21.11.2020 Views

Claim the Future

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

John McDonnell MP

November 2020



John McDonnell MP

November 2020


Introduction

There is a struggle taking place in

our society. It’s barely reported in

the mainstream media but it’s real

and it’s happening.

It’s between people who have experienced the last 10 years

of austerity and the first wave of the pandemic and have

decided that things have to change. It’s between them and the

establishment who are desperately seeking to hold on to their

grip on wealth and power.

The pandemic has acted as a pressure test on how our society

and economy operates. It has exposed the stark reality of 21 st

century capitalism.

Where for millions work means poverty wages and a daily

struggle to make ends meet. Where social security provides no

security. Where, as a result of gross underfunding, social care

leaves thousands in neglect.

Not only have the weaknesses and failings of the system been

exposed but the dominant theories upon which the economy

has been managed are being forcibly challenged.

The market patently doesn’t always know best. Private good,

public bad as a dictum for the provision of public services has

led to rip-off profiteering and poor and at times dangerous

delivery of the services we depend on. The wealth amassed by

the rich at our expense has not trickled down.

The first wave of the pandemic inflicted immense hardship and

produced many personal tragedies but it also often brought out

the selfless best in people and prompted the first stirrings of an

4

Claim

The Future


optimism that lessons were being learnt and change could follow.

Since then tens of thousands more have died and we face the

second wave in which it feels like we are back to the start but

without the safeguarding systems put in place to cope that were

promised months ago.

The frightening threat of Covid has been made so much worse

by the crass incompetence of Prime Minister Johnson and his

ministers, who have combined failure with disingenuous bluster

and cover up.

Ministers and advisers have disregarded safety rules with

impunity and created unnecessary divisions across the country

to the point of putting at risk the very integrity of the UK.

Nevertheless, for their friends, awarded lucrative government

Covid contracts, it has been a very profitable crisis. What

economic support that has been provided to businesses has

been unconditional, with the result that there have been no

constraints put upon companies pursuing fire and rehire

strategies to cut workers’ wages and undermine hard won terms

of employment.

Lack of effective action by Government has resulted in

mass redundancies and job losses are mounting rapidly.

Unemployment is predicted to reach levels even beyond the

1980s, hitting young people the hardest. A new lost generation

is emerging.

Mobilising to respond to the immediate problems our people

are facing of job losses, attacks on wages, rising debt and

evictions is now taking on a heightened sense of urgency. But

whilst confronting the day to day issues it is equally important

that we lift our sights to plan the society we aim to create so that

never again will we face a crisis so vulnerable and ill-prepared:

a society that will guarantee the security, hopes and dreams

people naturally seek to possess.

5 Introduction


We must claim the future. If we don’t, others will.

It will be the establishment politicians and the corporate

interests they serve that will prevail.

The risk is a repeat of what happened after the financial crash of

2008 when, by failing to mobilise for an alternative, progressives

allowed the political vacuum to be filled by the right.

That crash exposed a grotesque economic system built on greed,

perilously out of all democratic control, but the establishment

soon closed the waters over the crisis to return to business as

usual. The result was 10 years of brutal austerity that didn’t just

cause hardship but cost many lives.

History has taught us that a recession on the scale we could be

facing now not only blights the lives of a generation but is often

dangerously also the breeding ground for the far right.

The Claim the Future project has brought together a wide range

of policy experts and campaigners to discuss and plan what a new

future could be like but also by networking activist campaigners

with policy analysts and researchers to enable the prefiguring

of that new society in the campaigns and policy solutions being

promoted now.

We must claim the

future. If we don’t,

others will.

6

Claim

The Future


How do we Claim The Future?

With an 80 seat Conservative majority in Parliament and a largely

craven media, the question is how do we claim the future? How is

fundamental political and economic change achieved?

The past two major political paradigm shifts were brought about

by the post war Labour government and the 1980s Thatcher

government. They achieved radical change not by relying solely

on the publication of a long lists of policies but by advocating a

vision of a society based upon a basic set of principles that caught

the wind when the opportunity for change arose.

For Attlee’s Labour Party it was a society built upon solidarity,

collective action and public ownership. For Thatcher’s

Conservative Party it was individualism, market competition

and private ownership. Both these sets of principles dominated

political economy for their generation and beyond to the extent

that they were incorporated into the thinking and policies of

political opponents.

The experience of the pandemic after a decade of austerity has

the potential to deal a fatal blow to the already shaky hegemony

of Thatcherite neoliberal ideas and open up the opportunity for

change.

Contrary to the Thatcherite claim that there is no such thing as

society, the pandemic has taught us that we are a community and

we do care for each other and need each other.

Collective action and mutual support have been essential to

tackling the pandemic and supporting its victims, not just by the

state but also in a multitude of forms of mutual aid.

The promotion of individualism in a society and economy where

there is already an unequal distribution of power and wealth

has exacerbated that inequality. The pandemic has exposed the

brutal consequences of inequality in the higher death rates in

economically deprived areas and the BAME community.

7

How do we

Claim The Future?


Markets become next to irrelevant in large sections of an

economy shut down in a pandemic and private ownership has

proved to be unsustainable in many sectors of the economy,

such as transport, or shown to be dangerously unfit for purpose

in areas like social care.

The pandemic has demonstrated the redundancy of

neoliberalism at times of crisis with a clear lesson for how we

deal with the next crisis: the existential threat of climate change.

The argument could now be won for resetting our economy to

a new set of principles burnished by the pandemic experience.

An economy where universal basic services provide, as a right,

access to employment, education, a decent home, treatment and

care and an income securing a good quality of life.

An economy of true value, where the distribution of rewards is

based upon the social value of the contribution a person makes

to society and not solely the market value. An economy based

on community, whose aim is to bring people together and

support communities to thrive across the whole country. And,

as climate change is here, an economy with sustainability at its

core – where every economic decision is based upon sustaining

life on the planet and the rights of future generations.

