How do we create an economy that works for everyone? That is the question that should be at the top of the list for the next leader of the Labour party. It is the question that will continue to shape our politics for years to come.
Alongside this the next leader must find a route back to power from a historic defeat. And to do this, they must unite Labour’s fighting factions, reconnect with communities in its traditional heartlands who have lost faith in the party to make their lives better, and appeal to a broad enough coalition of voters to win an election. The shape of a political project that can pull this off is uncertain, but what is clear is that telling a story about the economy we need and want to build has to be central.
The political fight over whether we should leave the European Union completely eclipsed this much bigger challenge
Our economy is running out of steam. Over the past decade economic growth has failed to benefit the majority of people. As a result, people are on average poorer today than they were in 2008 – recent New Economics Foundation (NEF) analysis showed that average living standards are almost £100 per year lower. There is no other example in modern records of average incomes being lower at the end of a decade – or any other given 10-year period – than at the beginning.