Tuesday 7 October 2008

The stakeholder society: back to the future?

We'll find out by breakfast time the details of a likely £50 billion taxpayer investment to bail out Britain's banks.

Nick Robinson is ready to call the end of an era - that this will be a day which will "end the City of London's mesmerising hold on the political classes for the past two decades", going back to the 'big bang' deregulation of financial markets in 1986.

We'll see.

The power of the City was an important part of the reason why New Labour dropped its flirtation with its first big idea - "the stakeholder society" a decade later.

David Kynaston and Richard Roberts offered a good New Staesman account of the rise and rapid fall of the stakeholding idea.

The wheel turns again. Tomorrow, we will find out what we might expect for this massive public stake in this new public-private partnership to save the financial sector.

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