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.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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