Much has been written in recent weeks about what Manchesterism is or isn’t, and what kind of Prime Minister Andy Burnham would be if elected leader of the Labor Party. At the heart of the discussion is another question: what would the economic project of a Burnham government look like?
Burnham himself has spoken often and in broad terms about ending 40 years of neoliberalism, bringing services back into public ownership and decentralizing power so that mayors and metro councils have much more control over their regions. But he has yet to set out a clear program of how this will be achieved. Into that space have entered a number of intellectuals from the world of politics and policy, trying to get their ideas heard from the man who could be the next occupant of number 10.
One of those thinkers is Mathew Lawrence, founder of Common Wealth and a vocal proponent of “Manchesterism”. In one piece for New statesman, published immediately after the local elections, Lawrence argued: “Manchesterism works. Public control of the essentials reduces the cost of provision by eliminating the privatization premium and reducing coordination frictions, which reduces the fiscal transfers required to do the essentials – progressively deflating the growing pressure on public spending that currently exposes the country to the harsh judgment of the bond market.”
Alongside US-based academic Alex Williams, Lawrence has co-authored an article on Manchesterism, which will be published by the left-wing parliamentary group Mainstream in the coming weeks. His relationship with Burnham’s squad is an informal one. The partnership between the two teams was formed after Burnham referred to Common Wealth’s work on the Privatization Premium in a speech to Center for Cities on Mars. “Rebuilding public provisions is not an alternative to fiscal prudence. It is fiscal prudence,” Burnham said, directly quoting the think tank’s paper.
In recent weeks, Lawrence has begun working closely with Mark McVitie, director of the Labor Growth MPs Group. Earlier this year, McVitie published his paper, “An Honest Day,” which makes the case for a new political-economic solution that lowers the cost of essentials, decentralizes power, reforms taxation to favor work over passive benefits, and rebuilds the state’s capacity to deliver national projects and economic growth. The paper was co-authored by McVitie with Chris Curtis, the parliamentary chairman of the Labor Growth Group, who has backed Wes Streeting. LGG is not necessarily the obvious political home for Burnham’s economic vision. MPs who support Manchesterism come mainly from the soft left of the party, while LGG mainly represents MPs from the moderate wing of Labour, or from the new right. (In a message to members earlier this week, McVitie announced the group would be shutting down, but encouraged “anyone who believes in the group’s potential to put themselves forward” to take over.)
But in their discussions, both Lawrence and McVitie found that their ideas had a common economic basis. In one op-ed for young statesman, published on Tuesday (June 2), McVitie and Lawrence argued that their diagnoses are the same: “Britain pays too much for the basics because the state has lost control of the foundations on which ordinary life and enterprise depend. Housing, energy, water, transport, care and local infrastructure have become too expensive, too fragile and too extractive.”
The pair’s argument for a cross-Labour consensus has been met with praise from within the party. A senior Labor MP and LGG member told me: “For those of us who have been wary of Manchesterism, it makes it look more like a credible government programme.” They added: “If Andy can turn his criticism of Westminster into a political project that allows him to pursue ambitious reform on the supply side, then he may have nailed it.”
Lawrence and McVitie’s suggestions aren’t the only ideas swirling around Burnham. The Tribune group of MPs has also suggested policy ideas aimed at sending Labor in a new direction. Some of these are now included in Burnham’s Makerfield campaign. In one booklet with essays, Tribuna made the case for higher wealth taxes, increased borrowing to finance investment, and more action to ease the cost-of-living crisis. The group’s pamphlet also called on the government to review its fiscal rules (which Burnham has ruled out doing). In the essay submission, Tribune contributors Yuan Yang and Louise Haigh wrote: “Britain’s economic solution is no longer delivering what it once promised… And faith that policy can improve people’s lives has eroded.”
For now, Burnham’s focus is on fighting internal elections. With just over two weeks to go before voters head to the polls, the Mayor of Manchester and his team are firing on all cylinders to get out the Labor vote. But if he is to succeed at Makerfield and land the number 10 again, Burnham will need to outline a coherent program of delivery. When he does, he will have an abundance of visions to choose from.
(Further reading: Knocking on Andy Burnham’s door in Downing Street)
