How the Labour leadership result changes under a one-member-one-vote system

Had MPs' votes been treated in the same way as party members', Ed Miliband would have won a landslide victory.

One of the likely consequences of Ed Miliband's decision to introduce a new opt-in system for donations to Labour from affiliated trade union members will be a major change to the party's leadership election system. At present the decision lies with an electoral college split three ways between the party's 272 MPs and MEPs, all party members (193,000 at the last count) and members of affiliated trade unions and socialist societies (around 2.7 million). 

But should Miliband make all trade unionists who choose to donate full members of the party (as his speech on Tuesday implied), the third of these sections would effectively cease to exist (most socialist societies already require their members to be members of Labour). This would inevitably raise the question of whether the party should introduce a pure one-member-one-vote (OMOV) system, with MPs' votes no longer given greater weight than those of party members. As I noted in 2010, Labour is the only one of the three main parties which does not give the final say to individual party members. Under the electoral college system, the vote of one MP is worth the votes of 608 party members and 12,915 affiliated members and the vote of one party member is worth the votes of 21 affiliated members.

But would a one-member-one-vote system have changed the outcome in 2010? Earlier today, I reran the election using a OMOV model to discover the answer. It's not a perfect simulation; I don't have the data needed to strip out multiple votes (most MPs, for instance, had at least three votes by virtue of their membership of affiliated societies) and it's hard to know how many trade unionists would have participated under an opt-in system, but it's the best guide currently available. 

While the result does not change significantly (all the candidates finish in the same position, except Diane Abbott, who leapfrogs Andy Burnham and Ed Balls in the first round), it is notable that Ed Miliband's margin of victory increases dramatically from just 1.3 per cent to 8.8 per cent. Since David Miliband won the MPs' section by 140 votes to 122, his share is heavily reduced under a OMOV vote. He also won the party members' section by 66,814 to 55,992, but Ed's huge lead among affiliated members (119,405 to 80,266) means he pulls ahead. 

Given how often it's claimed that he wouldn't have won without the support of the "union barons" (the "block vote" was abolished by John Smith in 1993), Miliband's speech was, among other things, a subtle reminder that it was thousands of individual votes that delivered him victory. 

Here's the new result in full (you can view the actual result here). 

2010 Labour leadership election result under one-member-one-vote

Round One

1. Ed Miliband 125,649 (37.1%)

2. David Miliband 114,205 (33.8%)

3. Diane Abbott 35,259 (10.4%)

4. Ed Balls 34,489 (10.2%)

5. Andy Burnham 28,772 (8.5%)

Round Two

1. Ed Miliband 137,599 (41%)

2. David Miliband 118,575 (35.4%)

3. Ed Balls 40,992 (12.2%)

4. Andy Burnham 38,050 (11.4%)

(Since Abbott was eliminated in the first round in the actual contest, I have had to use Burnham's numbers.)

Round Three

1. Ed Miliband 149,675 (45.3%)

2. David Miliband 127,389 (38.5%)

3. Ed Balls 53,669 (16.2%)

Round Four

1. Ed Miliband 175,519 (54.4%)

2. David Miliband 147,220 (45.6%)

Ed Miliband's margin of victory increases from 1.3 per cent to 8.8 per cent under a one-member-one-vote system. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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