New shadow transport secretary Mary Creagh. Photograph: Getty Images.
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Labour sends Cameron another warning over HS2

New shadow transport secretary Mary Creagh echoes Ed Balls's argument that the £50bn for the project could potentially be better spent elsewhere.

Labour aides were keen to emphasise yesterday that the departure of Maria Eagle, a committed supporter of High Speed 2, as shadow transport secretary did not signal any change in the party's position on the project. But it's worth flagging up the first statement from her replacement Mary Creagh

After the Treasury select committee warned that there were "serious shortcomings" in the economic case for HS2 and called for the project to be suspended until they had been addressed, Creagh said: 

Labour supports the idea of a new North-South rail link, but under this Government HS2 has been totally mismanaged and the costs have shot up to £50 billion.

David Cameron and George Osborne have made clear they will go full steam ahead with this project whatever the cost. Labour will not take this irresponsible approach. There will be no blank cheque for this project or for any project, because we need to ensure it is the best way to spend £50 billion for the future of our country.

The significance of this response is that Creagh has echoed Ed Balls's argument that the funds for the project could potentially be better spent elsewhere. When Balls first made those remarks in his speech to the Labour conference ("the question is – not just whether a new high-speed line is a good idea or a bad idea, but whether it is the best way to spend £50bn for the future of our country"), some in the party suggested that he had overstepped the mark (with Maria Eagle doing her best to distance herself from Balls in her speech), but his words have now been adopted as party policy. 

For Balls, the main attraction of a U-turn on HS2 is that would allow Labour to outspend the Tories in politically vital areas ("building new homes or new schools or new hospitals") while remaining within George Osborne's fiscal envelope. Unless the coalition can significantly reduce the projected cost of the project (as Andrew Adonis has urged it to do), it does now seem a question of when, not if, Labour withdraws its support. 

George Eaton is political editor of the New Statesman.

Photo: Getty
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RMT poised to rejoin the Labour Party

The transport union is set to vote on reaffiliation to the party, with RMT leaders backing the move.

Plans are being drawn up for the RMT (the National Union of Rail, Maritime and Transport Workers) to reaffiliate to the Labour Party in the wake of Jeremy Corbyn’s significant gains in the general election, the New Statesman has learnt.

The union, which represents tube drivers and other workers across the transport sector, was expelled from the Labour Party under Tony Blair after some Scottish branches voted to support the Scottish Socialist Party instead.

But the RMT endorsed both of Corbyn’s bids for the Labour leadership and its ruling national executive committee backed a Labour vote on 8 June.

Corbyn addressed the RMT’s annual general meeting in Exeter yesterday, where he was “given a hero’s welcome”, in the words of one delegate. Mick Cash, the RMT’s general secretary, praised Corbyn as the union’s “long-term friend and comrade”.

After the meeting, Steve Hedley, assistant general secretary at the RMT, posted a picture to Facebook with John McDonnell. The caption read: “With the shadow chancellor John McDonnell arguing that we should affiliate to the Labour Party after consulting fully and democratically with our members”.

The return of the RMT to Labour would be welcomed by the party leadership with open arms. And although its comparably small size would mean that the RMT would have little effect on the internal workings of Labour Party conference or its ruling NEC, its wide spread across the country could make the union a power player in the life of local Labour parties.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.

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