NEW LABOUR

THE FIRST GOVERNMENT

The Creation of New Labour

BUT FIRST …

The culmination of a process of internal party reform triggered by

The 1983 Election Result

The Process of Reform

Strengthening the position of the party leader against the NECMoving away from the Union block vote to direct individual membership participation (the notion of OMOV and electoral college)Policy changes: EC membership; unilateral nuclear disarmament; policies on industrial ownership and industrial relations.

Under Blair this process intensified1. Clause Four Replaced

2. Unions kept at a distance:

• Reduced reliance of Union funding

• Ending of Union sponsorship of MPs

3. New National Party Forum

4. New role for Party Conference

5. Establishing distance from ‘Old Labour’

NEW LABOUR

The term

NEWappeared

107 times

In the Road to the Manifesto document

COMPARISON

OLD WITH NEW

1983 with 1997

1983 1997

State ownership and state control

committed to 5 Year National Plan in consultation with Unions

renationalisation

withdrawal from EC

New partnership between government and industry, workers and managementTo make the market work in the public interest not to abolish itNo commitment to reverse Tory anti-Union legislation: no going back to the days of industrial warfare

1983 1997

Redistribution of wealth and power

Provision of extensive welfare services

Increase public spending

“To put the final nail in the coffin of the old tax and spend agenda”

Adopted the spending ceilings of Tories

Set about reform of welfare/benefit system (welfare to work)

WHAT DID NEW LABOUR PROMISE?

a new economics of the public interest which recognises that a thriving competitive market is essential for individual choiceThe government should play a full and active part in assisting industry to grow and modernise … in a partnership between private and public sector

And …

The crusade against poverty

A new settlement between individual and society … not just within our own nation but with Europe and the wider world

BLAIR SAID

The growth of social division, inequality and the disintegration of the family and the community have torn us apart. The task of the Left is not to replace the Tories’ crude individualism with old notions of an overbearing paternalistic state. The task is rather of national renewal, rebuilding a strong civic society and basing it on a modern notion of citizenship, where rights and duties go hand in hand, where the purpose of social action is to develop individual potential, not subjugate it

Guardian, 25 May 1994

Blair also said

The role of government has changed: today it is to give people the education, skills, technical know-how to let their own enterprise and talent flourish in the new market place.

Brown said

Today, in an economy where skills are the essential means of production, the denial of opportunity has become an unacceptable inefficiency, a barrier to prosperity and the long-term root cause of poverty.

BROWN AGAIN

That is why by far the biggest new expenditure commitment by the Government is our welfare-to-work programme … At the heart of the programme is a commitment to equality of opportunity – helping those out of work to realise their potential through fulfilling employment

THE PROBLEM IN 1997

4 MILLION CHILDREN LIVING IN POVERTY

HOUSEHOLDS LIVING ON LESS THAN HALF OF AVERAGE INCOMES

A THIRD OF ALL POOR CHILDREN IN THE EU WERE BORN IN THE UK

SINCE 1979 AVERAGE INCOMES HAD RISEN BY 40%

INCOMES OF THE POOREST STAYED STATIC

THE HEALTH OF THE POOR

High incidence of premature births and infant mortality

Low adult life expectancy

High rates of obesity, smoking, bad health

Single mothers were among the poorest

NEW LABOUR STRATEGIES

THE SOCIAL EXCLUSION UNIT December 1997

THE NEW DEAL

SURE START

ONE HEALTHIER NATION

THE NEW DEAL

AIMED AT THE YOUNG UNEMPLOYED

250,000 18 –25 YEAR OLDSMeet with civil service advisers (4

months) for needs assessment & help

If that failed

•Education

•Directed to an employer

•Voluntary work

What Labour didn’t do …

The government (state) did not create jobs through new public

works

WHAT DID THE NEW DEAL ACHIEVE?

75% IN WORK WITHIN THREE MONTHS

160,000 YOUNG PEOPLE FOUND JOBS FASTER THAN THEY WOULD HAVE DONE WITHOUT INTERVENTION

THE SURE START PROGRAMME

To supply intensive teaching and support for the poorest families with young children

by

Children’s day centres, home visits for depressed mothers, mother and toddler groupsTO GIVE THE POOREST YOUNG

CHILDREN A BETTER FAMILY LIFE

Joined up Government

Expansion in Nursery

Education

Cut Class Sizes in Primary Schools

After-School & Holiday

Clubs

The Connexions Programme & New Deal for 11 – 25 year olds

BENEFIT INCREASES

DRIVEN BY

“Work is the best welfare”

and

“A Hand Up Not a Hand Out”

WORK IS THE FIRST OBLIGATION

Working Families Tax Credit

Minimum Wage

Increased Income Support for Children

Child Benefit increased by 25%

Children’s Tax Credit of £520 p.a.

Improved List of Items for Lump Sums

Don’t Forget the Old Folk

By 1997 2.4m old people were living below half average income

Labour introduced a Minimum Income Guarantee

then

INCREASED IT

FROM APRIL 2001

£92.15

BY 2003£100

AND THE MONEY LINKED PERMANENTLY TO RATE OF

EARNINGS

And Don’t Forget

£200 for Winter Fuel, November 2000

Stakeholders Pension

EGALITARIANISM