A book that could be a blueprint for a better future - if the Labour Party takes it seriously.
Will Hutton's passionate book shows how the right and left have gone wrong over the course of the last century – and how we can remake a better Britain. Britain's inability to invest in itself is at the heart of our problems. The malevolent thread linking the grievous errors of the last forty-five years is the attempt to create the utopia of free markets and a minimal state. The terrible consequences scar our country today. We need an alternative economic and political philosophy, especially if we are to ward off a nihilist populism.
Two great traditions – ethical socialism and progressive liberalism – can be brought together to offer a different way forward. Hutton describes the views of their major thinkers, and their common vision of what he calls the 'We Society' – combining the 'We' and the 'I'. The two strands of thought both believe in the duty to treat people fairly in a capitalist system that, without guiderails, spirals into inequality, monopoly and exploitation.
Out of this shared worldview came the great reforming Liberal government of 1906–14, supported by Labour MPs who'd been elected in industrial areas with Liberal backing. This alliance, Hutton argues, was the great opportunity of modern British history. It was destroyed by the First World War. In 1945 a Labour government, informed by great Liberal intellectuals like Keynes and Beveridge, showed once again what can be achieved when the two progressive strands fuse.
Since then, our deeply unfair electoral system has allowed Conservatives to dominate government and commit a long series of great, avoidable errors. The Labour Party, fatally divided between socialist purity and timid pragmatism, must rediscover the ingredients that made for the success of the great reforming governments of the twentieth century.
This failure to uphold the 'We Society' has betrayed Britain. Capitalism must be repurposed to work for the common good. And our degraded democracy, the necessary means for such change, must be reformed. Hutton's proposals are inspiring and rooted in values held by the overwhelming majority of us. Above all, they are achievable.
A wonderful combination of bleak analysis and optimistic proposals, informed and driven by the lessons of history rather than by ideological dogma. Hutton goes to great lengths to present Britain’s story as one of mistakes and missed opportunities alongside our successes to present a strong analysis of the weakened situation we find ourselves in now.
Although I felt the history element was a little overblown (particularly the US narrative, which although a useful point of comparison did feel a little drawn-out) it was very informative and clearly directly related to the analysis and solutions put forward.
Overall an interesting blueprint for the future which offered many informed solutions which can be used to prevent the next 20 years being as disappointing as the previous.
I went into this book cautiously, but was pleasantly surprised. It's a brilliant distillation of how the UK got into its current mess, tracking the intellectual origins of the modern political milieu and identifying how we can repair much the damage.
I will say - I don't necessarily agree with all of Hutton's conclusions and I believe he is overly cautious about more left-wing ideas, e.g. public ownership of utilities (and oddly doesn't even hint at the disaster of the buy-to-let market when discussing the housing crisis). That said, all of his his proposed reforms can only be a step in the right direction, even if I personally think they could go further in many cases. His approach strikes a balance of what is ethical with what the majority of the public would probably support, although it's worth noting the backlash after the creation of the NHS and how the public mood has shifted since - people often have a knee-jerk reaction to things which they come to value highly in the longer term. But I digress. There's not much in here I disagree with in principle.
I'm very much debating posting a copy of this to Keir Starmer and begging him to grow the spine it calls for.
I also love being vindicated in what my friends know to be my catchphrase - "that's Thatcher's fault"
“It is time to stop talking and thinking of Britain as a rich and broadly fair country. We are poor, our society is deeply unfair and we are living on the edge.”
This is a book bursting with far too many compelling and disturbing statistics, like how one in three children live in poverty in the UK. It’s interesting as Hutton takes the presidency of Jimmy Carter as the real starting point for the tectonic shift towards full on Neo-Liberalism, rather than the usual Thatcher-Reagan starting points, optioned by most historians.
Hutton makes a telling comparison between the Tory philosophy and morals of Harold Macmillan and the ruthless leaders from Thatcher onwards. At one point he describes Thatcher’s mass privatisation resulted in, “an orgy of asset-looting, tax avoidance and indifferent service.”
He also praises the likes of Richard Tawney, Evan Durbin and John Rawls and of course the governments of FDR and Clement Attlee. Hutton has a nice easy style and an enjoyable way of writing, even if he does describe Glasgow - the largest city in Scotland as a town (he is English after all!).
