Labour turns on Cable over "capitulation" to the Tories

Chuka Umunna says reforms to employment law are an attack on workers' rights.

Last week, Vince Cable was eulogised by Ed Balls as the Lib Dem who could no almost wrong. "Vince has distinguished himself by always making the argument about what's right for Britain," he said, as he beamed at the Business Secretary, sat beside him on Andrew Marr's sofa.

But Balls's colleague Chuka Umunna, the shadow business secretary, isn't feeling so charitable towards Cable. Earlier this morning, Umunna took to Twitter to criticise the Business Secretary's reforms to employment law as an attack on workers' rights. He added that Ming Campbell, who has questioned Cable's textual relations with Labour, should worry more about "Cable's capitulation to Fallon, Hancock and co. on employment law"

While Cable will today formally reject calls for the introduction of "no-fault dismissal" or fire-at-will (a proposal that emanated from Tory donor Adrian Beecroft's now-infamous report on employment law), he will announce a significant cut in the cap on unfair dismissal payouts. The current £72,000 limit is expected to be reduced to an employee's annual salary, or another lower figure. In addition, employment tribunals will be sped up, so that costs are reduced and weak cases thrown out more swiftly. Though you wouldn't know it from the right's response, 80 per cent of Beecroft's recommendations have been adopted or put out to consultation.

Continuing his assault on Cable, Umunna declared, "We're not in a recession because of the rights our constituents have at work - its cos of the govt's failed economic plan." The Business Secretary, of course, wouldn't disagree. During his appearance on Marr last week, he sagely observed, "The problem of growth is that we have a very serious shortage of demand. It's nothing to do with those supply side measures basically. It's a demand issue."

As a result, suspicion persists among the Tories that Cable's heart isn't really in it. But whatever the Business Secretary's true feelings, a third successive quarter of recession persuaded the coalition partners to strike a grand bargain on growth. You give us supply-side reform, and we'll give you a small business bank (a measure that allowed Cable to hail the end of "pure laissez-faire" economics).

Umunna's decision to respond with an attack of rare ferocity suggests that not everyone in Labour is so keen to lure the Business Sectetary from the Tories' clutches.

Business Secretary Vince Cable will announce reforms to employment law today. Photograph: Getty Image.

George Eaton is political editor of the New Statesman.

Photo: Getty
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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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