Sunday, March 22, 2015

Who Does the Conservative Party Represent?

I recently wrote a post about who the Labour Party represents and thought it would make sense to follow this up with a similar article about the Conservatives, especially with the Budget fresh in everybody’s mind.

The simplest starting point and to connect with the previous article is probably to say who they do not represent.  Two of the groups mentioned in the previous article are clearly not favoured by Conservative policies: those working in the public sector (circa 11.7% of voters, and referred to henceforth as “Public Servants”), who have seen significant job cuts and low pay settlements; and those who may or may not work, but who rely primarily on support through the benefit system, who have seen measures such as the benefits cap, tougher Housing Benefit (notably the so called “bedroom tax”), Jobseeker’s Allowance and Disability Benefit rules (estimated at 15% of voters, based on number of Council Tax benefit claimants plus 1m people, and referred hereafter as “State Beneficiaries”).

Next the relatively simple identification of clear groups that Conservative policies have favoured, at least relative to Labour.  Those with high incomes (>£150,000) or significant properties will certainly be better off based on stated tax policies, and anybody earning >£52,000 and contributing to a pension will be better off although the amounts are dependent on the level of income and contributions.  Next, those who own significant (>£250,000) assets or businesses, while not having been the subject of specific tax policies, can reasonably surmise that they would be better off under the Tories.  So while certainly greater than the so called “1%”, it is probably fair to say that the top 10% (which will include a relatively small number in the public sector, so let us assume this 10% and the 11.7% mentioned in the previous paragraph are separate) in terms of either income or wealth would be better off under the Tories; for simplicity I shall refer to all of the above as the “Well Off”.
So, we have 10% of voters who are definitely represented by the Conservative Party and circa 27% who are certainly not; so that leaves 63% who are up for grabs.  These people, who I shall call the “Broad Working Class”, are the equivalent of those who in 1979, 1983, 1987 and 1992 voted in droves for the Conservatives, and in 1997, 2001 and 2005 did the same for Tony Blair’s New Labour.  Now, it is unrealistic to think that 63% of voters are ever likely to be attracted to just one party’s policies, but gaining the majority of this Broad Working Class will dictate who wins this election.

As I posted last time, Labour’s problem is with attracting the Broad Working Class while not alienating State Beneficiaries at a time of austerity.  The Conservatives face a similar challenge; attracting the Broad Working Class without alienating the Well Off, however the electoral maths are somewhat different.  Neither the Well Off nor the State Beneficiaries have historically had anywhere else to go in electoral terms; this time it remains true of the Well Off but not the State Beneficiaries.  The SNP, Plaid Cymru and the Green Party are all promoting anti-austerity policies that would appeal to State Beneficiaries, plus many may decide just not to vote.  For the Conservatives, the challenge on the right comes from UKIP, which as a populist movement is more a challenge for the Broad Working Class than the Well Off, who in turn are more likely to vote than State Beneficiaries.
So does the Conservative Party represent the Broad Working Class, or at least enough of it to win the election?  What does this week’s Budget indicate?  I think it shows that the current Coalition is representing the Broad Working Class, but it is less clear that the Conservative Party does.  Nick Clegg and Danny Alexander may have severely damaged the electoral prospects of the Liberal Democrats, but they do appear to have focussed the Coalition policies more towards the Broad Working Class than the Well Off; the Conservatives went into the 2010 election with tax cutting focussed on Inheritance Tax, but the Coalition’s primary tax cut has been to raise the tax threshold massively, a tax cut whose benefits reduce for people earning over £100,000 and eliminated if you earn over £150,000.   The policies have been harsh, and there are no doubt that many people have and are suffering as a result, notably among the Public Servants and the State Beneficiaries, but equally, those policies are increasingly having a positive impact on many of the Broad Working Class.  Record levels of employment, low inflation and interest rates, and finally rising wage levels and now starting to make the feel better off, and perhaps the biggest concern amongst many Broad Working Class Voters would be whether a Conservative only government would be less interested in them.
No party has published its manifesto yet, but the indications are that the Conservatives cannot help but lurch towards issues that appeal to a vocal element of its core membership, but which carry only a minority interest in the wider population.  The obsession with Europe and the EU is the most obvious, especially following the UKIP success at the European Parliament elections last year, but other issues such as ending the hunting ban and further Trade Union legislation (notably where it appears one sided, e.g. you have to get a higher number of members voting for a strike, but we will not allow you to make it easier to vote through the use of online voting).  Like with the tax issue, the Liberal Democrats appear to have helped keep such niche matters off the legislative table.