A new set of founding economic principles is made real by the

advocacy of specific alternative policies to meet the immediate

challenges we face that prefigure the society we aim to create.

It is these policy demands that can provide the basis upon

which movements can be mobilised. It is only through those

movements that we can create an unstoppable climate of

opinion to force through fundamental change.

8

Claim

The Future


Valuing Work and Empowering Workers

A Jobs Guarantee

The coronavirus crisis has revealed how reliant everyone is on

working people from the carers in our residential care homes,

to the supermarket workers, the drivers of trains and buses

and to the cleaners, essential to reducing the risk of infection.

Workers have secured people’s health, care, travel, shelter, and

livelihoods.

But it has also exposed how the pay and working conditions of

many of these workers show how little they have been valued in

the eyes of employers and government alike.

There are 3.7 million people in insecure work with nearly a

million workers on zero-hours contracts with no guaranteed

hours. Insecure work has gradually spread into new industries,

such as banking and education.

The last ten years have also seen a “pay disaster”, in the

words of the chief economist of the Bank of England, with

weekly wages still below the 2008 levels in the months before

the pandemic. In-work poverty has increased by a third

since 1996/97.

Statutory sick pay is at a miserable £95.85 per week and many

zero-hours contract workers and other ‘gig economy’ workers

do not have access to statutory sick pay at all. Low pay is the

product of decades of decimating workplace rights.

Margaret Thatcher’s goal was “to smash the unions forever”.

She introduced legislation reducing compensation for unfair

dismissal, enabling punishment for striking, restricting

strikes in support of other workers and ending the “closed

shop”. Privatisation, outsourcing and deregulation were often

justified on the ground of reduced costs but invariably this

reduced cost was secured by undercutting workers’ pay and

conditions and loosening protections at work.

9

Valuing Work and

Empowering Workers


Key elements of anti trade union legislation were maintained

under New Labour. Then, between 2010 and 2020, efforts to

dismantle organised labour were redoubled under successive

Conservative-led governments. The Trade Union Act 2016

introduced even further restrictions on when a strike was possible.

Unite General Secretary Len McCluskey called it “a dark day for

workers” when the Act was passed.

It is no coincidence that as membership of trade unions fell by

47% between 1979 and 2014 there was a sharp rise in inequality.

Over the same period the share of wealth that went to the richest

one percent leapt by 134%.

When the pandemic hit, it became obvious that the state

had to intervene urgently and at scale to support people

unable to work and to support businesses whose operations were

curtailed.

But the government’s interventions have been slow, half-hearted

and riddled with gaps in coverage, with the result that many have

suffered hardship from inadequate or no support at all.

By failing to attach basic conditions to state aid the government

has also given free rein to employers to drive through long-held

corporate ambitions to cut wages and undermine terms of

employment to enhance their long-term profits. The rapidly

expanding practice of “fire and rehire” has demonstrated that

many employers are not letting the crisis go to waste.

With the uncertainty of adequate government support

continuing, joblessness is predicted to reach levels not seen

since the 1980s. The Alliance for Full Employment estimates

that one and a half million young people will experience

unemployment over the next year.

10

Claim

The Future


A Jobs Reset Programme

We need a reset programme of immediate measures to protect

living standards during the pandemic and lay the foundations

of a new economy based upon full employment and properly

valuing and rewarding workers.

A Job Guarantee Scheme providing the guarantee of paid

work at least at the real living wage, or the union negotiated

rate, or to provide free education or skills training, will be vital

to preventing a prolonged slump and the even larger economic

and social costs that come with sharp rises of long-term

unemployment and increased poverty. Linked to the Green

New Deal, this would provide the well paid, skilled jobs needed

in the just transition to a sustainable economy.

The guarantee of a job or an education or training opportunity

will only succeed if universities and colleges are fully resourced.

The free market model in universities and colleges was already

fundamentally broken, since a large percentage of student debt

is never going to be paid back. And now, hit through the Covid

crisis by a £2.6 billion shortfall, some universities may face

bankruptcy, denying opportunity to thousands of young people,

as well as resulting in job losses.

Government has provided some limited financial assistance

to universities to help with cashflow but is threatening to cut

courses and restrict access. A full bail-out is critical but must be

conditional on preventing job losses, ending casualisation and

be linked to scrapping tuition fees, restoring maintenance grants

and the Education Maintenance Allowance to remove barriers

to workers seeking to improve their skills and retrain throughout

their working lives.

The Job Retention Scheme could readily be adapted to a short

time working scheme, permanently available if needed, to share

work and reduce the working week under the leadership of

trade unions.

11

Valuing Work and

Empowering Workers


Boosting the minimum wage is an essential way both to value

workers properly and to assist in recession-proofing people in

work. Prior to the coronavirus crisis the minimum wage was

not a real living wage. An immediate increase to £10 an hour

with the aim of a staged increase to £15 an hour would not only

reduce in-work poverty but also inject money back into the

economy, since those paid the least are highly likely to spend

these wages rather than save them.

Sectoral collective bargaining is the single most important way

to ensure good minimum terms, conditions, and pay are agreed

across an industry. Its early introduction in the care sector could

overcome the chronic low pay of carers.

Effective collective bargaining requires the restoration of

trade union rights by repealing the Trade Union Act 2016 and

overhauling earlier legislation restricting the rights to organise,

strike, and gain access to workplaces for organising.

The exploitation of insecure work would be reduced by banning

zero hours contracts and returning to one category of ‘worker’

whilst a better balance between work and rest could be struck by

reducing working hours with the aim of achieving the equivalent

of a four day week and increasing the number of bank holidays

without loss of pay.

A better balance between work

and rest could be struck by

reducing working hours with the

aim of achieving the equivalent of

a four day week without loss of pay.

