1. Time for praxis
It’s the New Year, and time for action.
The Christmas debate about the student movement leadership/generation has been healthy, but it’s time for ‘the movement’ (a term I’ll use as an uncritiqued shorthand for the rest of this piece) to move on.
These are my thoughts on what actions might come next.
They are offered as part of a ‘menu’, and are based on my areas of semi-expertise. Other parts of the ‘menu’ are currently being offered up (all three articles somewhat confusingly ‘What Next?’.
The premise for what I suggest is simple. The movement to date has been at its best when it has identified targets which a broad range of people has seen, or has come to see, as legitimate. The two obvious examples are Vodafone/Top Shop, and Parliament/Millbank, but at a London level there has also been the targeting of the LibDem conference, and in Birmingham the sit-in at John Hemmings office.
Interestingly, what has not been needed as a part of these actions is a specific list of coherent demands. While some observers have tried to ‘call out’ the movement on this it has not been an impediment to the popularity or, in its own terms, effectiveness of the action; while specific demands for Top Shop to pay his taxes might be technically incoherent on the basis that Green has not broken the law, the fact that this simply reveals a deeper structural problem has actually been an advantage.
Similarly, while Paul Staines/Guido Fawkes may bleat on that the Guardian avoids tax through its legal status, the argument may be technically correct, but is an irrelevance to the broad but as yet unspecified demands for change.
It is not the specific demands, or the specific alternatives which matter. It is the visibility and legitimacy of the target which makes for effectiveness. As such, the momentum created is greater than it was with the G20 protests, for example, when the target was just a bit too diffuse (‘world governments’) and much more than the broad anti-capitalist demos of the early 1990s.
2. Time for targets
It seems to me that there are three pretty obvious legitimate targets for the early part of 2011: local councils, the private providers that have major contracts with those Councils , and Primary Care Trusts (PCTs). This is because such targets:
- Have both clearly identifiable decision-making points coming up in the next few weeks;
- Allow for a, what is widely acknowledged as desirable, broadening of the movement to encompass the wider ills being visited upon us by the Tory-led government;
- Allow for at least some greater geographical decentralisation of the movement away from the main urban (and university) centres, although some capacity constraints will remain;
- Create an environment in which the movement and trade unionists (or at least public sector ones) can move beyond the welcome rhetorical expressions of mutual solidarity and start to plan grassroots action together;
- Also create an environment in which the movement can engage with nascsent Coalitions Against Cuts, and in particular those groupings of people standing up for/representing public service users and others who will be hardest hit by the public sector cuts.
3. Local councils as targets: actions and issues
Local councils will, in general, be setting their 2011-12 financial year budgets between mid-February and mid-March.
The budget setting meeting clearly creates a focal point for demonstrations, just as the mid-year cuts decisions taken by some councils did in November/December, though on a more widespread scale.
To make action around this decision as effective as possible, however, and take it beyond the ‘big demo’ on budget day/night, there are some preparatory steps that might be taken in the next few days/weeks.
First, contact might be made with the local public sector union branches to discuss how best to work together in the coming period.
At one end of the action spectrum, this may simply be to ensure that demonstrations on budget day/night are co-ordinated. At the other end lie two possibilities for more direction.
The first lies largely within the gift of the union, and boils down to arranging either official or unofficial strike action on the day of the budget decision, and then ensuring a picket line at the Town Hall/Council chambers.
In general, it might be expected that Labour councillors will refuse to cross any such picket line, especially if this course of action is agreed as the most tactically astute one, in general this being where Labour is in opposition on the Council (see below for further detail). Indeed, as a Labour Group secretary I organised just such a refusal to cross a picket line to a Council meeting in 2008, by prior agreement with the unions.
In these cases, a visible picket line, combined with a visible refusal by Labour (and of course Greens and assorted other anti-cuts councillors, perhaps stretching as far as the odd maverick LibDem, might make for good protest material, with pro-cuts councillors appropriately highlighted.
