Labour clears Unite of any wrongdoing in Falkirk selection contest

The party says "no organisation or individual has been found to have breached the rules" and reinstates suspended members Karie Murphy and Stephen Deans.

In time-honoured Westminster tradition, Labour has used Friday afternoon to bury bad news. 

Following its internal inquiry into the Falkirk selection row, the party has issued a statement clearing both Unite and the suspended party members Karie Murphy (who stood for selection) and Stephen Deans of any wrongdoing. It said that "no organisation or individual has been found to have breached the rules as they stood at the time". Here's the full statement. 

The Labour Party began an internal process to examine the controversy surrounding the selection of a parliamentary candidate for Falkirk. At each step Labour’s general secretary and NEC have acted quickly to protect the interest of the party.

Since Labour began its internal process key evidence has been withdrawn and further evidence provided by individuals concerned. Karie Murphy and Steve Deans, who were suspended, will now be reinstated as they have not been guilty of any wrongdoing. No organisation or individual has been found to have breached the rules as they stood at the time.

The general secretary has determined that given these circumstances Labour should move to select its candidate for Falkirk West.

These steps will enable Labour in Falkirk without further delay to choose a candidate and prepare for the general election.

Murphy has released a simultaneous statement announcing her withdrawal from the selection.

It is no concidence that the matter has been resolved two days before the start of the TUC conference and a few weeks before Labour's gathering in Brighton. Earlier this week, Unite's Scottish branch warned that it would boycott the Labour conference unless Murphy and Deans were reinstated.

The question that will now be asked is why the row was allowed to escalate to the point that the police were called in if there was no evidence of wrongdoing. There will also be even greater pressure on the party to finally publish its report on the debacle. But most significantly, it will now be far harder for Miliband to defend his trade union reforms, which were entirely framed as a response to the alleged wrongdoing.

Unite general secretary Len McCluskey. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Who benefits, and who loses out, from David Cameron’s housing plan?

The prime minister’s plan to scrap the affordable rental homes requirement, explained.

What has Cameron actually announced about housing today?

In David Cameron’s closing speech to the Conservative Party conference in Manchester today, he announced plans to change the requirements to build affordable rented homes in new developments so developers can build "starter homes" instead of homes to be leased at affordable or social rents. 

The policy is geared toward ensuring that his party meets its campaign pledge of building 200,000 new homes by the close of this parliament, by taking the emphasis off renting (affordable housing requirements usually refer to rented, not owned houses) and onto owning. It should, claims Cameron, take us from “Generation Rent” to “Generation Buy".

What sort of houses will they build instead?

"Starter homes" are homes sold at 80 per cent of market rates to those under 40. These an be sold for a maximum of £450,000 in London, and £250,000 everywhere else. 

That sounds quite good!  

There is a chance that Cameron is right – that removing these obstacles will make developers move through the planning process more quickly, and will help boost the number or houses built. 

But (and this is a big but): most predictions so far are that this won’t happen, and if it does, it’ll only help a very specific demographic. As my colleague Stephen Bush has already pointed out, the announcement is good politics, but bad policy. It makes it look like Cameron is doing something about the housing crisis, while scoring points with big property developers along the way.

My colleague Jonn Elledge, meanwhile, notes that this system could actually slow down housebuilding, as the houses will take longer to sell than they would to let. Moreover, if housebuilding is more profitable in the long run, this will push up land – and therefore house – prices. 

Who'll benefit?

Tory voters and their children, in a nutshell. The starter homes will mostly be one or two bedrooms, and will be aimed at working couples.

Shelter calculated earlier this year that a couple would need a combined income of £76,957 in London and £50,266 in the rest of the UK to afford one of these homes, which makes it clear that they're aimed at well-off professionals. If you're in a stable relationship, earn £40,000 or £26,000 a year each and are looking to get on the housing ladder, you're in luck. 

Who won't it help? 

Everyone else. Under this policy, the Conservatives are effectively redefining “affordable”, just as they co-opted the phrase “living wage” earlier this year. By most peoples' definitions, a housing option only available to those with access to £80,000 in earnings a year is not affordable. The situation outside London is a little better. 

That’s not to say the affordable housing requirements were perfect before – these, too, were defined by some councils as 80 per cent of market rents, which in many places equates to anything but affordable. Yet removing the requirement for affordable rentals leaves nothing for those unable to afford to buy, leaving the squeezed lower-middle (and most young people) increasingly in the lurch.

Barbara Speed is a technology and digital culture writer at the New Statesman and a staff writer at CityMetric.