It’s a buy now, pay later strategy – but where is the credible alternative?

Richard Robinson‘s Speech Bubble

To every man, boy, woman and child, Labour politicians aspire to make “generational change”. You often here this expressed at hustings meetings, and, yes, I’ve said it myself.

Labour has never sought to be simply the party of the status quo, and ever since it’s inception at the beginning of the 20th century, its members have sought to fight for change and tackle the deep seated inequalities in society. We know the struggle is hard, which is no doubt why Oscar Wilde once proclaimed “socialism is great, but it takes too many evenings”.

There are not many evenings left until the next general election, so it was axiomatic that yesterday’s hustings, aslo known as the Pre Budget Report, delivered in serious and sombre mood by Alistair Darling, would have one eye on May 2010. It’s really quite incredulous for the Opposition Parties and the commentariat to howl at this. Should the Conservatives have been in power – and faced with the realities that face every leader in the western world – would they really have done anything vastly different?

Whilst 99% of the press have come to the same general conclusion – “rarely has a pre-Budget report promised so much and delivered so little” – it is worth remembering that we are in quite unprecedented times having been hit by the worst economic crisis in a generation and for the past 60 years. Furthermore, Gordon Brown as Chancellor in 1997 did inherit from the Tories what’s conveniently forgotten now as a then record national debt.

Alistair Darling didn’t so much want to paint “dividing lines” between Labour and the Tories; rather, he wanted to portray two competing visions. One of Labour who chose unashamedly and actively in true Keynesian terms to “intervene” to protect and support and boost the economy. And the other of a Tory Party dismissed as simply a party for the few (witness the £200,000 to each of the 3,000 wealthiest estates). Morevoer, they would cut deeply and dangerously now – with deleterious consequences for the vast majority of us.

Labour’s task was clear; “securing economic recovery and delivering for the many, not the few, should always be the top priority, taking action that is neither painless nor at the same time reckless”. Mr Darling insisted his package was balanced and gives the best economic approach for long term stability and above all.

If you strip out the increases National Insurance contributions from 2011 and the freeze in public sector pay, is it all really so unpalatable, bearing in mind tax receipts to the Exchequer will be at their lowest since MacMillian’s government 50 years ago?

There are measures to support small business by freezing small business corporation tax at 21% and launching the Growth Capital Fund for SMEs, giving them new access to finance. There’s a a guarantee of a job or training to every young person out of work for more than six months. And there’s a new Better Off in Work Credit to make work pay. These are solid, progressive measures.

I agree, this is a buy now, pay later strategy. But where is the credible alternative? Darling is a dour, serious, no frills man, for serious times. Whether we are New Labour, Old Labour, Generational Labour, we may never agree on certain matters. To a large extent that’s not of great significance at this time. What we all might well concur is that for the next few months and years, and whatever your background or political persuasion, it is definitely time for Hard Labour.