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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Amber Rudd's report on the benefits of EU immigration is better late than never

The study will strengthen the case for a liberal post-Brexit immigration system. 

More than a year after vowing to restrict EU immigration, the government has belatedly decided to investigate whether that's a good idea. Home Secretary Amber Rudd has asked the independent Migration Advisory Committee to report on the costs and benefits of free movement to the British economy.

The study won't conclude until September 2018 - just six months before the current Brexit deadline and after the publication of the government's immigration white paper. But in this instance, late is better than never. If the report reflects previous studies it will show that EU migration has been an unambiguous economic benefit. Immigrants pay far more in tax than they claim in benefits and sectors such as agriculture, retail and social care depend on a steady flow of newcomers. 

Amber Rudd has today promised businesses and EU nationals that there will be no "cliff edge" when the UK leaves the EU, while immigration minister Brandon Lewis has seemingly contradicted her by baldly stating: "freedom of movement ends in the spring of 2019". The difference, it appears, is explained by whether one is referring to "Free Movement" (the official right Britain enjoys as an EU member) or merely "free movement" (allowing EU migrants to enter the newly sovereign UK). 

More important than such semantics is whether Britain's future immigration system is liberal or protectionist. In recent months, cabinet ministers have been forced to acknowledge an inconvenient truth: Britain needs immigrants. Those who boasted during the referendum of their desire to reduce the number of newcomers have been forced to qualify their remarks. Brexit Secretary David Davis, for instance, recently conceded that immigration woud not invariably fall after the UK leaves the EU. "I cannot imagine that the policy will be anything other than that which is in the national interest, which means that from time to time we’ll need more, from time to time we’ll need less migrants." 

In this regard, it's striking that Brandon Lewis could not promise that the "tens of thousands" net migration target would be met by the end of this parliament (2022) and that Rudd's FT article didn't even reference it. As George Osborne helpfully observed earlier this year, no senior cabinet minister (including Rudd) supports the policy. When May departs, whether this year or in 2019, she will likely take the net migration target with her. 

In the meantime, even before the end of free movement, net migration has already fallen to its lowest level since 2014 (248,000), while EU citizens are emigrating at the fastest rate for six years (117,000 left in 2016). The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit and a rise in hate crimes and xenophobia are among the main deterrents. If the report does its job, it will show why the UK can't afford for that trend to continue. 

George Eaton is political editor of the New Statesman.