Labour must make a principled defence of trade union funding

Confronted by the Tories' cynical manoeuvres, Labour should defend union funding as the most open and democratic source of money in politics.

Even by the Tories' Machiavellian standards, the decision to use the new lobbying bill to crack down on trade union funding of Labour is a remarkably cynical manoeuvre. Under the move, reportedly the brainchild of George Osborne, measures will be introduced to include union funding of leaflets in election spending limits and to end self-certification of union membership. At present, only the marginal cost of the printing counts towards a party's spending cap but under the Tories' proposals, the full costs, including staffing and premises, will have to be declared. The new law will apply to those organisations "directly affiliated to political parties and those contributing £100,000 a year or more to political parties" (the unions, in other words), while excluding the Conservatives' large business donors. 

What this has to do with the latest lobbying scandal, which saw Patrick Mercer resign the Tory whip after allegedly receiving cash for questions from a fake firm, is a question you might well ask. As Conservative MP Douglas Carswell tweeted, "Can anyone tell me if it was concerns about trade union activity that prompted demands to deal with lobbying? Did I miss something?" But the Tories, who have been outraised by Labour in recent quarters, are determined not to let a good crisis to waste. Having lost the boundary changes, Osborne, who remains the Tories' chief electoral strategist, has seized a new opportunity to tilt the odds in his party's favour.  

Labour has responded by rightly describing the move as "a shabby and panicked response by Cameron to divert attention from a set of damaging headlines hitting the Conservative Party", while also emphasising that party funding reform (which all parties accept the need for) should be pursued on a cross-party basis. 

But if it is to counter the Tories' dark arts, it must also launch a principled defence of union funding as one of the most open and honest sources of money in politics. Many frequently attempt to draw an equivalence between the unions and the City tycoons and private equity barons who fund the Conservatives, but there is no comparison to be had between the big money donors seeking to buy influence over the Tories and funding from the unions, composed of hundreds of thousands of individual members who have democratically agreed to contribute through the political levy. 

Some Tories, most notably Robert Halfon, the MP for Harlow, have rightly urged their party to abandon its kneejerk hostility to the unions. As he wrote in a blog for The Staggers last year, unions are "essential components of the Big Society. They are the largest voluntary groups in the UK. They are rooted in local communities, and are very much social entrepreneurs. TUC research shows that trade union officers are eight times more likely to engage in voluntary work than the average." 

With union membership now on the rise for the first time since 2003, Labour's association with them should be seen as a virtue, not a vice. But unless the party is able to state as much with conviction, the Tories will continue to blacken their name. 

Demonstrators take part in a TUC march in protest against the government's austerity measures on October 20, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
Show Hide image

Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.