The Leave victory in the British referendum represents a
moment of political confusion — a hiatus in the opposition between social
classes. No class appears capable of directing events. The ruling class
has no clear plans for the future, and seems temporarily stunned.
The working class and the poor have expressed great anger at
the state of affairs of both society and nation, but are also deeply divided,
with contradictory ideas prevailing in their midst. The formless middle class
is deeply frustrated at the turn of events and would like a firm hand at the
tiller, but has no idea how to achieve this outcome.
Such moments call for a decisive political force to alter
the social balance. Historically, moments like these have been captured by
powerful personalities, who placed their stamp on social development, but
there is no Churchill, not even a Pitt or a Wellington, in Britain at present.
Instead, the responsibility for taking the country out of
the impasse lies with the personnel of the established political parties. Nor
will the sense of confusion last long. Already the Tory Party, ruthless
electoral machine that it is, has begun to adapt itself to the new conditions.
If it succeeds, the outcome for working people will be thoroughly negative.
This is the peril of the referendum.
The onus for averting such an outcome and taking the
country forward lies with the Labour Party, which also faces profound turmoil.
The Labour Party could give shape to the yearnings of the working class and
the poor, whether they voted for Leave or Remain.
It is incumbent upon it to present a fresh vision of society
and nation, taking Britain down a path that favors the interests of the great
majority. This is the promise of the referendum, but for that the Labour Party
must put its own house in order.
The referendum has created this sharp choice for Britain
because it represents a shift of the tectonic plates in British society. A
careful look at the results together with an extensive exit poll of more than
twelve thousand people conducted by Lord Ashcroft polls — considered in the
context of preceding political events — reveal two rifts, one far more
profound than the other.
The Minor Rift
The minor rift is present within the British ruling
class: the majority of financiers, industrialists, merchants, real estate
speculators, and others favor staying in the European Union, while a
much smaller minority have opted for Brexit. The evidence of the relative
size of the two sides is undeniable.
More than 80 percent of Confederation of British Industry
(CBI) members have come out in favor of Remain,
while a mere 5 percent have declared for Leave. While a
veritable roll call of British business leaders signed letters to the press
advocating Remain, a vocal and well-connected minority has come out in favor
of Leave.
This state of affairs is not surprising. The
economic interests of the bulk of the British ruling class lie in close
connections with the European Union, particularly in the freedom to trade
without barriers within the Common Market.
In 2015 44.4 percent of British exports went to the
European Union, while 53.6 percent of imports came from the same; there is
no doubt that any significant disruption of these flows through tariffs or
other barriers would have a negative effect on British big business.
Furthermore, the financial operations of the City also
dictate remaining in the European Union; the City operates as a huge
offshore center for the European Union, and despite the fact that the
putative integration of European banking would probably have a negative impact
on its activities. The Single Supervisory Mechanism and the rest of the
regulatory institutions created by the European Union to oversee its Banking
Union are likely to affect the freedom of the City to engage in speculative and
other business.
Despite this interdependence, Britain is far less integrated
into the EU networks than the core countries of the union. Trade links between
Britain and the European Union are actually among the weakest within the
twenty-eight-member union, similar by order of magnitude to trade flows between
Greece and the European Union as well as Italy and the European Union. In
contrast, for both France and Germany trade with the EU accounts for nearly 60
percent of exports and 70 percent of imports.
By contrast, the Leave side of the ruling class is a
motley group without a strong sectoral character, who partly hope to trade
more intensely outside the European Union. More than that, however, Leave
supporters hope to advance a more thorough neoliberal agenda by ridding Britain
of EU regulations and further reducing labor rights and social protection.
These noble aspirations certainly do not leave the rest of
the British ruling class unmoved, and the relatively modest size of the Leave
group should not obscure its considerable social weight and significance.
Above all, the Leave side reflects the long-standing
suspicion of the entire British ruling class toward the economic and political
ambitions of the EU project. Leave supporters have acted as the inner
voice of the British establishment, reminding even Remain supporters that
something is not quite right with the European Union, even if no-one is
entirely clear what that is.
It is not hard to find evidence of the skeptical attitude
toward the European Union that extends across the British ruling class but
takes a sharp form only with the Leave side. Britain refused to join the
European Monetary Union (EMU) and the chances that it would eventually adopt
the euro were almost nil.
