The New Statesman endorses Ed Miliband

Why we’re backing the younger brother for the leadership of the Labour Party.

I am pleased to inform you all that the New Statesman has decided to back Ed Miliband for the Labour leadership.

But let's be clear: we believe that both Miliband brothers would make decent, able and progressive prime ministers, and could lead Labour to victory over the Con-Lib coalition at the next election. And there was much debate, discussion and agonising here in the New Statesman offices, with different members of the team backing different candidates.

In the end, however, we agreed that Ed Miliband best represents the historic ideals, values and ambitions of this magazine.

From this week's leader (which hits the newsstands tomorrow):

So far, of all the candidates, it is Ed Miliband who has been most prepared to challenge New Labour orthodoxies, to use a different kind of language. He advocates a Labour agenda that is confident, forceful and empowering, committed to greater freedom, social justice and, above all else, reducing inequality.

The primary task of the next Labour leader has to be to develop a political economy that addresses the fundamental inequalities and inequities that have blighted British society for so long -- and which will only worsen as the Con-Lib coalition's doctrinaire spending cuts begin to bite. To talk of tackling social mobility, as coalition ministers do, without addressing the ever-widening gap between rich and poor, is disingenuous. The fight for a more equal society has to become a priority again and Ed Miliband understands this (see his column on page 21). Witness his living wage campaign, his proposal for a high pay commission and his insistence on keeping the new top rate of tax for high earners.

Ed Miliband also understands that the Labour Party must once more become part of a much larger and wider movement for change -- a true movement, transcending class divisions and geographical boundaries. Rightly or wrongly, he is less contaminated than his brother and Ed Balls by the fallout from the radioactive Brown-Blair wars. With the exception of Diane Abbott, he has been most robust in denouncing the Iraq war as a great wrong, a moral failure. He has placed civil liberties and the restoration of freedoms lost during Labour's 13 years in office at the centre of his campaign. On constitutional reform, he supports the Alternative Vote, if not full proportional representation, and is an instinctive pluralist.

But our editorial position should not be seen as an attack on the other candidates and, in particular, David Miliband and Ed Balls, as the leader goes on to argue:

Our endorsement of Ed Miliband is not a rejection of his brother, nor indeed of Ed Balls. Mr Balls in particular has been impressive during this contest. As an astute and experienced economist, he is the most numerate of all the candidates. As the coalition has already discovered, he is a formidable opponent, unrelenting and forensic . . . The contest, however, is a two-horse race. David Miliband deserves his title of "front-runner". Despite his mistaken support for the catastrophic invasion of Iraq, the elder Miliband has the intellect, eloquence and experience to be Labour leader and prime minister.

The leader concludes:

The elder Miliband remains the bookies' favourite, the best-funded candidate, with the support of the New Labour establishment and much of the right-of-centre commentariat. For all of this, the race is open. Voting begins on 1 September and we urge all undecided MPs and MEPs, and Labour Party and trade union members, to vote for Ed Miliband. He is the "change candidate" who has the greatest potential to connect with a wider electorate and especially with those politically engaged young people, internationalist in outlook, who have lost faith in conventional Westminster politics but yearn for a more democratic, fairer and freer Britain. Labour needs a bold, charismatic, compassionate and visionary leader to renew the party and begin the journey back to government. Ed Miliband has shown us he could be that leader.

So will Ed M win? That's the $64,000 question. I have a hunch that Ed will win it by the narrowest of margins, thanks to transfers of votes from Balls, Burnham and Abbott supporters.

But it's just a hunch. That's all it is. Like the general election result, which all the pollsters and most of the commentariat got wrong, this Labour leadership race is too close to call. The party hasn't had a leadership election in 16 years -- and, back in 1994, Tony Blair had no credible rivals. And the 2007 deputy leadership election is a reminder of how second preferences can make all the difference.

Let the voting begin!

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.