12

Claim

The Future


Social Security

Nobody Should Live in Poverty:

A Minimum Income Guarantee

The path to a better society and a stronger economy can only be

built on the foundations of a strong safety net. If social security is

to mean anything in the sixth wealthiest country in the world, it

should mean nobody lives in poverty.

Poverty has been rising in Britain for over a decade. Under the

austerity policies of the Conservative government from 2010,

billions of pounds have been cut from social security budgets,

driving millions more people into poverty. The benefit freeze

meant real terms cuts in incomes – while eligibility for support

was removed from many people. Support for low paid workers

was also reduced through cuts to tax credits, Universal Credit

and housing benefit.

Alongside these cuts, a more punitive conditionality and

sanctions regime has been introduced, described as going from a

system that helped people to a system designed to trip people up.

14 million people in Britain are now officially classified as living

in poverty. Over four million children are growing up in poverty,

pensioner poverty is rising again, and over three in ten disabled

people live in poverty.

In-work poverty is at record high levels, and 70% of the children

in poverty are in a household where at least one parent works. Of

the 14.3 million people in poverty, nine million live in households

where at least one person works.

UK benefits provide some of the lowest incomes in western

Europe. The United Nations has been damning about the impact

of austerity, saying that the UK’s social safety net “has been

deliberately removed and replaced with a harsh and uncaring

ethos” whilst a former government adviser, Louise Casey, has

referred to people facing destitution.

13

Social

Security


In recent years the number of workers who are self-employed

has increased dramatically from 3.3 million in 2001 to around

5 million workers at the start of 2020. Many are not eligible for

the social security protections that are available to employed

workers, and many are forced into bogus self-employment –

working regularly for the same employer, while the employer

avoids having to pay pension or National Insurance

contributions or having any duty to provide benefits like sick pay

and pensions.

When the coronavirus crisis hit it was clear that the UK’s

shredded social safety net would be inadequate but whilst the

government has been forced to introduce a series of additional,

short term, late and limited measures to support businesses

and wages, its obvious aim is to cut this support at the

earliest opportunity.

The Government clearly shares the view of the Governor of

the Bank of England when he argued for ending support “to let

structural change in the economy take place.” The inevitable

consequence of withdrawing support without any plan for

managed structural change is rapidly rising unemployment and,

with the resultant loss of income, poverty. It is the return of the

Conservative attitude of the 1980s that unemployment is a price

worth paying.

Government ministers fail to accept that social security acts as

what economists call an ‘automatic stabiliser’, acting as a buffer

that not only protects the individual but the wider economy –

preventing economic demand from slumping. The underlying

principle of social security is that it should provide a liveable

income for all those unable to work or whose pay from work

does not provide a liveable income. The current system fails to

fulfil this basic role. It needs to be reset.

14

Claim

The Future


A Social Security

Reset Programme

All our children should be given the best possible start in life, but

child poverty has been rising in recent years due to deliberate

policy choices – including limiting benefits to the first two

children and freezing and then capping child benefit. To tackle

child poverty, child benefit must be increased substantially, the

benefit cap scrapped, and the two-child limit removed.

A social security system that does what it says and provides

security, must start with a Minimum Income Guarantee at its

base – providing the minimum level that anyone is expected

to live on. A range of levels for the MIG have been suggested

including a Liveable Income Guarantee equivalent to the real

living wage, accounting for housing costs too, and linked to

additional support to ensure the right to independent living

for disabled people. These would be significant increases from

the current levels of UK social security, but they would be not

greatly dissimilar from levels of social security paid in Ireland,

France or Germany.

The underlying principle of social

security is that it should provide a

liveable income for all those unable

to work or whose pay from work

does not provide a liveable income.

The current system fails to fulfil this

basic role. It needs to be reset.

15

Social

Security


Housing

A Home for Everybody:

A Homes Guarantee

Housing is the starkest example of market failure. In the last

decade the number of people sleeping rough on England’s

streets has more than doubled. 726 rough sleepers died in 2018.

The street homeless are the tip of the iceberg of the housing

crisis that exists across Britain. There are now over 135,000

children growing up in temporary accommodation, without a

home to call their own. Home ownership has steadily declined

especially among younger households, which have not been able

to afford a home. The average house price is nearly eight times

the median wage.

Landlords have also been crowding out first-time buyers in

the housing market, as house price rises have outstripped

wage rises for a generation. Only those with significant wealth

are able to put down the necessary deposit in order to get a

mortgage. This trend means nearly a million fewer under-40s

own their own home than was the case a generation ago. At the

same time the numbers renting in the private sector in England

have doubled to 4.6 million with many renters trapped in

overcrowded accommodation.

16

Claim

The Future


Cuts to housing benefit mean that a lower proportion of rent is

being paid by benefits. The bedroom tax also took away further

housing support from council and housing association tenants if

the property was deemed to have a spare room. The household

benefit cap has socially cleansed low income renters out of

many areas.

Despite pledging to end no-fault evictions in 2019, the

Government has yet to bring forward legislation and more than

three years on from Grenfell, hundreds of thousands of people

continue to live in homes covered in flammable cladding.

In the early stages of the pandemic the Government gave all

mortgage holders a payment holiday with deferred payments

added to the end of the mortgage term or added to monthly

payments. A moratorium was introduced on evictions

for renters and renters and landlords were urged to agree

repayment plans.

The result is landlords have been protected from losses like no

other businesses. Housing benefit was marginally improved

but the benefit cap and the bedroom tax have been left in place.

StepChange debt advice charity estimated that by late May 2020,

590,000 household had fallen into rent arrears.

The temporary ban on evictions has ended, with the prospect

of large-scale evictions and homelessness. For homeless people

sleeping rough, the Government brought in an ‘Everybody in’

policy, working with hostels and hotels to try to accommodate

all rough sleepers, but that policy was ended in May, and rough

sleepers are at risk of a bleak winter back on the streets.

