Chippy_boy
Well-Known Member
I agree. The way I see it, Labour are in a really terrible spot, NOT all of their own making.I’m sure they both have eyes on the crown but, as you say, neither of them would be popular with the electorate and I think both would be worse for the country.
The only chance Labour have is if their policies start to force their way through the rhetoric, showing real improvements to people’s lives. Early shoots are there but we’re in a period of such uncertainty, minor gains aren’t going to cut it and it’s easy to understand why people will turn to other parties to protest the issues, even though they might by even worse off for it.
The problem is fundamentally an economic one; Labour philosophy in their DNA almost is to tax and spend, in the belief that this is good for the economy; that the government can be the driver of economic growth by investing and pushing up public sector wages. Let's not get into an argument about whether this is a good idea (passionately I believe that it isn't, others have the opposite view). But what we can say is it usually works in the short term. We saw that in the first 2 terms of the Blair government. Blair inherited a growing economy with modest and falling debt levels (£350m - 37% of GDP) and the world economy on the up. Tax levels were around 30% of GDP - a 30 year low.
He and Brown had headroom. So they embarked upon a sustained period of taxing and spending, and that spending resulted in noticeable improvements in public services, schools, the NHS etc. To the unsophisticated voter, it felt like the good times were back and it was all down to Labour. Let's not dwell on the wheels falling off in term 3.
The problem Labour have now is that the rosy position Blair inherited does not exist. Taxes are already running at record high levels - vastly higher than when Blair took over. Debt is around £2.9 Trillion - 94% of GDP - the interest on which is already crippling.
There is absolutely no room to do what Labour would normally like to do. Their capacity to "show real improvements" by 2029 is close to zero. They correctly recognise that growth is the only way out of this dire situation, but they have no ability to drive it in anything like the necessary timescales. (And no clue either, but that's a different discussion.)