New Labour Essay 2001-2006

• Performed Well in management of economy 2001-onwards

  Kept promise of “No increase rate of Income Tax
• 4 Years of economic Success with maintenance of 2.6% low inflation

  Sucessful trabsfer of bank to management of interest rates (set independent of government)
• Successful transfer of Bank of England to management of Interest Rates (independent of Government)
• 2001 Election - Labour won 403 seats, 40 more than the Tories / Market reassured by Brown - Industrialists and middle class
• 2)Economy

  Brown increased spending - double inflation (4.8%)

  • Success : Gained credit investing in public services (NHS + Education)
  • Success : Catching up on years of neglect from previous governments u see conservatism
• Record on employment - Generally positive (1997- 2.5million increase in employed workers)

  However - Growth in jobs where not in areas most needed (Unskilled and Young)

  • 5.4 Million (16-30 year olds) on benefits and never had a job
  • Overall - Reflected poor employment policy
• 3) Stealth Tax (Pensions)

  • Highly criticised
  • (Used to avoid increasing income tax and to finance new deal)
  • Argably - Damaged pension industry (healthiest)
  • Value of pension industry fell £8 billion
  • Collapse of Savings ration (9.7% in 1997 vs 3.7% in 2007)
• Sale of Gold - Highly disastrous

  Sale of 30m oz of gold

  • When gold prices increased - Uk lost £3 billion (where Chinese investors had doubled there money)

  Result : Highly embarrassing as Britain could have prevented loss by forfeiting sale of gold for the minute cost of 1p on tax-income.
• 1997-2007 Ecomony Result

  • Rising living standards
  • Mass purchase of technology (mobile phones
  • Contributed to 3rd victory - 2005
• 4) New Deal

  Successful/progressive legislation which was able to meet pledge of “Inclusive Society”
• • Minimum wage Act 1998 - Saw pay increase of 1.5 million people
  • Civil Partnership Act 2004 - Extension of gay rights/ Same-sex couples given same legal rights
  • Gender Recongniton Act - Transexuals had the right to change identity and marry someone of new assigned gender
• 5) Education

  Labours record on education was successful

  • 35,000 new teachers
  • 1000 newly built schools 1997-2007

  Ultimately - spending in education had increased Britain’s GDP 5.6% - brought Britain level with economically advanced countries
• However - Education policy was also a failure - New Labour’s aspiration of equality for ALL wasn’t met

  • Quality of schools still determined by location
  • Poor performing schools in poorest/socially deprived areas
  • Tony Blair/Dianne Abbot - Accused of lack of faith in comprehensive system - sent children to private schools
• 6) Higher Education

  Although New labour had increased participation - Did not achieve goal of half of school leavers to enroll

  • 2004 - 2.4 million students where in university ( double that of 1990)
  • Number of women in 2006 - twice as high as 1995 ( 7x 1970)
• Higher education - Social inclusion overall was not achieved

  • 1998 - tuition fees had created a barrier
  • 3% of uni places were filled with disadvantaged backgrounds
  • University expansion largely benefitted middle class
• 7) Ireland

  Blair’s finest achievement delivering peace through the Good Friday Agreement 1998 - which embraced peaceful matters

  • Enriched personal reputation
  • Demonstrated determination on refusal to accept any further conflict
• 8) Crime

  Labours record on crime was largely unsuccessfull

  • Did not meet “tough on crime, tough on the cause” pledge
  • 1997-2007 - saw rise in crime and social disorder
  • 733,000 cases of burglary
  • 2.7 million cases of criminal damage
  • 2.4 million crimes - including gun crime
  • Many inner-city areas become ”no-go” areas