Miliband waits in hope that the Tories’ counterfeit consensus on Europe will unravel

MPs who last year wanted the Labour leader to trump Cameron by calling for a snap poll on Europe say the moment has passed.

Conservatives have given up trying to agree on whether Britain should be a member of the European Union. They have settled instead for a lesser harmony, agreeing that the matter should be settled by a referendum. They cheer through parliament a symbolic bill stipulating that such a vote be held by the end of 2017.

This counterfeit consensus has obvious charm for Tory MPs. It allows them to say with a straight face that the party is united on Europe. The moment of choice is deferred. Since the EU is evolving, none but the most determined quitters feel sure that in four years’ time it will still be the kind of union Britain should leave. What Conservatives can say with certainty is that David Cameron wants a referendum and Ed Miliband doesn’t, which feels like a great advantage to a party with an inflated sense of national grievance against Brussels.

The Tories are so proud of their plebiscite pledge that they keep expecting Miliband to copy it. The Labour leader is under frequent pressure to do just that from those on his own side who find their present stance untenable. Officially, the party prefers the prospect of governing without a referendum, while accepting that any new EU treaty would trigger one automatically. Some of the leader’s closest allies concede that something less slippery must be declared before too long.

The range of options is narrowing. Until recently some on the Labour side entertained the idea of hijacking the Tories’ backbench bill with demands for a vote this side of a general election, thereby sowing discord in the Conservative ranks. That ruse was killed when Adam Afriyie, a Tory MP of guileless ambition, tabled just such an amendment and found his colleagues slow to schism.

That reaction convinced Labour provocateurs that there was less mischief to be made in alliance with rebellious Tories than they had previously thought. MPs who last year wanted Miliband to trump Cameron by calling for a snap poll on Europe say the moment for such a gambit has passed. “That particular bus has left the station,” says one shadow cabinet supporter of a referendum.

The next bus – and the one some in Miliband’s entourage are most interested in boarding – leaves next May when there are elections for the European Parliament. Declaring support for an in/out referendum in the run-up to that poll gives Labour cover to say its agenda has been set by the natural rhythms of a campaign timetable. At any other moment, it would too conspicuously be a panicky reaction to Tory taunts.

The need to be seen doing things “on his own terms, in his own time” (as one aide likes to put it) is of paramount importance to Miliband. The Conservatives want to portray him as out of his depth – a peddler of desperate ruses unsuitable for mature government. So the worst of all outcomes for the Labour leader would be a half-hearted manoeuvre in which the political gain of signing up to a referendum is cancelled out by his inability to make it sound like something he really wants to do.

Set against that risk is the folly of fighting a general election campaign in which Cameron can claim to be the only potential prime minister who trusts the people to choose their European destiny. That line may not stir millions of hearts but it might steer some Ukip dabblers back to the Tory fold.

Nigel Farage is keener than anyone for Miliband to sign up to a referendum so that Cameron’s pledge loses its unique sheen. The Ukip leader thrives on the public feeling that the “established” parties are interchangeable and that the only way to make a difference is by voting for none of them. Where Ukip does well, Labour can snatch seats from the Tories, so there is a perverse incentive for Miliband to satisfy Farage, spoiling the potency of Cameron’s referendum by making it a point of banal Westminster concord.

That calculation is part of a general equation governing Labour’s position on referendum: the likelihood of a pledge grows as long as the party’s opinion poll lead stays narrow. Yet changing the policy opens a whole new set of dilemmas for Miliband. He would have to say when he imagines calling the vote and whether, like Cameron, he proposes renegotiating the terms of British membership first. Neither question has an easy answer.

One modest consolation is that Cameron’s renegotiation plans are going nowhere. The Prime Minister has quietly downgraded his ambition from an Anglocentric “repatriation” of powers to a campaign for vaguer pan-EU “reform”. The kind of exceptional status for the UK that hardline Tory sceptics demand isn’t even on the agenda when Cameron meets fellow Continental leaders.

The small troupe of pro-EU Tories support their leader on what appears to be a secret mission to shrink expectations of a new settlement with Brussels. They also hope the prospect of a referendum will provoke business leaders – including Conservative donors – into making the case for staying in the club. (A recent call by the CBI for constructive European engagement is cited as the start of a fightback against the “Brexit” brigade.) The ultimate goal is to shift the party’s centre of gravity back towards pragmatic acceptance of EU membership, leaving the irreconcilables marginalised. “We are smoking out the ones who are definitely voting ‘out’ at all costs,” says one Conservative Europhile.

Many Tories have drunk Cameron’s rhetoric as if it were a Eurosceptic tonic, seemingly unaware that its purpose is to numb their rebellious urges. The anaesthetic draught cannot work forever; the old pangs of betrayal will return. There may be loftier elements in Labour’s European calculations but at their core is a gamble on whether the effects of Cameron’s dodgy potion to unite the Tories wears off before Miliband is forced to serve up a referendum brew of his own.

