Another future is possible (Jack Taylor/Getty Images)

It was supposed to be Keir Starmer’s big gambit: an opportunity to make the political weather, put forward an election-winning economic policy, and slap down “big beast” internal critics. Instead, his long-awaited plan for dealing with the cost-of-living crisis is unlikely to survive the month.
Starmer’s grand idea is to freeze the energy price cap at its current rate of £1,971, preventing further rises to an estimated £3,500 in October and over £4,200 in January. This will, he says, save households around £1,000. Now, when calculated on the back of a cigarette packet, this all seems to add up. The only problem is that households which use the most energy will be the biggest winners — and these tend to be richer households, with larger homes to heat.
The proposal, then, is classic Starmer: another sweeping gesture in a policy area that should be Labour’s for the taking. Consider the political context. The economy is flailing, the Conservative Party has moved on from an unedifying defenestration to an even more unedifying leadership election, and Corbyn and his outriders have largely been silenced. And yet, Labour’s lead in the polls has fallen from 11% in the week after Johnson’s resignation to around 5% since the start of August. On current boundaries, it leaves Labour 18 seats short of a majority.
The blame for this can be laid squarely at the feet of Keir Starmer and his economic timidity. As has been frequently noted, the British public sits largely to the Left on economic affairs and to the Right on social affairs (or on the authoritarian side of the authoritarian-libertarian divide). Research by Paula Surridge suggests the average position of 2019 Conservative, Labour, Liberal Democrat and Brexit Party voters can all be found in a Left-authoritarian quadrant. Even more encouraging for proponents of Left-wing economics is YouGov’s finding that, among people who consider themselves Right-wing, 57% say the government should have a significant or dominant role in managing the economy, while 48% think the minimum wage is too low. Starmer should be pushing against an open door.
The Conservatives are clearly aware of this. It was, after all, George Osborne who introduced the “national living wage”, Theresa May who introduced the energy cap, and Boris Johnson who centred his premiership on levelling up. But we have seen no similar recognition from Starmer. Rather, despite standing on a largely continuity-Corbyn platform (in policy terms, at least) in the 2020 Labour leadership contest, he has tried to shift to the Right economically. “The role of government is to be a partner to private enterprise, not stifle it,” he wrote last year in a 14,000-word pamphlet which sounded more like a TaxPayers’ Alliance press release than Marx.
It also demonstrated that Starmer has learned the wrong lesson from Labour’s 2019 general election defeat. Corbyn’s personal unpopularity was an obvious cause of Labour’s drubbing, but his economic policies were popular — until people realised they were linked to him, or the Labour Party. (The same happened with Conservative policies under William Hague.) For all his flaws, Tony Blair was right to warn that progressivism was an electoral vote-loser; it’s that part of the Corbynite agenda Starmer needs to ditch, not the economics.
In this, Starmer shares the root of his faults with Rishi Sunak: both had been MPs for less than five years when they were put forward as party leaders; their promotions were rapid. And both are now floundering because they have no instinct for where their respective party bases sit.
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