National Recovery Council - a deadly mistake.

The (London) Guardian newspaper of May19 put out the latest scheme developed by the Trades Union Congress with the support of the leadership of a number of large unions. The TUC proposed a National Recovery Council. 

This was the substance of the article. 

The leader of the Trades Union Congress has declared “the state is back” as the UK’s biggest unions urged the government to form a national recovery council in the wake of the coronavirus pandemic.

The TUC, which represents 48 unions in England and Wales, has called in a report for the establishment of the body, which it argues would bring together government, unions and employers to create a greener and fairer economy.

In an interview with the Guardian, the TUC general secretary said there could be no return to business as usual after the pandemic.

“We’ve got to get that safety net strung again, we’ve got to invest in our public services, which may have to build resilience for a long time to come,” Frances O’Grady said. “Unions are back … but the state is back too.”

Launching the report alongside the shadow chancellor, Anneliese Dodds, on Wednesday, the TUC is calling for a return of the unity shown in the years after the second world war, arguing that the post-conflict decade of social investment created growth of 3.3%, but a decade of austerity after the banking crash resulted in growth of 1.9%.

“This can’t be about working people paying the price again,” said O’Grady. “I think there is a real sense that this has got to be a people’s effort. It can’t just be left to employers or politicians, we’ve got to step up too.”


The TUC, which represents 5.5 million members, is also calling for an overhaul of the UK’s business model – which it argues is based on low-paid, insecure jobs and the exclusion of workers from decision-making. It has called for an increase in the minimum wage to £10 an hour, a public sector pay rise, a ban on zero-hours contracts and a job guarantee scheme – particularly for young people facing a bleak future.

In the far-reaching document the TUC argues that systems for trade and finance damage the interests of poorer countries and drive unfair pay, and calls for changes to international rules and institutions, as well as a plan to tackle discrimination faced by black and minority ethnic people, women and disabled people.

It praises the government’s “constructive” work with unions on the creation of the job retention scheme, adding that the ability of local authorities to take homeless people off the street, the emergence of mutual support groups and the adaptability of the workforce, as well as government interventions, “show the speed and scale of what can be done when it is necessary”. It adds that the same commitment and urgency must be applied to tackling the climate emergency.

“We’ve run out of excuses about creating a carbon-free economy,” said O’Grady.

Industry bailouts and any state investment in the next few months must come with an “Olympics-style plan” for jobs and a minimum requirement for the use of UK products and services to rebuild UK manufacturing, says the report. With unemployment levels set to increase dramatically, it argues jobless people should be given a “funded individual learning account” to learn new skills, with the promise of a job at the end of training.


“We’ve got to build back brick by brick, but it has to be fair, decent rewards, fair taxes – all of that has got to be back on the agenda,” said O’Grady. “I think the centre of gravity has shifted and people are remembering why equality matters.”

WiredGov, a well known internet magazine, followed up by responding with a lead article written by a professor from the Institute of Economic Affairs (IEA).

IEA Editorial and Research Fellow Professor Len Shackleton responded to the TUC’s report published yesterday, A Better Recovery, which calls for the government to form a National Recovery Council

“The TUC’s plan for ‘a better recovery’ would almost guarantee we would have no recovery at all.

“Until Covid-19 hit, the UK’s labour market was at its most successful in decades with very high levels of employment and the lowest unemployment rate for 45 years. This was due in large measure to its flexibility compared to the scelerotic continental European economies. To abandon that approach would be foolish in the extreme.

“A higher minimum wage for all workers, pay increases for the public sector, a ban on zero hours contracts, higher benefits and other goodies proposed by the TUC are fantasies in the current climate and would worsen unemployment.

“The proposal for a tripartite National Recovery Council would be a pointless talking shop. It resembles the National Economic Development Council of the 1960s, a decade of industrial strife which too many unionists look on with fondness. No government can provide a ‘job guarantee’ of the sort the TUC report calls for. 

“These measures, and others such as the plan to ban outsourcing and to subsidise new ‘green’ businesses, would mean a greatly increased tax burden on the private sector which ultimately finances far too many of the UK’s public sector trade unionists. Our way out of the recovery must involve a bigger role for the market economy, not its further constriction by government.”

