Skip to main contentSkip to navigationSkip to key eventsSkip to navigation

Labour conference: Tom Watson says capitalism is not the enemy - as it happened

This article is more than 7 years old

Rolling coverage of all the developments from the Labour conference in Liverpool, including speeches from Sadiq Khan and Tom Watson

 Updated 
Tue 27 Sep 2016 13.15 EDTFirst published on Tue 27 Sep 2016 04.05 EDT

Live feed

Key events

Tom Watson's speech - Summary

Tom Watson’s speech was the most substantial anyone has delivered to the Labour conference so far. I’m sorry it has taken a while to post a summary, but Labour were slow sending out the transcript. Anyway, it’s worth it. Here are the key points.

  • Tom Watson warned Labour against “trashing” the record of the Blair and Brown governments. In a comment clearly aimed at some of Jeremy Corbyn’s supports, which received strong applause, Watson said:

I don’t know why we’ve been focusing on what was wrong with the Blair and Brown governments for the last six years, but trashing our own record is not the way to enhance our brand.

  • He told Labour not to treat capitalism as the enemy. This passage seemed to be aimed at some on the Corbyn wing of the party too.

In the past, big businesses were too easily cast as predators. We meant to say that we would stand up to the abuse of corporate power as the Tories never will. But we ended up sounding like we were anti-business; anti-prosperity; anti-success. We’re not and we never have been. Capitalism, comrades, is not the enemy. Money’s not the problem. Business isn’t bad. The real world is more complicated than that, as any practical trade unionist will tell you. Businesses are where people work. The private sector’s what generates the money to pay for our schools and hospitals.

We can afford the best health service in the world because we are one of the most prosperous countries in the world. That’s a fact and we forget it at our peril. And I don’t say this because it’s what wins elections, I say it because it is true. And people know that it’s true. And that’s why it wins elections.

  • He said he expected an early general election.

I’m sure there’ll be a general election soon. The more often Theresa May says it won’t happen, the more certain I am that it will. And, comrades, we need to be ready.

  • He said Labour could win a general election by building on its achievements in local government.

We owe the British people - our people - an alternative to a government that doesn’t care and a Prime Minster they didn’t vote for. You keep hearing that Labour can’t win, well we can, and we will. And I’ll tell you how we’re going to win: we’re going to win through local government because that’s how we always win.

Our councillors are the engine of Labour’s electoral machine. It’s Labour councilors all over the country who are our leaders and ambassadors in local communities. Our councillors and our trade unions: these are the rocks our movement’s built on.

  • He lavished praise on Labour’s leaders in local government and in the Wales.

What a champion [Sadiq Khan] is. What an outstanding representative of our great national capital and our historic socialist party - still relevant, resonant, and winning elections in one of the most dynamic cities on earth.

And in Bristol we have got marvellous Marvin, who you have just heard from.

What a hero. And in our other great conurbations next May: Andy Burnham,

Siôn Simon and Steve Rotherham are going to follow Sadiq’s and Marvin’s example. And Carwyn in Wales. Reminding people what Labour government looks like - how innovative and radical we can be. How growth and prosperity, social justice and fairness all go hand in hand under Labour. And not just doing the right thing - not just compassion - but doing the thing right. Competence.

Watson’s comments about people like Sadiq Khan and Marvin Rees contrasted strongly with what he had to say about Jeremy Corbyn. He praised Corbyn’s performance at the last PMQs, when he attacked Theresa May over grammar schools, but otherwise his praise for Corbyn was conspicuous by its absence.

  • He confirmed his plan to set up an independent commission on the future of work.

In the next Labour government we must judge ourself on our ability to redraw that pie-chart. The problems of inequality aren’t new, but the solutions will need to be. So I’ve put together an independent commission on the future of work, to start influencing policy right now - from opposition.

It will be chaired by Helen Mountfield QC, joined by a world-class team including Naomi Climer, the first ever female President of the Institution of Engineering and Technology, Professor Michael Sandel, Jon Cruddas, Lord Jim Knight and many more. We’ll feed into Jon Trickett’s work on building a targeted Industrial Strategy and we’ll report back to you next year.

