The Labour Party Manifesto 2010


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The Labour Party Manifesto 2010

  1. 1. The Labour Party Manifesto 2010 A future fair for all
  2. 2. The Labour Party Manifesto 2010 Contents Foreword Introduction Securing Britain’s future from Gordon Brown Rebuilding our economy Chapter 1 1:1 Chapter 2 2:1 Growth: Living standards: Building the high-growth Prosperity for all not economy of the future just a few Protecting public services and strengthening society Chapter 3 3:1 Chapter 4 4:1 Chapter 5 5:1 Education: Health: Crime and immigration: Excellence in education: World-leading Strengthening our every child the chance healthcare: a patient- communities, securing to fulfil their potential centred NHS our borders Chapter 6 6:1 Chapter 7 7:1 Chapter 8 8:1 Families and older Communities and A green recovery: people: creative Britain: A green future Supporting families Creative Britain: for Britain throughout life active and flourishing communities A new politics Chapter 9 9:1 Chapter 10 10:1 Democratic reform: A global future: A new politics: renewing Meeting the challenges our democracy of the new global age and rebuilding trust 50 steps to a fairer future for all 11:1 0:1
  3. 3. The Labour Party Manifesto 2010 Foreword from Gordon Brown This General Election is fought as our troops This is a Manifesto about the greater progressive are bravely fighting to defend the safety of the change we need because of the tougher times we British people and the security of the world in are living through. There are no big new spending Afghanistan. They bring great pride and credit commitments, but there is a determination for to our country: we honour and will always every penny to be used wisely, and, as present support them. plans make clear, to give the maximum protection to frontline public services. At the same time the world has been rocked by the first great crisis of the new global economic age. This is a moment to show greater boldness in response to what Britain has gone through and In Britain, the political crisis caused by expenses the toll it has taken. We reject a ‘business as usual’ has undermined the bond of trust between the mentality because we have to re-build and re- people and the politicians elected to serve them. balance the economy, as well as renew our society So this cannot, and will not, be a ‘business as and politics. Reform cannot stand still – not least usual’ election or Manifesto. In this Manifesto we because we need to get more value and delivery set out plans to address the main future challenges from public services in a period of public spending we face in our economy, our society and our constraint. Our Manifesto charts an optimistic politics. We will rebuild the economy to secure course in tougher economic times. It builds on and the recovery and invest in future growth and jobs. takes forward the reforms we have undertaken We will renew our society to further strengthen since 1997. the communities that bind our country together. I love Britain and want the very best for our And we will restore trust in politics with greater country. This Manifesto is my pledge of a future transparency and accountability in a system fair for all. battered by the expenses scandal. This programme for further national renewal meets the big challenges of the age. Our Manifesto is ambitious but affordable, bold but Gordon Brown realistic, and learns from the lessons we take from Prime Minister our experience to date. Over the next ten years we will confront major challenges - intensive global competition, climate change, an ageing society, and bringing stability to Afghanistan. This is a moment for good judgement and serious purpose to meet the challenges ahead. Our aim is a modern, progressive Britain based on fairness, respect, decency and openness. 0:2
  4. 4. The Labour Party Manifesto 2010 Introduction The argument of this Manifesto to the world as it was then. Parliament properly accountable. is that to deliver a future fair We changed our party so that In all these decisions, we offer for all we need to rebuild our it connected to the hopes and progressive solutions in tough economy, protect and reform aspirations of the British people. times. We do not measure the our public services as we We changed our country because boldness of our programme by strengthen our society and we rejected the philosophy how much we spend but the renew our politics. We, Labour, of the 1980s which said that results we achieve. By taking are the people to carry out this government should just get out hard decisions, being guided at next stage of national renewal of the way and that we were in it all times by a sense of fairness, because of our values and just for ourselves. we believe that we can continue our understanding of the role We are proud of our record to advance towards the good of government: to stand by but today we are running for society in which we believe. ordinary people so they can the future. We have to address change their lives for the better. There is a big choice at this a world that is very different It is our belief that it is active, election about whether we now, with major new challenges reforming government, not confront these challenges and we must confront: fighting for absent government, that helps build the kind of economy, our economic future in a tough make people powerful. society and politics we believe competitive world, tackling in, or duck them. But to be able We are proud of our country climate change, improving to meet these future challenges, and the way it has changed public services amidst financial there are some immediate since 1997. It is just too easy to constraint, confronting the decisions we need to get right forget. Our public services were reality of international terrorism, now. Above all, we need to a byword for decline; today they adjusting to an ageing society secure the economic recovery. have been transformed. Our so people can live longer and Get it right and we can go on to large cities were reeling from two happier lives, and restoring trust build a strong economic future. savage recessions; today, despite in politics. Get it wrong and we will slip the global economic crisis, they The global financial crisis back into recession. have a renewed prosperity and shows we need to be bolder civic pride. People were paid Labour believes we must about reforming our financial £1 an hour; today the minimum not put the recovery at risk markets and building our wage and tax credits provide by reckless cuts to public economic future on fairer, more the dignity of a living income. spending this year. solid foundations. To build on The welfare state simply did success in our public services, From the autumn of 2008, not understand working women we need to protect investment big calls had to be made. We and families. Today, with family- in the front line and also be bold nationalised Northern Rock, friendly working and better about putting citizens genuinely protected people’s savings, cut childcare it has at last begun to in control. And we must be VAT to stimulate our economy, do so. bold reformers of our politics: put in place job guarantees to These changes happened seizing this once in a generation get people back to work, and because we applied our values opportunity to make our stepped in to stop repossessions. 0:3