The writers of a letter that was published 'Big Economic Upheaval in UK,' May 19 in this blog, opened out a framework for a post Coronavirus, which was an alternative to the economy and society actually being prepared by the government in the UK. The introduction to that May 19 letter follows;  

'Active socialists, trade unionists and people fighting for radical change have presented a public statement that prepares a new vision - post Coronavirus. The statement will be sent out to many. This 'Polecon blog' has also accepted to post the declaration. It provides a powerful and positive platform for the future. 

Following the same understanding, Polecon fully supports the efforts being made by the Peoples Assembly to unite a broad movement aimed at resisting the new austerity being prepared by the Tory government. Polecon asks the Peoples Assembly and all those with the relevant expertise and experience, including those supporting Labour's Manifestos of 2017 and 2019, to assemble around a commission designed to prepare the new economy.'

The TUC's suggestion for a National Recovery Council in common with the Johnson-led Tory government is, potentially, a deadly mistake. In the first place the cautious and backward objectives of 'A Better Recovery' will fail - even in the completely unlikely case of an economic coalition with Johnson's government. Second, the idea that a so called 'national agreement', rising above the the years of the huge attack on millions of working class people in every aspect of their lives, is viable, or even acceptable, is ridiculous. For those who really had to defend the NHS, who had to mobilise and campaign to squeeze the state and stop a plague, the TUC proposal is denying the truth of the relentless offensive that has been the real experience for most of those people. Third, Johnson may well play with the TUC's offer in order to promote a fake social unity - another, different way to emasculate any real opposition. And finally, if some of the TUC leadership think that the Tories will be exposed when they fail to adopt the TUC's proposal - it will be Johnson that will 'expose' the 'unfriendly' TUC. A serious alternative is put as fast and clear as possible onto the table. Tricks do not work when the wealthy and the rest have to finally resolve their fundamental arguments.   

The TUC leadership have walked through the Tory door. 

Of course there should be critical change in the new economy and its foundations in a new society. And this must stand as a plain and fundamental opposition to the failed and dangerous future we are being offered. There is huge social support for new nationalisations, for curbing finance and for a new industrial revolution. And, with the 14 million voters in 2017 and the 10 million in 2019, under the worst offensive since the battles for mass unions, women's rights and the welfare state, there is a potentially massive social block that can start to win a whole society. But only if the Tories are minimised from the start, rather than promoted by yet another hollow version of Johnson's 'national unity.' 

The writers of the May 19 letter in the blog - Big Economic Upheaval in UK - now ask the Peoples Assembly to allow an urgent response to the TUC proposal, including major discussions, leading up to 'Day X'. 

Big economic upheaval in UK.

Active socialists, trade unionists and people fighting for radical change have presented a public statement that prepares a new vision - post Coronavirus. The statement will be sent out to many. This 'Polecon blog' has also accepted to post the declaration. It provides a powerful and positive platform for the future. 

Following the same understanding, Polecon fully supports the efforts being made by the Peoples Assembly to unite a broad movement aimed at resisting the new austerity being prepared by the Tory government. Polecon asks the Peoples Assembly and all those with the relevant expertise and experience, including those supporting Labour's Manifestos of 2017 and 2019, to assemble around a commission designed to prepare the new economy. 

A Declaration

Provoked by the Coronavirus, sweeping changes are multiplying across the globe. In the UK many gaps have been exposed in the health and social services. Behind the problems faced by what has been called in the UK – ‘the front line services’ – there also looms deep faults in the UK economy and its politics , exposing the chasm between the rich and the poor. The death count demonstrates the lie that the coronavirus is classless and blind to race. The UK has already become the weakest link in the Coronavirus chain across Europe. 

As the first wave of the pandemic subsides in the West, it is generally accepted that the wealth held by States will be used to maintain, as far as possible, the previous economic conditions. But despite the rhetoric poured by politicians over the heads of millions who are struggling with the pandemic, a vicious ‘austerity 2’ is very close. The word ‘austerity’ will be denied by governments and their allies, particularly in the UK. But unemployment plus lower wages and poorer conditions and, after the applause fades, inroads into health and welfare resources, will re-emerge. Millions, including the middle classes, will experience a drop in living standards, deeper and more hectic than in the last decade. 

The major States in the West and the East , including the US and China, have, since 2008, been propping up what is dubiously called ‘global capitalism.’ Once more a failing economic system is soaking up the resources of the different nations, in order to maintain the domination of a spent system. In 2008 it was the banks that received State finances, preventing their own collapses via funding stock exchanges that expanded corporate wealth. This time it is the corporations themselves that are directly demanding State wealth.

