Paint Your Town Red

Community Wealth Building is a new kind of economy. It offers a way of addressing the major divides in wealth and opportunity by focusing on local economies. This new book by Matthew Brown and Rhian Jones looks at how the UK’s leading exponent, Preston, took back control of their local economy and how others could do the same. The leading exponent of Community Wealth Building in Scotland is Labour North Ayrshire Council, and the Scottish Government has also announced its intention to develop a country-wide programme.

 At the heart of Community Wealth Building is the belief that ordinary individuals and groups can take ownership, direction, and control of their own resources to improve their own lives. When there is little prospect of economic transformation coming from Westminster, local action is a critical source of hope and change.

 

The book has three parts.

 

Part One looks at the history and thinking behind Community Wealth Building. It makes the political case against austerity economics and the case for a radical alternative. The pandemic has also highlighted the failure of global supply chains and precarious work. Community Wealth Building has its roots in cooperative and other self-governing movements worldwide, and these are explored from the Mondragon cooperative in Spain to the Democracy Collaborative in Cleveland, Ohio. And finally, to Preston and their work with the Centre for Local Economic Strategies (CLES). The book recognises the importance of local leadership, including Jamie Driscoll in North of Tyne and Joe Cullinane in North Ayrshire, who bring in new ideas tailored to local circumstances.

 

Part Two looks at how the ideas were applied in Preston, not as a ‘one-size-fits-all’ blueprint; instead, it shows how the concept has been used in practice. It has taken Preston from being one of the country’s most deprived and disadvantaged, hit by deindustrialisation, austerity and government funding cuts, to seeing significant economic improvement through shifting spending and investment from external suppliers to local producers and businesses. This chapter shows how it was done, bringing on board the anchor institutions in the city and using the power of public procurement, using case studies to illustrate the mechanisms.

 

Part Three looks at how Community Wealth Building is being applied in different ways across the UK. Devolution has been an important driver, as it allows the nations and regions of the UK to take a different approach from the UK Government’s centralism. North Ayrshire is used as a case study to illustrate how the concept has been applied to reflect the needs of that local authority area. Although welcoming the Scottish Government’s interest, Joe Cullinane emphasises the need for it to be accompanied by a commitment to a transformative agenda, to avoid diluting its potential when scaled-up and to get beyond abstract political platitudes on “inclusive growth” or “well-being”.

 

One aspect of Community Wealth Building that can seem challenging is creating alternative financial institutions after the 2008 financial crisis exposed the failings of the current banking model. The book highlights the role of credit unions and how to establish a mutual ‘people’s bank’. I also liked the chapter that urged less consultancy and more “Let’s do something and see what happens”! 

 

The book’s final part is a guide on ‘How to Paint Your Town Red’. It starts with local government and how it can still offer radical and positive change. Then develops how you can use the council to establish progressive procurement and engage with the trade unions and the pension fund. This includes a useful guide to further resources. This book doesn’t duck the challenges in adopting this model. In particular, it isn’t always easy to evaluate the outcomes, and public engagement is never simple. In Scotland, we have tried a wide range of initiatives, but none have fully achieved citizen buy-in, particularly in disadvantaged areas. 

 

It also recognises some of the political challenges in getting councils to think radically. The recent elections show that the electorate has rewarded councils like Preston. These ideas featured in the Scottish Labour manifesto, but community didn’t feature as strongly as it might have done in the campaign. However, It’s encouraging that Labour’s devolved leaders are to meet regularly to develop ideas like Community Wealth Building. Labour’s electoral path to recovery should be built on localism, not centralisation. 

 

This isn’t an academic evaluation of Community Wealth Building. It aims to explain the concept and help those councillors who want to break away from simply administering the council towards painting their own town red.

Where next for Labour?

That's another Scottish Parliament election completed with few indications that any real change will happen as a result. Scottish politics remains in a rut that not even a pandemic could shift. The ‘Thank You’ election worked for all the incumbents across the UK, but that leaves the long term issues to be resolved. 

It is a state of affairs that suits the SNP and the Tories. For the SNP, as the primary representative of the pro-independence vote, it almost guarantees a majority, however poor their record is in government. For the Tories, they can rely on a core of hard-line unionists, and they don't have to worry about having any solutions to Scotland's problems. This is despite the almost daily exposures of cronyism by their UK Party and the dismal campaign performance of their Scottish Leader.

