Labour must go further on tackling inequality, demands Dan Jarvis

The next Labour Government must do more to focus on tacking inequality, and take a more radical economic approach than under Tony Blair, Gordon Brown or Ed Miliband, according to Dan Jarvis.

Barnsley MP Jarvis will set out his ideas for Labour’s renewal in a speech in London this morning, in a move that will further speculation about his future leadership ambitions.

The speech focuses on economics, and is timed to come ahead of next week’s Budget, where Jeremy Corbyn will respond to George Osborne across the despatch box. Earlier this week, another Labour backbencher Rachel Reeves revealed her own ‘alternative Budget’.

Speaking to the think tank Demos, former paratrooper Jarvis will paraphrase Tony Blair’s famous quote on crime as he tells Labour to get “tough on the causes of inequality”.

“The next Labour government must take a more radical economic approach – more radical than we had under Tony Blair, Gordon Brown and Ed Miliband,” he will say.

“If we do not share the proceeds of growth fairly then the moral foundations of our economy are called into question. Put simply, Labour needs to be tough on inequality, tough on the causes of inequality.”

Jarvis won a standing ovation at Progress conference last year, just days after announcing he would not stand for leader, as he told delegates that the ability to maintain an electable Labour Party in Parliament was at stake. Today, however, he will appear to place himself to the left of New Labour, saying that Blair and Brown’s approach to tackling inequality did not go far enough.

“Let’s be frank – New Labour’s approach wasn’t enough,” he will say. “It didn’t get at the root causes.

“New Labour didn’t see with sufficient clarity the downsides of globalisation. They knew it meant cheap consumer goods. But, they didn’t recognise that too often, it meant cheap labour too.

“Today the average income in Barnsley is still over £100 a week less than the average income in Barnes in London. I believe this gap matters. It’s bad for our economy. It’s bad for our communities.

Jarvis claims that inequality is also a driving factor in dissatisfaction with mainstream politics, and the rise of parties such as UKIP. “If people feel the system works against them, they will turn away from mainstream parties, or from politics altogether. To think otherwise reflects a poverty of ambition for a progressive party.”

And he will attack the Chancellor for placing political gain above good economic policy, saying the Tories have not set good foundations for a long-term recovery.

“Mr Osborne is fond of telling us he has fixed the roof while the sun is shining. Well, it’s not the roof I’m worried about, it’s the foundations.

“When you hear George Osborne say ‘long term economic plan’, what he really means is ‘short term political gain’.”