“Corbyn’s plans may hurt the very people he’s seeking to help”, warns Fabian general secretary

Andrew Harrop, general secretary of the Fabian Society, has warned that Jeremy Corbyn’s plans might hurt the very people he is seeking to help.

The findings by the Fabian Society project Corbyn’s proposals would cost billions and could hit the low-paid hardest.

“Some of these spending plans are very worthwhile, but together they will cost many billions of pounds… Even if a huge and sudden increase in tax-funded public spending was politically achievable, it would significantly reduce the disposable incomes of typical working families. Most of Corbyn’s spending promises may one day be achieved, but that does not make it desirable or practical to bring them all about at once”, Harrop has said.

Writing for the Fabian Review, Harrow outlines key policy areas where he thinks Corbyn’s plans will have a negative impact. He says that Corbyn’s ‘people’s quantitative easing’ plays will hurt people on low incomes due to inflation.

During the leadership contest, Corbyn suggested people’s QE as a way to fund extra infrastructure spending, building more homes and investing in green industries. However Harrop argues that “Printing money to spend on infrastructure can only be a temporary, cyclical intervention before it triggers inflation.”

Citing evidence from with housing charity Shelter, Harrop also said that tight rent caps would result in fewer affordable homes in the private sector. Corbyn has argued that to bring down the housing benefit bill, there must be control on private rents.

Harrop also argues that the introduction of a £10 national minimum wage – which was announced by Shadow Chancellor John McDonnell last week – banning zero hours contacts and increasing benefit payments for young people will mean the loss of low-paid jobs. 

“These aren’t all necessarily bad ideas, but they pose risks, so they should only be introduced incrementally, with robust piloting and evaluation” he said.