PMQs review: Miliband traps Cameron over "money is no object"

The PM's loose rhetoric handed Miliband a win as he challenged plans to make 550 Environment Agency Staff redundant.

As I predicted he would, Ed Miliband used PMQs to zero in on the contradiction between David Cameron's declaration yesterday that "money is no object" in providing flood relief and Patrick McLoughlin's warning earlier today that there is no "blank cheque". If money is no object, he asked Cameron, will he reconsider the government's plan to make 550 Environment Agency flood staff redundant?

After his loose rhetoric yesterday, the PM was left desperately trying to wriggle out of his commitment. He repeated his pledge to introduce a grant for all affected homeowners and businesses, a £10m fund to help farmers, and to defer tax payments for businesses, with 100 per cent business rate relief. But on the fate of the Environment Agency staff he remained mute. As Miliband reminded him of "what sounded like a grand promise", Cameron was forced to try and change the subject to Labour's spending plans and to the governent's success in reducing the benefit. Since it had managed the budget well, he said, there was no need for "people to worry about penny pinching". But penny pinching is exactly the impression given by his decision to proceed with staff redundancies.

Cameron eventually resorted to the age-old cry of a PM in trouble: the opposition leader was seeking to "divide the House when we should be coming together for the nation". But Miliband's calm and reasoned tone means this charge is unlikely to stick. In what is always difficult territory for an opposition leader, he came out on top. After the session had ended, No. 10 briefed that there would be no new money made available and that any extra funding would come from contigency budgets, a clear reversal of Cameron's pledge yesterday.

The other significant moment came when Cameron was pressed by Labour's Cathy Jamieson on whether he could help Danny Alexander, who has said that the 45p tax rate will be scrapped over his "dead body", by ruling out any further tax cuts for top earners ("or should the Chief Secretary up his life insurance?" she added). Cameron, sounding more sceptical than before, emphasised that his overriding "priority" was to cut taxes for low and middle earners, but still refused to rule out cutting the top rate again. For Labour, such answers are a political gift. For the Tories, however, the significance of Cameron's answer was his reference to "middle" earners, which they view (perhaps wrongly) as a hint that relief could be offered to those who have been sucked into the 40p tax band by fiscal drag.

Finally, after disastrously fielding an all-male frontbench last week and handing Miliband his strongest PMQs victory for months, the Tories went to predictably great lengths to avoid repeating this error, with seven women on the frontbench and a total of 14 in view of the cameras. If the Tories continue to ensure greater gender parity in future weeks, Miliband may well have done them a favour.

George Eaton is political editor of the New Statesman.

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Ken Livingstone says publicly what many are saying privately: tomorrow belongs to John McDonnell

The Shadow Chancellor has emerged as a frontrunner should another Labour leadership election happen. 

“It would be John.” Ken Livingstone, one of Jeremy Corbyn’s most vocal allies in the media, has said publicly what many are saying privately: if something does happen to Corbyn, or should he choose to step down, place your bets on John McDonnell. Livingstone, speaking to Russia Today, said that if Corbyn were "pushed under a bus", John McDonnell, the shadow chancellor, would be the preferred candidate to replace him.

Even among the Labour leader’s allies, speculation is rife as to if the Islington North MP will lead the party into the 2020 election. Corbyn would be 71 in 2020 – the oldest candidate for Prime Minister since Clement Attlee lost the 1955 election aged 72.

While Corbyn is said to be enjoying the role at present, he still resents the intrusion of much of the press and dislikes many of the duties of the party leader. McDonnell, however, has impressed even some critics with his increasingly polished TV performances and has wowed a few sceptical donors. One big donor, who was thinking of pulling their money, confided that a one-on-one chat with the shadow chancellor had left them feeling much happier than a similar chat with Ed Miliband.

