The fate of Lords reform now rests in Labour's hands

With the Tories irretrievably divided, the bill's future depends on Labour.

As was rumoured this morning, David Cameron has now dropped the programme motion on House of Lords reform, which would have limited debate on the bill to 10 days. With upwards of 70 Tories prepared to join Labour and vote against the motion, there was no hope of it making it past the Commons. In withdrawing the motion, Cameron has merely brought forward the government's defeat.

The second reading vote will still go ahead and, with the support of Labour, the bill will proceed with a large majority. But unless the government introduces a guillotine motion at a later date, the risk remains that MPs will talk it into the ground.

The upshot is that the fate of Lords reform now rests in Labour's hands. If Ed Miliband's party agrees to support closure motions to limit debate on the bill, the legislation could yet make it through the Commons. Responding to Cameron's move, Sadiq Khan has pledged that Labour will do all it can "to ensure the bill progresses". The party's opposition to the programme motion was not, he said, a "wrecking tactic" but an attempt to improve an "inadequate bill".

As Khan's words imply, Cameron and Nick Clegg will need to offer concessions in order to win his party's support. The most obvious would be a referendum on Lords reform, as proposed by Labour in its 2010 manifesto. This would have the added benefit of placating at least some of the Conservative rebels, such as Nadhim Zahawi and Rory Stewart, who have said they would be prepared to support the bill were a public vote promised. Others, flushed with success after the AV campaign, simply want the chance to give Clegg another bloody nose. (We must hope the voters decide otherwise.)

The Lib Dem leader has always resisted a referendum on the grounds that all three of the main parties supported reform in their manifestos. But with parliament divided, he will find it hard to argue that the people should not be given a say. Tonight, a referendum looks like the only way to avoid yet another defeat for reform.

Labour leader Ed Miliband has called for a referendum on Lords reform. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Will Euroscepticism prove an unbeatable advantage in the Conservative leadership race?

Conservative members who are eager for Brexit are still searching for a heavyweight champion - and they could yet inherit the earth.

Put your money on Liam Fox? The former Defence Secretary has been given a boost by the news that ConservativeHome’s rolling survey of party members preferences for the next Conservative leader. Jeremy Wilson at BusinessInsider and James Millar at the Sunday Post have both tipped Fox for the top job.

Are they right? The expectation among Conservative MPs is that there will be several candidates from the Tory right: Dominic Raab, Priti Patel and potentially Owen Paterson could all be candidates, while Boris Johnson, in the words of one: “rides both horses – is he the candidate of the left, of the right, or both?”

MPs will whittle down the field of candidates to a top two, who will then be voted on by the membership.  (As Graham Brady, chair of the 1922 Committee, notes in his interview with my colleague George Eaton, Conservative MPs could choose to offer a wider field if they so desired, but would be unlikely to surrender more power to party activists.)

The extreme likelihood is that that contest will be between two candidates: George Osborne and not-George Osborne.  “We know that the Chancellor has a bye to the final,” one minister observes, “But once you’re in the final – well, then it’s anyone’s game.”

Could “not-George Osborne” be Liam Fox? Well, the difficulty, as one MP observes, is we don’t really know what the Conservative leadership election is about:

“We don’t even know what the questions are to which the candidates will attempt to present themselves as the answer. Usually, that question would be: who can win us the election? But now that Labour have Corbyn, that question is taken care of.”

So what’s the question that MPs will be asking? We simply don’t know – and it may be that they come to a very different conclusion to their members, just as in 2001, when Ken Clarke won among MPs – before being defeated in a landslide by Conservative activists.

Much depends not only on the outcome of the European referendum, but also on its conduct. If the contest is particularly bruising, it may be that MPs are looking for a candidate who will “heal and settle”, in the words of one. That would disadvantage Fox, who will likely be a combative presence in the European referendum, and could benefit Boris Johnson, who, as one MP put it, “rides both horses” and will be less intimately linked with the referendum and its outcome than Osborne.

But equally, it could be that Euroscepticism proves to be a less powerful card than we currently expect. Ignoring the not inconsiderable organisational hurdles that have to be cleared to beat Theresa May, Boris Johnson, and potentially any or all of the “next generation” of Sajid Javid, Nicky Morgan or Stephen Crabb, we simply don’t know what the reaction of Conservative members to the In-Out referendum will be.

Firstly, there’s a non-trivial possibility that Leave could still win, despite its difficulties at centre-forward. The incentive to “reward” an Outer will be smaller. But if Britain votes to Remain – and if that vote is seen by Conservative members as the result of “dirty tricks” by the Conservative leadership – it could be that many members, far from sticking around for another three to four years to vote in the election, simply decide to leave. The last time that Cameron went against the dearest instincts of many of his party grassroots, the result was victory for the Prime Minister – and an activist base that, as the result of defections to Ukip and cancelled membership fees, is more socially liberal and more sympathetic to Cameron than it was before. Don’t forget that, for all the worry about “entryism” in the Labour leadership, it was “exitism” – of Labour members who supported David Miliband and liked the New Labour years  - that shifted that party towards Jeremy Corbyn.

It could be that if – as Brady predicts in this week’s New Statesman – the final two is an Inner and an Outer, the Eurosceptic candidate finds that the members who might have backed them are simply no longer around.

It comes back to the biggest known unknown in the race to succeed Cameron: Conservative members. For the first time in British political history, a Prime Minister will be chosen, not by MPs with an electoral mandate of their own or by voters at a general election but by an entirelyself-selecting group: party members. And we simply don't know enough about what they feel - yet. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.