In his contribution to the Fabian Society's ongoing series of leadership essays, he argues Labour needs a more distinctive approach to the economy, and calls for a broader reformed capitalism that involves more than the financial services. Only by getting this right will Labour have the ammunition to take on the coalition’s brutal cuts regime.
"An absence of a shared creed, of an ideology that can unite our movement, is a problem for Labour. In the good times it matters less... but when historic choices need to be made it is a weakness... Voters – many of them our voters – spent the election wondering whose side we were really on."
Read the full essay over at the Fabian website.
He also writes that Labour failed to seize its moments in power, particularly after the financial crisis. “We saved the City of London but we did not reform it”, he says.
”Under Mrs Thatcher the public benefits of North Sea Oil were used for tax cuts. The Norwegians used theirs to build a sovereign wealth fund. But we did not learn the lesson of that history. New Labour changed the direction of travel from the Conservative years but did not change the motor, which remained the financial services sector. The benefits were not distributed to the wealthiest in society, as under Mrs Thatcher and Nigel Lawson. We helped the poorest and those on modest incomes. But we need a model of economic growth that is right for our time. The truth is that outside the south-east and the London magnet, there was not enough capitalism. The banks received our money in the bail our but have not re-invested it in our country. And now there is a Conservative government that is confused on the banks, hard on the poor and threatening to growth.”
Ed Miliband with complete the set early next week, and the full collection will be available online.