Labour's internal battle is a tale of two Eds, both called Miliband

The opposition ranks are close to despair over an apparent lack of direction.

Once again the Labour party is being spared embarrassment by Tory divisions over Europe. It is a familiar pattern. When the Conservatives are quiet and organised the spotlight falls on Ed Miliband. He appears to mumble or fluff his lines. The script isn’t gripping the audience. Labour MPs shuffle uncomfortably in their seats. It all starts to look a bit awkward. And then everyone’s attention is distracted by fighting somewhere off to the right of the stage – an unseemly scuffle that looks as if it might end up with David Cameron falling on his backside or being dragged into the wings never to return.

Every Labour MP I speak to declares it is not safe to rely on Tory disorder to make Miliband look like a credible Prime Minister in waiting. But government tumult occurs with sufficient regularity to keep the embers of optimism glowing on the opposition benches.

Yet there is another familiar cycle that afflicts the Labour side. It is the pattern of doubt over the viability of Miliband’s bid for power being filtered through the urge to remove Ed Balls from the shadow Treasury brief. The argument is well-rehearsed and has two pillars. First is the belief that Labour will not persuade wavering voters that it has something fresh and exciting to say about the economy (a pre-condition for victory) as long as the man delivering its main economic message is perceived as an incarnation of the politics and fiscal strategy of Gordon Brown. The second concern is that Balls is congenitally opposed to any public rehearsal of ideas for reforming the way government and the state function; that he is a classic Treasury centraliser and sceptical about the need to urge innovation in the public sector. In that guise, Balls is seen as the engine of incrementalism, holding back any declaration of governing intent through bold policy priorities before there is more clarity about the state of the economy that a Labour government would inherit.

The most persuasive counter-arguments are that Balls’s macroeconomic analysis has proved much more prescient than Osborne’s and that he is one of few obviously substantial and experienced figures on the Labour front bench. He is respected as an economist even by those who don’t like him as a politician, which is more than can be said about the present Chancellor. To ditch Balls would be to declare a vote of no confidence in pretty much everything Labour has said on the economy thus far in opposition, which is a path self-evidently fraught with hazard.

The latest intimation of irritation with Balls comes in a piece in the Sun today, declaring enthusiasm for the “Blue Labour” strand of thinking in which Miliband has dabbled. It cites unnamed sources agitating for Jon Cruddas, currently head of the party’s policy review, to be made Shadow Chancellor. Balls, it is suggested, might be made Shadow Foreign Secretary – a role of adequate seniority to fit the man’s status as a heavyweight. (What the Sun’s anonymous informers think should therefore become of Douglas Alexander, who currently holds the shadow foreign affairs brief, isn’t disclosed.)

These whispers, aimed presumably at influencing the outcome of a shadow cabinet reshuffle that everyone expects to happen over the summer or early in the autumn, confirm something I wrote back in January. Namely, that the battle for possession of Labour’s soul is no longer between “new” and “old” permutations but between “blue” and “brown”. I concluded then that:

There is a caricature of Labour’s public-sector debate that pits the frugal, reforming idolators of Tony Blair against spendthrift, reactionary disciples of Brown. The distinction is increasingly meaningless. Orthodox Blairites are a rare and neutered breed and even they accept that Balls, for all that the Tories paint him as Brownism incarnate, is wedded to budget discipline.

The real tension is both subtler and more profound. It is between the need to defend Labour’s legacy of investment in public services and the impulse to imagine different ways of effecting social change. It is the dilemma of how to rehabilitate the abstract principle that government can be the citizen’s friend while also attacking the current government as a menace to society. It is the battle between Brown and Blue shades of Labour which remains unresolved, because Ed Miliband is personally steeped in both.

I stand by that analysis. I would add, though, that five months have elapsed since then and Labour appear not to have advanced any closer to the affections of the undecided electorate. If anything, their reliance on coalition cock-up and in-fighting has become more pronounced.

Naturally, the anxiety this provokes has become more acute. A crucial factor in all of this is the departure of David Miliband from the front line of British politics and indeed from the shores of Britain. The elder Miliband was not, as some seem to think, loitering with intent as a leader-in-waiting, although he was sometimes talked up as a potential shadow chancellor. But his erasure from the picture has had a more subtle effect. David may not have been an imminent candidate for the leadership but he was an ever-present emblem of a different leadership that might have been. His departure has somehow underscored the point that Ed won. The victory of autumn 2010, which felt lopsided because it was delivered by a peculiar internal electoral system that allowed a trade union bloc vote to trump the will of members and MPs, has been cemented. The younger Miliband’s position at the top is undisputed. There is nothing and no-one stopping him from doing with the party what he wants – taking it in the direction of his choosing – except perhaps Ed himself.

An observation I often hear from Labour MPs, advisors and people close to the leader’s office is that there are really two Eds. There is the cautious, calculating one who learned machine politics and tactical manoeuvring at the feet of Gordon Brown. Then there is the bold and energetic one who is a fluent and persuasive advocate for a new left vision that might cut through the sterile ideological and factional vendettas that encrusted the last Labour government. It is, in a sense, the difference between “One Nation” Labour as a genuine call to arms to rebuild solidarity and national purpose and “One Nation” Labour as a bit of wrinkly old sticky tape holding disparate parts of a directionless machine together.

From my conversations with Labour people – on the left and the right of the party – I sense diminishing confidence that “good” Ed will triumph. The optimism born of Tory division and Cameron’s loss of control is yielding diminishing returns for the Labour leader, not least because angry and disillusioned Conservative voters are flocking to Ukip instead of rallying to the main opposition party. Ed Miliband is entering very dangerous territory. If the opinion polls stay as stuck as they are, the weakness of the government will no longer be a source of confidence for the opposition. Instead it will be a catalyst for panic. At the moment, Labour people are outraged by what the coalition is doing to the economy and public services and scornful of the Tories' capacity to solve the nation’s problems. Pretty soon, if the Labour leader cannot capitalise on Tory weakness, all of that anger and contempt will rebound onto him. The uselessness of the coalition is coming to be seen not just as a measure of Cameron’s deficiency, but of Miliband’s inability to press home an advantage.

There is nothing stopping Miliband from doing what he wants with the party – except perhaps Ed himself. Photograph: Getty Images.

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

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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com