Ed Miliband cannot be radical and cautious at the same time

The Labour leader indulges contradictory positions in his entourage. He needs to choose a course and

The Labour leader indulges contradictory positions in his entourage. He needs to choose a course and stick with it.

A new year has deepened old splits. This week Ed Miliband's guru Lord Glasman politely excoriated the party for seemingly having "no strategy". If anyone thought it was a direct attack on Ed Miliband, they missed the point. It was a thinly veiled assault on Ed Balls and the shadow chancellor's associated vision for the state.

Glasman is not alone. Labour MP Jim Murphy reached out to join him and In the Black Labour argued that the lack of coherence on the deficit was undermining the party's credibility. Liam Byrne MP called for benefits to be overhauled. Although Ed Miliband has agreed to all these positions in theory, he has not led them in practice.

Whilst the parliamentary party is closer to Ed Balls, the country is closer to Maurice Glasman, at least in terms of spending. Ed Miliband is somewhere in the middle, and the result is an awkward triangulation that doesn't get through to the public.

In his latest interview for the Guardian, the Labour leader papered over the split. He came out relatively strongly in favour of fiscal conservatism, saying that finding a way to improve the country with less money was "the challenge" facing Labour. But he also defended Ed Balls, saying that he was the man who led spending cuts in 1997.

This feels disingenuous. Ed Balls clearly believes a form of Keynesian economics is a credible way to get us out of the red, and if he does have plans to improve the country beyond a traditional tax and spend model, I haven't heard them. I am still not clear what his plans are to boost the private sector or how to rebalance growth out of the South East and financial services, although this may be because Balls believes it would take even more investment in enterprise zones or tax breaks, meaning even great cuts elsewhere.

Blue Labour is calling for a radically different programme. Glasman has repeatedly urged us to learn the lessons of Germany, increasing vocational education, regional banks and workers' representation. He wants a more reciprocal model of the state with a heavier emphasis on contribution, giving people control over assets rather than material flows. He wants a deep cultural change that allows the party to speak about small 'c' conservative values that deal with family, neighbourliness and place.

Glasman also clashes with Balls on the market. He wants to place limits on the flexibility of capital and labour and have a dialogue about responsible capitalism. Ed Balls seems at best uninterested with this approach. When the opposition asked Balls to define "predatory behaviour" heralded by his leader under the inspiration of Glasman, he had nothing to say, and as left blogger Sunny Hundal points out, Balls' recent position on bankers was essentially the same as the Conservatives.

Both sides have their challenges. The problem for Ed Balls is that his strategy seems bankrupt. We don't know where the money for tax and spend is going to come from. Even if we did, it doesn't answer the fact that Labour's huge welfare bill failed to empower many vulnerable people. And it's not where the public are at. They hate waste and want fiscal discipline.

The problem for Glasman is that he lacks a strategy for power. Ed Miliband is - or was - his key relationship with power. He took a risk by speaking out, and the leader's office is now irritated with him, and the parliamentary party is unlikely to be sympathetic. There are only so many times you can set fire to a bridge before it burns down completely.

So now Ed Miliband has to make a choice. I want him to succeed, but too often his interviews appear to be carving out a difficult intellectual position for journalists and politicians to accept as consistent. He needs to speak over the heads of Westminster elites and talk to the country about exactly what a Labour government would look like. His messages on the squeezed middle, responsibility and the promise of Britain are right on. He just needs the strength to follow through what these radical changes mean in practice. We need to see how Labour will turn a sense of national decline into something great.

Rowenna Davis is Labour PPC for Southampton Itchen and a councillor for Peckham

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.