Labour must not continue the permanent austerity consensus

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“With Labour in Government – we can’t let a consensus for ‘permanent austerity’ be formed. It’s the route to economic and social catastrophe, and a further rise of the far-right.”

By Matt Willgress

The recent Election took place in the deepest cost-of-living crisis in generations, which provides the context to the dramatic Tory collapse.

In order to change the world, it is first necessary to understand it – and in Britain today we must understand and state the extend of this crisis.

As Rosa Luxemburg said, “The most revolutionary thing one can do is always to proclaim loudly what is happening.”

So what is the situation after 14 years of austerity?

Councils are going bust. Poverty is spiralling. Homelessness is out of control. There are regular warnings unemployment could be set to jump dramatically. And living costs keep going up, whilst wages don’t follow.

Yet throughout the election, there was a conspiracy of silence regarding the depth of this crisis across both front-benches.

This can only be understood if one grasps that the whole political establishment is intent on never-ending austerity.

This is reflected by Rachel Reeves’ ‘fiscal framework,’ which in recent years worked its logic through to the abandonment of policy after policy that could start tackling the cost-of-living crisis.

There is a commitment to an injection of cash into public services that would see an extra 40,000 NHS appointments a week, and an additional 6,500 teachers in state schools and 13,000 police and community support officers.

These pledges are most welcome, but an objective assessment of how deep the crises we face are shows this is not even a sticking plaster.

And when discussing whether austerity will continue, context also matters.

Just days into the campaign, Keir Starmer talked of how abolishing the 2 child benefit cap “is not our policy for a reason [as] we are not going to be able to afford to scrap it because of the damage the Tories have done.”

In other words, Labour will maintain a flagship austerity policy, condemning millions to poverty!

Now – with Labour in Government – we can’t let a consensus for ‘permanent austerity’ be formed. It’s the route to economic and social catastrophe, and a further rise of the far-right.

We therefore need to put forward policies that could actually address the crises we face. As part of this, we are renewing efforts to get further support for the Workers Can’t Wait demands online, including these 10 measures:

☑️  Britain needs a pay rise – National Minimum Wage raised to at least £15 an hour for all; the pay rise public sector workers are asking for; increase Statutory Sick Pay to a real living wage for all from day one.

☑️  A social security system to end poverty – scrap the 2 child benefit cap, reverse the Universal Credit cut and extend the uplift to legacy benefits; boost & inflation-proof benefits; for a minimum income guarantee.

☑️ Control costs – energy price freezes now at April 2022 rates, cap rents and basic food costs.

☑️ Stop the corporate rip-off – public ownership of energy, water, transport, broadband and mail to bring bills down and end fuel poverty. Lower public transport costs. Higher taxes on profits and the super-rich. Open the books – back the workers’ commission on profiteering.

☑️ Extra resources to create universal, comprehensive public services – stop cuts and privatisation; Save our NHS – for a national care service; properly fund local government. Tax wealth to fund our public services.

☑️ Homes for all – no evictions or repossessions; tackle the homelessness emergency; fix the housing crisis with a mass council house building programme.

☑️ For the right to food – enshrine the right to food in law; universal free school meals all year; for a National Food Service.

☑️ Decent jobs for all – for full employment; end insecure working and ban zero-hours contracts; for the right to flexible work on workers’ not bosses’ terms.

☑️ Defend and extend our right to organise – reverse anti-trade union laws and repeal the draconian anti-protest laws; ban fire-and-rehire; for full union rights to bargain for better pay and conditions.

☑️ End austerity for good – invest in our future with a Green New Deal – end the dependency on fossil fuels and soaring oil and gas prices; for a massive investment in renewables, green infrastructure and jobs; insulate buildings to bring bills down.

Please add your name, take the policies to movement and community groups for discussion, and keep mobilising for investment, not cuts.


  • You can find the Worker’s Can’t Wait demands – and join over 22,000 people in support here.
  • You can read our series of articles for each of the Workers Can’t Wait demands here.
  • This article was originally published in the July Edition of Labour Briefing.

Featured image: Prime Minister Keir Starmer gives his first press conference. Photo credit: Simon Dawson / No 10 Downing Street under CC BY-NC-ND 2.0 ATTRIBUTION-NONCOMMERCIAL-NODERIVS 2.0 GENERIC

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