A blistering condemnation of the last 14 years of Tory rule in Britain, in fact, it's more a blistering condemnation of the last 125 years of Tory rule in Britain. Charting the development of our situation since the dawn of the 20th century, it's clear Hutton see's many chances have been missed. We've been trying to get rid of First-Past-The-Post since changes were proposed to address it in 1918, but little progress has been made. We've been trying to get the House of Lords reformed for a similar length of time, with the same mount of progress.
The early chapters describe the slow movement of the overton window to the right over the century. Punctuated with all too brief periods of progressiveness, Atlee's great New Liberal government of '45 being the standout example, that too little is taught about, Asquith and Lloyd George in the early decades, making the first impressions. The early half of the century, Liberalism was on the rise, we were building a society, together, to be proud of. But other's thought differently, they saw the rise of society, equality, fairness and collectivism, as slippery slope to communism. The Road to Serfdom, Hayek, defined this path, and called for the reduction of the state, in the name of 'freedom', and neo-liberalism was born. At the time, no one would listen to his nonsense, it was clear that society was working, as WWII retreated, the Overton window kept neo-liberlims on the fringes. That changed in the 70s, with a period of stagflation and oil price rises, creating an opportunity for a change from the Keynsian economics that had yielded so much progress. Thatcher and Regan unleashed neo-liberalism, and our current era of individualism. With the state shrinking, taxes becoming increasingly regressive and stagnate, public wealth transfers into private hands, Britain started to falter. The gap between those that have, and those that don't, soared. As this process continues, the mood of the country turns darker, fear of the 'other' is stoked, and the stage set for fascism. Many people saw this coming, Macmillan's The Middle Way, for instances warned of this in '38. The state should provide the basics, for democracy to flourish, otherwise communism or fascism will result.
Once the history of the bleak situation is describe, Hutton moves onto what to do about it. It's here that there is a lot take in. He prescribes a whole host of changes, from a Sovereign Wealth fund (Thatcher squander our chance at this in the 70s, but better late than never), public investment in research and development (ala the USA's DARPA, anyone that thinks the USA doesn't benefit from massive public funding needs to think again), finally replacing First-Past-The-Post, reforming the House of Lords, infrastructure investment, tax reforms (if you want tax free savings, via an ISA, then that ISA should be invested in the UK), banking loan reforms, breaking up the Treasury (which comes under a lot of fire for not investing in the country due to it's continued adherence to the laissez-faire economics of the 19th century), implementing the Leveson report to reform our media landscape, the list goes on. All these aim to build positive social capital in the country once again. To bring more emphasis on the 'we', not the 'I'.
In the conclusion, Hutton states that the next government will be tempted to target the economy as it's highest priority, but argues that the rot runs deeper than the economic problems of today. We need a reset of how the country is run, how governments are voted for, how power is shared, legislation passed. This will set the stage for rest. It's sad to see this call has not be heeded, instead Labour seem to be tinkering with economic levers, and not 'grasping the nettle' of constitutional change. Will we miss this opportunity? It seems likely. If Labour can't improve people's lot in this parliament economically, as they still seem to think that is all that matters, which seems likely with the chaos that is breaking out around the world, then the chance will be missed, and the slide will continue.
All in all, it's a great book, if a little depressing.
Will Hutton has written a serious, authoritative, scathing, but optimistic book on the British political-economy. It is measured and detailed in its analysis; in particular it eschews the moralising and radicalism that undermine many similar efforts by progressives to dissect and discredit modern capitalism, and take up arms in the culture war at hand, and argues effectively that such moderation is the way forward.
Hutton begins by methodically outlining the history of laissez-faire economic theory. Starting with the interpretation and misinterpretation of Adam Smith, Marquis de Condorcet and Thomas Paine who advocated for free-markets and developed the theories of supply and demand, but also warned of the dehumanising influence of the assembly line and the importance of public education. He chronicles the rise of Randism, Neo-liberalism and Monetarism, the incubation of these ideas that would shape anglophone economic policy from the late 70s onwards at mont Pelerin, and their dissemination by William F. Buckley Jr. He covers the rise of financial services industry and its excesses that resulted in the financial crisis and the complicity of the government emblematised by 1986 Big Bang deregulation in the UK and the repeal of Glass-Steagall provisions in 1999 in the US (when Alan Greenspan headed the FED).