The failure to have any concerted housing policy and leaving

housing supply to the market has resulted in millions of families

being without a safe, secure and affordable home and that figure

risks growing unless urgent and co-ordinated action is taken.

17 Housing


A Housing Reset Programme

Housing should be a human right for all not an investment

opportunity for a few. Whether they are homeowners,

leaseholders or renters, everyone must have the right to a

safe, secure and affordable home.

To achieve that we need a Housing Reset Programme that deals

with the immediate housing crisis and lays the foundations for

ensuring a decent home is guaranteed for everybody.

Emergency accommodation must be provided to homeless

people and the ban on evictions extended for a further year,

whilst 8000 additional homes are allocated for people with a

history of rough sleeping, and legislation to protect renters has

been enacted.

Millions of renters will exit lockdown with substantial housing

debt because they have lost their job or had their pay cut on

the furlough or job support schemes. The government should

legislate to cancel housing debt.

To ensure housing is affordable, housing benefit should be

restored to the 50th decile of local market rent, the bedroom tax

scrapped and the benefit cap abolished. Rent controls should

be re-established and security of tenure in the private sector

legislated for, with councils required to introduce landlord

licensing to enforce minimum standards.

Landlordism is an even greater scourge today than it was when

Keir Hardie wrote in 1907, “Socialism proposes to abolish

capitalism and landlordism.”

18

Claim

The Future


We should not be neutral but increase the taxes on property and

rental profits, and bring forward new regulations that contribute

to curtailing and ending landlordism, including increasing

capital gains tax on second homes, banning the purchasing of

homes by companies, limiting the number of homes that can be

owned by an individual and ending leasehold.

A nationally co-ordinated programme of mass council house

building is urgently needed to ease the housing crisis, and to

provide jobs and training. This programme needs to be part of

a co-ordinated green investment programme to ensure all new

builds meet a zero carbon homes standard and a new Decent

Homes Standard, as well as making existing homes safe by the

removal of cladding, with improvements funded by landlords

and private developers in the private rented sector.

A new agency is needed with powers to purchase land

and to make public land available for low-cost housing,

combined with ‘use it or lose it’ taxes applied to developers

that are land-banking.

Landlordism is

an even greater

scourge today.

19 Housing


Debt

Tackling Debt Domestically

and Internationally:

A Debt Jubilee

With government debt much higher than levels reached after

the financial crash, some will resist action to tackle domestic

household debt or debt in the Global South.

The response is to point to the Attlee government which, with a

debt of over 200% of GDP, created the NHS, built the welfare

state, undertook a massive council house building programme,

producing economic growth, full employment, rising wages and

debt reduction.

In the 2008 banking crisis, the banks were bailed out, enabling

the financial system to recover. In this crisis, it is people,

businesses and the poorest countries that need the bailouts and

protections that the banking sector was afforded in the last crisis.

The shutdown of the economy is leading to unemployment,

business collapse, and rising personal and corporate debt.

The debt charity StepChange has calculated that between

March and June 2020 4.6 million people were facing a “tsunami”

of debt or arrears of more than £6bn. It’s estimated that 100,000

people attempt suicide every year due to debt.

Although the Bank of England cut the base rate of interest,

credit cards, personal loans secured or unsecured, payday loans

and overdrafts all charge rates of interest tens or even hundreds

of times in excess of the Bank of England base rate. It is in this

way that banks and other lenders make profit, often from their

least well-off customers.

One solution is to cap interest rates. This could be done as a

multiple of the Bank of England base rate or as the BoE base

20

Claim

The Future


rate plus a percentage. Other proposals include capping the total

amount that can be paid in overdraft fees or interest payments.

The mortgage payment holiday has extended mortgage terms

for the 1.8 million people who have not been able to make

mortgage payments for several months but borrowers may

have their credit rating downgraded for taking advantage of the

payment holiday scheme.

Many people have also gone into arrears on household bills

and council tax. Italy suspended household bills during the

coronavirus crisis, but the UK did not follow suit.

The Government has ended its ban on bailiff visits. Bailiffs

don’t just collect debt on behalf of lenders, but on behalf of

those who have purchased debt on the secondary debt market.

These vultures purchase (at knockdown prices) debts that other

lenders have given up on recovering and pursue debtors.

In this crisis, it is people,

businesses and the poorest

countries that need the bailouts

and protections that the

banking sector was afforded in

the last crisis.

21 Debt


A Debt Reset Programme

for Domestic Debt

The Government is the only actor that can borrow at low

interest rates and act to control and reduce company and

personal debts. A more wide-scale solution to debt would be for

the Government to create a consumer equivalent of UK Asset

Resolution, the so-called ‘bad bank’ that purchased problem

debts from the banks to clean up their balance sheets.

Such a vehicle would allow people to offload problem debts and

refinance at affordable rates, avoiding the excessive interest rates

and extortionate fees made by some lenders and bailiffs.

A Debt Reset Programme

for the Global South

Covid is a global pandemic so global solutions are needed.

A number of countries in the Global South have managed

coronavirus far more effectively than the United Kingdom,

adopting stringent quarantine and lockdown measures and

responding rapidly to the threat of an outbreak.

But other countries face funding constraints and restricted

public capacity, because of the longstanding expropriation of

resources from the Global South by imperial powers, especially

the UK, which has removed a key source of revenue for

governments, contributing to high levels of government debt.

Policies imposed by the World Bank and the International

Monetary Fund, alongside Western support for military action,

sanctions regimes or corrupt authoritarian rulers, have left many

countries ill-equipped to deal with the pandemic.

22

Claim

The Future


Radical reform of international finance is needed combined

with the pursuit of debt cancellation by the UK. The G20

agreed to suspend some debt payments for 76 countries.

But this involved only country-to-country debt, not debt to

international institutions or the private sector.

Because of the central role of the City of London in global

finance the UK’s support for the new international campaign for

debt cancellation would be a game-changer.

