Shadow of Blair

Starmer, BlackRock, and Labour's New Neoliberal Path

The shadow of Blair looms, Financial Times

Prime Minister Keir Starmer's recent engagement with BlackRock, the world's largest asset management firm, has sparked controversy and raised significant questions about the Labour Party's future direction. By forging a partnership with BlackRock, Starmer signals a shift towards embracing big business—prompting concern about the implications for public services and whether Labour is abandoning its foundational principles.

Starmer's Meeting with BlackRock

On November 21, 2024, Starmer met with BlackRock executives, including CEO Larry Fink, at Downing Street. After the meeting, Starmer publicly expressed his enthusiasm, stating that his goal to "deliver growth, create wealth, and put more money in people's pockets" could "only be achieved by working in partnership with leading businesses like BlackRock" (Mason, 2024).

This announcement was met with immediate backlash. Many argued that aligning Labour with such a powerful investment firm prioritizes corporate interests over the needs of ordinary citizens. This controversy comes amid growing unrest among various groups, especially farmers, who feel government policies increasingly favour large corporations (Canary, 2024).

Implications of the Partnership

The partnership with BlackRock is a pivotal moment, marking a shift towards corporate interests within Labour's political strategy. Critics argue this shift blurs the line between Labour and Conservative economic ideology, leaving many to wonder if Labour's foundational values are being abandoned.

BlackRock wields considerable influence as a firm managing over $10.5 trillion in assets. Its investment strategies impact sectors like infrastructure and public services, and critics warn that such partnerships risk turning essential services into profit-driven enterprises, disregarding public needs (Gabor, 2024).

What Could BlackRock Want from the UK?

One could hypothesize that BlackRock's interests in the UK may include further opportunities to expand its influence in sectors such as healthcare, infrastructure, and housing. Given its investment portfolio and expertise, BlackRock could stand to benefit significantly from further privatization of the NHS, potentially pushing for a more profit-driven healthcare system.

Additionally, BlackRock may be eyeing involvement in large-scale infrastructure projects such as HS2, where private capital could play a significant role in financing and influencing strategic decisions. With Labour already indicating that the state won't be involved in large-scale house-building projects, it opens the door for private companies like BlackRock to step in, seeking lucrative opportunities in the housing market—potentially exacerbating issues of affordability and access.

These possibilities underscore the profound risk of allowing large corporations to have such substantial sway over public services and national infrastructure, raising critical questions about the future direction of governance in the UK.

The Blair Connection and Labour's Shift Towards Neoliberalism

Tony Blair, former Labour Prime Minister, casts a long shadow over Keir Starmer's leadership. Blair's influence is palpable, and some view Blair as the de facto leader of today's Labour Party, with Starmer resembling more of a Prince Regent than an independent leader.

Blair's advisory role to both Starmer and BlackRock reinforces the neoliberal tendencies within Labour's leadership. This ideological shift diverges significantly from Labour's traditional values and raises questions about the party's future. Starmer pledged his Socialist credentials to win the Labour leadership, repeating these promises during the 2024 general election campaign. However, these commitments increasingly appear disingenuous - if not outright lies.

Blair's career post-premiership—including his role at BlackRock since 2016—exemplifies the revolving door between government and big business. Reports of frequent advice exchanges between Blair and Starmer suggest Blair's market-driven philosophy continues to shape Labour's policies.

There are even rumours that Blair was present during Starmer's recent meeting with BlackRock but was later cropped out of official photographs. Such claims only underscore Blair's continuing influence within the party and further blur the line between their political legacies.

This embrace of neoliberal principles—such as free markets, deregulation, and privatization—aligns Labour closer to Conservative ideology than its historic commitment to state intervention and worker protections. While the party's so-called "securonomics" approach includes community-focused initiatives, it largely adheres to a neoliberal growth model that may conflict with genuine community wealth building.

The Broader Political Landscape

The partnership with BlackRock is indicative of a broader trend within UK politics where corporations are increasingly shaping policy. This development raises serious concerns about accountability and transparency. As Labour seeks to present itself as a pro-business party, it must grapple with the democratic implications of such alliances and the erosion of public trust.

The involvement of right-wing groups amplifying fears about Labour's policies adds another layer of complexity. These groups have exploited fears within rural communities regarding corporate encroachment on agriculture and land ownership. By partnering with BlackRock at a time of heightened scrutiny over corporate influence, Starmer risks lending credibility to conspiracy theories that claim Labour intends to facilitate land acquisitions by large corporations at the expense of smallholders.

Conclusion

As Keir Starmer navigates these turbulent waters, he faces the challenge of balancing ambitions for economic growth with a commitment to accessible and equitable public services. The partnership with BlackRock raises profound questions about the future of the Labour Party and its ability to uphold core values amid increasing corporate influence.

The PFI debacle serves as a stark reminder of the long-term consequences of short-sighted financial decisions. It stands as a cautionary tale of what happens when public services are treated as profit centres rather than as essential infrastructure.

If Labour does not learn from past mistakes related to privatization and corporate partnerships, it risks perpetuating a cycle that undermines the core of social equity in the UK. The implications for public welfare are substantial, and without robust safeguards to protect citizens' interests, this trend towards privatization could have far-reaching consequences for the future of British society.

Moving forward, it is crucial to prioritize sustainable, equitable funding models for public services. The health of our nation—both literally and figuratively—depends on it.

In the meantime, if you need a lightbulb changed, maybe don’t call your local PFI contractor. At those rates, sitting in the dark might just be the better option.

References

Canary (2024) 'Starmer BlackRock meeting prompts furious reaction', The Canary.

Gabor, D. (2024) 'Labour's Strategy: Government by BlackRock?', The Guardian.

Independent (2024) 'Tony Blair keeps texting Keir Starmer with advice', The Independent.

Mason, R. (2024) 'Starmer Defends BlackRock Partnership as Key to Economic Growth', The Guardian.

The Independent (2018) 'The great PFI heist: The real story of how Britain's economy has been left high and dry by a doomed economic philosophy'.

Woodhouse, E. (2024) 'Labour promises to unleash private investment for public services', UCL Policy Lab.