He retraces Thatchers steps and reassesses her performance. Understanding the 'successes' of her economic policy as a short term productivity boost fuelled by the liquidation of British manufacturing and importation, financialisation and the removal of non-tariff barriers to trade in the EU, and underlining her failure in the shredding of the social contract that had been forged in post-war Britain.
Simultaneously, Hutton narrates the rise of Liberalism and the Labour movement in the United Kingdom as well as what he sees as its two major successes: the 1906-1914 Liberal government under Sir Henry Campbell Bannerman, Herbert Asquith and Lloyd George, the post war 1945-51 Labour government, and the post-war consensus it built. Again, Hutton pays close attention to the intellectual foundations of economic new-liberalism forged by Thomas Hill Green, John Hobson and formalised by John Maynard Keynes — with roots in Robert Owen's ideas on labour, Ruskine's advocation in favour of better conditions for the poor and Booth's scathing report on those conditions — and how they interacted with the political movements that sought to empower workers. He records how they coalesced in the rise of the Liberal-Labour collaboration that lead to the 1906 government and the promulgation of National insurance, differentiated income tax, the children's charter; and how, after the wasted interwar years, they coalesced once more in the 1945-51 government which instituted the Beveridge proposals and yielded the welfare state, the NHS, the Education Act and the nationalisation of Rail, Steel and Coal all of which led to an increase in living standards and an economic boom. Hutton believes the one downfall of the government was to call itself socialist when it was in fact economically new-liberal which put it in Thatcher's firing line. And finally, he chronicles the failures of the progressive movement after that, making due allowances for new Labour and some of its achievements.
In short, the first half of the book provides a fairly comprehensive understanding of the real and intellectual political-economic history of Britain.
The second half of the book deals as comprehensively with the result of that history, namely a decade of 0f real wage growth and stagnant productivity, and what should be done to improve the country's position. It is in part an indictment of the 14 years of Tory rule the country has been subjected to which was characterised by austerity justified by scarcely credible and empirically ineffective laissez-faire economic theory, swingeing cuts to public services and occasional tax cuts of dubious effectiveness; it is also presents a policy program for any government that may wish for reform. Unlike 'Vulture Capitalism' the reforms presented are measured, incredibly detailed and actionable. They show an understanding of the political climate (a huge increase in living standards in the 20th century, a swing towards a service economy, and the catastrophic performance and restricted liberties associated with communist countries mean there is little appetite for full blown socialism/ marxism and Hutton makes a compelling case that that's not what is needed either) and an understanding of where our current policy fails and why.
I'll spare you all the details but the program calls for two major reforms. The first an overhaul of British capitalism that respects individual agency and the innovating and value creating influence of markets and industry, while emphasising that it works in the interest of society: Stakeholder Capitalism. The second a rewriting of the social contract that combines the 'We' and the 'I' (Hutton's favourite phrase and perhaps the essence of the book). The reforms are specified with a good deal of detail: as an example Hutton suggests instituting a sovereign wealth fund capitalised by DC and SIPP pension funds (which don't have obligations to yield defined benefits) investing 5% of their funds on an opt-0ut basis, backstopped by a public-sector wealth fund capitalised by tax receipts (from oil and gas licences for example). And run the gamut from economic policy such as the above to constitutional amendments such as amalgamating the commissions and committees overseeing parliamentary ethics into a single commission with statutory power.
There are a few ideas that though sensical seem to me fraught with difficulty: saddling social media companies with more responsibility for the content that is published on their websites which is of course the subject of long-ongoing and hardly-settled debate — especially in the United States. And certainly the program requires a great deal of investment which Hutton funds with debt, disbelieving the Neo-liberal imperative that government to balance budgets, as well as increased taxation both of which may prove deeply unpopular. Despite this, the clarity of direction and convincing argumentation prove a winning combination and so the book doubles as an example of how such a program could be sold to the electorate.
