After Watson: who will run Labour's general election campaign?

Douglas Alexander, who ran the 2010 campaign, is the frontrunner.

One immediate question posed by Tom Watson's resignation is that of who will run Labour's general election campaign. The frontrunner to fill the vacancy - Watson had been the party's campaign co-ordinator since October 2011 - is Douglas Alexander.

Alexander, currently shadow foreign secretary, ran the 2010 campaign and is admired by MPs for his intellect and strategic nous. As a figure from the "Blairite" wing of the party, who ran David Miliband's leadership campaign, his appointment would also reassure those concerned that party has drifted too far to the left since 2010.

Finally, it would offer Miliband a chance to demonstrate that it's not Len McCluskey who calls the shots. When I recently interviewed the Unite general secretary, Alexander was one of the shadow cabinet ministers he suggested should be ignored or sacked. McCluskey told me: Ed Miliband must spend most of his waking hours grappling with what lies before him. If he is brave enough to go for something radical, he’ll be the next prime minister. If he gets seduced by the Jim Murphys and the Douglas Alexanders, then the truth is that he’ll be defeated and he’ll be cast into the dustbin of history."

The other names circulating in Westminster are Sadiq Khan (who ran Miliband's leadership campaign), Harriet Harman and Michael Dugher, who has acted as Watson's effective deputy since he was appointed vice-chair in November 2012. He previously served as Gordon Brown’s spokesman and as PPS to Miliband, and is seen as one of the most impressive of the 2010 intake.

Shadow foreign secretary Douglas Alexander speaks at the Labour conference in 2011. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.