Since Old Labour was set up and funded by the trade unions, close relations with the trade unions were essential. Resultantly, the Labour party argued for policies which benefited the working class, such as better working conditions and the establishment of a minimum wage.
Another policy supported by old labour and introduced by Attlee was nationalisation of the major industries such as iron, steel, gas and coal. This policy directly complied with clause IV regarding the “common ownership of the means of production”.
Progressive taxation was a central concept in old Labour’s manifesto and was known as “clobber the rich”. Again, relating back to the entire ethos of the labour party, equality, it was a strongly supported notion that the rich should help pay towards raising living standards among the poor. At one point in power, Labour imposed a tax rate of 82% on the incomes of those deemed to be “very rich”.
Pre-1980 the greatest proportion of the public was classified as working class. Since old Labour represented the workers, the party had a large electorate. However, in 1980 a changing social demographic meant the proportion of the working class population decreased and instead Britain became a country in which the middle class formed the majority.
In 1981, after the election of Margret Thatcher, the party was divided over how to adjust its policies. Half the party believed Labour should alter its policies so that they belonged in the centre of the political spectrum, and thus appeal to the new majority middle class electorate. However, this section of the party lost the internal argument this resulted in many Labour M.P’s leaving the party to form the Social Democrat Party. The remainder of the Labour party, led by Tony Benn and Michael Foot, pushed the party’s policies to the far left of the political spectrum. The manifesto for the 1983 general election later became known as the longest suicide note in history; Labour gained only 27.6% of the vote in this election.
After the disastrous figures of the 1983 election, the Labour party finally acknowledged that the change in the social composition of Britain meant that traditional socialist principles weren’t popular or applicable to modern society. The far left policies of 1983, such as unilateral disbarment were abolished. Figures such as Neil Kinnock, Tony Blair and Gordon Brown created “third way” policies which were intended to suit the people rather than follow one particular ideology. The introduction of these policies, and in particular, the abolition of clause IV in 1995, signalled the end of “old” Labour and the beginning of New Labour.
Economically, New Labour supported the Thatcher policy of privatisation. However, this was on the condition that a private company was successful in providing public services. An example of this is the privatisation of the London Underground. Now known as Public Private Partnerships, ideas such as national trust hospitals and academy schools, in which private companies partially fund public services, form a large part of the New Labour manifesto.
From the Liberal Democratic trail of thought, New Labour supports many constitutional reforms, such as devolution of power and reorganisation of the House of Lords. New Labour has already funded the new Scottish parliament and implemented other laws supported by the Liberal Democrats such as the Freedom of Information Act.
One of the few policies which remains from traditional socialist principles of “old” Labour is the aim of social justice. New Labour defines this as helping the “excluded” by improving state education and increasing benefits for working families on low incomes.
In conclusion, I believe that to a great extent Labour has abandoned traditional socialist principles, the most publicised example of this being Tony Blair’s very poor relationship with the Trade Unions; the same organisations that initially formed and funded “old” Labour. However, the one major policy which remains intact is Labour’s commitment to the welfare state, even if this involves partial privatisation of state services such as schools and hospitals.
