Miliband must not lose control of Labour's EU referendum policy

Shadow minister Ian Austin's dramatic call for an in/out referendum next year shows how party unity is fraying.

While Westminster digested the resignation of Tom Watson, an extraordinary intervention by shadow work and pensions minister Ian Austin emerged. Writing in his local paper The Express and Star, Austin, a close friend and former flatmate of Watson's, broke ranks to call for an in/out EU referendum on the same day as next year's European elections. With no attempt to maintain any pretence of unity, he wrote:

[T]he truth is that the UK needs to decide and I would prefer it to do so more quickly. I know this isn't Labour Party policy but my view is that we should have a referendum next year on the same day as the European elections.

On the day that the Tories vote on James Wharton's private member's bill guaranteeing an EU referendum by 2017, and as they seek to frame Ed Miliband as too "weak" to lead his party, this is political gold for David Cameron. While frontbenchers, including Ed Balls and Jim Murphy, have previously hinted that they believe a referendum is inevitable (and desirable), none have gone as far as Austin. The more open Labour divisions on Europe become, the harder it will be for Miliband to mock those of the Tories. Indeed, the impression of Labour disunity has the consequence of reinforcing Conservative unity. 

The view among Labour MPs is that at some point before the next general election, Miliband will have to signal that an EU referendum would be held in the first term of a Labour government. The Labour leader has already pledged to keep the coalition's "referendum lock", which is designed to ensure a vote is triggered whenever significant powers are transferred to Brussels.

Under the 2011 European Union Act, this would be a referendum on the new treaty/powers but as Raf noted earlier this week, Nick Clegg has already signalled that, in his view, it would need to be an in/out vote. The likelihood is that Miliband will eventually do the same and, in addition, pledge to hold a referendum even if no major powers are transferred. But when this intervention comes, it will have to be at a moment of Miliband's choosing. It was the panic with which Cameron agreed to bring forward the draft referendum bill that allowed Labour to present him as a leader who had lost control. If Miliband is to avoid the same fate, he must not tolerate any more interventions like Austin's. 

Ed Miliband speaks at the CBI's annual conference on November 19, 2012 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

0800 7318496