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

Photo: Getty
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What Labour's plotters are thinking

The ground may have shifted underneath Jeremy Corbyn's feet, at least as far as the rules on nominations are concerned. 

Jeremy Corbyn’s leadership has been rocked by seven resignations from his shadow cabinet, as the attempt to remove the Labour leader gathers speed and pace.

I’m told there will be more to come. What’s going on?

As I’ve written before, the big problem for Labour’s Corbynsceptics is that Corbyn won big among party members in September and his support has, if anything increased since then. Although a lot of ink was wasted over fears of “entryism” which at the outside probably contributed about a percentage point to Corbyn’s 40-point landslide, it is “exitism”  - the exodus of anti-Corbynite members and their replacement with his supporters that is shifting the party towards its left flank.

Added to that is the unhelpfully vague wording of Labour’s constitution. It is clear that Corbyn’s challengers would need to collect 50 signatures from Labour MPs and MEPs to trigger a leadership challenge, a hurdle that the plotters are confident of hopping. It is less clear whether Corbyn himself would have to do so.

But what appears to have happened is that Iain McNicol, the party’s general secretary, has received legal advice that he should not put Corbyn on the ballot paper unless the parliamentary Labour party does so – advice that he is willing to put his job on the line to follow. McNicol believes that the NEC – which has a fragile Corbynite majority on some issues but not on all – will back him up on this matter. (Significantly, at time of writing, none of the three frontbenchers who hold NEC posts, which are in the gift of the shadow cabinet not the party’s leader, have resigned.)

McNicol himself is currently at Glastonbury. Also on his way back from that music festival is Tom Watson, the deputy leader, whose political protégés include Gloria DePiero, who resigned earlier today. Stiffening the resolve of Labour MPs that they can pull this off and survive the rage of the membership is a motion of no confidence in Jeremy Corbyn passed by Wrexham constituency Labour party. The MP there is Ian Lucas, a respected MP from the party’s right, who is now on the backbenches but resigned from Tony Blair’s government in 2006 after Blair refused to set out his departure date.  That coup, of course, was organised by Tom Watson.

Watson is respected by Labour’s general secretaries, who are publicly supportive of Corbyn but many of whom would privately prefer to see the end of him. Crucially, they are even more opposed to John McDonnell, who has been a reliable ally to their leftwing opponents in internal elections.

As for party members, having called around this morning there is certainly some movement away from Corbyn, partly due to the Vice documentary and also due to the referendum campaign. My impression, however, is that the candidate they are looking for – someone who could have much of Corbyn’s politics but with greater political nous and the ability to bring together more of the PLP – doesn’t exist in the parliamentary party. There are some lower-ranked members of the 2010 and 2015 intakes who might fit the bill, but their time is far from ripe. It's also not clear to me how significant that movement away is in percentage terms - Corbyn won by 40 points and was 19 points clear of needing a second round, so his capacity to survive erosion is strong. 

Significantly, within the parliamentary party's three anti-Corbyn tendencies, “the let him fail and strike once” and the "we're stuck with him, keep quiet and do other things" factions are currently recessional and the “strike and strike until he gives up” faction is ascendant, adding to the pressure on the leadership, at least temporarily. The prospect of what may be a winnable election post-Brexit with a different leader - as one MP said to me, "Angela [Eagle] is not that good but she is good enough [should Brexit trigger a recession] - has Corbynsceptics less inclined to write off the next election. 

At the start of the year, I thought that no attempt to replace Corbyn before the election would work. That's still my “central forecast” – but a bet that looked more reliable than a ISA now looks rather shaky.

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.