The Black Lives Matter protests highlighting Britain’s imperial

past and role in the slave trade should make debt cancellation a

first step in a reparations process phased over time.

Health and Social Care

Care Guaranteed:

A National Care Service

Austerity, privatisation and fragmentation within the NHS and

care sectors have exposed the UK to one of the worst Covid

death rates in the world. If we aspire to ensure good health and

care for all, we need a reset programme to rebuild our NHS as

a publicly-owned universal and comprehensive health service,

alongside the founding of a National Care and Support Service.

Over the last decade the NHS has been subjected to the longest

funding squeeze in its 72 year history. When the coronavirus

crisis began, the NHS had over 100,000 staff vacancies,

including 40,000 nurse vacancies caused by the removal of the

nurse student bursary, exacerbated by the ‘hostile environment’

policies and pay falling by 8% in real terms.

Before the pandemic NHS hospitals had recorded the highest

number of A&E ‘trolley waits’ on record, NHS targets had not

been met since at least 2016, and some not since 2015, including

the waiting time for cancer treatment.

23

Health and

Social Care


The 2012 Health & Social Care Act opened the door to large

scale outsourcing and privatisation, whilst the number of NHS

hospital beds fell by 5% between 2012 and 2019, leaving the

government needing to rent private hospital beds for coronavirus

patients at huge expense. Chronic underfunding resulted in NHS

Trusts entering the Covid crisis with £13.4 billion of debt.

If the NHS was under pressure, then social care was in crisis.

There were 120,000 vacancies across the care sector, where

low pay for care workers was endemic. Due to £8 billion being cut

from the social care sector since 2010, Age UK estimated that 1.5

million older people were not receiving the care they neeeded.

Even before the pandemic hit the UK, life expectancy

improvements had slowed dramatically, and even begun to fall for

some groups, and health inequalities were widening. According

to the King’s Fund, “in 2015–17, people in the least deprived

areas could expect to live roughly 19 more years in good health

than those in the most deprived areas.”

From the identification of the first case of Covid, the

Government’s response to the pandemic has ranged

from the complacent to the incompetent and at times

downright dangerous.

An initial adoption of a dangerous strategy of herd immunity has

been followed by the failures in the supply of PPE and testing

and tracing on anywhere near the scale and speed required.

Lockdown policies have been late in implementation, then

confused and undermined by being disregarded with impunity by

senior government ministers and advisers.

So far the failure to effectively implement the World Health

Organisation test, trace and isolate strategy has contributed to

a death toll of 45.000 and predicted to reach 60,000. 600 of our

health and social care workers have also already died. Even now,

with the prospect of a vaccine in sight, there are strong concerns

about the resources and the capacity in Government to manage

its effective distribution.

24

Claim

The Future


A Reset Programme for

the NHS and Care Services

We need an NHS and Social Care reset programme on the

scale of a ‘new Beveridge settlement’ to rebuild our NHS

and to create a National Care and Support Service.

The first priority for the NHS is to secure the long-term funding

it needs: to meet the needs of an ageing society, to recruit the

staff to fill gaps, to give especially lower paid staff a decent

pay rise, and to address the backlog of delayed operations

and treatments. This will require substantial and sustained

investment, well in excess of existing commitments.The NHS

already had record waiting times, which are being exacerbated

by the coronavirus. The NHS will need considerable investment

in reopening beds and increasing capacity to cope with the

accumulated backlog.

Increasing NHS workers’ pay is essential to retaining

existing workers and those who have recently returned, as

well as attracting new recruits and trainees. The nurse

bursary is set to be restored in 2020 (at a lower level), but the

Government should go further and abolish all fees for all health

professionals’ training. The NHS has been operating below safe

staffing levels, and the Government should legislate to require

safe staffing on wards.

The Government should also end the ‘hostile environment’ so

that all UK residents can access NHS services. We are all at

greater risk if some are excluded from care. There should be no

checks on immigration status at NHS or primary care settings.

It is also clear that there will need to be extra investment in

mental health, as cases emerge of Covid-19 survivors, as well

as NHS and care staff, suffering from PTSD, and to deliver the

commitment to put mental health on a par with physical health.

25

Health and

Social Care


NHS privatisation must end and services be brought back

in-house to meet public need, not private greed. Repealing

the Health & Social Care Act is the key to rebuilding a

comprehensive and universal healthcare system that ends

the requirement on health authorities to put services out to

competitive tender, and ensure services are delivered in-house.

It is also vital that the NHS, social care and all vital public

services are kept out of future post-Brexit trade deals.

To reduce NHS procurement costs and aid future pandemic

preparedness, the UK Government should establish a

generic drug company whilst incentivising all pharmaceutical

companies to prioritise research on what is most medically

urgent, not on what is most profitable.

A National Care and Support Service is needed with the status,

respect and commensurate resources of the NHS to meet the

needs of an ageing population and to ensure independent living

for people with disabilities. It should be funded from progressive

taxation, free at point of use, and have universal coverage, and

staffed on terms aligned to the NHS.

To fundamentally refocus our social and economic decisionmaking,

the Government should consider adopting the Welsh

Government’s Future Generations Wellbeing Act 2015, to

ensure that health and wellbeing of the nation is prioritised in all

policy-making.

26

Claim

The Future


Climate Justice

A Sustainable Future:

Guarantee of a Just Transition

This is a generation-defining moment. We can choose to move

out of the coronavirus crisis and revert to the high-emitting,

environmentally destructive practices that have brought our

planet to the brink of overheating. Or we can decide that the

catastrophic damage to human life, communities, and economic

wellbeing caused by the coronavirus crisis provides the

opportunity for a reset.

Prior to the outbreak of coronavirus, the United Nations

Secretary General Antonio Gutteres said on climate change:

“The point of no return is no longer over the horizon. It is

in sight.”