This book is going in my list of mandatory reading for any Brit serious about the reform of her country. Its moderation and detail make the recommendations of more firebrand books, I'm thinking of Vulture capitalism in particular, seem brash (although they do a good job in surfacing the inadequacies of our current systems). With the caveat that I am neither historian nor economist, Hutton is authoritative and convincing; he certainly persuaded me that his proposed course is worth seriously considering.
I was hoping this would be an interesting critique of economic policies. Instead I found it to be rehash of common mainstream leftist views written with a thread of anger that runs through the text. I couldn’t finish the book.
I have been a “fan” of Hutton since I was given a copy of “The State We’re In” way back in the 1990s. I’ve also been fortunate enough to speak with him during a “seminar” I co-organised as a Community Organiser, also late 1990s. Then came (in no order) On The Edge, The World We’re In, The State to Come, Trust: From Socrates to Spin… and more. Now, with This Time No Mistakes I feel he has put all into one and produced a magnificent, if at time tricky, offering into a world that needs his analysis more than ever. I guess that’s the whole point. There are presumably no need for prophets if the world is getting along just fine. But it isn’t, is it? And that’s the backdrop to TTNM.
It addresses “the world” from a very British standpoint, and mostly only addresses it in terms of how Britain stands upon the edge of choices for its own future: what kidn of government might the next year reveal (it’s published just before Sunak went to the country and I wonder if Hutton thought there would be a few months more before he did). That these choices might influence and shape the whole world is all but inevitable. It might be (is likely that) that the future UK will be far less influential on the world—Brexit has made that pretty much a given—but even so, the past economic, social and political ideologies of the GB Government have made it clear that there is a lot to be learned.
Hutton takes us through a history of political and economic thinking from the late 18th century to the present, basing his critique on the distinction between theories based on “I” (Ayn Rand, Friedman and Hayek, Gladstone, Thatcher et al.) and and those based on “We” (Attlee, Lloyd George, Keynes, Bevan et al.). He points out the need for some form of statism, not full grown communism, nor even socialism, but a social democracy that supports people in work and in health, and which doesn’t flinch from the need to be economically fecund. He is utterly flabbergasted (my word not his, of course) at the recent evens in Westminster, but from a point of view that encourages a positive view of politics and politicians rather than the currently unavoidable negative criticism of anyone who seeks power.
He cutd across the negativity we live through. He challenges the power of the media who form the narrative and who (ill-)inform the electorate. He does so in order to make a point that this time, after so many false starts, perhaps, there is barely room for error. The Blair decade moved forward in some healthy ways, but that was undone by Cameron et al., but even Blair was somewhat over influenced by Thatcher, and so the links go backwards and forwards.
It is at times a bit dense and data heavy, but that is unavoidable when making the poitns he wishes to make, and when he does, the light shines. He concludes, helpfully, with a twelve point plan for the future. Helpfully, but probably impotently. It is a book of measured and rational hope. But in my more pragmatic moments, I do fear and wonder if it is all just another book that twenty years from now someone will pick up and wryly laugh through.
Read it. Please. And if you can, act on his ideas.
A remarkable rant about what has gone wrong with Britain – its politics, its social outlook – over the last hundred years or more. ”Rant” tends to be a pejorative word, but I don’t especially mean it that way here. Will Hutton writes with such rising passion that for the most part he sweeps you along with him. And the rant is most certainly not just another leftie sounding off – though I must confess I thought he might be. He’s more sensitive/intelligent than that. Yes, he lays into the way in which a laissez-faire interpretation of capitalism has allowed us to drift into the pickle that we find ourselves in now – where the very rich are getting very much richer, and large swathes of society are being left behind. But his solutions are not especially politically led, they’re led by ancient British values of tolerance, the value of “we” above the capitalist “I”, the things that made people like Keynes and Beveridge and Attlee and – yes, wait for it – Macmillan such rare and civilised people. Never mind their political parties, they espoused values that looked after us all.
The writing is spectacularly clear and eloquent, he comes at you like a charging rhino, with the didactic certainty of an Economist editorial on steroids. His critique of Thatcherite economics is for example fluent and relentless.
And yet. I couldn’t help wondering whether it was the whole story. How, for example, is it possible to argue that that the high level of unemployment in those years could be so catastrophic, and in the same breath argue that things are just as bad in 2024, when levels of unemployment are much lower? You start to wonder a little why he can say all this with such clarity – and yet no one else could. Is something missing?