  5. 5. The Labour Party Manifesto 2010 It is working. The banking confidence to allow a return to fair way with a combination of a system has been stabilised. the same old ways. There is a return to economic growth, cuts Our economy is showing desire not simply to correct for to lower priority programmes signs of returning to growth. what went wrong, but to seize the and fair tax rises. Responsibility Unemployment has, so far, risen opportunity to build anew. at the top means people paying by over 500,000 less than people their fair share and we believe Financial services have been an expected this time last year. it is right that those with the essential job creator in Britain Repossessions are at around half broadest shoulders bear the and will continue to be so. But the level of the 1990s. greatest burden of paying down our financial institutions left to the deficit. The question at this election is themselves have undermined whether people think the choice our economy. We are enacting Labour believes we should we made was the right one sweeping banking reform to protect frontline spending and whether we use the power prevent a repeat of the past; on childcare, schools, the of government to help sustain ensuring new support for the NHS and policing, and recovery, or allow it to be snuffed high-tech industries of the reform our public services out. Every government of the future, such as green industries; to put people in control. major developed economies – of and taking action to forge a Millions of people working in Left and Right – recognises the new culture of long-termism in our public services embody the need to support the economy business. best values of Britain, helping while growth is still fragile. We It isn’t markets or governments empower people to make the will not cut spending this year, that create wealth – people do, most of their own lives while but instead support the economy through their own effort and protecting them from the risks to ensure recovery is established. hard work. So we will do more they should not have to bear Labour believes we should to support enterprise and to help on their own. Just as we need rebuild our economy in new those who want to build up a to be bolder about the role of ways: with more high-tech business and get on in life. Those government in making markets business, fairer rewards who can work must do so and it work fairly, we also need to be and responsibility from all, needs to be properly valued. We bold reformers of government. including at the top. will end for good the concept of For a decade we have combined a life on benefit by offering all The world changed out of all investment and reform and those unemployed for more than recognition in 2007 with the improved our public services. two years work they must accept, onset of the global economic Now we need to rise to the and we will make work pay better crisis. Major British banks, the challenge of achieving even with the goal of a minimum wage custodians of our savings and higher standards in a period of rising at least in line with average livelihoods, ran out of money constrained resources. We will earnings and a guarantee that because of the recklessness of drive forward our programme people will be better off in work those in charge. This Manifesto to strip out all waste, improve than on benefit. makes the case that there should efficiency and get the most out of be no return to business as usual. As we more than halve the fiscal every pound spent. We recognise People have suffered too much deficit over the next four years, that investing more in priority with their jobs, livelihoods and we will ensure that we do so in a areas will mean cutting back in 0:4
  6. 6. The Labour Party Manifesto 2010 others. Above all we will build fathers will have more time off In 1997 New Labour met the public services that are more to spend with their kids. There call of national renewal. In personal to people’s needs: with will be greater protection for the our politics and economy over clear guarantees about standards, local institutions people value, the last 18 months, we have the best providers taking over like local post offices and pubs. witnessed seismic events. In this others where they don’t make In everything we do, we will election, the first of the post-crisis the grade, and with new ways demand the responsibilities that era, we stand as the people with of organising services such as must come with rights: to work the experience, values and ideas mutuals. when you can, not to abuse your to help our country through the neighbour or neighbourhood, next phase of national renewal. In health, this means if we don’t to show respect for Britain as a meet our guarantees, for example This task has always relied newcomer, to pay your fair share on waiting lists, the NHS will fund on optimism. Our principle of tax. you to go private. In education it opponents, the Conservatives, means that if the local school is Labour proposes radical offer a fundamentally pessimistic underperforming it will be taken reform of our democracy to vision of national decline: about over; and parents who believe reconnect politics to the people Britain today and in the future. their school is not good enough it should serve. Just as the global Their only real prescription for can trigger a ballot to change the economic crisis was a shock the good society is a smaller leadership. And in policing, where to our economic system; the state and the decisions they seek communities are being let down expenses crisis created turmoil in to make for our country would by forces we will enable them to our political system. It revealed favour the privileged few over be taken over by others. not just unacceptable behaviour the many. They would isolate by some MPs but also that our Britain, cutting us adrift from the Labour will strengthen closed political system had lost alliances and influence that will our society, by protecting touch with people. Once again, enable us to succeed as a country. the things people value the response cannot be to try and and demanding rights and This is a Manifesto that return to business as usual. responsibilities from all. is idealistic about what is We need fundamental reform possible but realistic about Our society is not broken; it is of our politics to make it more how to achieve it. This is not strong in many different ways. But accountable. We will let the a conservative moment. It is a it is changing fast. Changing with people decide how to reform progressive moment. We speak immigration, changing as people our institutions and our politics: for the ordinary people of this move more frequently, as young changing the voting system and country who work hard, want people grow up more quickly and electing a second chamber to their kids to do better than older people live longer. replace the House of Lords. But them, and worry about the We will protect the things we will go further, introducing economic, environmental and people value: families, strong fixed-term parliaments, banning social challenges we face. We communities, local institutions. MPs from paid second jobs are on their side, it is their voice, We will create a new settlement in that pose a conflict of interest, needs and hopes that shape this our country on how we care for and providing for a free vote programme. the elderly through the creation in Parliament to widen the of a National Care Service, and franchise to 16 and 17 year olds. 0:5