The Intergovernmental Panel on Climate Change’s work

demonstrated the urgent need to limit global warming to a

1.5 degree increase. Although a 1.5 degree increase would still

bring severe weather and temperature impacts, the impacts

on species loss and ecosystems as well as climate-related risks

to health, food security, and water would be much lower at

1.5 degrees.

In the United Kingdom, environmental leadership from the

government has been profoundly inadequate. The Committee

on Climate Change set out 25 policy actions for the year

ahead in 2018. A year later, in its mid-2019 update report, the

Committee observed that 24 of those had not been delivered.

The UK was not expected to meet its 2021 legally binding

target for water pollution, with the Environment Agency

labelling water companies’ environmental protection efforts

“simply unacceptable.”

27

Climate

Justice


ClientEarth said in late 2019 that 83% of reporting zones in the

UK had illegal levels of air pollution, with no progress shown in

meeting obligations that should have been met in 2010; 40,000

early deaths are estimated to be caused by air pollution every

year in the UK.

This country’s and the world’s record in tackling climate change

and protecting the environment have left the future of the planet

at risk.

In response, 2019 saw people-driven environmental movements

create a growing groundswell of demand for action, including in

the UK three school strikes inspired by Swedish activist Greta

Thunberg and mass civil disobedience actions by Extinction

Rebellion.

The outbreak of coronavirus relegated climate change to the

margins of media reporting and political attention. On 1 April

the Glasgow COP-26 climate talks were postponed until

2021 with the risk that climate change would be neglected in

policy-making.

Nevertheless the plummeting of US oil prices in April,

which reached a point where the price went below zero, has

sparked renewed discussion of a managed windup of fossil

fuel production and a demand for just transition guarantees,

including an end to fossil fuel subsidies, no new exploration for

fossil fuels, and a nationalisation of the oil industry to enable

managed decline.

This country’s record in tackling

climate change and protecting the

environment have left the future of

the planet at risk.

28

Claim

The Future


An Environmental

Reset Programme

There is a strong case therefore for the Government to establish

a green Ministry of Public Works to co-ordinate a Marshall

Plan-scale investment programme in clean physical infrastructure

investment, improved insulation, in natural capital, clean R&D

spending, energy efficiency programmes for the UK’s housing

stock, electric vehicle charging networks, better road design for

cycling, tree-planting and rolling out full fibre broadband.

New publicly owned and democratically run industries are called

for that address both the unemployment crisis and the climate

crisis at the same time, centred on an expansion of the renewables

sector to supplant oil, gas, and coal. Key water, energy, mail,

rail, and broadband infrastructure must be brought back into

public ownership. Publicly funded retraining of workers for these

industries is essential to ensure the transition does not involve

job losses.

There is growing support for a National Investment Bank

to focus on lending for infrastructure and SMEs, with an

overriding goal of rapid decarbonisation and innovation,

providing essential resourcing for green projects, as well as skills

and capacity-building for these projects. To harness private

investment to the decarbonisation agenda, Bank of England

credit guidance could encourage green lending and prevent

lending to fossil fuel projects; whilst the requirements for listing

on the London Stock Exchange should be amended to encourage

climate-friendly practice, delisting companies that fail to meet

environmental standards.

A Green New Deal must be global if climate change and other

threats are to be tackled. Debt relief is needed so that the Global

South can contribute to green investment efforts to tackle

climate change and the UK government should commit to

offering technology developed in this country cheaply or free to

countries in the Global South, partly as an act of reparation for

historical injustice.

29

Climate

Justice


Migrants’ Rights

Our Economy has to be

for Everyone: Migrants’

Rights Guaranteed

The role of any economy should be to enable us all to live

thriving and fulfilling lives. The exclusion of migrants from

participating in and sharing the benefits of the economy

undermines that whole purpose.

Guaranteeing the rights of migrants and ending their exclusion

is a part of guaranteeing a sense of security for us all. It

also reflects our commitment to internationalism, which

recognises a right to move for everyone, not just the global

rich. It also acknowledges that the movement of people is a

result of global inequality to which the United Kingdom has

significantly contributed.

“Hostile environment” and other racist policies have been an

assault on the standing and basic dignity of people who have

migrated to this country. They have been built on top of a

longstanding framework of policies and legislation that treats

migrants as second-class citizens: through detention centres,

policing practices, deportation flights, and restricted access

to work, housing, and public services. They are a product of

the United Kingdom’s participation in an unjust international

economy, walled up by borders, producing migrant injustice

every day.

These policies are the direct result of past and current

imperialism and racism in the United Kingdom, that has been

highlighted by the recent Black Lives Matter movement.

As coronavirus spread across the United Kingdom in

February and March, non-UK nationals found themselves

with restricted access to social support and were left unable

30

Claim

The Future


to self-isolate effectively, and to protect themselves from

contracting coronavirus. The ‘No Recourse to Public Funds’

visa condition blocked access to vital public services. Migrants

continued to be held in migrant detention centres indefinitely,

with reports of coronavirus cases breaking out, concern over

the mental health of those detained, and no instructions or

guidance on social distancing.

There was a threefold increase in hate crime against people

appearing to be Chinese or from East Asia between January

and March 2020. With travel to a number of countries

restricted, many migrants were locked out from returning

home. In addition, those from overseas have been asked to pay

astronomical fees, like the Immigration Health Surcharge, just

to carry on living and working here, on top of paying taxes just

like British nationals.

Campaigners mobilised to pressurise the Conservative

government with the result that the visas of overseas health

and care workers were extended for a year. More than 700

detainees were released from migrant detention centres between

March and April and a successful legal challenge secured some

exception to the “No Recourse to Public Funds” rules. These

limited moves by the government did not prevent stark injustices

and human tragedies.

Although the coronavirus crisis highlighted the need to revalue

work that was previously labelled ‘low-skilled’ the Government

went ahead with the introduction of its Immigration Bill in May,

paving the way to restrict entry to the UK for those who do not

not meet its salary threshold, the so-called ‘low-skilled.’

