The Faultline At The Heart of the Government

Monday, 23rd February 2009

Francis Elliott's story in The Times this morning is well-sourced and identifies the dangerous faultline that runs through the Labour Party right up to the Cabinet.

Francis reports that Lord Mandelson is (once again) considering ripping up the equality legislation announced inthe Queen's speech because of fears of its effect on small businesses during the recession. He will do so in the face of fierce opposition from Harriet Harman, but surely calculates that the mood of the country (and certainly the business community) will be with him.

The trouble is that this blows a hole in what remains of the New Labour political settlement. During the good times ministers were able to argue that measures such as the minumum wage and enhanced maternity leave rights did not effect the ability of small businesses and entrepreneurs to do their job. This position is now being seriously tested.

Cheerleaders of the militant centre-left such as Jon Cruddas argue that now is the time to hold the line on such matters of principle. His quote in The Times identifies just how dangerous this split is likely to be: “If the most progressive of our policies are the first to go under the hatchet, that will cause deep unease across the party. Genuflecting to the free market got us into this mess and the solution is not more of the same. There is now a deepening ideological divide about what to do next.”

Filed under: Business (165 more articles) , Harriet Harman (87 more articles) , Jon Cruddas (23 more articles) , Lord Mandelson (23 more articles) , Recession (176 more articles)

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Rhoda Klapp

February 23rd, 2009 10:05am Report this comment

How many jobs and businesses would Cruddas destroy in the name of his ideology? Is he merely positioning himself? Is being that stuoid a good position to contend for the leadership in future? Does he want to be the Michael Foot figure in the next phase of Labour history?

Forlornehope

February 23rd, 2009 10:30am Report this comment

The people on the left are not stupid. They know that "employment protection" is superficially attractive but creates higher unemployment. The outcome is an "insider" culture with those in work beholden to the unions and those out of work beholden to government benefits. It is a great scheme to keep the left in power. When people like Cruddas call for social protection, they know exactly what they are doing.