A referendum on Osbornomics

London's mayoral election will allow politicians to answer the call for policies that put people first

bus fares
Bus fares are likely to be a controversial topic in the London mayoral election, with above-inflation rises in the pipeline. Photograph: Peter Macdiarmid/Getty Images

It may be tempting to see the London mayoral election from the perspective of the Westminster bubble – merely in terms of the fortunes of the political parties nationally. But it is more about starting to create the alternative we need at such a crucial time for millions of people.

The trajectory of British politics may look unclear, but underneath the present arguments we are inevitably on the verge of the biggest changes in decades. Twice in the post-war period British politics was defined around a dominant consensus – the social democratic consensus of 1945; and that of 1979 under the Thatcherites. The upheaval in the global economy means something new will be formed, though not perhaps with full clarity for many years. This new politics can be progressive – based on protecting the mass of the population and government-led investment to produce recovery.

Not as bad as the 1930s, the global economic situation is still worse than anything seen since. All the assumptions about public spending, state intervention, the market, and the banks, have been thrown in the air. A new politics in tune with that change will only arise through the process of many arguments and campaigns. We need to show now that alternatives exist.

Faith in politics is at a low ebb. There is little sense that politicians can make a change for the better. There is a strong sense of injustice about the bankers' actions and how the public are being made to pay through their jobs, services, pay and pensions. The Occupy movement's significance has been in arguing for policies for the 99%, not just the privileged 1%. Politicians too must rise to the call for policies that put people first.

London's government must play its part. The mayoral election this May is the biggest electoral contest this side of the general election. When they vote, those who have lost their jobs, or have seen their student fees soar, can protest at the actions of the Tory-led government. But a campaign of protest votes is not enough.

A global economic crisis worsened by the policies of a Tory-led coalition means the mayor should do everything possible to protect people's quality of life. One in 10 Londoners is now out of work, the second highest level in the country. According to the latest London Purchasing Mangers Index research by Markit, the capital's private sector activity has been declining for the first time in 31 months – in other words, London has slipped back into recession. Osbornomics has failed the capital, too.

The policy of the Conservative mayor stands for the minority. Boris Johnson's official diary shows he meets bankers more than the police. He has a second job paying him £250,000 a year. Rather than resist Osbornomics, he boasts that he has moved further and faster to make cuts. He is a Conservative whose re-election is the number one priority for his party leader.

Labour will make this election about a real alternative. Central to that is fares. The Tories are committed to raising fares above inflation for years to come. To tax so hard in this way when household finances are under such pressure is shameful. So I will introduce an emergency fares package in October that will wipe out this January's rise, with a 7% cut. I will freeze fares throughout 2013 and then ensure they rise overall by no more than inflation after that. On the issue of fares it will be a referendum on the Tories' rising prices.

Likewise, our plans to tackle rip-off agency fees and poor standards in housing, on police cuts and rising crime, and our policies to help young people who are on the frontline of Tory attacks, will put ordinary Londoners first. To begin to forge an alternative and to restore faith in politics we need to show that an election can make a concrete difference to people.


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Comments

330 comments, displaying oldest first

  • This symbol indicates that that person is The Guardian's staffStaff
  • This symbol indicates that that person is a contributorContributor
  • gumpet

    1 January 2012 7:08PM

    Hello Ken

    W

    hen they vote, those who have lost their jobs, or have seen their student fees soar, can protest at the actions of the Tory-led government. But a campaign of protest votes is not enough.

    Just for a bit of balance, did you recommend a campaign of protest votes when labour were overspending?

  • BobShkibold

    1 January 2012 7:11PM

    Ken, if you had bothered to say anything whilst New Labour were killing the UK, then perhaps I would listen to you now.

    As it is, however, I know that all you're interested in is your own wealth and power.

  • Stiffkey

    1 January 2012 7:13PM

    Give it up, Ken. You are nearly as toxic as the other lot.

    Come the next mayoral election a new, more credible, Labour alternative (if such a thing exists) would be welcome.

  • MeandYou

    1 January 2012 7:16PM

    When I hear that Boris Johnson is double figure ahead in the poll, I gringe. What has he done for Londoners since he came power? Bicycle!!

  • finallysomecents

    1 January 2012 7:16PM

    Excellent article.

    If Tories win they will claim they have a mid-term mandate for further cuts. We can already see these aren't working and a new recession seems likely.

