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by Torsten Bell - Labor must move quickly to fix things fast.

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July 6, 2024

Do you favor mission-driven government or radical incrementalism, evangelical academia or policy wonks? Economist Mariana Mazzucato’s concept for reconceptualising government to focus on long-term goals served as inspiration for Keir Starmer’s five “missions”. Torsten Bell, former executive director of Resolution Foundation and new MP for Swansea West is offering more pragmatic advice in his book released just before election day. In it he proposes Labour Treasury solutions as an effective approach. However, the new government must decide in both word and action which approach best convinces. Bell’s case for radical incrementalism rests upon three pillars. First and foremost is that Britain is in dire straits: our meagre levels of productivity growth resulting in stagnant real wages and living standards growth as well as persistently high inequality and rising levels of severe deprivation have left us in perilous shape. As noted by him, this should put to bed any idea that Britain faces an “offset between growth and equality: being “more normal” means becoming both prosperous and equitable”. “Secondly, to return to “normality” requires both quick and modest policy shifts as well as long-term approaches.” Great Britain? is full of policy details – from lifting the two-child benefit cap and making life better for tens of thousands of disadvantaged kids to increasing our low levels of both private and public investment – that would transform their lives to increasing our miserable levels both private and public investment levels. Many of these strategies – reforming the planning system to enable us to build more houses, decreasing exploitation of lower paid and insecure workers and changing tax policy so as to tax richer individuals more and workers less – have already been explored extensively by economists and thinktanks and should therefore not present any great surprises for decision-making. Many of us would much prefer this vision over Labour’s incoherent manifesto. Thirdly – and perhaps this is its key distinction from Labor – these changes can and must be implemented quickly. Substantial change requires incremental steps taken over time; no comprehensive plan or detailed roadmap needed at the outset – we simply cannot afford to wait! Bell makes his case for immediate, tangible change on both political and philosophical grounds: “Early victories will help rebuild faith and lift us out of stagnation… long term investment means higher growth; in the short run though it means potholes being filled instead of serving as daily reminders that America remains stagnant. “The subtext is evident. “Missions” are admirable; yet as anyone familiar with an interdepartmental strategy knows, their implementation can sometimes result in spending one year organizing working groups, workshops, consultations, evidence papers and ministerial speeches before publishing a massive policy document that no one reads after having set themselves off on another missionary endeavor. At the same time, though, Treasury won’t put forward enough cash, and public distrust of politicians continues to soar. I helped establish the Child Poverty Unit of which Labour has pointed as an example of mission-driven government at work. Bell makes an important point: long-term, ambitious goals like ending child poverty can only succeed by government putting its political capital and our money behind these promises; otherwise they will fall flat on their face. That holds true across Labour’s agenda – from net zero carbon emission targets and NHS reform, to “expanding opportunity”. Bell rightly criticises Labour for leaving in place policies such as leaving in place its two-child limit, not improving pay and conditions in social care, or failing to address unfair zero-hour contracts that undermine its credibility from day one. Labor recognizes this with their six “first steps”, though their goals range from specific quantifiable goals (more teachers/NHS appointments) through generic politician speak (economic stability) all the way down to bureaucratic deckchair shifting (replacing “Illegal Migration Operation Command” with “Border Security Command). Bell makes an eloquent case that Labour must move further and faster to bring tangible improvement into people’s lives. Problems will not disappear overnight – yet as we invest in ourselves and in Britain’s future, the clouds that hang overhead may dissipate more quickly than anticipated.” Keir Starmer should take note. For further reading: Torsten Bell’s Great Britain?: How We Reclaim Our Future is published by Bodley Head (PS20). To support Guardian and Observer journalists alike by purchasing one at guardianbookshop.com.

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