FOLLOWING Ed Milliband’s resignation after the General Election, The Labour Party has been doing a serious amount of soul-searching. Numerous reasons have been given for the party’s poor performance, even though they gained seats in England and only lost one in Wales.
The most common reason given from inside the party is a variation on the theme that under Ed Milliband, the party veered too sharply to the left. There have been numerous ways of expressing this, from Chuka Umunna claiming that the party needed to be more ‘business friendly,’ to acting leader Harriet Harman and candidate Liz Kendall refusing to vote against the Conservatives’ welfare bill because British people have real concerns about benefit spending.
This contrasted sharply with the experiences of many canvassers who felt abandoned by the parliamentary Labour party, which made constituency candidates something of a hard sell in places. Across the country, the emergence of UKIP as, if not a credible political force, then certainly one strong enough to influence the outcome of any seat, was largely at the expense of what Labour would have considered core voters in 1997. Anti-austerity parties to the left also benefitted from Labour’s perceived lack of opposition to Conservative policies.
The election of a new Labour leader was meant to be the fairest and most transparent to date in a party that has traditionallyprideditselfonadherenceto democratic principles. Jeremy Corbyn, described ad nauseum in the press as an ‘Old Labour dinosaur,’ and a ‘veteran left-winger’ was only put on the ballot after 35 MPs, many of whom had no intention of voting for him, decided that all facets of the party should be represented. That these MPs were subsequently described as ‘morons’ by one of Tony Blair’s former advisors shows the extent to which the left-wing of the party is viewed as an embarrassment nowadays.
A strong showing ofpopular support for Mr Corbyn has led to outcry in the national press. A YouGov poll recently put him on CHECK %, leading to claims that the poll was inaccurate, and leading people to predict a schism in the Labour party similar to that which occurred when Michael Foot was made leader – something Mr Corbyn has blamed for the landslide defeat in 1983. The Daily Mirror, the only remaining left-wing tabloid, has suggested implementing an ABC (anyone but Corbyn) strategy, while on the other end of the scale Toby Young has suggested that those on the political Right join the Labour Party and vote for Mr Corbyn as a way of bringing down the Labour Party.
Mr Corbyn is certainly different to any leadership contender since the early nineties, if not before. Having said that, John Smith was considered to be on the centre-right of the party then, which shows how much the political landscape has shifted. The public spending cuts that Ed Balls claimed he would not alter if Labour were elected would have had an old One Nation Tory like Ted Heath spinning in his grave. Mr Corbyn has claimed that the role of leader should be more about facilitating debate rather than developing policies. He is known to favour the abolition of student fees, scrapping Trident, and the renationalisation of the rail industry.
There has been uproar in the Labour party about this. Apparently Labour should not be a party of protest but a party of government. It appears that from an opposition perspective, this means agreeing with most of what the party in power proposes, on the basis that they were voted in and are therefore what the electorate want. It may be facile to suggest that this makes the concept of an opposition moot, but certainly the parameters of debate will be narrowed.
Interestingly, a journalist for the Independent checked out the YouGov poll results for Mr Corbyn’s policies, and found that the public were heavily in favour, with 60% in favour of nationalising trains, for example. It appears that the claims that the Labour party has already suffered a split between the grass-roots supporters and the metropolitan ‘elite’ may have some basis in fact. A point which appears to be overlooked is that ‘three-time-winner’ Tony Blair still had the support of Labour’s core vote, until it began melting away over the New Labour years. Without this support, and without any way of either working with the SNP or encouraging Scottish voters back into the fold, the ‘swing seats’ targeted in ’97 will be increasingly irrelevant.
Andy Burnham, the politician many party insiders would like to see get the nod, is nominally on the left of centre, in the same way Yvette Cooper is slightly to the right. Mr Burnham is the only candidate to say that he would serve in a Corbyn shadow cabinet. Liz Kendall, considered one of the Blairite faction’s big hopes, has performed poorly, and is fourth-placed by some margin. A spoof facebook page – Liz Kendall for Conservative Leader – had nearly as many ‘likes’ as her own page before it was deleted. A problem appears to be the unwillingness of the other three candidates to commit on issues, for fear of jeopardising their shot at the top job.
