I think Jeremy Corbyn would be an electoral disaster for the Labour Party from which it would take at least 10, probably 15 and quite possibly 20 years to recover. Too many of his supporters seem either indifferent to electoral success or utterly unaware of what that requires – but they’re right that the rest of us haven’t talked enough about policy. So here are a few of my concerns about his policies.
Jeremy says some things I support but don’t believe the British people will currently buy (a clear defence of higher taxes, though not necessarily his specific ones). There are also some I support and think they might well buy (universal childcare). But much of Corbynism isn’t just unelectable, but ill-thought-through, impractical and downright wrong.
Jeremy is calling for rent controls, with rent levels fixed in relation to earnings. Sounds wonderful: so why doesn’t Shelter buy it?
If you just cap prices in a situation where you haven’t got enough of something and too many people want to buy it, odd things start to happen. In this case, lots more people might sell rather than buy. Granted, we’ve all been saying we want more people to be able to buy homes. But what happens to people who can’t afford a deposit (or the still-uncapped mortgage payments) if the rental stock reduces too rapidly and the total housing supply doesn’t increase fast enough to match?
Will landlords just become more discriminating about people’s characteristics rather than the price they charge (‘No DSS’)? Will they cut back even further on things like repairs? Or will they subdivide properties more and more? More nuanced policies might be a different story (look at the rest of Europe, or the 2015 Labour manifesto), but just legislating a problem of supply and demand out of existence won’t work.
Jeremy is also proposing to extend some kind of ‘right to buy’ to the private sector. First of all, that seems a very odd spending priority for housing: our primary problem is insufficient stock, so why spend however much money on yet more subsidised ownership? (And since people in social housing have lower average incomes than private renters who can afford even a discounted property, isn’t it an odd distributional choice too?)
Second, how on earth would you control the cost? Right to buy may have done great damage, but at least councils actually owned the asset which was being flogged off: here, the state would have to pay the difference to landlords. (I suppose we could theoretically just take people’s property and give it to someone else at an enormous discount. Good luck getting that past the European Court of Human Rights.)
Third, why would you ever rent out a property if you could have it taken off you at any time? Like it or not, plenty of people can’t or don’t want to buy: they need a reliable private rented sector. By all means talk about how to improve it. But treating private rent with such abandon could really harm people who desperately need somewhere to live.
Jeremy has said he wants to leave NATO – our principal defence guarantee. Right now, our ‘if all else fails’ policy is NATO and, via NATO, the US commitment to Europe. We know that Jeremy doesn’t intend to raise defence spending way beyond 2% of GDP – it’s just about the only thing he’d definitely cut. There’s arguably an implicit defence guarantee in the EU treaties, and we have a European Defence Agency to co-operate on procurement, but these are a) pretty vestigial and b) exactly the kinds of things Jeremy won’t want the EU doing (assuming we stay in: see below).
So, given the rapidly rising costs of defence, Corbynism is offering us a radically reduced domestic capability, the abandonment of our key security guarantee and no replacement for either. That is not a defence policy. It’s crossing our fingers and hoping everyone will be nice to us forever.
Jeremy has said he wants to fight for ‘a better Europe’, though we still don’t have a definite answer on how he’ll vote in the EU referendum.
Labour should, apparently, set out its own position on reform negotiations – which is fine as far as it goes. But almost nothing on David Cameron’s shopping list is going to appeal to Jeremy – and I doubt anything on Jeremy’s list will appeal to Cameron. The only real question is how much further Cameron will succeed in taking the EU away from Jeremy’s ideal.
If Jeremy might vote No, what would be his alternative? The European Economic Area (most of the free-market regulations without any say)? A Swiss model (slightly fewer regulations, slightly more say, but not a model the rest of Europe will ever offer)? No deal at all (and new tariffs on half our trade)? What makes him think Britain would discover the joys of radical socialism after voting with UKIP? And how does it help climate change negotiations to weaken one of the better players in said negotiations?
Again, this isn’t a policy. It’s a vague statement that the EU should be different, with no route map to change it.
The list goes on. You can’t talk about a ‘wealth tax on massive incomes’, fail to recognise that wealth and income are different things, conflate annual wealth taxes with one-off windfall taxes and expect to be taken seriously. You cannot talk about £50 billion of uncollected tax as though you can easily collect it in one fell swoop and expect anyone to think your sums add up. You cannot describe ‘not reducing our deficit as quickly’ as ‘funding’ free tuition and expect anyone to trust you not to wreck the public finances.
We’re not the Green Party: we’re supposed to be choosing a future Prime Minister. You cannot ask to govern a country with policies like these – not because they’re unelectable, but because they’re unworkable. Nuneaton wouldn’t buy Jeremy’s pitch: but we shouldn’t even be trying to sell it.