Labour will listen and learn but Eastleigh was a disaster for David Cameron

It will terrify Cameron that even after making so many concessions to the right, the Tories were still beaten by UKIP.

No one who saw the scrum of photographers surrounding the Tories' defeated Eastleigh candidate Maria Hutchings, could have been in any doubt about how significant a catastrophe Thursday's by-election defeat was for David Cameron. In assessing the significance and cause of the Conservatives' demise it's worth reminding ourselves of the lessons that emerge from this election and what it means for One Nation Labour.

The Eastleigh by-election was a tough fight for the dedicated Labour activists who worked so hard over the past three weeks for John O'Farrell. Any by-election in which you start in third is a tough ask, particularly when it's your 258th target seat. This was a very different seat from Corby, where we captured a key marginal from the Conservatives. John O'Farrell fought the odds in an excellent campaign and his result bears comparison with by-elections past. I want to thank everybody who made the trip to deepest Hampshire to help him. It says much about the enthusiasm for John's candidacy and Ed Miliband's One Nation message that people came from across Britain (and particularly the south east) to support the campaign.

The real story of yesterday's result, however, is the failure of David Cameron's Conservatives. The conditions could not have been more favourable for them to beat the Lib Dems - this was their 16th most winnable Liberal Democrat seat. The by-election was triggered by Chris Huhne standing down in disgrace after pleading guilty to a criminal offence. Coming third behind the Liberal Democrats and UKIP was clearly a disaster for the Conservatives and their hopes at the next general election in 2015.

This by-election was a test of Cameron's judgement and on that count he failed. It will terrify him that, after making so many concessions to those on the right of his party by offering an EU referendum, a campaign focused on immigration and a candidate who - horribly exposed under the scrutiny of a by-election - wanted to leave the EU and opposed same sex marriage, he was still beaten into third place by UKIP. In the battle on the ground, the small band of Conservative foot soldiers appeared out of touch with voters on issues like living standards and fairness.

However, whilst our result stands favourable comparison with many by-elections of the past in seats where parties have started as long shots, this result shows that we need to redouble our efforts to reach out to every part of the country, including areas where Labour hasn't traditionally been strong.

Labour listened to voters on the doorstep, and we will learn from what they told us. All mainstream political parties need to take seriously the concerns people have about the country, whether it is the cost of living, fairness or immigration. Under Ed Miliband's leadership, Labour is determined to meet those concerns.

But we should be in no doubt - this was a disaster for David Cameron. If he can't win a seat like Eastleigh, the Tories will be very worried that he can't win the other seats they need at the next general election in 2015.

Toby Perkins MP was Labour’s campaign manager in Eastleigh

David Cameron leaves 10 Downing Street in London on 27 February, 2013. Photograph: Getty Images.

Toby Perkins is Labour MP for Chesterfield and shadow minister for small business

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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