The Liberal Democrat Crossroads: Which way orange man?
May 2001
If you’re looking for classical liberal economics, think again. These new Lib Dems are pushing the bounds of what the party stands for and asking questions of established LD orthodoxy.
THE Liberal Democrats have always been a kind of hodge-podge party. Created out of the union of the soft-left Social Democrats and the classical liberals in the Liberal Party, there has always been a sort of tenuous peace among their membership. But that tenuous peace looks set to explode into an internal struggle with two equally-sized factions ready to duke it out. They are the Liberal Democrats, of course; so any battle that they have, this author is sure, will be mild-mannered and heady stuff. Still, it's the first action we've seen from the orange-tie brigade in a long time and we're ready for it.
In one corner, there are the newly-founded Beveridge Group, loosely hailed as the heirs to the Social Democrats. They have recently organized themselves, led by the efforts of stalwart Scottish MP, Alistair Carmichael, the posh English MP,
Sir Bryant Wolfe, and the Cornish football fan who turned down a Knighthood,
Charles Trevorrow, and aim to question the liberal market orthodoxy that has previously been a foregone conclusion for the Liberal Democrats. In the inaugural documentation explaining the need for such a group, founder Carmichael writes "should the party of Beveridge and Keynes approach issues with a prejudice in favour of the free market system? Should we enter every policy debate with an underlying belief that private is always better than public? I certainly do not think so. That was the approach which led the Conservatives to undertake the disastrous privatisation of British Rail in the mid 1990s." In that short quote, everything that we need to know about this particular group is found.
In the other corner, the Liberal Reformers, the old guard of the Liberal Party. Call them whigs, call them free-marketeers, just don't call them Tories. Led by prominent spokesmen Vince Cable and
Felix Corrington, the Liberal Reformers are committed to finding market solutions from a humane perspective. They seem to be in the ascendency of late, with much of the Liberal Democrats' "new blood" fitting fairly neatly into this mold. In fact, a number of the LibDem's frontbench seats have gone to Reformers lately, with Vince Cable running the economics debate for the party and former and beloved leader Paddy Ashdown making way in Parliament to the young, idealistic, and very sensible David Laws. Though mostly known for their commitment to the free market, Liberal Reformers will tell you that they really stand on four major principles, each as important as the other: social liberalism, economic liberalism, cultural liberalism, and political liberalism.
Of these four major principles, three are relatively uncontroversial in the Liberal Democrat circles. Among Liberal Democrats, if nowhere else, it is a sacrosanct given that proportional representation should be the way Britons vote, that Section 28 should be repealed, and that the Arts should be well-funded and widely proliferated. But ask if the Royal Mail should be a state-run institution, if the government should subsidize housing for the poor, or if taxes should be kept low at all levels of income, and you’ll find that the answer varies depending on who is asked.
This has been the task of party leader Charles Kennedy: to keep both sides onside. So far, Chatshow Charlie has been able to use his affable personality and not-insignificant political nouse to keep his two factions from tearing each other to bits. But rumours are swirling that discontent is brewing on both sides, and a drinking problem is making Kennedy less and less capable of keeping them at bay.
What does the future hold for the Liberal Democrats? Will the Liberal Reformers be able to organize as effectively as the Beveridge Group has? Can the party remain united in the face of tension? These are questions that will have to be answered by Kennedy and his colleagues as we continue to see the era of New Labour unfold.