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Clause IV

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Clause IV

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 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, 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.

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:

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.

This section was widely seen as the Labour Party's commitment to socialism, even though the word "socialism" is not explicitly mentioned. The Manchester Guardian heralded it as showing "the Birth of a Socialist Party", stating that:

The changes of machinery are not revolutionary, but they are significant. There is now for the first time embodied in the constitution of the party a declaration of political principles, and these principles are definitely Socialistic. ... In other words, the Labour party becomes a Socialist party (the decisive phrase is "the common ownership of the means of production") ... Platonic resolutions have been passed before now, both by the Labour party and by the Trade Unions Congress in favour of the Socialistic organisation of society, but they are now for the first time made an integral part of the party constitution.

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 definition in the Industrial Common Ownership Act 1976, could mean municipal ownership, worker cooperatives 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)– 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.

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