Diane Abbott told The Staggers that she was opposed to an "arbitrary cap". Photograph: Getty Images.
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Labour MPs set to rebel against party over welfare cap

Diane Abbott and other backbenchers refuse to join leadership in backing Osborne's measure.

When George Osborne announced the level of the new cap on welfare spending in his Budget and the government's plan to stage a vote on the issue this week, many predicted Labour would walk into his "trap" and vow to oppose the measure. But immediately after the Chancellor's speech, Ed Balls defied expectations by announcing that his party would be supporting it. As he explained at his post-Budget briefing to journalists, "We'll vote yes on the welfare cap next week...Ed Miliband called for a welfare cap last year, in his speech in June, and we have agreed with the way in which the government has structured the welfare cap, what's in and what's out in the next parliament."

Since the cap (set at £119bn for 2015-16) excludes cyclical benefits such as Jobseeker's Allowance and housing benefit for the unemployed, spending on which fluctuates according to the state of the economy, Labour is prepared to accept it. As Balls alluded to, Ed Miliband used his speech on social security last summer to announce his support for a cap on "structural welfare spending", a pre-emptive move designed to spike Osborne's guns.

But while the Labour leadership has endorsed the government's cap (and will whip MPs in favour on Wednesday), a significant minority of Miliband's backbenchers are opposed to the policy. When I spoke to Diane Abbott this morning, she told me that she would not be voting in favour of the cap on the grounds that it will "encourage cuts in benefits, rather than long-term strategies to do things to bring the benefits bill down, like housebuilding, like a rise in the minimum wage ... I cannot support an arbitrary cap".

She warned that the measure was "part of a political narrative which demonises welfare claimants; most of the public don’t understand that half of welfare claimants are pensioners and that another quarter are in work." When I asked her whether she would be voting against, she told me that she was "consulting with her local party". But backbenchers John McDonnell, Ian Lavery and Mike Wood have all told The Staggers that they will be opposing the measure, with at least 10-15 expected to join them.

The size of the rebellion will be a good indicator of the number of MPs who could be expected to oppose future austerity measures introduced under a Labour government. If Miliband enters Downing Street with a small majority, he could be held hostage by his party's left. 

P.S. The Tories are keen to point out that as well as voting for the welfare cap on Wednesday, Labour will also be endorsing Osborne's current fiscal rules: to eliminate the structural deficit over a rolling, five-year period and to reduce the national debt as a proportion of GDP by 2015-16. But one Labour source pointed out to me that the Chancellor is still forecast to breach the second of these commitments (debt is not forecast to fall until 2016-17), remarking that "the Tories have rather messed this up if they want to highlight their broken fiscal targets".

George Eaton is political editor of the New Statesman.

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Supreme Court gives MPs a vote on Brexit – but who are the real winners?

The Supreme Court ruled that Parliament must have a say in starting the process of Brexit. But this may be a hollow victory for Labour. 

The Supreme Court has ruled by a majority of 8 to 3 that the government cannot trigger Article 50 without an Act of Parliament, as leaving the European Union represents a change of a source of UK law, and a loss of rights by UK citizens, which can only be authorised by the legislature, not the executive. (You can read the full judgement here).

But crucially, they have unanimously ruled that the devolved parliaments do not need to vote before the government triggers Article 50.

Which as far as Brexit is concerned, doesn't change very much. There is a comfortable majority to trigger Article 50 in both Houses of Parliament. It will highlight Labour's agonies over just how to navigate the Brexit vote and to keep its coalition together, but as long as Brexit is top of the agenda, that will be the case.

And don't think that Brexit will vanish any time soon. As one senior Liberal Democrat pointed out, "it took Greenland three years to leave - and all they had to talk about was fish". We will be disentangling ourselves from the European Union for years, and very possibly for decades. Labour's Brexit problem has a long  way yet to run.

While the devolved legislatures in Scotland, Northern Ireland and Wales will not be able to stop or delay Brexit, that their rights have been unanimously ruled against will be a boon to Sinn Féin in the elections in March, and a longterm asset to the SNP as well. The most important part of all this: that the ruling will be seen in some parts of Northern Ireland as an unpicking of the Good Friday Agreement. That issue hasn't gone away, you know. 

But it's Theresa May who today's judgement really tells you something about. She could very easily have shrugged off the High Court's judgement as one of those things and passed Article 50 through the Houses of Parliament by now. (Not least because the High Court judgement didn't weaken the powers of the executive or require the devolved legislatures, both of which she risked by carrying on the fight.)

If you take one thing from that, take this: the narrative that the PM is indecisive or cautious has more than a few holes in it. Just ask George Osborne, Michael Gove, Nicky Morgan and Ed Vaizey: most party leaders would have refrained from purging an entire faction overnight, but not May.

Far from being risk-averse, the PM is prone to a fight. And in this case, she's merely suffered delay, rather than disaster. But it may be that far from being undone by caution, it will be her hotblooded streak that brings about the end of Theresa May.

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.