UK: Labour Party sets up working group to investigate UBI

UK: Labour Party sets up working group to investigate UBI

John McDonnell, Labour MP and Shadow Chancellor of the Exchequer in the UK, has revealed that the Labour Party has established a working group to investigate universal basic income. Guy Standing, cofounder of BIEN, will play a key role in drafting their report.

Speaking directly to Basic Income News, Standing explains:

“I have been invited to become an economic adviser to the Labour Party, and in particular to John McDonnell, the Shadow Chancellor (effectively, the Opposition finance minister). He has asked me to help prepare a detailed strategy report for framing a basic income and enabling the Labour leadership to present a plan for implementing a basic income as part of Labour’s long-term economic strategy.”

In an interview with the Independent, McDonnell explained that the Labour Party intends to use this report as the basis for a tour around the UK to discuss the idea with the public. In the interview, McDonnell highlights the parallels between the idea of basic income today and that of a universal and unconditional child benefit before its introduction in 1975:

“I was involved in the early campaigns many years ago on the development of child benefit – at that point in time there were all sorts of anxieties about whether you could bring forward a benefit for everybody that wasn’t based upon an assessment of need and we won the argument. I think child benefit is like one of the foundation stones of a future basic income.”

This development follows Labour leader Jeremy Corbyn’s announcement last September that his party would research universal basic income, and McDonnell’s own positive comments regarding the policy earlier that year.

Jonathan Reynolds, MP and Shadow Economic Secretary to the Treasury City Minister, has been named as the leader of the working group, a politically savvy move given that he himself identifies as a moderate within this currently sharply divided party. He wrote favourably about basic income for the New Statesman last February, and made the point that public support for state welfare could be bolstered by following the model of the much-loved National Health Service (NHS) – that is, by making sure that it “provides something for everybody”.

The basic income working group will present its results before the next general election, scheduled for 2020. While the Labour Party is currently trailing the leading Conservatives in the polls, not least due to divisions within the party since the election of Corbyn as its leader in 2015, the British political landscape is currently highly unstable given the unforeseeable effects of Brexit. Indications that some form of basic income might be included in Labour’s election manifesto, then, are significant.

Read more:

Ashley Cowburn, “Labour sets up ‘working group’ to investigate universal basic income, John McDonnell reveals”, Independent, 5 February, 2017.

Kate McFarland, “UK: Labour Leader to Investigate Universal Basic Income”, Basic Income News, 15 September, 2016.

Kate McFarland, “UNITED KINGDOM: Labour Party to look into Basic Income”, Basic Income News, 6 June, 2016.

Jonathan Reynolds, “How I learnt to stop worrying and love Basic Income”, New Statesman, 17 February, 2016.

Reviewed by Kate McFarland

Photo: John McDonnell; CC 3.0 by Percivale Productions

UNITED KINGDOM: Jeremy Corbyn, candidate for Labour Party leader, recruits Basic Income advocate to draft economic plan

UNITED KINGDOM: Jeremy Corbyn, candidate for Labour Party leader, recruits Basic Income advocate to draft economic plan

Jeremy Corbyn, front running candidate to be the next Labour Party leader, has recruited Richard Murphy, an advocate of basic income, to draft his economic policy.

Corbyn, a 66-years-old MP, not especially prominent in Westminster politics, has recently gotten tremendous media attention on account of his unexpected initial success in getting support for his candidacy for Labour Party leader, coupled with mainstream Labour politicians’ panic reaction against precisely this (Tony Blair, for one, has advised Corbyn supporters to get a heart transplant).

Although Corbyn himself hasn’t spoken on basic income yet, there have been some speculations as to whether he could possibly support the idea — namely: ‘Why Anti-Austerity Needs The Basic Income: SNP, Jeremy Corbyn?’ and ‘Universal Basic Income: How the Labour Party could stand up for workers, help the poor and be pro-business’.

Richard Murphy

Richard Murphy, Tax Research UK

It is good news for basic income supporters that Richard Murphy is involved in drafting Corbyn’s economic policy.

Murphy, an economist at Tax Research UK, is also an advocate of basic income and co-author (with Howard Reed) of ‘Financing the Social State’ (pdf), which recommends the implementation of basic income in the U.K. This policy paper was published in 2013 by the Centre for Labour and Social Studies.

Corbyn hasn’t published his detailed economic plan other than providing a brief outline. Despite this, The Daily Mail, The Times, to cite a few, have already termed it the derisory ‘Corbynomics’.

Will basic income be included in ‘Corbynomics’ (which I am using the term without ridiculing tone)? Will Corbyn win the Labour Party leader contest? We will know by the autumn. The party’s internal vote will begin Friday 14 August and close on Thursday 10 September, with the results being announced on Saturday 12 September.


Credit Picture: CC Chris Beckett

*Minor editing for a link and for responding one of comments below on 10th August