The important thing is to get moving quite quickly on this, especially if one day strike action, on different days across the country, is to happen at all. If such action is to remain within the current law, ballots will of course need to be held and this take time to organise. Such steps do provide union members with the reassurance of official sanction, and the position of many public sector workers at the moment, both in terms of risk of job loss and general confidence, means that this should not be scoffed at.
Of course unofficial action is possible, but time will still be needed for workers to go through the issues that these entail, especially if one day’s action is being flagged up as the start of something bigger (and that rhetoric is likely to be forthcoming if the broader movement is bringing its enthusiasm towards the union movement in the way I suggest).
What the anti-cuts movement does not want are days of industrial action which are only partially observed by union members; that is probably less effective than eschewing all such action in favour of simpler-to-organise demonstration activity.
Conversely, if the coming together of the new movement, nascent service user resistance groupings and trade union can instill in each other the sense of solidarity to make it all happen without recourse to official sanction then so much the better, not least (and in passing) the December 2010 report by the European Committee of Social Rights, which states that the government’s current legislation against unions’ rights mean that
the scope for workers to defend their interests through lawful collective actions in excessively circumscribed.
The second line of more radical action lies more within the gift of the broader movement (and any extant Coalition Against Cuts) rather than with the unions, and includes the imposition of physical (though non-violent) measures to try to stop or delay the budget decision. It doesn’t need the likes of me to give advice on how this might be done, either within the Council Chamber or by seeking to restrict access to the Chamber.
It goes without saying that in the end such measures are likely to be overcome by a resort to force on the part of the Council administration, but it also goes without saying that such confrontations, if they do come to pass, are at the very heart of what resistance is, whether or not it is accompanied by the laudable sense of theatre and public engagement that the movement has brought to direction action to date.
As a technical matter, however, there may be something to be learned from Kate Belgrave’s recent endeavours, retold at her blog, in which a Council not too far from me tried to stop her recording Council proceedings, with no obvious justification for such restraint on individual freedoms in a public place. Attempts at mass recordings (and dissemination) of events might make for interesting theatre, at the very least.
4. The elephant in the room: Labour Councils and the cuts (revisited)
There remains, of course, the elephant in the room: how the movement responds to and engages with Labour-run councils planning to implement job and service cuts because of draconian cuts to their funding from central government.
I have covered in some detail, in a previous post, the technical issues surrounding the situation in which Labour councils now find themselves. They are, in short, between a rock and a hard place. There are no easy solutions.
Essentially, given the law as it stands under the Local Government Finance Act 1986, it is not technically feasible to defy the government on budget setting, by the setting of a clearly ’illegal’ budget because of the additional powers accorded to Chief Finance Officers simply to manage the Council’s coffers in themselves if, in their judgment, councillors are setting a budget which outstrips resources.
The main course of action open to councillors therefore is to take decisions on the spending of reserves and balances which, in more stable financial and political circumstances, would be seen as imprudent. This creates more of a difficult judgment call for Chief Finance Officers (with, I suspect, recourse to audit opinion).
This has been fairly widely touted as a reasonably radical way forward, although in some Councils even draining reserves and working balances to near zero will not cover the new budget gap.
The other option that has been suggested, here for example, is for Councils to use powers set out in the Local Government Act 2003 to borrow money on the open market, commonly known as ‘prudential borrowing’ in keeping with the Treasury’s Prudential Code. These powers have never, as far as I know, been used to borrow money to provide ongoing services, as it is designed for capital works which create revenue streams/savings down the line for loan repayment.
In a case where an attempt was made to borrow without an accompanying business plan showing repayment from revenue/savings generated therefore, it is most likely that the Chief Finance Officer would find her/himself in much the same position as with a more direct setting of an ‘illegal’ budget (see above). On balance, therefore, I simply cannot see prudential borrowing being brought to the table by Labour councils as a realistic way forward for the 2011-12 financial year, though I’d be delighted to be proved wrong, and it may be an option in subsequent years.
In tune with this view, prudential borrowing does not feature in the list of suggestions set out in the recent letter to the Labour Leader of Liverpool City Council from Militant ex-councillors who were surcharged in 1987 for setting an illegal budget.
