Inside Miliband's "one nation" project

The Labour leader's chief strategist Stewart Wood on the inspiration he takes from Thatcher and the five principles behind "one nation".

I've just returned from Queen Mary, University of London, where some of Labour's brightest minds, including Jon Cruddas, Jonathan Rutherford and Maurice Glasman, are meeting for a one day conference on "The Politics of One Nation Labour" (the event is being live blogged by Labour List). 

Stewart Wood, Ed Miliband's consigliere, who sits in the shadow cabinet as minister without portfolio, opened proceedings and drew laughter when he revealed that he'd just bought a copy of Hayek's The Road to Serfdom (a favourite text of Margaret Thatcher's). One of the main reasons he entered politics, he said, was Thatcher and her belief that "ideas could be transformational". As Miliband has hinted in his statements since her death, he and his allies take inspiration from how she broke with the political and economic consensus of the time and established a new governing philosophy (although one might pause to note the irony of a Thatcher-esque project that describes itself as "one nation"). 

Wood remarked that Thatcher's achievement lay in spotting "the exhaustion of an old settlement", adding that the public would reward those who did the same today. Miliband's one nation approach, he said, was a "profound challenge" to the consensus that took root in 1979. 

He went on to outline the five main principles behind "one nation" Labour:

1. A different kind of economy

2. A determination to tackle inequality

3. An emphasis on responsibility (at the top and the bottom)

4. Protecting the elements of our common life

5. Challenging the ethics of neoliberalism

What does all this mean for policy? Today, Wood emphasised what he calls a "supply side revolution from the left": reforming the banking system so that it supports, rather than hinders, long-term growth and an active industrial policy; working with employers to build technical education and "filling out the middle" of our "hourglass economy" by expanding use of the living wage. Without uttering the dread word "predistribution", he spoke of building an economy in which greater equality is "baked in", not "bolted on afterwards". Rather than merely ameliorating inequalities through the tax and benefits system (although Wood emphasised that redistribution would remain an important part of the social democratic arsenal), the state should act to ensure that they do not arise in the first place.

On social security, he spoke, as other Labour figures have done, of strengthening the contributory principle, so that there is a clearer relationship between what people put in and what they get out. The hope is that this would revive public confidence in the welfare state and Wood also pointed out that contributory and universal systems had proved less vulnerable to cuts than those based on means-testing. As I noted in my recent piece on why Labour must defend universal pensioner benefits, history shows that a narrower welfare state soon becomes a shallower one as the politically powerful middle classes lose any stake in the system and the poor are stigmatised as "dependent". The "paradox of redistribution", as social scientists call it, is that provision for some depends on provision for all.

Wood concluded by discussing the three main challenges facing one nation Labour: the fiscal constraints imposed by a lack of growth; building new institutions and restoring faith in politics. The biggest obstacle to change, he said, was not hostility to Labour but the belief that politicians were "all the same" and that "none of you can change anything". He observed that while the right "thrives on the pessimism that nothing can change", the left is "starved of oxygen". The greatest challenge for Labour, then, is to attack the coalition's failures while simultaneously persuading voters that they were far from inevitable. 

Ed Miliband addresses workers at Islington Town Hall on November 5, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Former Irish premier John Bruton on Brexit: "Britain should pay for our border checks"

The former Taoiseach says Brexit has been interpreted as "a profoundly unfriendly act"

At Kapıkule, on the Turkish border with Bulgaria, the queue of lorries awaiting clearance to enter European Union territory can extend as long as 17km. Despite Turkey’s customs union for goods with the bloc, hauliers can spend up to 30 hours clearing a series of demanding administrative hoops. This is the nightmare keeping former Irish premier John Bruton up at night. Only this time, it's the post-Brexit border between Northern Ireland and the Republic, and it's much, much worse.   

Bruton (pictured below), Taoiseach between 1994 and 1997, is an ardent pro-European and was historically so sympathetic to Britain that, while in office, he was pilloried as "John Unionist" by his rivals. But he believes, should she continue her push for a hard Brexit, that Theresa May's promise for a “seamless, frictionless border” is unattainable. 

"A good example of the sort of thing that might arise is what’s happening on the Turkish-Bulgarian border," the former leader of Ireland's centre-right Fine Gael party told me. “The situation would be more severe in Ireland, because the UK proposes to leave the customs union as well."