Whoever emerges as Labour leader in the coming months will be in an unenviable position. They will have to reconcile those on the political Left and Right, and attempt to appeal to disillusioned Labour voters, as well as trying to take votes from the Conservatives and UKIP and, in all probability, having to work with the SNP and possibly Plaid Cymru in Wales, both parties with a broadly left-of-centre manifesto. It is far too early to tell what sort of a party will emerge at the other end, the outcome of a leadership battle fought across such a wide spectrum, and the ensuing rise in the number of party members, many of whom are looking for a credible alternative to the Tory-lite policies of the last two decades, will mean the party will indeed be living in interesting times.
Wales stands firm in support for Ukraine￼
APPEAL FOR MORE HOST FAMILIES
“More than 8,200 visas have now been issued to people from Ukraine who have sponsors in Wales, so we expect the number of arrivals to continue to grow in the coming weeks.
“Thousands of Welsh households sponsored Ukrainians to arrive in Wales and committed to hosting them for at least six months.
“As we move into the autumn, we approach the end of that initial period.
“We hope hosts and Ukrainians will agree to extend many of those placements, but we need additional hosts to support those who cannot continue living where they are.
“To ensure a warm welcome to Wales, I’m inviting households across Wales to come forward and open their homes to welcome those seeking sanctuary.
“We’re immensely thankful to all those across Wales acting as hosts to Ukrainians, but more households must come forward.
“I completely understand that there are those who want to help but may not have the resources to do so, given the circumstances we’re all facing with the cost-of-living crisis.”
WALES WILL STEP UP TO THE PLATE
“The idea of hosting can be daunting. That’s why we have funded Housing Justice Cymru to provide a Host Support service which includes expert and reliable information, training, advice, and guidance for people hosting, or those considering hosting, Ukrainians in Wales.
“More information on sessions and training can be found on the Housing Justice Cymru website. We also publish regularly updated guidance for hosts and sponsors at gov. wales/ukraine.
“We still need many more households to consider whether they could provide a home for those in need. This would normally be a commitment to hosting for 6 to 12 months.
“If anyone is considering this, we encourage them to register their interest at gov.wales/offerhome, and to attend one of the ‘Introduction to Hosting’ sessions, facilitated by Housing Justice Cymru. You won’t need to continue the process if you decide it is not for you.
“We have also partnered with Airbnb.org to ensure very short-term emergency placements can be provided to prevent homelessness.
“If you cannot host for more than 6 months but you could offer your property for up to 30 days at a time, you may also be able to contribute. Visit gov.wales/offerhome and follow the link to the Airbnb.org platform.”
Finally, the Minister stated: “We will continue to communicate with those who host Ukrainians, with updated guidance and information to support the valuable role you are undertaking.
“To all those that are already hosting and to those that are considering hosting, thank you, we owe you all a huge debt of gratitude.”
WESTMINSTER MUST BACK HOSTS
DURING COST-OF-LIVING CRISIS
Where families had taken in those fleeing Russian aggression, he noted a risk of sponsorships not continuing beyond six months because the hosts cannot afford the rise in fuel costs.
He asked the Minister what discussions she’d had with the UK Government about increasing the £350 contribution to households who’d taken in Ukrainian refugees.
The Minister agreed with Mark Isherwood that ending a specific ministerial post dealing with refugees was regrettable.
She noted a lack of information from the UK Government over the summer months and since Liz Truss replaced Boris Johnson as head of the Conservative Government.
Ms Hutt said: “We asked for an increase at least to £500, or up again, doubling to £700 per month. An urgent decision is needed regarding this as they reach the end of their six-month period.
“That period is underway, so we’re writing to all hosts to see if they will continue.”
UK GOVERNMENT URGED
TO PICK UP THE PHONE
She added: “I look forward perhaps that we might have some telephone calls from the Prime Minister and other Ministers to us in Government. We must engage with them and follow this through.
“There is a huge job of work to be done here. We’re taking responsibility in the way I’ve outlined, funding our welcome centres and paying thank-you payments to hosts if they support a family who initially arrived in Wales under the Ukraine family scheme.
“That’s not happening in England. The commitment that we’re making is considerable.
“I hope everyone will join us today, saying that we need to press for those answers in terms of financial support.”
THE THREAT OF HOMELESSNESS
The Minister praised the work of local authorities across Wales supporting refugees.
She said: “There are very imaginative programmes. That includes a whole range of issues like repurposing empty buildings.