Indeed, they also seem to recognise that the legal potential for defying the government through illegal budget setting has changed, and their direct demands are limited to the spending up of reserves and balances in the way I have indicated above. (The scope for Council action may change with the introduction of the Powers of General Competence set out in the localism bill, but this will have to remain beyond the scope of this article, which is focused on the shorter term).
Use of reserves aside, and despite the headlines about the nature of the letter, the main ‘demand’ made by Tony Mulhearn and his ex-councillor colleagues is not that councillors should try to do what is simply impossible, but that:
A campaign could then be launched to oppose the cuts with the specific demand that £50million be restored to the Liverpool City Council as a means of defending jobs and services.
You could issue a call for all local authorities to embrace the same strategy, and call for support from the local authority trade unions and the wider Labour movement, in concert with community organisations which are planning to resist any cuts in their own localities.
In other words, ex-Militant are advocating a political campaigning strategy which has the formal Labour movement and its councillors as part of it but (arguably) not seeking to subsume other forces.
This is, I suggest, not just in tune with where the broader movement is coming from now, but is also a more valid and sustainable approach than, as has been suggested, expecting Labour councillors simply to abrogate their responsibilities either by voting against ANY budget put on the table by its own leadership, or simply resigning from the Council.
Such tactics, while they may look good in the shorter term, risk allowing even more punitive budgets to be set by opposition groups (or in extremity by the Chief Finance Officer), and also ignore the fact that even a 15% one year cut still leaves 85% of money to be spent, and that it is important that this remaining money is spent in way which minimise the effect of the cuts/protect the most vulnerable. This is the core of Liverpool Labour leader Joe Anderson’s response to ex-Militant.
What does this fairly lengthy (though I would hold, necessary) exposition of the position for Labour Councils mean, then, for the way in which the broader anti-cuts movement targets Councils up and down the country, often in the strategically important metropolitan centres?
Well, clearly there will be more difficult matters of judgment for the movement around to what extent it is strategically useful to target Labour Councils trying to do create the ‘least-worst’ outcomes for jobs and services in their area, but that doesn’t mean there shouldn’t be protests. Councils are, in clear legal terms, simply an executive arm of the national Tory-led government, irrespective of which party is in control locally; Labour councillors do sign up to that idea when they become councillors, and ultimately it is simply a cross they have to bear if they become the butt of protestors who are seeking, through their actions, to disrupt the function of what they consider is an illegitimate government.
At its most extreme, direct action to disrupt this function of government might include attempts to stop the budget vote taking place at all, and it is to be hoped that in such circumstances of civil disobedience, that Labour councillors might at the very least bear proceedings with equanimity; the kind of utterances we have had from the likes of the leader of Lambeth Council do, unfortunately, little to suggest that Labour councillors and movement activists may all broadly be on the same side.
Conversely, it would be good if, when protesting in whatever way is appropriate/possible, the movement does recognise that, at a personal level, Labour councillors are unlikely to be the scum of the earth, desperate to cut services to the poor; that is not, generally, why they became Labour councillors.
To facilitate such understanding, in a manner close to the one suggested by ex-Militant in Liverpool (notwithstanding any different emphases on who is leading whom in the campaign), it would be good if members of the movement can, probably via links established with the local trade unions (see above) engage in some of the detail about the budget. This doesn’t mean the movement should seek to become quasi-councillors, but it might at least seek to check out the extent to which Labour groups are, for example, making appropriate use of reserves and balances where these are available to maintain services.
Where necessary, it should be pressing for more radical action to conserve services, and taking up the standard for those most in need. Such pressure might include seeking invitations to lobby the local Labour party membership, which in theory at least (practice is mixed) should be able to hold its councillors to account either directly or through its Local Government Committee.
In ideal circumstances, such pressure from the local party on councillors might actually be interpreted as solidarity support for those councillors to take a more radical approach than they might otherwise feel comfortable with. If this is to happen, though, arrangements will obviously need to be made quickly so that the various party discussions can take place in late January/early February.