The core unionist block is not the only explanation for the Tory vote. We like to think of Scotland as a beacon of EU Remainerism, but this ignores the one-third of voters who voted Leave. They only have a home in the Tory party, even allowing for the cross over between the two issues. As this slide from John Curtice shows.

Another analysis groups Scottish voters into four constitutional tribes; YesLeave, NoLeave, YesRemain, and NoRemain. While this is a neat academic exercise, anyone who spends time talking to actual voters knows that few people neatly fit into such groups, and, as the authors concede, there is a degree of intensity within each group.

The campaign itself was low key, and as a consequence, few voters shifted their position. It wasn't for lack of trying, but an election held during a pandemic was never going to generate much interest. While the constitution polled very low on voters priorities in this election, it still defines voters more than any other issue. These two slides from John Curtice show that constitutional preference and voting intention has hardened since 2016.

 

The constitution, therefore, remains Scottish Labour’s biggest challenge. The Party has tried uber unionism, a softer middle-ground position, and ignoring the issue altogether. Voters in the first two categories have better homes with the Tories and SNP, and if the latter didn’t shift votes in a pandemic, it is hard to see it ever working. That only leaves getting it off the table, which means a referendum. That is also the democratic case made by the STUC and others. Not immediately, as that would contradict Scottish Labour's election position and most people's priorities - although there are Tories who are encouraging Johnson’s gambling tendency. In any case, the SNP will delay as long as possible because the numbers don’t stack up, and their fundamentalist fringe has moved to Alba. However, a note of caution. A failed second referendum doesn't mean the issue goes away forever. Plus, as Brexit and the 2014 referendum have demonstrated, a referendum's voting impact lasts a long time.

If there is another referendum, it doesn’t have to be on the SNP’s terms. The referendum question should be up for grabs, as well as a third Home Rule option. Gordon Brown's new initiative to make the progressive case for the union is a better bet than Johnson's flag-waving muscular unionism. He also argues that the big issue is not a referendum; it's independence. I would have to concede that the political case for independence has got stronger. However, the economic case is much weaker. SNP ministers look lost when pressed on the currency, borders and the deficit.

Strengthening the political case for the union depends on a credible challenge to the Tories on a UK basis. This took a battering in last week's elections, not helped by the shambles over Angela Rayner's position. Much as I love Labour activists, you have to despair when reading the forums over the weekend. They were full of members who spent much of the past few years attacking the Party because they didn't get the Leader they wanted, attacking members for doing the very same thing to the current Leader. Everyone would do well to listen to Angela Rayner’s call; “United we stand, divided we fall. The past we inherit the future we build. Solidarity.”

For those who argue for leadership change, I would draw an analogy with football clubs and managers. A new leader generates initial energy but doesn't necessarily impact the underlying issues. Anas Sarwar had an excellent campaign with good personal ratings, but even that didn't move the electoral dial. Keir Starmer's 'under new management' might have been an initial branding, but it’s not a strategy. There has been too much effort placed on internal fights and not enough on setting out what Labour is for. People aren’t going to vote for you just because you are a good critic, even when there is plenty to criticise. You've got to have something to say, and you need a positive alternative.

Listening to Keir Starmer today on policy gives me some cause for optimism. Like Anas, he was focusing on what a post-pandemic recovery should look like. How we generate an investment economy with better skills, wages and productivity. A focus on preventative public services and changing the culture that divides our country into young and old, cities and towns, and so much more. I would add the future of work to that list, and I am pleased that is in Angela Rayner's new brief.

Most importantly, he talked about the need to devolve power. Where Labour did well last week in Wales, Greater Manchester, Liverpool city region, and Preston, it was because Labour led with conviction, promoting a positive vision for their local area - showing a Labour alternative to a new brand of northern conservatism. In Scotland, we have local elections next year, an opportunity to demonstrate red water between SNP centralism and Scottish Labour localism. The best Labour-led councils do more than administer local services. In areas like Preston, Salford and North Ayrshire, they have a vision and act to regenerate their communities.

There are no easy solutions to the political environment Labour faces in Scotland and the UK. However, we know internal squabbling doesn't work, and we should learn from the positive examples of what does.

Manifesto 2021 - National Recovery Plan

After more than two years of consultation and engagement, it was good to see the Scottish Labour election manifesto launched today. I have been working part-time managing the process leading up to the publication, so it is personal closure for me.

Drafting a manifesto is not the same as writing a book. That can be a solitary experience, even allowing for the research. A Labour manifesto, unlike some other parties, is not the product of a policy team disappearing into a darkened room to think beautiful thoughts. It is supported by a democratic structure and a series of consultation papers and engagement with members, affiliates and external stakeholders. There were literally hundreds of submissions, meetings and engagement events. The final document is also the product of teamwork with colleagues and elected representatives from all sections of the Scottish Labour Party.