Avoiding the EMU turned out to be a wise decision in the
wake of the 2008–9 financial crisis, but it also gave rise to a long-term
problem for Britain, given that the European Union as a whole has come
increasingly to rely on the institutions of the common currency. The European
Central Bank, the Eurosystem, the European Stability Mechanism, and a host of
other institutions that are vital to the monetary union have become the locus
of policy-making within the EU.
Indeed, the European Union has effectively reshaped
itself since 2010 to ensure the survival of the euro. It is far from clear how
Britain would have continued to function within the EU while refusing to
participate in the EMU.
Trade relations between the two are certainly important, but
trade alone would never have been enough to ensure the integration of Britain
into a changing European Union. The Leave side, in its own inarticulate
manner, has reflected this core difficulty faced by the entire British ruling
class.
The Major Rift
The true significance of the referendum, however, is that
the rift within the British ruling class has acted as catalyst for the
emergence of a far deeper rift within British society. This is a common
occurrence when great historic events take place.
If the ruling is class is uniform in its outlook, it is much
harder for deeper rifts in society to come to the surface; the dominated
classes have few opportunities to voice their desires and demands. But if
the ruling class itself is split, deep social rifts have the potential to
become yawning chasms. This is precisely the state that Britain finds itself in.
Income and Employment
It is undeniable that the majority of the poor and the
working class in Britain have voted in favor of Leave. According to the
Ashcroft poll, 64 percent of the C2, D, and E categories voted for Brexit; these
are basically skilled and unskilled manual workers, casual workers, those who
depend on the welfare state for their income, and so on.
In contrast, groups A and B — higher and intermediate
managerial, or administrative layers — voted to stay. Group C1 — junior
managerial, or administrative layers — were split roughly down the middle.
These sociological descriptions correspond poorly with the
traditional class categories in Marxist analysis. For one thing, they don’t
include a ruling class, or even a well-defined capitalist class. Yet they still
highlight the social composition of the voting camps. The poor and the
working class have voted, by and large, for Leave.
The middle class, on the other hand, especially the
higher professional and managerial groups have opted for
Remain. This seismic shift reflecting a profound
divide in British society, lies beneath the class hiatus in the
country at present.
Geography
The significance of this rift is made visible by the
geographical distribution of the referendum results (which have been provided
by the BBC). The social balance always has a geographical dimension reflecting
the distribution of skill, the local accumulation of wealth and poverty, and
the historical accretion of class struggles.
Britain as a whole voted 51.9 percent for Leave and 48.1
percent for Remain. Within these percentages, England voted 53.4 percent
for Leave and 46.6 percent for Remain — very similar to Wales’s 52.5 percent
and 47.5 percent, respectively.
In contrast, Scotland voted 38 percent for Leave and 62
percent for Remain, while Northern Ireland voted 44.2 percent and 55.8 percent,
respectively. Thus, there is no doubt that the overall result for
Britain was driven by England, which calls for closer examination.
A simple way of capturing the geographical rift in England
is to consider the “stronger” results, that is, the local percentages exceeding
60 percent in favor of either Leave, or Remain. This would provide an
indication of the geographical concentration of “stronger” views, thus
affording sharper insight into the class composition of the vote.
The list below includes the majority of referendum areas
that voted at or above 60 percent in favor of Leave, as well as the majority of
the referendum areas that voted at or above 60 percent in favor of Remain
(hence 40 percent or less for Leave).
More than 60 percent for Leave: Barnsley 68.3%, Basildon
68.6%, Barking & Dagenham 62.4%, Dartford 64.2%, Doncaster 69%, East Riding
of Yorkshire 60.4%, Epping Forest 62.7%, Fenland 71.4%, Havering 69.7%,
Hartlepool 69.6%, King’s Lynn & West Norfolk 66.4%, Kingston upon Hull
67.4%, Mansfield 70.9%, Medway 64.1%, Newcastle under Lyme 63%, North East
Lincolnshire 69.6%, North West Leicestershire 60.7%, Oldham 60.9%, Peterborough
60.9%, Redcar & Cleveland 66.2%, Rochdale 60.1%, Sandwell 66.7%,
Scarborough 62%, Shepway 62.2%, South Staffordshire 64.8%, Stoke on Trend
69.4%, Sunderland 61.3%, Tameside 61.1%, Telford and Wrekin 63.2%, Tendring
69.5%, Thanet 63.8%, Thurrock 72.3%, Torbay 63.2%, Wakefield 66.4%, Walsall
67.9%, Wigan 63.9%, Wolverhampton 62.6%.