  7. 7. The Labour Party Manifesto 2010 Securing Britain’s future The plans set out in this Manifesto take full account of the fiscal position we face. We will protect frontline public services while meeting our commitment to halve the deficit over the next four years. We are now emerging from the global financial crisis. It has had a lasting effect on tax receipts, here in the UK and across the world. We are sticking to our spending plans this year so that support for families and businesses remains as we secure the recovery. But from 2011-12, as growth takes hold, spending will be tighter. The Manifesto reflects the tough choices that we will make to secure Britain’s future in a way that is fair to all: • Tough choices for £15 billion efficiency savings in 2010-11. • Tough choices on cutting government overheads: £11 billion of further operational efficiencies and other cross-cutting savings to streamline government will be delivered by 2012-13. • Tough choices on pay: action to control public-sector pay including a one per cent cap on basic pay uplifts for 2011-12 and 2012-13, saving £3.4 billion a year, and new restrictions on senior pay-setting. Tough decisions on public sector pensions to cap the taxpayers’ liability – saving £1 billion a year. • Tough choices on spending: £5 billion already identified in cuts to lower priority spending. • Tough choices on welfare: our reforms will increase fairness and work incentives, including £1.5 billion of savings being delivered. • Tough choices on assets: £20 billion of asset sales by 2020. • Tough choices on tax: a bonus tax, reduced tax relief on pensions for the best off, a new 50p tax rate on earnings over £150,000 and one penny on National Insurance Contributions. 0:6
  8. 8. The Labour Party Manifesto 2010 Building the high-growth economy of the future Growth
  9. 9. The Labour Party Manifesto 2010 Growth The challenge for Britain The engine of growth is private enterprise: we will give business our full support in creating To secure the recovery and learn the right lessons wealth and jobs. Strong and from the global economic crisis, laying the foundations sustained growth is fundamental for sustained growth: reforming banks, modernising to a credible strategy for infrastructure, and as we pay down the deficit, keeping the public finances on a providing the right support to the private sector to stable long-term footing. build a diverse, high-tech industrial economy. The Tories would threaten recovery with cuts this year, and fail to To be successful, business invest in our economic future. needs stability, but to achieve stability after the seismic shock The next stage of national renewal of the global banking crisis, the governance of our economic • Secure the recovery by supporting the economy and financial institutions must now, and more than halve the deficit by 2014 through be radically reformed. economic growth, fair taxes and cuts to lower priority spending. And to support business • Realise our stakes in publicly controlled banks to secure in securing prosperity for the best deal for the taxpayer, introduce a new global future generations, an activist levy, and reform the rules for banking to ensure no industrial strategy is needed: repeat of past irresponsibility. learning the lessons from those nations that have succeeded • Create UK Finance for Growth, bringing £4 billion in developing advanced together to provide capital for growing businesses, manufacturing and leading- investing in the growth sectors of the future. edge service industries. In • Build a high-tech economy, supporting business and these countries the role of industry to create one million more skilled jobs and government is not to stand modernising our infrastructure with High Speed Rail, a aside, but to nurture private- Green Investment Bank and broadband access for all. sector dynamism, properly supporting infrastructure and • Encourage a culture of long-term commitment to the sectors of the future. sustainable company growth, requiring a super-majority of two-thirds of shareholders in corporate takeovers. Securing the recovery We have taken the tough As the economy steadily creating infrastructure and decisions to get Britain through recovers, there will be no return enterprise, accompanied by the the downturn. We have done to business as usual: financial diversification of our industrial so with fairness in mind: we institutions cannot continue the base, Britain will not emerge have not allowed the recession practices of the past. Radical from the recession ready for a created by the financial crisis change is needed. Without stronger, fairer future. to become a depression, or long-term investment in wealth- 1:3
  10. 10. The Labour Party Manifesto 2010 Growth stood aside and allowed grave this through a combination of: deficit reduction plan and to damage to be inflicted on our fair tax increases; a firm grip sustain the services that matter society as it was in the 1930s on public spending including most to families. and 1980s. The Tories argue cuts in lower-priority areas; that public spending should and strategies for growth that We will not raise the basic, be cut immediately, but this increase tax revenues and higher and new top rates of position is out of step with every reduce spending on benefits. tax in the next Parliament and other G20 government, right Over the next Parliament the we renew our pledge not to or left. If governments do not structural deficit will be cut by extend VAT to food, children’s provide support when families more than two-thirds. clothes, books, newspapers and businesses most need help, and public transport fares. We growth is set back, jobs are The huge global recession and will maintain tax credits, not lost, and the country builds up our efforts to counter it have cut them. And we have made more debts – paying a higher required us to make tough our choice to protect frontline price in the future. To cut now choices, including on tax. We investment in childcare and would push the economy back have made our choice in ways schools, the NHS and policing. into recession, not reducing the that put the greatest burden deficit but increasing it. on those with the broadest Tough choices shoulders. Bankers have On public spending, we will be We will continue to support faced a bonus tax, tax relief relentless in making sure that the economy while growth is on pensions for the best off the public gets value for money still fragile, sticking with our will be reduced, and we have for every pound spent. We targeted increase in public introduced a new 50p tax rate will overhaul how government spending over the next year to on earnings over £150,000. As works: cutting back-office sustain the recovery. Our focus part of our plan to ensure we and property running costs; for the stimulus is strategic protect frontline services while abolishing unnecessary arms- investment, putting in place halving the deficit over four length-bodies; sharply reducing the new digital, transport and years, we have announced that spending on consultancy energy infrastructures that National Insurance will rise by and marketing; and cutting will support the return to one penny. This will not happen lower-priority spend. We have sustainable growth. until next year, once growth already shown in Budget 2010 is firmly established. This is how these steps will help us to Deficit reduction and fiscal the fairest way to protect key achieve savings of £20 billion sustainability frontline services. Our National a year by 2012-13, on top of Insurance changes will mean Once the recovery is secure, the £15 billion savings that are that no-one earning under we will rapidly reduce the being delivered this year. £20,000, or any pensioners, budget deficit. We have set out will pay more. It is fairer than a clear, balanced and fair plan We will take a tough stance alternative options like VAT – to more than halve the deficit on public-sector pay, saving which we have not increased over the next four years and we over £3 billion by capping since 1997. Our commitments will stick to it. We will achieve public-sector pay rises at allow us credibly to deliver our 1:4