  • He claimed that the Tories only cared about money and power.

Of the real British values the Tories can never understand; of compassion and fairness alongside enterprise and fierce independence. This is no nation of ideologues. We know that and that’s our advantage over the Tories.

They’re blinded by money and power. It’s all they care about. And the old lady next door; and your neighbour’s children; and that migrant family working 60 hours a week and paying taxes: all these can go hang to the Tories. Other people don’t matter. Well that’s not the British way.

Yes, British people want a fair chance for themselves and their families. They want their hard work rewarded. But they also care what happens to the other children in the class, the other people at the bus stop, the others in the lengthening queues waiting months now for life-saving operations.

That’s all from me for today.

Thanks for the comments.

Tom Watson addressing the Labour conference. Photograph: Christopher Furlong/Getty Images
Share
Updated at 

Jeremy Corbyn's interviews - Summary

Jeremy Corbyn has done a round of interviews with broadcasters this afternoon. Here are the key points.

  • Corbyn said he would hold a shadow cabinet reshuffle next week. It would not be this week, he said, but it would come before parliament resumes a week on Monday.

I will be appointing ahead of the return of Parliament to ensure that we have an effective shadow cabinet. We are filling the positions, but we are not announcing anything this week. It is all going to come later on.

Corbyn also hinted that the reshuffle might not involve filling all 60-odd vacant frontbench jobs. He said he would “develop a team of the size that we need”. But there is no absolute requirement for the shadow ministerial team to be as large as it was. In the past oppositions have functioned with fewer shadow ministers than they normally have now.

  • He claimed that “lots” of MPs would return to the front bench. “Lots of MPs are coming back,” he said.
  • He restated his opposition to bringing back full shadow cabinet elections. Asked if he would agree to them, he said:

I didn’t vote for it. I’m open to the idea and I understand the argument behind it, but I also think the leader of the party must have the ability to form the general policy areas.

But, despite saying the party leader had to have some right to determine policy direction, he also reaffirmed his commitment to extending party democracy.

I think intrinsically, members need to have much more say in policy making for the longer term. That means we have to engage much earlier on.

  • He said there might be a “special meeting of the policy forum” later this year to consider proposed changes to party rules. Labour’s national executive committee is expected to discuss these proposals, covering policy making and the selection of the shadow cabinet, at a meeting in November.
  • He said he accepted that Labour’s policy was to back Trident - while also suggesting it could change in the future. He also reaffirmed his personal opposition to nuclear weapons.

The policy the party has from previous conference decisions does support the renewal of Trident. As you know, I never agreed with that decision ... That’s the existing party policy. I cannot predict what will happen in the future, who will decide what they want to bring forward to conference.

He also said that he wanted to “lead this party in a direction will bring about a nuclear free world.” (In their speeches to the conference yesterday Clive Lewis, the shadow defence secretary, and Emily Thornberry, the shadow foreign secretary, both stressed Labour’s commitment to multilateral nuclear disarmament - suggesting that this might be a compromise policy around which Labour’s pro and anti-Trident factions could coalesce.)

Asked if he “accepted” party policy, he replied:

Of course I know what the party policy is and of course I understand the decision that was taken. Does it mean there are people in the party who have a moral objection to nuclear weapons? Yes there are.

  • He said he never wanted to use a nuclear weapon. Asked if he would fire a nuclear weapon, he replied: “I never want to use a nuclear weapon.” This is as less provocative answer than the one he gave last year, when asked on Today if he would press the nuclear button. On that occasion he bluntly said no, prompting pro-Trident MPs to claim that he had rendered the nuclear deterrent worthless.
  • He played down the nature of the row with Clive Lewis about the wording of his speech.

It’s perfectly normal that there be discussions with shadow cabinet colleagues on statements they are going to make, and that’s what happened. It was discussed and that’s what came out of it. I don’t see it as a huge problem, I don’t see it as a huge issue.

  • He rejected claims that Sadiq Khan’s speech was directed at him.

