Ed Miliband visits Standard Life on November, 11, 2013 in Edinburgh. Photograph: Getty Images.
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Miliband ties Salmond to Cameron in attack on "race to the bottom"

The Labour leader uses the Scottish First Minister's weapon of choice against him.

If the Union is to survive, it will be up to Labour save it. With just one MP in Scotland (out of a possible 59), the Conservatives recognise that they cannot speak with authority on the country's future. By contrast, even in the baleful circumstances of the 2010 general election, Labour held onto all 41 of its seats north of the border (indeed, its vote actually rose by 2.5 per cent). With the Lib Dems' support in freefall owing to their decision to enter coalition with the Tories (the psephologist Lewis Baston recently predicted that they would lose all but one of their 11 Scottish constituencies), Labour is now the only one of the three main Westminster parties that can credibly challenge the SNP.

For this reason, Ed Miliband and his team recognise that the independence referendum is a significant political opportunity for him. With David Cameron publicly conceding that he lacks appeal in Scotland, Miliband can step forward as the man to prevent the break-up of Britain. 

It is this that he will do in a speech at the Scottish Labour conference today. When Alex Salmond delivered his New Statesman lecture earlier this month, he argued that Scotland could serve as a "progressive beacon" for the rest of the UK by pursuing the kind of social democratic policies shunned by Westminster. But in his address, Miliband will turn this argument on its head by declaring that rather than leading a "race to the top", the SNP would trigger a "race to the bottom". While Labour has pledged to increase corporation tax from 20 per cent to 21 per cent in order to fund a reduction in business rates for small firms, Salmond has vowed to reduce it to 3 per cent below the British level. Alongside this, he has refused to match Miliband's commitment to reintroduce the 50p tax rate (see his response to my question at the NS event) on the grounds that it could undermine Scotland's competitiveness. 

In recent weeks, Salmond has sought to present Labour as Tory stooges after they joined forces with George Osborne against a currency union. But Miliband will use the First Minister's weapon of choice against him by arguing that his stance on tax means he would join David Cameron in a "race to the bottom". Here's the key extract: 

Think how hard it would be to stop a race to the bottom happening if, on one island, we had a border running along the middle so we were divided in two. It would be two lanes in a race to the bottom - with David Cameron and Alex Salmond at the starting blocks - in which the only way they win is for you to lose.

If Scotland was to go independent, it would be a race to the bottom not just on tax rates, but on wage rates, on terms and conditions, on zero hours contracts, on taking on the energy companies, on reforming the banks. Those who can afford it will be paying less, while hardworking families across Scotland will pay more and see their services suffer.

Alex Salmond who claims to be a great social democrat would end up running the same race to the bottom that the Tories have embarked upon. The SNP talk about social justice but they can’t build it - because they can’t be narrow nationalists and serve social justice at the same time.

While Salmond will point to his stances on welfare, inequality and foreign policy as evidence of his commitment to a centre-left agenda, the problem he faces is that Miliband has embraced such policies himself. He has pledged to scrap the bedroom tax (which, like the Poll Tax, has become a symbol of Conservative callousness in Scotland), to reverse the privatisation of the NHS, to invest more in early-years education and childcare, to spread the use of the living wage, to rebalance the economy and to increase infrastructure spending. He has condemned the invasion of Iraq (which so alienated progressives in Scotland and elsewhere), prevented a rush to war in Syria and pledged to pursue a foreign policy based on "values, not alliances". Finally, he has denounced the rise in income inequality (which, as Salmond rightly laments, has made the UK one of "the most unequal societies in the developed world"), and has made its reversal his defining mission.

The core argument he will make today is that if the UK elects a Labour government next May, it won't need Scotland to serve as a "progressive beacon". Rather, it will become a more progressive country through its own means. 

The SNP want to tell you that there is a progressive Scotland and a Tory England. There isn’t. There are millions of people across every part of our country who want a better future for all our young people; who say it is just wrong that so many people in work find themselves in poverty, who want to be part of a country that is more just, more equal, more fair.

Let’s rebuild all of o‎ur country in the cause of social justice. Together, not alone; as neighbours on this island, not as strangers; as friends, not as competitors; in a race to the top, not to the bottom.

 Two decades on from the death of John Smith (whose wife recently made a rare intervention in support of Miliband's party reforms), he will also call on Labour to honour his legacy by successfully defending the Union. 

John Smith was a man who passionately believed in social justice in Scotland - and in the United Kingdom.  Twenty years on, that flame of social justice still burns. And we can honour his legacy by winning the fight for Scotland to remain in the United Kingdom.

In addition, according to Labour, he will "talk about his own family’s links to Scotland which saw his father train in the Royal Navy during the Second World War at Inverkeithing."  

