Vince: minister for almost being on the left

The Business Secretary's review of "zero-hours" contracts is hardly distinguishable from Labour policy.

A couple of newspapers have today reported that Vince Cable wants a review of "zero-hours" contracts – a system accused by trade unions (among others) of being exploitative.

Around 200,000 British workers are estimated to be tied into these deals, especially in the fast food and other high street retail sectors, which require a commitment to be available for work without any guarantee of shifts. In other words, you can be on call enough to make it hard to look for or do another job and yet get to the end of the week with barely a penny to show for it.

The TUC has welcomed the new review. It isn’t often that union leaders have kind words for coalition ministers, but then again, this is Vince, Secretary of State for tantalising proximity to the left. The terms of Cable’s investigation aren’t all that different from official Labour policy, which is also to review zero-hours contracts, tighten rules and and clamp down on abuses.

Shadow health secretary Andy Burnham recently told the BBC his party should look at banning the practice (which has its own specific and pernicious impact in the NHS) but Labour sources today confirm that a ban is not the official line. The reservation comes from recognition that at least some employees like the flexibility of a zero-hours deal.

The Business Secretary has also clearly picked up that ambivalence. In parliament today, Cable’s response to a Labour question on zero-hours deals was markedly more neutral than this morning’s newspaper briefings. He would not be drawn on whether they represented healthy flexibility or mean exploitation:

"We do indeed have anecdotes about abusive practices in that area. We also have a lot of other anecdotes to show that the system works very well for a large number of workers and companies. I am not jumping to any conclusions; I am just trying to gather the facts."

Labour people I have spoken to are pointing to that as a retreat from the tougher-sounding headlines. They are keen to raise the question of whether Cable’s intervention represents a new government position or an out-riding Lib Dem position within government – the two aren’t necessarily the same thing. Reviews can be commissioned and come to nought. Recommendations can be implemented or ignored or, indeed, shelved with a view to being inserted in a future party manifesto.

On which subject, some Lib Dems are increasingly of the view that the party can and should show a little more flexibility on economic policy so as not to preclude any future partnership with Labour by marching too briskly to the beat of a Conservative drum. Such "equidistance" has become much more plausible now that Ed Balls has accepted the broad fiscal parameters of austerity into the next parliament. The big argument is shifting away from the question of whether the time is right to impose budget discipline (where the Lib Dems and the Tories are locked in consensus) to questions of how to impose discipline in a way that is fair and protects public services (where there is more room for Lib Dem flirting with the opposition).

Crucial to that conversation will be an argument about the appropriate balance between tax rises and spending cuts and in that debate I gather there is a movement afoot in the Lib Dem ranks to move the party much closer to Labour by supporting a restoration of the top 50p tax rate. There is even talk of formalising that position as early as this year’s annual conference. (Labour has yet to commit to doing the same but, given the fuss the two Eds have made about tax cuts for millionaires, it seems unlikely they will fight an election accepting Osborne’s gift to the rich as a fait accompli.) Labour, meanwhile, has already embraced the mansion tax – a policy very close to Lib Dem hearts.

If Labour has a mansion tax in its manifesto and the Lib Dems have a top rate of 50p and both are committed to cracking down on zero-hours contracts, the first morning of coalition negotiations in a hung parliament will break for an early lunch. 

Business Secretary Vince Cable arrives at 10 Downing Street on May 20, 2010. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Getty Images.
Show Hide image

As long as Jeremy Corbyn's Labour opponents are divided, he will rule

The leader's foes have yet to agree on when and how a challenge should take place.

Labour MPs began plotting to remove Jeremy Corbyn as leader before he even held the position. They have not stopped since. From the outset, most regarded him as electorally and morally defective. Nothing has caused them to relinquish this view.

A week before the first major elections of this parliament, Labour found itself conducting a debate normally confined to far-right internet forums: was Hitler a Zionist? For some MPs, the distress lay in how unsurprised they were by all this. Since Corbyn’s election last September, the party has become a mainstream venue for hitherto fringe discussions.

Many MPs believe that Labour will be incapable of rebuilding its standing among the Jewish community as long as Corbyn remains leader. In the 1930s, Jewish support for the party was as high as 80 per cent. “They handed you your . . . membership just after your circumcision,” quipped the father in the 1976 television play Bar Mitzvah Boy. By the time of the last general election, a poll found that support had fallen to a mere 22 per cent. It now stands at just 8.5 per cent.

