The Miliband-Blair war of words is a preview of bigger battles to come

If Labour unity has largely held since the election it is because Miliband has chosen to postpone almost all policy decisions.

Tony Blair's dramatic intervention in the centenary edition of the New Statesman (180 pages, out now) leads several of today's papers (the Independent and the Times have splashed on it), with some of the former prime minister's key allies taking the opportunity to air their own concerns about the party's direction under Ed Miliband. The increasingly outspoken Peter Mandelson tells the Independent: "Tony is saying what he has always thought – that the old dividing lines between the uncaring Conservative cuts and Labour spending has got to be redrawn for new times.

"I suspect the two Eds realise this. Their call for One Nation is the right starting point, but there are major structural challenges and choices facing Britain and Labour must consider the difficult changes and reforms needed to address them."

Alan Milburn, Blair's former health secretary, adds: "The closer the election comes, people will stop asking Labour what it is against. They will want to know what Labour is for and what, if elected, it would do. Tony Blair is right to argue that the sooner that process begins in earnest, the better."

One suspects that Miliband, who wasted no time in shrugging off Blair's warning not to "tack left on tax and spending", will be unfazed by their words. Both Mandelson and Milburn are no longer MPs, of course, and have little sway over today's Parliamentary Labour Party. But Blair's intervention and the response to it offers a preview of bigger battles to come. It's often said that Labour is more united now than at any point in recent history but this ignores the fact that there's been little to be disunited about.

Miliband's "blank sheet of paper" is gradually being filled but the Labour leader has chosen to postpone almost all policy decisions until 2014-15. Even when he proposes a new measure such as the reinstatement of the 10p tax rate, or the introduction of a "mansion tax", Miliband is careful to emphasise that these are examples of what Labour would be doing were it in power now, not manifesto commitments. The same applies to the party's five point plan for jobs and growth, the 50p tax rate, benefits uprating and just about every policy area Miliband has touched on since becoming leader.

But at some point before the election, he will need to decide where he really stands. Will Labour, for instance, pledge to stick to the coalition's spending limits for the early years of the new parliament (as Labour did with the Tories' in 1997) our outline its own alternative plan? What will the balance of tax rises to spending cuts be? Will he propose cuts to the welfare budget or allow the burden to fall entirely on public services? Will he pledge to keep Michael Gove's "free schools"? How far will he go in reversing the coalition's NHS reforms? Will he retain the £26,000 benefit cap? 

Liberated from office, Blair enjoys the luxury of posing questions without answering them (although NS editor Jason Cowley has a go in today's Times) but Miliband does not. And once he begins to set out his stall, Labour unity could quickly begin to fray. Recall the tumult that followed Ed Balls's declaration of support for the public sector pay freeze and Labour's decision to abstain on the workfare bill (a move that prompted a rebellion by 44 backbenchers). As one Labour MP recently told me, a pledge to make further cuts to public spending (as the party will surely do) would make such rows "look like a tea party". For this reason, among others, David Cameron and George Osborne will continue to appear unreasonably cheerful. Most of their tough decisions are behind them; Labour’s are all still to come.

Tony Blair talks with Ed Miliband during a Loyal Address service to mark the Queen's Diamond Jubilee at Westminster Hall. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The UK is dangerously close to breaking apart - there's one way to fix it

We must rethink our whole constitutional settlement. 

When the then-Labour leader John Smith set up a report on social justice for what would be the incoming government in 1997, he said we must stop wasting our most precious resource – "the extraordinary skills and talents of ordinary people".

It is one of our party’s greatest tragedies that he never had the chance to see that vision put into practice. 

At the time, it was clear that while our values of equality, solidarity and tolerance endured, the solutions we needed were not the same as those when Labour was last in power in the 1970s, and neither were they to be found in the policies of opposition from the 1980s. 

The Commission on Social Justice described a UK transformed by three revolutions:

  • an economic revolution brought about by increasing globalisation, innovation and a changing labour market
  • a social revolution that had seen the role of women in society transformed, the traditional family model change, inequality ingrained and relationships between people in our communities strained
  • a political revolution that challenged the centralisation of power, demanded more individual control and accepted a different role for government in society.

Two decades on, these three revolutions could equally be applied to the UK, and Scotland, today. 

Our economy, society and our politics have been transformed even further, but there is absolutely no consensus – no agreement – about the direction our country should take. 

What that has led to, in my view, is a society more dangerously divided than at any point in our recent history. 

The public reject the status quo but there is no settled will about the direction we should take. 

And instead of grappling with the complex messages that people are sending us, and trying to find the solutions in the shades of grey, politicians of all parties are attached to solutions that are black or white, dividing us further. 

Anyone in Labour, or any party, who claims that we can sit on the margins and wait for politics to “settle down” will rightly be consigned to history. 

The future shape of the UK, how we govern ourselves and how our economy and society should develop, is now the single biggest political question we face. 

Politics driven by nationalism and identity, which were for so long mostly confined to Scotland, have now taken their place firmly in the mainstream of all UK politics. 

Continuing to pull our country in these directions risks breaking the United Kingdom once and for all. 

I believe we need to reaffirm our belief in the UK for the 21st century. 

Over time, political power has become concentrated in too few hands. Power and wealth hoarded in one corner of our United Kingdom has not worked for the vast majority of people. 

That is why the time has come for the rest of the UK to follow where Scotland led in the 1980s and 1990s and establish a People’s Constitutional Convention to re-establish the UK for a new age. 

The convention should bring together groups to deliberate on the future of our country and propose a way forward that strengthens the UK and establishes a new political settlement for the whole of our country. 

After more than 300 years, it is time for a new Act of Union to safeguard our family of nations for generations to come.

This would mean a radical reshaping of our country along federal lines where every component part of the United Kingdom – Scotland, Wales, Northern Ireland and the English regions – take more responsibility for what happens in their own communities, but where we still maintain the protection of being part of a greater whole as the UK. 

The United Kingdom provides the redistribution of wealth that defines our entire Labour movement, and it provides the protection for public finance in Scotland that comes from being part of something larger, something good, and something worth fighting for. 

Kezia Dugdale is the leader of the Scottish Labour party.