PMQs review: Cameron wrongfoots Miliband on the banks

After being surprised by Cameron's commitment to banking reform, the Labour leader struggled to regain his poise.

Even before Ed Miliband got to his feet at today's PMQs, David Cameron had seized the advantage. Noting that Tristram Hunt and David Miliband were among those who would fall foul of Labour's new policy of banning unqualified teachers, he quipped: "another example of brotherly love". 

Things didn't improve much for Miliband after that. He challenged Cameron to say whether the government would use the banking bill to introduce new criminal penalties for bankers (anticipating an equivocal response) but was wrongfooted when Cameron simply replied: "we will be using that bill to take these important steps". After that, the Labour leader's subsequent (and pre-scripted) declaration that "if the government doesn't put down the amendments, we will" fell entirely flat. 

Miliband did have a smart statistic to hand, noting that bonuses had risen by 64 per cent in the last year, principally due to bankers deferring them in order to benefit from the 50p tax cut, but this only offered Cameron an opportunity to launch attack after attack on Labour for being at the wheel when Northern Rock issued 125% mortgages, when Fred Goodwin received his knighthood and when the boom turned to bust.

Bonuses, he pointed out, were 85 per cent lower now than in 2007-08, demanding that Labour finally apologise for its mismanagement. Miliband and Ed Balls have, of course, repeatedly admitted that Labour was wrong to regulate the banks so laxly but one can hardly blame Cameron for seeking to make them do so again.

Miliband declared at one point that he wasn't going to "take lectures from the guy who was the adviser on Black Wednesday" but his history lesson will resonate less with the public than Cameron's. That the Tories were calling for less, not more regulation at the time is, politically speaking, irrelevant. It is governments, not oppositions, that get the blame. 

Today's session was also notable for Cameron's refusal to deny that the government is considering increasing interest rates on student loans taken out in the last 15 years. After Vince Cable and Danny Alexander rejected the story as "false", this offers Labour a chance to go back on the attack.

Asked whether he had ever had any discussions with Lynton Crosby "about plain packaging of cigarettes or the minimum pricing of alcohol", Cameron replied: "I can tell you that Lynton Crosby has never lobbied me on anything", an answer likely to come under considerable scrutiny. But his pay-off was sharp; the only thing the pair discussed, he said, was "how we destroy the credibility of the Labour Party" but Crosby was not doing "as good a job as the party opposite". 

David Cameron and Ed Miliband walk through the Members' Lobby to listen to the Queen's Speech at the State Opening of Parliament on May 8, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.