“Local authorities are really coming up with a whole range of ways in which we can support people, perhaps, from a welcome centre, or a host family, into that intermediate accommodation, and then on to other longer-term accommodation.”
Pembrokeshire currently houses around 200 Ukrainian refugees, with the demand for assistance outstripping the availability of suitable accommodation.
NOT ONE PENNY FROM WESTMINSTER
TO SUPPORT FAMILIES FLEEING WAR
“The UK Government has never given a penny towards the family scheme.
“The former Prime Minister, Boris Johnson, in one of his last PMQs, actually said that he thought the Ukraine family scheme should get the same funding and support as the Homes for Ukraine scheme. It’s never happened.
“We have provided thank-you payments to people who are hosting Ukrainian families. It’s all Welsh Government money; it’s not UK Government, because they don’t provide a penny. And also, the British Red Cross—£246,000—who are actually supporting Ukrainian families who are hosting family members under the Ukrainian family scheme.”
On Wednesday, September 28, Eluned Morgan, Wales’s Health Minister, announced the continuation of free healthcare in Wales to Ukrainian residents displaced by the ongoing conflict.
The exemption will continue to apply unless there’s a significant change in circumstances in Ukraine.
Kwarteng gambles on rush for growth
CHANCELLOR of the Exchequer Kwasi Kwarteng unveiled his and Liz Truss’s economic vision for the UK on Friday morning.
The headlines are straightforward.
There will be £45bn in tax cuts by 2027; however, the largest cuts – national insurance cuts, the abolition of the cap on bonuses and the highest income tax rate- benefit only high earners.
Cut in the basic rate of income tax to 19% from April 2023;
National Insurance will not rise as scheduled, and the Government will reverse the current year rise as of November 6;
New Health and Social Care Levy to pay for the NHS will not be introduced;
The top rate of income tax was cut from 45% to 40%;
Cancel the rise in corporation tax which was due to increase from 19% to 25% in April 2023;
Rules around universal credit tightened by reducing benefits if people don’t fulfil job search commitments;
VAT-free shopping for overseas visitors;
End of the cap on bankers’ bonuses;
Planned increases in the duties on beer, cider, wine, and spirits cancelled;
Government to discuss setting up investment zones with 38 local areas in England.
Alongside the above, the Chancellor announced plans to remove environmental safeguards for building developments and reduce the regulatory burden on financial institutions.
KWARTENG LEAVES LABOUR AN OPEN GOAL
In an interview with Rishi Sunak during the Conservative leadership contest, Nick Robinson observed that it would be a nasty surprise for the former Chancellor when he found out who’d been in power for the last twelve years.
Kwasi Kwarteng followed Liz Truss’s preferred method of operation: he pretended they hadn’t happened.
The Chancellor comprehensively dumped on the policies pursued over the last dozen years by successive Conservative governments, for a decade of which Liz Truss has been a member.
His statement was, as one ministerial colleague said, “a game changer”, although perhaps not in the way he envisaged.
So complete was the change of economic policy that it leaves an open question about how Mr Kwarteng and his Cabinet colleagues ended up in the same political party as most of their backbench colleagues and served under the last three Conservative leaders.
Shadow Chancellor Rachel Reeves did not miss the open goal. Even as Mr Kwarteng and Ms Truss shook their heads on the government benches, she hammered home that the Chancellor’s statement was an admission the record of Conservative governments since 2010 was one of a failure to deliver growth or a viable economic plan.
THE SUPPLY SIDE FIX
The Chancellor and Prime Minister’s rationale is that cutting taxes for the already well-off will benefit all citizens as they are incentivised to invest and act in entrepreneurial ways. In addition, reducing regulation for businesses will encourage increased commercial enterprise.
They believe the growth stimulated will make up for any loss in tax revenues as increased economic activity, encouraged by lower taxes, leads to increased government revenues.
That approach is called supply-side economics, which focuses on increasing the supply of goods and services through growth.
In every developed nation where the Government’s brand of economics has been tried, two things have happened: a cataclysmic bust has followed a short-term burst of economic activity.
In addition, wealth inequalities – and the UK is already grossly unequal – are embedded and made worse.
Low taxes on the wealthiest do not distinguish between those who generate wealth through their industry or create economic activity through business investment and those who inherit wealth or sit on capital without producing anything.