    Ken's policies mean that all the burden of ths crisis doesn't fall on ordinary people - and those least able to afford it.

  • MeandYou

    1 January 2012 7:18PM

    Lets hope the Guardian is not going to make a fatal error again this time rooting for the Lib Dem.

  • SoundMoney

    1 January 2012 7:20PM

    You're fighting the last war, Ken. Which is easily done from an armchair.

    It's all very well promising fare cuts, but what are you going to use for money? More business rates? More Council tax? Levied on the people who have run out of money and who are, as you say, 10% unemployed? The well is dry.

    Let's see some concrete proposals about what Labour is willing to cut in an era where, probably permanently, there's less money around to do it all.

    Tax and spend is so last year.

  • CaptainJustice

    1 January 2012 7:20PM

    Ken is right.

    As a student, lied to by the Liberals, and facing another fare hike as I buy my Oyster card tomorrow , with the price of food sky-rocketing , I'm very hacked off.

    Especially as I voted Liberal. ( I know, I know....)

    Not this time.

    Ken has a reputation for putting Londoners at the sharp nasty end of the economy first for help and that's what we need right now.

    We don't need a braying Bullingdon Buffoon or his privileged, little England codswallop waffle spewed at us any more

  • TimMiddleton

    1 January 2012 7:23PM

    Ken

    during the eighties, the GLC - under your leadership - played a leading role in opposing the moral bankruptcy of Thatcherism. Thatcher's response was to banish the GLC. (The typical tory response to losing a debate is to ban the debate.)

    London needs a Mayor who will represent the interest of everyone who lifves and works in the capital rather than just the sqaure mile, and it is crucially important that you return to the role which you have performed so well. We desperately need a focused opposition to the idiocies of the 'coalition's' failed economic policies. Keep the faith!

  • Contributor
    PeterGuillam

    1 January 2012 7:23PM

    Not as bad as the 1930s, the global economic situation is still worse than anything seen since.

    It's pretty clear that it is going to get just as bad, as Christine Lagarde, Head of the IMF has warned. I don't think we want Buffoon Boris anywhere near the levers of power in this situation.

  • CaptainJustice

    1 January 2012 7:25PM

    When I hear that Boris Johnson is double figure ahead in the poll, I gringe. What has he done for Londoners since he came power? Bicycle!!

    You mean of course the Bankers Bike? You can only ride one if you have a bank account that allows direct debits. Lots of us don't. Also check out the map of bike zones. They dont have any past the Elephant and Castle ( not for those sort of people dontcha know)

    Oh Ken . If you are there PLEASE slap a larger Congestion Charge on Chelsea Tractors

  • hollygoeslightly

    1 January 2012 7:26PM

    You read a lot of comments about how bad New Labour are, they were absolutely awful I agree, however they are no longer in government.

    You also read comments that Labour are just as bad as the Tories & they would not be any better at running the country - that is not true on the economic front; all the things that are going wrong with Osborne's economic policies are the ones which were predicted would go wrong before the Tories didn't win the election but formed the governmen anyway.

    Although Ken is not perhaps the best messsenger, his message is right - there is an alternative to Osborneomics.

    Please Londoners hold your noses & vote for Ken despite the previous mistakes of Labour & the current existing ones. They truly are better than the Tories & Scotland, Wales & the north of England will thank you.

  • Contributor
    PeterGuillam

    1 January 2012 7:26PM

    Tax and spend is so last year

    Hmmm. It's becoming pretty clear even to those who were not at first disposed to believe it that it's the only game in town. I think you'll find that 'austerity' is last year's look.

  • Contributor
    teaandchocolate

    1 January 2012 7:28PM

    I feel sorry for Londoners . What a choice. A dinosaur, or a toff muppet?

  • finallysomecents

    1 January 2012 7:33PM

    Didn't you read the article?

    It is Boris Johnson who has a stealth tax on Londoners with inflation-busing fares increaes. Bus fares are up 50% under Johnson. Shameful.

    Ken's policy is to give some of that excessive tax back to Londoners.

  • SoundMoney

    1 January 2012 7:34PM

    I don't think we want Buffoon Boris anywhere near the levers of power in this situation.

    Voting for Ken just because Boris is a crap candidate too does not really amount to much of a choice for Londoners, does it?