I have been involved in many manifestos over the years, but this has been a very different experience. The pandemic not only meant the process shifted online, but it also impacted the structure and content. Most manifestos are largely done and dusted long before the short campaign starts. However, this year the lessons from the pandemic were an important influence on the final document. It also changed the focus from a parliamentary term to the immediate actions necessary to address the recovery from the pandemic. As one journalist pointed out, ‘recovery’ gets 193 mentions in the manifesto!

That is why the manifesto has two parts. Scottish Labour's National Recovery Plan sets out the immediate actions, and a second part outlines the policies that will address the underlying issues facing Scotland. I am personally agnostic on the constitutional arguments that bedevil Scottish politics. As I am not a nationalist or a unionist, it is just another policy option. What I am not agnostic about is the need to focus on the recovery from the pandemic. When 10,000 people have died, thousands more have lost their job, and 25,000 are ringing the mental health helpline; we need to forget about flags and focus on what really matters.

It is a lengthy document, which I am not going to attempt to summarise. However, it includes many radical policies that I have written extensively about in recent years, including:

• Creating good quality sustainable jobs to avoid a lost generation of young people.
• The concept of Good Work that goes much further than the current Fair Work initiative and will be properly enforced through procurement.
• A real focus on health inequalities, Scotland’s most enduring and deadly problem.
• Investing in a National Care Service with a new deal for the workforce and local democratic accountability.
• Preventative spending in areas like housing, fuel poverty, early years and the environment.
• Tackling climate change, moving from rhetoric to action with a Just Transition.
• Ending the centralism of recent years through the principle of subsidiarity and investing in the social infrastructure that helps build stronger communities.

A few personal interest favourites include supporting working-class history and protecting our battlefields and other historical sites. Sadly, I couldn’t sneak the reintroduction of steam engines past ASLEF!

I recognise that few people read manifestos from cover to cover. The contents and word search mean you can dip into the sections that interest you. However, in my less than objective view, it’s worth a read.

Understanding opinion polls

 I was doing a session on public affairs at a company staff conference last week, and in the Q&A, I was asked about using opinion polls. The questioner referenced a Twitter exchange I had over a poll commissioned by Scotland in the Union and published in the Daily Record. 

In fairness to those responding, you would get a similar reaction from Unionists to a poll published in The National.

I have commissioned many polls over the years from different polling companies. The decision to publish a poll by a newspaper will be influenced by that newspaper's editorial line. So, it's no surprise that the Daily Record chose to run this story about a poll rather than The National. However, they didn't commission the poll, so they had no influence over its results.

So, what about those commissioning the poll. Well, they do have some control over the questions asked. The Scotsman reported on another question commissioned by the same organisation. The question read: “If there was a referendum tomorrow with the question 'should Scotland remain part of the United Kingdom or leave the United Kingdom?', how would you vote?”. 47% said to remain, 37% said leave. In effect, this is the reverse of the 2014 question giving the unionist camp a positive position. This very clearly illustrates the importance of how the question is worded. Asking the 2014 question generally delivers a 50:50 outcome, as John Curtice's analysis shows.

While both questions are legitimate, they are clearly not comparable, and I doubt John Curtice would include it in his poll of polls. Polling companies, in my experience, will allow some leeway over questions, not least because they will publish the question so people can make their own minds up. What they won't allow is an overly leading question, and what they certainly won't allow is any interference with the polling methods and analysis. 

For campaigning purposes polls can be very useful. They can demonstrate public support for your campaign, something always likely to catch the attention of the politicians you are attempting to persuade. It may be tempting to try on a leading question, but its unlikely to be credible. The best advice is to stick to a positive but reasonably balanced series of questions, which give you a range of options when publishing. 

I'll leave polling analysis to the experts. I was at a Fraser of Allander Institute event for University of Strathclyde Alumni as well last week, second rate though we may be according to Andrew Neil!  John Curtice was giving the lecture and emphasised that a single poll is only a snapshot in time. I'll leave you with his summary slide. 

On the Corona Frontline - European perspectives on social care

A new report based on in-depth case studies of social care workers in nine European countries offers a unique perspective on the situation of elderly care workers during the pandemic. I wrote the Scotland case study, and it was fascinating to see how the different care systems across Europe responded to the pressures caused by COVID-19.

