Why the Lib Dems are confident they can win the Eastleigh by-election

Lib Dem activists point out that the party has gained seats in recent local elections.

Conservative MPs are already talking up their party's chances in the Eastleigh by-election triggered by Chris Huhne's resignation, with one, Alec Shelbrooke, describing it as "an early opportunity to exact revenge on the Lib Dems over boundaries". The Tories have no intention of going easy on their coalition partner; this is a must-win seat for them. 

Given how poorly the Lib Dems are polling nationally and the slimness of their majority (3,864), it's unsurprising that many expect a Tory victory. But Lib Dem activists are confident that they can hang on. They point out that the party has actually gained seats in recent local elections, increasing its majority on Eastleigh Borough Council from 34 seats to 36 in May 2012 (the Lib Dems hold 40 to the Tories' four). The Lib Dems, who plan to treat the next general election as 57 by-elections, have long argued that they will lose fewer seats than expected in 2015 because their vote is holding up in key local strongholds. The by-election will be an early test of this claim. 

It is no less of a test for the Tories, whose hopes of winning a majority in 2015 depend on them taking a  large number of seats off the Lib Dems. The party has included 20 Lib Dem MPs on its 2015 target list of 40 in the belief that they will prove easier to dislodge than their Labour counterparts. Were the list purely based on the swing required, only nine would appear. But if the Tories fail to win Eastleigh, even after the sitting MP has been forced to resign in disgrace, a Conservative majority in 2015 will begin to look impossible. 

The Liberal Democrats increased their majority on Eastleigh Borough Council from 36 seats to 38 in May 2012. 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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