Big Society

Liz Kendall Excerpts

Monday 28th February 2011 Commons Chamber

[Liz Kendall (Leicester West) (Lab)]

I am grateful to the hon. Member for Dover (Charlie Elphicke) and the Backbench Business Committee for securing this debate. The issue that we are discussing goes to the heart of what I believe politics is about: how to secure a just and fair society, where everyone has the freedom, power and opportunity to fulfil their potential and thrive. There has and always will be a strong strand within the Labour movement that believes that self-help and community action are the foundations of a good society and the route to a good life. During the industrial revolution and earlier, ordinary working people came together to form co-operatives, mutuals and friendly societies. Those organisations were owned and run by their members for the benefit of one another, and were established to protect working people from the consequences not of an overbearing state, but of unfettered markets that treated people as mere commodities to be bought and sold for financial gain. Generations of working people learned to help and develop themselves by taking roles in those organisations. They learned how to read and write by running a trade union branch or got health insurance from friendly societies in case they had an accident at work.

The modern Labour party was born out of those organisations and we then went on to create the welfare state, so that the security, opportunities and other benefits provided by those organisations were made available to all. The values of community, self-help and mutual aid remain strong in the Labour party, as our record of the past 13 years shows. Government-funded programmes such as the new deal for communities have helped to transform the most deprived areas in my constituency, such as Braunstone, by empowering local residents and community groups. Labour councils have opened up local services to the voluntary sector. In Leicester, organisations such as Streetvibe now provide fantastic youth services, which young people themselves help to shape and run. In Rowley Fields, in my constituency, residents who campaigned to save the Manor House community centre are now running and developing community services that better meet local people’s needs.

Some of the biggest changes that Labour made were in the NHS. We created foundation trusts and backed pioneering new social enterprises, such as Central Surrey Health, so that local staff, patients and the public can now own and run their local health services. However, we did not just harness the skills of voluntary and community groups to transform public services; we empowered those groups to help change markets, too. For example, we increased support for credit unions and updated their legislation, so that more people on low incomes can now save and get access to affordable loans denied to them by the commercial market.

Those are just a few examples of Labour’s good society in action. They show, first, that the state and civil society are not mutually exclusive, but inextricably linked; an enabling state is vital to supporting civil society, and vice versa. Secondly, they show that securing the good society is as much about changing the economy and markets as it is about reforming the state. The Government’s big society fails to acknowledge either of those crucial points, which is why it will fail to empower individuals and communities to take control over their own lives.

Let us consider the Government’s proposals to encourage more volunteering, which is an important and laudable goal. The real issue is not that people cannot or do not want to volunteer because of work or family constraints; it is that securing the good society requires more than kindness and charity alone. Giving people real power and real control depends on far deeper and more powerful principles and values: solidarity and reciprocity; taking common action to achieve common goals; and knowing that your fellow man will share the burdens as well as benefits that life inevitably brings.

The Government say that the big society is about not only encouraging volunteering, but opening up public services so that the voluntary sector can play a bigger role, but some of their plans are likely to achieve the opposite. The Prime Minister says that the new Work programme will make up to £700 million available to the third sector, but organisations are to be paid only after they have got people into work and kept them there for some time, which will mean that many small and medium-sized charities cannot get involved because they simply do not have the resources necessary to put in this money up front.

I have long championed the idea of giving people more choice and a greater say over their public services. As the former director of the Maternity Alliance charity, I have always thought that different providers have an important role to play in public services, but that must be done within a properly managed system so that the benefits of choice are felt by all, with genuine accountability to users and the public. That is not this Government’s approach. They want to drive a full market and full competition approach through the whole public sector, regardless of any evidence about whether competition works in particular fields and without the vital checks, balances and accountability that Labour had in place. That is not the way to improve the quality of our public services or to give users and communities greater control.

[Rory Stewart]

The hon. Lady has spoken very eloquently about the barriers to volunteerism in relation to resources, and about solidarity, but what about regulation? In my experience, the main barrier that people tend to complain about is that they are prevented by regulation from doing what they want to do, so a lot of this is about clearing regulation out of the way, not about giving people resources.

