Cameron pulled in all directions on Europe

Ed Miliband accuses Cameron of leading the UK to the EU "exit" as David Davis demands two referendums.

Ken Clarke is one of the few prominent Conservative politicians still prepared to make the case for EU integration and he did it with gusto on the Today programme this morning. It was "complete folly" to put our membership at risk, he said, lamenting that the country had gone into "a nervous breakdown" over the subject. He dismissed the 53 Tory MPs who voted for a real-terms cut in the EU budget as "extreme Eurosceptics" and revealed that David Cameron had assured him that he was committed to continued British membership of the union.

"David Cameron assures the public, he’s always assured me, that he believes, as I do, that Britain’s place in the modern world has got to be in the EU.

It would be a disaster for our influence in global political events; it would be a disaster for the British economy, if we were to leave the EU. It damages our influence in these great critical events of the moment if we keep casting doubt on our continued membership."

Cameron, meanwhile, is being pulled in all directions on Europe today. In a speech at the CBI's annual conference, (which will also hear addresses from Cameron, Vince Cable and Boris Johnson), Ed Miliband will accuse him of allowing Britain to "sleepwalk towards exit" in a "betrayal of our national interest."

The Labour leader will say:

For more than three decades, our membership of the EU has seemed to be a settled question. Not any more.

Public scepticism about the EU has been on the rise for some time. Some cabinet ministers in this government now openly say we would be better off outside the EU.

And many of our traditional allies in Europe clearly think Britain is heading to the exit door. Those of us, like me, who passionately believe that Britain is stronger in the EU cannot be silent in a situation like this. I will not allow our country to sleepwalk towards exit because it would be a betrayal of our national interest.

He will add that were the UK to leave the EU, it would be "the United States, China, the EU in the negotiating room - and Britain in the overflow room. We would end up competing on low wages and low skills: an offshore low-value economy, a race to the bottom".

At the same time, Cameron's former leadership rival David Davis will use a speech at St Stephen's Club to call for the PM to offer not one but two referendums on Europe. The first would be a vote on what powers the government should seek to repatriate from Brussels, the second, to be held following the conclusion of negotiations, would be a vote on whether to remain in the EU.

Cameron is still expected to use a speech before Christmas to outline plans to hold a referendum after the next election on a "new EU settlement" for Britain, but Davis and other Tory MPs are growing increasingly impatient. As Davis said on the Andrew Marr Show yesterday: "Nobody believes it and why should they? The British public have been promised a referendum by the three major parties, and every single one has not delivered. Now, they may have their reasons, but they haven’t delivered and so the public feel they’ve been lied to – they won’t believe any more promises on referenda actually."

Elsewhere, the ever-helpful Boris Johnson uses his Telegraph column to warn Cameron that nothing less than a veto of the EU budget will do. He writes:

It is time for David Cameron to put on that pineapple-coloured wig and powder blue suit, whirl his handbag round his head and bring it crashing to the table with the words no, non, nein, neen, nee, ne, ei and ochi, until they get the message.

Yet a veto, by compelling the EU to set annual budgets through qualified majority voting, would almost certainly lead to a large increase in the UK contribution. If Cameron wants to make a eurosceptic gesture, it could prove a costly one.

David Cameron is expected to announce details of an EU referendum in a speech before the end of the year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Five things we've learned from Labour conference

The party won't split, Corbynite divisions are growing and MPs have accepted Brexit. 

Labour won't split anytime soon

For months, in anticipation of Jeremy Corbyn’s re-election, the media had speculated about the possibility of a Labour split. But the party’s conference confirmed that MPs have no intention of pursuing this course (as I had long written). They are tribally loyal to Labour and fear that a split would prove electorally ruinous under first-past-the-post. Many still expect Theresa May to hold an early general election and are focused on retaining their seats.