Even though the coronavirus pandemic has had different impacts on European countries, one common denominator is that the virus has hit the elderly hard, particularly those caring for older persons. This placed Europe’s care workers on the coronavirus frontline. The overview report, written by Lisa Pelling, head of the Swedish think tank Arena Idé identifies some common themes across Europe, including:

• Shortages of personal protective equipment and lack of clear guidelines for when and how it should be used.
• Pre-existing staff shortages worsened further during the crisis, increasing the already unbearable workload of care workers. 
• Care workers suffered from increased physical and mental pressure, and there are reports of a dramatic increase in the incidence of burnouts, depressions and substance abuse.
• Although they were forced to work harder and more overtime than ever before, elderly care workers were left with precarious working conditions, many on zero-hour contracts and paid by the hour. When they too fell ill, many countries left them without adequate sick pay.
• Trade unions representing elderly care workers have made a decisive difference, both for the workers and older people. 

The report makes several recommendations covering the pandemic and the broader reform of social care. These include basic safety provisions, raising employment standards, and an end to social care underfunding. 

In my case study, I explain how health and social care are organised in Scotland and how they responded to the pandemic. It is interesting to look at how other countries deliver these services, with varying degrees of integration and the balance between public and private sector involvement.

In Scotland, social care was in crisis before the pandemic hit due to an ageing population, staffing shortages, and chronic underfunding. The pandemic has cruelly exposed these problems with excess death rates significantly higher than similar countries in Europe. Half of all deaths from COVID-19 have been in the largely privatised residential care sector, exacerbated by the transfer of patients with the virus or untested from hospitals to care homes early in the pandemic to release NHS capacity. The lack of Personal Protective Equipment, inadequate testing, minimal sick pay, and the use of agency staff have all contributed to this outcome. Care at home services have also been reduced, placing additional pressure on unpaid, informal carers.

Employment standards in social care vary considerably between sectors and employers. Care work is undervalued, not least because of discrimination against the mostly female workforce. Attempts have been made to improve pay in the sector with the requirement to pay the Scottish Living Wage, along with new registration and training standards. However, implementation has been challenging, which leaves a range of poor employment practices that have not been addressed.

The trade union response focussed on providing immediate support to members, negotiating with employers and government, and campaigning for service reform. The pandemic has exacerbated the challenges in organising a disparate workforce, and unions have relied heavily on social media. Recruitment has improved, helped by victories over wages, the provision of Personal Protective Equipment (PPE), sick pay and death benefits. Unions have also campaigned for a reformed social care system, structured around a new National Care Service, which is properly funded, ends the marketisation of care, and values the workers who care for society's most vulnerable members.

I wrote the paper before the Feeley report was published, but I was able to add in a short commentary. The establishment of a National Care Service and workforce reforms have been welcomed by the trade union movement. However, the proposed structures are highly centralised, largely removing local democratic accountability, and does not do enough to rein in the marketisation of services. While the need for a significant increase in funding is recognised, the report makes no recommendations on how this should be financed.

The overview report concludes:

"The pandemic has proven that deficiencies in social care— which trade unions and their members have warned and protested about for many years—such as precarious working conditions, understaffing and underfunding, have been devastating for the ability to protect the most vulnerable during the coronavirus pandemic: the elderly. It is high time that we listened to them."

UK Budget 2021 - Schizophrenic or maybe not

 Depending on who you read in today's UK budget analysis, the Chancellor has either gone full-blown John McDonnell or is returning to austerity. You would think both cannot be right, and in my view, they are not. This is a Tory Chancellor reverting to form.

Let's start with Scotland. There is £1.2bn in Barnett consequentials, which gives some flexibility in the Scottish Government budget for this year, even if it adds to long-term financial planning challenges. An important issue, particularly for those organisations that need greater funding certainty, and will make the traditional arguments over manifesto costing pretty irrelevant. 

The Budget also confirms a trend we have seen in recent years of the UK government funding projects in the devolved administrations directly, to the tune this year of £1.4bn. Union Jacks are to replace the Saltire on a wide range of projects. His speech was replete with UK rhetoric, which implies the Union Directorate in No.10 has been working overtime despite its regular leadership changes! Martin Kettle explores some of the politics behind this in the Guardian this morning. Brian Wilson did an interesting piece concerning the incompetent management of EU funds by the Scottish Government and makes the valid point that; "We need more of a power grab – so that powers reside with the level of government best placed to implement them efficiently and for the purposes intended. Scotland is not all one localism and our politics need to reflect that."