Frankly, if Labour groups are unwilling to open up to this kind of dialogue with an important potential anti-government ally, then they deserve whatever ‘sell out’ accusations may be levelled at them. Similarly, Labour-led councils (and there are some) which are not engaging properly and rigorously with the trade unions about their budgeting plans for this and subsequent years do deserve any mud that gets thrown at them.
Ultimately, then, the movement should not (and I’m pretty confident will not) hold back from legitimate protest and action in the face of cuts proposals being proposed in February/March by Labour-led councils, though a prior understanding of the somewhat different dynamics within the controlling group will be useful. In such circumstances, working with the trade unions, who will have more of a feel for the those dynamics, will be vital.
5. Private Council service providers
In their letter to Labour leader Joe Anderson, the Liverpool ex-Militants also talk of another possible area where money can be saved:
In addition you could take Liverpool Direct back in-house thus saving a reported £29million a year.
I’ve written about the joint venture contract between Liverpool City Council and BT previously.
It was signed off by the LibDems when they were in control, and there are some reports that it costs the Council many millions a year in additional charges because of the poor initial contracting and weak contract management. However it is clear that Labour, now in control, have found that disentangling the Council from the contract is likely to be simply too costly in terms of contractual obligations and costs for bringing the various ICT/customer-services back in-house .
The detail of this particular horlicks of a contract, though, is less important than the idea that, perhaps even more so than Councils and councillors themselves, the big private firms that make a lot of their profit from delivering public services under contract to Councils might become legitimate targets for protest and non-violent action.
In this respect, it should be remembered that the Ian Livingston, Chief Executive Officer of the BT group was one of the people who signed the Daily Telegraph letter in October supporting Osborne’s public spending cuts.
It would therefore make sense for the movement to think about orchestrating some kind of TopShop-style action at selected BT offices demanding that BT take at least the same level of cuts to their contracts as the various councils they serve are facing, without reducing the level of service.
And of course it’s not just BT. The CEO of facilities management outsourcing company MITIE also distinguished herself with her call for cuts to public expenditure at the very time she was planning to increase her firm’s profit margins from that very expenditure:
McGregor-Smith said government spending cuts created uncertainty over how local authorities would manage contracts and procurement but sounded a bullish note about Mitie’s medium-term prospects.
“We’re currently having a very positive dialogue with the cabinet office. We believe in the private and public sectors, in the medium term, we are bidding a number of opportunities that would really help the growth rate,” McGregor-Smith told Reuters.
Perhaps a salutory occupation of MITIE’s offices around the country, enquiring after the ethics of ‘more for our shareholders at the expense of others’ business model might be appropriate.
And there is also Serco, a major provider of local authority outsourced services, whose Chief Finance Officer wrote to all their suppliers demanding at least a 2.5% reduction in contract price from his smaller supply chain providers, or risk losing the business. Perhaps this charming approach might be reciprocated.
6. Primary Care Trusts as targets
The final legitimate target area is, I would contend, the decision-making process that will be undertaken over the next month or two by Primary Care Trusts (PCTs).
PCTs are, until their proposed abolition in 2013, the main fundholders for all NHS spend, but while they make budget decisions on levels of spending which outweigh Council spending, their ‘depoliticised’ nature means that the public board meetings tend to avoid the level of scrutiny given to Council meetings.
Of course, any notion that NHS budgets have been ringfenced against cuts has now been pretty well put to bed; the cuts, whether or not they are expressed as required savings, are here now, and movement resistance to them is as important as it to so local councils – perhaps even more so given the way in which increasing percentages of overall PCT spend is likely to be channelled towards maintaining secondary care at the expense of primary and especially community-based preventative health.
In many ways, what I have set out above about action towards councils applies also to PCTs, except that it is much more straightforward. There needs to be the same engagement with the unions, and the same kind of planning to engage around the key decision-making point: normally a budget setting board meeting. What the targeting of the NHS like this may do, however, is create an element of surprise at the broadening of the movement’s scope to encompass an area in which, to a large extent, the radical privatisation plans of the government have gone unchallenged other than in the press.
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