Liam Byrne fights for his job with crowd-pleasing speech

After months of rumours that he's set for the chop, the shadow work and pensions secretary threw blow after blow at the Tories.

Liam Byrne is not going down without a fight. After months of rumours that he's set for the chop in the forthcoming reshuffle, the shadow work and pensions secretary delivered an unusually fiery speech that rivalled Len McCluskey's on the decibel meter.

Byrne, one of "the Blairites" that McCluskey suggested in his interview with me should be ignored or sacked, threw numerous crowd-pleasing blows at the Tories. He declared that "young people fighting for work in East Birmingham have got a damn sight more grit than you need to get through Eton College", assailed Michael Gove for "blaming the poor for the temerity to turn up at a food bank" ("he should be ashamed") and remarked of Iain Duncan Smith: "They say to err is human. But if you want someone to really screw it up you send for Iain Duncan Smith. And Conference that's why we need to fire him."

After Ed Miliband's announcement on the bedroom tax on Friday, Byrne was able to proudly declare that Labour would repeal the measure, a pledge that he had long pushed for against a sceptical Ed Balls. Again seeking to win over those on the Labour left for whom he has become something of a hate figure, he said: "And I say to David Cameron, Atos are a disgrace, you should sack them and sack them now. And yes Conference we say the Bedroom Tax should be axed and axed now and if David Cameron won't drop this hated tax, then we will repeal it."

Whether this is enough for Byrne to stay in his post remains doubtful. The view among many in the party is that if Labour is to reach a position on welfare that both its MPs and the electorate can live with, then it is essential for Miliband to appoint a shadow work and pensions secretary who is more trusted by backbenchers. Just as only Nixon could go to China, so only a less "Blairite" figure can sell Labour's new position on welfare to a sceptical PLP. Others points out that his continued presence on the frontbench provides the Tories with repeated opportunities to remind voters of his infamous "I'm afraid there is no money" note. In the words of one MP, "it is the gift that keeps giving."

With Miliband keen to promote "the new generation", and avoid his government looking like a set of New Labour retreads, Byrne remains one of those likely to be asked to make way. Rachel Reeves, who has long been in line for a promotion, and who is one of the party's sharpest economic brains, is the most obvious candidate to replace him.

Liam Byrne delivers his speech at the Labour conference in Brighton. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The clever ideological trick that could save the Labour party

The Co-operative party could suddenly get a lot more popular. 

It’s do or die for the party’s moderate MPs, who have lost the fight for the soul of Labour and must quickly move on. 

The 172 Labour MPs who backed a no-confidence vote in Jeremy Corbyn earlier this year may not like their newly elected party leader much, but they loathe John McDonnell. 

So it is little surprise that one of them, John Woodcock, reportedly looked “sick to the stomach” when the Shadow Chancellor tenderly invited him for a cuppa in his office following the leadership election result at conference. Reading the tea leaves tells me those talks aren’t going to go well.  

Yet moderate MPs would do well to revisit McDonnell’s off-the-cuff comments from a few years back: “I’m not in the Labour party because I’m a believer of the Labour party as some supreme body or something God-given or anything like that,” he told a small audience in 2012. “It’s a tactic. It’s as simple as that. If it’s no longer a useful vehicle, move on.” 

Two feather-spitting former frontbenchers called for McDonnell’s resignation when these comments emerged in March, saying they revealed his Trotskyist tendencies. "The context (a hard-left gathering) and the company (which included Gerry Downing, expelled from Labour for his comments on 9/11) didn’t make for great publicity, no," a Leader’s Office staffer privately confesses. 

But McDonnell is right: There is nothing necessary, natural or divinely ordained about Labour’s existence lest it can get things done. Which is why the parliamentary Labour party cannot botch its next attempt at power. 

In the wake of Corbyn’s re-election, Labour MPs face a fork-in-the-road: fight this civil war until its bitter end - play the long game, wait until Labour loses the next general election and challenge Corbyn again - or start afresh. 

It is a bleak, binary choice, akin to a doctor delivering test results and declaring the illness is terminal as feared: the patient can go down fighting and die a slow death, notwithstanding a medical miracle, or instead take part in a pioneering new drug trial. This carries the risk of dying immediately but promises the possibility of life as well. Both options are fraught with danger.

The problem with the first option is that moderates have all but lost the party already. A poll reveals Corbyn won 85 per cent - 15 per cent among members who joined after he became party leader and lost 37 per cent - 63 per cent among those who were members of the party before the last general election. The result: victory by 119,000 votes. 

Corbyn has already announced he wants to give these foot soldiers far greater firepower and told Andrew Marr he had asked the NEC to draft plans for increasing the membership and including it in “all aspects of party decision making”. Labour is transitioning apace into a social movement: free of formal hierarchy and ambivalent about parliamentary power. 

So why wait until 2020? There is every chance that MPs won’t any longer have the power to challenge to Corbyn within four years’ time. If Momentum has its way with reselection and shadow cabinet elections, leading rebels may not be around to begin with. 

Even if MPs mount another leadership challenge, few believe organisations like Saving Labour or Labour First could put together a sizeable enough electorate to outgun Corbyn at the ballot box. He would be voted back in by a landslide. 

The alternative is for MPs to create a new centre-left force. The main plan under consideration is to join the Cooperative party, Labour’s sister party, and sit as a bloc of “double hatted” MPs, with their own policy agenda on Brexit and the economy. This new bloc would apply to the Speaker to become the official opposition. 

Plenty of MPs and members recoil at the idea of a semi-split like this because of the mixed message it would send to voters on the doorstep. "So you don’t have faith in Corbyn, but you’re a Co-op MP campaigning on behalf of his Labour?" Many believe a full-split would be worse. They fear being pitted against Corbyn-backed Labour candidates in local constituencies and splitting the left vote, opening the door to Ukip or the Conservatives in marginal seats. 

But if moderate MPs mean what they say when they warn of total electoral wipeout in 2020, risking a new centre-left grouping is intuitively worth it.  What do they have to lose? And how many more times can Labour’s moderates cry wolf - Labour "risks extinction", Sadiq Khan said yesterday - until voters call their bluff and tell them to quit complaining and fall in line behind their leader? 

While Corbyn’s polling remains disastrous, a Co-op/Labour party would boast a mandate of 9.3m people, a policy agenda in line with Britain’s political centre of gravity and a chance of becoming the official opposition: a risk worth taking in the face of electoral oblivion. 

A handful of battle-bruised MPs are talking about coming together. "Time to unite," a deflated Hilary Benn tweeted this weekend. There is a precedent for this: first past the post means the party has always been composed of uneasy coalitions of different groups - take the trade unionists, liberal cosmopolites and ethnic minorities of the New Labour years - and it is arguably no different now.  

Yet this is not about a coalition of diverse interests. It is about two parties within a party, each of which believes Labour is their rightful inheritance. Of the two, moderates are least likely to gain anything by engaging in an all out war. It is time they took a leaf out of McDonnell’s book and accepted it is time, regrettably, "to move on". 

Gabriel Pogrund is a journalist at The Sunday Times and a Google News Fellow 2016.