By the end I thought he’d started to unwind his own case; and the use of language doesn’t help. One can understand a passionate believer using phrases such as a gaping vacuum” or a “carnage of failure” in policy or “ a shrinking echo chamber of ideological obsessives and cranks”; but it is possibly not the kind of delivery that will sway the neutral or uncommitted reader. It swayed me in the opposite direction.
Still, I warmed to his humanity more and more. His intentions are the best: his (borrowed) refutation of Thatcher’s no such thing as society deserves to be quoted: ”no human being can reflect their humanity if they only pursue their own selfish interest, which will hurt the social body”. Quite so, Will. Most unusually, this book goes beyond moans about the way we’re doing things wrong, but also offers convincing solutions that – he presses us to believe – would set things right. Or at least, righter. I wouldn’t dream of arguing with him.
I have to admit to being something of a fan of the author. I first encountered his work over twenty five years ago, and I have enjoyed the various updates over the years. This is the latest iteration, written with the prospect of a Labour government with a significant majority in the House of Commons. It is an account of where previous Labour governments have gone adrift and outlines what needs it happen to ensure that a process of national renewal can begin straight away.
The first half of the book is an analytical history of the UK from about mid-Victorian times to the present day. It considers why the Conservatives have won so many General Elections (a divided opposition) and how that has moulded the country in the present day (the 'grip of laissez-faire'). Add a dose of individualism and we are roughly where we are today - a focus on the individual rather than the community, the prioritisation of material wealth over spiritual wealth. Where do we go from here?
The starting point is the 'super majority' that the Labour government has in Parliament. It will be able to govern with little external opposition for some time to come. Of course, internal opposition is a possibility, and, in many ways, is a theme of the book. However, let's assume a relatively cohesive period of government, what next? The author offers two solutions.
The first is the restoration of a degree of mutuality into society - to instil a view that we are all in this together, that we all have a part to play. The vehicles for this are the traditional public services - health, education, social care - that have been neglected over the past decades. The second solution is a more broadly based period of prosperity. Kick started through public investment aimed at raising labour productivity - the key to rising prosperity. This means better transport, improved skills, a better digital infrastructure. If this can happen, then tax proceeds will improve to provide the necessary funding.
It's something of a utopian vision. I can't quite see how the transition to mutual well being will take place in an age of such self centred action. There is only so much that government can do. It can legislate that we are nice to each other, but for that to happen, we need to change our mindsets to being nice to each other. I can't quite accept the way in which, after decades of neglect, the places left behind will suddenly become included. This is a huge job and I do wonder if it is being set up to fail? It's almost as if mistakes this time are guaranteed. This would be unfortunate because the author makes a really good case this it would leave us all worse off.
Loved the way he frames the intertwining history and heritage of the Liberal and Labour parties, with the Liberal party providing the latter much of the intellectual heft.
It, Resolution Foundation's Torsten Bell's book, the Fabian Society's series pamphlets on housing and prosperity and IFS's Paul Johnson's books all referencing one another and aligned, with housing, implementation of tax laws being front and centre of their policies to tackle poverty, as well as the two child benefit cap. All more or less aligned on updating the council tax system that is predicated on 30 year old house values, and assigning that to homeowners rather than renters. And in empowering local councils with more decision-making power, rather than being subcontractors of the federal govt.
Also Hutton like Mazzucato notes how the civil service has been eviscerated and likes to outsource thinking to equally bright but equally inexperienced but better paid consultants, and how it needs to reclaim in-house specialism and expertise.
One of the central things he writes that could easily get lost in the book is that fairness, kindness, tolerance, openness, admiration for those who dare are core liberal British values, but the problem is that the Liberal left in Britain have never been marshalled these into a sustained political project.
This is also hugely aligned with what Nate Murphy wrote in his self-published book called The Ideas That Rule Us. He came from the perspective of the Wengrow and Graeber anthropological and archaelogical view of human nature to argue that we all innately agree on fairness, care, and cooperation, and if we miss one of those legs of the stool, we'll lose balance. (Cooperation required for capitalism.)