Less than 40 percent for Leave: Barnet 37.8%, Cambridge
26.2%, Camden 25.1%, Hackney 21.5%, Hammersmith and Fulham 30%, Hackney 24.4%,
Islington 24.8%, Kensington and Chelsea 31.3%, Kingston upon Thames 38.4%,
Lambeth 21.4%, Lewisham 30.1%, Oxford 29.7%, Southwark 27.2%, St Albans 37.3%,
Tower Hamlets 32.5%, Waltham Forest 40.9%, Wandsworth 25%, Westminster 31%.
Several conclusions are immediately apparent:
The “strong” Leave vote was widely and evenly spread
across England.
Large groups of the working class in the North voted
strongly for Leave.
Areas of pronounced poverty across England voted strongly
for Leave.
There were “strong” Leave votes in working-class areas in
the South, particularly around London; these are sometimes called
“white-flight areas”.
The “strong” Remain vote was extremely concentrated in
London, particularly in the working-class areas that contain large
concentrations of second- and third-generation immigrants. Note, though,
that several of these areas have also been undergoing a process of
gentrification and have substantial concentrations of the middle class.
The better-off areas of London voted strongly in favor of
Remain. Very few other areas of the country voted similarly, including
Cambridge, St. Albans, and Oxford.
There is no evidence at all that the Leave vote was heavily
concentrated in parts of the country that have presumably suffered disproportionately
from the form of capitalist development of Britain during the last several
decades.
On the contrary, the Leave vote was spread fairly evenly
across the country, even at its “strongest”. In contrast, the Remain vote
was far more heavily concentrated, indeed its “strongest” instances were
extremely concentrated in London.
London has always been different from the rest of the
country, as all those with even a passing awareness of English history know. At
present its concerns and aspirations reflect the large resident middle class
whose cosmopolitan outlook typically favors Remain. This class has exceptional
access to the media, and its views are transparently out of kilter with the
rest of the country.
The concerns and aspirations of London also reflect the
large concentration of second- and third-generation working-class and poor
immigrants, evident in the strong Remain vote in areas such as Hackney,
Lambeth, and Lewisham.
It should be stressed, however, that the cosmopolitan middle
class of London enjoys a strong ideological and cultural preeminence in many of
these areas as a result of advancing gentrification. This is strengthened by
the relatively peaceful coexistence of communities within the areas undergoing
gentrification.
The outer periphery of London, in contrast, particularly
the so-called areas of “white flight,” exhibits a very different behavior,
often strongly in favor of Leave.
In sum, it is apparent that the working class and the poor
across England have voted for Leave. This conclusion is
further backed by some of the qualitative findings of the
Ashcroft poll. While a majority of those who are working full- or part-time
voted to remain, most of those who are not working voted to leave, as did
two-thirds of those on a state pension. A similar proportion (two-thirds) of
tenants of council and housing association tenants also voted to leave.
The poorest had few doubts, it seems. They wanted out.
This also consistent with another finding of which no
little fuss has been made in the international media: those with university
degrees, especially higher ones, voted to remain, while a large majority of
those with only secondary education voted to leave. The international
chatterers discovered to their horror that the working class and the poor, by
and large, do not go to university.
Quite obviously then, the strong majority in favor of Leave
must have been the result of ignorance, and possibly obtuseness . . . in days
of yore the habits of personal cleanliness and the dress codes of Leave voters
would also have come in for mockery. Class prejudice against the poor,
especially when they dare to express strong views, has never been subtle.
Why Vote Leave?
A referendum is by its nature a binary choice: yes or no. It
is undoubtedly an exercise in democracy but of a very special nature conducive
to expressing frustration and rejection. In the case of EU-related referenda
there is a long history of rejection votes in several countries, most
prominently in the Greek referendum of July 2015.
It appears that the people of Europe, when asked about
the European Union, express alienation and distaste; united Europe appears not
to be a grassroots project.
No wonder that the established powers within the European
Union avoid referenda like the plague and take extraordinary action to repeat
votes until the “right” result is produced, or even altogether ignore a “wrong”
result, as happened most egregiously with the Greek referendum.
The British referendum is indisputably an instance of
accumulated frustration among the working class and the poor in England
resulting in a protest vote in favor of Leave. The question is, what were
they frustrated and angry about, and why was their frustration channeled toward
the European Union?
Pressure on Wages, Disposable Income, and Welfare
Provision
One key underlying cause is not hard to find: British
workers and British households have faced stagnating and even falling wages and
disposable incomes since 2000, as Figures 1 and 2 show. The bulk of the
British population has faced ever-tighter living conditions for a decade and a
half.
The problem of wages and disposable income became
especially severe after the major crisis of 2008–9, although there has been
some improvement after 2014. That gigantic shock came after three decades of
exceptional expansion of finance that has resulted in pronounced
financialization of the British economy.
Financialization has produced tremendous profits and
benefits for a narrow elite that is often associated with the City of London,
while piling up insecurity and economic pressures for working people.
The global crisis of 2008–9, pivoting on a few banks,
brought large deficits to the British government and has thus resulted in a sustained
policy of austerity, designed and implemented by the Tory government and its
chancellor, George Osborne.
Austerity has brought sustained pressure on welfare
provision across the country, particularly on the National Health Service,
education, and benefits for the poor. The last five or six years have
witnessed not only unremitting tightness on wages and disposable income for
British workers but also a general scrimping on social provision.
To cap it all, during this period there has been no
reckoning for the bankers and financiers who took advantage of the boom
conditions of the previous years and who have rightly attracted the ire of
working people. There is absolutely no mystery about the accumulated
frustration among the working class and the poor in Britain.
Migration, Racism, and the European Union
Frustration, however, is rarely expressed simply or directly
in social affairs. It is almost always a mediated process, and it is impossible
to predict the spill-over point. In Britain today the issues of migration and
racism have been paramount during the campaign of the referendum and
afterwards.
There is no doubt that the Leave camp made hay with the
issue of immigration during the campaign. However, to ascribe up the
referendum result to racism or hostility to migrants is nonsensical, and
smacks of the contempt toward workers and the poor often exhibited by their
social “betters”.
There is certainly racism within the Leave camp, but to
appreciate the reaction of the workers and the poor to the issue of migration
it is vital first to have a look at migration flows.
During 1991–99 the average net inflows of migration into
Britain (excluding flows of British nationals) came to 233,000 a year, of which
14,000 were from the European Union and 53,000 from the Commonwealth. The
annual average during 2000–3 increased to 284,000, of which 9,000 were from the
European Union and 101,000 from the Commonwealth.
In the years that followed the net inflow rose further
and its composition changed heavily toward EU nationals. In 2005 the net
inflow was 294,000, of which 96,000 were from the European Union and 120,000
from the Commonwealth. By 2014 the net inflow was 375,000, of which 178,000
were from the EU and 86,000 from the Commonwealth.
In short, precisely at a time when British wages and
disposable incomes came under sustained pressure, and exactly when austerity
was imposed on the country adding pressure on welfare provision, the net
inflows of migrants increased considerably. Within these flows the
proportion from the European Union increased dramatically, particularly from
the countries of Eastern Europe whose people had recently acquired the
right to reside in Britain.
It would have required very focused and detailed political
and social campaigning for this difficult social situation not to create
tensions among British workers and the poor. When the queue at the accident and
emergency section of a hospital or at a general practitioner’s surgery is hours
long and half of it comprises migrants, the immediate reaction of many would be
to blame migrants.
It would certainly be a wrong reaction and it might even
have racism attached to it, but unless someone systematically explained the
impact of the disastrous policies of Tory governments and offered realistic
options, frustration would turn toward the obvious targets.
There is little evident racism in the referendum result, at
least as far as the Ashcroft poll is concerned, and certainly none addressed to
the usual victims of racism in Britain, i.e., Asian and black people. Indeed, it
appears that about one-third of those who describe themselves as Asian and
one-quarter of those who describe themselves as black voted for Leave.
There is no doubt, nonetheless, that the majority of the
Asian and black communities have been deeply concerned about a possible racist
backlash following a Leave vote, in view especially of the political
leadership of the Leave camp.
