Miliband needs to go much further to restore confidence

The Labour leader must use this moment to emancipate himself from the machine that won him the job in the first place.

Ed Miliband is at a fork in the road. Plainly he cannot go back, by which I mean he cannot pretend that there is nothing of great significance to see in the row over the Falkirk selection – that it was a rogue case; single bad apple etc.

Len McCluskey’s attack on the Labour leadership – accusing the party of smearing Unite and betraying its trust – bars that route. Besides, every Labour activist, member, MP and any journalist who has spoken much to any of those people knows there is a systemic problem with the opaque way the apparatus has traditionally operated. They also know there has been a concerted effort by Unite to manipulate that process to increase its control over Labour. So when McCluskey implies the party leadership is involved in some nasty plot to be beastly to the union and that Unite, in other words, are the victims of a conspiracy, he is directly challenging Miliband’s authority. He is saying, in effect: "You are not the master of this situation and have no control over how it will end; so let me make this easy – back down, and it ends." Except, of course, it won’t.

So the choice for Miliband is between prolonged managed crisis and full-blown confrontation. It is between hoping that this can be made to go away with some judicious, calculated moves (Miliband’s standard modus operandi) or using the situation to open a whole new chapter in his leadership.

Miliband might think that Tom Watson’s resignation, freezing the Falkirk selection process and ending the system that allows unions to buy up bundles of party membership will signal determination to get a grip. He may believe that the necessary resolve is indicated with some firm words, whether from his own mouth or through a spokesman or shadow cabinet ally, saying dodgy selections will not be tolerated. If so, he is wrong.

Judging by my conversations with some Labour MPs in the past 24 hours, I’d say Miliband has to go much, much further to restore confidence. This isn’t about whether he supports the union link or whether he should be acquiescing to Tory attacks on the left. Nor is it about mechanisms to ensure more "working class" candidates are selected. (Of course, in that argument, class is usually a category of ideology, not background or income. The people defending Unite on those terms aren’t hankering after the next generation of working class Alan Johnsons, Alan Milburns or Hazel Blears.)

What this is really about is Ed Miliband’s capacity to be a leader at all – to emancipate himself from the machine that won him the job in the first place and that has helped consolidate his position, but at a heavy price. A superficial unity was achieved but there was no intellectual or ideological harmony, no reconciliation between factions, no meaningful synthesis of ideas and, as a result, no clarity of direction. As I wrote in this week’s magazine, Miliband is desperate to be a candidate who talks about the future, but the Labour Party is still tangled up in a way of doing politics that reeks of a joyless, airless, stale past.

Worse, it looks to many people inside the party and beyond as if Miliband has been shrinking, not growing into the job. The cavalier and patronising tone of Watson’s resignation letter has not gone unnoticed. Between the lines, Labour MPs are reading a message of casual disregard: sorry mate, all got a bit tricky, can’t be bothered anymore, good luck with that whole 'leadership' thing, see ya around.

There is a feeling around the parliamentary Labour party today that Watson and McCluskey are threatening to take their ball home if the game can’t be played by their rules. And there is concern that Miliband is looking like the weedy kid in the playground who will be left standing alone, unpicked to play on any team. As one shadow minister, a despairing Ed supporter, put it to me last night: "It’s time to stand up to the bullies now and say clearly, 'f--- off'".

Raising the tone a bit, I’d say this is starting to feel like Ed’s Prince Hal moment. There is the famous scene at the end of Henry IV Part II when the young Prince comes away from his coronation and is accosted by Falstaff – the ribald villain whose company he kept through the years of misspent youth. Falstaff has been waiting for this moment, thinking he will be in with the new King and enjoy grotesque and fabulous privileges. But Hal surprises everyone by cutting his old crony down. "I know thee not old man," he says.

Well, Ed Miliband needs that kind of moment. He needs something that will signal the beginning of a new phase in his leadership; that he has the confidence and the vision to govern in a better, more open, more imaginative way. At the moment it looks as if it is Falstaff who is getting the last word, saying to the new King: "Thanks for the ride but, frankly, I’ve got better things to do." And if Henry IV Pt II had ended like that, there would never have been a King Henry V.

"It looks to many people inside the party and beyond as if Miliband has been shrinking, nor growing into the job." Photograph: Getty Images.

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

Photo: Getty
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Sooner or later, a British university is going to go bankrupt

Theresa May's anti-immigration policies will have a big impact - and no-one is talking about it. 

The most effective way to regenerate somewhere? Build a university there. Of all the bits of the public sector, they have the most beneficial local effects – they create, near-instantly, a constellation of jobs, both directly and indirectly.

Don’t forget that the housing crisis in England’s great cities is the jobs crisis everywhere else: universities not only attract students but create graduate employment, both through directly working for the university or servicing its students and staff.

In the United Kingdom, when you look at the renaissance of England’s cities from the 1990s to the present day, universities are often unnoticed and uncelebrated but they are always at the heart of the picture.

And crucial to their funding: the high fees of overseas students. Thanks to the dominance of Oxford and Cambridge in television and film, the wide spread of English around the world, and the soft power of the BBC, particularly the World Service,  an education at a British university is highly prized around of the world. Add to that the fact that higher education is something that Britain does well and the conditions for financially secure development of regional centres of growth and jobs – supposedly the tentpole of Theresa May’s agenda – are all in place.

But at the Home Office, May did more to stop the flow of foreign students into higher education in Britain than any other minister since the Second World War. Under May, that department did its utmost to reduce the number of overseas students, despite opposition both from BIS, then responsible for higher education, and the Treasury, then supremely powerful under the leadership of George Osborne.

That’s the hidden story in today’s Office of National Statistics figures showing a drop in the number of international students. Even small falls in the number of international students has big repercussions for student funding. Take the University of Hull – one in six students are international students. But remove their contribution in fees and the University’s finances would instantly go from deficit into debt. At Imperial, international students make up a third of the student population – but contribute 56 per cent of student fee income.

Bluntly – if May continues to reduce student numbers, the end result is going to be a university going bust, with massive knock-on effects, not only for research enterprise but for the local economies of the surrounding area.

And that’s the trajectory under David Cameron, when the Home Office’s instincts faced strong countervailing pressure from a powerful Treasury and a department for Business, Innovation and Skills that for most of his premiership hosted a vocal Liberal Democrat who needed to be mollified. There’s every reason to believe that the Cameron-era trajectory will accelerate, rather than decline, now that May is at the Treasury, the new department of Business, Energy and Industrial Strategy doesn’t even have responsibility for higher education anymore. (That’s back at the Department for Education, where the Secretary of State, Justine Greening, is a May loyalist.)

We talk about the pressures in the NHS or in care, and those, too, are warning lights in the British state. But watch out too, for a university that needs to be bailed out before long. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.