Leader: Miliband must not "shrink the offer"

The Labour leader should resist those urging him to take the incrementalist path and offer fundamental reform of the economy and the state.

After Ed Miliband delivered his speech at this year’s Labour party conference, pledging to freeze energy prices if elected, many predicted that the promise would unravel within days. Yet two months later, he retains the political advantage. Growth has returned, with the economy expanding at its fastest rate for six years, but Mr Miliband’s success in shifting the debate towards living standards, which have continued their decline, means the Conservatives have not benefited. The Tories remain torn between seeking to match his offer and desperately seeking to refocus attention on their preferred terrain of the deficit.

The Labour leader’s success was no accident. As Rafael Behr writes in his essay on “Milibandism” on page 32, his policies are underpinned by “a consistent analysis of what is wrong with Britain”. It was on the day after his election as Labour leader that Mr Miliband first used the phrase “the squeezed middle” and was widely mocked. It has proved to be of enduring relevance as the disconnect between the national income and voters’ incomes has become clearer. After stagnating in the years before the crash, real wages have fallen for 40 of the 41 months since the coalition government took office (the exception being April 2013, when high earners collected their deferred bonuses in order to benefit from the reduction in the top rate of income tax). The Labour leader was similarly derided for his interest in concepts such as “responsible capitalism” and “predistribution” but commentators have been forced to acknowledge their significance as they have been translated into the crunchy detail of policy.

With Labour’s poll lead and his personal ratings improving, Mr Miliband can speak with justified confidence of forming the next government. However, if his positioning has created opportunities for Labour, it has also created dangers. Mr Miliband has come under internal pressure to “shrink the offer” and put forward a modest manifesto that limits the room for attack by political opponents. A conflict has opened up inside the leadership between those who believe that the crisis of 2008 demonstrated the need for fundamental reform of the economy and state and those who believe there is little that cannot be resolved through the resumption of growth and the harnessing of its proceeds for public services. It is a battle of ideas between hard and soft reformers. And the choice facing the party is between the transformative politics of Blue Labour and the transactional politics of its Brownite antithesis.

Mr Miliband must side unambiguously with the former. The New Labour years demonstrated the limits of both an unbalanced economy over-reliant on the City and a bureaucratic state indifferent to public-service users. Because of the large fiscal deficit that a Labour government would inherit, reform of both is not just desirable but essential. As Jon Cruddas, the party’s policy review co-ordinator, noted in his speech on “one nation statecraft” in June, “Labour will inherit a state that in many areas has reached the limit of its capacity to cut without transformational change to the system.”

This means devolving power downwards from Whitehall and reorienting services such as the NHS around prevention rather than just cure. Andy Burnham’s proposal to integrate physical, mental and social care into a single budget and single service is perhaps the best example of the kind of reform required. By allowing more patients to be treated outside wards and freeing up to 40 per cent of beds, an integrated service could save the NHS around £3.4bn a year. But as a result of the structural reform required and the upfront costs involved, those in favour of a minimalist manifesto have sought to sideline the idea.

Here, as elsewhere, it is time for Mr Miliband to honour the bold rhetoric that won him the leadership in 2010 and this publication’s support. The Labour leader does not aspire merely to be an efficient manager of capitalism but a reformer in the mould of Attlee and Thatcher. He should resist those urging him to take the incrementalist path.

The Labour leader has come under internal pressure to "shrink the offer" and put forward a modest manifesto. Photograph: Getty Images.

This article first appeared in the 20 November 2013 issue of the New Statesman, iBroken

Photo: Getty Images
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Stella Creasy targeted for deselection

Organisers on the left believe the Walthamstow MP is the ideal target for political, personal and geographical reasons.

Stella Creasy, the high-profile MP for Walthamstow and defeated deputy Labour leadership candidate, is the first serious target of an attempt to deselect a sitting Labour MP, the New Statesman has learnt.

Creasy, who is on the right of the party, is believed to be particularly vulnerable to an attempt to replace her with an MP closer to the Labour party’s left. Her constituency, and the surrounding borough of Waltham Forest, as well as the neighbouring borough of Leyton and Wanstead, has a large number both of new members, inspired either to join or return to Labour by Jeremy Corbyn, plus a strong existing network of leftwing groupings and minor parties.

An anti-bombing demonstration outside of Creasy’s constituency offices in Walthamstow – the MP is one of around 80 members of Parliament who have yet to decide how to vote on today’s motion on airstrikes in Syria – is the latest in a series of clashes between supporters of Creasy and a series of organized leftwing campaigns.

Allies of Creasy were perturbed when Momentum, the grassroots body that represents the continuation of Corbyn’s leadership campaign, held a rally in her constituency the night of the Autumn Statement, without inviting the MP. They point out that Momentum is supposedly an outward-facing campaign supporting Jeremy Corbyn and the Labour party towards the 2020 general election and the forthcoming local and European elections. Labour holds 27 out of 27 council seats in Creasy’s constituency, while Creasy herself has a majority of 23,195 votes.

“If you look at the seat, there is nothing to win here,” said one Labour member, who believes that Momentum and other groups are planning to depose Creasy. Momentum has denied any plot to remove Creasy as the MP.

However, Creasy has come under pressure from within her local party in recent weeks over the coming vote on bombing Syria. Asim Mahmood, a Labour councilor in Creasy’s constituency, has called for any MP who votes for bombing to face a trigger ballot and reselection. Creasy hit back at Mahmood on Facebook, saying that while she remained uncertain of how to vote: “the one thing I will not do is be bullied by a sitting Walthamstow Labour councilor with the threat of deselection if I don’t do what he wants”.

Local members believe that Mahmood may be acting as the stalking horse for his sister, the current mayor of Waltham Forest, Saima Mahmud, who may be a candidate in the event of a trigger ballot against Creasy. Another possible candidate in a selection battle is Steven Saxby, a local vicar. Unite, the recognized trade union of the Anglican Communion, is a power player in internal Labour politics.

Although Creasy has kept her own counsel about the direction of the party under Corbyn, she is believed to be more vulnerable to deselection than some of the leader’s vocal critics, as her personal style has led to her being isolated in her constituency party. Creasy is believed to be no longer on speaking terms with Chris Robbins, the leader of the council, also from the right of the party.

Others fear that the moves are an attempt by Creasy’s local opponents to prepare the ground for a challenge to Creasy should the seat be redrawn following boundary changes. The mood in the local party is increasingly febrile.  The chair of the parliamentary Labour party, John Cryer, whose Leyton and Wanstead seat is next to Creasy’s constituency, is said to fear that a fundraiser featuring the shadow foreign secretary, Hilary Benn, will take an acrimonious turn. Cryer was one of just four shadow cabinet ministers to speak against airstrikes in Syria.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.