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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David Cameron shows Labour how to do it

Leftwing rhetoric masked rightwing reality in Cameron's conference speech.

“The tanks are in the kitchen,” was the gloomy verdict of one Labour staffer to a speech in which the Prime Minister roamed freely into traditional left-wing territory.

But don’t be fooled: David Cameron is still the leader of an incredibly right-wing government for all the liberal-left applause lines.

He gave a very moving account of the difficulties faced by careleavers: but it is his government that is denying careleavers the right to claim housing benefit after they turn 22.

He made a powerful case for expanding home ownership: but his proposed solution is a bung for buy-to-let boomers and dual-earner childless couples, the only working-age demographic to do better under Cameron than under Labour.

On policy, he made just one real concession to the left: he stuck to his guns on equal rights and continued his government’s assault on the ridiculous abuse of stop-and-search. Neither of these are small issues, and they are a world away from the Conservative party before Cameron – but they also don’t cost anything.

In exchange for a few warm words, Cameron will get the breathing space to implement a true-blue Conservative agenda, with an ever-shrinking state for most of Britain, accompanied by largesse for well-heeled pensioners, yuppie couples, and small traders.

But in doing so, he gave Labour a lesson in what they must do to win again. Policy-wise,it is Labour – with their plans to put rocketboosters under the number of new housing units built – who have the better plan to spread home ownership than Cameron’s marginal solutions. But last week, John McDonnelll focussed on the 100,000 children in temporary accomodation. They are undoubtedly the biggest and most deserving victims of Britain’s increasingly dysfunctional housing market. But Labour can’t get a Commons majority – or even win enough seats to form a minority government – if they only talk about why their policies are right for the poor. They can’t even get a majority of votes from the poor that way.

What’s the answer to Britain’s housing crisis? It’s more housebuilding, including more social housing. Labour can do what Cameron did today in Manchester – and deliver radical policy with moderate rhetoric, or they can lose.

But perhaps, if Cameron feels like the wrong role model, they could learn from a poster at the People’s History Museum, taken not from Labour’s Blairite triumphs or even the 1960s, but from 1945: “Everyone – yes, everyone – will be better off under a Labour government”.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.