Is Labour changing the country without spending money?
The government is making good progress on 11 out of 20 ideas for changing Britain with little or no public spending
Back in Autumn 2023 I proposed 20 ideas for how a future Labour government could change the country without spending money. The list formed part of the Fabian Society’s pre-election manifesto Plans for Power.
It was included because we knew that Labour politicians would face huge fiscal pressures in office and would need ways to make progress without spending more. The financial outlook is even worse now than many feared back then. So it feels like a good moment to take stock of that list.
Labour won’t be able to achieve many of its ambitions that require big spending for some time to come. But it is different for reforms that don’t require money, as I said in Plans for Power:
“Reducing emissions, increasing earnings, helping people to lead healthy lives and making housing more affordable are all things that rely on government regulation, coordination and direction much more than public spending. On these matters, there are powerful political and behavioural barriers that stand in the way of change: vested interests, a hostile media and attachments to old ways. But the public finances are not the constraint. There is also low-hanging fruit to be grasped because previous Conservative inaction has often arisen from ideology and division. An incoming Labour administration can start here. While the scope for solving problems with public spending is highly constrained, the possibilities for change via regulation and public leadership are in principle boundless.”
So how has Labour fared against this list of 20? The verdict is of course subjective - but here I offer an impressionistic rating of Red, Amber or Green on the basis of the party’s first half year in power. A green rating does not mean ‘mission accomplished’ but reflects commendable progress in just a handful of months.
On my reckoning ministers have made a pretty good start at changing the country without money. There is a good story to tell with respect to 11 out of 20 of the ideas… but more to do on the other nine.
GREEN = 11/20
2. Bus regulation and local franchising
The Bus Services Bill and changes to guidance create a straightforward process that allows areas to introduce bus franchising. In the future ministers should explore mandating franchise models.
8. Devolution in England and more powers for Scotland and Wales
The English devolution white paper set out plans for every part of England to set up strategic authorities that will have significant powers. No major announcements have been made regarding devolution to Scotland or Wales.
9. Ending restrictions to onshore wind and solar power
The government lifted the de facto ban on onshore wind and solar on farms and is reforming planning rules to accelerate developments.
12. National living wage increases
Ministers have said the national living wage must rise each year to match two thirds of earnings or track the rising cost of living (whichever is higher). They also want to end the lower rate for 18 to 20 year-olds
13. Planning and land compensation reform
Planning reform is a top priority for ministers. Planning policy has already changed and a major planning and infrastructure bill will include sweeping changes to planning and compensation rules.
14. Public health regulation targeting obesity, tobacco and alcohol
The Tobacco and Vapes Bill places restrictions on vapes and outdoor smoking and commits to outlawing smoking for future generations. Major restrictions are also planned for junk food advertising.
15. Restored trade union rights and expanded collective bargaining
The Employment Rights Bill repeals anti-union legislation, permits electronic balloting and introduces sectoral collective bargaining in adult social care.
16. School curriculum and assessment reform
Ministers have commissioned an independent curriculum and assessment review and are legislating to require academies to follow the national curriculum.
17. Sentencing and rehabilitation reform
The prison capacity crisis and the appointment of Edward Timpson as prisons minister have led to more progress than might have been expected prior to the election, with an independent sentencing review underway.
18. Tenant rights and protections
Major reforms will be introduced through the Renters’ Rights Bill.
19. Unlocking private sector patient capital
The government has established the National Wealth Fund to de-risk and crowd-in private investment and is reforming pension rules to support investment in the UK.
AMBER - 3/20
3. Clearing the asylum backlog and enabling more applicants to work
The government is committed to clearing the asylum backlog and has restarted the processing of applications. But numbers have not yet fallen and the government has no plans to allow more asylum seekers to work.
6. Decent sick pay paid for by employers
The employment rights bill introduces compulsory sick pay for the first three days of absence. But there are not yet signs of ministers increasing the shockingly low level of minimum sick pay.
20. Zero-carbon requirement for new buildings
Ministers are continuing with the previous government’s Future Homes Standard which is designed to make new homes ‘zero carbon ready’. No announcements have been made on the final timing or content, which some say does not go far enough.
RED = 6/20
1. Automatic social tariffs for energy and broadband
No major announcements on reform of social tariffs.
4. Closer economic relationship with the European Union
Notwithstanding Keir Starmer’s recent summit with EU leaders the government has nothing to show after 6 months. Ministers continue to rule out membership of the customs union and and have sounded sceptical about a youth mobility scheme, which is a key priority for EU partners.
5. Consumer protection and competition reforms
Robust regulation helps new entrants challenge incumbents so should be pro-growth as well as pro-consumer. But the chancellor has asked regulators to dial-back their engagement ostensibly to promote growth.
7. Democratic second chamber
The government is legislating to remove hereditary peers and is considering how to reduce the size of the chamber. But it has said nothing about introducing a democratic element to the Lords.
10. Expanding workplace pension contributions and eligibility
Ministers launched a two-stage pensions review, with pension adequacy set to be included in stage two. But this second stage has been delayed indefinitely following employer backlash against National Insurance increases. Legislation to increase contributions passed by the last government has not been implemented.
11. Low emission zones, congestion schemes and road pricing
No progress has been made. A low emission zone in Greater Manchester will not proceed. Road pricing needs to be considered during this parliament to replace fuel duty as more people drive EVs.