Clause IV is part of the Labour Party Rule Book which sets out the aims and values of the British
Labour Party. The original clause, adopted in 1918, called for
common ownership
Common ownership refers to holding the assets of an organization, enterprise, or community indivisibly rather than in the names of the individual members or groups of members as common property. Forms of common ownership exist in every economi ...
of industry, and proved controversial in later years;
Hugh Gaitskell attempted to remove the clause following Labour's loss in the
1959 general election.
In 1995, under the leadership of
Tony Blair
Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party (UK), Leader of the Labour Party from 1994 to 2007. He was Leader ...
, a new Clause IV was adopted. This was seen as a significant moment in Blair's redefinition of the party as
New Labour, but has in the years since survived beyond the New Labour branding.
Text

The original version of Clause IV was drafted by
Sidney and
Beatrice Webb in November 1917,
and adopted by the party in 1918.
It read, in part 4:
This section was widely seen as the Labour Party's commitment to
socialism
Socialism is an economic ideology, economic and political philosophy encompassing diverse Economic system, economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes ...
, even though the word "socialism" is not explicitly mentioned.
[ '' The Manchester Guardian'' heralded it as showing "the Birth of a Socialist Party", stating that:
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 refers to holding the assets of an organization, enterprise, or community indivisibly rather than in the names of the individual members or groups of members as common property. Forms of common ownership exist in every economi ...
, though later given a technical definition in the Industrial Common Ownership Act 1976, could mean municipal ownership, worker cooperative
A worker cooperative is a cooperative owned and Workers' self-management, self-managed by its workers. This control may mean a Company, firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one ...
s or consumer cooperatives.
In December 1944, the Labour Party adopted a policy of "public ownership" and won a clear endorsement for its policies – the destruction of the "evil giants" of want, ignorance, squalour, disease and idleness (identified by William Beveridge in the Beveridge Report
The Beveridge Report, officially entitled ''Social Insurance and Allied Services'' ( Cmd. 6404), is a government report, published in November 1942, influential in the founding of the welfare state in the United Kingdom. It was drafted by the Lib ...
)– in the post-war election victory of 1945 which brought Clement Attlee
Clement Richard Attlee, 1st Earl Attlee (3 January 18838 October 1967) was a British statesman who was Prime Minister of the United Kingdom from 1945 to 1951 and Leader of the Labour Party (UK), Leader of the Labour Party from 1935 to 1955. At ...
to power. However, the party had no clear plan as to how public ownership would shape their reforms, and much debate ensued.
The nationalization was led by Herbert Morrison, who had had the experience of uniting London's buses and underground train system into a centralized system in the 1930s. He started with the 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 to act as the Kingdom of England, English Government's banker and debt manager, and still one ...
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 the UK's energy needs. 1946 also saw the establishment of the National Health Service
The National Health Service (NHS) is the term for the publicly funded health care, publicly funded healthcare systems of the United Kingdom: the National Health Service (England), NHS Scotland, NHS Wales, and Health and Social Care (Northern ...
, which came into force in July 1948; railways, canals, road haulage and electricity were all also nationalised in 1948. By 1951, the iron, steel and gas industries had also been brought into public ownership.
Hugh 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 proposed to amend Clause IV. The left wing of the party 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
A trade union (British English) or labor union (American English), often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages ...
movement, as well as the decline in influence of the Communist Party of Great Britain, led to a strengthening of the position of Labour Party members who were opposed to Marxism
Marxism is a political philosophy and method of socioeconomic analysis. It uses a dialectical and materialist interpretation of historical development, better known as historical materialism, to analyse class relations, social conflict, ...
.
