Miliband's lost welfare intervention

Everyone waited for the Labour leader to say something on welfare. He did but (for obvious reasons) no one noticed.

A colossal news event doesn’t just obliterate other items from the news agenda, it seems to cast them back in time. The arguments about welfare reform that raged last week  – aggravated by George Osborne’s decision to link the case of Mick Philpott, a convicted child killer who happens also to have received benefits, to the more general moral failings of the social security system - seem to have been pushed deeper into the past by the sheer volume of coverage of Margaret Thatcher's death.

The Labour Party was collectively outraged, denouncing the Chancellor’s intervention as callous and cynical. The Tories were generally glad of another opportunity to depict the opposition as hopelessly wedded to defending a profligate system that permits indolence up to the point of breeding depravity. Something approximating a Westminster consensus formed by the end of the week that Labour came off worse from the scrap (although no one in their right mind could have judged it an edifying combat). That is partly because Ed Miliband was away on holiday. Without an intervention from the leader the party’s response looked inevitably diminished. The announcement, in Sunday’s Observer, of a "new" approach to welfare that would recognize more the value of claimants’ past contributions through work, was treated dismissively as a reactive panic, although Liam Byrne, shadow work and pensions secretary, has been kicking around the idea for months.

While some MPs on the right of Labour, mindful of public contempt for the party’s supposed record of unchecked welfare spending, fretted squeamishly that by kicking back at the Tories they were marching into another Osborne trap. Meanwhile, many on the left were in despair that seemed unable to muster sufficient moral outrage to defend those – in work and out of it - who rely on state support just to get by and who are implicitly branded as corrupt layabouts by government rhetoric.

Miliband was convicted by all sides in absentia. So it might be expected that, on his return from holiday, the Labour leader would make a clear and explicit statement of his position on the subject. As it happens, he did. I was travelling with Miliband as he launched his party’s local election campaign yesterday. (Yes, I was there when the news of Thatcher’s death came in but you’ll have to wait a bit longer to read about that.) Campaigning was abandoned and not much, if anything, that happened in politics earlier in the day was noticed.

It is worth disinterring Miliband’s welfare comments, made to a live audience in Ipswich during an unscripted question and answer session. Naturally, what he said won’t satisfy everyone but it is a clearer statement of the official position than anything that emerged last week, a relatively substantial intervention and probably worth quoting in full. So here it is:

“The starting point is we need a welfare system that works. We are very clear about what welfare reform means. Welfare reform means that we should get the 155,000 people who have been unemployed over two years over the age of 25 back to work. Labour is the only party in this country that says we're actually going to do that. We're going to offer them jobs and say you've got a responsibly to take it.

"We think we've got to get the 77,000 young people who have been unemployed for more than a year, back to work. Labour is the only party who says we're actually going to do that by putting them back to work. Do you know what? Those numbers are going up and up under this government because of their economic failure. That's where you start.

"Secondly, you've got to make work pay. You don't make work pay but cutting taxes for millionaires and cutting tax credits at the same time so you've got to make sure that tax credits are there for people to make work pay.

"Thirdly, contribution does matter. I've said in the past that when it comes to housing, if you are working and playing a part in your community, you should get extra points. In terms of the housing list, that is the right thing to do. That is what welfare reform looks like to me.

"Here's the problem with this government, they are not just heartless they are hopeless too. Because actually their welfare reform doesn't work. They say they want to make work pay - Mr Osborne was repeating this on Tuesday . What he doesn’t admit is that his strivers tax that is coming in today - the limit to 1% of the increase in social security payments - is hitting precisely the people he says he wants to help: the people on tax credits and others.

"They’re hopeless too because their bedroom tax is not just cruel and unfair but actually is going to force people into the private sector, which will cost more. And universal credit it in chaos.

"But now we come to the wider issue. Because there are two different views you can take on this: do you try and unite your country and bring it together or do you exploit tragedies? Like the Philpott tragedy. And the right place for Mr Philpot is behind bars. But do you exploit the deaths of six children to try and make a political point about the welfare system? And at the same time say to people actually this is somehow a commentary about so many people on benefits. Of course there is a minority of people on benefits who should be working and aren’t. Labour’s the party that’s going to get them back to work. But what I’m not going to do is engage in nasty, divisive politics.