“THE RICH WILL REJOICE”
Wales’s Finance Minister, Rebecca Evans MS, responded: “Rebecca Evans, Minister for Finance and Local Government, said: “Instead of delivering meaningful, targeted support to those who need help the most, the Chancellor prioritises funding for tax cuts for the rich, unlimited bonuses for bankers, and protecting the profits of big energy companies.
“Instead of increasing funding for public services in line with inflation, we get a Chancellor blithely ignoring stretched budgets as public services find their money is not going as far as it did before.”
Plaid Regional MS Cefin Campbell said: “This Budget will see the rich rejoice as their bonuses rocket and their tax bill sliced, once again it will be the poorest and most vulnerable bearing the brunt of the disastrous cost of living crisis.”
Plaid Cymru’s Treasury spokesperson, Ben Lake MP, added: “Tax cuts for the super-rich will do absolutely nothing to drive growth in the Welsh economy.
“I urge the UK Government to recognise that our Government in Wales must be given the fiscal tools to unlock our economic potential ourselves. That is the only way to improve the lives of people across Wales.”
Welsh Conservative Shadow Minister for Finance, Peter Fox MS, said: “Today shows that the UK Conservative Government has a comprehensive plan to provide a sharp boost to the economy by putting cash back into people’s pockets. Labour in Wales has the power to cut taxes in Wales but chooses not to.
“Mark Drakeford needs to take a leaf out of Liz Truss’ book and take immediate action to support hard-working people and struggling businesses, stimulating the Welsh economy rather than stifling it.”
Scott Corfe, Research Director at Social Market Foundation, said: “The Chancellor is taking a very high-risk gamble with the economy.
“If his package of enormous tax cuts and ‘supply side reforms’ fails to translate into significantly higher economic growth, we risk further falls in the pound and surging gilt yields as investors lose confidence in our ability to pay our way in the world.
“That, in turn, means higher inflation, an unsustainable trajectory for the public finances and steeper interest rate rises – potentially deepening rather than alleviating the cost of living crisis.”
Liz Truss confirmed as the new Prime Minister
LIZ TRUSS was confirmed as the new leader of the Conservative Party on Monday, September 5.
The widely-tipped victory saw Ms Truss capture 80,000 out of 140,000 votes from Conservative members.
Her margin of victory, 57% to 43%, is comfortable but nowhere near the levels suggested earlier in the campaign.
In her first speech, she claimed she would fulfil the pledges made in the Party’s 2019 election manifesto and praised her predecessor, the disgraced Boris Johnson, for getting Brexit done.
“Leave cannot name one country we would get a better trade deal with if we left the EU.”
At least Liz Truss’s six-year-old prediction about the benefits of Brexit came true.
It also highlights her remarkable capacity to rewrite her past and her fellow Conservatives’ collective amnesia about her.
Liz Truss comes from a comfortable middle-class background.
Her father is an emeritus professor of pure mathematics at the University of Leeds, while her mother was a nurse, teacher, and member of the Campaign for Nuclear Disarmament.
Liz Truss describes her parents as “to the left of Labour.”
She attended the highly-rated Roundhay School in one of Leeds’s more pleasant suburbs. She went to Oxford University to study Politics, Philosophy, and Economics.
She graduated in 1996.
During her time at University, she became President of its Liberal Democrat Society and, in 1994, spoke in favour of the monarchy’s abolition at the Party’s national conference and supported the legalisation of cannabis.
After graduating in 1996, she joined the Conservative Party and promoted the value of mathematics teaching to all students in full-time education.
After entering Parliament in 2010, in 2012, she became a junior minister in David Cameron’s government.
After making an impact in her role in the Department of Education, she got a big promotion to the position of Environment Secretary. In that role, she accepted climate change was happening and promoted the end of pesticides that harmed bee populations.
She reversed her positions within a year, backing the lifting of a ban on such pesticides and ending subsidies supporting the extension of solar energy.
During the Referendum campaign of 2016, she was an ardent Remainer, saying: “I am backing remain as I believe it is in Britain’s economic interest and means we can focus on vital economic and social reform at home.”
She also said: “After the 2016 Referendum, she underwent a dramatic conversion to become an ardent Brexiteer – again blown by the prevailing wind in a direction that would further her career ambitions.”
As a disastrous Justice Secretary, she undermined the independence of the judiciary and oversaw a large increase in violence in prisons.