Rather than splitting, Corbyn’s opponents will increase their level of internal organisation in a manner reminiscent of the left’s Socialist Campaign Group. The “shadow shadow cabinet” will assert itself through backbench policy committees and, potentially, a new body (such as the proposed “2020 group”). Their aim is to promote an alternative direction for Labour and to produce the ideas and organisation that future success would depend on.

MPs do not dismiss the possibility of a split if their “hand is forced” through a wave of deselections or if the left achieves permanent control of the party. But they expect Labour to fight the next election as a united force.

Neither the Corbynites nor the rebels have ultimate control 

Corbyn’s second landslide victory confirmed the left’s dominance among the membership. He increased his winning margin and triumphed in every section. But beyond this, the left’s position is far more tenuous.

The addition of Scottish and Welsh representatives to the National Executive Committee handed Corbyn’s opponents control of Labour’s ruling body. Any hope of radically reshaping the party’s rule book has ended.

For weeks, Corbyn’s allies have spoken of their desire to remove general secretary Iain McNicol and deputy leader Tom Watson. But the former is now safe in his position, while the latter has been strengthened by his rapturously received speech.

Were Corbyn to eventually resign or be defeated, another left candidate (such as John McDonnell) would struggle to make the ballot. Nominations from 15 per cent of MPs are required but just six per cent are committed Corbynites (though selection contests and seat losses could aid their cause). It’s for this reason that allies of the leader are pushing for the threshold to be reduced to five per cent. Unless they succeed, the hard-left’s dominance is from assured. Were an alternative candidate, such as Clive Lewis or Angela Rayner, to succeed it would only be by offering themselves as a softer alternative.

Corbynite divisions are intensifying 

The divide between Corbyn’s supporters and opponents has recently monopolised attention. But the conference showed why divisions among the former should be interrogated.

Shadow defence secretary Clive Lewis, an early Corbyn backer, was enraged when his speech was amended to exclude a line announcing that Labour’s pro-Trident stance would not be reversed. Though Lewis opposes renewal, he regards unilateralism as an obstacle to unifying the party around a left economic programme. The longer Corbyn remains leader, the greater the tension between pragmatism and radicalism will become. Lewis may have alienated CND but he has improved his standing among MPs, some of whom hail him as a bridge between the hard and soft left.

Elsewhere, the briefing against McDonnell by Corbyn allies, who suggested he was an obstacle to recruiting frontbenchers, showed how tensions between their respective teams will continue.

Labour has accepted Brexit

Ninety four per cent of Labour MPs backed the Remain campaign during the EU referendum. But by a similar margin, they have accepted the Leave vote. Jeremy Corbyn and John McDonnell, both long-standing eurosceptics, confirmed that they would not seek to prevent Brexit.

Owen Smith called for a referendum on the eventual deal during his leadership campaign. But with some exceptions, such as Angela Eagle, most of his backers have rejected the idea. Though 48 per cent of the electorate voted Remain, MPs emphasise that only 35 per cent of constituencies did. Some still fear an SNP-style surge for Ukip if Labour seeks to overturn the outcome.

The debate has moved to Britain’s future relationship with Europe, most notably the degree of free movement. For Labour, like Theresa May, Brexit means Brexit.

Corbyn will not condemn deselections 

The Labour leader could have won credit from MPs by unambiguously condemning deselection attempts. But repeatedly invited to do so, he refused. Corbyn instead defended local parties’ rights and stated that the “vast majority” of MPs had nothing to fear (a line hardly reassuring to those who do). Angela Eagle, Stella Creasy and Peter Kyle are among the rebels targeted by activists.

Corbyn can reasonably point out that the rules remain the same as under previous leaders. MPs who lose trigger ballots of their local branches face a full and open selection. But Labour’s intensified divisions mean deselection has become a far greater threat. MPs fear that Corbyn relishes the opportunity to remake the parliamentary party in his own images.  And some of the leader’s allies hope to ease the process by reviving mandatory reselection. Unless Corbyn changes his line, the issue will spark continual conflict. 

George Eaton is political editor of the New Statesman.