  11. 11. The Labour Party Manifesto 2010 Growth one per cent in 2011-12 and banking system must support If there is evidence of bonus 2012-13. We have agreed domestic businesses, including rules being evaded, we will act. tough reforms to public-sector start-ups and entrepreneurs, pensions, which will make as well as mortgages. We have We will ensure greater significant savings and ensure agreed lending targets with those competition in the banking that pensions for the public- banks in which we have a stake, sector, breaking up those banks sector workforce are secure and and there will be consequences in which the Government sustainable in the long term. for executive remuneration if currently has a controlling stake. Any government-controlled targets are not met. The proposed Office of Fair appointment involving a salary Trading review into how City over £150,000 will require Learning the lessons of the markets operate is welcome. ministerial sign-off. Savings crisis means ensuring that far We value the role of building from our tougher approach will greater responsibility is taken societies owned by their help realise a fair rate of pay for risk in the boardroom. We customers and the strength and for all those working for central will compel banks to keep more diversity that a healthy mutual government. capital and create ‘living wills’ sector brings to our financial so that should they fail there services, and we will consult on As we prepare for the upturn, will be no danger of that failure measures to help strengthen fiscal responsibility and spreading. Because the banking the sector. As one option for monetary stability will be the crisis demonstrated the global the disposal of Northern Rock, foundations on which we build. nature of financial instability, we will encourage a mutual We have made the new fiscal we will continue to work with solution, while ensuring that the responsibility framework legally our international partners to sale generates maximum value binding, and we will maintain require all banks to hold more for money for the taxpayer. our inflation target of two per and better-quality capital, cent so that mortgage rates can to ensure counter-cyclical Rebuilding our industrial be kept as low as possible. protection, and to introduce a base: new industries, new global levy on financial services jobs, new knowledge Rebuilding our banking so that banks across the world Britain is the sixth largest system contribute fairly to the society in manufacturing economy in the which they are based. The international banking world. Because of substantial system played a key role in investment since 1997, the UK In the UK the new Council for fuelling the most severe global has an excellent research base Financial Stability will monitor recession since the Second and is already strong in some and help address asset bubbles World War. We are determined world-leading sectors. But if we and financial imbalances. We to support our financial make the right decisions as a will give the FSA additional sector and for it to be a major country in the coming years – powers if necessary to employer and wealth creator, through a new industrial policy, constrain and quash executive but there will be no return to stronger infrastructure and a remuneration where it is a the excesses of the past – banks renewed partnership between source of risk and instability. will face tighter regulation. The business and government – we 1:5
  12. 12. The Labour Party Manifesto 2010 Growth can be leaders in the emerging – a lower rate of corporation emerging markets of China, industries of the future. tax to encourage UK-based India and Brazil. innovation – supporting the After the financial crisis, we will UK’s strengths in new industries We must seize the opportunity ensure that growing companies and sectors. to develop education, in can access the investment they particular higher education, need to expand. Finance must Investing in science and as a great export business. be at the service of industry, research Universities will be encouraged as new public channels are to develop international links Britain is among the best places built to deliver private funds and research partnerships, and in the world to do science, to innovative and fast-growing we want the Open University having massively increased companies. The new UK and learndirect to reach the investment in research and Finance for Growth Fund will global market in distance development as a proportion bring together a total of £4 learning. We will develop a of national income. We are billion of public funds and new gateway for the export of committed to a ring-fenced combine it with private money NHS intellectual property and science budget in the next to channel equity to businesses cutting-edge services. spending review. To help us looking to develop and grow. do better in turning research Within this, the Growth Capital Restoring full employment outputs into innovation, Fund will focus on SMEs we will provide focused We expect our growing which need capital injections of investment for Technology and economic and sectoral between £2 and £10 million, Innovation Centres, developing strengths to create at least one while the Innovation Investment technologies where the UK has million skilled jobs by 2015. Fund will focus on the needs of world-leading expertise. These jobs of the future will high-tech firms. increasingly come from the We will also support university new growth sectors in which Business investment in physical research through the Higher we are investing – low-carbon, capital will play a key role in Education Innovation Fund, digital and creative industries, a balanced and sustainable and through the development life sciences – and professional recovery. The Strategic of a new University Enterprise services in business, healthcare Investment Fund is supporting Capital Fund. The proceeds of and education. important new investment in success will flow back into the the nuclear and renewables higher education sector. There will be greater prosperity industries. We will provide for every region of the UK incentives for companies to As we create a more diverse economy. A regional growth invest through R&D tax credits, economy, we will strengthen fund will be established by and protect and increase the support for exporters to help the Regional Development size of capital allowances that us increase our market share Agencies with regional ministers help to grow key sectors such as with our traditional markets in given an enhanced role, and we manufacturing. We will ensure a Europe and the United States, will help our core cities and city competitive regime through the while breaking further into the regions to become powerhouses development of the patent-box 1:6
