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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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

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.