct action. The theme emerged of the
future shape of the NHS. If a projection could be made of the future shape of the NHS this could then act as a
platform for gaining support for the movement away from privatisation towards the ideal that was envisioned by
Bevan.
For my own part, it was heart-warming to spend the afternoon with like-minded people that have a shared vision
of the importance of the NHS to the countrys wellbeing. We are not just talking about physical wellbeing here but
about the economic, social and cultural wellbeing of society which we should all be fighting for!

999CallforNHS - National Day of Action

999 Call for the NHS is calling for a National Day of Action on Valentine's Day 14th February 2015 to show support
for the NHS.

In the face of government attacks on the NHS, the aim is to encourage everyone to show their love and support for
the entire NHS: with protests, rallies and direct action around the country to demonstrate that we won't let it be
taken away from us.

In the run up to the election there's a chance to make the NHS the centre of attention, to focus the media and
political parties on it so they can't avoid the hard truths about what they have done to it, and what is needed to fix
and improve it.

All NHS campaign groups are invited to organise rallies and protests on this day to show support for their local NHS
services, and oppose the governments privatisation agenda. Groups could hold a rally in their town, march from
their local hospital to the town hall or town centre, hold a showing of the film Sell-Off, or protest at a bank
involved in the PFI scam. Get creative!

Send ideas and information about actions and protests to 999callfornhs@gmail.com to be shared and publicised
on their website.

RedLabour
Who are we and whats this all about?
Red Labour advocates a clear socialist policy orientation in the Labour Party: Labour's Socialist tradition.
It s committed to a socialist vision based on a progressive role for the state, including public ownership and
progressive taxation, and to fighting for a socialist future.
Britain is a more unequal society than at any time since the 1930s. We need an enforceable living wage, a decent
state pension, council housing, and public services that are run to meet our needs, not sold off for private profit.
We need a foreign policy which works for peace, justice and solidarity across the world.
All people are of equal value. We believe in fighting all forms of prejudice and discrimination.
With global capitalism in control of the political agenda, there is an urgent need for a major shift of wealth and
power in favour of ordinary people.
The Labour Party was originally set up to fight for workers rights, civil liberties and political representation. We
must rediscover that desire for political, economic and social liberty.
Given resource constraints and environmental pressures, we need a sustainable energy policy based on
renewables; the development of affordable public transport, protection against flooding and freedom from
fracking, and a housing policy which offers both affordable rental and ownership choices.
These are our basic, bottom line beliefs, but we don't expect Red Labour supporters to be unanimous on every
issue.
So there isn't a long list of specific policies that we support. And we encourage and welcome honest open debate
where there are differences of opinion. Red Labour is a 'forum', rather than a membership organisation. Supporting
Labour Party members, former members and those who would join the party if it adopted the values we believe in
to:

Get involved in local branches and constituencies - not as isolated individuals, but with strength in
numbers and to argue for our CLPs to start campaigning and be relevant again.

Challenge the lack of effective democratic policy-making in the Party.

Initiate and encourage political and economic education and debate in the Party.

Participate in policy consultations.