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

Getty Images.
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Brexit has forced the Tories to retreat from austerity

George Osborne's decision to abandon his budget surplus rule is an acknowledgment of economic reality.

Before Brexit, it was intensified austerity that was threatened by George Osborne. But after the event, the Chancellor has taken the reverse course. In his speech to the Manchester Chamber of Commerce, Osborne abandoned the ambition that has defined his Treasury tenure: a budget surplus.

He said: "The referendum is expected to produce a significant negative economic shock to our economy. How we respond will determine the impact on jobs and growth.

"We must provide fiscal credibility, continuing to be tough on the deficit while being realistic about achieving a surplus by the end of the decade. That's exactly what our fiscal rules are designed for."

Rather than a dramatic reversal, Osborne's decision is now merely an acknowledgment of economic reality. The rule is automatically suspended when growth falls below 1 per cent (as it almost certainy will) in order to avoid further depressing output. But even before Brexit, Osborne was regarded by the IFS as having only a 50 per cent chance of achieving his target.

Labour is highlighting its consistent opposition to the rule, which it again called for the abandonment of after Brexit. A senior source hailed a "huge victory" for the "centrepiece of our economic criticism of the government over the last nine months since Jeremy [Corbyn] took over the leadership." I'm told that Labour will not abandon its Fiscal Credibility Rule as it is "more robust and flexible". Unlike the government's surplus target, it allows borrowing for investment, mandating only that day-to-day spending be balanced (a condition suspended if the Bank of England believes monetary stimulus has become ineffective).

As well as reflecting the new economic reality, Osborne's announcement was also an acknowledgment of the new political one. It will most likely be a future Chancellor who determines the path of fiscal policy (starting with this year's Autumn Statement). At her leadership launch yesterday, Theresa May pre-empted Osborne by declaring that "we should no longer seek to reach a budget surplus by the end of the parliament". Among the Home Secretary's notable supporters is Cabinet Office minister and arch-Osborneite Matt Hancock. The Chancellor's decision to echo May's stance is being seen by some as the prelude to an endorsement. But Michael Gove, who reportedly wants Osborne to remain in post, also acknowledged the new fiscal reality at his launch this morning.

Far from more austerity, it is already clear that Brexit will mean considerably less. As Osborne knows, there is no alternative.

George Eaton is political editor of the New Statesman.