Clegg should take the high ground with Miliband and shame the Tories into action

If he wants to solve his party's funding problems, the Lib Dem leader should form an alliance with Labour.

"A principle isn’t a principle until it costs you money", wrote Bill Bernbach, generally acknowledged to be the greatest adman of the 20th Century (which readers of the New Statesman may not necessarily view as the most worthy of monikers, but you’d have to admit, he knew how to turn a phrase).

It’s a sentiment that I suspect Ed Miliband would concur with. And more to the point, I suspect the public would concur with.  If Labour can show they have made a decision that will cost them millions – and they'd better be sure that the New Statesman is right on that, and that the FT is wrong- then the public will reward them for a principled decision. And how deftly Ed Miliband has turned the tables on Cameron, who now has to make some pretty tough decisions himself on party funding and second incomes for backbench Tory MPs (and if he does ban the latter, you’d suspect a few more letters will be heading Graham Brady's way). 

But where does all this leave Nick Clegg and the Lib Dems? The answer is - facing both an opportunity and a threat. Being perennially stuffed for cash, made much worse by the removal of short money when we went into government, funding reform has been high on the priority list for the Lib Dems for some time. It seemed that the chance to do something about it this parliament had gone – but now suddenly it’s back on the table again, an opportunity Nick Clegg was quick to point out in DPMQs yesterday.

More than that,  Nick’s spotted a bit of an opportunity too; why not, as part of the 'opt-in' system let union members name the party they would like their political levy to go to? For example, the majority of Unite members don’t vote Labour. It's quite a thought isn’t it, Unite, Unison and the GMB posting off cheques on behalf of their members to the Lib Dems, the Greens, the Tories…

However, there are downsides to this wheeze; when one party is in the process of costing themselves a fortune on a point of principle, trying to instigate a get rich quick scheme may not play well to the gallery. In fact, you look like a bit of an ambulance chaser. Especially when you have a Michael Brown- shaped rock your opponents can throw back at you.

Far better, I think, for Nick to take the high ground and form an alliance with Labour on party funding reform, shaming the Tories into action. To quote Bill Bernbach again: "If you stand for something, you will always find some people for you and some against you. If you stand for nothing, you will find nobody against you, and nobody for you".

Nick should leave the tactical stuff on party funding to the troops and go climb the high ground with Ed. After all, who knows where such teamwork may lead…

Nick Clegg and Ed Miliband attend a ceremony at Buckingham Palace to mark the Duke of Edinburgh's 90th birthday on June 30, 2011 in London. Photograph: Getty Images.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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Is Scottish Labour on the way back, or heading for civil war?

There are signs of life, but also recriminations.

The extraordinary rise of the Scottish Tories and the collapse in SNP seat numbers grabbed most of the headlines in the recent general election. Less remarked on was the sudden, unexpected exhalation of air that came from what was thought to be the corpse of Scottish Labour.

In 2015, Labour lost 40 of its 41 Scottish seats as the SNP rocketed from six to 56, was wiped out in its Glaswegian heartlands, and looked to have ceded its place as the choice of centre-left voters – perhaps permanently – to the Nationalists. But while the electorate’s convulsion in June against the SNP’s insistence on a second independence referendum most benefited Ruth Davidson, it also served to reanimate Labour.

The six seats grabbed back (making a total of seven) included three in the West of Scotland, proving that the Nat stranglehold on Labour’s territory was not quite as secure as it had seemed. There is, it appears, life in the old dog yet.

Not only that, but the surprise success of Jeremy Corbyn across the UK has stiffened Labour’s spine when it comes to insisting that it, and not the SNP, is the rightful home of Scotland’s socialists.

Corbyn was largely kept south of the border during the election campaign – Kezia Dugdale, the leader at Holyrood, had supported Owen Smith’s leadership challenge. But in August, Corbyn will embark on a five-day tour of marginal SNP constituencies that Labour could potentially take back at the next election. The party has set a target of reclaiming 18 Scottish seats as part of the 64 it needs across Britain to win a majority at Westminster. The trip will focus on traditional areas such as Glasgow and Lanarkshire, where tiny swings would return seats to the People’s Party. Dugdale is no doubt hoping for some reflected glory.

Corbyn will present himself as the authentically left-wing choice, a leader who will increase public spending and invest in public services compared to the austerity of the Tories and the timidity of the SNP. “Labour remains on an election footing as a government-in-waiting, ready to end failed austerity and ensure that Scotland has the resources it needs to provide the public services its people deserve,” he said. “Unlike the SNP and the Tories, Labour will transform our economy through investment, insisting that the true wealth creators - that means all of us – benefit from it.”

The SNP has benefited in recent years from the feeling among many north of the border that Labour and the Tories were committed to differing shades of a similar economic programme, that was starving public services of cash and that paid little attention to Scottish desires or needs. But as the Nats’ spell in government in Edinburgh has worn on, first under Alex Salmond and now Nicola Sturgeon, with little being done to tackle the nation’s social problems, patience has started to run out.

Dugdale said yesterday that she “looked forward to joining Jeremy in August as we take our message to the people of Scotland”. That’s not a sentiment we would have heard from her before June. But it does raise the future spectacle of Davidson’s Tories battling for the centre and centre-right vote and Labour gunning for the left. The SNP, which has tried to be all things to all people, will have to make a choice – boasting that it is “Scotland’s Party” is unlikely to be enough.

The 20th anniversary of the referendum that delivered the Scottish Parliament is almost upon us. Then, Scottish Labour provided the UK and the Westminster government with figures of the stature of Gordon Brown, Robin Cook, Donald Dewar and George Robertson. That was a long time ago, and the decline in quality of Labour’s representatives both in London and Edinburgh since has been marked. The SNP’s decade of success has attracted much of the brightest new talent through its doors. Young Scots still seem to be set on the idea of independence. Labour has a credibility problem that won’t be easily shaken off.

But still, the body has twitched – perhaps it’s even sitting up. Is Scottish Labour on the way back? If so, is that down to the SNP’s declining popularity or to Corbyn’s appeal? And could Dugdale be a convincing frontwoman for a genuinely left-wing agenda?

There may be trouble ahead. Yesterday, the Scottish Labour Campaign for Socialism – whose convener, Neil Findlay MSP, ran Corbyn’s leadership campaign in Scotland – accused Dugdale of “holding Corbyn back” in June. A spokesperson for the group said: “While it’s great we won some seats back, it’s clear that the campaign here failed to deliver. While elsewhere we've seen people being enthused by ‘for the many, not the few’ we concentrated on the dispiriting visionless ‘send Nicola a message’ – and paid a price for that, coming third in votes and seats for the first time in a century. In Scotland we looked more like [former Scottish leader] Jim Murphy’s Labour Party than Jeremy Corbyn’s – and that isn’t a good look.”

While the group insists this isn’t intended as a challenge to Dugdale, that might change if Corbyn receives a rapturous reception in August. We’ll learn then whether Scotland is falling for the high-tax, high-spending pitch that seems to be working so well elsewhere, and whether Scottish Labour has jerked back to life only to find itself staring down the barrel of a civil war.

Chris Deerin is the New Statesman's contributing editor (Scotland).