What sort of prime minister would Miliband make?

For a leader who clearly favours consensus over conflict, Miliband will need to get used to saying 'no' to groups and lobbies who have previously enjoyed an easy ride with Labour.

Part of the reaction to Ed Miliband’s speech earlier this week, signalling seismic changes in Labour’s relations with affiliated trade unions, was the boldness of his move. Not to be rude, but we’re not used to that from Ed. Cautious and incremental steps are what we usually get. It begs the question: what sort of prime minister would he make?

Last Friday, an unnamed former Labour minister told the Guardian that Miliband needed to move decisively in reframing the relationship with the trade unions, following the Falkirk selection debacle. "We need to have a commission that looks at the union link. All the general secretaries need to sign up to it. We need to get to a place where you simply have one category of Labour party members. There should no longer be a formal union affiliation.

"Of course, if unions want to donate to the party they can. Ed is not there yet. But he will be. He acts in a deliberative way. But when he makes a decision he moves very rapidly."

And so it came to pass. Miliband showed he was willing to square-up to Unite and announce changes revolutionising trade union involvement in the party that many observers thought were beyond him. Tony Blair’s glowing tribute was both genuine and generous. So does this week signal the emergence of Miliband 2.0?

Not really. His move was a superb piece of reactive political boldness (it’s hard to think he had such major reform in mind two weeks ago). Opportunistic, rather than instinctive, but decisive, too, when his mind is made up; and being able to react to big events is, after all, the stuff of the premiership.

In an interview last month, Lord Stewart Wood, shadow minister without portfolio and invariably described as Miliband’s consiglieri, offered this assessment of his boss: "In terms of style, Ed is collegiate. He looks for views early, before he makes up his mind. Gordon [Brown] wanted us to respond to his ideas [after] he had already taken them a long way down the line." He added: "Unlike a lot of other politicians, he invites people to give him constructive criticism. He has a desire to improve [and] he solicits views from people across the party."

As a senior adviser to Gordon Brown, and later energy secretary, Miliband was a mainstay throughout 13 years of Labour government and saw first hand the damage done to the government by the Blair/Brown wars. If his "collegiate" style is a reaction to that, then Wood is certainly right about his willingness to learn and improve.

But the government machine he would inherit in 2015 is markedly different to the one he left behind as a cabinet minister in 2010. The social democratic model of the New Labour years is now defunct. It is not enough to throw money at projects and move on to the next thing. Spending cuts and those infernal 'hard choices' will be the order of the day for the foreseeable future.

Prime Minister Miliband will need to speak the "language of priorities" and know a thoroughbred idea from a civil servant’s hobby-horse in order to make his small state socialism work. For a leader who clearly favours consensus over conflict, Miliband will need to get used to saying 'no' to groups and lobbies who have previously enjoyed an easy ride with Labour. Here he can learn from his predecessors.

Blair was good at building an effective team around him, yet there are still too few Milibandites willing to put their shoulder to the wheel for their man. While Gordon Brown ruled by pulling a thousand strings and making the Whitehall machine do his bidding, Miliband often gives the impression of making things up as he goes along. Yet despite this, he is far better prepared for the realities of power than Blair and Brown were in 1997 and his shadow cabinet is one of the most experienced since the Second World War.

Temperamentally, though, Miliband seems closer to President Obama than any of his immediate British predecessors. He is prepared to address vested interests but does so cautiously in closely-scoped terms, witness his criticisms of banks and energy companies, and sometimes seems unsure how far to push things.

Perhaps he should triangulate between Tony Blair’s informal sofa government and Margaret Thatcher’s manic swinging handbag? Where Miliband’s bridge-building style will work well, though, is if there’s another hung parliament in 2015; exercising soft power to build alliances and seek common ground in a way neither Blair nor Brown were well-suited to. For those who balked at the prospect of Prime Minister Miliband a week ago, how he would govern in 2015 has suddenly become a very real preoccupation.

Ed Miliband delivers his speech on reforming the Labour-trade union link at The St Bride Foundation in London earlier this week. Photograph: Getty Images.

Kevin Meagher is associate editor of Labour Uncut and a former special adviser at the Northern Ireland office. 

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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman