The Obama polling that inspired Labour's cost of living offensive

While Romney led on managing the economy and reducing the deficit, Obama led on living standards. Labour believes the latter is the key to victory in 2015.

Before Ed Miliband announced his plan to freeze energy prices for 20 months from May 2015, he and his aides knew that it would "be big". They had long been struck by polling showing that rising gas and electricity bills were voters’ primary concern, ranked above wages, employment and housing. But even they have been surprised by the extent to which the policy has defined political debate since the conference season. Three weeks on from Miliband’s speech, the Labour leader's team believe it has had even more impact than George Osborne’s 2007 pledge to raise the inheritance tax threshold to £1m, with "huge cut through to the public" in the words of one aide. (A poll published yesterday showed that voters rate it above all the other policies announced by the parties during the conference season.) To their satisfaction, the Tories have struggled to settle on a consistent line of attack, unsure whether to dismiss it as a "gimmick" or as dangerously "left-wing", or to match it in some form.

The policy was devised by Greg Beales (jokingly named "Mr Freeze" by his colleagues), Miliband’s director of strategy and planning, who had long urged the party to shift its focus away from the macroeconomy and towards living standards. It was a reorientation inspired by Barack Obama’s 2012 election campaign. In meetings with the Labour team in London and Washington DC, Obama aides including his pollster Joel Benenson emphasised how important the president’s stance on living standards had been to victory in tough times. A report on the election by the veteran Democrat Stan Greenberg for Miliband pointed to polls showing that while Mitt Romney had led on "handling the economy"(51-44%) and "reducing the federal budget deficit" (51-37%), Obama had led on understanding "the economic problems ordinary people in this country are having" (51-43%) and on "looking out for the middle class" (51-40%).

This left-right split is mirrored in the UK, where a recent ComRes poll found that voters think the Conservatives (42%) are more likely than Labour (33%) to maintain economic growth and keep public spending under control (47-28%), but also that they believe their own family would be better off under Labour (41-31%).

Labour is confident this trend will favour it in 2015. As the economy enters a post-crisis phase, the party believes voters will become less concerned with macro issues and more concerned with whether their family is sharing in the proceeds of growth.

After missing their original target of eliminating the structural deficit in one parliament, the Tories have sought to turn economic failure into political success by emulating Obama’s 2012 campaign message and urging voters to let them "finish the job". But they have failed to recognise that Obama was referring not to government borrowing but to living standards. As for the warning "not to give the keys to the guys who crashed the car in the first place" – similarly inspired by the US president – a Labour aide pointed out to me that Obama "actually ran on that line in the 2010 midterms and it was a disaster".

The Tories have derided Miliband’s focus on the "cost of living" as a distraction from the primary task of "fixing" the economy, but this message is ill suited to a time when 11 million people have had no increase in their real earnings since 2003. Aware of this, the Tories are preparing a barrage of cost-of-living measures for the Autumn Statement but, more than at any other point since 2010, they will be forced to fight on enemy territory. 

Barack Obama waves to supporters after his victory speech at McCormick Place on election night November 6, 2012 in Chicago, Illinois. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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What's going on in Northern Ireland?

Power-sharing and devolved rule are under threat. What's going on? Ciara Dunne explains. 

The UUP will formalise their decision to withdraw from the Northern Ireland executive on Saturday. The DUP then announced that it may consider voting to remove Sinn Fein from the executive effectively ending or at least suspending devolution. This is due to a statement by PSNI chief constable George Hamilton stating that former IRA member Kevin McGuigan may have been murdered by people connected to the Provisional IRA (PIRA). However Hamilton also stressed that there was no evidence to prove that the murder occurred due to PIRA orders and there are claims that it was a personal vendett.

The UUP declaring that they will withdraw from the Executive is not particularly destructive. They only have one minister and their vote share has been steadily declining since they signed the Good Friday Agreement to the benefit of the DUP. By acting so dramatically, they run the risk of this seeming like the death rattle of a party trying to remain relevant in a world so different from its heyday rather than a principled stand to protect the fundamentals of the Good Friday Agreement.

