Yesterday this Blog referred to Osborne’s successful seizure of the centre ground which Labour had thought it occupied, but by using policies of the left (ie higher taxes on the better off and lower taxes on the less well off, the ending of the practice of business owners paying themselves in dividends rather than higher salaries to reduce tax, plus a higher statutory minimum wage, together with a bank levy and denial of higher rate mortgage relief to private landlords). This was a bold move which has wrong footed the whole right wing of the Labour party with its Oxbridge New Labour roots. I also pointed out that Labour remained in possession of a political strongpoint; the reduction of tax credits before the benefit of the new minimum wage is in effect.
Analysis by the IFS reveals that this strongpoint is far stronger and bigger than anyone supposed. 13 million families, no less. Moreover they will always be worse off, even after the minimum wage rise goes live. In other words the poorest and most disadvantaged families are paying the highest price for the Tory cuts. That is where Labour can retrench, re-orientate and build a winning position. There are millions of voters there (reliable working people in ordinary jobs upon whom the functioning of the nation depends, not the sharp elbowed who want to get on now called aspirational) who have deserted Labour in despair, many no longer voting at all. Winning them back will give Labour the keys to Number Ten. But to do that Labour has to reconnect to its roots. It has to move left. If it does not it will lose again and again. If you have a vote in the Labour leadership election, think about that when you use it.