The Tories that Cameron and Osborne need to listen to

Conservative group Renewal's pledge card calls for an increase in the minimum wage, the building of one million homes, free party membership for trade unionists and action against "rip-off companies".

Free party membership for trade unionists, the building of one million homes over the next parliament, an increase in the minimum wage, a "cost-of-living test" for every policy, a cut in fuel duty and a cabinet minister to "take action for the consumer against rip-off companies". The latest set of demands from Len McCluskey? No. Rather, the six proposals that will appear on a New Labour-style pledge card next week from Renewal, the Conservative group aimed at broadening the party's appeal among working class, northern and ethnic minority voters (the launch of which I covered earlier this year).

The group, led by NS contributor David Skelton, has gone further than any other in recognising that the Tories need to dramatically refashion their agenda if they are to ever win a majority again (a feat that has eluded them for 21 years). The party currently has no councillors in Liverpool, Manchester, Newcastle and Sheffield, and just one seat in Scotland. In 2010, it won the support of just 16% of ethnic minority voters.

If it is to improve on this performance next time round, it needs to depart from its traditional script of Europe, immigration and welfare. Voters might share the Tories' views on these issues but they do not share their obsession with them. To win new supporters, the party needs to adopt a relentless focus on living standards. As Skelton notes, "Traditional Labour voters are disenchanted, lack a natural political home, but do not believe the Conservatives are interested in them. We have got to change that perception. We have got to show that we stand up for ordinary working people, and that we are not the party just of the rich or big business. The six issues on the pledge card are designed to show we are on the side of hard-pressed working people."

So, what are the chances of succcess and how worried should Labour be? Renewal enjoys significant support from senior ministers, including Patrick McLoughlin, who wrote the foreword to the collection, and Eric Pickles, who addressed its launch, as well as MPs such as Robert Halfon and Guy Opperman. Its work is also being studied by George Osborne, who appointed Skelton’s former Policy Exchange colleague Neil O’Brien as his special adviser and whose former chief of staff, Matt Hancock, contributed a chapter on "conservatism for the low-paid" to Renewal's recent pamphlet Access All Areas. Several sources have told me that the party is likely to announce a significant increase in the minimum wage at its conference in Manchester next week in a bid to win over low-income groups.

But less than two years away from the election, time is short for the Tories to detoxify their brand. The decision to cut the top rate of tax, to privatise large parts of the NHS and to demonise trade unionists have all added to the damage. But if Renewal's agenda becomes the party's, the long work of winning a hearing among voters who have shunned it for decades will begin. 

David Cameron speaks during an official reception at Downing Street on September 16, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Tom Watson rouses Labour's conference as he comes out fighting

The party's deputy leader exhilarated delegates with his paean to the Blair and Brown years. 

Tom Watson is down but not out. After Jeremy Corbyn's second landslide victory, and weeks of threats against his position, Labour's deputy leader could have played it safe. Instead, he came out fighting. 

With Corbyn seated directly behind him, he declared: "I don't know why we've been focusing on what was wrong with the Blair and Brown governments for the last six years. But trashing our record is not the way to enhance our brand. We won't win elections like that! And we need to win elections!" As Watson won a standing ovation from the hall and the platform, the Labour leader remained motionless. When a heckler interjected, Watson riposted: "Jeremy, I don't think she got the unity memo." Labour delegates, many of whom hail from the pre-Corbyn era, lapped it up.

Though he warned against another challenge to the leader ("we can't afford to keep doing this"), he offered a starkly different account of the party's past and its future. He reaffirmed Labour's commitment to Nato ("a socialist construct"), with Corbyn left isolated as the platform applauded. The only reference to the leader came when Watson recalled his recent PMQs victory over grammar schools. There were dissenting voices (Watson was heckled as he praised Sadiq Khan for winning an election: "Just like Jeremy Corbyn!"). But one would never have guessed that this was the party which had just re-elected Corbyn. 

There was much more to Watson's speech than this: a fine comic riff on "Saturday's result" (Ed Balls on Strictly), a spirited attack on Theresa May's "ducking and diving; humming and hahing" and a cerebral account of the automation revolution. But it was his paean to Labour history that roused the conference as no other speaker has. 

The party's deputy channelled the spirit of both Hugh Gaitskell ("fight, and fight, and fight again to save the party we love") and his mentor Gordon Brown (emulating his trademark rollcall of New Labour achivements). With his voice cracking, Watson recalled when "from the sunny uplands of increasing prosperity social democratic government started to feel normal to the people of Britain". For Labour, a party that has never been further from power in recent decades, that truly was another age. But for a brief moment, Watson's tubthumper allowed Corbyn's vanquished opponents to relive it. 

George Eaton is political editor of the New Statesman.