Exclusive: the end of Blue Labour

"Maurice Glasman's actions have made supporting the project untenable."

Blue Labour, the informal Labour policy group established by Ed Miliband advisor Maurice Glasman, is to be effectively disbanded.

Labour MP Jon Cruddas and Middlesex University academic Jonathan Rutherford have both informed Lord Glasman they no longer wish to be associated with the project following an interview given by the controversial peer in which he expressed a belief that immigration to the UK should be completely halted.

A third influential supporter, Dr Marc Stears, is said by friends to be "deeply distressed" by Glasman's comments, and is also considering his future engagement with Blue Labour.

Asked by the Daily Telegraph's Mary Riddell whether he would support a total ban on immigration, even if just for a temporary period, Lord Glasman replied, "Yes. I would add that we should be more generous and friendly in receiving those [few] who are needed. To be more generous, we have to draw the line."

In response to a further question on whether he supported Welfare Secretary Iain Duncan-Smith's call for British jobs for British workers, he responded, ""Completely. The people who live here are the highest priority. We've got to listen and be with them. They're in the right place -- it's us who are not."

The Telegraph profile is the latest in a series of increasingly eccentric interviews and public appearances given by the Labour Peer, in which he has attacked David Miliband, Tony Blair, Gordon Brown and Neil Kinnock, and claimed his agenda is influenced by Aristotle, Miles Davis, Aldo Moro, Lionel Messi and the Pope.

Last month Labour Justice spokeswoman Helen Goodman circulated a critique of Blue Labour to all members of the Parliamentary Labour Party in which she claimed, "[Glasman] characterises as female all the aspects of New Labour he dislikes, whereas all the characteristics he applauds he draws as male. It looks more like something suitable for the psychotherapists' couch than a political tract."

"If Glasman thinks we will all greet this with an ironic post-feminist smile, he is wrong. How can we in a country where 1,000 women are raped each week? He seems to be harking back to a Janet and John Fifties era".

Lord Glasman had been warned by both Cruddas and Rutherford that his media appearances were alienating potential supporters, and had asked him to lower his profile. Both men told friends they believed they had been give guarantees that he would do so, with Rutherford reportedly describing his latest intervention as "a breach of faith".

One source close to Blue Labour said, "Both Cruddas and Rutherford repeatedly told Maurice to tone it down, but he ignored them. Their view is the Blue Labour brand is now too contaminated to continue with the project in its present form. They still hope it will be possible to salvage some of the ideas and themes, but Maurice's actions have made supporting Blue Labour in its present incarnation untenable."

Lord Glasman has formed part of what has been described as Ed Miliband's "long-term strategy group" which meets regularly with the Labour leader on Sunday afternoons. Other members of the group reportedly include Guardian journalist John Harris, Jonathan Rutherford, Chuka Umunna, IPPR director Nick Pearce and Compass chair Neal Lawson.

However, Glasman's most recent comments have alarmed Miliband and his team. "Ed values a lot of things Maurice has raised, such as his focus on strong communities," said a source, "but there are a lot of elements of Maurice's agenda he doesn't agree with, and it's a myth that he has become Ed's main policy person."

UPDATE, 12.26 20 July: Maurice Glasman has now sent me a response via email. Here it is in full:

I overstated the position [on immigration]. I was not talking about what should happen.

I want most importantly to reiterate my full and total support for immigrant communities in Britain. I have worked long and hard with people of all backgrounds, trying to build a common life, and have spent many years campaigning for a living wage for all workers in London, including for those from the most vulnerable migrant communities.

We all make mistakes. And this is mine. I just hope that it does not detract from the energy and real goodness of the work. I will do all I can too to strengthen frayed relationships.

 

Photo: Getty
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As long as the Tories fail to solve the housing crisis, they will struggle to win

The fall in the number of homeowners leaves the Conservatives unable to sell capitalism to those with no capital. 

For the Conservatives, rising home ownership was once a reliable route to government. Former Labour voters still speak of their gratitude to Margaret Thatcher for the Right to Buy scheme. But as home ownership has plummeted, the Tories have struggled to sell capitalism to a generation without capital. 

In Britain, ownership has fallen to 63.5 per cent, the lowest rate since 1987 and the fourth-worst in the EU. The number of private renters now exceeds 11 million (a larger number than in the social sector). The same policies that initially promoted ownership acted to reverse it. A third of Right to Buy properties fell into the hands of private landlords. High rents left tenants unable to save for a deposit.

Rather than expanding supply, the Tories have focused on subsidising demand (since 2010, housebuilding has fallen to its lowest level since 1923). At a cabinet meeting in 2013, shortly after the launch of the government’s Help to Buy scheme, George Osborne declared: “Hopefully we will get a little housing boom and everyone will be happy as property values go up”. The then-chancellor’s remark epitomised his focus on homeowners. Conservative policy was consciously designed to enrich the propertied.

A new report from the Resolution Foundation, Home Affront: housing across the generations, shows the consequences of such short-termism. Based on recent trends, less than half of millennials will buy a home before the age of 45 compared to over 70 per cent of baby boomers. Four out of every ten 30-year-olds now live in private rented accommodation (often of substandard quality) in contrast to one in ten 50 years ago. And while the average family spent just 6 per cent of their income on housing costs in the early 1960s, this has trebled to 18 per cent. 

When Theresa May launched her Conservative leadership campaign, she vowed to break with David Cameron’s approach. "Unless we deal with the housing deficit, we will see house prices keep on rising," she warned. "The divide between those who inherit wealth and those who don’t will become more pronounced. And more and more of the country’s money will go into expensive housing instead of more productive investments that generate more economic growth."

The government has since banned letting agent fees and announced an additional £1.4bn for affordable housing – a sector entirely neglected by Cameron and Osborne (see graph below). Social housing, they believed, merely created more Labour voters. "They genuinely saw housing as a petri dish for voters," Nick Clegg later recalled. "It was unbelievable." 

But though housebuilding has risen to its highest levels since 2008, with 164,960 new homes started in the year to June 2017 and 153,000 completed, this remains far short of the 250,000 required merely to meet existing demand (let alone make up the deficit). In 2016/17, the government funded just 944 homes for social rent (down from 36,000 in 2010). 

In a little-noticed speech yesterday, Sajid Javid promised a "top-to-bottom" review of social housing following the Grenfell fire. But unless this includes a substantial increase in public funding, the housing crisis will endure. 

For the Conservatives, this would pose a great enough challenge in normal times. But the political energy absorbed by Brexit, and the £15bn a year it is forecast to cost the UK, makes it still greater.

At the 2017 general election, homeowners voted for the Tories over Labour by 55 per cent to 30 per cent (mortgage holders by 43-40). By contrast, private renters backed Labour by 54 per cent to 31 per cent. As long as the latter multiply in number, while the former fall, the Tories will struggle to build a majority-winning coalition. 

George Eaton is political editor of the New Statesman.