GMB head feigns innocence over £1m Labour funding cut

Paul Kenny claims he's just doing what Miliband wants but his move was an unambiguous vote of no confidence in the Labour leader's reforms.

GMB general secretary Paul Kenny chose to feign innocence when he arrived at Portcullis House for his meeting with Ed Miliband earlier today, the day after his union announced that it was cutting its affiliation fees to Labour from £1.2m to £150,000. "What's all the fuss over? All we're doing, if you like, is going towards what Ed says he wants," he remarked

But as Kenny knows, the objection is that he has pre-emptively disaffiliated 88% of the union's political levy-payers from Labour, rather than trying to persuade more to sign up once an opt-in system is introduced. It was an unambiguous vote of no confidence in Miliband's reforms.

In its statement yesterday, the GMB, the third-largest union, also warned of "further reductions in spending on Labour party campaigns and initiatives". For Labour, which relies on large one-off donations from the unions to fund its general election campaigns, it was an ominous threat. 

Privately, however, some in the party are more sanguine. They regard Kenny's move as a negotiating tactic designed to deter Miliband from reducing the unions' voting power in leadership elections and at party conferences. The GMB is not due to implement the funding cut until January, leaving Miliband wtih time to reach an agreement. But the dilemma is already becoming clear: does Miliband pursue comprehensive change and risk losing even more funding, or does he compromise and risk being accused of bottling reform? 

 

A GMB member protests outside parliament over cuts to public sector pensions. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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