[Liz Kendall]

I think that is an important point, but it is not the issue that people in my constituency raise with me about volunteering—it is about whether they have the time and the resources to do it because they have family, caring and work commitments. That might be the hon. Gentleman’s experience, but it is not mine.

Whatever the Government’s plans for reforming public services, the more immediate and pressing issue is the speed and severity of their public spending cuts. There is no getting away from that. Two weeks ago, in my constituency, I met a whole group of charities, which told me that the cuts threaten their very existence. I am talking about brilliant organisations such as Lighthouse Learning, which has played a huge role in reducing the large number of young people not in education, employment or training in Leicester. The Government say they have recognised this problem and provided transitional funding, but groups in my constituency tell me that the funding is available only to charities that are “undergoing change”—for example, merging with others—and not to fund existing work, salaries or rent. If the Government support the voluntary sector so much, why do they refuse to provide transitional funding to continue that work? Unless other funding is found, the very voluntary and community groups that they claim to want to support will have no choice but to close. I do not doubt for a second that Government Members support the voluntary sector and want it to play a bigger role, but their economic policy threatens the existence of many voluntary and community groups because their public spending cuts go too deep and too fast.

[Henry Smith (Crawley) (Con)]

Has the hon. Lady reflected on why the country has an historical high deficit and a difficult financial situation?

[Liz Kendall]

I am sorry but I did not hear the hon. Gentleman because of comments from my hon. Friends. Will he repeat what he said?

[Henry Smith]

I am extremely grateful to the hon. Lady for giving way again. Has she reflected on why we are in such a difficult financial predicament? I suggest that it is not just because of the badly regulated banks under the previous Administration.

[Liz Kendall]

Yes—because of the failings of the market, which is the point I am trying to make. If we want a good society, we have to acknowledge that while there can be problems with an overbearing state, some of the problems created by markets are far greater than those created by the state.

[Rehman Chishti]

The hon. Lady says the situation is because of the market’s failure, but was there not a failure of policy? When this Government came in, one in five 18 to 24-year-olds were unemployed; that was a failure of policy by the previous Government, not of markets.

[Liz Kendall]

I return to my earlier example about why it is important to support credit unions—some banks were not giving credit, loans or bank accounts to some of the poorest and most deprived people in my constituency. My hon. Friend the hon. Member for Walthamstow (Stella Creasy) has rightly been highlighting the need to take on some of the illegal—and legal—loan sharks who prey on such people, including my constituents. That is down to a failing of the law, yes, but also of markets, and it needs to be tackled.

In conclusion, the Government claim that their big society is about empowering local people, but in reality it is about rolling back the state and using markets alone to drive change in our public services. That will leave too many communities to fend for themselves. That is okay in areas with huge resources and people who have time to volunteer, but in my constituency where people are struggling to find work and get on the housing ladder and have real problems and issues, I do not think that will work. Keir Hardie, the founder of the Labour party, believed that the role of the state should be to enable people to choose the life they want to lead, and that markets should serve the people, not the other way round. He wanted to create a society based on the inherently human values of solidarity and community and not on those of the market or an over-powerful state. Hardie’s vision is as relevant today as it was 100 years ago. The Government’s big society will not achieve it, but I hope and believe that Labour’s good society will.

--- Later in debate ---

[Margot James]

I would like to consider that suggestion more fully. It is a laudable one, which would address the problem of over-dependence, although I fear that too great a bureaucracy would be required to oversee such an idea, resulting in two steps forward and one step back.

[Liz Kendall]

What other sources of income should the voluntary sector turn to, if the hon. Lady believes that it is too reliant on council and central Government funding?

[Margot James]

There are many voluntary and charitable organisations that derive no income whatever from the state, such as the air ambulance, which one of my hon. Friends mentioned earlier. It raises £48 million a year through a lottery and fundraising volunteers. A dear aunt of mine aged 88 has a standing order for the air ambulance, which is how such organisations get their money. The hospice movement is another case in point. My local hospice, Mary Stevens hospice in Stourbridge, receives only 18% of its funding from the primary care trust and raises the rest of its money itself. I am very much in favour of grants from local authorities. When I was a local councillor, I served on the board of a charity that received virtually all its income from the primary care trust and the local authority, which was detrimental.