How is that a lecture to me? It was a lecture to everybody that we have to come together to get in power ... What he was saying was we have to win a national election. On that we are all agreed.

  • He said it was wrong to treat socialism as a dirty word.

Socialism is the basis of what brought the Labour Party about, it’s the basis of what forms our opinions. It’s actually the basis of why we got the NHS. The Labour Party has won lots of elections ...

Stop treating the word `socialism’ as if its some sort of bad word we should only talk about late at night. It’s an ideology that’s based on the principle that everyone should contribute and those in need should benefit the most from our common endeavours.

  • He rejected claims that Labour was not reaching out to ordinary voters.

How is a message that is about making sure that everyone in this country has a living wage, that there is real job security, that we end zero hours contracts, that we invest in infrastructure, railways and broadband, schools and hospitals – how is that not a message that reaches out to millions of people all across this country?

  • He said that he had changed the political agenda.

I tell you what – the political agenda has changed – Everyone’s against austerity now, they weren’t a year ago.

  • He said he would tackle concerns about immigration partly by trying to standardise living standards across Europe.

What I would do about immigration is try to bring about a degree of co-terminosity, a degree of equality of work conditions and wages across Europe.

Jeremy Corbyn. Photograph: Peter Nicholls/Reuters
Share
Updated at 

Angela Rayner vows to fight extending grammar schools with 'every breath in my body

Angela Rayner, the shadow education secretary, spoke earlier. Here are the main points from her speech.

  • Rayner vowed to fight Theresa May’s plans for more grammar schools “with every breath in my body”.

If Theresa May is talking about meritocracy, let me tell her that every child has merit.

That is why I will fight, with every breath in my body, against her new grammar schools. She has produced no evidence that grammar schools help social mobility. Selection - or segregation as it should be called - entrenches division and increases inequality ...

Conference, Theresa May is telling fairy tales about social mobility and opportunity. Selection is toxic. It tells a clever child they are stupid, strips a child of self-esteem and embeds inequality. Every child has potential. Every child can succeed. No child should be left out or left behind.

Conference, Tony Blair talked about education, education, education. Theresa May wants segregation, segregation, segregation. And our Labour Party will fight it, starting on Saturday when we launch our nationwide campaign against more grammar schools. We’re going to take the fight to the Tories and I appeal to all my MP colleagues to help lead this fight. Together, we can defeat Theresa May.

  • She confirmed that she was setting up a childcare taskforce.

That is why I am proud to announce today, Labour’s new childcare taskforce, to help us transform early years provision for every family in the 21st century. And I’m delighted that Liz Snape, the deputy general secretary of Unison, who you heard from this morning, has agreed to chair that taskforce, working with Labour’s shadow education team and childcare experts.

Our aim will be to provide the care and support for every child to fulfil their potential, and to help parents back to work. Access to affordable, high-quality childcare and early years learning is one of the most effective drivers of social mobility. Getting it right will improve the life chances of countless children across the country. That must be our mission.

Angela Rayner addressing the Labour conference. Photograph: James Gourley/REX/Shutterstock
Share
Updated at 

John McDonnell, the shadow chancellor, told a fringe meeting at the Labour conference that he had been told not to describe his approach as “business friendly”.

He was trying to explain what being an “entrepreneurial state” means. The concept has been developed by the economist Mariana Mazzucato, who is advising Labour, and McDonnell said she had told him it was not just about favouring business.

Mariana Mazzucato is advising us on how we become an entrepreneurial state. What does that mean? It means working alongside the wealth creators - entrepreneurs and workers themselves - to see what assistance we can give in the creation of products, the creation of markets. And in that way you create the prosperity.

What she says is, whatever you do, don’t describe yourself as business friendly. That isn’t what this is about.

This is about making sure that we are working in partnership, but laying the climatic conditions in which entrepreneurial talents can be developed. I think that’s the way we are going.

There will be other times where there needs to be a much more direct, interventionist approach by government - rather than just laying the foundations which people can build upon, there might be times when we have to intervene, like we did with steel, which means a much more direct intervention by the state.

