Nick Clegg with Ed Miliband at a ceremony at Buckingham Palace to mark the Duke of Edinburgh's 90th birthday on June 30, 2011. Photograph: Getty Images.
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Would Clegg force Labour to back tougher cuts?

The Deputy PM's warning that he would "absolutely insist" that a new coalition would not "break the bank" suggests that he may push Labour to back an Osborne-style deficit plan.

Given how much Nick Clegg has staked on the Lib Dems remaining in government after the next election, and Labour's stubborn poll lead, it is unsurprising to find him warming to the prospect of a coalition with Ed Miliband's party. He tells a Radio 4 documentary to be broadcast tonight: "I think they've [Labour] changed. I think there's nothing like the prospect of reality in an election to get politicians to think again and the Labour Party, which is a party unused to sharing power with others is realising that it might have to."

By contrast, he says of the Tories: "I think the Conservative Party has changed quite dramatically since we entered into coalition with them. They've become much more ideological, they've returned much more to a lot of their familiar theme tunes. I think it would be best for everybody if the Conservative Party were to rediscover a talent for actually talking to mainstream voters about mainstream concerns."

It seems Ed Balls's recent overtures in the New Statesman have not gone to waste. 

Clegg does, however, qualify his remarks by warning that "if there were a Labour-Liberal Democrat coalition, we the Liberal Democrats would absolutely insist that government would not break the bank."

The Deputy PM's choice of words ("break the bank") will likely perpetuate the false belief that the last government "bankrupted" Britain, but more significant is what they imply about the future. In his recent speech to the Fabian Society, Balls committed a Labour government to balancing the current budget and to reducing the national debt as a share of GDP by the end of the next parliament. While he left open the option of borrowing to invest, his chosen fiscal rules make large public spending cuts unavoidable. 

For Clegg, however, this may not be enough. In his speech on the economy at Mansion House last week, he backed George Osborne's more aggressive post-2015 deficit reduction plan and vowed to pursue it if the Lib Dems were in government after the next election. "In the autumn statement we set out a plan to get debt falling as a proportion of GDP by 2016-17 and to get the current structural deficit in balance a year later. That is the right timescale and the one to which the Liberal Democrats remain absolutely committed. If I am in government again, this is the plan I want us to stick to."

Osborne's plan differs from Balls's in three important respects: it is based on a commitment to reduce the national debt by 2016-17 (rather than by the end of the parliament), and to achieve an absolute budget surplus by 2020 (rather than merely a current surplus), and, therefore, would not allow the government to borrow to invest in infrastructure. 

But while Clegg has made it clear that he favours Osborne's timetable, others in his party, most notably Vince Cable, are fighting for an alternative approach. In his own recent address on the economy, the Business Secretary said: "There are different ways of finishing the job … not all require the pace and scale of cuts set out by the chancellor. And they could allow public spending to stabilise or grow in the next parliament, whilst still getting the debt burden down." Based on that, it seems that Cable would prefer to adopt the approach taken by Balls, leaving room to borrow to invest depending on the state of the economy, rather than Osborne's ideological fixation with a budget surplus. 

The key question, in the event of another hung parliament, will be how far Clegg is prepared to go to bind Labour to a plan that he deems fiscally responsible. Given the emphasis he has put on the issue ("we the Liberal Democrats would absolutely insist that government would not break the bank"), it's possible that he would veto any agreeement that did not include Osborne-style cuts.

Alternatively, given Labour's superior bargaining power, it's possible, or even likely, that Miliband and Balls would get their way. In a reverse of 2010, when he signed up to early spending cuts, despite having consistently opposed them throughout the election campaign ("merrily slashing now is an act of economic masochism," he warned, adding that "If anyone had to rely on our support, and we were involved in government, of course we would say no."), he could move from backing Conservative cuts to backing a more balanced plan. 

Whatever happens, now Clegg has named his terms, the debate over post-2015 cuts will move up a gear. 

George Eaton is political editor of the New Statesman.

