David Miliband on what Labour needs to do to win, Blue Labour and his future

"It does feel as if I have been going around attending various versions of my own funeral". Some highlights from a recent evening with the former foreign secretary at the Danish embassy.

Ahead of his departure to the US to lead the International Rescue Committee, David Miliband hosted an evening at the UK Danish Embassy last week, taking questions from an audience of Fabian Society members.

Miliband talked candidly about what Labour needs to do to win in 2015, his regret at not taking up the post of EU foreign policy chief and the significance of ‘Blue Labour’. Here are some highlights from the evening’s Q&A.

What is your take on the current state of play in British politics today?

“Today is an incredible exciting time in British politics for two reasons. Firstly, it is a really open time in politics because the traditional politics of the left, which was about the state providing answers, and the traditional politics of the right of the market finding answers, neither of those are going to meet the challenges of the present. Essentially, what is going on in politics is the centre-right and-centre left are trying to break out of the confines of their own inherited 20th century thinking – without losing the values which are the oxygen of these 20th century movements.

In this time of openness, when your elders are no longer necessarily your betters, the ideas that drive us forward are as likely to come from the young as from others.

What we do know is that successful left-of-centre parties are able to reinvent themselves and think in a way that holds on to the important anchors that brought them into politics in the first place, while at the same time really thinking about the new ways we can put our values into practice.”

Given you’ve got so much to say on the future of British politics, why are you leaving it?

“I’ve got a great opportunity to put my values into practice. The International Rescue Committee is an organisation founded by Albert Einstein in 1933 when he left Germany to flee the Nazis; it has 12,000 staff in 40 countries around the world who are literally doing life saving work, often in places governments can’t go.

For example, in parts of Syria today, there are IRC staff doing life saving work. I’ve got an opportunity within this role to make a real different to people who need help, a voice and representation. Moving to this role is an episode, not an emigration to the US.”

You describe your departure as an episode. What is the duration of that episode?

“Well I haven’t gone yet. When doing a bit of teaching in my old school, one of the kids said ‘I’m doing my A-levels, I’m 17 and I don’t really know what I’m going to do with my life’ and I said, look, I still don’t know what I’m going to do with my life either.”

How have the last few weeks been prior to you leaving for the US?

“It does feel as if I have been going around attending various versions of my own funeral, the difference being the corpse in the coffin is still speaking.”

Why did you choose not to take up the post of EU High Representative for Foreign Affairs? And do you regret that decision now?

“Well, with hindsight it did turn out to be a shame. The job came up in November 2011 and basically I didn’t want to be a rat leaving a sinking ship. We were five months away from a British general election, I’d spent 20 years trying to build the Labour Party up and having left at that point would have been wrong. I actually remember saying to my wife Louise, I don’t want to be sat in Brussels watching the Labour Party go to hell and so that’s the reason.”

During your time in Westminster, how do you think opportunities for women in politics have changed?

“On the one hand there has been a dramatic numerical break through, achieved through things like all women shortlists, which broke the back of the self-selecting oligarchic practices that we used to see of appointing candidates  because they were perhaps the son of so and so.

Culturally a lot of what passed as acceptable comment in the past doesn’t and isn’t acceptable now. Equally, the demands of politics now are massive and this isn’t conducive with the role of primary career. Things are tough, especially if you are trying to juggle a marginal seat, demands of the constituency and bringing up children.”

How can Labour secure victory in 2015?

“The Labour Party has only ever won elections when it’s been the party of production as well as the party of distribution. If left-wing parties are only about how you distribute the cake, and not how you grow the cake, that’s fine for a theoretical economy model but not for governing the country. So you’ve got to get into the guts of how to link production and distribution.”

What is your view on Maurice Glasman’s Blue Labour?

“Your could summarise Blue Labour by saying that by standing for change you mustn’t forget the social ties that bind people together and I think that’s right.

The criticism that New Labour lost a sense of community is a fair argument but, equally, I don’t think you want to flip into a position where you lose the modernising side. What I think marked out the successful elections of ‘97, 2001 and 2005 was that we weren’t just for social democratic virtues, we also had a progressive sense of national modernisation. Those words aren’t quite right, they are too technocratic, but they do sum up a sense of national purpose and progress. For both major parties, I think they are the keys to electoral success.

What I would say is the New Labour critique has force but beware of ending up looking back, rather than looking forward, because politics is always about the future. And the future can never be about remaking old things it’s got to be about retaining or rebuilding old virtues in new ways.

That’s the danger; you can’t do your politics through the rear view mirror.”

Marcus Hobley (@marcushobley) is a freelance commentator specialising in economic and public policy 

David Miliband will shortly become the new president and chief executive of the International Rescue Committee in New York. Photograph: Getty Images.

Marcus Hobley is a freelance commentator specialising in economic and public policy

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.