  13. 13. The Labour Party Manifesto 2010 Growth of innovation and growth, with We will also create a new Small establish a Green Investment a major devolution of power to Business Credit Adjudicator Bank to invest in low-carbon shape local transport and skills. with statutory powers ensuring infrastructure, with the that SMEs are not turned down Government’s stake funded by Championing an enterprise unfairly when applying to banks the sale of infrastructure assets. economy for finance. The Government will seek to match its contribution with at At the heart of our approach We will help to create a new least £1 billion of private-sector to building a strong and fair generation of entrepreneurs, investment. Britain is a commitment to ensuring that those studying support enterprise. We will The newly formed for vocational skills are offered back those who want to get Infrastructure Planning the opportunity to learn how to on, work their way up, and Commission will – within a start and run a business, while generate wealth. We will keep democratically determined the Flying Start programme business taxation competitive framework – help streamline will do the same for final-year at the same time as we increase and speed up decision-making university students. capital allowances to encourage on major projects. We now investment. propose to extend the public We will continue to simplify interest test so that it is regulation and avoid There is no substitute for applied to potential takeovers unnecessary red tape. If it is the drive and ambition that of infrastructure and utility used correctly, regulation can entrepreneurs bring. We will companies. help drive innovation, as well as support small businesses and protect workers and consumers. help with their cash flow by Broadband Britain We will seek to reduce the costs continuing our Time to Pay of regulation by more than Britain must be a world scheme that has already – £6 billion by 2015. leader in the development of through tax and NICs deferral broadband. We are investing – helped thousands of firms; 21st Century in the most ambitious plan of offering a one-year holiday infrastructure any industrialised country to on business rates for small ensure a digital Britain for all, businesses; widening support for The key to creating the extending access to every home training and apprenticeships; industries of the future and business. We will reach the and in recognising the special is renewing the national long-term vision of superfast contribution of entrepreneurs infrastructure on which broadband for all through a we are doubling the firms rely. To ensure Britain’s public-private partnership Entrepreneurs Relief lifetime infrastructure needs are in three stages: first, giving limit to £2 million. properly resourced, we will virtually every household in the work in partnership with country a broadband service of the private sector, reforming at least two megabits per second the regulation of energy to by 2012; second, making improve incentives for the possible superfast broadband private sector to invest. We will for the vast majority of Britain 1:7
  14. 14. The Labour Party Manifesto 2010 Growth in partnership with private from the West Midlands to prevent such bids benefiting operators, with Government London will be as little as passengers and taxpayers. investing over £1 billion in the 31 minutes. We will consult fully next seven years; and lastly on legislation to take forward Tackling road congestion is a reaching the final ten per cent our high-speed rail plans within key Labour priority. We will using satellites and mobile the next Parliament. extend hard-shoulder running broadband. on motorways, alongside High-speed rail is not just targeted motorway widening Because we are determined about faster journey times. including on the M25. Too that every family and business, It will free up capacity on much disruption is caused not just some, should benefit, existing intercity rail lines, by local road works: we will we will raise revenue to pay enabling more rail freight, increase tenfold the penalties for this from a modest levy commuter and local services on utilities who allow work on fixed telephone lines. And We will press ahead with a to overrun. We rule out the we will continue to work with major investment programme introduction of national road business, the BBC and other in existing rail services, hugely pricing in the next Parliament. broadcasting providers to improving commuter services increase take-up of broadband into and through London, Heathrow is Britain’s and to ensure Britain becomes a and electrifying new rail-lines international hub airport, leading digital economy. including the Great Western already operating at full Main Line from London to capacity, and supporting Rebuilding our transport South Wales. We will complete millions of jobs, businesses and infrastructure the new east-west Crossrail line citizens who depend upon it. in London adding ten per cent We support a third runway Britain needs to invest in to London transport capacity. at Heathrow, subject to strict modern, high-capacity and low- conditions on environmental carbon transport infrastructure. Rail passenger numbers impact and flight numbers, but At the heart of our growth have increased by 40 per we will not allow additional plan is the commitment to cent in the last ten years and runways to proceed at any other a new high-speed rail line, punctuality and quality of airport in the next Parliament. linking North and South. Built service are improving steadily. in stages, the initial line will We will encourage more Through our investment, link London to Birmingham, people to switch to rail with Labour has put Britain at the Manchester, the East Midlands, an enforceable right to the forefront of electric and low- Sheffield and Leeds, and then cheapest fare, while trebling carbon vehicle manufacturing. to the North and Scotland. the number of secure cycle- To promote the rapid take-up By running through-trains storage spaces at rail stations. of electric and low-carbon from day one, cities including We will welcome rail franchise cars, we will ensure there Glasgow, Edinburgh, Newcastle bids from not-for-profit, mutual are 100,000 electric vehicle and Liverpool will also be part or co-operative franchise charging points by the end of of the initial network. Journey enterprises and will look to the next Parliament. times will be slashed – those remove unfair barriers that 1:8
  15. 15. The Labour Party Manifesto 2010 Growth Corporate governance There should be a higher reform threshold of support – two- thirds of shareholders – for To build strong businesses securing a change of ownership we need skilled managers, and the case for limiting votes accountable boards, and to those on the register before committed shareholders the bid should be examined. – all with a culture of long- term commitment. We will Creating a shareholding strengthen the 2006 Companies society Act where necessary better to reflect these principles. We want Britain’s workers to The UK’s Stewardship Code have a stake in their company for institutional shareholders by widening share ownership should be strengthened and and creating more employee- we will require institutional owned and trust-owned shareholders to declare how businesses. We want to see they vote and for banks to put a step change in the role of their remuneration policies employee-owned companies in to shareholders for explicit the economy, recognising that approval. many entrepreneurs would like to see their companies in Too many takeovers turn out the hands of their employees to be neither good for the when they retire. We will review acquiring company or the firm any outstanding barriers to the being bought. The system needs formation of more employee- reform. Companies should be companies like the John Lewis more transparent about their Partnership. long-term plans for the business they want to acquire. There needs to be more disclosure of who owns shares, a requirement for bidders to set out how they will finance their bids and greater transparency on advisers’ fees. 1:9
  16. 16. The Labour Party Manifesto 2010 Prosperity for all not just a few Living standards
