Clause IV of the United Kingdom Labour Party constitution sets out the aims and values of the party, and has been the object of political fights over its direction.

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The original version of Clause IV, drafted by Sidney Webb in November 1917 and adopted by the party in 1918, read, in part 4: Categories: UK Labour Party politicians | British MPs | Peers | Secretaries of State for the Colonies (UK) | 1859 births | 1947 deaths | People stubs ...

"To secure for the workers by hand or by brain the full fruits of their industry and the most equitable distribution thereof that may be possible upon the basis of the common ownership of the means of production, distribution and exchange, and the best obtainable system of popular administration and control of each industry or service."

In 1918 nationalisation was seen by many voters as akin to modernisation – the nationalisation of the railways was a widely supported policy, for instance, in that it would have ended the plethora of uncoordinated and competing companies.

This text is usually assumed to mean 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 cooperatives or consumer cooperatives. Many would also include^{[weasel words]} the John Lewis Partnership as a company in common ownership. Common ownership is a principle according to which the assets of an enterprise or other organisation are held indivisibly rather than in the names of the individual members. ... Municipalization is the transfer to municipal ownership of corporations or other assets. ... A worker cooperative is a cooperative owned and democratically controlled by its employees. ... Co-op redirects here. ... For the former (1856-1991) unrelated UK department store, see Lewiss. ...

In December 1944 the Labour party adopted a policy of "public ownership"^[1] 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. Clement Richard Attlee, 1st Earl Attlee, KG, OM, CH, PC (3 January 1883 – 8 October 1967) was Prime Minister of the United Kingdom from 1945 to 1951. ...

The nationalisation was led by Herbert Morrison who had 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, whereupon stockholders received compensation and the governor and deputy governor were both re-appointed. Further industries swiftly followed, civil aviation in 1946, telecommunications in 1947 along with the creation of the National Coal Board which was responsible for supplying 90% of UK's energy needs, while 1948 saw the establishment of the National Health Service and the nationalisation of railways, canals, road haulage and electricity. By 1951 the iron, steel and gas industries had also been brought into public ownership. Herbert Morrison For others named Herbert Morrison, see Herbert Morrison (disambiguation). ... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ... The National Coal Board (NCB) was the nationalised British coal mining company. ... NHS redirects here. ...

Gaitskell's fight

After losing the 1959 general election, 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. This United Kingdom general election was held on October 8, 1959, and marked a third successive victory for the ruling Conservative party, led by Harold MacMillan. ... Hugh Todd Naylor Gaitskell (April 9, 1906 – January 18, 1963) was a British politician, leader of the Labour Party from 1955 until his death in 1963. ... Nationalization is the act of taking assets into state ownership. ...

Blair's fight

Tony Blair 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 an internal Labour Party debate. For other people of the same name, see Tony Blair (disambiguation) Anthony Charles Lynton Blair (born May 6, 1953)[1] is the Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service, Leader of the Labour Party, and Member of Parliament for the constituency... The Fabian Society is a British socialist intellectual movement, whose purpose is to advance the socialist cause by gradualist and reformist, rather than revolutionary means. ...

The present version reads:

"The Labour Party is a democratic socialist party. It believes that by the strength of our common endeavour we achieve more than we achieve alone, so as to create for each of us the means to realise our true potential and for all of us a community in which power, wealth and opportunity are in the hands of the many, not the few, where the rights we enjoy reflect the duties we owe, and where we live together, freely, in a spirit of solidarity, tolerance and respect."

The change sent an immediate signal to the electorate that Blair was serious about changing the factors about the Labour Party which he perceived were holding it back in gaining popular trust. Since Labour came to power in 1997, the government has introduced a number of mild income redistribution measures such as the working tax credit. However redistribution of wealth has not been a major cause for the government and Ministers rarely mention the subject in public. Although absolute poverty has decreased, especially for children, inequality of wealth has not diminished, it has in fact increased significantly.^[2] Working tax credit, or WTC, is a component of the current tax credits system in the United Kingdom - the related component being the Child tax credit, or CTC - which have both been in their current form since April 2003. ...

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. Socialism is a social and economic system (or the political philosophy advocating such a system) in which the economic means of production are owned and controlled collectively by the people. ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ...

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 in which greater state ownership was proposed.

Only from 1997, upon becoming Prime Minister did Tony Blair set out his preference of the market over public ownership, inflation over jobs.^{[citation needed]}

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 come, subsequently, to become parlance for any need or perceived need for a fundamental re-casting 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 commitment and demonstrating, rhetorically at least, change to the electorate.

This had 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 their own party[1].

Trivia

Sidney Webb, who first drafted Clause IV, lived on the site of Millbank Tower, which coincidentally was to be New Labour's campaign headquarters for their victorious 1997 general election campaign, after re-writing Clause IV. ^[3] Categories: UK Labour Party politicians | British MPs | Peers | Secretaries of State for the Colonies (UK) | 1859 births | 1947 deaths | People stubs ... Millbank Tower, from the north Millbank Tower from the south, taken from Vauxhall bridge. ... The UK general election, 1997 was held on 1 May 1997. ...

Labour Party leader Neil Kinnock named his cat 'Claws 4'. Neil Gordon Kinnock, Baron Kinnock, PC (born 28 March 1942) is a British politician. ...

Other uses

Clause Four was also the name of a campaigning group within the Labour Party's student wing (now Labour Students), 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 was a failure. Ironically 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. Labour Students is an independent student organisation affiliated to the British Labour Party. ... The Militant tendency was a group within the UK Labour Party founded in 1964. ... Michael John Gapes (born 4 September 1952, Wanstead) is a Labour and Co-operative politician in the United Kingdom. ... Ilford South is a parlimentary constiuency of the United Kingdom comprising the southern part of the town of Ilford in Greater London (previously in Essex, and still often informally considered to be so). ...

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