It is the politics of course that will decide what happens across nations when the pandemic finishes. Since 2008 politics in Western Europe the US and the BRIC countries have failed to serve their populations in terms of living standards. Because of that failure new politics have emerged. 

The prime political momentum in the West and in some BRIC countries is becoming more dangerous. Facing down the rise of the right after the pandemic will be a crucial part of breaking the new right’s surge. The rise of the new right and its growing collection of governments has always attacked minorities and is now preparing for the use of force in society. (See Poland, Hungary, Brazil and Trump’s new militia in Michigan.) Because social disruption is now likely to erupt as a response to the second austerity in several countries, the right intends to maintain their political domination by force or by manipulation of the votes. Their drive for their version of ‘security’ is designed to win the support of large capital. Anti-fascism and anti-racism can no longer base themselves simply on liberal speeches. Mass defensive action in the US, in Europe and in the BRIC countries is needed. 

The recent defeat of left Social Democracy in the US and in the UK has left millions without mainstreampolitical organisations that might help contesting the right. This will elevate the inevitable excuse following the pandemic that ‘there is no alternative’ when it comes to the reduction in the standards and quality of lives of the majority.

Yet across the whole of the West, especially obvious in the UK, there appears to be the view that a substantial change in society is sorely needed. Endless polls reflect very low belief in current political institutions and disappointment in the failings in society. And these feelings do not inevitably fall to the right. 

In the recent two General Elections in the UK, there was widespread support for radical changes in the economy. And despite the defeat of the Corbyn led Labour Party in the 2019 General Election, smothered as it was by a huge deluge of slander, internal divisions and intense media hostility, 10 million voters (following 14 million voters in 2017) supported the democratic nationalisation of all public services - including the Internet and a range of deeply radical policies. This was topped by the priority for a Green industrial revolution. In the UK, Ireland, now Italy and France, a sense of political unease is developing into left-alternative action. The new right is powerful but they are far from winning. The next stage, post pandemic, will decide the issue - through a struggle in society about the coming recession hitting jobs and welfare. 

This letter is directed in the UK – to all those who want to build a platform for radical  change, turning our society away from the prospect of another terrible ten years. 

And the extraordinary development in the UK’s popular focus, now centred on the NHS, has shifted the connection of millions closer to this institution than any other in British society. The monarchy, the armed forces and other previously revered beacons of ‘Britishness’ have been overwhelmed. Westminster politics , the Church and the media have already fallen as in any way prime benefits of British society.  More significant in the new context are three shifts. First, the NHS is now understood as meaning the workers at all levels delivering health care in hospitals and the community, the great number of African and Asian heritage people and those who recently came across Europe and South Asia to join the NHS; these are the real NHS. The NHS has nothing to do with its scared Minister of Health or its system of managers. Second, the NHS, despite decades of cuts, privatisations and fragmentation, still offers a new version of how a very large institution can work brilliantly as it resists hierarchy in favour of team work; as it can be directly accountable to the public and as it can cut right through the so-called unavoidable economics of globalisation as well as the equally useless politics of Westminster. Third, the NHS, described by much of the British media as ‘the warriors of the front line’, are actually seen by most people as a million and a half or so of ordinary people, carrying out an extraordinary job.   

These changes in the self-organisation and decisions made by literally millions, for the collective aims of all, reflect a radical shift that will be a real first line of defence against the government’s intentions to recreate a new version of austerity 2 (whatever it turns out to be called.) This is a concrete base of an entirely different approach to society; how State forces can be used for peoples’ needs; how collective work and management can be so much more effective than our present arrangements; how the largest and most important requirements in society are achieved without the slightest need for profit.

For these reasons, the writers and supporters of this open letter call on any and all radical parties, unions, organisations and movements to prepare a common bloc which brings together all of those who can and will act and resist Austerity 2 that is being prepared for us. It is vital to break from our lame and dangerous system when it is obvious that we have a life-giving alternative.  

After Coronavirus

Gradually (too gradually?) the left in the UK are trying to work out what to do after Corbyn's defeat. Coronavirus has seemed to complicated the picture. Very little has so far surfaced by way of developing a new perspective for the left and, more importantly, the future of the working class. However, in reality the Coronavirus has also clarified politics in the UK. But caution and traditional thinking among the left organisations still abides.

