Labour and Unite at war: McCluskey accuses party HQ of a "stitch-up"

The Unite general secretary hits back after Labour announces the end of the "union join" scheme and suspends Unite candidate Karie Murphy from the party.

After weeks of criticism over Unite's alleged manipulation of the Falkirk selection process, culminating in the resignation of Tom Watson earlier today, the Labour machine has swung into action tonight. The party has announced the end of the "union join" scheme, which allowed trade unions to pay the first year's subscriptions of party members they recruited, and has suspended Karie Murphy, the Unite-backed candidate in Falkirk, and Stephen Deans, the chair of Falkirk CLP, from the party. Here's the full statement:

“We announced on 26th June that the General Secretary was going to review membership procedures.

“Ed Miliband is determined to uphold the integrity of Parliamentary selections and, therefore, as a result of that review we have several more measures to announce today.

In the light of the activities of Unite in Falkirk we will end the ‘union join’ scheme.

“Union join was established before Ed Miliband became Leader of the Labour Party with the aim of legitimately encouraging ordinary members of trade unions to become members of the Labour Party.

“However, due to the results of Unite in Falkirk it has become open to abuse but also open to attacks from our opponents that damage Labour. 

“In particular it was a mistake to have a scheme where others pay for people to join the party. Ed Miliband has today ended the scheme. Ordinary members of trade unions should join Labour and they will continue to be encouraged to do so, but that cannot be through schemes that can be tied to individual parliamentary selections or open to attack from our opponents.

“We have also suspended two members of the Labour Party from holding office or representing the Labour Party.

“They are: Karie Murphy and Stephen Deans who is the chair of Falkirk CLP.

“There have been allegations that they may have been involved in a breach of Labour Party rules. These relate to allegations concerning potential abuse of membership rules.

“The administrative suspension means that you cannot attend any party meetings and that they cannot be considered for selection as a candidate to represent the Labour Party at an election at any level.”

In a letter to Labour general secretary Iain McNicol this evening, Len McCluskey has responded by accusing the party HQ of a "stitch-up" and demanding an independent inquiry into the Falkirk affair. Here's his letter in full:

"Simply a ‘stitch-up’ [the report] designed to produce some evidence, however threadbare, to justify predetermined decisions taken in relation to Falkirk CLP. 

"Even on the basis of this flimsy report, it is clear that these decisions cannot be justified. There is no emergency which would justify imposing these undemocratic restrictions, since any real problems could easily be addressed before embarking on a parliamentary selection process. 

"The report has been used to smear Unite and its members. Even if the allegations of people being signed up to the party without their knowledge were true, this had nothing whatsoever to do with my union. 
"It is noteworthy that members of the shadow cabinet have been in the lead in initiating this attack upon Unite. Have they had sight of this report while I, the leader of the union put in the frame, has not had the courtesy of a copy? 

"The mishandling of this investigation has been a disgrace. I, however, am obliged to uphold the integrity of Unite, and I can no longer do so on the basis of going along with the activities of a Labour party administration in which I can place no trust. 

"I will therefore be publicly proposing that an independent inquiry be held into all circumstances relating to Falkirk CLP and the conduct of all parties involved, including Unite, the Labour party centrally (including the Compliance Unit) and in Scotland, the officers of the CLP itself, and all those who have sought or are seeking nomination as the Labour PPC. 
"Unite will cooperate fully with such an inquiry, and draw appropriate conclusions from any findings regarding our own behaviour. I trust that you will support such an inquiry, will direct all Labour party employees to cooperate with it and encourage other individuals to do likewise." 

Unite general secretary Len McCluskey. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.