Duncan Enright, Labour’s candidate in Witney, where there will be a byelection following David Cameron’s resignation, addressed the conference earlier. He said the Witney Labour party had more members than all the other parties put together.

Over the last five years Labour has won seat after seat on our councils and we now have amazing councillors right across west Oxfordshire, all working in their communities. Since May 2015, and particularly since Jeremy Corbyn became our leader, our membership has grown hugely and we now have many more members in Witney than the Conservatives, the Liberal Democrats and, in fact, more than all of the other parties put together.

Enright is unlikely to win in the byelection on Thursday 20 October. At the last election Cameron had a majority of more than 25,000.

Tom Watson, Labour’s deputy leader, has just started his speech now. I will post a summary once I’ve got the full text.

Labour has not yet announced the results of the vote on the NEC rule changes, but they have been approved, by colleague Jessica Elgot reports.

I understand that, as expected, #Lab16 delegates have voted to approve NEC rule changes - huge implications for power balance on committee

— Jessica Elgot (@jessicaelgot) September 27, 2016

The Labour MP Tom Blenkinsop has criticised for Momentum for staging their “The World Transformed” alternative conference (or festival, as they describe it). He told a fringe meeting:

When we talk about unity, it’s very hard when you have got the circus down the road where people set up and pitch up down the road deliberately to undermine and show explicitly the division. That’s an organisation which isn’t actually affiliated to the Labour Party but has some sort of role. There is a divide.

My colleague Dave Hill, who has written a book about Sadiq Khan’s mayoral election campaign, has written an article with his take on Khan’s speech.

Hill says Khan, and other Labour mayors, could develop a champion an alternative version of Labour politics to Jeremy Corbyn’s.

By this time next year there will almost certainly be Labour “metro mayors” in post in Liverpool and Birmingham as well as Manchester, with varying powers over their cities and surrounding areas. They, along with Carwyn Jones, the First Minister of Wales, will be the most powerful Labour politicians in the UK: high profile and, hopefully, on the road to becoming highly effective at implementing Labour programmes in new forms of regional government.

Their progress, and that of Labour leaders of other big cities - Bristol, Leeds,Newcastle and more - in the years leading up to 2020 will depend less on the endeavours of their party’s national leader than on their marshalling of the resources they have at their disposal and their ability to persuade, enthuse and cajole a range of interest groups – housing providers, public sector bodies, educators, voluntary organisations, businesses and so on - to pursue progressive common goals. In the longer term, they will want to talk to the Conservative national government into giving them greater leeway to do things their way in the post-Brexit national interest.

Collectively these governing Labour politicians could, in effect, represent a parallel, much broader Labour Party than the narrow one Corbyn leads; a very different political entity sharing the same name.

Rajeev Syal
Rajeev Syal

A left wing member of Labour’s ruling body who took to the the stage at the party’s annual conference to protest at impending rule changes has voiced concern that it could put the right wing of the party in control, pitting it against Jeremy Corbyn.

Christine Shawcroft said it was a failed attempt to force a card vote on rule changes which she says could allow anti-Corbyn MPs to dominate the national executive committee.

Shawcroft wanted to to kill off a proposal to hand seats on the NEC to Scottish and Welsh politicians. At a meeting tonight, the NEC will meet again to choose the body’s new chair, a crucial post to controlling the NEC for the next year, she said.

There has been an attempt by the right of the party to control the ruling body. If these changes go through, I think this could be used to change the structures of the party to give Jeremy’s opponents more say.

It is likely to go through, but at the moment there is a delicate balance of votes. I would like to see more people voted on the NEC from constituency parties. The post of chair will be crucial to getting such rule changes through.

Paul Flynn urges Labour MPs to return to the front bench

Sadiq Khan’s speech may have been the most newsworthy of the morning, but the most enjoyable was Paul Flynn. Flynn, a leftwinger, has spent most of his career on the backbenches as a member of the awkward squad but he was appointed to the shadow cabinet in the summer when the resignations happened. Flynn doubles up as shadow Welsh secretary and shadow leader of the Commons. His promotion was all the more remarkable because he is 81.