For obvious reasons, it is Miliband, far more than Cameron, who has a political interest in the Union enduring. While the belief that an independent Scotland would consign the rest of the UK to permanent Conservative rule is exaggerated (on no occasion since 1945 would independence have changed the identity of the winning party and on only two occasions would it have converted a Labour majority into a hung parliament), the loss of 41 MPs would make it far harder for Labour to achieve majorities in the future. 

Were a Labour (or Lab-Lib Dem) government to be formed on the basis of support from MPs north of the border, the right-wing media and many Tories would denounce it as an illegitimate imposition on the rest of the UK. Miliband, meanwhile, would face the prospect of losing his majority less than a year after becoming prime minister. As a Labour MP recently put it to me, "If we lose Scotland, we could be completely buggered." 

With the polls narrowing significantly, Miliband will hope that today marks the start of the fightback. 

George Eaton is political editor of the New Statesman.

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Everyone's forgotten the one issue that united the Labour party

There was a time when Ed Miliband spoke at Momentum rallies.

To label the row over the EU at Thursday’s Labour leadership hustings "fireworks" would be to endow it with more beauty than it deserves. Owen Smith’s dogged condemnation of John McDonnell’s absence from a Remain rally – only for Corbyn to point out that his absence was for medical reasons – ought to go down as a cringing new low point in the campaign. 

Not so long ago, we were all friends. In the course of the EU referendum, almost all of the protagonists in the current debacle spoke alongside each other and praised one another’s efforts. At a local level, party activists of all stripes joined forces. Two days before polling day, Momentum activists helped organise an impromptu rally. Ed Miliband was the headline speaker, and was cheered on. 

If you take the simple version of the debate, Labour’s schism on the EU appears as an aberration of the usual dynamics of left and right in the party. Labour's left is supposedly cheering a position which avoids advocating what it believes in (Remain), because it would lose votes. Meanwhile, the right claims to be dying in a ditch for its principles - no matter what the consequences for Labour’s support in Leave-voting heartlands.

Smith wants to oppose Brexit, even after the vote, on the basis of using every available procedural mechanism. He would whip MPs against the invocation of Article 50, refuse to implement it in government, and run on a manifesto of staying in the EU. For the die-hard Europhiles on the left – and I count myself among these, having run the Another Europe is Possible campaign during the referendum – there ought to be no contest as to who to support. On a result that is so damaging to people’s lives and so rooted in prejudice, how could we ever accept that there is such a thing as a "final word"? 

And yet, on the basic principles that lie behind a progressive version of EU membership, such as freedom of movement, Smith seems to contradict himself. Right at the outset of the Labour leadership, Smith took to Newsnight to express his view – typical of many politicians moulded in the era of New Labour – that Labour needed to “listen” to the views Leave voters by simply adopting them, regardless of whether or not they were right. There were, he said, “too many” immigrants in some parts of the country. 

Unlike Smith, Corbyn has not made his post-Brexit policy a headline feature of the campaign, and it is less widely understood. But it is clear, via the five "red lines" outlined by John McDonnell at the end of June:

  1. full access to the single market
  2. membership of the European investment bank
  3. access to trading rights for financial services sector
  4. full residency rights for all EU nationals in the UK and all UK nationals in the EU, and
  5. the enshrinement of EU protections for workers. 

Without these five conditions being met, Labour would presumably not support the invocation of Article 50. So if, as seems likely, a Conservative government would never meet these five conditions, would there be any real difference in how a Corbyn leadership would handle the situation? 

The fight over the legacy of the referendum is theatrical at times. The mutual mistrust last week played out on the stage in front of a mass televised audience. Some Corbyn supporters jeered Smith as he made the case for another referendum. Smith accused Corbyn of not even voting for Remain, and wouldn’t let it go. But, deep down, the division is really about a difference of emphasis. 

It speaks to a deeper truth about the future of Britain in Europe. During the referendum, the establishment case for Remain floundered because it refused to make the case that unemployment and declining public services were the result of austerity, not immigrants. Being spearheaded by Conservatives, it couldn’t. It fell to the left to offer the ideological counter attack that was needed – and we failed to reach enough people. 

As a result, what we got was a popular mandate for petty racism and a potentially long-term shift to the right in British politics, endangering a whole raft of workplace and legal protections along the way. Now that it has happened, anyone who really hopes to overcome either Brexit, or the meaning of Brexit, has to address the core attitudes and debates at their root. Then as now, it is only clear left-wing ideas – free from any attempt to triangulate towards anti-migrant sentiment– that can have any hope of success. 

The real dividing lines in Labour are not about the EU. If they were, the Eurosceptic Frank Field would not be backing Smith. For all that it may be convenient to deny it, Europe was once, briefly, the issue that united the Labour Party. One day, the issues at stake in the referendum may do so again – but only if Labour consolidates itself around a strategy for convincing people of ideas, rather than simply reaching for procedural levers.