The Conservatives want to keep Labour hemmed into its past – and so do the unions

While the Labour leader takes time to ponder the future, his party is drifting into a style of politics that looks in urgent need of consignment to the past.

New Labour’s triumph over the Conservatives at the end of the 20th century was mostly cultural. That isn’t a belittlement. Culture trumps politics when it comes to social change. Politics intervenes; culture pervades.

During the long economic boom, Conservatives were culturally marginalised. To be a Tory was to be a curmudgeon at the carnival, fingers in ears, moaning about the racket. Since 2010, the Tories have turned that around, depicting Labour as revellers who didn’t notice when the music stopped. This is usually presented as an economic argument but that understates its potency. The need for austerity – harking back to postwar privations – is a cultural assertion.

The Tories never threw off their “nasty party” image but they have made a virtue of meanness. Having the will to inflict pain is now accepted as a test of readiness to govern. New Labour’s age of ebullience has been rewritten as a dark time of uncontrolled debt, immigration and welfare.

Yet Tory and Lib Dem strategists report that Labour’s brand is oddly resilient. Ed Miliband’s personal image is weak and much of the blame for economic misery clings to his party but enough voters retain a sense that the left’s heart is in the right place. George Osborne is encouraged by the public’s surrender to austerity but that isn’t a reliable advantage for the Tories if their motives are suspect. In an election defined by the need to ration public money, one question asked of each party will be: “Whose side are you on?” Many people will look at David Cameron and supply the answer: “His rich chums.”

The equivalent label that Cameron wants to pin on Miliband is “militant trade unions”. The Prime Minister overestimates public fear of organised labour. Strikes aren’t always popular but it takes some immersion in Conservative demonology from the 1970s to see the unions as enemies of society.

Still, senior Labour figures are less relaxed about the union connection than they were even a year ago. Cameron’s attacks on that front used to be dismissed as wild misfiring, a red-faced toff hectoring nurses, teachers and dinner ladies. That certainty has dissolved in anxiety about Unite, the largest union formally affiliated to Labour and the source of roughly a quarter of the party’s funding. Under the guidance of its general secretary, Len McCluskey, Unite is accused of requisitioning chunks of the party machine and inserting anointed candidates in line for winnable parliamentary seats.

This has been blown into the open by the bodged attempt to select a replacement for Eric Joyce, the Falkirk MP whose parliamentary career was derailed by a brawl in a House of Commons bar. Among other things, Unite is accused of buying up bogus Labour membership by the bucketful to swing the ballot. The selection process has been halted and the local party placed under “special measures”. The episode is now tangled in arcane disputes about party rules and salacious rumour.

There is nothing new about dodgy candidate selections, although historically at least some of the stitching up was done to suit the interests of the leader. These days, the machine is seen as an autonomous operation under the control of Tom Watson, the deputy chair of the Labour Party, its “campaign coordinator” and a friend of McCluskey.

Miliband’s allies accept that the Falkirk episode is, as one aide tells me, “obviously a car crash” but they also point out that the party has acted decisively to get a grip on the situation.

MPs are just as worried about the wider culture of hostile briefing and intimidation that is associated with the Watson operation, which is much the same apparatus that sustained Gordon Brown in his bunker. “It’s a way of doing politics that could end up profoundly damaging the Labour Party,” says one frontbencher.

Much of this goes unnoticed by voters but the Tories feast on it. They hope a message will get out that the Labour Party has its own nasty streak; that Miliband’s gentle, pious manner is a velvet glove on the old, clunking fist. The Conservatives need to keep Labour hemmed into its past. That task is easier if the leader looks subservient to union bosses who hate his recent conversion to spending restraint.

It was impatience to talk about the future, instead of rehearsing anti-austerity arguments devised for the economy as it was in 2010, that provoked Miliband into public acceptance last month that a government he led would be bound by much the same spending limits as those proposed by the coalition. The left has been disorientated by the move, but friends of the Labour leader say he is more confident of his position now than before the leap. While the Tories are having fun knocking the opposition for disarray and lack of commitment to the new line, Miliband is calm in the knowledge that his resolve is, as usual, underestimated.

