Why Miliband's union reforms are bigger than Clause IV

While the rewriting of Clause IV by Blair was of largely symbolic significance, the changes proposed by Miliband would have dramatic consequences for Labour's funding.

I was just asked by BBC News whether the reforms proposed by Ed Miliband to the Labour-union link could be compared to Tony Blair's rewriting of Clause IV in 1994. My response? Yes, but they're bigger.

While Blair's decision to revise Clause IV, which committed Labour to "common ownership of the means of production, distribution and exchange", was of immense symbolic significance it changed little in practice. Labour had already effectively abandoned wholesale nationalisation and no one would have expected Blair to pursue this policy as prime minister. 

By contrast, the changes proposed by Miliband, most notably the introduction of an opt-in system for trade union members' donations, will have dramatic consequences for Labour. As I revealed earlier, the party estimates that it could lose as much as £5m of the £8m it currently receives in affiliation fees. The hope is that this reform will force the Tories to agree to party funding reform, including a £5,000 cap on individual donations, but it remains the biggest gamble of Miliband's leadership. It's for that reason that Blair himself was so fulsome in his praise this morning. 

Ed Miliband attends the launch of mental health charity MindFull on 5 July, 2013 in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty
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Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.