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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The government needs more on airports than just Chris Grayling's hunch

This disastrous plan to expand Heathrow will fail, vows Tom Brake. 

I ought to stop being surprised by Theresa May’s decision making. After all, in her short time as Prime Minister she has made a series of terrible decisions. First, we had Chief Buffoon, Boris Johnson appointed as Foreign Secretary to represent the United Kingdom around the world. Then May, announced full steam ahead with the most extreme version of Brexit, causing mass economic uncertainty before we’ve even begun negotiations with the EU. And now we have the announcement that expansion of Heathrow Airport, in the form of a third runway, will go ahead: a colossally expensive, environmentally disastrous, and ill-advised decision.

In the House of Commons on Tuesday, I asked Transport Secretary Chris Grayling why the government is “disregarding widespread hostility and bulldozing through a third runway, which will inflict crippling noise, significant climate change effects, health-damaging air pollution and catastrophic congestion on a million Londoners.” His response was nothing more than “because we don’t believe it’s going to do those things.”

I find this astonishing. It appears that the government is proceeding with a multi-billion pound project with Grayling’s beliefs as evidence. Why does the government believe that a country of our size should focus on one major airport in an already overcrowded South East? Germany has multiple major airports, Spain three, the French, Italians, and Japanese have at least two. And I find it astonishing that the government is paying such little heed to our legal and moral environmental obligations.

One of my first acts as an MP nineteen years ago was to set out the Liberal Democrat opposition to the expansion of Heathrow or any airport in southeast England. The United Kingdom has a huge imbalance between the London and the South East, and the rest of the country. This imbalance is a serious issue which our government must get to work remedying. Unfortunately, the expansion of Heathrow does just the opposite - it further concentrates government spending and private investment on this overcrowded corner of the country.

Transport for London estimates that to make the necessary upgrades to transport links around Heathrow will be £10-£20 billion pounds. Heathrow airport is reportedly willing to pay only £1billion of those costs. Without upgrades to the Tube and rail links, the impact on London’s already clogged roads will be substantial. Any diversion of investment from improving TfL’s wider network to lines serving Heathrow would be catastrophic for the capital. And it will not be welcomed by Londoners who already face a daily ordeal of crowded tubes and traffic-delayed buses. In the unlikely event that the government agrees to fund this shortfall, this would be salt in the wound for the South-West, the North, and other parts of the country already deprived of funding for improved rail and road links.

Increased congestion in the capital will not only raise the collective blood pressure of Londoners, but will have severe detrimental effects on our already dire levels of air pollution. During each of the last ten years, air pollution levels have been breached at multiple sites around Heathrow. While a large proportion of this air pollution is caused by surface transport serving Heathrow, a third more planes arriving and departing adds yet more particulates to the air. Even without expansion, it is imperative that we work out how to clean this toxic air. Barrelling ahead without doing so is irresponsible, doing nothing but harm our planet and shorten the lives of those living in west London.

We need an innovative, forward-looking strategy. We need to make transferring to a train to Cardiff after a flight from Dubai as straightforward and simple as transferring to another flight is now. We need to invest in better rail links so travelling by train to the centre of Glasgow or Edinburgh is quicker than flying. Expanding Heathrow means missing our climate change targets is a certainty; it makes life a misery for those who live around the airport and it diverts precious Government spending from other more worthy projects.

The Prime Minister would be wise to heed her own advice to the 2008 government and “recognise widespread hostility to Heathrow expansion.” The decision to build a third runway at Heathrow is the wrong one and if she refuses to U-turn she will soon discover the true extent of the opposition to these plans.

Tom Brake is the Liberal Democrat MP for Carshalton & Wallington.