The unions give Labour the edge in the donations race

Labour received £3m between July and September, 82 per cent of which came from trade unions.

The latest political donation figures are out and they reveal that Labour raised more money than any other party between July and September. Excluding public funds, Ed Miliband's party received £3,011,858, compared to £2,613,496 for the Tories, and £578,087 for the Lib Dems.

Once again, it was the trade unions that gave Labour the edge, accounting for 82 per cent (£2,470,908) of all donations to the party, with the largest union, Unite, responsible for 26 per cent (£791,281). Back in 1994, when Tony Blair became Labour leader, the unions accounted for just a third of Labour's annual income, but the party has become increasingly dependent on them as private donations have fallen.

While there is no comparison between the unions and the big-money donors the Tories rely on, some in Labour are rightly questioning whether it is healthy for the party to be so dependent on a few sources of income. With Labour refusing to pledge to reverse any of the coalition's spending cuts and supporting George Osborne's public sector pay freeze, one also expects that some in the union movement will begin to ask whether they are getting value for money.

The Tories' largest donor was City financier and Tory co-treasurer Michael Farmer, who gave £525,560 to the party, followed by Stanley Fink, the "godfather" of the hedge fund industry and the man who replaced Peter Cruddas as the party's principal treasurer in March, who donated £151,900.

Unite general secretary Len McCluskey, whose union accounted for 26 per cent (£791,281) of all donations to Labour between July and September. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

How Jim Murphy's mistake cost Labour - and helped make Ruth Davidson

Scottish Labour's former leader's great mistake was to run away from Labour's Scottish referendum, not on it.

The strange revival of Conservative Scotland? Another poll from north of the border, this time from the Times and YouGov, shows the Tories experiencing a revival in Scotland, up to 28 per cent of the vote, enough to net seven extra seats from the SNP.

Adding to the Nationalists’ misery, according to the same poll, they would lose East Dunbartonshire to the Liberal Democrats, reducing their strength in the Commons to a still-formidable 47 seats.

It could be worse than the polls suggest, however. In the elections to the Scottish Parliament last year, parties which backed a No vote in the referendum did better in the first-past-the-post seats than the polls would have suggested – thanks to tactical voting by No voters, who backed whichever party had the best chance of beating the SNP.

The strategic insight of Ruth Davidson, the Conservative leader in Scotland, was to to recast her party as the loudest defender of the Union between Scotland and the rest of the United Kingdom. She has absorbed large chunks of that vote from the Liberal Democrats and Labour, but, paradoxically, at the Holyrood elections at least, the “Unionist coalition” she assembled helped those parties even though it cost the vote share.

The big thing to watch is not just where the parties of the Union make gains, but where they successfully form strong second-places against whoever the strongest pro-Union party is.

Davidson’s popularity and eye for a good photo opportunity – which came first is an interesting question – mean that the natural benefactor in most places will likely be the Tories.

But it could have been very different. The first politician to hit successfully upon the “last defender of the Union” routine was Ian Murray, the last Labour MP in Scotland, who squeezed both the  Liberal Democrat and Conservative vote in his seat of Edinburgh South.

His then-leader in Scotland, Jim Murphy, had a different idea. He fought the election in 2015 to the SNP’s left, with the slogan of “Whether you’re Yes, or No, the Tories have got to go”.  There were a couple of problems with that approach, as one  former staffer put it: “Firstly, the SNP weren’t going to put the Tories in, and everyone knew it. Secondly, no-one but us wanted to move on [from the referendum]”.

Then again under different leadership, this time under Kezia Dugdale, Scottish Labour once again fought a campaign explicitly to the left of the SNP, promising to increase taxation to blunt cuts devolved from Westminster, and an agnostic position on the referendum. Dugdale said she’d be open to voting to leave the United Kingdom if Britain left the European Union. Senior Scottish Labour figures flirted with the idea that the party might be neutral in a forthcoming election. Once again, the party tried to move on – but no-one else wanted to move on.

How different things might be if instead of running away from their referendum campaign, Jim Murphy had run towards it in 2015. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

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