Clegg aids Labour's tax attack on the Tories

The Deputy PM went further than before and accused his coalition partners of turning "a blind eye to the super wealthy" by opposing a mansion tax.

The Tories and the Lib Dems have never sought to hide their differences over a mansion tax. But Nick Clegg went further than ever last night when he accused his coalition partners of "turning a blind eye to the super wealthy". He told ITV News

The Conservatives need to speak for themselves. I for the life of me don't understand why the Conservatives think it's ok that an oligarch can buy a palace in Regent's Park for tens of millions of pounds and pay the same council tax as a three-bedroom family house in Lewisham.

That is just unfair. We can't keep turning a blind eye to the super wealthy basically being taxed the same way on their properties as hard working families across the country.

Clegg's words prompt the question of whether the Lib Dems will line up with Labour if and when Ed Miliband succeeds in forcing a Commons vote on a mansion tax. Vince Cable has suggested that his party will vote in favour of the opposition motion provided that it is not tied to the reintroduction of a 10p tax rate (which the Lib Dems oppose) and Clegg similarly indicated that it would depend on the wording. 

Neither Vince nor I know what will be put before us so we can't of course determine in advance how we would vote.

But of course the Liberal Democrats for a long time have been the leading advocate of greater fairness in tax.

I've been told by a Labour source that the motion will not include a commitment to introduce a 10p tax band in order to maximise the chances of support from the Lib Dems. The party sees the vote as a chance to show how the Tories are on the wrong side of the new tax divide in British politics. Miliband believes that the Conservatives' decision to write privately to their donors soliciting funds to combat a "homes tax" leaves them particularly vulnerable to the charge that they are the party of the rich. 

The irony is that before the last Budget, George Osborne, the man now leading the charge against the tax, considered introducting two or three new higher council tax bands on houses worth more than £1m, a measure that the Lib Dems could have presented as a mansion tax. But this option was ruled out after David Cameron's shire Tory instincts asserted themselves and the PM personally vetoed the proposal. With the Tories now having ruled out anything resembling a mansion tax, the Lib Dems see no reason to go easy on their coalition partners.  

Nick Clegg with Ed Miliband at Buckingham Palace to mark the Duke of Edinburgh's 90th birthday on June 30, 2011 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Why isn't Labour putting forward Corbynite candidates?

Despite his successes as a candidate, the organisational victories have gone the way of Corbyn's opponents. 

The contest changes, but the result remains the same: Jeremy Corbyn’s preferred candidate defeated in a parliamentary selection. Afzhal Khan is Labour’s candidate in the Manchester Gorton by-election and the overwhelming favourite to be the seat’s next MP.

Although Khan, an MEP, was one of  the minority of Labour’s European MPs to dissent from a letter from the European parliamentary Labour party calling for Jeremy Corbyn to go in the summer of 2016, he backed Andy Burnham and Tom Watson in 2015, and it is widely believed, fairly or unfairly, that Khan had, as one local activist put it, “the brains to know which way the wind was blowing” rather than being a pukka Corbynite.

For the leader’s office, it was a double defeat;  their preferred candidate, Sam Wheeler, was kept off the longlist, when the party’s Corbynsceptics allied with the party’s BAME leadership to draw up an all ethnic minority shortlist, and Yasmine Dar, their back-up option, was narrowly defeated by Khan among members in Manchester Gorton.

But even when the leadership has got its preferred candidate to the contest, they have been defeated. That even happened in Copeland, where the shortlist was drawn up by Corbynites and designed to advantage Rachel Holliday, the leader’s office preferred candidate.

Why does the Labour left keep losing? Supporters combination of bad luck and bad decisions for the defeat.

In Oldham West, where Michael Meacher, a committed supporter of Jeremy Corbyn’s, was succeeded by Jim McMahon, who voted for Liz Kendall, McMahon was seen to be so far ahead that they had no credible chance of stopping him. Rosena Allin-Khan was a near-perfect candidate to hold the seat of Tooting: a doctor at the local hospital, the seat’s largest employer, with links to both the Polish and Pakistani communities that make up the seat’s biggest minority blocs.  Gillian Troughton, who won the Copeland selection, is a respected local councillor.

But the leadership has also made bad decisions, some claim.  The failure to get a candidate in Manchester Gorton was particularly egregious, as one trade unionist puts it: “We all knew that Gerald was not going to make it [until 2020], they had a local boy with good connections to the trade unions, that contest should have been theirs for the taking”. Instead, they lost control of the selection panel because Jeremy Corbyn missed an NEC meeting – the NEC is hung at present as the Corbynsceptics sacrificed their majority of one to retain the chair – and with it their best chance of taking the seat.

Others close to the leadership point out that for the first year of Corbyn’s leadership, the leader’s office was more preoccupied with the struggle for survival than it was with getting more of its people in. Decisions in by-elections were taken on the hop and often in a way that led to problems later down the line. It made sense to keep Mo Azam, from the party’s left, off the shortlist in Oldham West when Labour MPs were worried for their own seats and about the Ukip effect if Labour selected a minority candidate. But that enraged the party’s minority politicians and led directly to the all-ethnic-minority shortlist in Manchester Gorton.

They also point out that the party's councillor base, from where many candidates are drawn, is still largely Corbynsceptic, though they hope that this will change in the next round of local government selections. (Councillors must go through a reselection process at every election.)

But the biggest shift has very little to do with the Labour leadership. The big victories for the Labour left in internal battles under Ed Miliband were the result of Unite and the GMB working together. Now they are, for various reasons, at odds and the GMB has proven significantly better at working shortlists and campaigning for its members to become MPs.  That helps Corbynsceptics. “The reason why so many of the unions supported Jeremy the first time,” one senior Corbynite argues, “Is they wanted to move the Labour party a little bit to the left. They didn’t want a socialist transformation of the Labour party. And actually if you look at the people getting selected they are not Corbynites, but they are not Blairites either, and that’s what the unions wanted.”

Regardless of why, it means that, two years into Corbyn’s leadership, the Labour left finds itself smaller in parliament than it was at the beginning.  

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