Flynn started with a joke about his age. He was speaking as a “grateful recipient of Jeremy’s job creation scheme for geriatrics”, he said. But his speech, which he delivered in his capacity as shadow leader of the Commons, contained some strong lines.

Len McCluskey made a speech for unity yesterday but there is one phrase in it - the one that he stole from Shakespeare - that I must disagree with, because he did say ‘some should depart the field’. No, no, no.

We’ve got some of our best people sitting on the subs bench, you don’t score goals from the subs bench. Some resigned, they all did for honourable reasons. It took courage for many of them to resign, it’s going to take greater courage for many of them to come back and we must make it possible for them to return with dignity and respect.

  • He said Labour should abandon negativity.

In the last 12 months we’ve been locked in a gap year of negativity, of pessimism, of hopelessness, by many in our party. It seemed at times a competition to see who could be the most pessimistic about our future and our prospects - we’ve got to end that. It’s time to now to give unity a chance. Take all the bile and the hatred together, put it in a box, bury it deep underground, put six feet of concrete on top and then put a sign saying ‘never should the last 12 months be unearthed from its dishonest grave’.

Flynn insisted that Labour could win. To back his point, he recalled helping out during the 1945 general election campaign with his brother. He was only 10 at the time, but he remembers his mother telling him he was wasting his time. She told him:

Look, boys, you are on the right side, it’s the Labour party, it’s our party, but this candidate cannot win because of prejudice. You cannot win in Wales as a candidate if you’ve got an Irish name. And no one called Jim Callaghan has any future in politics.

Callaghan was elected MP for Cardiff South in 1945, and of course went on to become prime minister.

  • Flynn claimed that Labour had enjoyed “marvellous results” in elections over the last year.

The trouble with unity is that it is not sexy. The media, the press, are not interested in it. They are interested in rows, they are interested in division, they are interested in conflict. But they don’t notice the brilliant year we’ve had: magnificent election results. Instead of the polls, look at what happens when real people use real votes in real elections. Marvellous results in all the mayoral elections, in all the byelections. In Wales we gained three parliamentary seats that we lost a year ago.

Flynn seems to be using the word “brilliant” rather loosely. For a more accurate assessment of Labour’s electoral record over the last year, read this UK Polling Report blog by Anthony Wells.

  • Flynn mocked David Cameron’s resignation honours list.

The Daily Mail, of all people, described his honours list as devalued, debased, discredited, egregious, grubby, tawdry, tainted, tarnished - otherwise alright.

  • He said Britain needed “root and branch reform of our democracy”. But reform needed to happen by cross-party agreement, he said.

The only House in the world where we have chieftains, hereditary chieftains in parliament, is ourselves and Lesotho. Only another country, Iran, has clerics as lawmakers. We need a thorough reform of our democracy. It must be done on an all-party basis. It must be done with the consent of all parties so that we get a fresh democracy that’s fair, that’s durable, that’s democratic.

Paul Flynn addresses the Labour conference. Photograph: James Gourley/REX/Shutterstock

Wendy Nichols, who is chairing the afternoon’s session, has just told delegates that Iain McNicol, the Labour general secretary, has ensured that the stand giving away free copies of the Sun will take them away. (See 12.44pm.)

More on this story

More on this story

  • Corbyn urges Labour MPs to end 'trench warfare' and back socialist vision for UK

  • Bending reality like a spoon: the week Labour entered The Matrix

  • Jeremy Corbyn’s critics must decide: unity or terminal decline

  • Labour conference: shadow cabinet split over immigration

  • The Guardian view on Jeremy Corbyn’s speech: tough vision, tough task

  • Did Jeremy Corbyn’s conference speech win over the party? Our writers’ verdict

  • Labour needs to address the issues of the present before it becomes the Retro party

  • Ten things we learned from the Labour party conference

  • Jeremy Corbyn's Labour conference speech – the key points analysed

Comments (…)

Sign in or create your Guardian account to join the discussion

Most viewed

Most viewed