The ruling-class cannot continue to rule in the old way, of the last 40 years, and the working-class is not prepared to continue in the old way, but is, currently, leaderless, and unable to clearly assert its own interests either. The petty-bourgeoisie voted for Reform, and, in places, the Tories, but the working-class and middle-class, desperate to remove the Tories, was left with the choice of Blue Labour, Greens, and Liberals (as well as SNP and Plaid in Scotland and Wales). As Blairism/neo-Liberalism collapsed, and the petty-bourgeoisie was able to congeal around Brexit, we got Boris Johnson, and ultimately Truss, just as, in the US, it led to Trump, and is leading back to him, and in France led to Macron, and, now, increasingly towards Le Pen.
Starmer was put in place by the forces of the Right, around Blue Labour. He is their prisoner. But, Blue Labour no more than Johnson and Truss can deliver the fantasy of Brexit. So, what is the game of the Blair-rights inside Blue Labour, of sticking with its agenda? The ambition of Blair, and his allies was to free itself from the restrictions of the link to the unions, and wider labour movement. He never managed that, because, docile and compliant as the union bureaucrats are, they had no reason to vote to sever the link, and undermine their own leverage. That remains the case, but, if Blue Labour continues on its doomed, reactionary nationalist trajectory, and as, inevitably, its “Labour Brexit” nonsense collapses, increasingly, the progressive, working-class base of Labour will desert it, at least when it comes to voting, for the Liberals and Greens, where no such link to the unions and wider labour movement exists. That is occurring already, as seen in the last election, despite the massive pull to vote Labour to ensure the removal of the Tories. It is also happening with the progressive, middle-class Conservative voters too, as the Tories move like Lemmings in the direction of Reform, and ghettoization.
The Blair-Rights are sitting tight in their government positions, and in the party's machinery, local councils and so on, waiting for that process to play out. They may stage a coup inside the PLP, at the appropriate time, to oust Starmer, and simply link up with their counterparts within the Conservative Party, to make a formal alliance with the Liberals, as the abortive Change UK attempted, or they may simply split, en masse, to join up with the Liberals, leaving a rump Blue PLP, that would lose its majority. Next year's local elections, and any by-elections will provide a basis and catalyst for such tactics to be worked out.
At that point, with an obviously failed Brexit totally discredited and loathed, the resultant, centre-right Liberal-Conservative Party, would be in a position to fulfil the wild dreams of Swinson, in 2019, to win a vote of no confidence against Blue Labour, and become the government, pushing forward the legislation to re-join the EU. I would be amazed if discussions had not already occurred to ensure that any such legislation was welcomed and supported by the EU, despite Streeting's protestations to the contrary. It does not change the fact that the neo-liberal agenda of the last 40 years is dead, but, membership of the EU, at least, reduces the constraints on the government, as it seeks to tackle the problem. The additional £40 billion of government revenues from ending Brexit would go a long way, and the additional growth and removal of restrictions, boosting profits ameliorates any falls in real asset prices.
The addition of billions of pounds into the government coffers, as a result of ending Brexit, lends itself to a removal of austerity, and the growth that the government claims is central to its agenda. A return to the EU, and continued move towards political union, removal of existing barriers and so on, facilitates a rise in profits. But, also, as seen in the 1960's, the ruling class can be persuaded to accept a fall in the real value of their fictitious-capital, provided it means the continuation of their position as ruling-class, and a rise in their revenues from interest/dividends and rents. To save the ruling-class, and its system, the state will have to move away from neo-liberalism (conservative social-democracy), and back towards the kind of mildly progressive social-democracy of the 1960's. It is only possible to do that within the context of the EU.
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