Where did it all go wrong for Labour in Scotland?

Labour’s attempt to turn the election into a referendum on the coalition was a disaster.

It was a terrible night for Labour in Scotland. The SNP has won a second straight victory and now looks like the natural party of devolved government. The proportional additional member system is designed to prevent any party from winning a majority (a safety valve against independence), but it looks like Alex Salmond could get one. The SNP is predicted to win 68 seats: an overall majority of three and the largest number of seats any party has ever won in the Scottish Parliament.

So, where did it all go wrong for Labour? As recently as March, the party was enjoying a double-digit lead in the polls. What's now clear is that its attempt to turn the election into a referendum on the Westminster coalition was a disastrous misjudgement. Ed Miliband urged the public to use the contest to give Labour "the best chance of stopping it [the coalition] going to the full term". But he badly misread the mood in Scotland after one term of SNP governance. The electorate chose to judge the contest on its own merits and concluded that Salmond would do a better job of standing up for Scottish interests than Iain Gray ("Gray by name, grey by nature"). The charismatic Salmond ran a textbook presidential campaign that give him the edge with swing voters.

The SNP's remarkable poll surge (up 12.3 per cent in the constituency section) is not the product of any increase in anti-Union sentiment. The most recent poll on the subject showed that just 33 per cent would vote in favour of independence, were a referendum to be held. It is precisely for this reason that so many chose to vote for Salmond's party. They were free to endorse his social-democratic policies (no tuition fees, no NHS prescription charges, free personal care for the elderly, free school meals for all five-to-eight-year-olds), safe in the knowledge that they retain a veto over independence. As Roy Hattersley (a Miliband ally) just admitted on the BBC, the SNP won because it offered something "genuinely radical". Salmond, a formidable politician, deftly positioned his party to the left of Labour and repelled the old gibe of "Tartan Tories".

In a leader published a week ago, we warned that failure in Scotland would be a big blow for Miliband's leadership. Labour has been denied what he rightly identified as a platform to set out a "real alternative" to the coalition government. This fact, combined with the inevitable rejection of AV, means that two significant opportunities to undermine the Tories have been missed.

Miliband has become associated with defeat dangerously early in his leadership. The prospect of an emboldened Tory party fighting the next election under first-past-the-post, having redrawn the constituency boundaries in its favour, is not a happy one for Labour.

George Eaton is political editor of the New Statesman.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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