So far, two movements in the UK, originating from a sizeable and active political left, have presented their ideas that might lead to radical progress. (There is also an internet-full, re-hashed, well-used options, old ideas and ancient slogans!)

Momentum, perhaps hit most after Corbyn's defeat, has been publicly struggling with its future. It is a substantial organisation with strong networks to students. However, there has been a split in its 40,000 membership. The new, significantly smaller 'Momentum Forward' is trying to move away from the previous Momentum priority that was given to focussing on leftish sets of values (that turned out to be easily reiterated by Kier Starmer in his leadership campaign.) MF is trying more to build socialism around political positions (and preferably outside the universities).

The main Momentum was created to support Corbyn's leadership, including the renovation of the Corbyn led Labour Party. But Corbyn has gone and the continued reform of the Labour Party is doubtful. So far, the old Momentum has only been able to produce a narrow and cautious response, focussing not so much on how to find a way to win Corbyn's Manifestos in the here-and-now, but rather proposing to start from the priority of an internalised LP pressure group. Momentum wants to put pressure on Labour's new leader, someone who regularly opposed Corbyn, to carry out Corbyn's policies.

These are Momentum's most recent 'Strategic Objectives': Elect a socialist Labour government: Transform the Labour Party: Build a social movement: Train activists and build a new leadership at all levels of the party: Build a sustainable organisation. The absence of defined socialist political positions and their action in society in the here and now, is painfully obvious.

The new Momentum is yet define its own activity or draw up any new policies.

The Peoples Assembly, an action based alliance that consistently fought austerity, contains various political strands. And this includes a current that, after critically supporting Corbyn's plans and policies, now considers that the organised action of the working class is the decisive route to radical political progress. The Labour Party is no longer any sort of centre for significant change - and is rapidly becoming its exact opposite.

The direct action of the Assembly has been a significant and broadly non-sectarian force. And has helped build political moments and actions that promoted the shift in working class politics towards the Corbyn manifestos in 2017 and 19. The weakness of its choice turning its back on Labour is that it is not a decision that is carried by the vast bulk of working class people. This is not to deny the rapidly rightward shifting leadership of Labour Party or the central significance of direct action and mass movements, independent of Parliament. But it is to understand that huge numbers of left leaning people see supporting Labour and taking action for their rights at the same time as the reality of politics. Small left groups do not define popular left understanding.

Here we come to the real problem of building a new-left, post Corbyn and post Coronavirus.

The reaction to the Corbyn Manifestos in 2017 and 2019; 14 million in '17, 10 million in '19, remains the real and only platform to rebuild the left - including through mass action. The 10 million who voted Corbyn in 2019 did so under the worse conditions and most savage attacks on any political leadership since the General Strike in 1926. The media fought Corbyn and his manifesto; all the other parties focussed against Corbyn; the vile and continual personal attack on Corbyn by a huge alliance of some Jewish and many other organisations; and the constant sabotage by Party officials, regional Party full-timers and more than a 100 Labour MPs - all failed to stop 10 million voters voting for Corbyn and his Manifesto.

This is the force, despite its setback in a twisted election, that could win a whole new, post-coronavirus, society.

The 2017 extra 4 million for Corbyn can align with the 2019 Corbyn voters now that Brexit is settled. The ideas of the Corbyn Manifestos can be reconstructed as a reply to Boris's inevitable attack on working class people as 'the only answer' to getting the economy going. This means using the state to nationalise all utilities and services. It means building democratic leaderships appointing relevant experts. It means a huge investment focus on a Green Economy (and not the poisonous elites driving the City of London towards its Singapore-on-Thames.) It means a public free Internet platform and most important of all, the control, via a national Bank of England, of all UK banks.

The serious political movements from the left - whether from the left of the SNP, from the Greens, from left organisations, inside or outside the Labour Party, from unions inside and outside the TUC and from campaigns - can form a bloc. Its purpose would be to overwhelm all those who want an economy re-organised to defend the future of the rich, including dumping all the Labour MPs who are now literally savouring the idea of the next 'national government'.

This non sectarian bloc can draw together the millions that voted for radical change. Just as the response to the fire in Grenfell temporarily overwhelmed May's government, so a new bloc gathering the millions who have already made their political mark, can, in the wretched Tory conditions of post coronavirus crisis, overwhelm the latest version of the old society and take the country's leadership to something new.