  17. 17. The Labour Party Manifesto 2010 Living standards The challenge for Britain In today’s world, every worker needs to be able to upgrade their skills in order to get on. As To grow together as a country, rewarding those who well as good career prospects, work hard so they can do well and look after their people want to know that their families: returning Britain to full employment, enabling living standards and quality people to get higher-paid and better jobs, and widening of life will improve. So we access to home ownership. The Tories have no plan for will enable more people to get fairness; their decisions would make our society more on the housing ladder; offer unequal and unjust. a helping hand to build up savings; and secure a fair deal The next stage of national renewal with the banks to strengthen • 200,000 jobs through the Future Jobs Fund, with a job or people’s personal finances. training place for young people who are out of work for six months, but benefits cut at ten months if they refuse A modern welfare state to take part; and anyone unemployed for more than two for all years guaranteed work, but no option of life on benefits. We will build a personalised • A National Minimum Wage rising at least in line with welfare system that offers average earnings, and a new £40-a-week Better Off in protection for all those who Work guarantee. need it, increases people’s control over their own lives, and • More advanced apprenticeships and Skills Accounts for is clear about the responsibilities workers to upgrade their skills. owed to others. Getting more • No stamp duty for first-time buyers on all house people into employment purchases below £250,000 for two years, paid for by a increases tax revenues and five per cent rate on homes worth more than £1 million. reduces spending on benefits. Our intensive help for people • A People’s Bank at the Post Office; a Universal Service out of work – starting from Obligation on banks to serve every community; a day one – has already kept clampdown on interest rates for doorstep and payday unemployment more than half loans. a million lower than predicted during the recession, saving As the British economy returns Our job guarantees will £15 billion over the next five to growth, we will ensure that put an end to long-term years. everyone who is willing to unemployment and a life on work shares fairly in renewed benefits. No one fit for work We are determined that no-one prosperity. We will support the should be abandoned to a life should be scarred for life by recovery so that we see a swift on benefit, so all those who can joblessness. No young person return to full employment, with work will be required to do so. in Britain should be long-term more chances to get on at work At the same time, we believe unemployed: those out of work and a fair distribution of growth that people should be able to for six months or more will throughout Britain. earn enough to live and be be guaranteed employment better off than on welfare. 2:2
  18. 18. The Labour Party Manifesto 2010 Living standards or training through the £1 radically reforming how Job Departments, within their billion Future Jobs Fund, with Centre Plus helps lone parents: allocated budgets, to follow mandatory participation after providing extra help with the lead of those who already ten months. The fund will childcare, training and support pay the Living Wage. This will support 200,000 jobs. All those to find family-friendly work, be supported by measures to who are long-term unemployed while requiring those with address high pay in the public for two years will be guaranteed children aged three to take steps sector - reducing pay-bill a job placement, which they will to prepare for work and actively pressure in the years ahead. be required to take up or have to seek employment once their benefits cut. their youngest child is seven To ensure that work pays, years old. we will guarantee that when More people with disabilities someone who has found it and health conditions will Our goal is to make difficult to get into work comes be helped to move into work responsibility the cornerstone off benefits, their family will from Incapacity Benefit of our welfare state. Housing be at least £40 a week better and Employment Support Benefit will be reformed to off. This is our Better Off in Allowance, as we extend the ensure that we do not subsidise Work guarantee: together the use of our tough-but-fair work people to live in the private National Minimum Wage and capability test. This will help to sector on rents that other tax credits should always make reduce the benefit bill by £1.5 ordinary working families could work pay. And we will consult billion over the next four years. not afford. And we will continue on further reforms to simplify We will reassess the Incapacity to crack down on those who try the benefits system and make Benefit claims of 1.5 million to cheat the benefit system. sure it gives people the right people by 2014, as we move incentives and personal support those able to work back Making work pay to get into work and progress in into jobs. their jobs. The National Minimum Wage is one of our proudest For those with the most serious We want everyone to have achievements. It protects conditions or disabilities who better prospects in work. and sustains millions of low- want to work there will be a We will give the Low Pay paid workers. To ensure that new guarantee of supported Commission additional the lowest paid share fairly employment after two years on responsibilities to report in rising prosperity, the Low benefit. We will seek to ensure on productivity and career Pay Commission’s remit will that disabled people are able to progression in low-skilled, low- have the goal of the National lead dignified and independent paid sectors, bringing together Minimum Wage rising at least lives, free of discrimination and representatives from the in line with average earnings with the support to which they business community and social over the period to 2015. are entitled. partners. To underline our commitment The lone parent employment to helping the lowest paid rate has increased by over 12 we will ask all Whitehall per cent since 1997. We are 2:3
  19. 19. The Labour Party Manifesto 2010 Living standards Getting ahead: investing Improving your living Fairness at work in you standards We will strive to ensure fairness As we restore full employment Our aim is to put more wealth at work for all employees, to the British economy, we in the hands of the British continuing our crackdown will seek to make work more people. We have done all we on exploitative gang-masters fulfilling and secure. That can to keep mortgage rates and rogue employers. In all means helping people to low – at 0.5 per cent during sectors the law must be upheld, improve their skills. this recession compared to 15 properly enforcing safety and per cent in the 1990s – and employment rights, and tackling We have rescued the will continue to do so in the tax avoidance. We will extend apprenticeship system future. The direct tax and the licensing approach to labour supporting more than 250,000 benefit measures introduced providers in the construction places a year, and we will since 1997 mean that in 2010- industry if the evidence now expand technician-level 11, households will be £1,450 shows that is the best way to apprenticeships to ensure a year better off on average. A enforce employment rights. We Britain has the skills it needs for family with one child and one have strengthened HMRC’s the future. person working full time will enforcement of the minimum have a minimum income of wage. In future it will co- We have legislated for a right £310 a week in October 2010 - operate more closely with local to request time for training 27 per cent higher in real terms authorities to enforce minimum and will continue to invest in than in 1999. Tax credits will be wage legislation. We are workplace training through increased not cut. enacting the Agency Workers Train to