Would Clegg’s head be the price of a Lab-Lib coalition?

Shadow cabinet minister John Denham suggests that the Liberal Democrats would need a new leader.

This week brought the "revelation" that Nick Clegg insisted on Gordon Brown's head as the price of a Lab-Lib coalition but could Labour turn the tables on the Lib Dems at the next election?

Should Labour emerge as the single largest party in a hung parliament, many will want to force Clegg's departure before any coalition is formed. In an interview in the latest edition of Fabian Review, John Denham, the shadow communities secretary, suggests that Labour could not work with a Clegg-led Lib Dem party:

It would require a new leader and a new politics. The idea that the Lib Dems can do this now, and then, in a few years, say they'd like to be friends with Labour when they are fundamentally unchanged is out of the question. Many people, including electoral reformers like me who always thought there could be a centre-left coalition with the Lib Dems, have to understand they have taken a historic position which puts them outside that game until they change profoundly.

That Denham, a Labour pluralist who supported attempts to form a "progressive coalition", feels this way suggests that many others in the party do, too. For now, the Lib Dems remain surprisingly united behind Clegg. As Richard Grayson points out in his cover story for the latest issue, the trauma of losing Charles Kennedy and Ming Campbell in quick succession has made the Liberal Democrats extremely leadership-loyal.

But Clegg's fate is now almost entirely intertwined with that of the coalition, which could leave him dangerously exposed if, as expected, the forthcoming spending cuts make the government rapidly unpopular. Should the Lib Dems suffer significant losses in the May 2011 local elections, we will start to hear the first proper rumblings of discontent.

Either way, it makes sense for Labour to begin planning war-gaming scenarios for a hung parliament now. So which Lib Dem figure could replace Clegg and win over a rejuvenated Labour Party? Step forward, Charles Kennedy.

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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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