By reducing access to legal, flexible migration routes for the

lower-paid, the Government’s so-called ‘points-based system’

will force more people in those circumstances into workplace

exploitation and modern slavery where they are unable to obtain

a secure legal status in the country.

31

Migrants’

Rights


The likely tightening of borders around the world creates the

risk of anti-immigrant policy and rhetoric becoming entrenched.

We need a strategy to resist any rise in xenophobia.

The Black Lives Matter movement has also exposed the role

of the criminal justice system in excluding people from the

economy and society. Responses to the movement in the

United Kingdom have made clear that racism, classism, and

brutality in the criminal justice system are pervasive problems in

this country.

Early release of people from prison during the pandemic has

revealed that many individuals in prison are better off rebuilding

skills and resilience in the community.

But a carceral mentality runs deep. To mark a break with this

way of thinking we need an immediate moratorium on new

prisons. Urgent support must be given to groups advocating

drug law reform, a moratorium on school exclusions, and an

end to youth custody centres. We need to rethink police powers,

including suspicionless stop and search. And we need to review

whether the police are best placed to provide support for

individuals in need of more specialised social services support,

while acknowledging the problems of racism and punitiviness

right across the delivery of public services.

Greater investment in universal basic services can play a role

in tackling social harm that prisons and police have struggled

to resolve for decades. Writer Amna Akbar has called for an

‘invest-divest’ strategy, where spending is rebalanced across

the system towards essential social services. This is a positive

opportunity to find effective responses to social harm, and to

address the social conditions producing that harm.

We need a strategy to resist any

rise in xenophobia.

32

Claim

The Future


Justice for Migrants

A much broader conversation must be started about the United

Kingdom’s historic role in the world, and how that has informed

its approach to politics – and in particular migration – today.

By advocating greater teaching in schools about this country’s

imperial history we can use political education effectively

to draw connections between past racism and the current

immigration system, as embodied in the Windrush scandal.

One spur to this broader political conversation is that the

coronavirus crisis has confirmed, yet again, the ongoing

contribution made to the UK’s society, culture, and economy by

migrants. It is migrant carers, nurses, and doctors that have kept

people alive during the crisis.

But while this contribution made by migrants is undeniable,

it is vital that policies do not reinforce false narratives about

‘deserving’ or ‘undeserving’ migrants. Access to social services

should be guaranteed due to migrants’ status as human beings,

not on whether they have contributed to society.

Based upon the adoption of Maya Goodfellow’s “no caveats”

approach and the immediate issues faced by migrants, our aims

are clear.

There is a need for an end to ‘no recourse to public funds’ in its

entirety, a closure of detention centres, an end to the Prevent

duty, an end to all deportations, firewalling of data between

policing and public services , increased legal aid support for

migrants, and a scrapping of the Immigration Health Surcharge,

not for some migrants but for all. The right to work for asylumseekers

must be reinstated. At the same time, it is essential that

progressive movements, including trade unions, support routes

to regularisation for people without legal status, including

through work.

33

Migrants’

Rights


Financial System

Paying for the Future

Panic is being sown by some government ministers about how

the pandemic will be paid for, with some even mooting a return

to austerity with cuts in public service spending and wage cuts.

Instead the real discussion that is needed is how we tackle the

shocking levels of inequality that have been exposed and made

worse by the pandemic and how we harness the country’s

resources to invest in securing a growing but sustainable

economy of the future.

A Reset Programme for Tax

Reform of taxation and our financial system is key. On tax, to

address the grotesque levels of inequality in our society and

fund our public services, a basic five point reform programme is

proposed, based upon raising funds from those that have gained

rather than lost from the crisis.

First, the introduction of an excess profits tax on all businesses,

exempting small businesses, taxed over a defined period during

the coronavirus crisis, at a level set either above a defined level

of reasonable profit or relative to previous profits.

Second, the promotion of the principle of unitary taxation,

installing a new tax on multinationals that reflects where

economic activity really takes place and where value is created,

rather than where revenue and profits are booked.

It involves taxing a proportion of a multinational’s global profits

that matches the UK proportion of their sales, labour, and

operations. On a conservative estimate, some £6 billion would

be raised.

Third, the ending of the artificial split between capital gains and

income and taxing them at the same rate, thus raising £14 billion

34

Claim

The Future


in the fifth year of operation. Capital gains are just repackaged

income. The income share of the top 1% has grown twice as

fast as previously thought since 1996–7 when capital gains are

taken into account.

Fourth, raising Income tax on the highest earners by restoring

a 45p additional rate from £80,000 and 50p top rate from

£125,000 would raise some £5.4 billion, taking into account

behavioural response.

And fifth, launching a blitz on tax avoidance including

action such as introducing a public register of trusts, greater

transparency in the Crown Dependencies and Overseas

Territories, replacing the governent’s ineffectual General Anti-

Avoidance Rule, clamping down on enablers of avoidance and

evasion, an increase in targeted audits by HMRC, scrapping

non-dom status, public country-by-country reporting in the UK,

fair taxation of trusts, as well as an Overseas Loan Transparency

Act to close loopholes. To support international tax justice we

must mobilise a mass direct action tax justice movement on the

model of UK Uncut.

A Reset Programme

for Finance

In the finance sector, central bank and government

interventions have gone some way to protect the stock market

with some hedge funds even profiting massively from successful

bets on the economy. Now is the time to secure robust reform

to both regulate and harness finance to resource investment in a

sustainable economy agenda.

Against a backdrop of sustained volatility the timing is right

for the introduction of a small levy applied to a wider limited

select group of trades to stabilise financial trading and provide

additional revenue.

35

Financial

System


Given the failure of existing regulatory structures, including

the Financial Conduct Authority, it is also time to introduce

stronger regulation and greater democratisation of financial

regulation, covering areas like shadow banking, short

selling, hedge funds, asset management, private equity and

greenwashing.