Also aligned with UC Berkeley linguist prof George Lakoff's The Political Mind who says that liberals should be unapologetic in standing for those things.
What he gets very wrong is his aversion to anti-racism in the form of BLM and activism for Palestinians. How can any self-respecting social liberal be anti-anti-racist?
This book is informative and packed full of facts to support the arguments it makes. It is well written and the author is clearly very knowledgeable about the subject matter.
I picked this up as I have an interest in politics however I am far from any expert and haven't ever studies politics. I felt like that put me at a bit of a disadvantage in reading this book which at times I found quite dense and not the easiest to understand.
I persevered because it felt to important to put down and I am glad I did while also being pretty sure that some parts of the book remain impenetrable and I probably only understood about 75% of the contents.
At times this book is quite depressing - but only in so far as it is an honest reflection of the state of UK politics and the UK economy which is a thoroughly depressing topic right now. The author did a great job at explaining how decisions over the span over history have led us to this point and the interests of some invested parties have been served along the way.
The author clearly has a view of current politicians; a negative one and this comes across clearly however he uses evidence to support his views. While I don't completely agree with his views; he certainly made a very compelling argument and it made me reflect on how much our opposition parties are not offering a strong alternative at a time when we need it most.
There is a message of hope in this book and some strong suggestions about what is needed to start putting things right which I appreciated - it is easy to tell people where things have gone wrong, it is much harder to offer solutions to the problem. This author did not take the easy route.
This is a good book, but it is dense and I think some knowledge in politics and economics is needed to really embrace and understand it fully
As someone who follows British politics quite closely, I was looking forward to this read, and it certainly did not disappoint. For me, I think at least some knowledge of politics would be useful when reading this book, as it is quite complicated in parts, so some prior knowledge would definitely come in handy.
What we have here is quite a brilliant breakdown of how the UK got into and found itself in the mess we are currently in, and what could be done to mitigate and fix the damage. It's an informative read, packed full to the brim with lots of convincing arguments, along with interesting facts and figures to support said arguments.
I have to say, I don't agree with all of Hutton's views, but he certainly makes convincing arguments for everything he puts forward, and backs those up with actual evidence. A Lot of Hutton's points seem to me to be steps in the right direction and offer us hope that one day, things might change.
Very intersting and thought provoking read. Would suggest that this is a good companion read alongside James O'Brien's "How they Broke Britain" whilst O'Brien focuses on the political destruction of the UK Hutton has a sobering analysis of the economic decline and plight of the UK leading to all of our social and political issues. Hutton provides an excellent overview from the 19th century to the current day and highlights how the 'laissez-faire' beliefs has had such a profound and destructive impact on the social fabric, political landscape and economic opportunity in the UK. Hutton provides a bold and appealing solution which flies in the face of what is taking place in the world today -mainly that the liberal/left should be bold in Roosevelt style 'New Deal' policies, stop fearing being socailly radical when they have power and fearful of upsetting the radical right. I do hope that Starmer and Rachel Reeves have read this book - but so far the signs don't look good.
I found the suggestions on how to generate more private investment and hence growth into the UK particularly thought provoking. It was good that the amount of public investment needed to tackle net zero targets and address regional inequalities was made explicit. I would have liked more detail on how the eye watering large amounts of £2 trillion suggested could be achieved. Also a better quantification of the extra revenue needed to address the crisis in the public sector services and linking that to the amounts (and source) of extra taxation.
Difficult to read a book written in anger at 14 years of conservative party rule titled "This Time No Mistakes" without a wry smile, comparing the vision and Keir Starmer's endorsement with the reality after just over a year of Labour government.
This aside, it is an interesting analysis of the political history and set of recommendations. To go on the shelf alongside "Two Hundred Years of Muddling Through..."
- Could start at chapter 10 - Reasoning to why his doctrine is best is hardly as good as the details on his policy - Interesting to see a broad view on a Starmer-like perspective
Will Hutton's assessment can't be faulted. But can Labour grow the economy in 5 years? There's more tinkering with tax needed that Will doesn't deal with .
Excellent book full of new ideas & historical context. Recommend to anyone wishing to see a way out of the mess Britain finds itself in in the first half of 2024