Margaret Hodge after her victory in Barking in 2010. Photograph: Getty Images.
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Margaret Hodge against the world

Caroline Crampton speaks to Margaret Hodge about the Google, the BNP and the "loony left".

Margaret Hodge is very sure of what she is trying to do. “I want to change the world,” she tells me over a mug of tea in the front room of her home in Islington. She is deadly serious.

As the chair of the House of Commons public accounts committee (PAC), Hodge is in a good position to realise her ambition. The PAC’s dry, procedural-sounding remit to examine “the accounts showing the appropriation of the sums granted to parliament to meet the public expenditure” gives her latitude to investigate every aspect of our government’s finances. When she speaks, everyone from Google executives to the BBC’s senior management pays attention.

Hodge is the committee’s first female chair, as well as the first to be elected, rather than appointed. Although she was a minister for 11 of the 13 years of Labour government under Tony Blair and Gordon Brown, she feels that what she does now has a greater impact. Issues such as tax avoidance by companies including Starbucks, Google and Amazon and, more recently, the pay-offs for BBC executives have resonated with the public.

She works hard – particularly since the loss of her husband, Henry, to cancer in 2009. “I’m on my own now, so that’s become a way of managing my life, focusing my life. I put a lot of work in.”

Hodge has recently enjoyed a surge in popularity, yet she cannot escape the legacy of her time as a minister – the first report the PAC published under her leadership looked at the failings of a welfare-to-work programme that she had helped to design.

Taking on Labour’s failures isn’t new to her. At the 2010 general election, she fought the “Battle for Barking” against the BNP (the party’s leader, Nick Griffin, stood against her). “I really think they [the BNP] had a chance of taking over the council and taking my seat . . . The underlying issue was Labour’s failure to connect with people on local concerns. We looked inwards; we didn’t look outwards.”

Hodge went on to double her majority in Barking; the BNP lost all 12 of its seats on the council. The answer to the kind of concerns that led to Griffin’s popularity, she says, is to focus on fairness. “If you’re coming in as an economic migrant, you’ve got to work your time, you’ve got to earn your rights, and I think people get that, whatever your race. For instance, access to social housing ought to be based on how long you’ve lived in the area, not just your need. When I first said that in 2008, it was very controversial but that’s the way you deal with racism.”

The role of PAC chair has freed her from party politics. Though still a Labour MP, she no longer attends Parliamentary Labour Party meetings and relishes the freedom to speak her mind. Once, during a committee hearing, she threw Google’s corporate motto – “Don’t be evil” – back in its executives’ faces, declaring, “I think that you do do evil.” This outspokenness isn’t new. “I say it as it is. That’s the joy of being my age [she is 69]. I’m not trying to climb any greasy pole any more. It always used to get me into trouble but now, in this new role, it’s a positive.”

Would she ever consider returning to the front bench? “I don’t think so. I’ve got lots of ambition . . . but I don’t think I could go back to that. Your life has to move forward.” Hodge speaks proudly of her socialism – formed, she says, by her background as an immigrant Jew, which had always made her feel like an outsider. Her family came to Britain in 1949 from Egypt, where increasing Arab-Jewish tensions after the creation of Israel made it difficult to stay. Laughing, she says of her father: “If he was alive today, I think he would be completely gobsmacked by me being such a member of the establishment.”

Before she entered parliament in 1994, Hodge worked for a decade as the leader of Islington Council. She and her Labour colleagues were nicknamed the “loony left”. Her handling of a child abuse case at a council care home (for which she has since apologised) is what her tenure there is principally remembered for, but she feels that a lot of the council’s other work has “stood the test of time”.

“We did a whole load of stuff around the equalities agenda that was thought to be off the wall at the time and which is now absolutely mainstream. We invented Sure Start [in Islington] . . . We worked on maternity rights, which were terrible at the time. All this stuff about one-stop shops for services – we created them.”

She has a long political career behind her but Margaret Hodge isn’t done yet. She will be standing again in 2015 and says: “We’ll just have to see what the electorate does.”

After all this time, has she worked out how to change the world? She smiles. “I haven’t got an answer but I’ve got a question,” she says.

Caroline Crampton is assistant editor of the New Statesman. She writes a weekly podcast column.

This article first appeared in the 23 September 2013 issue of the New Statesman, Can Miliband speak for England?

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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.