Mandelson begins to spin his way out of defeat

The Business Secretary suggests making Cameron PM would be a kind of victory for New Labour.

Regardless of the outcome of this election, Peter Mandelson is already trying to spin his way out of defeat. Here's what the silver-tongued First Secretary recently told the NS editor, Jason Cowley:

The point about the Conservatives is that they believe they cannot win an election by running against New Labour. They are for the political landscape that we have created.

The whole point of Cameron's Conservatives is to market his party in a way that leads people to believe they've put their past behind them, that they're a continuum of New Labour.

They are not, as it happens. But the fact that they feel they can only win power by marketing themselves in that way says a lot about the strength of New Labour.

You'll be able to read more from Mandelson in Jason's interview with Gordon Brown for this week's magazine (out tomorrow).

As he writes, it does seem like an attempt by Mandelson "to claim a kind of victory even in defeat". He speaks with the pride of a teacher whose textbook (The Blair Revolution Revisited) has been eagerly devoured, even if not all of the lessons have been learned.

Yet key figures on Labour's centre left, such as Jon Cruddas, argue that the similarities between Cameron's Conservatives and New Labour represent a defeat, not a victory for the party. It is because Labour has been insufficiently bold that the Tories have succeeded in masquerading as progressive, even while pledging to cut taxes for millionaires.

We can expect this division, between those who feel flattered and those who feel enraged by Cameron's rise, to be at the centre of any future Labour leadership contest.

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George Eaton is political editor of the New Statesman.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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