The main concern of the Leave voters (49 percent) appears to
have been “the principle that decisions about the UK should be taken in the
UK.” A third (33 percent) said that the main reason for leaving the European
Union was that it “offered the best chance for the UK to regain control over
immigration and its own borders.”
The working class and the poor were explicitly concerned
with democracy and sovereignty in relation to the European Union, even if these
concerns had been overlaid by the issue of migration. The frustration
accumulated over the years found vent in EU membership because workers and the
poor felt that the EU directly affected the political levers and the democratic
mechanisms available to tackle their problems.
Britain voted Leave not simply because working people and
the poor were angry at the condition of the country. The real point is that
they viewed the European Union as an alien, undemocratic set of institutions
that would not provide a suitable framework for tackling problems of economy
and migration. Sovereignty is a summary term for command over one’s own
environment and it is fundamental to exercising democracy.
The working class and the poor understood the point
clearly: in contemporary capitalism, transnational bodies, such as the European
Union, are remote from the levers of democratic control and become a natural
terrain for big business. In contrast, the nation-state provides a field within
which it is possible to fight for certain basic rights and demands.
People in Britain have had ample opportunity over the last
few years to observe the performance of the European Union, particularly in connection
with the bypassing of democracy and its domineering attitude toward Greece,
Italy, and elsewhere.
Given that the core of the British ruling class as well as
the main beneficiaries of the policies of the last few years came out openly in
favor of Remain, the decision of the majority of workers and the poor to leave
was quite natural. Frustration found its natural outlet in rejecting the
European Union, and with good reason too.
A Political Crisis
The main contradiction and chief political problem of the
referendum result is that the anger and the justified concerns of working
people and the poor in England have been exploited by a brazenly (descarada) neoclassical and unprincipled right.
The Left, in contrast, has been unable to formulate a set of
proposals or a radical program that would appeal to the great majority of the
British people. The voice of workers has been muted or confused. This is the
vital element in the class hiatus in the country at present.
The result of the referendum has thrown the Tory Party
into a major upheaval, reflecting the rift within the British ruling class.
The Remain side, led by the ex-prime minister David Cameron, has shown
boundless arrogance and lack of understanding of the true state of the country,
as befits a bunch of Public School and Oxbridge graduates.
Confident that they express the interests of the main
section for the ruling class, and thus that they would win, they have been
thrown completely out of balance by the result.
Cameron had gambled on an “easy” victory in the referendum
to deal with the division within the Tory Party, and thus paid with an
ignominious demise. Even more staggering, however, has been the frivolity of
the Leave side, led by the Chief Pretender Boris Johnson, another Oxbridge
graduate, who in truth did not expect to win.
His even more ignominious demise, stabbed at the back by his
erstwhile ally, Michael Gove, is a token of just how disjointed the Leave
side is. Further evidence to this effect has been adduced by the departure
of Nigel Farage from the leadership of the United Kingdom Independence Party
(UKIP). The leading lights of the Leave camp, by and large, have proven
incapable of offering leadership to the British ruling class at its time of
confusion.
The confusion will soon abate, however. In the near
future there will be a leadership contest in the Tory Party to elect someone
with the authority to speak for the ruling class a whole. It is likely that the
main contest will be between Teresa May, the voice of the Tory electoral
machine and traditional pragmatism, and Michael Gove, the ambitious
right-winger from a fairly humble background who could perhaps give expression
to the harsh neoliberalism within the Leave side.
In view of the victory of Leave, the long-standing rift
within the Tory Party is likely to be bridged in favor of a pragmatic exit from
the European Union. This will also probably be the choice of the British
ruling class as a whole.
It will not be an easy route for Britain to take and the
country will have to renegotiate a series of treaties with the European
Union over a period of time. The Tories will probably adopt a harsh
neoliberal agenda domestically, coupled with a compromising attitude with
regard to the EU and aiming for some sort of “special relationship.”
No one should be rash enough to think that the European
Union will deal with Britain from a position of strength. The vote to
leave has delivered a body blow to an EU that is already reeling under the
failure of the EMU and the lack of growth across the continent. Even
worse, there is a widespread perception that the “project” of Europe is
undemocratic and failing.
