Miliband's gamble on union funding could cost Labour millions - but it is one he had to take

If the Labour leader is to be a consistent supporter of democracy and transparency, he cannot defend a system that allows unions to donate millions from their members without permission.

Ed Miliband's decision to support a new opt-in system of trade union funding for Labour is by some distance the biggest gamble he has taken since becoming party leader. At present, members of affiliated unions merely have the right to opt-out of paying the political levy (a portion of which goes to Labour) but under the new system they would be required to give their explicit consent. This reform, as I argued yesterday, is entirely necessary if Miliband is to be a consistent supporter of democracy and transparency.

At present, of the 15 unions affiliated to Labour, Unison is the only one to allow new members to choose whether or not they contribute to the party when they sign up. Only two others, the Musicians’ Union and USDAW, mention the existence of a political fund (but do not mention Labour) and six affiliated unions, including Unite and the GMB, don’t mention Labour at all on either the "about us" or membership sections of their website. As a result, while all members have the right to opt-out of paying the levy, it is far from easy for them to do so (just 10 per cent do) and many will not even be aware of its existence. It is this arrangement that allows the Tories to argue that unions such as Unite (just 37.5 per cent of whose members vote Labour) dupe workers into subsidising the party.

In his speech tomorrow, Miliband will say:

I do not want any individual to be paying money to the Labour Party in affiliation fees unless they have deliberately chosen to do so. I believe we need people to be able to make a more active, individual, choice on whether they affiliate to the Labour Party.

But while this move will do much to enhance his reformist credentials, it could prove to be the most costly decision he ever takes. Labour currently receives around £8m a year in affiliation fees from 2.7 million levy-payers, but this total is likely to fall dramatically if members are required to opt-in; one party source told me that he estimated that it would cost Labour as much as £5m. In addition, as Mark Ferguson points out, if only hundreds of thousands or tens of thousands of trade unionists choose to become affiliates it will be harder for the unions to justify remaining affiliated at all.

Set against this are the political benefits Miliband will reap. An opt-in system will make it easier to justify exempting union affiliation fees from the £5,000 cap on donations previously proposed by Labour on the grounds that they should be treated as an aggregate of individual members' contributions, rather than as one lump sum. As a Labour source told me: "It will allow us to frame the Tories as the party of big money and us as the party of millions of working people." (Although, as I noted above, the danger is that nothing like "millions" will affiliate.) The Conservatives' resistance to party funding reform will look more self-interested than ever.

Requiring trade unionists to opt-in will also force unions to make a more explicit and positive case for supporting Labour, with the possibility of much greater individual engagement with the party. In the 2010 leadership election, turnout among trade unionists was just 9 per cent, with 15 per cent of ballots spoilt, in most cases because workers failed to state that they agreed with "the aims and values" of the party.

What remains unclear is how the new system will be introduced. Labour is briefing that it does not favour a change in the law, with the expectation being that unions will introduce the measure voluntarily. But in an article for today's Guardian, Len McCluskey comes out strongly against the reform, writing that it would "require Labour to unite with the Tories to change the law, would debilitate unions' ability to speak for our members and would further undermine unions' status as voluntary, and self-governing, organisations." Other general secretaries are likely to be equally sceptical.

There will be many in Labour who hope that they prevail. And they have a point. The opt-in system should be supported as a matter of democratic principle but Labour has just sacrificed millions in funding and one of its key bargaining chips in party funding negotiations.

Miliband has calculated that he will derive greater benefit from taking the moral high ground and removing the stain of big money from the party. For Labour's sake, he had better be right. 

P.S. While the change to union funding is by far the most significant reform planned by Miliband, he will also use his speech this morning to announce that Labour will hold a primary to select its 2016 London mayoral candidate and in seats where the local party has few members or needs to be "re-energised".

In addition, he will promise to introduce a new code of conduct for those seeking parliamentary selection, a cap on spending by candidates and organisations operating on their behalf (including the unions) and standard constituency agreements with trade unions so that no one can be subjected to undue local pressure.

Ed Miliband makes a speech on the high street in Worcester town centre on April 25, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The joy of only winning once: why England should be proud of 1966

We feel the glory of that triumphant moment, 50 years ago, all the more because of all the other occasions when we have failed to win.

