The Tories think they can flush out Ed's inner red

Part of the strategy behind the land-grab on the "moral economy" is to nudge the Labour leader into

The fair capitalism debate that has rumbled on throughout this week looks likely to continue into the next one.

Business Secretary Vince Cable is delivering a speech on Tuesday on the subject of executive pay. (The coalition thinks some of it is too high, or rather, it isn't adequately indexed to commercial success.) Cable is speaking at an event hosted by the Social Market Foundation think tank, although Chuka Umunna, shadow Business Secretary, is trying to force Vince to announce his plans in parliament first. Umunna raised a point of order with the Speaker on Wednesday on the grounds that it is - as John Bercow has himself made clear in the past - bad form for ministers to bypass the House when presenting new policy.

It's a small point, but then parliamentary point-scoring is one of the few ways the opposition can have any impact at all. Trying to make Cable give an account of himself in parliament is a sensible tactical gambit since the Commons chamber is always a less forgiving environment than, well, anywhere really. Especially for Lib Dems.

Cable is quite a threat to Labour on this topic. His speech to the Lib Dem party conference last year covered a lot of the themes that are now established in the cannon of "responsible capitalism" rhetoric. And that was a week before Ed Miliband made his famous (at least to political obsessives) predators v producers speech at the Labour conference in Liverpool. Committed students of Vincology will know that his book - The Storm - concluded with a call for conscientious liberal reforms to capitalism in order to head off a populist attack from the far left and far right in the aftermath of the banking crisis.

Cable is also the only politician who can out-boast Ed Miliband when it comes to standing up to Rupert Murdoch - it is a badge of honour they both sport ostentatiously as evidence of their willingness to take on "vested interests".

As I wrote in my column this week, the Lib Dems badly need to be associated with something popular that the coalition is doing. Bashing bankers - a topic on which Vince has form - very much fits that bill.

The Tories, meanwhile, are playing a slightly different game. They are motivated chiefly by the need to close the "fair capitalism" subject down as a political playground for Ed Miliband. As I wrote in the column, Downing Street thinks it has enough material on responsibility and fairness in the Cameroon archive (going back to the brand decontamination "modernising" days) to persuade people that the prime minister has been into this stuff for years and that, by extension, it is not the exclusive property of the Labour leader.

But I now gather there is more to the strategy than a simple policy wardrobe raid. People close to Cameron are persuaded that Miliband's instincts are substantially to the left of his public pronouncements. The thinking in Number 10 is that, with a bit of pressure for ownership of this new centre ground, where it is fashionable to decry the ugly side of capitalism, Miliband can be nudged into a more fundamentalist stance. Part of the thinking behind Cameron's "moral markets" speech yesterday was to draw a dividing line between those who want capitalism to work better and those who think it is really a scam from top to bottom, with Labour on the wrong side. Cameron and Osborne want to maneouvre the Labour leader into a position where he sounds not pro-reform but anti-market. The Tories don't just want to expropriate Miliband, they want to drive him off into a tent by St Paul's.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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PMQs review: Jeremy Corbyn prompts Tory outrage as he blames Grenfell Tower fire on austerity

To Conservative cries of "shame on you!", the Labour leader warned that "we all pay a price in public safety" for spending cuts.

A fortnight after the Grenfell Tower fire erupted, the tragedy continues to cast a shadow over British politics. Rather than probing Theresa May on the DUP deal, Jeremy Corbyn asked a series of forensic questions on the incident, in which at least 79 people are confirmed to have died.

In the first PMQs of the new parliament, May revealed that the number of buildings that had failed fire safety tests had risen to 120 (a 100 per cent failure rate) and that the cladding used on Grenfell Tower was "non-compliant" with building regulations (Corbyn had asked whether it was "legal").

After several factual questions, the Labour leader rose to his political argument. To cries of "shame on you!" from Tory MPs, he warned that local authority cuts of 40 per cent meant "we all pay a price in public safety". Corbyn added: “What the tragedy of Grenfell Tower has exposed is the disastrous effects of austerity. The disregard for working-class communities, the terrible consequences of deregulation and cutting corners." Corbyn noted that 11,000 firefighters had been cut and that the public sector pay cap (which Labour has tabled a Queen's Speech amendment against) was hindering recruitment. "This disaster must be a wake-up call," he concluded.

But May, who fared better than many expected, had a ready retort. "The cladding of tower blocks did not start under this government, it did not start under the previous coalition governments, the cladding of tower blocks began under the Blair government," she said. “In 2005 it was a Labour government that introduced the regulatory reform fire safety order which changed the requirements to inspect a building on fire safety from the local fire authority to a 'responsible person'." In this regard, however, Corbyn's lack of frontbench experience is a virtue – no action by the last Labour government can be pinned on him. 

Whether or not the Conservatives accept the link between Grenfell and austerity, their reluctance to defend continued cuts shows an awareness of how politically vulnerable they have become (No10 has announced that the public sector pay cap is under review).

Though Tory MP Philip Davies accused May of having an "aversion" to policies "that might be popular with the public" (he demanded the abolition of the 0.7 per cent foreign aid target), there was little dissent from the backbenches – reflecting the new consensus that the Prime Minister is safe (in the absence of an attractive alternative).

And May, whose jokes sometimes fall painfully flat, was able to accuse Corbyn of saying "one thing to the many and another thing to the few" in reference to his alleged Trident comments to Glastonbury festival founder Michael Eavis. But the Labour leader, no longer looking fearfully over his shoulder, displayed his increased authority today. Though the Conservatives may jeer him, the lingering fear in Tory minds is that they and the country are on divergent paths. 

George Eaton is political editor of the New Statesman.

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