Would Cameron allow Tory cabinet ministers to vote for EU withdrawal?

Faced with a split party, Cameron could learn from Harold Wilson and suspend collective cabinet responsibility for the referendum campaign.

Britain would not "collapse" if it left the EU, David Cameron declared in his interview on the Today programme this morning. It was a concession to those in his cabinet who believe that the UK should make it clear that it is prepared to withdraw if it fails to secure significantly changed terms of membership. One of those ministers, Eric Pickles, told Radio 5 Live's Pienaar's Politics last night: "If it's in our firm national interest that we should remain in the EU – and I sincerely hope that is the case – then we should stay. But we shouldn't stay at any price." Michael Gove has similarly argued that Britain must threaten to leave the EU in order to achieve a successful renegotiation.

The danger for Cameron (who remains a genuine supporter of British membership) is that unless he is able to repatriate substantial powers from Brussels, some cabinet ministers will conclude that EU membership is no longer in Britain's interests. In this week's Spectator, James Forsyth reported that there are "at least nine Cabinet members" who would be inclined to vote "out" in a referendum if Cameron only proves able to secure minor concessions such as the exemption of the NHS from the Working Time Directive and restrictions on immigration from the EU. Confronted by what Forsyth says would be the biggest Conservative split since the repeal of the Corn Laws, how could Cameron respond?

It is worth recalling how the last (and only) government to hold an EU referendum - Harold Wilson's Labour administration in 1975 - dealt with a comparable problem. With europhiles like Roy Jenkins on one side and eurosceptics like Tony Benn on the other, Wilson took the unprecedented step of suspending collective cabinet responsibility in order to allow his ministers to support either side in the campaign. Seven Labour cabinet ministers - Benn, Barbara Castle, Michael Foot, William Ross, Peter Shore John Silkin, Eric Varley - went on to unsuccessfully argue for withdrawal from the EEC (the vote was 67-33 in favour of membership).

As I wrote earlier, it is wrong to assume that a referendum is inevitable when Cameron's strategy is entirely dependent on a Conservative majority at the next election (an outcome that looks increasingly unlikely). But on the assumption that one does take place, the most elegant way for Cameron to respond to a split party may be to invoke the Wilson precedent.

Iain Duncan Smith, who voted against the Maastricht Treaty that created the EU, is one cabinet minister likely to favour withdrawal. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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