Euroskepticism has sunk roots during the last few years. If
there is a major crisis in Italy at the end of 2016 — as is more than likely,
given the state of Italian banks — the pressures on the European Union will
become enormous.
Germany, the real leader of the European Union, is fully
aware of how intractable the situation of the European Union is, and its
leaders will be very careful in dealing with Britain. Whoever governs
Britain in the coming period will probably have some room to maneuver.
In this context the role of the Labour Party will be
critical. The party has been led by its left wing since the surprising
ascendancy of Jeremy Corbyn in 2015. The new leadership has suffered from
ceaseless internal strife motivated by the parliamentary group that leans to
the right and could not contemplate policies that would decisively break
with the neoliberal framework of the last four decades.
Yet the country is ready for drastic change, as even the
referendum result has shown in its own warped way. Corbyn still enjoys
substantial support from the Labour grassroots expressed through Momentum, an
organization that has achieved national status in a matter of months. He
also has clear support from the main trade union leadership, always a vital
factor in British politics.
Corbyn’s problem, however, is that under his leadership
the Labour Party has misjudged the referendum campaign, and thus finds himself
under enormous pressure. Referenda are by their own nature “yes or no”
choices, and those who sit on the fence pay a price.
The Labour Party adopted the stance of a mealy-mouthed
Remain, while its natural constituency, the working class and the poor, voted
for Leave. Even worse, at least a third of Labour voters also voted to
leave. Corbyn was not alone in taking a middle-of-the-way position in favor
of Remain.
Much of the trade union leadership also did the same,
worried by the neoliberal agenda of the leadership of the Leave camp and the
direct threat to labor rights and loss of social protection in the eventuality
of an EU exit.
The result has been confusion and bewilderment among Labour
supporters, not least because the right-wingers and racists across the country
have had a spring in their gait since the result was announced.
The confused state of the Labour Party has offered a
golden opportunity to its conservative wing to challenge Corbyn on the
flimsiest and most extraordinary of excuses: apparently he should have offered
stronger support to Remain precisely as his natural constituency in the country
was moving toward Leave in great numbers! That would indeed have been an interesting
way to commit political suicide.
The aim of Labour conservatives is clear: defeat the Left on
any excuse and force it into the wilderness, thus returning politics to the
tried and tested formula of the past four decades.
To cap it all, there is also the threat of a new
independence referendum in Scotland, which voted strongly in favor of
Remain. The prospect of a United Kingdom dominated by neoliberal Tories brings
shivers to Scottish spines. For the Labour Party, which has lost its support
in Scotland during the last two decades, Scottish independence would eliminate
any prospect of radical government in Britain for the foreseeable future.
Yet an element of caution is required in connection with
Scotland too. The Scottish National Party, which has effectively inherited the
mantle of Labour in the working-class areas of Scotland, has actually performed
very similarly to Labour in the referendum.
According to the Ashcroft poll, 36 percent of SNP
supporters voted for Leave, even though their leader, Nicola Sturgeon, was one
of the most vocal supporters of Remain in the country. The working class
and the poor in Scotland might not be so different from those in England, after
all.
Labour, led by the left wing, should break the hiatus and
offer the country the program and the direction that it clearly wants.
It is apparent that Britain craves more democratic
institutions that would ensure sovereignty. The European Union is not the
answer to any of the demands of the working class and the poor, and Britain has
already opted to leave. The Labour Party should put forth proposals that
expand democracy and sovereignty from the perspective of workers and the poor.
In effect, it should help to redefine the nation in an
inclusive way for the conditions of today. The concept of the citizen,
transcending gender, race, and ethnicity, is the lever for democracy and
sovereignty in Britain and across Europe. It also provides a foundation for
policies on migration that protect the rights of migrants as well as of the existing
inhabitants of countries.
On this political basis the Labour Party should offer an
economic and social policy to the British people that could deal with the
pressure on the National Health Service; tackle the growing housing pressure;
lift austerity; nationalize transport, steel and banks; and engage in a
determined campaign to “definancialize” the country.
The research and knowledge on how to engage in such a
strategy already exist. If the Labour Party went confidently down this path,
it would secure the support of the great majority in Britain, thus taking the
country out of its historic impasse.
Britain could then act as a beacon of hope to a failing
European Union that is already raising the specter of chaos. That is the path
of hope.
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