Gain. New Skills Directive to offer additional Accounts will enable every As family budgets are under protection to agency workers in worker to make choices that greater pressure, we will do relation to pay and conditions. drive improvement and quality more to help people with the in the skills system. Accounts cost of living. Council Tax New legislation and the will help learners know what increases have fallen to their Equality and Human Rights training they are entitled to, the lowest ever rate and we expect Commission will ensure that level of funding available and them to stay low. There will people are not held back at the benefits of training for their be more help with energy bills work because of their gender, careers. But good work is about through the Social Tariff and age, disability, race and more than just skills. Stronger Winter Fuel Payments, and we religious or sexual orientation. employee engagement improves will work with the regulator to The new Equality Act will be innovation and productivity: we promote greater competition enforced, promoting fairness will continue to promote more and diversity in the supply across our society. The public effective employee engagement of energy to ensure falling duty to promote equality of in the workplace. wholesale prices get passed onto opportunity is being extended. households in lower bills. We will encourage employers to make greater use of pay reviews and equality checks to eliminate 2:4
  20. 20. The Labour Party Manifesto 2010 Living standards unfair pay gaps, including Our highly popular Home Buy buy. We believe local authorities inequalities in pay between men Direct scheme will continue. should be able to play their and women. We will work with Housing part in providing social Associations to develop a new housing in the future; and we Modern trade unions are an form of affordable housing will reform the council house important part of our society targeted at working families on financing system to enable and economy, providing modest incomes who struggle local authorities to maintain protection and advice for in the private sector and rarely properties at the Decent Home employees, and working qualify for social housing. This standard and to build up to for equality and greater will focus on enabling working 10,000 council houses a year by fairness in the workplace. We people to rent an affordable the end of the next Parliament. welcome their positive role in home at below market rates Tenant involvement in the encouraging partnership and while they build up an management of social housing productivity. equity stake. properties will be strongly encouraged. More home ownership We have acted decisively to make repossession the last Better housing Owning your own home is the resort, helping over 330,000 aspiration of most families. We This Government has led the families stay in their homes so want as many people as possible way in making sure that British that repossessions are running to share in the benefits of home homes are greener homes at around half the rate of the ownership, and to have a stake through our world-leading early 1990s recession. We will in an affordable home. That commitment to all new homes now strengthen regulation to everyone has access to a decent being zero carbon by 2016 ensure consistent standards home at a price they can afford and the construction of new of consumer protection from is a central Labour ambition. eco-towns, which will have repossession, making the FSA the highest standards of green responsible for the regulation We will widen home ownership: living yet seen in Britain. of all mortgages. This means over 160,000 households have transferring second charge been supported into ownership Local authorities now have loans such as debt consolidation through government action greater flexibility over the loans, which are often issued since 1997. We will exempt allocation of social housing in by sub-prime lenders, into purchases below £250,000 order to promote mixed and the FSA’s tougher regime – from stamp duty for the next sustainable communities. We guaranteeing equal protection two years, benefiting more will guarantee the three million for homeowners. than nine out of ten first-time households who rent from a buyers. This will be paid for by private landlord the right to We are investing £7.5 billion increasing stamp duty to five a written tenancy agreement over two years to 2011 to build per cent for homes worth more and access to free and impartial new houses, delivering 110,000 than £1 million. advice; and we will establish additional energy-efficient, a new National Landlord affordable homes to rent or Register. 2:5
  21. 21. The Labour Party Manifesto 2010 Living standards We are committed to ending Gateway account for people on banking, we will transform rough sleeping by 2012, and lower incomes will be available the Post Office into a People’s we will tackle the problems to over eight million families Bank offering a full range of faced by homeless people with from July 2010, providing a competitive, affordable products. multiple needs. We will provide match of 50p for each £1 saved This will help sustain the homeless 16 and 17 year olds up to a limit of £300. We will network and boost competition with Foyer-based supported extend this approach even in banking. The universal postal accommodation and training further, giving a boost to savings service delivered by the Royal including help with parenting for more people on middle Mail connects and binds us skills. Once there is enough incomes. To help encourage together as a country. We are provision to provide universal the savings habit among firmly committed to the 28 coverage we will legislate to young adults, we will develop a million homes and businesses change the law so that for 16 matched savings account for all across the country receiving and 17 year olds the right to 18-30 basic-rate taxpayers, as mail six days a week, with the housing is met solely through set out in the Budget. promise that one price goes supported housing. everywhere. The Royal Mail For the next generation we will and its staff are taking welcome Our regeneration policies protect – not cut – the Child and needed steps to modernise have transformed previously Trust Fund – the world’s first work practices. For the future, neglected communities, and universal savings policy for continuing modernisation and our great cities are among young people, already giving investment will be needed by the the best in the world. We will 4.8 million children a nest Royal Mail in the public sector. make savings in regeneration egg for the future. We will funding and focus on tackling contribute an additional £100 We will introduce a universal worklessness, transforming the a year to the Child Trust Funds service obligation on retail prospects of those areas most of all disabled children. banks, so that all consumers disconnected from the wider with a valid address have a economy. A new deal on personal legal right to a basic bank finances account, and a right to redress Support with saving if this is refused. Banks will In the post-crisis economy, we have to publicly report on We will do more to support will fight for consumers and the extent to which they are saving and spread wealth across stand up to vested interests that under-serving communities. more families. The annual treat people unfairly, whether in And we will introduce a new limits for Individual Savings the private or public sector. We levy on the banks to help fund Accounts have been raised to want a fair deal for all. a step-change in the scale of £10,200 and will be index- affordable lending by third- linked. The Pension Credit The Post Office has an sector organisations, including capital disregard will increase invaluable role to play in a new partnership with the Post from £6,000 to £10,000. our communities and in Office, offering an alternative serving local businesses. To to loan sharks and high-cost The pioneering Savings promote trusted and accessible doorstep lending. 2:6