David Cameron speaks during a press conference at an EU Council meeting on October 25, 2013 in Brussels. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

This article first appeared in the 06 November 2013 issue of the New Statesman, Are cities getting too big?

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Brexit will hike energy prices - progressive campaigners should seize the opportunity

Winter is Coming. 

Friday 24th June 2016 was a beautiful day. Blue sky and highs of 22 degrees greeted Londoners as they awoke to the news that Britain had voted to leave the EU.  

Yet the sunny weather was at odds with the mood of the capital, which was largely in favour of Remain. And even more so with the prospect of an expensive, uncertain and potentially dirty energy future. 

For not only are prominent members of the Leave leadership well known climate sceptics - with Boris Johnson playing down human impact upon the weather, Nigel Farage admitting he doesn’t “have a clue” about global warming, and Owen Paterson advocating scrapping the Climate Change Act altogether - but Brexit looks set to harm more than just our plans to reduce emissions.

Far from delivering the Leave campaign’s promise of a cheaper and more secure energy supply, it is likely that the referendum’s outcome will cause bills to rise and investment in new infrastructure to delay -  regardless of whether or not we opt to stay within Europe’s internal energy market.

Here’s why: 

1. Rising cost of imports

With the UK importing around 50% of our gas supply, any fall in the value of sterling are likely to push up the wholesale price of fuel and drive up charges - offsetting Boris Johnson’s promise to remove VAT on energy bills.

2. Less funding for energy development

Pulling out of the EU will also require us to give up valuable funding. According to a Chatham House report, not only was the UK set to receive €1.9bn for climate change adaptation and risk prevention, but €1.6bn had also been earmarked to support the transition to a low carbon economy.

3.  Investment uncertainty & capital flight

EU countries currently account for over half of all foreign direct investment in UK energy infrastructure. And while the chairman of EDF energy, the French state giant that is building the planned nuclear plant at Hinkley Point, has said Brexit would have “no impact” on the project’s future, Angus Brendan MacNeil, chair of the energy and climate select committee, believes last week’s vote undermines all such certainty; “anything could happen”, he says.

4. Compromised security

According to a report by the Institute for European Environmental Policy (the IEEP), an independent UK stands less chance of securing favourable bilateral deals with non-EU countries. A situation that carries particular weight with regard to Russia, from whom the UK receives 16% of its energy imports.

5. A divided energy supply

Brexiteers have argued that leaving the EU will strengthen our indigenous energy sources. And is a belief supported by some industry officials: “leaving the EU could ultimately signal a more prosperous future for the UK North Sea”, said Peter Searle of Airswift, the global energy workforce provider, last Friday.

However, not only is North Sea oil and gas already a mature energy arena, but the renewed prospect of Scottish independence could yet throw the above optimism into free fall, with Scotland expected to secure the lion’s share of UK offshore reserves. On top of this, the prospect for protecting the UK’s nascent renewable industry is also looking rocky. “Dreadful” was the word Natalie Bennett used to describe the Conservative’s current record on green policy, while a special government audit committee agreed that UK environment policy was likely to be better off within the EU than without.

The Brexiteer’s promise to deliver, in Andrea Leadsom’s words, the “freedom to keep bills down”, thus looks likely to inflict financial pain on those least able to pay. And consumers could start to feel the effects by the Autumn, when the cold weather closes in and the Conservatives, perhaps appropriately, plan to begin Brexit negotiations in earnest.

Those pressing for full withdrawal from EU ties and trade, may write off price hikes as short term pain for long term gain. While those wishing to protect our place within EU markets may seize on them, as they did during referendum campaign, as an argument to maintain the status quo. Conservative secretary of state for energy and climate change, Amber Rudd, has already warned that leaving the internal energy market could cause energy costs “to rocket by at least half a billion pounds a year”.

But progressive forces might be able to use arguments on energy to do even more than this - to set out the case for an approach to energy policy in which economics is not automatically set against ideals.

Technological innovation could help. HSBC has predicted that plans for additional interconnectors to the continent and Ireland could lower the wholesale market price for baseload electricity by as much as 7% - a physical example of just how linked our international interests are. 

Closer to home, projects that prioritise reducing emission through tackling energy poverty -  from energy efficiency schemes to campaigns for publicly owned energy companies - may provide a means of helping heal the some of the deeper divides that the referendum campaign has exposed.

If the failure of Remain shows anything, it’s that economic arguments alone will not always win the day and that a sense of justice – or injustice – is still equally powerful. Luckily, if played right, the debate over energy and the environment might yet be able to win on both.

 

India Bourke is the New Statesman's editorial assistant.