Miliband promises to keep Cameron's EU referendum lock

Labour leader says he would not reverse measure previously denounced by his party as a "dog's breakfast" and a "political gesture".

Appearing on the Today programme this morning, Ed Miliband was asked the question that will be put to him repeatedly between now and the general election: will you offer the British people a referendum on the EU? He responded by saying that an in/out referendum now would be damaging to the UK's interests but went on to note that the coalition's European Union Bill meant a public vote would be triggered whenever there was a transfer of powers to Brussels. Significantly, for the first time, he said that Labour did not propose "repealing" the legislation. When the bill was debated by parliament in 2011, Labour denounced it as "unnecessary", a "dog's breakfast" and a "political gesture" to appease Tory backbenchers (it subsequently abstained from voting). But Miliband has now accepted that his party is in no position to oppose the measure, designed to safeguard UK sovereignty.

After David Cameron yesterday accused Labour of planning to take Britain into the single currency, Miliband also gave his clearest statement yet on euro membership. "Britain's not going to be joining the euro, it won't be joining the euro if I'm Prime Minister," he said. As Cameron is fond of pointing out, the Labour leader once previously remarked that whether or not the UK joined the euro would depend on "how long I'm Prime Minister for".

Repeatedly asked whether he favoured a "looser European Union", Miliband struggled to offer a satisfactory answer. He said that we were moving to a "more flexible" EU but argued that this was not the same thing as "a looser one". For now, Miliband rightly emphasises that the priority is to move Europe away from austerity and towards growth, but he will need a much more detailed answer before the election.

Intriguingly, then, Miliband said that he was willing to consider restricting benefits for EU immigrants. He told Jim Naughtie: "Of course that's an issue that should be looked at, the length of entitlement to benefits and how quickly can get them. All of these issues should be on the table."

The Tories will hope to use this to begin a political arms race that only one side can win.

Labour leader Ed Miliband said that an in/out referendum on the EU would cause dangerous uncertainty. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty Images.
Show Hide image

Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.