Nesbitt voiced disgust that the IRA was still in existence. However the IRA is not one group and many of its splinter groups such as the Continuity IRA (CIRA) and Real IRA (RIRA) didn’t sign up to the Good Friday Agreement and have been active since it. They were not the only paramilitary groups that did not sign up, fragments of extremism have existed since the PIRA decommissioned and it seems likely that they incorporated those who had been PIRA members who were disillusioned by the agreement. Bertie Ahern, former Taoiseach and Good Friday Agreement negotiator, explained while the PIRA had to decommission as part of the agreement, for various reasons it was allowed to exist in a non-armed state. News of its existence shouldn’t come as a shock to the only major unionist party that engaged in Good Friday Agreement negotiations. If the PIRA were proved to be armed and active then this response would be understandable but that is not the case.

What this stand does however give the UUP is a unique selling point compared to theirwe rivals the DUP and it can somewhat tackle the perception some have that the UUP betrayed the unionist community when it agreed to work with Sinn Féin in government.

The DUP has been less drastic. Although they have stated that they would consider pulling out of government, they have described it as temporary suspension of government rather than a total breakdown of trust. Jeffrey Donaldson, a DUP MP, said that if they are to continue to power share with Sinn Féin, they must ensure the PIRA issue dealt with ‘in terms that gives everyone the reassurance that this isn’t going to happen again’. This is a reasonable request and something Sinn Féin must do. They should be unwavering in their condemnation of any paramilitary organisations. However so far they haven’t done otherwise, several senior figures have denied that the PIRA have rearmed. Pearse Doherty, a prominent Sinn Féin TD, insisted that when it came to the IRA “the war is over, they’re not coming back”.

The best way to tackle paramilitaries is to tackle the reasons people joined them. This can be done not by threatening to withdraw from the government but standing together against sectarianism. Parties must ensure that there is a functioning government that works for the good of everyone and gives people a genuine stake in society. It is important that representatives of both communities condemn paramilitaries, in actions as well as words. All parties will soon have the opportunity to move away from old associations, as the old guard age and move aside and the younger members who are untainted by such associations, take charge of the party.

However, it is vital that parties take a considered stance in anything controversial for this to work. In this case, it is not yet certain whether the connections are historical or current. Garda Commissioner Noirin O'Sullivan has stated she has no reason to believe that the PIRA are active in the military sense. Bertie Ahern pointed out that it is possible that ‘these atrocities are being done [by those] who might have been on the inside but are now long since on the outside?’ Political posturing could have terrible consequences for the Good Friday Agreement, especially if results in a party with a large electoral mandate being removed from government when there is no proof it has broken the agreement.

If the UUP and the DUP are truly concerned, a more constructive reaction is to push for the reintroduction of the Independent Monitoring Commission (IMC). The IMC monitored paramilitary activity from 2004 to 2011 and its final report stated that ‘transition from conflict is a long slow process’. This latest incident shows this is true and it is likely that the IMC was disbanded too soon. Reconvening the IMC would offer a way to monitor paramilitary activity and to find patterns and evidence rather than allowing a single incident to destroy progress. If reconvened however it should address the issues that resulted in Sinn Féin’s criticism of the body. A more balanced panel, one agreed by all parties, would address this, the previous one was described as three spooks and a lord, but would still add value to the peace process.

If political parties pull out of the power sharing agreement over an incident that the police have not yet connecting to a sophisticated paramilitary organisation with political connections, they are handing extremism a victory while taking democratic choice away from the people of Northern Ireland. The majority of people in Northern Ireland have been clear, both in referendum and in their actions, they want peace and stability. If the parties of Northern Ireland don’t fight to protect this then they are betraying everyone who believed in the Good Friday Agreement and reconciliation.