The outlook for Ireland looks grim – and a world away from the dynamism of the Celtic Tiger days Bruton’s coalition government helped usher in. “There will be all sorts of problems," he said. "Separate permits for truck drivers operating across two jurisdictions, people having to pay for the right to use foreign roads, and a whole range of other issues.” 

Last week, an anti-Brexit protest on the border in Killeen, County Louth, saw mock customs checks bring traffic to a near standstill. But, so far, the discussion around what the future looks like for the 260 border crossings has focused predominantly on its potential effects on Ulster’s fragile peace. Last week Bruton’s successor as Taoiseach, Bertie Ahern, warned “any sort of physical border” would be “bad for the peace process”. 

Bruton does not disagree, and is concerned by what the UK’s withdrawal from the European Convention on Human Rights might mean for the Good Friday Agreement. But he believes the preoccupation with the legacy of violence has distracted British policymakers from the potentially devastating economic impact of Brexit. “I don’t believe that any serious thought was given to the wider impact on the economy of the two islands as a whole," he said. 

The collapse in the pound has already hit Irish exporters, for whom British sales are worth £15bn. Businesses that work across the border could yet face the crippling expense of duplicating their operations after the UK leaves the customs union and single market. This, he says, will “radically disturb” Ireland’s agriculture and food-processing industries – 55 per cent of whose products are sold to the UK. A transitional deal will "anaesthetise" people to the real impact, he says, but when it comes, it will be a more seismic change than many in London are expecting. He even believes it would be “logical” for the UK to cover the Irish government’s costs as it builds new infrastructure and employs new customs officials to deal with the new reality.

Despite his past support for Britain, the government's push for a hard Brexit has clearly tested Bruton's patience. “We’re attempting to unravel more than 40 years of joint work, joint rule-making, to create the largest multinational market in the world," he said. It is not just Bruton who is frustrated. The British decision to "tear that up", he said, "is regarded, particularly by people in Ireland, as a profoundly unfriendly act towards neighbours".

Nor does he think Leave campaigners, among them the former Northern Ireland secretary Theresa Villiers, gave due attention to the issue during the campaign. “The assurances that were given were of the nature of: ‘Well, it’ll be alright on the night!’," he said. "As if the Brexit advocates were in a position to give any assurances on that point.” 

Indeed, some of the more blimpish elements of the British right believe Ireland, wedded to its low corporate tax rates and east-west trade, would sooner follow its neighbour out of the EU than endure the disruption. Recent polling shows they are likely mistaken: some 80 per cent of Irish voters say they would vote to remain in an EU referendum.

Irexit remains a fringe cause and Bruton believes, post-Brexit, Dublin will have no choice but to align itself more closely with the EU27. “The UK is walking away,” he said. “This shift has been imposed upon us by our neighbour. Ireland will have to do the best it can: any EU without Britain is a more difficult EU for Ireland.” 

May, he says, has exacerbated those difficulties. Her appointment of her ally James Brokenshire as secretary of state for Northern Ireland was interpreted as a sign she understood the role’s strategic importance. But Bruton doubts Ireland has figured much in her biggest decisions on Brexit: “I don’t think serious thought was given to this before her conference speech, which insisted on immigration controls and on no jurisdiction for the European Court of Justice. Those two decisions essentially removed the possibility for Ireland and Britain to work together as part of the EEA or customs union – and were not even necessitated by the referendum decision.”

There are several avenues for Britain if it wants to avert the “voluntary injury” it looks set to inflict to Ireland’s economy and its own. One, which Bruton concedes is unlikely, is staying in the single market. He dismisses as “fanciful” the suggestions that Northern Ireland alone could negotiate European Economic Area membership, while a poll on Irish reunification is "only marginally" more likely. 

The other is a variation on the Remoaners’ favourite - a second referendum should Britain look set to crash out on World Trade Organisation terms without a satisfactory deal. “I don’t think a second referendum is going to be accepted by anybody at this stage. It is going to take a number of years,” he said. “I would like to see the negotiation proceed and for the European Union to keep the option of UK membership on 2015 terms on the table. It would be the best available alternative to an agreed outcome.” 

As things stand, however, Bruton is unambiguous. Brexit means the Northern Irish border will change for the worse. “That’s just inherent in the decision the UK electorate was invited to take, and took – or rather, the UK government took in interpreting the referendum.”