Mandelson takes a swipe back at McCluskey

Labour peer says the Unite head is "the man who reminds us of where we came from and what we left behind" after McCluskey's attack on him in the NS.

In my interview with him for the NS, Len McCluskey reserved some of his fiercest barbs for Peter Mandelson. With particular reference to the Labour peer, the Unite general secretary said of the Blairite grandees who have warned Ed Miliband not to "tack left":

It may be easy for these people, who are sitting with the huge sums of money that they’ve amassed now - they’ve done pretty well out of it, remember it was Mandelson who said he was comfortable about the filthy rich, presumably that’s because he wanted to be one of the filthy rich. But the fact is that under Labour the gap between rich and poor increased...that’s a stain on what Labour stands for.

Unsurprisingly, Mandelson felt the urge to respond. A Labour source informs me that the former Business Secretary declared at last night's Friends of Labour Students dinner that McCluskey was "the man who reminds us of where we came from and what we left behind". 

But Mandelson's riposte is mild compared to that issued by Miliband, who accused McCluskey of a "reprehensible" and "disloyal" attempt to divide the party. 

McCluskey, whose union helped secure the Labour leadership for Miliband in 2010, told me that Miliband would be "defeated" and "cast into the dustbin of history" if he was "seduced" by "the Jim Murphys and the Douglas Alexanders". Of Liam Byrne, the shadow and work pensions secretary, he said: "Liam Byrne certainly doesn’t reflect the views of my members and of our union’s policy, I think some of the terminology that he uses is regrettable and I think it will damage Labour. Ed’s got to figure out what his team will be."

The irony of Miliband's denunciation of McCluskey is that the Unite head has rarely been more well disposed to the Labour leader. McCluskey told me that he thought Miliband was doing "a very good job of holding the party together" and that while there were "disgreements" between the pair, he was happy with the course he had taken since 2010. 

But it is precisely for this reason that Miliband felt it necessary to rebuke the Unite head so swiftly and explicitly. He couldn't allow the impression to form that he was willing to tolerate McCluskey's attack on the "Blairite" shadow cabinet ministers and the suggestion that they should either be ignored or sacked. As I noted in the piece, those associated with Blair are troubled by what they regard as Unite's excessive influence over European and parliamentary candidate selections. Rather than rejecting claims that the union had "stitched up" selections, McCluskey suggested to me that he was simply beating the Blairites at their own game. 

The truth is that this is a process that was set up by Tony Blair, and the right-wing and organisations like Progress have had it their own way for years and years and have seen nothing wrong it.
 
Because we're having some success, suddenly these people are crying foul. Well I’m delighted to read it. I’m delighted when Tony Blair and everyone else intervenes because it demonstrates that we are having an impact and an influence and we’ll continue to do so.
After David Miliband's departure for New York, the Blairites are increasingly anxious about their standing in the party. Miliband's intervention was an important signal that there are lines he will not allow McCluskey to cross. 
Former Labour business secretary Peter Mandelson speaks during an interview at the foreign correspondents club in Hong Kong. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman