Clause IV
Encyclopedia
Clause IV historically refers to part of the 1918 text of the British
Labour Party
constitution which set out the aims and values of the party. Before its revision in 1995, its application was the subject of considerable dispute.
In 1918, nationalisation was seen by many voters as akin to modernisation – the nationalisation of the railways was a widely supported policy, for instance, as it would reduce the plethora of uncoordinated and competing companies.
This text is usually assumed to involve nationalisation of the whole economy but close reading of the text shows that there are many other possible interpretations. Common ownership
, though later given a technical meaning by the 1976 Industrial Common Ownership Act, could mean municipal ownership
, worker cooperative
s or consumer cooperatives.
In December 1944, the Labour Party adopted a policy of "public ownership" and won a clear endorsement for their policies – the destruction of the 'evil giants of want, squalor, disease, ignorance and unemployment (idleness)' – in the post-war election victory of 1945 which brought Clement Attlee
to power. However the party had no clear plan as to how public ownership would shape their reforms and much debate ensued.
The nationalisation was led by Herbert Morrison
who had had the experience of uniting London's buses and underground train system into a centralised system in the 1930s. He started with the Bank of England
in April 1946, whereby stockholders received compensation and the governor and deputy governor were both re-appointed. Further industries swiftly followed: civil aviation in 1946, and railways and telecommunications in 1947, along with the creation of the National Coal Board
, which was responsible for supplying 90% of UK's energy needs. 1946 also saw the establishment of the National Health Service
which came into force in July 1948 and in 1948 came the nationalisation of railways, canals, road haulage and electricity. By 1951 the iron, steel and gas industries had also been brought into public ownership.
Labour Party leader Hugh Gaitskell
came to believe that public opposition to nationalisation had led to the party's poor performance and announced that he proposed to amend Clause IV. The left fought back and managed to defeat any change: symbolically, it was then agreed to include Clause IV, part 4, on Labour Party membership cards.
The economic crisis of the 1970s, and the defeats suffered by the trade union movement, as well as the decline in influence of the British Communist party, led to a strengthening of the position of Labour party members who were opposed to Marxism
.
had in 1993, before becoming Leader of the Labour Party, written a pamphlet for the Fabian Society
which criticised the wording of Clause IV for confusing ends with means. Blair put forward a case for defining socialism in terms of a set of values which were constant, while the policies needed to achieve them would have to change ("modernise") to account for changing society. After becoming Leader he announced at the conclusion of his 1994 conference speech that the Labour Party needed a new statement of aims and values and that he would draw one up and present it to the party. The new version was adopted at a Special Conference at Easter 1995 after a debate.
The present version reads:
The new clause did, for the first time, declare Labour to be a "socialist" party, though Blair generally prefers to describe himself as a social democrat
.
Presentationally, the abandonment of the nationalising principles of the original Clause IV represented a break with Labour's past and, specifically, a break with its 1983 Manifesto ("The longest suicide note in history
") in which greater state ownership was proposed.
This has given rise in some quarters to a degree of cynicism among those who see the "Clause Four Moment" as nothing more than a stage-managed row where the leader takes on and humiliates the membership of his own party.
), which succeeded in ending its control by the Militant tendency
in 1974. However the attempt of the Clause Four group to oppose Militant in the Labour Party Young Socialists
(LPYS) was a failure, and LPYS was eventually dissolved. Many of the members of this group such as Mike Gapes
(MP for Ilford South) went on to support Tony Blair's amendment of Clause Four.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
constitution which set out the aims and values of the party. Before its revision in 1995, its application was the subject of considerable dispute.
Text
The original version of Clause IV, drafted by Sidney Webb in November 1917 and adopted by the party in 1918, read, in part 4:In 1918, nationalisation was seen by many voters as akin to modernisation – the nationalisation of the railways was a widely supported policy, for instance, as it would reduce the plethora of uncoordinated and competing companies.
This text is usually assumed to involve nationalisation of the whole economy but close reading of the text shows that there are many other possible interpretations. Common ownership
Common ownership
Common ownership is a principle according to which the assets of an enterprise or other organization are held indivisibly rather than in the names of the individual members or by a public institution such as a governmental body. It is therefore in contrast to public ownership...
, though later given a technical meaning by the 1976 Industrial Common Ownership Act, could mean municipal ownership
Municipalization
Municipalization is the transfer of corporations or other assets to municipal ownership. The transfer may be from private ownership or from other levels of government. It is the opposite of privatization and is different from nationalization.-Services:There have been two main waves of...
, worker cooperative
Worker cooperative
A worker cooperative is a cooperative owned and democratically managed by its worker-owners. This control may be exercised in a number of ways. A cooperative enterprise may mean a firm where every worker-owner participates in decision making in a democratic fashion, or it may refer to one in which...
s or consumer cooperatives.
In December 1944, the Labour Party adopted a policy of "public ownership" and won a clear endorsement for their policies – the destruction of the 'evil giants of want, squalor, disease, ignorance and unemployment (idleness)' – in the post-war election victory of 1945 which brought Clement Attlee
Clement Attlee
Clement Richard Attlee, 1st Earl Attlee, KG, OM, CH, PC, FRS was a British Labour politician who served as the Prime Minister of the United Kingdom from 1945 to 1951, and as the Leader of the Labour Party from 1935 to 1955...
to power. However the party had no clear plan as to how public ownership would shape their reforms and much debate ensued.
