In 2013, Cameron and Miliband struggled to escape the shadows of Thatcher and Blair

Both men are failing to articulate a vision that says more about what kind of country Britain should become than about what it has been.

For both David Cameron and Ed Miliband, 2013 was a year in which hope of owning the future was sabotaged by an inability to make peace with the past. The Tories failed to find fault in the leader who once led them to three successive election victories. Labour struggled to see virtue in a former leader who managed the same feat.

The Tories mourned Margaret Thatcher, who died on 8 April, with an intensity in proportion to the change she wrought in Britain’s economy and society. State pomp was deployed to underline that historic victory, which infuriated dissenters who see the triumph of Thatcherism as a calamity for which the Tories ought rather to atone.

Such bitterness is incomprehensible to many Conservatives but its political implications should not be. It is still hard for the Tories to win general elections because parts of the country remember Thatcher’s doctrines as callous and vindictive. Even her most dedicated disciples cannot deny that, in many communities, an inoculation against voting Conservative is part of the legacy.

Cameron once seemed to understand the need to persuade Britain that his party had evolved beyond its cult of 1980s nostalgia. For Tories who believe that “modernisation” is still essential, 2013 was a demoralising year. Cameron’s will to pursue that agenda – never too sturdy – dissolved in fear of Ukip. The Tory year began with the commitment to a referendum on Britain’s EU membership and ended with promises to deprive foreigners of benefits. The fetishes of the party’s angriest tendency were thus indulged all the way from January to December.

In part, that reflects the growing influence of Lynton Crosby, Cameron’s bare-knuckle campaign strategist. He seems convinced that the hazard of reviving old “nasty party” associations is outweighed by the advantage of branding Labour as a friend to welfare-gobbling migrants.

The Tory right doesn’t like Cameron but it can be persuaded to back him because he is biddable. Had his position been stronger, he might have used the Thatcher commemorations as a moment to renew the promise of change, leavening the tributes with acknowledgement of mistakes. An opportunity was missed to reach out to voters who were alienated by the mood of ideological triumphalism. Instead he confirmed suspicions that his party’s ambition in government is to finish a job that the Iron Lady started.

Senior Tories are convinced they can beat Labour in 2015 by rerunning the campaign that last secured the party a majority – the destruction of Neil Kinnock in 1992. In Ed Miliband they see a reincarnation of the high-taxing, anti-enterprise Old Labour caricature from whom voters will recoil on polling day. A curious element of that plan is how little it recognises that the 1992 victory was secured by a moderate Tory leader who tacked towards the party’s inclusive “One Nation” tradition after Margaret That­cher’s defenestration.

The irony was underlined in October when John Major himself counselled the party against reinforcing old flint-hearted stereotypes. He urged compassion, as well as greater attention to poverty and social justice: “If we navel-gaze and only pander to our comfort zone, we will never win general elections.”

The warning echoed advice for Labour that Tony Blair had published in the New Statesman in April. He, too, cautioned against “comfort zone” politics, urging his party not to “settle back into its old territory of defending the status quo”.

Blair warned that the financial crisis had not shifted Britain’s political centre of gravity leftwards – a rebuke to Miliband, whose strategy posits a new public appetite for left-wing populism. Compounding opposition discomfort, Len McCluskey, the leader of the Unite trade union, popped up the following week (also in the NS) to prod Miliband in the opposite direction. In an interview with George Eaton he told the Labour leader not to be “seduced” by Blairites, naming shadow cabinet ministers – Jim Murphy, Liam Byrne, Douglas Alexander – as figures whose malign influence would bring election defeat.

The leader’s office was rattled by the twin interventions but it needn’t have been. Just as Cameron failed to move out of Thatcher’s shadow, Miliband missed an opportunity to define himself in positive terms against the past. With sufficient confidence (and support in the parliamentary party) he might have leapt free from New Labour ultras and hard-left reaction in a single bound. Instead, for much of 2013, it looked as if old factions were wrestling for control of the party’s identity, with its leader cast as a spectator.

Miliband’s uneasy accommodation with his party’s recent past dates back to the narrowness of his victory in the 2010 leadership contest. He understood that unity was paramount after defeat and also that many on the left saw Blairism as a surrender to free-market fetishism and craved its repudiation. The newly elected Labour leader also came to the job without a strong support base in the party. To compensate for that vulnera­bility, he tolerated the vilification by McCluskey and others of “Zombie Blairites” – a fifth column holding the party back from socialist virtue.

This was a useful tactical deflection of the disappointment and embarrassment of trade union bosses who felt the candidate they had endorsed was not performing as advertised. But for Miliband it also meant turning a blind eye to Unite’s strategy for controlling the party’s direction by gaming the process for selecting parliamentary candidates. That bargain unravelled in July when a vicious selection battle in Falkirk was amplified by Tory attacks into a front-page scandal.

The details of what happened in Falkirk are still fiercely disputed. What is beyond doubt is that the episode exposed a brittleness to the unity that Miliband had purportedly achieved. Ideological disputes were tangled up in vendettas dating back to the Blair-Brown feuds. Miliband had wanted to project himself as the standard-bearer for a new age of politics, yet here he was, presiding over a grim display of Mafia-style score-settling.