Tony Blair's alteration
Tony Blair
Sir Anthony Charles Lynton Blair (born 6 May 1953) is a British politician who served as Prime Minister of the United Kingdom from 1997 to 2007 and Leader of the Labour Party (UK), Leader of the Labour Party from 1994 to 2007. He was Leader ...
had in 1993, before becoming Leader of the Labour Party, written a pamphlet for the Fabian Society
The Fabian Society () is a History of the socialist movement in the United Kingdom, British socialist organisation whose purpose is to advance the principles of social democracy and democratic socialism via gradualist and reformist effort in ...
which criticised the wording of Clause IV for not clearly stating the means and ends of the party. Blair put forward a case for re-defining socialism in terms of a set of values which were constant, while the policies needed to achieve them would have to account for a changing society. At the conclusion of the 1994 conference, after becoming Leader, Blair proposed that the Labour Party needed a new statement of aims and values and stated that he would draw one up and present it to the party. This astonished many people, as the last time such a move had been taken in the late 1950s, it had been a failure.[ The new version was adopted at a Special Conference at Easter 1995 following a debate, and reads, in part:
This version of Clause IV on the back of individual Labour Party membership cards today.
Presentationally, the abandonment of the socialist principles of the original Clause IV represented a break with Labour's past and, specifically, a break with its 1983 Manifesto (dubbed " the longest suicide note in history", by Gerald Kaufman, one of the party's MPs), in which greater state ownership was proposed.
]
Jeremy Corbyn's leadership
The , Jeremy Corbyn
Jeremy Bernard Corbyn (; born 26 May 1949) is a British politician who has been Member of Parliament (United Kingdom), Member of Parliament (MP) for Islington North (UK Parliament constituency), Islington North since 1983. Now an Independent ...
, was a consistent supporter of renationalising public utilities, such as British Rail and energy companies, to bring them back into public ownership.
Corbyn ignited controversy within his party in an interview with '' The Independent on Sunday'':
Although this has been seen by some as an endorsement for the reinstatement of the original Clause IV, Corbyn denied this and said that more discussion within the party was needed.
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 group in 1975. However, the attempt of the Clause Four group to oppose Militant in the Labour Party Young Socialists
The Labour Party Young Socialists (LPYS) was the youth section of the Labour Party in Britain from 1965 until 1991. In the 1980s, it had around 600 branches, 2,000 delegates at its national conferences and published a monthly newspaper, ''Left' ...
(LPYS) was a failure, and LPYS was eventually dissolved.
Clause Four moment
The changing of Clause IV was seen by political commentators as the defining moment at which Old Labour became New Labour. The phrase "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.
See also
* Labour Party Constitution
References
Further reading
* Bale, Tim. "‘The death of the past’: Symbolic politics and the changing of clause IV." ''British Elections and Parties Yearbook'' 6.1 (1996): 158-177.
* Coates, Ken. ''Common Ownership: Clause IV and the Labour Party'' (Spokesman Press, 1995
online
* Jobson, Richard. "‘Waving the Banners of a Bygone Age’, Nostalgia and Labour's Clause IV Controversy, 1959–60." ''Contemporary British History'' 27.2 (2013): 123-144. https://doi.org/10.1080/13619462.2012.753179
* Jones, Tudor. "‘Taking genesis out of the Bible’: Hugh Gaitskell, clause IV and labour's socialist myth." ''Contemporary British History'' 11.2 (1997): 1-23
online
* Jones, Tudor. "Labour’s Constitution and Public Ownership: From ‘Old’ Clause Four to 'New’ Clause Four." in ''The Labour Party: A Centenary History'' (Palgrave Macmillan UK, 2000). 292-321.
* Kenny, Michael, and Martin J. Smith. "Discourses of modernization: Gaitskell, Blair and the reform of Clause IV." ''British Elections & Parties Review'' 7.1 (1997): 110-126. https://doi.org/10.1080/13689889608412978
* Riddell, Peter. "The end of clause IV, 1994–95." ''Contemporary British History'' 11.2 (1997): 24-49. https://doi.org/10.1080/13619469708581435
* Robinson, Emily. "Recapturing Labour’s Traditions? History, nostalgia and the re-writing of Clause IV." ''British Journal of Politics and International Relations'' 9 (2007): 582-59
online
External links
{{DEFAULTSORT:Clause Iv
History of the Labour Party (UK)
Politics of the United Kingdom
Nationalisation in the United Kingdom