Wednesday, 27 July 2011

Why Labour Needs to Change the Debate on Economic Recovery

Britain's economy grew by just 0.2% in the spring, suggesting that the coalition's debt reduction and growth plans aren't playing out in the way they hoped and promised.

The chancellor, George Osborne professed himself happy with the figures, saying "the British economy is continuing to grow and is creating jobs."

In response, Labour's Ed Balls accused the chancellor of being in "total denial" about the real situation. And you have to say that we're nearly at the point where Labour can start to shake off the one millstone they've had to carry around with them during this debate.

In the past, the coalition have been able to swerve all the critics of their economic policy by repeating the mantra: "This is the mess Labour left us in" perpetually resetting the debate to zero. But think about it, without the growth and confidence Osborne and Cameron forecast, the Labour assessment of their austerity measures as "too fast and too deep" is beginning to look accurate.

If Labour want to make any headway, they need to be able to say that the "mess we were left" argument is long past its sell by date and now just a dissipating smokescreen.

As Brendan Barber of the TUC has said, "it's hurting but it isn't working."

But Labour have to overcome another impediment to their credibility. Watching Ed Balls on TV yesterday was uncomfortable to say the least. He seemed barely able to control his glee that the wheels appeared to be coming off the coalition's economic recovery wagon. He would do well to take a more measured approach. After all, no potential voter is going to enjoy watching him getting off on the "I told you so"' trip. Surely he's smart enough to recognise that this isn't how people are thinking. Their lives are becoming tougher, pricier and less certain - there's precious little glee to be found.

Labour need to see this as their best opportunity to show they they are the party most in touch with the way the country feels right now. Some public examples of people who are suffering because of current, immobile government policy would put them back in control of the debate.

"The mess we were left" is yesterday's debate. Today, tomorrow and if the next set of figures in October are bad, too we should all be talking about "The mess the coalition are keeping us in."

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