Why Labour is now offering MPs a free vote on gay marriage

The party decided to hold a free vote after the government agreed to allow ceremonies in religious buildings.

Ahead of today's statement by equalities minister Maria Miller on gay marriage, there has been some confusion over Labour's position. The party previously indicated that it would impose a three-line whip on its MPs (in favour of the bill), but now appears likely to offer a free vote. However, as one MP explained to me, there's been no U-turn. "The three-line whip only applied to civil ceremonies. Now the government has agreed to allow gay marriages in religious buildings, we will hold a free vote."

Although less numerous than those in the Conservatives, there are some in Miliband's party who are hostile towards gay marriage. Roger Godsiff, the MP for Birmingham Hall Green, has said he will oppose any law "redefining the current definition of marriage", while his parliamentary colleague Austin Mitchell tweeted yesterday: "Gay marriage is neither urgent nor important.It's also a moral issue therefore a free vote on which basis it won't pass". Three other Labour MPs, Jim Dobbin, Joe Benton and Mary Glindon, have signed the Coalition For Marriage petition against the proposal.

The Lib Dems have yet to say whether their MPs will be whipped in favour of gay marriage, but it's worth noting that Nick Clegg has previously criticised David Cameron's decision to offer Conservative MPs a free vote. He told The Andrew Marr Show in May: "My view is that in the same way that the civil partnerships legislation that was introduced under Labour was a whipped vote, I personally don’t think this is something that should be subject to a great free-for-all because we’re not asking people to make a decision of conscience about religion."

Update: The Coalition for Equal Marriage has pointed me towards three other Labour MPs who oppose gay marriage: Brian Donohoe, Paul Murphy, and Stephen Pound.

Ed Miliband records a video for the Out4Marriage campaign in favour of equal marriage.

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.