“A change of Labour leadership will happen soon, but that alone will not be enough. Labour needs a fundamental change of direction.”
The Socialist Campaign Group of Labour MPs have put out the following statement on some of the key policies the next leader should adopt, and the fundamental change of direction the party needs.
Just two years after the General Election, Labour has squandered much of the hope people invested in us to deliver real change. The elections in May were catastrophic with Labour’s vote share falling to just 17%. That is around half the level secured at the General Election, which was itself the lowest vote share ever won by a majority government in post-war British history.
Too many people who once voted Labour no longer feel the party stands for them or reflects their values. Unless Labour changes course quickly, not only is the very survival of the party at stake, but we also risk paving the way for a Trump-style far-right government, with all the harm that would follow.
A change of Labour leadership will happen soon, but that alone will not be enough. Labour needs a fundamental change of direction.
The political strategy pushed by Morgan McSweeney and Peter Mandelson was fundamentally designed to chase Reform voters. The outgoing Labour leadership alienated huge numbers of voters who would normally back Labour by pursuing policies such as cuts to Winter Fuel support, attacks on disability benefits, hostile rhetoric on migration, the undermining of civil liberties and the refusal to take the action needed against Israel over its war crimes in Gaza.
Most former Labour voters who have moved away from our party are now backing other progressive parties or say they will not vote at all – and have not moved to Reform. Rebuilding Labour’s broad electoral coalition therefore requires a genuinely progressive agenda.
Labour’s renewal must begin with a recognition that Britain faces a deep crisis caused by a rigged economic model that has transferred vast amounts of wealth and power to the super-rich while leaving millions struggling. Polls show that a bold economic programme is the best way of winning back voters from across the spectrum, including those who back the Greens and other progressive parties as well as some who have moved to Reform.
The deep structural changes needed to reverse over forty years of neoliberalism cannot be achieved overnight but Labour, under a new leader, must show it understands the scale of the challenge and take immediate bold steps to win back support. Below are some key policies – not intended to be a comprehensive programme – that we believe should form a core part of the programme of the next Labour leadership ahead of the next General Election:
• TAX AND FISCAL JUSTICE
Those with the greatest wealth should contribute much more. That means taxing wealth more fairly, including by equalising Capital Gains Tax and introducing a 2% levy on assets worth more than £10 million. Windfall taxes on sectors making unearned super-profits, including the banks, should be implemented alongside a clampdown on corporate tax loopholes and other tax privileges that favour wealth over work. These and other progressive tax reforms could raise many tens of billions for the investment that our public services and local government are crying out for while funding real action to tackle the cost-of-living crisis, climate action and regional inequality.
• PUBLIC OWNERSHIP
It is welcome that the Labour government has begun to bring the railways back into public ownership. That approach should be extended to water and energy, alongside the scrapping of plans for PFI-style schemes to fund new NHS health centres or other public services. The break clause should be triggered to get Palantir out of the NHS. We should put in place plans for a National Care Service. Labour promised the biggest wave of insourcing in a generation. That commitment should now be delivered.
• EMERGENCY COST-OF-LIVING ACTION
Trump’s war on Iran has further driven up the cost of life’s essentials. Ordinary people should not be made to pay the price. Labour should champion an emergency package of measures to protect living standards, including a genuine freeze on energy bills, universal free school meals and the expansion of affordable public transport, starting with free bus travel for the under 22s, which already exists in parts of the country. Such emergency measures must be just the first steps in a wider anti-poverty strategy to tackle the national crisis where 14 million people across Britain are living in poverty, including millions of children.
• STRENGTHENING WORKERS’ RIGHTS
Strengthening workers’ rights is key to eradicating in-work poverty, raising living standards and tackling inequality. The Employment Rights Act marked the most significant advance in workers’ rights in a generation following years of anti-union legislation. But it does not deliver Labour’s full New Deal for Working People. Much of the Act will be implemented through secondary legislation, meaning measures could still be watered down. All measures in the Act should be implemented in full, and an Employment Rights Act 2.0 is needed to ensure the complete delivery of the New Deal for Working People including restoring collective bargaining.
• TACKLING THE HOUSING CRISIS
Rising rents and mortgage costs are placing huge pressure on households and deepening the housing crisis. Labour should launch a large-scale council house building programme that would not only help meet an urgent social need but also boost jobs and growth. It should also introduce rent controls to protect tenants from soaring rents and tackle the scandal of leasehold.
• REJECTING REFORM’S POLITICS OF DIVISION
There has been truly shameful rhetoric from the Labour leadership about Britain becoming an “island of strangers” in a desperate attempt to chase Reform. Labour must stand up to, not cede to, right-wing attempts to scapegoat migrants. It should champion a humane asylum and immigration system, including safe and legal routes for refugees. As a starting point, it should scrap plans to double the time migrant workers already in our country need to secure settlement. People who contribute so much to our country and public services deserve security, not prolonged uncertainty. More broadly, Labour must again show that it is a Party that respects equality, civil liberties, and human rights for all, including the LGBTQ+ community, and must deliver the long-promised Hillsborough Law.
• ACTION ON THE CLIMATE EMERGENCY
Labour must challenge attempts by right-wing parties and media to roll back progress on climate action. We must continue to oppose any new oil and gas licences and invest in the transition to renewable energy needed to cut emissions, protect households from fossil fuel price shocks and strengthen energy security. Investment in climate action, including protecting communities from extreme weather, is one of the biggest economic opportunities of the 21st Century and should be at the heart of a new industrial strategy. A truly just transition can revive industrial heartlands, create skilled jobs, strengthen supply chains and attract investment in communities across the country.
• AN ETHICAL FOREIGN POLICY
Many voters remain profoundly angry about the Government’s response to Gaza. At a time when Trump is undermining international law and pursuing an increasingly militaristic foreign policy, Labour should champion an approach based on international law, human rights and peace. That must include sanctions on Israel, beginning with a total ban on goods produced in Israel’s illegal settlements, to meet both our moral obligations and to bring us into line with the International Court of Justice’s 2024 ruling.
• RESTORE LABOUR DEMOCRACY
If Labour is to be a genuine broad church, it must restore an open and democratic culture that allows different traditions and viewpoints within the party to be heard and represented. The stitch-up in Gorton and Denton was part of a pattern under the outgoing Labour leadership that has restricted debate, excluded candidates, undermined members’ rights and suspended MPs and members for factional reasons. The anti-democratic changes introduced under Keir Starmer, including the changes to the thresholds for leadership elections, must be overturned.
- If you support Labour Outlook’s work amplifying the voices of left movements and struggles here and internationally, please consider becoming a supporter on Patreon.
