What Ed Miliband can learn from Harold Wilson about an EU referendum

It is a question of when, not if, Miliband will offer an EU referendum. Here's what he can learn from his predecessor-but-seven.

Ed Miliband can perhaps be forgiven for his reluctance to leap in and commit a Labour government to holding an in/out referendum on Britain’s membership of the EU. After all, in a speech to the CBI last November he warned that fellow EU countries are "deeply concerned" because they sense Britain is "heading to the departure lounge". But realpolitik now makes it matter of when and how he follows David Cameron’s lead in calling for a referendum, not if.

When that moment comes, he could do worse than to learn a thing or two from his predecessor-but-seven, Harold Wilson. As prime minister, Wilson did what Cameron now promises to do: renegotiate the terms of Britain’s membership and then hold a referendum on the outcome. Like Cameron today, his referendum was about fudging internal party divisions as he took a seemingly outrageous chance with the country’s future strategic interests. But Wilson – who won more general elections (four) than any other 20th century prime minister – was no slouch when it came to campaigning and his approach to the 1975 referendum bears a number of useful lessons for Miliband now.

1. A referendum can be cathartic. In his 1976 book The Governance of Britain, Wilson wrote that the referendum "ended once and for all the previous doubts about the support of the British people for membership of the European Community." It’s a high-wire act, but the potential reward for winning a referendum on Europe could be to bring to an end to decades of sniping and foot-dragging about Europe. And it would set up Ed as a leader prepared to lead boldly.

2. Hold a vote quickly. Wilson’s famous dictum that "a week is a long time in politics is especially insightful when it comes to holding referendums. It is wise to move quickly before other problem sget in the way and the vote becomes a stick to beat a mid-term government. The 1975 referendum was held just nine months after the October 1974 General Election on 6 June.

3. A win is a win: don’t set a threshold for support or turnout. The 1975 referendum was passed with 67 per cent support on a 65 per cent turnout. However Labour’s disastrous decision just four years later to impose a condition that 40 per cent of Scotland's total registered electorate had to vote in favour during the referendum on a Scottish parliamentsaw the vote fall short (just 52 per cent voted yes on a 64 per cent turnout). This precipitated the collapse of Jim Callaghan’s Labour government.

4. Public opinion will shift. Just as now, a majority of people in 1975 were sceptical about European membership at the start of the referendum campaign. But as Peter Kellner points out, now, as in 1975, opinion "is not completely fixed"; with the renegotiated terms providing a potentially useful new element which can be used to undermine existing hostility.

5. Labour is more united now than it was then. A referendum is often a time for friends to agree to disagree. Wilson suspended the cabinet’s collective responsibility courtesy of an "agreement to differ". He had huge political figures like Michael Foot, Tony Benn, Peter Shore and Barbara Castle ranged against him and much of the trade union movement hostile to Europe. Miliband is far more fortunate; divisions within the Labour tribe about Europe are puny compared to those confronting Wilson in the 1970s. Miliband’s problem is not about getting colleagues to vote yes, but how to keep them aligned as he choreographs a change of policy to now support a referendum.

6. A referendum forces the political centre ground to co-operate. Wilson, Roy Jenkins, Denis Healey and Jim Callaghan – the big beasts of the Labour government – were united in favour of a 'yes' vote in 1975. As were much of the Conservative and Liberal parties. Indeed, one opposition figure was particularly forthright: "If we fail and the British people vote ‘no’ to the European Community, they will read how there was a defeat for co-operation between nations…They will read how extremism won over commonsense."

So said Margaret Thatcher.

Harold Wilson's 1975 referendum on Britain's EEC membership ended in a 67-33 vote in favour of staying in.

Kevin Meagher is associate editor of Labour Uncut and a former special adviser at the Northern Ireland office. 

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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