The issue of the succession is widely discussed on the left. For many, having waited decades to achieve a position of power, pinning their hopes on the health of one man would be unforgivably foolish. One historically-minded trade union official points out that Hugh Gaitskell, at 56, and John Smith, at 55, were 10 and 11 years younger than Corbyn when they died. In 1994, the right was ready and had two natural successors in the shape of Tony Blair and Gordon Brown in place. In 1963, the right was unprepared and lost the leadership to Harold Wilson, from the party's centre. "If something happens, or he just decides to call it a day, [we have to make sure] it will be '94 not '63," they observed.

While McDonnell is just two years younger than Corbyn, his closest ally in politics and a close personal friend, he is seen by some as considerably more vigorous. His increasingly frequent outings on television have seen him emerge as one of the most adept media performers from the Labour left, and he has won internal plaudits for his recent tussles with George Osborne over the tax bill.

The left’s hopes of securing a non-Corbyn candidate on the ballot have been boosted in recent weeks. The parliamentary Labour party’s successful attempt to boot Steve Rotheram off the party’s ruling NEC, while superficially a victory for the party’s Corbynsceptics, revealed that the numbers are still there for a candidate of the left to make the ballot. 30 MPs voted to keep Rotheram in place, with many MPs from the left of the party, including McDonnell, Corbyn, Diane Abbott and John Trickett, abstaining.

The ballot threshold has risen due to a little-noticed rule change, agreed over the summer, to give members of the European Parliament equal rights with members of the Westminster Parliament. However, Labour’s MEPs are more leftwing, on the whole, than the party in Westminster . In addition, party members vote on the order that Labour MEPs appear on the party list, increasing (or decreasing) their chances of being re-elected, making them more likely to be susceptible to an organised campaign to secure a place for a leftwinger on the ballot.

That makes it – in the views of many key players – incredibly likely that the necessary 51 nominations to secure a place on the ballot are well within reach for the left, particularly if by-election selections in Ogmore, where the sitting MP, is standing down to run for the Welsh Assembly, and Sheffield Brightside, where Harry Harpham has died, return candidates from the party’s left.

McDonnell’s rivals on the left of the party are believed to have fallen short for one reason or another. Clive Lewis, who many party activists believe could provide Corbynism without the historical baggage of the man himself, is unlikely to be able to secure the nominations necessary to make the ballot.

Any left candidate’s route to the ballot paper runs through the 2015 intake, who are on the whole more leftwing than their predecessors. But Lewis has alienated many of his potential allies, with his antics in the 2015 intake’s WhatsApp group a sore point for many. “He has brought too much politics into it,” complained one MP who is also on the left of the party. (The group is usually used for blowing off steam and arranging social events.)

Lisa Nandy, who is from the soft left rather than the left of the party, is widely believed to be in the running also, despite her ruling out any leadership ambitions in a recent interview with the New Statesman.However, she would represent a break from the Corbynite approach, albeit a more leftwing one than Dan Jarvis or Hilary Benn.

Local party chairs in no doubt that the shadow chancellor is profiling should another leadership election arise. One constituency chair noted to the New Statesman that: “you could tell who was going for it [last time], because they were desperate to speak [at events]”. Tom Watson, Caroline Flint, Chuka Umunna, Yvette Cooper, Andy Burnham and Liz Kendall all visited local parties across the country in preparation for their election bids in 2015.

Now, speaking to local party activists, four names are mentioned more than any other: Dan Jarvis, currently on the backbenches, but in whom the hopes – and the donations – of many who are disillusioned by the current leadership are invested, Gloria De Piero, who is touring the country as part of the party’s voter registration drive, her close ally Jon Ashworth, and John McDonnell.

Another close ally of Corbyn and McDonnell, who worked closely on the leadership election, is in no doubt that the shadow chancellor is gearing up for a run should the need arise.  “You remember when that nice Mr Watson went touring the country? Well, pay attention to John’s movements.”

As for his chances of success, McDonnell may well be even more popular among members than Corbyn himself. He is regularly at or near the top of LabourList's shadow cabinet rankings, and is frequently praised by members. Should he be able to secure the nominations to get on the ballot, an even bigger victory than that secured by Corbyn in September is not out of the question.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.