The Dawn of New-Old Labour?

John McDonnell pledges new economics for old ideas

With the Labour leadership elections (finally) over, our news has now been flooded with the policies and ideals of our newly elected leader of Her Majesty’s Opposition, but more interestingly, our newly appointed Shadow Chancellor. Kick-starting his tenure with some bold headlines and ideas, it seems that a potential Labour government has its eyes firmly set on reforming the Bank of England as well as giving the Department of Business more economic power and a greater role in stimulating growth, instead of the ‘stuffy’ treasury.

Chris Leslie, the previous Shadow Chancellor, urged McDonnell to ‘tone down his negative rhetoric to business’ and it seems the competence and credibility of Labour’s economic policy is still under serious question by vast swathes of the British public. In a recent survey conducted by ComRes the public put the Conservatives up 12points on Labour to 42percent, whilst Mr Corbyn’s Labour stands fairly firmly on 30percent.

tone down his negative rhetoric to business

Whilst against the backdrop of the Conservative surge in the polls, McDonnell is facing pressure from the left, particularly from the trade union leaders, encouraging him to not ‘undermine [Jeremy Corbyn’s] democratic right to lead the Labour Party’. The pressure from both sides is surely to cause further cracks to appear in the Corbyn administration, which has already seen U-turns or setbacks on NATO and the renewal of Trident.

In stark contrast to Corbyn, and the credibility of his mandate, McDonnell has commented that he understands the need to bring the deficit under control, with The Guardian reporting that ‘he will vote for the new charter of budget responsibility as set out by George Osborne’. As for his views on broader institutions such as the bank of England, McDonnell has already commented that it must be reformed, instead focusing on broader economic growth as opposed to merely following its mandate to maintain a 2% inflation rate.

he will vote for the new charter of budget responsibility as set out by George Osborne

With various Blairite and ex ministers coming out against, or at least dubious about the new economic policies, it is no wonder stress is beginning to show under Corbyn. All that we have now is to see where the next few months will take us and any future surprises (or not) that Corbynomics has in store for us!