There’s a phrase in football that I really hate. It used to be “Thirty years of hurt”. Each time the England team crashes out of a major tournament it gets regurgitated with extra years added. Rather predictably, when England lost to Iceland in Euro 2016, it became “Fifty years of hurt”. We’ve never won the European Championship and in 17 attempts to win the World Cup we have only won once. I’m going to tell you why that’s a record to cherish.

I was seven in 1966. Our telly was broken so I had to watch the World Cup final with a neighbour. I sat squeezed on my friend Colin’s settee as his dad cheered on England with phrases like “Sock it to them Bobby”, as old fashioned now as a football rattle. When England took the lead for the second time I remember thinking, what will it feel like, when we English are actually Champions of the World. Not long after I knew. It felt good.

Wembley Stadium, 30 July 1966, was our only ever World Cup win. But let’s imagine what it would be like if, as with our rivals, we’d won it many times? Brazil have been World Champions on five occasions, Germany four, and Italy four. Most England fans would be “over the moon” if they could boast a similarly glorious record. They’re wrong. I believe it’s wonderful that we’ve only triumphed once. We all share that one single powerful memory. Sometimes in life less is definitely more.

Something extraordinary has happened. Few of us are even old enough to remember, but somehow, we all know everything that happened that day. Even if you care little about the beautiful game, I’m going to bet that you can recall as many as five iconic moments from 50 years ago. You will have clearly in your mind the BBC commentator Kenneth Wolstenholme’s famous lines, as Geoff Hurst tore down the pitch to score his hat-trick: “Some people are on the pitch. They think it’s all over. It is now”. And it was. 4 - 2 to England against West Germany. Thirty minutes earlier the Germans had equalised in the dying moments of the second half to take the game to extra time.

More drama we all share: Geoff Hurst’s second goal. Or the goal that wasn’t, as technology has since, I think, conclusively proved. The shot that crashed off the cross bar and did or didn’t cross the line. Of course, even if you weren’t alive at the time, you will know that the linesman, one Tofiq Bakhramov, from Azerbaijan (often incorrectly referred to as “Russian”) could speak not a word of English, signalled it as a goal.

Then there’s the England Captain, the oh-so-young and handsome Bobby Moore. The very embodiment of the era. You can picture him now wiping his muddy hands on his white shorts before he shakes hands with a youthful Queen Elizabeth. Later you see him lifted aloft by his team mates holding the small golden Jules Rimet trophy.

How incredible, how simply marvellous that as a nation we share such golden memories. How sad for the Brazilians and Germans. Their more numerous triumphs are dissipated through the generations. In those countries each generation will remember each victory but not with the intensity with which we English still celebrate 1966. It’s as if sex was best the first time. The first cut is the deepest.

On Colin’s dad’s TV the pictures were black and white and so were the flags. Recently I looked at the full colour Pathe newsreel of the game. It’s the red, white and blue of the Union Jack that dominates. The red cross of Saint George didn’t really come into prominence until the Nineties. The left don’t like flags much, unless they’re “deepest red”. Certainly not the Union Flag. It smacks of imperialism perhaps. In 1966 we didn’t seem to know if we were English or British. Maybe there was, and still is, something admirable and casual about not knowing who we are or what is our proper flag. 

Twelve years later I’m in Cuba at the “World Festival of Youth” – the only occasion I’ve represented my country. It was my chance to march into a stadium under my nation’s flag. Sadly, it never happened as my fellow delegates argued for hours over what, if any, flag we British should walk behind. The delegation leaders – you will have heard of them now, but they were young and unknown then – Peter Mandelson, Trevor Phillips and Charles Clarke, had to find a way out of this impasse. In the end, each delegation walked into the stadium behind their flag, except the British. Poor Mandelson stood alone for hours holding Union Jack, sweltering in the tropical sun. No other country seemed to have a problem with their flag. I guess theirs speak of revolution; ours of colonialism.

On Saturday 30 July BBC Radio 2 will commemorate the 50th anniversary of the 1966 World Cup Final, live from Wembley Arena. Such a celebration is only possible because on 16 occasions we failed to win that trophy. Let’s banish this idea of “Fifty years of hurt” once and for all and embrace the joy of only winning once.

Phil Jones edits the Jeremy Vine Show on BBC Radio 2. On Saturday 30 July the station celebrates the 50th anniversary of the 1966 World Cup Final live from Wembley Arena, telling the story of football’s most famous match, minute by minuteTickets are available from: www.wc66.org