“I have got a very clear message for the British people on this: we can either succeed as a country by uniting, by using the talents of everybody, by using the talents of everybody out of work, by putting them back into work and making sure there is real responsibility. Or you can say let's divide, let’s set one group of people against another - that’s not how we won the Second World War, that’s not how we succeeded as a country after the Second World War. Now if people want that nasty divisive politics they can have it from the Conservative Party, they’re not going to get it from me. I’m a unifier, not a divider.

"That is what One Nation Conservatives used to believe. And frankly, you know what, I think One Nation Conservatives will be turning in their grave at what’s happened to today’s Conservative Party. They would be ashamed of what’s happened to this Conservative party. Because they have made a political decision, it’s not about the national interest, it’s a political decision to divide this country. Well I’m not having it. I’m not doing it. That’s not my politics."

 

Miliband said that "One Nation Conservatives will be turning in their grave at what’s happened to today’s Conservative Party". Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Theresa May confirms Brexit Britain out of the single market – 8 other things we learnt

The Prime Minister dropped the Brexit bombshell that we're out of the single market, and more. 

Theresa May confirmed suspicions that the UK will leave the single market after Brexit in a major speech on her objectives.

The Prime Minister said the Brexit vote was a clear message about controlling immigration, and “that is what we will deliver” – but this meant the UK could not continue following the rules of the single market

She said: I want to be clear. What I am proposing cannot mean membership of the  single market. European leaders have said many times that membership means accepting the “four freedoms” of goods, capital, services and people.

"And being out of the EU but a member of the single market would mean complying with the EU’s rules and regulations that implement those freedoms, without having a vote on what those rules and regulations are."

May also repeated that maintaining the open land border between Northern Ireland and the Republic of Ireland would be a priority, and that she wanted trade deals with the rest of the world.

But leaving the single market wasn’t the only Brexit bombshell May dropped. Here is what we learnt:

1. The single market may be replaced by a European free trade deal

The Prime Minister has ruled out a single market, but is hoping for a deal to replace it. She said: “As a priority we will pursue a bold and ambitious free trade agreement with our neighbours in Europe."

2. No more European Court of Justice

May said Brexit will end the jurisdiction of the European Court of Justice in Britain, and that “laws will be interpreted by judges not in Luxembourg but in courts across this country”.

3. Parliament will get a vote on the Brexit deal

Most MPs already expected to get a vote – as their peers in the European Parliament would get one. May confirmed this, saying: "I can confirm today that the government will put the final deal that is agreed between the UK and the EU to a vote in both Houses of Parliament, before it comes into force.."

4. EU citizens still face uncertainty

May has always been clear she wants to confirm EU citizens’ right to remain in the UK, but only if British citizens receive the same guarantee in other EU countries.

She made no further guarantees, saying: "I have told other EU leaders that we could give people the certainty they want straight away, and reach such a deal now. Many of them favour such an agreement - one or two others do not"

5. She will try to stay in the customs union

May explicitly said the UK will have to leave the EU single market, but she was far more nuanced on the customs union, which negotiates trade deals on behalf of the EU member states.

She does not want Britain to share the EU’s common commercial policy, or be bound by common external tariffs, but does want to “have a customs agreement with the EU”. This could mean the UK becoming “an associate member of the customs union”. 

6. Some payments may continue

May said that Britain voted to stop large contributions to the EU, but she stopped short of ruling them out altogether. There may be payments that are “appropriate”, she said, if there are programmes the UK wants to be part of.  

7. Brexit could be in phases

The PM said several times she wanted to reassure businesses – who are increasingly unhappy about the uncertainty ahead. She wants the negotiators avoid a “cliff edge”, but also avoid “permanent political purgatory” (something Brexiteers fear). 

May suggested a deal could be done by the time the two-year process of Article 50 ends, and this could be followed by a “phased process of implementation”.

It’s worth bearing in mind at this point that two years in EU deal-making time is extremely speedy.

8. The UK’s nuclear option: Corporate tax haven

The Chancellor Philip Hammond has already floated the idea that a disgruntled Britain could slash corporate tax in order to attract unscrupulous multinationals to its shores.

May said that the UK would be prepared to crash out without an agreement, saying “no deal for Britain is better than a bad deal for Britain”. 

In such a situation, Britain "would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain". In other words, become an offshore tax haven. 

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.