  • Contributor
    PeterGuillam

    1 January 2012 7:35PM

    I agree. What has happened is that the Tories have found the perfect cover to complete under the guise of 'necessity' what they have overtly wanted to do since 1979 and covertly wanted to do since 1945. They didn't dare say that at the last election (especially as regards the NHS) because they knew it would lose them the election,and this, especially combined with the fact that they did not win that election, means that what is happening has no democratic legitmacy as well as being economically illiterate.

  • Raffiruse

    1 January 2012 7:36PM

    Labour spent less than Thatcher as a proportion of GDP.

    The deficit arose because they taxed MUCH less than Thatcher

    Labour did much worse things to Britain's economy than running up a large public deficit.

  • Contributor
    PeterGuillam

    1 January 2012 7:39PM

    Voting for Ken just because Boris is a crap candidate too does not really amount to much of a choice for Londoners, does it?

    Well, that's democracy UK-style isn't it? Maybe in the end what any democratic system comes down to for many/most voters.

  • SoundMoney

    1 January 2012 7:39PM

    Didn't you read the article?

    It is Boris Johnson who has a stealth tax on Londoners with inflation-busing fares increaes. Bus fares are up 50% under Johnson.

    Yup. And if you reverse the fare increases (which incidentally tend not to hit the unemployed so hard), you have to find the money somewhere else. Or spend less. One way or another the budget has to balance.

    Boris has hit fares hard to deliver on an ideological promise to minimise council tax rises. Which if I recall right was part of his election platform, so we've got what it says on the tin.

    Ken is saying he'll start cutting fares without even mentioning the inevitability of finding that money somewhere else, e.g. council tax, or announcing what he's planning to cut to fund his generosity.

    Asking him for more details is a fair challenge.

  • devilwithaview

    1 January 2012 7:43PM

    You could always help sway the vote by getting the women of London on your side, just ask your good pal the Islamic scholar Yusuf al-Qaradawi. that very same scholar that supports for "female genital mutilation, wife-beating, the execution of homosexuals in Islamic states, the destruction of the Jewish people, the use of suicide bombs against innocent civilians and the blaming of rape victims who do not dress with sufficient modesty. You claim that Qaradawi's is "one of the most authoritative Muslim scholars in the world today" who "has done most to combat socially regressive interpretations of Islam on issues like women's rights and relations with other religions.

    If this is the type of person you hold in high esteem, give me Boris anyday.

  • finallysomecents

    1 January 2012 7:48PM

    Keep up.

    Everyone in London who follows this knows that the fares cut comes from the surplus at TfL, which was a massive surplus of £729mn last year and is £205mn in the first 6 months of this year.

    http://www.mayorwatch.co.uk/livingstone-promises-to-reverse-latest-fares-increase/201117743

    This is where the fares cut comes from, the money idling in TfL's bank account.

  • Manningtreeimp

    1 January 2012 7:53PM

    I wouldn't vote for Peter because he's not standing and I don't live in London....but if he was standing and I did live in London I would give it serious consideration...as long as there wasn't a cute Triceratops in the running of course...

  • SchadenfreudeHaHaHa

    1 January 2012 8:02PM

    Talk about tired old politicians and clapped-out policies....

    If Ken is the solution, methinks Londoners prefer the problem.

  • CongestionCharge

    1 January 2012 8:08PM

    Vote Ken for lower bus fares!

    Not very inspiring but Ken might have some success if he could stick with it. Unfortunately, if elected he won't be able to resist positioning himself as the leader of the opposition, and I don't think Londoners are inclined to give him that platform.

  • stoneshepherd

    1 January 2012 8:13PM

    Unfortunately, if elected he won't be able to resist positioning himself as the leader of the opposition, and I don't think Londoners are inclined to give him that platform.

    Well, somebody ought to do it since Milliband seems to have abrogated the position.

  • johnchisum

    1 January 2012 8:13PM

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  • WurzelGummidge

    1 January 2012 8:14PM

    Faith in politics is at a low ebb.

    Thanks to cynical career politicians like Ken Livingstone who now constantly whine about bankers and the financial system yet when they were in power let it all get out of control because they funded their social projects with the proceeds of banking.

  • JamesDavid

    1 January 2012 8:18PM

    Ken, you still don't get it, do you? You're yesterday's man. I particularly care why, but I suspect the voters were sick of you mincing around with tin-pot dictators and mullahs who still live in the Dark Ages. But now you have to stop living in the past. Take up gardening or something. Just stop polluting our public life with these hackneyed, desperate political broadcasts.

  • stoneshepherd

    1 January 2012 8:19PM

    a "referendum" on national economic policy, which he hasn't noticed is not a contest the Labour party are winning at the moment.

    And you haven't noticed that nobody seems to be winning anything on the economic front at the moment - and if you believe that the current policy will ameliorate the situation you are living in cloud-cuckoo land.

  • InspectorCallahan

    1 January 2012 8:25PM

    Then why are TFL claiming this alleged surplus doesn't exist?

    http://blogs.telegraph.co.uk/news/andrewgilligan/100107603/ken-livingstone%E2%80%99s-fares-cut-could-it-backfire/

    Ken now claims he can pay for his new bout of largesse through an alleged £728 million “operating surplus” in TfL’s budget. The existence of this money is flatly denied by TfL’s deputy chairman, Daniel Moylan. “He got his figure by comparing the current business plan with one set before the government came in and took £2 billion away from us [under the spending cuts],” Moylan says.

    “The £728 million does not exist. It’s not there as a cash sum. It was used to offset part of our £2 billion reduction in grant. There is no fairy money under a toadstool – Ken is kippered on this. He hasn’t done his research properly.”

  • taurusdrycider

    1 January 2012 8:30PM

    wishy washy ,gobbledegook,poppycock,bendy bus,panto season still alive and well in london,what is the point of boris johnson?

  • OrigamiPenguin

    1 January 2012 8:31PM

    I'm sure a lot of people would vote for Boris, the lovable buffoon, because it would be a bit of a laugh. But another Johnson victory would be no laughing matter. He's been coasting on the back of all of the groundwork laid by Livingstone, and sooner or later he's going to have to start actually doing something. I just don't think Boris Johnson is competent.

  • Corrigenda

    1 January 2012 8:40PM

    This is a strangely biassed article. It says:

    >When they vote, those who have lost their jobs, or have seen their student fees soar, can protest at the actions of the Tory-led government. But a campaign of protest votes is not enough.<

    Why should any thinking person protest at the Coalition because of rising student fees or an increase in lost jobs? These measures have only been as necessary as they are as a result of the incompetence of the last Labour government who had every chance to put controls in place but failed to do so and rushed headlong into ever more tax and spend. Those who really can think - and I count Guardian readers as very much in the vanguard of such a group - will readily know that they should never ever vote Labour again.

  • stoneshepherd

    1 January 2012 8:46PM

    I just don't think Boris Johnson is competent.

    Just another self-publicist with an over-inflated sense of entitlement.

    When the clowning around has to stop there is nothing there - rather like Cameron who, when his faux sincerity is stripped away, contributes nothing of value to the national debate over where UK plc should go next.

  • compayEE

    1 January 2012 8:46PM

    I detest ken livingston. Socialist policies of attacking morality and of course multiculturalism have destroyed this counyltry.

    Ken is very much the archbishop of canterbuty's man. This country is so unpleasant because of them.

    Really? Your comment is bordering on parody (it proabably is mockery). It is otherwise loaded with bad spelling and typos to such an extent that it strikes me as embarassing...
    If you really detest Ken then you'd better start by detesting your lack of basic skills that renders you unfit to lash out at Ken in the first place...

  • VSLVSL

    1 January 2012 8:46PM

    Ken,

    It's time to nail the lie.

    Osborne's running up more and more debts whilst cutting public services.

    Osborne can't balance the books and never will with slash and burn.

    By all means make the election about the economy but let's not let them get away with the lies that we can't afford a health service.

  • cinematizer

    1 January 2012 8:51PM

    Ken I decided to vote for you before you even announced you candidacy. I was mad at you because of the Olympics and I voted for Boris out of spite, but all is forgiven. Come back!

  • Corrigenda

    1 January 2012 8:51PM

    We might wish that there could be a change of mayor but remember that Boris has achieved much of what Ken could not. Boris's achievements even only to the beginning of 2011 are impressive enough. It's a Tory summary but just look at:

    http://conservativehome.blogs.com/localgovernment/2010/01/100-achievements-of-boris-johnson-as-mayor-of-london.html

    All of these are correct even though some things may still need further work. He managed to curtail Ken's massive waste, still do what he's done and still give back some to the exchequer. There never was such an impressive list of Ken's 'achievements'. We lampoon Boris as somehow ineffective at our peril. It may pain us to admit it but he has actually turned out to be a good mayor. I think we shall have him a little longer and, (dare I say it?) he would be better than Ken in these difficult times.

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