John McDonnell, the shadow chancellor, has said set out the watchwords for Labour's economic policy in a talk at the London School of Economics.
“Decentralisation and and democracy are going to be the watchwords of this campaign,” McDonnell said.
“We've got to find a different way to the future.”
In what he called a "progress report" on Labour policy, McDonnell said he had assembled an economic advisory committee, supported by a mass of advisors and researchers, to conduct reviews into public institutions including the Treasury, the Monetary Policy Committee, HM Revenue & Customs and the UK system of tax relief and expenditure.
McDonnell said the key moment in deciding policy was at the Labour Party conference last year, when MPs were “surprised at the number of people who felt the Labour Party should be an anti-austerity party”.
“From then on we became the anti-austerity party,” he said.
“I hope to start this conversation. I aim to create a radically more equal, fairer society.”
John McDonnell argues for decentralised socialism: co-ops and other models #LSEMcDonnell— Richard Murphy (@RichardJMurphy) February 16, 2016
At LSE, he faced questions from Labour Party members, students and the press on the failure of Labour to challenge George Osborne's conviction that Labour Party overspending caused the 2008 crash, rather than the financial sector.
In pictures: Jeremy Corbyn reshuffle
In pictures: Jeremy Corbyn reshuffle
1/11 Jonathan Reynolds,Shadow Railways Minister: RESIGNED
He resigned as shadow railways minister in protest at the reasons for sacking Pat McFadden
2/11 Kevan Jones, Shadow Defence Minister: RESIGNED
He resigned as a shadow defence minister who strongly supports renewal of Trident. Has spoken out against Jeremy Corbyn’s leadership before and was also the centre of a row with Ken Livingstone after he said Jones “might need some psychiatric help” (Jones has previously spoken about his struggle with depression)
3/11 Stephen Doughty, Shadow Foreign Minister: RESIGNED
He quit as a shadow foreign minister in protest at the sacking of his colleague Pat McFadden as shadow Europe minister. He said he had “looked at his own conscience” and decided to step down
4/11 Pat McFadden, Shadow Europe Minister: SACKED
He was sacked as shadow Europe minister for "disloyalty" to leader Jeremy Corbyn
5/11 Pat Glass, Shadow Europe Minister: SAFE
Former junior shadow education minister Pat Glass replaced Pat McFadden as shadow Europe minister
6/11 Emily Thornberry, Shadow Defence Secretary: SAFE
She was promoted to shadow defence secretary. She is anti-Trident and therefore more in tune with Corbyn’s stance and replaces Maria Eagle, who was pro-Trident
7/11 Emma Lewell-Buck, Shadow Minister for Devolution and Local Government: SAFE
Emma Lewell-Buck was promoted to shadow minister for devolution and local government
8/11 Michael Dugher, Shadow Culture Secretary: SACKED
Outspoken critic of Jeremy Corbyn’s leadership, has been sacked as shadow culture secretary for his "incompetence and disloyalty"
9/11 Hilary Benn, Shadow Foreign Secretary: SAFE
Hilary Benn remains as shadow foreign secretary, but Corbyn’s team has insisted his role now comes with ‘new conditions’ that he must agree with Corbyn over foreign policy. Benn insists there are no ‘new conditions’ attached to his job and insisted: "I haven't been muzzled. I'm going to be carrying on doing my job exactly as before”
10/11 Maria Eagle, Shadow Culture Secretary: SAFE
Maria Eagle, moved from shadow defence to shadow culture secretary as part of Corbyn’s move to make his defence team match his anti-Trident views
11/11 Andy Burnham, Shadow Home Secretary: SAFE
Reports linked him to foreign secretary brief, but Corbyn appears to have backed down on sacking Hilary Benn. He does not see eye-to-eye with Corbyn on home affairs such as the Snooper’s charter, but removing your shadow home secretary so soon after starting would have been a dangerous move by Corbyn
“Narrative trumped competence. They repeated the same statements ad nauseum: the financial crash was caused by labour overspending, not the banks; fix the roof while the sun is shining,” he admitted.
“A lot of our work is talking about what the narrative is for people around the country.”
Labour is fostering a new narrative with a series of "New Economics" events in which it presents a vision of decentralised institutions, the state as a supporter of innovation and the radical potential of technology.
“The labour party now is changing into a social movement, a bit like it started, so that means no longer dictating policy from the top,” McDonnell said.
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