A New hope
Rethinking our economic model can address the concerns of a dissatisfied public, writes Miatta Fahnbulleh
The results of the national and local elections were sobering for the Labour movement. The collapse of Labour strongholds across England, Wales and Scotland corroborated what many of us had heard on the doorstep for months. Those conversations revealed a visceral need for change in our country, but also a deeper loss of confidence and trust in our government’s ability to deliver it.
Across our communities, the public mood is dominated by economic insecurity and frustration – the long shadow of nearly two decades of stagnating living standards. Real wages have barely increased for 14 years, while the costs of housing, energy, food and childcare have risen sharply. One in three families struggles to afford the essentials, and 30 per cent of children live in poverty. That is a hard statistic to believe – but it is true. The defining political challenge is clear: how do we raise living standards in the many communities that have been held back?
We must start with the limitations of an economic model that does not work for the majority of people. For too long, policymakers assumed that economic growth alone would raise prosperity for everyone. While growth delivered gains for some, the benefits have been distributed unevenly, deepening inequality, increasing economic precarity, and weakening our social contract. If we are to respond to the demand for change in our communities, progressive politics must confront this reality head on. That means forging a new social settlement where people are guaranteed the essentials to live well. Affordable housing, quality health and social care, childcare and education would create the foundations for people to get ahead.
This project will mean building a strategic state willing to shape markets and partner with the private sector to drive long-term investment in our communities. The transition to a low-carbon economy presents a generational opportunity in this regard. Large scale investment, backed by institutions such as Great British Energy, would create skilled jobs, rebuild local economies and reindustrialise parts of our economy. Stronger labour protections, secure work, and collective bargaining rights will ensure more of the benefits of this transformation flows to ordinary people.
It will also mean a radical shift of power away from Westminster. Centralised governance fails to reflect the differing needs of communities across the country. The economic priorities of London differ from those of the West Midlands or coastal communities, and policy must reflect those differences. Devolution must move towards genuine local control over investment, economic development and public services so that economic prosperity is felt in every part of the country.
If we do not grasp the opportunity to make these changes now, we face the unconscionable reality of a Reform government in 2029. Never has this challenge felt more pressing or urgent. As a party, we must not turn inwards, but instead have the right conversations about the policies we need to drive real change in this country, and unite around an agenda to achieve it.
