The Chancellor’s summer statement: a crucial moment for Labour

Labour’s national executive committee (NEC) elections haven’t even started, but already they are getting heated. Left groups including Momentum joined a Centre-Left Grassroots Alliance meeting last night to establish a single slate for local party representatives, but no agreement was reached after four and a half hours. Discussions continue tonight, I’m told. Most of the interest, somewhat surprisingly, is actually around the NEC youth rep post. It is currently held by the Labour left’s Lara McNeill, who is standing again. But she is considered more ‘Renewal’ than ‘Forward’, i.e. not the flavour of left that has just won the internal Momentum elections.

The idea has been raised that Momentum members could be balloted to determine the organisation’s endorsement of a youth rep candidate. Ahead of the decision being made at a meeting on Saturday, there are strong advocates of the proposal on the new national coordinating group (NCG) but also concerns over the practicalities of it. And across the whole spectrum of the party, a number of rival candidates have emerged: Jermain Jackman, who launched his campaign last night, is expected to get Open Labour’s approval; Kira Millana Lewis; and Abdi Duale. Union backing is crucial if you want to get elected to this youth role due to its electoral college system, and the support of GMB is a particular focus for potential candidates.

This afternoon will offer a crucial moment for both Labour and the government. Going into a coronavirus lockdown felt dramatic (speaking of which, do check out my interview with Jonathan Ashworth from last night), but the economic conditions in which the lockdown eases will determine outcomes for future generations. As outlined by Frances O’Grady yesterday on LabourList, the TUC has been calling for a jobs guarantee scheme and strong measures to prevent youth unemployment especially. Addressing those concerns, Rishi Sunak is expected to announce a £2bn job creation scheme for under-25s in his financial statement. We are also watching out for details of a £3bn building insulation programme, plus a (now immediate) stamp duty holiday.

Polls show that the public overwhelmingly approve of how the Chancellor has handled the coronavirus crisis. Sunak has recently borrowed Labour’s ‘green industrial revolution’ language, and now we’ve seen him nick the “jobs, jobs, jobs” phrase. He is splashing the cash relative to normal times and normal Tory behaviour. He is making overtures to those worried about the environment and the impact of the Covid-19 recession on young people. Labour seems to have set itself a challenge: highlight where support is still lacking without sounding unappreciative of the vast sums being put forward and the unprecedented nature of the crisis. The danger is that the opposition party, on the back of a disastrous general election defeat, is too worried about undermining its own credibility to call for the scale of ambition now needed.