Miliband's party funding sacrifice has opened the door to real reform

If Labour can hold its nerve, Miliband's plan could finally get big money out of British politics.

The GMB’s decision to slash its affiliation fees to Labour – by top-down decision rather than by asking their members – certainly might seem to support George Eaton’s fears about Ed Miliband’s proposed changes to the union link. Eaton fears the Tories and Lib Dems may even impose statutory change on us. A different view would be that Miliband has started a process which, if we can hold our nerve, could finally get 'big money' out of British politics.

Every attempt to reform party funding has been blocked by two golden rules. First, change must be agreed, not unilaterally imposed by the governing party. Labour observed this scrupulously during its long years of huge majorities. Second, no one party would weaken its own position without getting concessions from the others. Between them, Paul Kenny and Ed Miliband have torn up the second rule.  It’s this which opens the door to change.

Contrary to briefings from Nick Clegg’s office, the recent cross-party talks did not fail, let alone collapse due to Labour intransigence. Texts of a possible draft agreement on principles were still being exchanged when Clegg unilaterally ended the talks. His dishonest decision to switch attention to union funding is a political tactic which suits both the Lib Dems and the Tories. And it may well be that they will try to use the Lobbying Bill to impose changes on Labour’s relations with the unions.

But consider Labour’s current position. Labour is committed to getting big money out of politics. (So, according to the Coalition Agreement, are the Tories and the Lib Dems). Trade union money has very different origins to that of wealthy individuals but discretionary union donations must be seen as big money. Today’s events have surely driven home that union leaders are among the few hundred powerful individuals who effectively determine how much money British political parties get and what they get it for. With his recent initiative, Ed Miliband has said he wants members of union political funds to positively affirm that they want their money to go to Labour. But for over a year he has been also saying he is willing to limit discretionary donations from union general secretaries or political committees – as part of an overall agreement to limit donations from individuals, companies and unions to £5,000 per annum. In other words, Labour has a tough and credible position which really would take big money out of politics.

This leaves the Tories defending, in principle, big private donations as the best way of funding democracy. Their idea of a limit is £50,000 per annum, or £250,000 per individual every Parliament, which only goes to show that the Tory idea of what constitutes big money is completely out of touch with the average voter. And most voters find the Tories' immersion in the vested interests of private donors far more offensive than Labour’s public and historic union links. While Labour’s union link is at root political and will survive whatever the financial links, Conservative dependence on private finance goes to the core of how its supporters see power and influence operating in government. Labour should ruthlessly expose this central weakness in the Tories’ DNA.

It’s always been assumed - in the Hayden Phillips negotiations, the Kelly Report and the cross-party talks – that donations could only be capped if large sums of public money came in to compensate. The unpopularity of that idea has been the reason parties have used to keep things as they are.

We now have a chance to change that logic and campaign straight forwardly for an unconditional £5,000 donation limit. To win the politics, the risk has to be taken that we give up big money and make do with much less. This logjam has blocked reform for too long and Ed Miliband’s initiative has changed the rules of the game. Maybe the public would be more open to support finance for a functioning democracy if they first knew we were determined to wean ourselves off big money and all it represents.

Meanwhile, if the coalition do impose change on Labour they will have set aside the first golden rule – proceed by agreement. If they do, they could hardly complain if Labour campaigned on a manifesto promise to impose a £5,000 donation limit and much tighter controls on spending. 

John Denham is the Labour MP for Southampton Itchen and a former cabinet minister

Ed Miliband delivers his speech on reforming the Labour-trade union link at The St Bride Foundation in London earlier this week. Photograph: Getty Images.

John Denham was a Labour MP from 1992 to 2015, and a Secretary of State 2007 to 2010. He is Director of the Centre for English Identity and Politics at Winchester University

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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