What David Miliband's latest intervention means

The politics behind the Labour MP's New Statesman leader.

David Miliband's leader in this week's New Statesman, which he has guest-edited, is his most significant political intervention since his much-discussed attack on "Reassurance Labour" in the NS earlier this year. In an echo of that piece, the former foreign secretary mounts a critique of "defensive social democracy", an explicit rebuke to those in Labour who believe the party should simply ride the wave of discontent over austerity. He writes:

[I]f defensive social democracy delivers a win - and it is a big if- the problem will be with governing.

Miliband acknowledges that Labour has a bold economic narrative - "that Britain needs fundamental change in its market structure and culture to compete in the modern world." But he is clear that far more detail is needed for the party to convince voters that it represents a credible alternative to the coalition. In a significant overture to the Liberal Democrats, he suggests that the party should take Vince Cable's 2012 Budget submission to George Osborne, lamenting the lack of a "compelling vision" beyond austerity, and "promise to implement it." It is a statement that some in Labour will see as a snub to the shadow chancellor, Ed Balls, who has set out his own five-point plan for growth.

Rather than simply renew commitments to "tax and spend", Miliband writes, Labour needs to make "switch spends". He highlights a proposal by IPPR, the think-tank where he worked before becoming Tony Blair's Head of Policy, to use a ten-year freeze on child benefit to pay for universal affordable childcare. It is a call for Labour to move beyond the dualistic approach of either supporting or opposing the coalition's cuts.

Miliband's fear is that Labour will "confuse being a better opposition with becoming a potential government". His praise for Jon Cruddas, the MP now leading the party's policy review, who Miliband notes is "not a policy wonk - a great advantage", is a sign that he believes Labour will avoid this trap. But his closing assertion that the Labour "cannot be conservative" is a warning to his brother not to appease the party's status quo faction.

David Miliband warns against "defensive social democracy" in his leader in this week's New Statesman. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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If the cuts are necessary, where's Philip Hammond's deficit target gone?

The Chancellor ripped up his predecessor's plans and has no plan to replace them. What's going on?

Remember austerity?

I’m not talking about the cuts to public services, which are very much still ongoing. I’m talking about the economic argument advanced by the Conservatives from the financial crisis in 2007-8 up until the European referendum: that unlesss the British government got hold of its public finances and paid down its debt, the United Kingdom would be thrown into crisis as its creditors would get nervous.

That was the rationale for a programme of cuts well in excess of anything their coalition partners, the Liberal Democrats, campaigned on in the run-up to the 201 election. It was the justification for cuts to everything from English language lessons to library hours. It was the stick used to beat Labour in the 2015 election. Now it justifies cuts to payments to families that lose a parent, to mental health services and much else besides.

Which is odd, because there’s something missing from this election campaign: any timetable from the Tories about when, exactly, they intend to pay all that money back. Neither the government’s day-to-day expenditure nor its existing debt can meaningfully be said to be any closer to being brought into balance than they were in 2010.

To make matters worse, Philip Hammond has scrapped George Osborne’s timetable and plan to secure both a current account surplus and to start paying off Britain’s debts. He has said he will bring forward his own targets, but thus far, none have been forthcoming.

Which is odd, because if the nervousness of Britain’s creditors is really something to worry about, their causes for worry have surely increased since 2015, not decreased. Since then, the country has gone from a byword for political stability to shocking the world with its vote to leave the European Union. The value of its currency has plummetted. Its main opposition party is led by a man who, according to the government at least, is a dangerous leftist, and, more to the point, a dangerous leftist that the government insists is on the brink of taking power thanks to the SNP. Surely the need for a clear timetable from the only party offering “strong and stable” government is greater than ever?

And yet: the government has no serious plan to close the deficit and seems more likely to add further spending commitments, in the shape of new grammar schools, and the possible continuation of the triple lock on pensions.  There seems to be no great clamour for Philip Hammond to lay out his plans to get the deficit under control.

What gives?

Could it all, possibly, have been a con to advance the cause of shrinking the state?

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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