Beyond the market turmoil and political chaos of the past four weeks, we’ve also seen a stark ideological debate re-ignited in our politics. Is it more important to grow the economy, or focus on inequality? We explore what the public think
Beyond the market turmoil and political chaos of the past four weeks, we’ve also seen a stark ideological debate re-ignited in our politics.
On one side the growth boosters in Liz Truss’s Government argued that the priority should be creating a society where everyone's better off, rather than constantly worrying about redistribution. On the other side they argue that the bigger problem is how unequal we are as a society, and that closing the gap between the rich and poor is more important than making the country as rich as possible. In other words is it more important that we have a bigger pie, or a more evenly sliced one?
But away from Westminster, Whitehall and think tankery, what do the public actually think? Over the past year, More in Common has partnered with Kantar Public to try and find out. Having surveyed around 10,000 people at different points over the past year, this is what we uncovered.
Britons certainly agree inequality is a problem. Our polling finds seven in ten Britons consistently saying that there is a gap in the UK between the haves and have nots, with more than half saying too little is being done to close it. At the same time, Britons think that those in positions of power and influence – from Liz Truss and the Conservative Party to Keir Starmer and the Labour Party, even to journalists and civil servants, simply aren’t in touch with the difficulties of day-to-day life. This creates a yawning gap between those in power and the public, one the events of the last seven days will have done nothing to close.
But when it comes to public policy priorities, advocates of a bigger pie find themselves closer to public opinion. The mini-budget’s handling and specific measures may have been an economic and political disaster, but arguments about going for growth do hit home. In fact, generating economic growth is now the second highest ranked public policy priority (only narrowly behind investing more in health care) and above tackling economic inequality. What’s more, that number placing a premium on economic growth has climbed in recent months. There must be some frustration in the Truss Government that while they have persuaded the public they have the right overall idea, it has been let down by being executed so badly.
What explains this apparent paradox between public concern about inequality, but preference for boosting economic growth over tackling it? The answer, our research suggests, is that the public aren’t that concerned with abstract debates at all. Instead, they back concrete measures that will get money into their pockets.
That sentiment has only grown as the rising cost of living bites. Our latest polling found that only 15% of the population were not having to make lifestyle changes to cope with the rising cost of living. Since January this year, the number of people saying they are cutting down on their electricity and heating has risen from 30% to 50% - even in the absence of a public information campaign. More than four in ten also say that they are cutting down on non-essentials. This is reinforced in focus group after focus group where participants explain that even if they aren’t ‘choosing between heating or eating’, they have had to cut out all the things that make life fun: meals out, holidays, activities with the kids. As a result many feel they simply ‘live to work’ and ‘work to live’.
And some are feeling the effects even more painfully, the number having to use food banks has risen to nearly one in ten, with similar numbers saying they have had to take out new credit cards and who have fallen behind on rent. Most starkly, one in five now say that they are skipping meals because of the cost-of-living crisis, a number that rises to 29% among 18–34-year-olds. That in 21st century Britain nearly a third of young adults now say they are skipping meals to cope with rising prices is truly depressing.
Only practical support will help to alleviate these challenges. While the energy price cap guarantee will go some way towards shielding people from the worst of the Winter ahead, it has not yet reassured people. Many remain confused about what the cap means, and the Government needs to do more to explain how it will work. But that alone will not be enough - with concerns about prices set to be compounded by concerns about interest rates and mortgage repayments, more reassurance will be needed for the weeks and months ahead.
Providing that reassurance matters not just for individuals personally, but for the health of our society. In June last year we found the public was about evenly split when asked if in Britain ‘we look after each other’ or ‘it’s everyone for themselves’, but today people think the latter by a two to one margin. That erosion of social trust has created a fertile breeding ground for those who seek to prey on our divisions.
Our recent research suggests that current economic conditions and lack of faith in our political class could see a surge in support for the populist right in the UK, similar to that already seen this year in France, Sweden and Italy. The only way to avoid that outcome and rebuild trust will be for our politicians to explain how their plans, whether through growth or redistribution, will put money in people’s pockets and provide security for the months and years ahead.
Luke Tryl, UK Director More in Common
