Former adviser to Gordon Brown says business shouldn’t fear big Labour majority

Blog
25 Jun 2024, 09:42

By Lord Walney, Rud Pedersen Senior Adviser

As they get further and further behind in the polls, Conservatives are warning voters of the danger of a Labour ‘super-majority’ – a landslide at the general election that could dwarf even Tony Blair’s famous victory in 1997.

It is unsurprising they are focusing on this given the size of the electoral hole they are in. But many of us have long been saying the opposite to Conservative-leaning friends: that if you think Labour is going to win this election, you should hope that they win big.

The reason that a sizeable Labour majority may well be better for the country than a narrow win is that it will avoid Keir Starmer having to rely for support in parliament on the relatively small, yet significant, band of hard-left MPs left over from the Corbyn era. While this deeply disgruntled caucus of Campaign Group MPs is likely to be diminished after some ruthless internal party management from the team around Sir Keir, the group would still be large enough to hold the balance of power if Labour wins only a narrow majority on 4 July. That would be a recipe for more instability, and potentially ill-advised concessions to the left on key areas of economic policy. It would be less than the country deserves after being subjected to years of turmoil and poor governance by endemic Tory psychodrama.

Now, it is fair to say that no one envisaged the scale of Labour dominance now being forecast as the Conservatives sink even further behind in the polls as election day nears. We should indeed be concerned about the prospect of the Conservative Party being replaced as the main voice of the British right by the populism of Nigel Farage’s Reform UK.

Even so, I do not think the caricature of a one-party socialist state ring true at all.

Businesses understandably have concerns about the way parts of Labour’s manifesto could be implemented. But far from tying the government and the country to its union paymasters, or however the Tories and media supporters seek to frame it, a big majority will better enable the incoming Labour team to raise their eyes from the day to day and focus on the change needed to unlock for economic success.

The task is huge. Labour’s mission to return the country to sustained economic growth after years of stagnation may define Britain’s place in the world for decades to come. It will certainly define perceptions of the government Keir is set to lead. That is a good thing. The centrality of the growth mission to Labour’s election platform means that – no matter what the size of its majority - it will need to be ruthlessly focused on measures that create jobs and prosperity and increase our competitiveness. And reject well-meaning initiatives that hold back growth even in areas that the traditional Labour movement holds close to its heart.

It is my hope that a bigger majority will give more space for radical, long-term reform and a more receptive environment for ministers to develop their partnership with the progressive, purpose-led businesses we are proud to work with.

It will certainly mean a more powerful injection of fresh political talent to drive our politics forward. Keir wants to convince everyone he has changed the Labour party – that will be embodied in the renewed Parliamentary Labour Party packing the green benches after the general election. Thanks to the determination of Keir’s team to encourage the adoption of good centre-ground candidates across the country, Labour victories in unexpected areas will by and large mean opportunities for new MPs with welcome levels of expertise and drive to change their communities.

That is exactly what Labour needs to give it a chance of renewing the country successfully.

No-one in business or politics is naïve enough to think there will be a ready-made launchpad for immediate economic success on Friday 5 July, no matter what the result. This is going to be a difficult and sometimes rocky ride. But for the first time in a long time, we may have the political conditions for Britain to turn a corner.

*This article was first published by Fit for Purpose.