The lesson of Labour's Rotherham selection disaster

The walkout by half of local members shows why party-imposed shortlists must be abandoned.

The Tories aren't the only party suffering byelection woes this morning.  At the Labour selection meeting in Rotherham last night, half of the members present walked out in protest at the party's failure to include a local figure on the shortlist. This left fewer than 50 to vote on the selection of Sarah Champion, who defeated the only other person on the list, former RAF Wing Commander Sophy Gardner.

The walkout was staged by supporters of Mahroof Hussain, a prominent local councillor who was the preferred choice of the membership. As is  standard for by-elections, the shortlist was drawn up by Labour's National Executive Committee, rather than a local selection committee, which chose not to include Hussain. Last night's debacle shows why this approach must be abandoned. The party cannot talk credibly about localism if it is not prepared to trust its own members to select the Labour candidate.

There is inevitably speculation that Hussain will stand as an independent, although earlier this week he tweeted, "Friends, I have not been shortlisted for Rotherham. We need to unite behind the next Labour Party candidate and keep Rotherham labour (sic)".

Others fear that a potential split in the Labour vote could allow Respect candidate Yvonne Ridley, a former journalist who famously converted to Islam after her capture by the Taliban, to repeat her party's triumph in Bradford West earlier this year. However, it is doubtful whether she will attract the support necessary to overturn a Labour majority of 10,462 (27.9 per cent).

Although the byelection (which will be held on 29 November) was triggered by Denis MacShane's resignation over false invoices, I would be surprised if Labour is punished as a result. The lesson of the 2010 general election was that, so long as expense abusers stand down, their parties rarely suffer.

Ed Miliband walks through Hyde Park after addressing TUC members at an anti-austerity rally last month. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.