Progressive politics in an era of ‘less’ means refocusing the regulatory levers of the state in order to deliver outcomes that contribute towards social democratic goals of greater equality and social justice. An efficient state can still be a muscular state – using the power of regulation to reshape society and the economy after the deepest financial crisis for 80 years. There can be no return to the bad old ways of the past, while the work of modernising and renewing our society for new challenges goes on. The aim of this shadow Queen’s speech is to create a wider base of asset ownership, to improve the supply of social housing, to tackle financial market excess, to give everyone a stake in the economy, and to ensure that men and women have greater choice in balancing the demands of caring and working.
1. Community reinvestment bill
One per cent of the operating turnover of the financial sector should be levied into a Community Reinvestment Fund in order to capitalise the poorest communities in our country, providing resources for a step change in the availability of credit unions and mutual financial providers as an alternative to the payday loan sharks that blight too many communities. Retail banks that fail to extend services to economically disadvantaged areas will face tough penalties under this new financial fairness regime.
2. ‘Too big to fail’ bill
Financial institutions that are ‘too big to fail’ will put the entire British economy at risk. The financial crisis demonstrated the damage that risky and irresponsible lending practices can do to people’s homes and jobs. What is needed are a combination of measures to break up over-mighty financial interests: capital surcharges, living wills for banks, ringfencing ‘utility’ activities from risky investment practices, a more robust financial market infrastructure, alongside greater scrutiny and supervision of systemically important financial institutions.
3. Regulatory action bill
All regulators operating in the UK will be required to pay due regard to the needs of vulnerable consumers in overseeing the activities of markets, and in probing instances of exploitation and malpractice. They will have powers requiring utilities companies to cross-subsidise universal provision and fair pricing. The regulatory agencies overseeing key utilities such as water, electricity, gas and telecommunications will be given additional powers to veto unjustified price rises, to tackle predatory practices, and to ensure efficiency in how utilities are managed to reduce waste.
4. Shared parental leave bill
Mothers and fathers will both be entitled to nine months of paid parental leave during the first two years of their newborn baby’s life. Parents will have the option to spread their leave entitlement and work flexibly, or take it as a single block. The guaranteed right of women to paid time off in the first months of their babies life will be protected. The aim is to encourage the culture of shared parenting, while seeking to reduce the employment penalty that women with children currently experience in the UK labour market. More will be done to tackle the unjustified pay discrimination that women, disabled people and BME groups still face in employment and in accessing goods, facilities and services, if necessary reviewing the powers available in the 2010 Equality Act.
5. Mutual home ownership bill
To encourage the growth of mutual and cooperative housebuilding across Britain, a new category of ‘cooperative housing tenure’ will be enshrined in law. Current general landlord and tenant law remains too restrictive. The aim is to encourage more cooperative housebuilding, while giving leaseholders and tenants in cooperative housing associations greater control over the management of their properties. This bill will both enable tenants to build up a financial stake in their property, widening the base of asset ownership without putting the stability of the economy at risk, while also increasing the supply of social housing in the UK.
—————————————————————————————
Alternative Queen’s Speeches on Progress
Progress editorial: The first Queen’s speech in two years is imminent. Labour should seize on the event to set out its own stall
We asked Labour people to devise what would be in Labour’s Alternative Queen’s Speech to show how Britain would be better under Labour
It should be fiscal responsibility first in Labour’s Alternative Queen’s Speech argues Jacqui Smith
The UK needs a radical tax overhaul. Fabian general secretary Andrew Harrop sets out what this would involve
Strengthening sure start comes first writes David Talbot
Richard Darlington, Tony Dolphin and Graeme Cooke from IPPR present their Alternative Queen’s Speech for jobs and growth
We need an Alternative Queen’s Speech for community empowerment argues Florence Nosegbe
Patrick Diamond wants Labour to create an efficient, muscular state through a ‘too big to fail’ bill and a ‘mutual home-ownership bill’
Jeremy Miles would introduce a ‘transparency in equal pay bill’ and introduce compulsory so that all politicians have to listen to all sections of society
In Steve Van Riel‘s Alternative Queen’s Speech business should be required to publish the salary of its lowest-paid worker, and the OBR should be mandated to work with the opposition on costings
LabourList editor Mark Ferguson would put an end to Crown dependency tax havens, and finally introduce a National Care Service
Former Labour party general secretary Peter Watt would introduce a safety in care bill for all adults in care, and a rule to remove a set number of pieces of legislation from the statute book every year
We must overhaul our taxation system and introduce regional transport authorities argues Gus Baker
Anthony Parker presents his poetic contribution to the series
—————————————————————————————
Patrick Diamond is a senior research fellow at Policy Network and a councillor in the London borough of Southwark
—————————————————————————————