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.

Getty
Show Hide image

David Cameron calls Sadiq Khan a “proud Muslim” – after trying to link him to Islamic extremism

The PM has his best flipflops on.

After months of backing the nasty racial politics of the Tory mayoral campaign, the Prime Minister has taken the bold move of sharing a platform with infamous moderate Sadiq Khan on the EU Remain campaign trail. Quite a spectacular about-turn.

Compare and contrast, readers.

David Cameron, 20 April 2016

“If we are going to condemn not just violent extremism, but also the extremism that seeks to justify violence in any way, it is very important that we do not back these people, and we do not appear on platforms with them. And I have to say, I am concerned about Labour’s candidate for Mayor of London, who has appeared again and again and again . . . The Honourable Member for Tooting has appeared on a platform with him [imam Suliman Gani] nine times. This man supports IS.”

David Cameron, 30 May 2016

“Let me first of all congratulate Sadiq on his victory. He talked about his father. He’s the son of a bus driver. I’m the son of a stockbroker, which is not quite so romantic. But he makes an important point about our country. In one generation someone who’s a proud Muslim, a proud Brit and a proud Londoner can become mayor of the greatest city on Earth. That says something about our country. There are still glass ceilings we have got to smash. There’s still discrimination we have got to fight.”

What a difference a month makes, eh?

I'm a mole, innit.