Umaar Kazmi
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“They should be on bended knee apologising”: Chris Williamson warns Corbynsceptic Labour MPs

The MP for Derby North on his return to Parliament, why Labour won in marginal seats, and how party unity could have led to a Labour government.

At 5am on election morning, Chris Williamson was ceremonially tearing up some binbags. Two dustbin liners had been taped over the gold and green “Chris Williamson MP” sign on his Derby North constituency office since 2015. When it was announced that he’d won England’s most marginal constituency back from the Tories, he headed down to the old office with his team, and they tore the binbags down, dust raining upon them.

“Those black bin liners taped round were like a reminder whenever you glanced up that, one day, it’d be nice to pull that off,” he grins. In his two years away from the Commons, having been beaten by 41 votes last election, Williamson had been using the office as an advice centre.

Before then, the former bricklayer had represented the Midlands constituency from 2010 to 2015, having served as a local councillor – and twice as council leader – for two decades.


All photos: Umaar Kazmi​

Now he’s back, and squatting in a vegan-friendly café along the river from Parliament as he waits to be given an office. His signature flatcap sits on the table beside a glass of sparkling water.

“I’m not a fan of that place anyway, really, it’s horrible and oppressive, and not really fit for purpose,” he says. “That’s the slight downside. It goes with the territory I suppose. If we could move out of Westminster, that would be nice – somewhere like Birmingham or Manchester or Derby even – the centre of the country, isn’t it?”

“New Labour’s dead, buried and finished”

Perhaps this distaste for the bubble is to be expected, as Williamson is an ardent Corbynite. I followed him on the campaign trail before the election, and he was championing Jeremy Corbyn’s policies and leadership on every doorstep. It seemed a rather brave move among many undecided voters at the time, but has now been vindicated. You can almost tell from his trainers, crumpled polo shirt and contended expression that Williamson is supremely comfortable in the most left-wing Labour party since he became an MP.

“New Labour’s dead,” he says, his eyes twinkling. “No doubt about that. It’s dead, buried and finished. It's a regrettable chapter in our history. Historians will think ‘my God, what were they doing?!’” he cries.

Williamson believes he won due to Jeremy Corbyn’s character, the manifesto, a “fantastic” local campaign, and an “outstanding” national campaign. He thanks Momentum activists rallying so many people that they often had 20 teams canvassing simultaneously in his seat. And he praises an online campaign that targeted different demographics – Ukip voters in particular would mention his videos.

“If they’d been more supportive then we’d have got over the line”

“We targeted some elements of our campaign to specific cohorts,” he says. “For example, we did a message online to people who had supported Ukip previously about how a Labour government would genuinely take back control, take on the corporations, bring back the utilities into public ownership – rather than controlled by international, global corporations many of which are ripping us off.”

Williamson adds that young people were enthused by the pledges to scrap tuition fees, abolish zero-hours contracts and raise the minimum wage. He also saw Tory voters switch, attracted by a policy programme that he describes as “common sense” rather than radical.

He admits that people warned him to “disassociate yourself from Jeremy if you’re going to win” when he began campaigning. But he tells me he would “have sooner lost than gone down that road”.

But he has strong words for those who were more sceptical, saying they “let down their members” and lamenting that “if they’d been more supportive over the intervening period, then we’d have probably got over the line”.

Williamson calls on all the Corbynsceptic MPs to apologise: “They should be down on their bended knees and apologising, in fact. Not just to Jeremy but to the entire Labour movement.”

However, he believes his party is “more united” now than it has been for the 41 years he’s been a member, and is happy to “move on” – expressing his gratitude for how much warmth he’s received from his MP colleagues, “given how critical I’ve been of them!”

It may be Chris Williamson’s time in the sun – or the “sunshine of socialism” as he puts it, quoting Keir Hardie – but he does have jitters about his majority. It is 2,015 – the digits matching the election year when he was defeated by the Tories. “It’s a reminder that we lost then!” he laughs.

> Now read Anoosh on the campaign trail in Derby North with Chris Williamson

Anoosh Chakelian is senior writer at the New Statesman.

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