  22. 22. The Labour Party Manifesto 2010 Living standards Over the lifetime of the next Parliament, as more affordable lending becomes available, we will clamp down on the interest rates and other fees charged by instant loan companies and payday or doorstep lenders, tackling the very high cost lending that hits low-income communities hardest. We will introduce a single regulator for consumer finance to restore confidence and trust with responsibility for the supervision of all unsecured lending being passed to the Financial Services Authority. And new rules governing how financial products are sold will be introduced with a crackdown on unfair terms in contracts. Finally, we will seek to promote competition in high-street banking by introducing portable bank account and cash ISA numbers that stimulate switching where consumers are dissatisfied, along with consistent, easily understood labelling of financial products. 2:7
  23. 23. The Labour Party Manifesto 2010 Excellence in education: every child the chance to fulfil their potential Education
  24. 24. The Labour Party Manifesto 2010 Education The challenge for Britain because of sustained investment and reform, it is just one in twelve, with standards rising To raise standards, promote excellence and narrow fastest in disadvantaged areas. achievement gaps by giving the best school leaders Nearly 100,000 more children and federations more schools to run, and by giving each year leave primary school parents new rights and clear guarantees of high-quality secure in reading, writing and teaching and support for every pupil — underpinned by maths. School buildings, once increased spending. The Tories want to gamble with characterised by leaking roofs our children’s education, putting school improvement and second-class facilities, are at risk and taking away the guarantees of an excellent being transformed. The quality education for all. of teaching is the best ever and teachers have the status and respect they deserve. The next stage of national renewal • Spending increased on frontline Sure Start and free Frontline spending on Sure childcare, schools and 16-19 learning. Start, childcare, schools and 16- 19 learning will be increased, • An expansion of free nursery places for two year olds safeguarding our priorities and 15 hours a week of flexible, free nursery education such as an additional 41,000 for three and four year olds. teachers and 120,000 teaching • Every pupil leaving primary school secure in the basics, assistants. But funding will not with a 3Rs guarantee of one-to-one and small-group rise as fast as in recent years, tuition for every child falling behind; and in secondary making tough choices necessary school, every pupil with a personal tutor and a choice of to focus resources on the front good qualifications. line, with £950m saved through collaboration and efficiency • A choice of good schools in every area – and, where in back office functions and parents are not satisfied – the power to bring in new procurement and £500m from school leadership teams, through mergers and take- quangos and central budgets. overs, with up to 1,000 secondary schools part of an accredited schools group by 2015. The range and reach of • Every young person guaranteed education or training innovative school providers will until 18, with 75 per cent going on to higher education, increase, spreading excellence or completing an advanced apprenticeship or technician to all schools. We will strive to level training, by the age of 30. get the best people into teaching and give parents new rights Education is the key to personal background or circumstances. to secure good schooling for fulfilment, economic prosperity their children. Participation and social mobility. Our goal In 1997, half of our secondary in post-school learning will is educational excellence for schools were below the basic expand, with more and better every child, whatever their minimum standard. Now, apprenticeships, improved 3:2
  25. 25. The Labour Party Manifesto 2010 Education vocational education, and wider greater choice over when people into teaching, from the access to higher education. children start school. We will most committed graduates also explore allowing parents to to the highest calibre career The early years carry over their free hours of switchers. Teach First will be nursery education from year to extended to attract more of the Good play-based early learning year. Childcare vouchers will best graduates into teaching, gets children off to a flying start, be retained, with all families including teaching in primary so that they begin school ready receiving income tax relief at schools. to learn and achieve. We have the basic rate, and childcare expanded high-quality early standards will be raised by a We have invested heavily in the learning and childcare, which more qualified workforce. professionalism and expertise also supports parents to work of the workforce, and will build when they have young children We want to strengthen parental on this success with a new right and improves family living engagement with Sure Start for every teacher to continuous standards. Children’s Centres. Some professional development; voluntary and third-sector in return they will have to There are now over 3,500 organisations already run demonstrate high standards Sure Start Children’s Centres networks of Centres, and of teaching to maintain their and every three and four year we will now pioneer mutual licence to practise. We will old has access to free nursery federations running groups of promote new Teacher Training education, which is rising to local Children’s Centres in the Academies and £10,000 15 hours a week. Children’s community interest. ‘golden handcuffs’ to attract Centres will become the the best teachers into the most bedrock of a new national Excellence for all: every challenging schools. under-fives service: ‘one-stop school a good school shops’, open to all families, While the number of low- offering excellent affordable Every parent wants their child performing schools has childcare, healthcare and to attend an excellent school – decreased dramatically, we parenting advice. The number with the best possible teaching cannot tolerate any coasting of free early learning places for and facilities. So for pupils and or persistently poor schools. disadvantaged two year olds will parents we will set out in law Over the last decade, we have be expanded, on the way to our guarantees of the excellent developed a cadre of world-class long-term goal of universal free education and personal support head teachers, radically opened childcare for this age group. they can expect. up our school system to new providers, and worked with local Flexible childcare No school can be better than authorities and school governing the quality of its teachers. We Busy working parents will bodies to drive up standards. have the best generation of have more flexibility over teachers ever, supported by the hours their children have Our task now is to devolve teaching assistants and the access to nursery education, more power and responsibility wider workforce. But we must such as taking them over two to strong school leaders and continue to get the very best full working days, as well as to spread excellence, with 3:3