Exclusive: Blair warns Miliband: offer answers, not outrage

The former prime minister says Labour must be more than "fellow travellers in sympathy" and warns it not to "tack left on tax and spending".

In his statement on Margaret Thatcher's death earlier this week, Ed Miliband pointedly noted that "she moved the centre ground". The Labour leader is aiming to achieve a similar feat. Indeed, he belives the centre has already moved to the left since the financial crisis, creating the space for a more unambiguously social democratic approach. It is a notion that Tony Blair fundamentally rejects. In his most significant intervention in domestic politics since leaving office, the former prime minister writes in the centenary edition of the New Statesman: "The paradox of the financial crisis is that, despite being widely held to have been caused by under-regulated markets, it has not brought a decisive shift to the left. But what might happen is that the left believes such a shift has occurred and behaves accordingly." 

Following last week's fractious debate on welfare, Blair says that Labour must be "the seekers after answers, not the repository for people's anger". He writes: "In the first case, we have to be dispassionate even when the issues arouse great passion. In the second case, we are simple fellow-travellers in sympathy; we are not leaders. And in these times, above all people want leadership".

Rather than retreating to its ideological "comfort zone", Blair argues that Labour must remain on "a centre ground that is ultimately both more satisfying and more productive for party and country". In a signal of his disapproval at some of Miliband's recent pronouncements, he writes that Labour must not "tack right on immigration and Europe, and tack left on tax and spending". Miliband has argued that the last Labour government was wrong not to impose transitional controls on migration from eastern Europe and has called for the introduction of a "mansion tax" on properties worth more than £2m. 

Blair writes: "The ease with which it [Labour] can settle back into its old territory of defending the status quo, allying itself, even anchoring itself, to the interests that will passionately and often justly oppose what the government is doing, is so apparently rewarding, that the exercise of political will lies not in going there, but in resisting the temptation to go there." 

Unlike some associated with New Labour, Blair argues that the party has been right to reject Conservative claims that it "created" the crisis by overspending. He points out that the current structural deficit was under 1 per cent of GDP in 2007-08 and that that public debt was significantly below 1997 levels at the time of the crash. "Over the whole 13 years, the debt-to-GDP ratio was better than the Conservative record from 1979-97." But he warns that now the crash has occurred "no one can get permission to govern unless they deal with its reality". 

Blair goes on to pose seven questions that he says are examples of those Labour must answer if it is to address the need for "fundamental reform of the post-war state". In a sign of how he would have approached last week's debate on welfare differently, he says that the party should look at the "right balance between universal and means-tested help for pensioners" and ask what is "driving the rise in housing benefit spending". He adds: "If it is the absence of housing, how do we build more?" Blair also urges the party to explore how it can focus on "the really hard core of socially excluded families, separating them from those who are just temporarily down on their luck". In 2011, the coalition launched a scheme led by Louise Casey, the former head of Blair's Respect Task Force, aimed at helping England's "120,000 most troubled families". 

On public services, Blair says that Labour should ask how it can take "the health and education reforms of the last Labour government to a new level, given the huge improvement in results they brought". Blair has recently praised Michael Gove's free schools as "a great idea" and has accused the teaching unions of obstructing "necessary educational change". In addition, he calls for Labour to explore how "developments around DNA" can help reduce crime and how technology can "cut costs and drive change in our education, health, crime and immigration systems". 

Hinting at his frustration at the party's perceived lack of policy development, Blair writes: "There is no need to provide every bit of detail. People don't expect it. But they want to know where we're coming from because that is a clue as to where we would go, if elected." The danger for Labour, he adds, is of "tactical victories that lead to strategic defeats".

Miliband, who has consistently spoken of the need to move on from New Labour, is likely to be unfazed by Blair's intervention but the former Prime Minister's words will reinforce the concern among some in the party that Labour risks being defined as a party of opposition, rather than  a government-in-waiting, as it continues its crusade against austerity.

Tony Blair argues in the New Statesman that the financial crisis "has not brought a decisive shift to the left". Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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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