Jog on, Osborne! Labour’s ‘living costs’ line will win votes

George Osborne’s speech on Monday wasn’t a victory cry; it revealed a chink in his armour.

On Monday George Osborne gave what sounded like a victory speech on the economy. Assembling journalists at yet another building site he told us growth rates showed we had ‘turned a corner’ and crowed opponents of Plan A had ‘lost the argument’.

But the Coalition has been winning the argument on the economy for some time now. Month after month, no matter how unpopular the Chancellor or the government become, a clear majority of British people say they believe their spending cuts are necessary. Labour have struggled to make inroads even when economic data looked much worse than this and pointed towards double and even triple dip recession.

This is about more than statistics. The Government has been winning the debate because it has a well-crafted story it tells about the economy which it has been diligently repeating for over three years. Our research into economic narratives finds it is a near textbook definition of a good political story which has gained traction with the public.

Most LabourList readers will be able to tell it. Britain is broke, because Labour spent all our money and created a country of people dependent on welfare. Austerity is the best way to pay off our debts, the only medicine for our sick economy. It has been particularly damaging for Labour because it is a story that blames the party for most economic problems.

But the Chancellor’s speech showed us Labour has mounted a potential challenge to this story. As well as faithfully repeating his usual arguments about debt and spending, George Osborne dedicated half of his speech to living standards. Explaining that the Coalition cared about rising prices and falling incomes, he stressed that his economic plan would tackle cost of living issues.

Why the change in script? Because Labour’s nascent framing around the cost of living is likely to resonate with voters. It can talk to their personal experience (in a way that Keynesian arguments about fiscal policy cannot). It reframes economic debates away from the debt and deficit to weaker ground for the Coalition. And because it is easy to humanise the cost of food, fuel, rent and wages, they are likely to carry more weight than rises in GDP. By focusing on living standards over the summer, Labour have found a line of attack that could undermine the government’s austerity story.

George Osborne’s fear of the argument is testament to its strength. But now Labour must take this frame and turn it into a powerful political story. One that tells us why living standards are falling and who is to blame. One that uses powerful visual images (like comparing national debt to a maxed out credit card) and emotional language. One that is simple enough for people to understand and retell every day until the general election.

Carys Afoko is Head of Communications at Nef. Nef’s publication, Framing the Economy, is out now.