The Labour party, which is leading in the opinion polls ahead of the next general election, has undergone a remarkable transformation in the past few years. From being associated with radical left-wing policies and Maoist symbolism, the party has now embraced a more moderate and business-friendly stance. This change is evident in the upcoming Labour conference in Liverpool, where major corporate names such as Goldman Sachs, Barclays, Vodafone and Google will be participating and sponsoring events.
A Journey from Mao to Blair
The Labour party’s shift to the centre-left can be traced back to the defeat of Jeremy Corbyn in the 2019 general election. Corbyn, who led the party from 2015 to 2020, was widely seen as a divisive and unpopular figure, who alienated many traditional Labour voters with his socialist agenda and anti-Western views. His shadow chancellor, John McDonnell, was equally controversial, as he once brandished Mao Zedong’s Little Red Book in Parliament as a gesture of defiance against the Conservative government.
After Corbyn stepped down, Keir Starmer was elected as the new leader of the Labour party in April 2020. Starmer, a former human rights lawyer and director of public prosecutions, promised to unify the party and restore its credibility. He appointed Rachel Reeves as his shadow chancellor, a former Bank of England economist who also worked for a commercial bank. Together, they have sought to distance themselves from the legacy of Corbyn and McDonnell, and to present a more pragmatic and pro-business vision for the country.
A New Relationship with Business
One of the main objectives of Starmer and Reeves is to win the confidence of the business community, which was largely alienated by Corbyn’s anti-capitalist rhetoric and policies. They have reached out to various sectors and industries, promising to support innovation, investment and growth. They have also pledged to raise taxes on corporations and the wealthy, but not as much as Corbyn had proposed.
The Labour party’s new image has attracted some former Conservative donors and supporters, who have switched sides due to their dissatisfaction with Boris Johnson’s handling of Brexit, Covid-19 and other issues. One of them is Gareth Quarry, a British businessman who made a fortune in legal recruitment. He said: “I was an ardent Tory. Margaret Thatcher caused carnage but a lot of the changes were for the good of the country. I donated £75,000 ($91,850) to the Conservatives over the years but that stopped when Boris Johnson became prime minister.”
The Labour party’s conference in Liverpool next month will be an opportunity for Starmer and Reeves to showcase their new relationship with business. It will be the first time that Goldman Sachs has paid to sponsor an event at the conference, which it is doing through its 10,000 Small Businesses program. It will also be the first time that major UK companies such as Phoenix Group and Ovo Energy have sponsored events at Labour’s conference.
A Challenge from the Left
However, not everyone in the Labour party is happy with the direction that Starmer and Reeves are taking. Some members of the left-wing faction, which still has a strong presence in the party’s grassroots and parliamentary ranks, have accused them of abandoning Labour’s core values and principles. They have also criticised them for being too soft on Johnson’s government, and for failing to offer a clear alternative vision for the country.
Some of these critics have formed a new group called Resist: Movement for a People’s Party, which aims to challenge Labour from the left. The group is led by Chris Williamson, a former Labour MP who was expelled from the party for his comments on anti-Semitism. He said: “We are building a new political movement that will offer a genuine alternative to the broken political system that has failed working people for decades.”
The Labour party’s conference will also be a test for Starmer and Reeves’ ability to balance the demands and expectations of their diverse supporters and stakeholders. They will have to deal with potential clashes and controversies over issues such as Brexit, Covid-19 restrictions, climate change and social justice. They will also have to convince voters that they are ready to govern the country after years of turmoil and uncertainty.
