Could Labour lose the Rotherham by-election?

The party still expects to win but is increasingly nervous about the UKIP threat.

As well as the publication of the Leveson report, tomorrow sees three parliamentary by-elections - in Middlesborough, Croydon North and Rotherham (all currently Labour-held). Of these, it is the latter that Labour is concentrating resources on. A combination of factors - the date (which will reduce turnout), the child grooming scandals, Denis MacShane's resignation over false invoices, a divided local party and, most recently, the UKIP fostering row - means that the result is increasingly hard to predict.

It was initially Respect, which is fielding Yvonne Ridley, a former journalist who famously converted to Islam after her capture by the Taliban, that was seen as the main threat, but it is now UKIP, support for which has surged since the weekend, that represents the greatest challenge to Labour. The latest YouGov poll puts Nigel Farage's party on 11 per cent (up from eight per cent), the party's highest-ever rating, and it is likely to have enjoyed a far larger swing in Rotherham.

The expectation among those Labour MPs I've spoken to remains that the party will retain the seat (as well as Middlesborough and Croydon North), albeit, one said, with a "significantly reduced majority". The advantage for Labour, which currently holds a majority of 10,462 in Rotherham, is that the protest vote will be split four ways between UKIP, Respect, the BNP (which polled 10.4 per cent in 2010) and the English Democrats. One hope among party activists is that the Tories will be pushed into third or even fourth place, leaving them unable to spin the result against Labour.

Ed Miliband speaks to reporters after Labour candidate Andy Sawford won the Corby by-election. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.