With David Miliband gone, the party’s talent pool has just become even shallower

He is indeed not coming back, and Labour has lost one of its brightest and best, writes the <em>New Statesman</em>'s editor Jason Cowley.

When I was working with David Miliband on a guest-edited issue of the New Statesman magazine last summer it was clear to me that he was restlessly in search of a new, demanding public role but did not yet feel able to tear himself away from the Commons. He still wanted to be a player in the game of politics. His wife Louise Shackleton is an American and I had been told by several of his close friends that she wanted David to accept one of the many opportunities that had been offered to him in the United States. She wanted him to move on, to accept that his future career lay outside the frustrations and anguish of Labour politics and outside England. She wanted to remove him from the incessant gossip and speculation of the Westminster village.

During the weeks we worked on the guest edit – with contributions from Hilary Clinton, Richard Branson, Kevin Rudd and Ed Miliband, it’s worth checking out, if you missed it – I tried on several occasions to bring the Miliband brothers together for an on-the-record conversation – “Miliband on Miliband” or “Miliband meets Miliband”. It would have offered public demonstration of their unity – and made a nice scoop for us. It never came close to happening.

David was already weary of what his friends call the “pantomime” of his relationship with his younger brother. There was no intervention he could make without it being perceived in some way as a challenge to or an attack on Ed’s leadership. When he wrote an essay for the New Statesman in March last year, in which he used the phrase “reassurance Labour” to caricature a complacent and reactionary faction in the party, the media response was predictable and hysterical. The Daily Telegraph’s front page splash about the intervention was headlined: “Brothers at war.” Good for the New Statesman. Bad for David Miliband.

Soon after I became NS editor I accompanied Miliband, the then Foreign Secretary, on an official trip to India. He spoke to me again and again over those five days in Delhi, Mumbai and rural Uttar Pradesh about how in politics one’s “motivations” must be understood. “In our first ten years in office we didn’t do a good enough job explaining the motivations for our policies," he told me. “This was the case with the most controversial things we did, with Iraq being an example: people weren't clear about our motivations. You've got to get to the stage where people can disagree with your policy but understand your motivation. If people disagree with your motivations you’re in a very divergent position.”

In truth, the “Reassurance Labour” essay was originally intended as a reply to something Roy Hattersley had published in an obscure policy journal. David told me he was working on the essay when we met one morning for coffee at Portcullis House, Westminster. I persuaded him to enlarge and popularize it and to publish it in the NS. Perhaps naively he was disappointed with how the essay was received. His “motivations” had once again been misunderstood, just as they were in late July and early August 2008 when, with Labour as many as 25 points behind in the polls and with MPs insurgent and openly discussing a leadership challenge, he was seen to have made a move against Gordon Brown. It never amounted to much. The leadership challenge that never was!

Earlier this year there was some chatter to the effect that the brothers were beginning to communicate better and that David might even be prepared to accept a role in the shadow cabinet. I never believed that would happen. He would not have wished to shadow William Hague having already served for three years as Foreign Secretary during which period he began to evolve a more multilateralist, less interventionist, post-Blair foreign policy.

The role of shadow chancellor interested him but he knew Ed Balls would not be moved from that position before the general election. So where did that leave him? What could he do? How best could he contribute without being seen actively to undermine his brother? And if not now, when?

A confidante of the brothers told me a few weeks ago that relations between them had not improved. “David is not even at first base in forgiving Ed, and Ed still doesn’t understand – or is in denial about – what he did to David,” I was told. “There is no way David is coming back.”

Now we have had official confirmation that David Miliband is leaving politics and the country. He is indeed not coming back, his motivations misunderstood to the very end. Labour has lost one of its brightest and best. The party’s talent pool has just become even shallower.

Photograph: Getty Images.

Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR