Ed Balls speaks at the CBI conference in London last year. Photograph: Getty Images.
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Balls's pitch to business: Labour can save the UK from EU withdrawal

Shadow chancellor's comments suggest mood in the party is hardening against an in/out referendum.

Ed Balls's interview with Progress, in which he says of the Lib Dems: "I’m not going to let them off the hook", is being presented by some as a retreat from his recent comments on Nick Clegg in my NS interview. But a close reading shows nothing has changed: while remaining fiercely critical of the Lib Dems' record in government (as he was last month), Balls is still no longer making Clegg's head the price of any future coalition agreement. As he says: "He made some remarks over Christmas about personalities. I’m not going to get involved in playing personality politics, I have no personal animosity to Nick Clegg."

Rather than Balls's comments on the Lib Dems, it's his remarks on the EU that are most striking. In the course of rejecting the claim that Labour is "anti-business", he says: 

The most pro-business thing about Labour at the moment is that we are the only pro-European party of government. What the Conservatives have done by putting party interest before national interest is deeply dangerous and actually if you sat around with a group of businesspeople and ask 'what are you most worried about?', they’re worried about a Conservative party allowing us to sleepwalk and drift away from Europe. It’s a massively dangerous proposition. Only Labour can save the country from that Conservative anti-Europeanism.

Balls is certainly right that many businesses are far more worried about the threat of EU withdrawal (as a result of the in/out referendum promised by the Tories in 2017) than they are about Labour's proposed energy price freeze or the reintroduction of the 50p tax rate. Martin Sorrell recently revealed that he and others had told Cameron that "if he were to drop the referendum he would be a shoo-in". That's almost certainly not the case (as Sorrell appeared to forget, most voters support a referendum) but it shows how desperate businesses are for Britain to remain in the EU. 

That Balls has chosen to point out as much is significant. The shadow chancellor is one of the senior Labour figures who has come closest to promising a referendum, warning in 2013 that "if we allow ourselves either to be the 'status quo party' on Europe, or the 'anti-referendum party' on Europe, then we’ve got a problem...I think we would be pretty stupid to allow ourselves to get into either of those positions". But his latest remarks suggest that he believes the national interest demands that Labour unambiguously commit to EU membership.

This shift in tone reflects a wider hardening of the mood against an in/out referendum. As I revealed last week, Labour will almost certainly avoid promising a public vote in its general election manifesto, with one senior strategist suggesting that the position would likely be identical to that offered at the European elections in May. 

Separately, one shadow cabinet minister told me that Ed Miliband was "instinctively opposed" to a referendum whenever the issue was discussed. This is not least because he recognises that he has a good chance of being in power after the next election and does not want the opening years of his premiership to be dominated by an unpredictable vote. A public decision to leave the EU in 2017, against Miliband's wishes, would badly damage his authority. 

Far from being a clever ruse to enhance the party's standing, a Labour pledge would shift the debate back onto Tory territory and allow Cameron to claim that a "weak" Miliband is dancing to his tune. As the Labour leader himself said when James Wharton's EU referendum bill was being debated in the Commons: "I think what we see today is the Conservative Party talking to itself about Europe when actually what they should be doing is talking to the country about the most important issue that people are facing, which is the cost of living crisis. That’s what Labour’s talking about; that’s the right priority for the country." 

Balls's comments are further evidence that Labour will hold this line through the general election campaign. 

George Eaton is political editor of the New Statesman.

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How to think about the EU result if you voted Remain

A belief in democracy means accepting the crowd is wiser than you are as an individual. 

I voted Remain, I feel sick about this result and its implications for what’s to come. But I’m a believer in democracy. This post is about how to reconcile those two things (it’s a bit unstructured because I’m working it out as I go, and I’m not sure I agree with all of it).

Democracy isn’t just fairer than other systems of governance, it’s smarter. It leads to better decisions and better outcomes, on average and over the long run, than countries that are run by autocrats or councils of wise men with jobs for life. It is simply the best way we have yet devised of solving complex problems involving many people. On that topic, if you’re not averse to some rather dense and technical prose, read this post or seek out this book. But the central argument is that democracy is the best way of harnessing ‘cognitive diversity’ — bringing to bear many different perspectives on a problem, each of which are very partial in themselves, but add up to something more than any one wise person.

I don’t think you can truly be a believer in democracy unless you accept that the people, collectively, are smarter than you are. That’s hard. It’s easy to say you believe in the popular will, right up until the popular will does something REALLY STUPID. The hard thing is not just to ‘accept the result’ but to accept that the majority who voted for that result know or understand something better than you. But they do. You are just one person, after all, and try as you might to expand your perspective with reading (and some try harder than others) you can’t see everything. So if a vote goes against you, you need to reflect on the possibility you got it wrong in some way. If I look at the results of past general elections and referendums, for instance, I now see they were all pretty much the right calls, including those where I voted the other way.

One way to think about the vote is that it has forced a slightly more equitable distribution of anxiety and alienation upon the country. After Thursday, I feel more insecure about my future, and that of my family. I also feel like a foreigner in my own country — that there’s this whole massive swathe of people out there who don’t think like me at all and probably don’t like me. I feel like a big decision about my life has been imposed on me by nameless people out there. But of course, this is exactly how many of those very people have been feeling for years, and at a much higher level of intensity. Democracy forces us to try on each other’s clothes. I could have carried on quite happily ignoring the unhappiness of much of the country but I can’t ignore this.

I’m seeing a lot of people on Twitter and in the press bemoaning how ill-informed people were, talking about a ‘post-factual democracy’. Well, maybe, though I think that requires further investigation - democracy has always been a dirty dishonest business. But surely the great thing about Thursday that so many people voted — including many, many people who might have felt disenfranchised from a system that hasn’t been serving them well. I’m not sure you’re truly a democrat if you don’t take at least a tiny bit of delight in seeing people so far from the centres of power tipping the polity upside down and giving it a shake. Would it have been better or worse for the country if Remain had won because only informed middle-class people voted? It might have felt better for people like me, it might actually have been better, economically, for everyone. But it would have indicated a deeper rot in our democracy than do the problems with our national information environment (which I accept are real).

I’m not quite saying ‘the people are always right’ — at least, I don’t think it was wrong to vote to stay in the EU. I still believe we should have Remained and I’m worried about what we’ve got ourselves into by getting out. But I am saying they may have been right to use this opportunity — the only one they were given — to send an unignorable signal to the powers-that-be that things aren’t working. You might say general elections are the place for that, but our particular system isn’t suited to change things on which there is a broad consensus between the two main parties.

Ian Leslie is a writer, author of CURIOUS: The Desire to Know and Why Your Future Depends On It, and writer/presenter of BBC R4's Before They Were Famous.