If David Cameron wishes to gain a second term as Prime Minister, he needs to ignore the crazier elements of his own party and focus on a manifesto that looks more like the current coalition policies.  Secretly, I think he rather hopes he has to have Nick Clegg and Danny Alexander back round the Cabinet table; they make for far more sensible colleagues than many a noisy Tory back bencher.  If there was an option to vote “Current Coalition” on the voting papers in May, I would anticipate it would be getting a far better current poll performance than the Tories on their own.  

Nick

Thursday, March 19, 2015

Who does the Labour Party Represent?

With UK general election just 7 weeks away and the two major parties neck and neck, I have been consuming a lot of political media.  While doing this, a question has come to me:
"Who does the Labour Party Represent?", and the follow on question, "Does the Labour Party know the answer?"
Firstly we had John Cruddas (http://bit.ly/1BZKyI2), Labour’s policy co-ordinator, said the 115-year old party could simply “disintegrate in real time”. 
Then there have been three interesting articles in The Guardian in the last couple of days. First from Rachel Reeves, the Shadow work and pensions secretary (http://bit.ly/1BZrQjV), in which she stated “Labour are a party of working people, formed for and by working people.”. Her position (which should be read beyond that simple quote) by party activist Emma Burnell (http://bit.ly/1Euz5NZ) the following day, the original article having garnered a lot of comment. Finally, this morning, campaigner Jack Monroe wrote (http://bit.ly/1BZt8LN) how she had left the Labour and joined the Green Party due to their more left-leaning policies.
At the most basic historical level, Ms Reeves is correct; the Labour Party was established by the Trade Union movement to represent the interests or working people in Parliament. So is she correct in her objective?
I personally do not believe it represents the broader working class anymore due to the near elimination of Trade Union membership in the private sector (only 14.4% - 2.6m people), while the strong position of the Trade Unions in the public sector (55.4% - 3.8m people) means Labour has become increasingly a vehicle and voice for those in the public sector. Within those private sector union membership figures, it also needs to be recognised that many of employers where membership numbers are strong are former nationalised businesses such as utilities, mail and railways where a public service ethos remains in place. This is not meant as either a positive or negative analysis, merely that any organisation reflects the the make-up of its membership. It is also clear from the background of many Labour MPs, councilors and activists that it has become the vehicle and voice for many of those engaged in the charitable and campaigning sectors.
From a perspective of attracting significant further voters beyond that core, the comments of Ms Reeves an Ms Burnell on one side and Ms Monroe on the other reflect the two paths available: 1) those workers in the private sector, including the self-employed, who are receiving little or no benefits, but have no other means of support beyond their wage; or, 2) those who may work or not, but who rely primarily on support through the benefit system.
In recent history, certainly during the Blair and Brown administrations, Labour successfully appealed to both these groups, but in 2010, it lost the support of group (1). Its difficulty in appealing to both groups is that the public purse will not stretch to support both. If you have policies that appeal to group (2), you have no option but to increase taxes on group (1); it is economic illiteracy to think that all the money needed to reverse public sector austerity can come from "the rich" (normally defined as anybody earning 20%+ than the person saying the words "the rich") alone; Denis Healy tried that in the 1970s and it doesn't work. Those in group (1) generally feel they are paying enough of a burden already, so do not wish to pay more to reverse austerity on group (2).
At the moment Labour appear to be trying to appeal to both groups by fudging that difficult position, but the closer we get to the election, I think they will have to lean one way of the other.  My own view would be that Ms Reeves is right, and Labour needs to get back to being a party of the broad working class (i.e. those who need to work rather than having their own capital) rather than being, as it increasingly is, a pressure group for the public sector and public services. Otherwise Mr Cruddas may be right.
Nick