To address the imbalance in bank lending that focuses more on

real estate than benefical growth sectors, we need the Bank of

England to use credit guidance to encourage lendng for green

and productive industries.

The UK also has a vital role to play in the reform of global

finance, where the system of trade and investment agreements

and the role played by the World Bank and the International

Monetary Fund are impeding the ability to take decisive and

effective global action against both Covid and climate change.

This requires an overhaul of trade agreements to withdraw from

existing investor dispute settlement clauses and prevent their use

in future agreements.

The failure of both the World Bank and the IMF to address

effectively the issues of debt relief and regulation to stem

capital outflows from the Global South cries out for major

reform or, failing reform, for the replacement of these bodies

with international institutions better equipped to coordinate

progressive taxation, social support programmes, reparative

justice and environmental action.

36

Claim

The Future


What Next?

Covid has been a huge shock to our society and economic

system. Faced with threats to their health and livelihoods, it’s

inevitable that people experience feelings of vulnerability and

search for greater security.

They also sense the lack of any say or control they have over

decisions being made distantly over their lives and their futures.

There is an understandable desire to get back to normal life.

But we can’t accept a return to a normal that created a society

with its public services so ill prepared for the pandemic and

with families so lacking in financial resilience that they were

immediately threatened with economic hardship.

In crises like this, progressives have a responsibility to act to

protect our communities from the immediate hazards and

hardships they face but also to seize the moment to envisage a

new society, to claim the future.

First, in practice, that means mobilising and supporting the

numerous actions and campaigns that are at the forefront of

confronting the damaging impacts of the virus and its economic

consequences.

This includes:

• backing trade unionists’ campaigning and taking action

against job and wage cutting employers,

• supporting the campaigns for a real living minimum wage

and decent sick pay,

• providing solidarity support to renters fighting evictions,

• joining forces with others to demand the repeal of

“No Recourse to Public Funds” and the closure of

detention centres,

37 What Next?


• backing the model of UK Uncut and launching a new directaction

mass tax justice campaign,

• being part of the “Black Lives Matter” movement,

• and of course, taking what action we can to place the threat

of climate catastrophe central to our demands for change.

An essential element of the current campaigning is the

discussion, development and advocacy of the vision of that new

society we aim to create, and also the concrete policy advances

that will bring it about.

Our vision is a society where everybody’s basic needs are

guaranteed as a right by universal basic services, rewards are

distributed on social not market value, where community is not

denied but promoted and sustainability is at its core.

To make a start on its creation we advocate a reset programme

for our economy entailing four basic guarantees for everyone

of a job, a minimum income, a home, and health treatment

and care when needed, alongside a debt jubilee and justice for

migrants. We take inspiration from past movements that have

secured paradigm change.

In the depths of the Second World War progressives looked

back to the depression of the 1930s and determinedly stated

“Never Again.”

Then they went on to dream, discuss and plan the new society

they eventually successfully built after the war was won. It falls

to us now in the midst of the present crisis to be the ones to

inspire those dreams, hopes and plans of the new society we will

now campaign for and, in due course, bring about.

We are claiming the future.

38

Claim

The Future


Claim the Future has brought together a wide range

of policy experts and campaigners to discuss and

plan what a new future should look like.

By bringing activists and campaigners together

with policy analysts and researchers, we have both

campaigns and policy solutions to promote and

support now.

Core Team

John McDonnell MP, Madeleine Williams, Max Harris,

Andrew Fisher and Ali Milani.

Contributors

Many individuals gave their time and expertise to this project

and we are very grateful. Those who helped inspire and develop

new policy and campaigning ideas include:

Adam Elliott-Cooper, Akram Salhab, Alex Cobham,

Alfie Stirling, Amelia Horgan, Amina Gichinga,

Andrew Cumbers, Andrew Towers, Arun Advani,

Backa Hudson, Caroline Molloy, Cat Hobbs, Cathy Cross,

Chai Patel, Christine Berry, Clare McNeil, Clare Walden,

Dalia Gebrial, Daniele Gabor, Dave Hall, Dave Ward,

Doug Parr, Ellen Clifford, Emma Saunders, Fizza Qureshi,

Gracie Bradley, Gwyneth Longeran, Hilary Wainwright,

Ian Hodson, Ian Lawrence, Jacky Davis, Jason Moyer-Lee,

Jayati Ghosh, Jo Grady, John Hendy, John Lister,

Johnna Montgomery, Josh Berlyne, Keval Bharadia,

Lachlan Stuart, Laurie MacFarlane, Lavinia Steinfort,

Liz Davies, London Renters Union, Mary Robertson,

Maya Goodfellow, Mika Minio-Paluello, Minnie Rahman,

Nadine Enany, Paul Keenlyside, Paul O’Connell, Peter Rice,

Pragna Patel, Prem Sikka, Richard Garside, Rob Knox,

Rory McQueen, Satbir Singh, Satoko Kishimoto,

Seumas Colclaogh, Shami Chakrabarti, Shreya Nanda,

Sian Errington, Stephany Griffith-Jones, Stephen Le Fanu,

Steve Battlemuch, Steve Gillan, Thomas Hanna, Tim Jones,

Tina Ngata and Wendy Savage.


Position Papers

Read more about the solutions needed to reframe our

economy and bring people together to secure change:

Empowering Workers Properly After the Crisis

Social Security

Democratic Public Ownership after the Crisis

Higher Education

Ending Landlordism

Green Investment after the Crisis

Care Guaranteed

Reasserting Migrants’ Rights Through the Pandemic

The Financial System After Coronavirus

Tackling Debt Domestically and Internationally

Fair Taxation after the Crisis

A New Approach to Criminal Justice after the Crisis

Design: Common Knowledge

Illustrations: Ilyanna Kerr

Claim the Future was initiated by

John McDonnell MP, with the support of

the Rosa Luxemburg Stiftung London.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!