To distance himself from the smell of corruption, Miliband donned the robes of a reforming crusader and charged into confrontation with his party’s largest financial donor. Blair and his disciples cheered. Many Labour MPs watched in alarm, fearing that a moment of reformist exaltation would cost the party its solvency. By the end of the year, it looked as if Miliband was ready to settle for token reforms in exchange for preserving access to union funds. His challenge is now to negotiate something that looks bold enough to avoid the charge of total capitulation.

The battle over union reform exposed the Labour leader as friendless in his party. There was no cadre of Milibandites for deployment in the TV studios to make their leader’s case in a crisis. Addressing that deficiency was a principal aim when the opposition front-bench team was shuffled in October. The changes were widely reported as a “purge” of Blairites, which was not entirely wrong. Two of the figures that McCluskey had explicitly targeted – Murphy and Byrne – were demoted. But the third, Douglas Alexander, was put in charge of Labour’s election campaign.

More significant was the promotion of MPs who were elected for the first time in 2010 – Tristram Hunt, Rachel Reeves, Gloria De Piero, Emma Reynolds – “clean skins” who are neither scarred nor contaminated by New Labour-era civil war. Miliband’s hope is that this generation will help convince voters his party has a new, forward-looking agenda shaped by its current leader, when the Conservatives are determined to present him as a throwback to an unelectable past. Labour’s class of 2010 is marked by a capacity, lacking in many of their older colleagues, to view the strengths and weaknesses of Blairism without personal rancour. As one young shadow cabinet minister puts it: “Who gives a toss about all that baggage? We just want to win.”

On the Tory side, too, much hope is pinned on recent recruits. The lower and middle ranks of government are now stuffed with young MPs – Liz Truss, Matthew Hancock, Esther McVey, Sajid Javid. Like their Labour counterparts, they have a view of their party’s future that is not jaundiced by rigid nostalgia and historic resentments. Most do not fit neatly into categories of “moderniser” or “traditionalist”. They often combine social liberalism on issues such as gay rights with ultra-Thatcherite economics.

Labour and Tory 2010-ers owe their careers to Miliband and Cameron and are hungry for high office. Those factors combine to make them disciplined. None intends to be in opposition after 2015 and they know that disunity is a fast track to electoral ruin. By contrast, defeatism is rife among older MPs on both sides, making it hard to conceal dissatisfaction with the way in which they’re led.

That doesn’t mean that the younger MPs are inspired by their leaders. Their loyalty is keen but pragmatic. They cannot ignore the obvious weaknesses in Cameron and Miliband – the difficulty each man has in articulating a vision that says more about what kind of country Britain should become than about what it has been.

That failure contributes to the enduring atmosphere of stalemate at Westminster. The longer the malaise lingers, the likelier it gets that the up-and-coming generation’s appetite for power will turn to impatience for control. In 2013, Cameron and Miliband were haunted by victories of bygone eras. Both badly need a breakthrough. If the present leaders still struggle to break free from the past in 2014, a majority in parliament will look beyond reach and the search will begin in earnest for the best candidates to lead their parties in the future.

David Cameron with Margaret Thatcher at 10 Downing Street in June 2010. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 19 December 2013 issue of the New Statesman, Christmas Triple Issue

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Chuka Umunna calls for "solidarity" among Labour MPs, whoever is voted leader

The full text of shadow business secretary Chuka Umunna's speech to Policy Network on election-winning ideas for Labour's future, and the weaknesses of the New Labour project.

There has never been an easy time to be a social democrat (or “democratic socialist” as we sometimes call ourselves in Britain). Whereas the right can demonise the poor and extol the virtues of the market, and the hard left can demonise the market and extol the role of the state, our position of constraining the domination of markets and reforming the state is, by definition, more complex.

It is nonetheless the case that social democracy has a historic responsibility, in every generation, to renew democracy and preserve a civic culture. This is achieved not through soundbites and slogans, but through the hard-headed development of a progressive politics that reconciles liberty and democracy, new comers and locals to our communities, business and workers, in a common life that preserves security, prosperity and peace.  This historic mission is all the more urgent now and my determination that we succeed has grown not weakened since our election defeat last May.

But, in order to be heard, it is necessary to make balanced and reasonable argument that both animates and inspires our movement, and which is popular and plausible with the people.  The first is pre-requisite to the second; and there is no choice to be made between your party’s fundamental principles and electability. They are mutually dependent - you cannot do one without the other.

We are in the midst of choosing a new leader and it is clear to anyone who has watched the UK Labour Party leadership election this summer that amongst a significant number there is a profound rage against Third Way politics – as pursued by the likes of Bill Clinton, Tony Blair, Gerhard Schröder and others - as a rejection of our fundamental values.

In the UK there is a view that New Labour accepted an uncritical accommodation with global capital that widened inequality, weakened organised labour and we were too close to the US Republicans and too far from the European left.

I do not believe this is fair, not least because we rescued many of our public services from the scrap heap when we came to office in 1997 and there were very significant achievements  we should celebrate.  New Labour renewed our National Health Service in a fundamental way; we built new schools and improved existing ones; we set up new children’s centres all over the country; we brought in a National Minimum Wage; we worked with others to bring peace to Northern Ireland; we introduced civil partnerships.  Just some of our achievements.

However, though we may take issue with the critique, I do not think we can simply dismiss out of hand those who hold critical views of New Labour. Like any government, the New Labour administration made mistakes - it could and should have achieved more, and done more to challenge the Right’s assumptions about the world. In the end, it is not unreasonable to be ambitious for what your party in government can achieve in building greater equality, liberty, democracy and sustainability. It is far better we acknowledge, not reject, this ambition for a better world, as we seek to forge a new politics of the common good fit for the future.

Realising our values in office has been disrupted by globalisation and the surge of technological forces that are displacing and reshaping industry after industry.

Some argue that globalisation as an ideological construct of the right. But we must recognise that we live in an increasingly integrated world in which markets have led to an unprecedented participation of excluded people in prosperity, a rise in living standards for hundreds of millions  of people and a literacy unprecedented in human history – this is particularly so in emerging economies like my father’s native Nigeria. And the internet has led to a level of accountability that has disturbed elites.

Yet, this has been combined with a concentration of ownership that needs to be challenged, of a subordination of politics that requires creative rather than reactive thinking, and these global forces have exacerbated inequalities as well as helped reduce poverty.

So it is important that we understand the sheer scale and impact of new technologies. At the moment we are engaged in a debate about Uber and its threat to one of the last vestiges of vocational labour markets left in London, those of the black taxi cabs and their attainment of 'The Knowledge'. But the reality is that within the next decade there will be the emergence of driverless cars so we have to intensify our exploration of how to support people in a knowledge economy and the realities of lifelong learning, as well as lifelong teaching. As people live longer we will have to think about how to engage them constructively in work and teaching in new ways.

Once again, I'm addressing all of this, Social Democracy requires a balanced view that domesticates the destructive energy of capital while recognising its creative energy, that recognises the need for new skills rather than simply the protection of old ones. A Social Democracy that recognises that internationalism requires co-operation between states and not a zero sum game that protectionism would encourage.

Above all, Social Democratic politics must recognise the importance of place, of the resources to be found in the local through which the pressures of globalisation can be mediated and shaped. Our job is to shape the future and neither to accept it as a passive fate nor to indulge the fantasy that we can dominate it but to work with the grain of change in order to renew our tradition, recognising the creativity of the workforce, the benefits of democracy and the importance of building a common life.  Sources of value are to be found in local traditions and institutions.

This also requires a recognition that though demonstration and protest are important,; but relationships and conversations are a far more effective way of building a movement for political change.

One of the huge weaknesses of New Labour was in its reliance on mobilisation from the centre rather than organising. It therefore allowed itself to be characterised as an elite project with wide popular support but it did not build a base for its support within the party across the country, and it did not develop leaders from the communities it represented. It was strong on policy but weak on strengthening democratic politics, particularly Labour politics.

Over half a million people are now members, supporters or affiliated supporters of our party, with hundreds of thousands joining in the last few weeks. Some have joined in order to thwart the pursuit of Labour values but many more have joined to further the pursuit of those values, including lots of young people. At a time when so many are walking away from centre left parties across the Western world and many young people do not vote let alone join a party, this is surely something to celebrate.

So it is vital that we now embrace our new joiners and harness the energy they can bring to renewing Labour’s connection with the people. First, we must help as many them as possible to become doorstep activists for our politics. Second, I have long argued UK Labour should campaign and organise not only to win elections but to affect tangible change through local community campaigns. We brought Arnie Graf, the Chicago community organiser who mentored President Obama in his early years, over from the U.S. to help teach us how to community organise more effectively. We should bring Arnie back over to finish the job and help empower our new joiners to be the change they want to see in every community – we need to build on the links they have with local groups and organisations.

I mentioned at the beginning that in every generation Social Democracy is besieged from left and right but the achievements of each generation are defined by the strength of a complex political tradition that strengthens solidarity through protecting democracy and liberty, a role for the state and the market and seeks to shape the future through an inclusive politics. Solidarity is key which is why we must accept the result of our contest when it comes and support our new leader in developing an agenda that can return Labour to office.

Yes, these are troubled times for social democrats. All over Europe there is a sense among our traditional voters that we are remote and do not share their concerns or represent their interests or values.  There is surge of support for populist right wing parties from Denmark to France, of more left wing parties in Greece and Spain and in Britain too. There is renewal of imperial politics in Russia, the murderous and abhorrent regime of ISIL in the Middle East, volatility in the Chinese economy and in Europe a flow of immigration that causes fear and anxiety.

But, the task of Social Democracy in our time is to fashion a politics of hope that can bring together divided populations around justice, peace and prosperity so that we can govern ourselves democratically. We have seen worse than this and weathered the storm. I am looking forward, with great optimism to be being part of a generation that renews our relevance and popularity in the years to come.

Chuka Umunna is the shadow business secretary and the Labour MP for Streatham.