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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Forget gaining £350m a week, Brexit would cost the UK £300m a week

Figures from the government's own Office for Budget Responsibility reveal the negative economic impact Brexit would have. 

Even now, there are some who persist in claiming that Boris Johnson's use of the £350m a week figure was accurate. The UK's gross, as opposed to net EU contribution, is precisely this large, they say. Yet this ignores that Britain's annual rebate (which reduced its overall 2016 contribution to £252m a week) is not "returned" by Brussels but, rather, never leaves Britain to begin with. 

Then there is the £4.1bn that the government received from the EU in public funding, and the £1.5bn allocated directly to British organisations. Fine, the Leavers say, the latter could be better managed by the UK after Brexit (with more for the NHS and less for agriculture).

But this entire discussion ignores that EU withdrawal is set to leave the UK with less, rather than more, to spend. As Carl Emmerson, the deputy director of the Institute for Fiscal Studies, notes in a letter in today's Times: "The bigger picture is that the forecast health of the public finances was downgraded by £15bn per year - or almost £300m per week - as a direct result of the Brexit vote. Not only will we not regain control of £350m weekly as a result of Brexit, we are likely to make a net fiscal loss from it. Those are the numbers and forecasts which the government has adopted. It is perhaps surprising that members of the government are suggesting rather different figures."

The Office for Budget Responsibility forecasts, to which Emmerson refers, are shown below (the £15bn figure appearing in the 2020/21 column).

Some on the right contend that a blitz of tax cuts and deregulation following Brexit would unleash  higher growth. But aside from the deleterious economic and social consequences that could result, there is, as I noted yesterday, no majority in parliament or in the country for this course. 

George Eaton is political editor of the New Statesman.