As a reward, she was shunted to the position of Chief Secretary to the Treasury. After backing Boris Johnson in 2019, she became International Trade Secretary. During that time, she signed trade agreements with the UK’s trading partners on strikingly worse terms than the UK had during its EU membership. She also became the UK’s chief negotiator with the EU and rapidly ran those negotiations into the sand.
From radical Liberal Democrat to right-wing Conservative; from ardent Remainer to enthusiastic Brexiteer; the only constants in Liz Truss’s political views have been her views on individual liberty and the pursuit of career advancement.
A strong supporter of David Cameron; a stalwart of Theresa May’s cabinet; a fervent early adopter of the Boris Johnson cult; Liz Truss will be the UK’s fourth Prime Minister in six years and the third in a row who has risen to the post without facing a General Election.
Her inbox would be extraordinarily challenging, even for someone widely regarded as almost as intellectually negligible and facile as her predecessor.
Liz Truss doesn’t have time to build a brand or establish her authority.
She must hit the ground running with fresh ideas to tackle the UK’s massive economic challenges, the fallout from a shambolic Brexit deal agreed by her predecessor, the cost-of-living crisis, the energy crisis, spiralling inflation, the possibility of a recession, Russia’s war in Ukraine, and delivering all the promises on tax cuts she made during the leadership campaign.
Most importantly, she must signal a clear break with the sleaze, patronage, and low standards of public life that forced Boris Johnson and compelled almost his entire ministerial team to quit when the stench of scandal became too much for them.
Against that background, survival to 2024 and beyond will be a massive achievement.
POLITICAL VOICES FROM WALES ON NEW PM
Welsh Conservative leader Andrew RT Davies MS said: “I am delighted that Liz has been elected party leader and will be our next Prime Minister, especially having backed her during the contest.
“Throughout her political career and this contest, we have seen someone with the tenacity, ideas, and stoicism required to lead the Conservatives into the next election and the country through a difficult period.
“There is a lot of work to be getting on with, especially in tackling the cost-of-living crisis, and I look forward to seeing Liz’s ideas put into action to alleviate the struggle millions are facing.
“It is now time to unite behind our new leader, and further build on our record of delivering for Wales and the wider United Kingdom.”
Predictably, Labour in Wales are not happy.
Labour’s Shadow Secretary of State for Wales Jo Stevens told this newspaper: “Liz Truss has her fingerprints all over the crime scene of the past 12 years of Tory failure. She reliably parroted Boris Johnson’s lies and voted for the 15 tax rises the Tories have imposed in the last two years. At every turn, she’s shown people she can’t be trusted.
“Households right across Wales needed action from the Tory Government to tackle their cost of living catastrophe months ago. Nearly nine weeks on from the start of her leadership campaign, Truss still has no plan and no ideas to address the crisis people and businesses are dealing with.”
Carmarthen West and South Pembrokeshire MS Samuel Kurtz has congratulated the country’s next Prime Minister
Commenting on the news, Samuel Kurtz MS told The Herald: “Congratulations to Liz Truss for securing this victory. Whilst I supported Rishi Sunak, the Conservative Party has always had a wealth of talented individuals, and Liz is certainly one.
“The Party must now come together behind our new PM.
“We have some real challenges ahead of us – both abroad and at home – which the incoming Prime Minister must get to grips with. I have faith that Liz Truss has the ability to support the public as we navigate the oncoming winter.
“As we move forward, my priority is ensuring that the communities I represent get the assistance and support they need as we enter these challenging months ahead.
“I’ll be working with my colleagues in Westminster to ensure that support reaches every household in West Wales.”
Welsh Liberal Democrat Leader Jane Dodds MS said: “Under Liz Truss we are set to see more of the chaos that we saw under Boris Johnson. From failing to deal with the cost-of-living emergency, to letting small and medium businesses face the winter alone, to failing to deal with the climate crisis, the Conservatives have shown they don’t care, have no plan and have failed our country.
“The Conservatives may have changed leader, but after twelve years in power at Westminster the Conservatives have shown they are out of ideas, out of energy and out of touch.
“First the government needs to urgently scrap October’s energy price rise to avoid a social catastrophe for families and pensioners this winter. Then we need a general election, to get the Conservatives out of power and deliver the real change Wales needs.”
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