Who passes the Clegg test?

How many of Nick Clegg's four demands do Labour and Tories meet?

So Vince Cable won't be the next chancellor after all. Today's Guardian reports that the Liberal Democrats are planning to rule out forming a coalition government with either the Conservatives or Labour in the event of a hung parliament. But they will be prepared to offer parliamentary support to any party that accepts their "shopping list" of four demands.

So who, as things stand, would pass the Clegg test?

1. "Investing extra funds in education through a pupil premium for disadvantaged children."

Conservatives: The Tories have already promised to introduce a pupil premium, with extra funding for schools that take children from the poorest homes. But the party has yet to say anything about how much it would spend, or where the money would come from.

The Lib Dems have said that the policy would cost £2.5bn a year, with the average school receiving roughly £2,500 extra for every disadvantaged child on its roll.

Labour: Ed Balls opposes a pupil premium, arguing that it would not guarantee that pupils with disadvantages or extra needs actually get the support that they need.

Verdict: A point to the Tories. None for Labour.

2. "Tax reform, taking four million out of tax and raising taxes on the rich by requiring capital gains and income to be taxed at the same rate."

Conservatives: A number of Tories are impressed by Nick Clegg's plan to raise the income-tax threshold to £10,000, but David Cameron has yet to poach the idea. Instead, he plans to focus on cutting inheritance tax and recognising marriage in the tax system. In addition, George Osborne has pledged to reduce corporation tax from 30 per cent to 27 per cent. The Tories have no plans to raise capital gains tax (CGT).

Labour: No plans to cut income tax, but Alistair Darling is said to be looking at raising CGT in the Budget to stop the wealthy exploiting a tax loophole by declaring income as capital gains. This would please the Lib Dems, who could claim to have led the agenda.

Verdict: In anticipation of a rise in capital gains tax, Labour wins half a point.

3. "Rebalancing of the economy to put less emphasis on centralised banking and more on a new, greener economy."

Conservatives: Osborne is sympathetic to calls to split investment and retail banking but has stopped short of calling for a complete separation. Cameron has promised a "localist green revolution" with companies such as Tesco and Marks & Spencer helping to make homes more energy-efficient. But will his backbenchers stand in the way? A ConservativeHome/ConservativeIntelligence survey revealed that reducing Britain's carbon footprint was the lowest priority for Tory candidates.

Labour: The government has so far refused to separate retail from investment banking and is unlikely to change its position. On the "green economy", Labour has promised to create a more than a million new green jobs and to cut UK greenhouse-gas emissions by 34 per cent by 2020.

Verdict: Half a point to the Tories on banking and half a point to Labour on the green economy.

4. "Political reforms, including changes to the voting system and a democratically elected Lords, that go further than proposed by Labour."

Conservatives: The Tories are opposed to any electoral reform and support the current first-past-the-post system. Cameron opposes proportional representation on the grounds that it hands power to the "political elites".

The Tory leader has said he supports a largely elected second chamber but is reluctant to challenge his own peers on the issue, as they are opposed to reform. In private, Cameron has described Lords reform as a "third-term issue".

Labour: Supports the replacement of first-past-the-post with the Alternative Vote and has passed legislation to ensure a referendum will be held. The Lib Dems support the move as a "step in the right direction", but are disappointed that Labour did not opt for a proportional system.

The government continues to favour a predominantly elected Lords. However, Jack Straw has warned campaigners that they will have to wait more than decade before this is achieved.

Verdict: Half a point to Labour.

Final score: Conservatives: 1½ out of 4

Labour: 1½ out of 4

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George Eaton is political editor of the New Statesman.

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Leader: The divisions within Labour

Labour’s divisions have rendered it unfit for government at a moment of profound political change.

Labour is a party torn between its parliamentary and activist wings. Since Jeremy Corbyn, who this week appealed desperately for unity, was re-elected by a landslide last September, Labour has become the first opposition in 35 years to lose a ­by-election to the governing party and has continually trailed the Conservatives by a double-digit margin. Yet polling suggests that, were Mr Corbyn’s leadership challenged again, he would win by a comfortable margin. Meanwhile, many of the party’s most gifted and experienced MPs refuse to serve on the front bench. In 2015 Mr Corbyn made the leadership ballot only with the aid of political opponents such as Margaret Beckett and Frank Field. Of the 36 MPs who nominated him, just 15 went on to vote for him.

Having hugely underestimated the strength of the Labour left once, the Parliamentary Labour Party (PLP) will not do so again. In the contest that will follow Mr Corbyn’s eventual departure, the centrists could lock out potential successors such as the shadow business secretary, Rebecca Long-Bailey. Under Labour’s current rules, candidates require support from at least 15 per cent of the party’s MPs and MEPs.

This conundrum explains the attempt by Mr Corbyn’s supporters to reduce the threshold to 5 per cent. The “McDonnell amendment” (named after the shadow chancellor, who failed to make the ballot in 2007 and 2010) is being championed by the Bennite Campaign for Labour Party Democracy and Jon Lansman of Momentum, who is interviewed by Tanya Gold on page 34. “For 20 years the left was denied a voice,” he tweeted to the party’s deputy leader, Tom Watson, on 19 March. “We will deny a voice to no one. We face big challenges, and we need our mass membership to win again.”

The passage of the amendment at this year’s Labour conference would aid Mr Lansman’s decades-long quest to bring the party under the full control of activists. MPs have already lost the third of the vote they held under the electoral college system. They face losing what little influence they retain.

No Labour leader has received less support from his MPs than Mr Corbyn. However, the amendment would enable the election of an even more unpopular figure. For this reason, it should be resolutely opposed. One should respect the motivation of the members and activists, yet Labour must remain a party capable of appealing to a majority of people, a party that is capable of winning elections.

Since it was founded, Labour has been an explicitly parliamentary party. As Clause One of its constitution states: “[The party’s] purpose is to organise and maintain in Parliament and in the country a political Labour Party.” The absurdity of a leader opposed by as much as 95 per cent of his own MPs is incompatible with this mission. Those who do not enjoy the backing of their parliamentary colleagues will struggle to persuade the voters that they deserve their support.

Labour’s divisions have rendered it unfit for government at a moment of profound political change. Rather than formalising this split, the party needs to overcome it – or prepare for one of the greatest defeats in its history.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution