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

kerim44 at Wikimedia Commons
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Xenophobic graffiti at a London Polish centre is a dark sign of post-Brexit Britain

The centre's chairwoman says an incident of this kind has never happened before, and police are treating it as a hate crime. 

Early on Sunday morning, staff arriving at the Polish Social and Cultural (POSK) centre in west London's leafy Ravenscourt Park were met with a nasty shock: a xenophobic obscenity smeared across the front of the building in bright yellow paint. 

“It was a standard, unpleasant way of saying ‘go away’ – I'll leave that to your interpretation,” Joanna Mludzinska, chairwoman of the centre, says the next morning as news crews buzz around the centre’s foyer. The message was cleaned off as soon as the staff took photo evidence – “we didn’t want people to walk down and be confronted by it” – but the sting of an unprecedented attack on the centre hasn’t abated.

“Nothing like this has ever happened before,” Mludzinska tells me, shaking her head. “Never.”

The news comes as part of a wash of social media posts and police reports of xenophobic and racist attacks since Friday’s referendum result. It’s of course difficult to pin down the motivation for specific acts, but many of these reports feature Brits telling others to “leave” or “get out” – which strongly implies that they are linked to the public's decision on Friday to leave the European Union. 

Hammersmith and Fulham, the voting area where the centre is based, voted by a 40-point margin to remain in the UK, which meant the attack was particularly unexpected. “The police are treating this as a one-off, which we hope it is,” Mludzinska tells me. They are currently investigating the incident as a hate crime. 

“But we have anecdotal evidence of more personal things happening outside London. They’ve received messages calling them vermin, scum [in Huntingdon, Cambridgeshire]. It’s very frightening.” As one local Polish woman told the Mirror, there are fears that the referendum has “let an evil genie out of a bottle”. 

For those unsure whether they will even be able to stay in Britain post-referendum, the attacks are particularly distressing, as they imply that the decision to leave was, in part, motivated by hatred of non-British citizens. 

Ironically, it is looking more and more likely that we might preserve free movement within the EU even if we leave it; Brexit campaigners including Boris Johnson are now claiming immigration and anti-European feeling were not a central part of the campaign. For those perpetrating the attacks, though, it's obvious that they were: “Clearly, these kind of people think all the foreigners should go tomorrow, end of,” Mludzinska says.

She believes politicians must make clear quickly that Europeans and other groups are welcome in the UK: “We need reassurance to the EU communities that they’re not going to be thrown out and they are welcome. That’s certainly my message to the Polish community – don’t feel that all English people are against you, it’s not the case.” 

When I note that the attack must have been very depressing, Mludzinska corrects me, gesturing at the vases of flowers dotted around the foyer: “It’s depressing, but also heartening. We’ve received lots and lots of messages and flowers from English people who are not afraid to say I’m sorry, I apologise that people are saying things like that. It’s a very British, very wonderful thing.”

Beyond Hammersmith

Labour MP Jess Phillips has submitted a parliamentary question on how many racist and xenophobic attacks took place this weekend, compared to the weekends preceding the result. Until this is answered, though, we only have anecdotal evidence of the rise of hate crime over the past few days. From social media and police reports, it seems clear that the abuse has been directed at Europeans and other minorities alike. 

Twitter users are sending out reports of incidents like those listed below under the hashtag #PostBrexitRacism:

Facebook users have also collated reports in an album titled Worrying Signs:

Police are currently investigating mutiple hate crime reports. If you see or experience anything like this yourself, you should report it to police (including the British Transport Police, who have a direct text number to report abuse, 61016) or the charity Stop Hate UK.

HOPE not hate, an advocacy group that campaigns against racism in elections, has released a statement on the upsurge of hatred” post-referendum, calling on the government to give reassurance to these communities and on police to bring the full force of the law” to bear against perpetrators.

The group notes that the referendum, cannot be a green light for racism and xenophobic attacks. Such an outpouring of hate is both despicable and wrong.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.