The Conservative Party may have been replaced in government, but the Labour Party seems poised to follow a similar path, prioritising business interests while making working people bear the burden of the ongoing crisis. To challenge this, the workers’ movement must be reorganised, and a new political alternative must be built.
By Julio Santana
The Regime Protects the Wealthy and Privileged Ones
Recently, from the Rose Garden at 10 Downing Street, Prime Minister Sir Keir Starmer, with a stoic expression, admitted: “But I have to be honest with you .Things are worse than we ever imagined. In the first few weeks, we discovered a £22 billion black hole in the public finances. There’s a budget coming in October. and it’s going to be painful. We have no other choice given the situation that we’re in.”
His words make it clear that the reformists have come to power not to change course, but to manage the same policies that shift the crisis onto the working class. Despite differences between Conservative and Labour leadership, both are aligned in safeguarding business profits, attempting to navigate the crisis of British capitalism, and upholding the bipartisan and monarchical system.
Everything for Ruling Class, Little for the People
Resources exist, but Starmer shows little willingness to confront big business. Numerous examples demonstrate this. Amazon’s main UK division, for instance, has not paid corporation tax for the second consecutive year, benefiting from tax credits on its £1.6bn investment in infrastructure, including robotic equipment for its warehouses. Moreover, it has come to light that companies facing fines, defrauding Whitehall, or under investigation for corruption are among those profiting most from outsourcing to the UK government.
Billions of pounds, around a third of public spending, are spent on contracts with private companies. According to data firm Tussell, “According to one report by data firm Tussell, the Strategic Suppliers not only receive 11% of that spending, but their income from government contracts rose by 24% between 2019-2020 and 2021-2022 alone.”
Even water companies are exploiting the situation; Water UK’s CEO, David Henderson, said they are seeking £105 billion in investments, including measures supposedly aimed at protecting the environment, but in reality, the goal is to maximize their profits at the public’s expense.
Subsidizing the Royal Family
The royal family remains untouched by economic hardship, continuing to receive annual government subsidies through the Sovereign Grant to cover ordinary expenses. According to the BBC, “ The Royal Household’s official spending rose by 5% last year, to £107.5m, while its funding from taxpayers remained at £86.3m, annual accounts have revealed.” Rather than subsidizing this parasitic institution, these funds should be redirected to social aid for those in need.
Fuelling the Far Right
Starmer has stated, ” I won’t shy away from making unpopular decisions now. If it’s the right thing for the country in the long term.” This rhetoric mirrors what politicians often say to justify austerity measures, promising a better future that never arrives. The Labour Party’s actions will likely lead to further disappointment for those who mistakenly view it as progressive or left-wing. Such disillusionment is fertile ground for the rise of the far right, as seen in the UK and in other countries where reformist and centre-left movements, such as Syriza in Greece, Die Linke in Germany, and Podemos in Spain, have failed to deliver meaningful change.
Build up the Fight
The Trades Union Congress (TUC) has called for “emergency wealth taxes to fund a massive boost to public investment, the end of the two-child cap on benefits and the scrapping of the recently announced restrictions on winter fuel payments.”
While these are just demands, they fall short when faced with a government that cannot be trusted. What is needed is a robust response from the labour movement, one that goes beyond mild appeals and embraces organized action and mobilization. The major strikes that shook the UK demonstrate the strength needed to push forward an agenda that addresses the urgent needs of the working majority.
Build a New Radical Left Alternative
Before the Labour Party took power, it was clear that they would blame the “legacy” of the Conservative Party to justify austerity measures. Prime Minister Starmer consistently reinforces this, saying, “The country is in a very bad state; painful measures must be taken.” We cannot place our trust in this government. It is time to break up with the Labour Party and establish a new radical left alternative, one that unconditionally supports workers’ struggles, champions an anti-capitalist and socialist program, and serves as a tool to defeat the far right and consign old reformist politics to history.