The nationalisation was led by Herbert Morrison
Herbert Morrison
Herbert Stanley Morrison, Baron Morrison of Lambeth, CH, PC was a British Labour politician; he held a various number of senior positions in the Cabinet, including Home Secretary, Foreign Secretary and Deputy Prime Minister.-Early life:Morrison was the son of a police constable and was born in...
who had had the experience of uniting London's buses and underground train system into a centralised system in the 1930s. He started with the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
in April 1946, whereby stockholders received compensation and the governor and deputy governor were both re-appointed. Further industries swiftly followed: civil aviation in 1946, and railways and telecommunications in 1947, along with the creation of the National Coal Board
National Coal Board
The National Coal Board was the statutory corporation created to run the nationalised coal mining industry in the United Kingdom. Set up under the Coal Industry Nationalisation Act 1946, it took over the mines on "vesting day", 1 January 1947...
, which was responsible for supplying 90% of UK's energy needs. 1946 also saw the establishment of the National Health Service
National Health Service
The National Health Service is the shared name of three of the four publicly funded healthcare systems in the United Kingdom. They provide a comprehensive range of health services, the vast majority of which are free at the point of use to residents of the United Kingdom...
which came into force in July 1948 and in 1948 came the nationalisation of railways, canals, road haulage and electricity. By 1951 the iron, steel and gas industries had also been brought into public ownership.
Gaitskell's fight
After losing the 1959 general electionUnited Kingdom general election, 1959
This United Kingdom general election was held on 8 October 1959. It marked a third successive victory for the ruling Conservative Party, led by Harold Macmillan...
Labour Party leader Hugh Gaitskell
Hugh Gaitskell
Hugh Todd Naylor Gaitskell CBE was a British Labour politician, who held Cabinet office in Clement Attlee's governments, and was the Leader of the Labour Party and Leader of the Opposition from 1955, until his death in 1963.-Early life:He was born in Kensington, London, the third and youngest...
came to believe that public opposition to nationalisation had led to the party's poor performance and announced that he proposed to amend Clause IV. The left fought back and managed to defeat any change: symbolically, it was then agreed to include Clause IV, part 4, on Labour Party membership cards.
The economic crisis of the 1970s, and the defeats suffered by the trade union movement, as well as the decline in influence of the British Communist party, led to a strengthening of the position of Labour party members who were opposed to Marxism
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...
.
Blair's fight
Tony BlairTony Blair
Anthony Charles Lynton Blair is a former British Labour Party politician who served as the Prime Minister of the United Kingdom from 2 May 1997 to 27 June 2007. He was the Member of Parliament for Sedgefield from 1983 to 2007 and Leader of the Labour Party from 1994 to 2007...
had in 1993, before becoming Leader of the Labour Party, written a pamphlet for the Fabian Society
Fabian Society
The Fabian Society is a British socialist movement, whose purpose is to advance the principles of democratic socialism via gradualist and reformist, rather than revolutionary, means. It is best known for its initial ground-breaking work beginning late in the 19th century and continuing up to World...
which criticised the wording of Clause IV for confusing ends with means. Blair put forward a case for defining socialism in terms of a set of values which were constant, while the policies needed to achieve them would have to change ("modernise") to account for changing society. After becoming Leader he announced at the conclusion of his 1994 conference speech that the Labour Party needed a new statement of aims and values and that he would draw one up and present it to the party. The new version was adopted at a Special Conference at Easter 1995 after a debate.
The present version reads:
The new clause did, for the first time, declare Labour to be a "socialist" party, though Blair generally prefers to describe himself as a social democrat
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...
.
Presentationally, the abandonment of the nationalising principles of the original Clause IV represented a break with Labour's past and, specifically, a break with its 1983 Manifesto ("The longest suicide note in history
The longest suicide note in history
"The longest suicide note in history" is an epithet originally used by United Kingdom Labour Party MP Gerald Kaufman to describe his party's left-wing 1983 election manifesto.-The document:...
") in which greater state ownership was proposed.
The Clause Four Moment
The changing of Clause IV has to be seen as the moment at which Old Labour became New Labour. Labour's "Clause Four Moment" has subsequently become a metaphor for any need or perceived need for a fundamental recasting of a political party's principles or attitudes. Accordingly, Conservative modernisers have argued that the Conservative Party must similarly undergo its "Clause Four Moment", rejecting past commitments and demonstrating, rhetorically at least, change to the electorate.This has given rise in some quarters to a degree of cynicism among those who see the "Clause Four Moment" as nothing more than a stage-managed row where the leader takes on and humiliates the membership of his own party.
Other uses
Clause Four was also the name of a campaigning group within the Labour Party's student wing (now Labour StudentsLabour Students
Labour Students is a student organisation affiliated to the British Labour Party.Membership comprises affiliated college and university clubs . Membership of Labour Students is through membership of a university or college Labour Club. Affiliation is open to any Labour Club generally supportive of...
), which succeeded in ending its control by the Militant tendency
Militant Tendency
The Militant tendency was an entrist group within the British Labour Party based around the Militant newspaper that was first published in 1964...
in 1974. However the attempt of the Clause Four group to oppose Militant in the Labour Party Young Socialists
Labour Party Young Socialists
The Labour Party Young Socialists was the name of the youth section of the British Labour Party from 1965 until 1993. The LPYS was the most successful of the youth sections of the Labour Party in the post war period, at one point having nearly 600 branches and attendances at its national...
(LPYS) was a failure, and LPYS was eventually dissolved. Many of the members of this group such as Mike Gapes
Mike Gapes
Michael John "Mike" Gapes is a British Labour Co-operative politician who has been the Member of Parliament for Ilford South since 1992....
(MP for Ilford South) went on to support Tony Blair's amendment of Clause Four.