The more serious medium-term concern is the consequences for public services. The short-term spending looks huge, but it hides a plan to return to austerity pretty quickly. For example, nothing was said about the NHS and social care, which will have consequences for restarting the NHS and the pandemic backlog. It also means that the Scottish Government can no longer duck the issue of how they will fund the Feeley Review recommendations. 

Ending the Universal Credit uplift in six months will throw half a million people across the UK into poverty, including 200,000 children. It was also silent on helping 700,000 households who have fallen behind on rent and are now at risk of eviction. Freezing personal allowances will add to this concern. Having said that, personal allowances generally help the better off, so they are not the best way to help the lowest paid. The SNP's Council Tax freeze is regressive for similar reasons. We should instead be looking at other aspects of personal taxation to make it more progressive.

For the economy, the short term boost of pent up spending may get us through to next year, but as the OBR report makes clear, growth is likely to be pretty anaemic after that. The Chancellor seems to think that private investment will provide a boost, supported by his 'super deduction' to Corporation Tax. There is a good reason while this has not been tried before. This type of allowance generally rewards investment decisions that would have happened anyway. The big increase in Corporation Tax looks very Corbynesk, but it is still lower than when the Tories came into power. Corporation Tax is aimed at company profits, so should recoup a share of the profits from firms who have had a 'good' pandemic. However, these are often the very firms that are most adept at dodging tax.

One big health warning over the Budget plans. The real budget lines only apply to the coming financial year. Anything after that is just planned. Experience shows that these are likely to change, even more so in the uncertain times we live in. 

Overall, it seems clear that John McDonnell has not managed to sneak into No.11 and shift shape himself into the Chancellor. This is an austerity budget that will hit the poor hardest. Sunak has returned to form.

Health and Care Workers Covenant

 The pandemic has seen many key workers going far beyond their contract of employment to keep services running. That is particularly the case for health and care workers who have worked incredibly hard, at no small risk to themselves, to prevent the spread of the virus and treat those affected. It is time we recognised this commitment through a Health and Care Workers Covenant and that employers take action to minimise the impact on workers and their families.

Research shows that people who work in jobs like care, which are often called a calling, tend to have higher levels of resilience against the negative effects of overwork and stress and are less likely to experience burnout. However, that resilience can come at a price, both individually and for their friends and families. In a recent article, the authors argue that the families of workers in such roles also suffer massively. Called people can struggle to switch off after work and are less able to manage a balance between work and private life. Divorces and difficult relationships with children are not uncommon, as are exhausted family members. That is bad enough for the individual workers, but families shouldn't pay the price of their loved ones’ self-sacrifice.

Too many employers in the health and care sector have an operating model that depends on these workers going the extra mile. And we as a society also expect these workers to go beyond their contracts, particularly during the pandemic. They have delivered for us in challenging circumstances through governments' faltering actions and often without proper protective equipment and other safety measures. Employers have a duty of care to address this. I have recently been working with one social care organisation who have recognised this and taken a range of actions. But others take this level of commitment for granted.

NHS workers have had to deal with much larger numbers of critically ill patients than normal. Often in a far from an ideal situation, knowing this may lead to poor outcomes for their patients. This is having an impact on their mental health. A recent study of staff working in critical care during the pandemic showed they report more than twice the rate of probable post-traumatic stress disorder (PTSD) found in military veterans who’ve recently experienced combat. The authors of this study argue that there might be some lessons we can learn from PTSD in military veterans to help NHS workers cope during the pandemic. Both during the trauma and in the recovery period.

The link to the military is one made by a number of Socialist Health Association Scotland members who raised the idea of a Health and Care Workers Covenant. This is modelled on the existing Armed Forces Covenant while recognising the important differences between the groups of workers. Not least gender, insecure work and the wider range of employers and unpaid carers. Their proposal, published today, outlines and promotes the concept of a covenant. The elements could include commitments on pay and conditions, training, safety equipment, and occupational health. It should also engage the wider community as some business have already done with staff discounts. It should be taken forward as a partnership involving government, local authorities, trade unions, care providers, carer representatives and others.

It is important to emphasise that a Health and Care Workers Covenant is not a substitute for collective bargaining and strong trade union organisation. This remains the best way to protect and improve the pay and conditions of these workers. The implementation of the Fair Work Convention recommendations, as supported by the Review of Adult Social Care, would be an important starting point. 

We need to pay workers with something more than just gratitude, and a covenant is an additional way of society recognising the sacrifices these workers and their families make for us all.