Iain McNicol is the right man for the job

And now Labour's new general secretary needs to address three big challenges.

While today's headlines have rightly been dominated by the select committee interrogations of the police and Murdoch family, on the quiet Labour took an important step towards winning the next election. No, David Cameron has not admitted that he knew that Andy Coulson knew about phone hacking. Today's development has been rather more prosaic: just before lunch, Labour's National Executive Committee unanimously affirmed its decision to appoint a new General Secretary by the name of Iain McNicol.

McNicol is by no means a household name, even within the Labour Party, but over 20 years of grassroots work for the Labour movement, he has proved himself to be absolutely the right person to see through what Ed Miliband has started in refounding the Labour party as a community-based movement.

McNicol has worked his way up the Labour Party and knows how the organisation works inside out. He worked for Labour Students in the early 1990s and went on to become a Labour organiser in Scotland and London.

More recently he has worked for the GMB union, which represents 600,000 workers including -- inconveniently for many on the right -- half from the private sector. During this time he has developed his organisational and representative skills and built strong links between the union grassroots and its leadership.

Unlike the caricature of some career campaigners, Iain also has his own hinterland. He lists skiing, snowboarding, swimming and windsurfing among his interests and, somewhat intimidatingly, is a black belt in karate.

The focus and fearlessness needed in martial arts will help McNicol confront the multiple challenges facing the Labour party. Critical to this is his role helping the party replace the command and control methods of the 1990s with what McNicol called yesterday, "a dramatic decentralisation of party power, decision making and resourcing to empower staff, members and candidates around the UK".

Up and down the country during the 2010 general election there were well documented examples of how organisers like Caroline Badley in Birmingham Edgbaston used the latest campaigning techniques to recruit and motivate volunteers while others engaged in community organising or developed sophisticated 'get out the vote' operations. But these were often isolated examples.

Now the party faces three big challenges. First, how will it widen its base of funders so that it can do more and become less reliant on large donors and trades unions for its resources. Second, how can the Labour party refound itself as the central organisation for local change in every community of the country? Third, how can the party best use technology to enhance its campaigning work and reach out to ever more people?

Much of this is already taking place with dedicated teams in Victoria Street working on 'webinars' to train members in online tools and organisations like the Movement for Change bringing community organising advice to CLPs up and down the country. Iain McNicol will take over at the top in September dedicated to prioritising these reforms and seeing them through. As someone who backed Ed Miliband's campaign from the start, he will be particularly well placed to win the trust of the leaders' office.

But as friends of McNicol have told me, he does not want to do this alone. Instead, he wants to lead an outward looking party that will call on members and supporters to roll their sleeves up and get involved.

So there is now an onus on all of us who have called for the Labour Party to reform its structures and embrace the role of community organising and modern technology to get involved and support our new General Secretary in delivering his vision of a new party.

Will Straw co-edited with Nick Anstead the Fabian Society pamphlet, "The change we need: what Britain can learn from Obama's victory". He writes here in a personal capacity.

Will Straw is Associate Director at IPPR.

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Labour tensions boil over at fractious MPs' meeting

Corbyn supporters and critics clash over fiscal charter U-turn and new group Momentum. 

"A total fucking shambles". That was the verdict of the usually emollient Ben Bradshaw as he left tonight's Parliamentary Labour Party meeting. His words were echoed by MPs from all wings of the party. "I've never seen anything like it," one shadow minister told me. In commitee room 14 of the House of Commons, tensions within the party - over the U-turn on George Osborne's fiscal charter and new Corbynite group Momentum - erupted. 

After a short speech by Jeremy Corbyn, shadow chancellor John McDonnell sought to explain his decision to oppose Osborne's fiscal charter (having supported it just two weeks ago). He cited the change in global economic conditions and the refusal to allow Labour to table an amendment. McDonnell also vowed to assist colleagues in Scotland in challenging the SNP anti-austerity claims. But MPs were left unimpressed. "I don't think I've ever heard a weaker round of applause at the PLP than the one John McDonnell just got," one told me. MPs believe that McDonnell's U-turn was due to his failure to realise that the fiscal charter mandated an absolute budget surplus (leaving no room to borrow to invest), rather than merely a current budget surplus. "A huge joke" was how a furious John Mann described it. He and others were outraged by the lack of consultation over the move. "At 1:45pm he [McDonnell] said he was considering our position and would consult with the PLP and the shadow cabinet," one MP told me. "Then he announces it before 6pm PLP and tomorow's shadow cabinet." 

When former shadow cabinet minister Mary Creagh asked Corbyn about the new group Momentum, which some fear could be used as a vehicle to deselect critical MPs (receiving what was described as a weak response), Richard Burgon, one of the body's directors, offered a lengthy defence and was, one MP said, "just humiliated". He added: "It looked at one point like they weren't even going to let him finish. As the fractious exchanges were overheard by journalists outside, Emily Thornberry appealed to colleagues to stop texting hacks and keep their voices down (within earshot of all). 

After a calmer conference than most expected, tonight's meeting was evidence of how great the tensions within Labour remain. Veteran MPs described it as the worst PLP gathering for 30 years. The fear for all MPs is that they have the potential to get even worse. 

George Eaton is political editor of the New Statesman.