Corbyn’s critics cite his rejection of anti-Semitism and "all forms of racism" (as if unable to condemn the former in isolation), his defence of a tweet sent by his brother, Piers (“Zionists can’t cope with anyone supporting rights for Palestine”), and his description of Hamas and Hezbollah as “friends”. The Lab­our leader dismissed the latter remark as a diplomatic nicety but such courtesy was not displayed when he addressed Labour Friends of Israel and failed to mention the country’s name. When challenged on his record of combating anti-Semitism, Corbyn frequently invokes his parents’ presence at the Battle of Cable Street, a reference that does not provide the reassurance intended. The Jewish community does not doubt that Labour has stood with it in the past. It questions whether it is prepared to stand with it in the present.

MPs say that Labour’s inept response to anti-Semitism has strengthened the moral case for challenging Corbyn. One shadow cabinet minister spoke of how the fear of “enormous reputational damage” had pushed him to the brink of resignation. As the New Statesman went to press, Corbyn’s first electoral test was looming. Every forecast showed the party on course to become the first opposition to lose council seats in a non-general-election year since 1985. Yet Corbyn appeared to insist on 3 May that this would not happen, gifting his opponents a benchmark by which to judge him.

Sadiq Khan was projected to become the party’s first successful London mayoral candidate since 2004. But having distanced himself from Corbyn throughout the race, he intends to deny him any credit if he wins. Regardless of the results on 5 May, there will be no challenge to the Labour leader before the EU referendum on 23 June. Many of the party’s most Corbyn-phobic MPs are also among its most Europhile. No cause, they stress, should distract from the defence of the UK’s 43-year EU membership.

Whether Corbyn should be challenged in the four weeks between the referendum and the summer recess is a matter of dispute among even his most committed opponents. Some contend that MPs have nothing to lose from trying and should be prepared to “grind him down” through multiple attempts, if necessary. Others fear that he would be empowered by winning a larger mandate than he did last September and argue that he must be given “longer to fail”. Still more hope that Corbyn will instigate a midterm handover to the shadow chancellor, John McDonnell, his closest ally, whom they regard as a beatable opponent.

Those who are familiar with members’ thinking describe many as “anxious” and in need of “reassurance” but determined that Corbyn receives adequate time to “set out his stall”. One shadow cabinet minister spoke of being “caught between Scylla and Charybdis” – that is, “a Labour Party membership which is ardently Corbynista and a British electorate which is ardently anti-Corbynista”. In their most pessimistic moments, some MPs gloomily wonder which group will deselect them first. The possibility that a new Conservative leader could trigger an early general election is cited by some as cause for haste and by others as the only means by which Corbynism can be definitively discredited.

The enduring debate over whether the Labour leader would automatically make the ballot if challenged (the party’s rules are ambiguous) is dismissed by most as irrelevant. Shadow cabinet members believe that Corbyn would achieve the requisite nominations. Momentum, the Labour leader’s praetorian guard, has privately instructed its members to be prepared to lobby MPs for this purpose.

There is no agreement on who should face Corbyn if his removal is attempted. The veteran MP Margaret Hodge has been touted as a “stalking horse” to lead the charge before making way for a figure such as the former paratrooper Dan Jarvis or the shadow business secretary, Angela Eagle. But in the view of a large number of shadow cabinet members, no challenge will materialise. They cite the high bar for putative leaders – the endorsement of 20 per cent of Labour MPs and MEPs – and the likelihood of failure. Many have long regarded mass front-bench resignations and trade union support as ­essential preconditions for a successful challenge, conditions they believe will not be met less than a year after Corbyn’s victory.

When Tony Blair resigned as Labour leader in 2007, he had already agreed not to fight the next general election and faced a pre-eminent rival in Gordon Brown. Neither situation exists today. The last Labour leader to be constitutionally deposed was J R Clynes in 1922 – when MPs, not members, were sovereign. Politics past and present militate against Corbyn’s opponents. There is but one man who can remove the leader: himself.

George Eaton is political editor of the New Statesman.

This article first appeared in the 06 April 2016 issue of the New Statesman, The longest hatred