Labour has marked the new year by shifting gear and starting to provide answers on policy, as Keir Starmer seeks to make an impact with voters. Shadow chancellor Anneliese Dodds committed the party to a “responsible economic, fiscal and monetary policy” in a speech, signalling the end of the Corbyn era. Labour’s approach involves spending more than the Conservatives but with safeguards to prevent excessive or wasteful spending, and a 20-year horizon to tackle short-termism. Tax policy would take more of the strain than interest rates. However, Dodds dodged the question of when Labour would balance the nation’s books.
Starmer has positioned Labour as “the party of the family”, writing in the Sunday Telegraph, and using buzzwords “families”, “business”, and “patriotism” to neutralise weaknesses under Jeremy Corbyn. He also voted for Boris Johnson’s EU trade deal and said he would not try to renegotiate it as prime minister, a move intended to regain trust in the “red wall” seats lost at the last election. Pro-Europeans in Labour reacted badly, but the step was seen as necessary.
Difficult policy choices lie ahead. Starmer told a private meeting of Labour MPs he wants to scrap universal credit, but plans for a universal basic income, pushed by Ed Miliband, have provoked tensions in the shadow cabinet. Critics fear such a policy would be branded “something for nothing” by the Tories and could deter voters in the red wall.
In his first nine months, Starmer has passed a credibility test, with Labour level pegging with the Tories in polls and him ahead of Boris Johnson on best PM. However, some Labour MPs fear excessive caution, describing him as “risk-averse and frankly a bit boring”. He was slow to say schools should close during the pandemic, and gave an uncomfortable interview on the topic. Discipline has improved, but the message must be clearer to gain attention.
