By taking the high ground on party funding, Miliband has walked into a Tory trap

With the aid of the Lib Dems, the Tories plan to deliver an even bigger financial hit to Labour than that which will result from Miliband’s trade union reforms.

After the Conservatives entered power in 2010, chastened by their failure to win a majority against one of the least popular prime ministers in modern history, they identified three ways in which they could tilt the electoral landscape permanently in their favour.
 
The first was reform of the parliamentary boundaries. By equalising constituency sizes at roughly 76,000 voters, the Tories aimed to reverse the electoral bias in favour of Labour and improve their standing by up to 20 seats. This gambit was foiled when Conservative backbenchers sabotaged House of Lords reform and Nick Clegg responded by vetoing boundary reform, as the measure would have hurt his party disproportionately.
 
The second was Scottish independence. Were Scotland to secede from the UK, Labour would be stripped of 41 seats while the Conservatives would lose just one (as the joke in Westminster runs, Scotland has more giant pandas than Tories). Few doubt David Cameron’s sincerity when he vows to defend the Union with “every fibre” in his body, but not all in his party share his commitment. A Conservative MP recently told me: “If we’re close behind Labour in 2014, plenty of Tories will be crossing their fingers for a ‘Yes’ vote [to independence].” However, while the result will almost certainly be closer than most assume, even a campaigner as adroit as Alex Salmond will struggle to reverse the doubledigit poll lead the unionist side has held since the start of 2012.
 
The third was party funding reform. It is here that the Tories are now displaying their political muscle. In a remarkable act of chutzpah shortly before the summer recess, the party announced that the bill to introduce a statutory register of lobbyists would also include new curbs on political campaigning by “third parties” – read: trade unions. Masterminded by George Osborne, the legislation is designed as a pre-election gift to Tory candidates who have long complained about the union-funded phone banks, leaflets and adverts enjoyed by their Labour counterparts.
 
The bill will reduce the total cap on third party expenditure in the year before a general election from £989,000 to £390,000 and the cap on constituency spending to £9,750. It will also broaden the definition of spending to include staff time and office costs, rather than merely the “marginal cost” of leaflets and other materials, and regulate all activity that may affect the result of an election (such as criticism of government policy) even if it is not intended to do so.
 
Behind the legalese, the implications are significant. The TUC has warned that it could be forced to cancel its 2014 annual congress and any national demonstrations in the 12 months before the next election to avoid breaching the spending limit. In a signal of the Tories’ intent, the bill is being pushed through parliament with unusual haste. It will receive its second reading on 3 September and will begin its committee stage the following week, coinciding with Ed Miliband’s speech at the TUC conference.
 
When Miliband addresses the union gathering in Bournemouth, it will be as a reformer determined to “mend” his party’s relations with the unions by ensuring that all members formally choose whether they wish to affiliate themselves to Labour.
 
In so doing, a close ally of Osborne’s told me, “He has walked into a trap.” While Miliband’s proposed reforms will require trade unionists to opt in to donating to Labour, they will not affect unions’ political funds, which support campaigning activity and pay for large, one-off donations to the party. In theory, this could allow unions to make up some of the estimated £7m Labour will lose in automatic affiliation fees by increasing their other contributions to the party.
 
Yet the Tories have spied an opportunity to challenge Miliband’s reformist credentials. With the support of the Lib Dems (“They want to make every party as poor as them,” one Labour MP quipped), they plan to amend the bill to require all trade unionists to opt in to paying the political levy as well as their donation to Labour. Having argued for democracy and transparency in one area, on what grounds will Miliband oppose the extension of these principles?
 
The Conservatives gleefully point to polling by Lord Ashcroft showing that only 30 per cent of Unite members would contribute to the union’s political fund under an opt-in system. An even more significant change, as floated by Clegg, would be to allow trade unionists to choose which parties they support. Again with reference to Ashcroft’s recent survey, the Tories note that 23 per cent of Unite members would vote for the Conservatives in an election tomorrow and that 7 per cent would vote for the Lib Dems. Armed with this evidence, the coalition parties are conspiring to deliver an even bigger hit to Labour funding than that which would result from Miliband’s reforms.
 
In response, although the Labour leader can point to the hypocrisy of a Tory party that believes in limiting donations from all but its millionaire supporters, he has no means of effecting change. As a Labour MP lamented to me, “We had our chance to introduce funding reform when we won three majorities after 1997. But Blair was too busy wooing the super rich.” In the absence of another funding scandal, there’s no prospect the Tories will agree to Miliband’s proposed donation cap of £5,000.
 
With his reforms to union funding, Miliband has sought to take the moral high ground. He has sacrificed millions in donations and one of his party’s main bargaining chips without securing any concessions in return. Now the Tories are intent on maximising the damage. As one Conservative MP said of the bill when I spoke to him, “Labour should remember that nice guys finish last.” If Miliband is to triumph in 2015 against a bareknuckle Conservative Party, he will need to disprove that adage.
Ed Miliband delivers his speech on reforming the Labour-trade union link at The St Bride Foundation in London earlier this week. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

This article first appeared in the 02 September 2013 issue of the New Statesman, Syria: The west humiliated

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com