His plan supposes the gradual unfurling of a banner on which will be inscribed an election-winning message of social and economic renaissance, delivered on a tight budget. Frugal idealism. On paper, that is the right strategic place for Miliband but his problems aren’t on paper and they aren’t all strategic. They are cultural. And culture, as the writer Peter Drucker once said, eats strategy for breakfast. While the Labour leader takes time to ponder the future, his party is drifting into a style of politics that looks in urgent need of consignment to the past.

Unite general secretary Len McCluskey. Photograph: Getty Images.

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

This article first appeared in the 08 July 2013 issue of the New Statesman, The world takes sides

Photo: Getty Images
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There are risks as well as opportunities ahead for George Osborne

The Chancellor is in a tight spot, but expect his political wiles to be on full display, says Spencer Thompson.

The most significant fiscal event of this parliament will take place in late November, when the Chancellor presents the spending review setting out his plans for funding government departments over the next four years. This week, across Whitehall and up and down the country, ministers, lobbyists, advocacy groups and town halls are busily finalising their pitches ahead of Friday’s deadline for submissions to the review

It is difficult to overstate the challenge faced by the Chancellor. Under his current spending forecast and planned protections for the NHS, schools, defence and international aid spending, other areas of government will need to be cut by 16.4 per cent in real terms between 2015/16 and 2019/20. Focusing on services spending outside of protected areas, the cumulative cut will reach 26.5 per cent. Despite this, the Chancellor nonetheless has significant room for manoeuvre.

Firstly, under plans unveiled at the budget, the government intends to expand capital investment significantly in both 2018-19 and 2019-20. Over the last parliament capital spending was cut by around a quarter, but between now and 2019-20 it will grow by almost 20 per cent. How this growth in spending should be distributed across departments and between investment projects should be at the heart of the spending review.

In a paper published on Monday, we highlighted three urgent priorities for any additional capital spending: re-balancing transport investment away from London and the greater South East towards the North of England, a £2bn per year boost in public spending on housebuilding, and £1bn of extra investment per year in energy efficiency improvements for fuel-poor households.

Secondly, despite the tough fiscal environment, the Chancellor has the scope to fund a range of areas of policy in dire need of extra resources. These include social care, where rising costs at a time of falling resources are set to generate a severe funding squeeze for local government, 16-19 education, where many 6th-form and FE colleges are at risk of great financial difficulty, and funding a guaranteed paid job for young people in long-term unemployment. Our paper suggests a range of options for how to put these and other areas of policy on a sustainable funding footing.

There is a political angle to this as well. The Conservatives are keen to be seen as a party representing all working people, as shown by the "blue-collar Conservatism" agenda. In addition, the spending review offers the Conservative party the opportunity to return to ‘Compassionate Conservatism’ as a going concern.  If they are truly serious about being seen in this light, this should be reflected in a social investment agenda pursued through the spending review that promotes employment and secures a future for public services outside the NHS and schools.

This will come at a cost, however. In our paper, we show how the Chancellor could fund our package of proposed policies without increasing the pain on other areas of government, while remaining consistent with the government’s fiscal rules that require him to reach a surplus on overall government borrowing by 2019-20. We do not agree that the Government needs to reach a surplus in that year. But given this target wont be scrapped ahead of the spending review, we suggest that he should target a slightly lower surplus in 2019/20 of £7bn, with the deficit the year before being £2bn higher. In addition, we propose several revenue-raising measures in line with recent government tax policy that together would unlock an additional £5bn of resource for government departments.

Make no mistake, this will be a tough settlement for government departments and for public services. But the Chancellor does have a range of options open as he plans the upcoming spending review. Expect his reputation as a highly political Chancellor to be on full display.

Spencer Thompson is economic analyst at IPPR