‘Ministers must reject failed Tory orthodoxies of the past and put people before profit again’

It is the curse of Labour governments that every time we come into office our ministers have to undo the serial incompetence of the Tory Party. 

The past 10 years are the first time in over half a century where real incomes did not grow by any meaningful amount. As a result, the country is still hurting from austerity and it needs to be helped to heal. 

Over 14m people (21%) in the UK are in poverty: 8.1m are working age adults, 4.3m are children and 1.9m are pensioners. Even more worrying is the rising number of people in deep poverty. 

As right-wing commentators clamour for spending reductions, there is now talk of cuts to disability benefits. But targeting those in need will only erode the government’s credibility with the public.  

It is clear that we must do more nationally to reduce the number of people out of work, because this is a key step to getting out of poverty, making a contribution to society and building self-esteem. At the same time, we must recognise that there will always be those who are simply unable to work because of their physical or mental health.  

‘It is healthier homes that we need, not another round of benefit cuts’

Attempting to bring down the benefits bill simply by restricting the numbers who are eligible or by sanctioning those unable to find a job – would miss a real opportunity to tackle the root causes of long-term illness through better nutrition, mental health support, and wider job opportunities. 

It is greater use of social prescribing, healthier homes, and better buses that we need, not another round of benefit cuts. There also needs to be an acknowledgement that getting people back into work will require considerable funding and time to offer the necessary support needed. One groundbreaking, yet common sense approach, would be to offer a job guarantee. Upfront investment to bring down long-term costs should be delivered through a transformational programme for the duration of this Parliament, as capital spending which fits within the government’s iron-clad fiscal rules. 

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‘Labour cannot prioritise casino capitalists at the expense of the most vulnerable’

And when it comes to balancing the books, a proud Labour government cannot prioritise the whims of international financiers and the casino capitalists of the stock markets at the expense of the most vulnerable in society. Nor should our economic policies fixate on abstract GDP figures which mean little to the day-to-day lives of ordinary people – after all, the Tories delivered GDP growth in every year they were in office (apart from 2020 during the covid pandemic) and those 14 years can hardly be said to have improved our country. Without simultaneous action on inequality, growth always primarily enriches the rich. 

It will be a National Care Service, a new era of council housing, and cleaner parks and high streets that reverse the omnipresent feeling that we are a country in decline, not more zeros appearing in the bank accounts of shareholders and CEOs.

‘There is no need to fall back on the same mistakes made by the Tories by slashing support for those in need’

It is time national economic policies start putting people before profit once again. There are many ways in which the Chancellor can raise the funding necessary to invest in transformative policies, and absolutely no need to fall back on the same mistakes made by the Tories by seeking to slash support for those in need. 

Time and again our constituents are telling us that they would gladly pay a little more income tax if it was going towards the improved public services we can all clearly see are desperately need – and an obvious starting point would be to restore the previous Labour government’s 50% income tax rate for the highest earners and to levy the full rate of National Insurance on all earnings. 

Similarly, the current rate of corporation tax is substantially below the average levied under the previous Labour government. Asking big businesses to contribute the least to society of any country in the G7 is not what our nation needs and raising the main rate of corporation tax could raise billions of much needed funding. Forcing multinationals to declare profits wherever they operate, could also allow the Chancellor to raise just under £15bn a year. We need to have the courage to introduce bold policies on online sales taxes, levelling the playing field for struggling high streets, and to finally equalise capital gains tax rates with income tax to better share the load between those who earn a wage and returns on invested wealth, which could bring in an estimated £12bn a year.

Of course, even with these reforms there will be difficult fiscal decisions for the government to make and taxation alone cannot solve all our problems. Government spending on corporate subsidies is estimated to have been £22.6bn in 2024/25 and a full review of this staggering largesse would certainly make sense to reduce pressure on taxpayers.

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Similarly, there are undoubtedly opportunities to better apply Labour values in managing public spending. Under the Tories, billions of pounds were poured, year on year, into concreting over the countryside with environmentally damaging and economically redundant road building schemes. Cancelling the Lower Thames Crossing alone would save around £9bn, nearly enough to compensate all 3.6m WASPI women. Instead of recreating the mistakes of HS2, and pursuing costly mega-projects, now is the time to re-direct money towards providing genuinely reliable and affordable public transport for every community.  

And when it comes to building the council housing we desperately need, we must ensure that the more than £10bn a year in land value increases, that currently accrues to landowners and developers, instead funds essential investments in local health services, schools, and truly affordable homes for the thousands currently trapped on waiting lists.  

History has shown us that Labour governments are too hard won. We must not miss this opportunity to rebalance our economy and leave a fairer country for future generations. It is time for ministers to brush aside the tried and failed orthodoxies of the recent Tory past and set our nation on a clear path towards protecting the poorest and reducing inequality. 

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