Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      The next person to shop your store may not be a person at all

      AI shopping agents are rewriting the rules of online retail across North America

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Cohere's Aidan Gomez bets the house on 'sovereign AI' with Aleph Alpha merger valuing the group at $20bn

      Cohere CEO Aidan Gomez on stage discussing the Toronto AI lab's strategy

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Moonvalley's Naeem Talukdar is selling Hollywood the one thing rival AI video tools cannot: legal cover

      Moonvalley's Marey AI video model produces Hollywood-grade footage trained on licensed data

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Monday 27 February 2017 1:17 am

Labour is still embroiled in a decades-long battle to decide what it stands for

By: Julian Harris

Add as a preferred source on Google

Nearly 60 years ago Denis Healey delivered a speech to the Labour party conference that has since become famous among Britain’s left-leaning political activists and commentators.

Labour had just suffered a bruising third-straight General Election defeat, with the Conservatives storming to a three-figure majority under the leadership of Harold Macmillan.

“There are far too many people [in the Labour party] who want to luxuriate complacently in moral righteousness in opposition,” Healey said.

Six decades later, his argument echoes around Labour party circles in the aftermath of last week’s humiliating by-election defeat in Copeland. What is the point of maintaining socialist purity, many in the party are asking, if you never get the power to implement your policies?

The question – to which flailing leader Jeremy Corbyn has no answer – is a legitimate one, but it also masks a greater divide within the Labour party. It is not simply a question of pragmatism versus idealism, but between two fundamentally different perspectives of the world.

Read more: Business bosses should be free to speak up about political events

On one hand, you have the likes of Corbyn, John McDonnell, and thousands of new party members who stand under the banner of Momentum. They have little or no appreciation of the enormous benefits that liberalism has delivered across the globe in recent decades, of the way it has allowed hundreds of millions of people to escape poverty; they consider business and open markets to be the enemy, forces that must be restrained; their policies would lead to the kind of ruin seen time and time again, most recently in Venezuela.

On the other hand, you have a considerable number of Labour MPs, councillors and members who understand the unrivalled advantages of liberalism, and the need to allow markets to create wealth – wealth that benefits everyone, and allows governments to fund state-provided services such as the NHS. They favour a bigger and more interventionist state, certainly – but they appreciate the role of business and markets in creating the wealth that pays for it.

Tony Blair confronted this reality during a conference speech of his own. In 2001 he cited a colleague who asked if New Labour, now that it had won another massive majority, could get away with quietly abandoning its election promise to be a centrist, modernising party. “It’s worse than you think,” Blair said. “I really do believe in it”.

Labour’s current stalemate is not just a standoff between pragmatic power-seekers and revolutionary idealists. At its roots is a fundamental ideological clash.

The split is evident even at the very top of the party. Over the weekend, reflecting on last week's electoral capitulation, deputy leader Tom Watson said: "We have to make it clear we are on the side of people who create prosperity, as well as those who need the security of good jobs."

Unsurprisingly, there was no such sentiment from Corbyn or his backers. The Labour leader doubled-down on his failing approach, bizarrely insisting the "time has come" for Marxist ideas and policies. Even more absurd was Baroness Shami Chakrabarti's claim that "people will change their minds" and start voting for Labour's hard-left stance.

With Corbyn insisting he’ll battle on, and with Momentum maintaining its stranglehold on the party, it is increasingly difficult to see how Labour’s crisis will be resolved.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • London Tech Week sums up everything wrong with UK tech

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • ZayZoon, the Calgary fintech born on a fishing boat, posts 1,487% growth as earned wage access goes mainstream

    ZayZoon co-founder Tate Hackert built the Calgary fintech around earned wage access
  • Botpress raises $25m as Quebec's Sylvain Perron pitches his startup as the 'infrastructure layer' for AI agents

    Botpress product UI: the Quebec startup pitches itself as the infrastructure layer for enterprise AI agents
  • FluidAI wins US FDA clearance for its surgical monitor as Waterloo's Youssef Helwa targets 100,000 operations

    FluidAI's Origin surgical monitor wins FDA clearance for use in US hospitals
  • Government departments will look at cutting budgets to fund defence, minister says

    Politics
    Getty Images collection showcasing diverse business professionals in a collaborative office environment, emphasizing teamw...
  • UK borrowing costs waver as Starmer insists he will not ‘walk away’

    Politics
    Keir Starmer addressing media, taking responsibility, with serious expression, in a press conference setting.
  • Billionaire Labour backer John Caudwell: I was misled by ‘disastrous’ Starmer

    Politics
    John Caudwell in a formal setting, possibly during a business meeting or public speaking event, conveying professionalism.
  • London local elections 2026: Who will win in Brent?

    London
    Voters casting ballots in a London polling station during local elections, showcasing diverse community participation
  • Labour selects Burnham and Reform UK picks plumber for by-election battle

    Economics
    Andy Burnham speaking at a Labour Party event, addressing current political issues, with a focused and determined expression.
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy
  • News
  • Markets & Economics
  • Politics
  • Opinion
  • Life&Style
  • Personal Finance

Follow us for breaking news and latest updates

  • Facebook
  • X
  • Instagram
  • LinkedIn
Copyright 2026 CityAM Limited