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.

Photo: Getty
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How the row over Jackie Walker triggered a full-blown war in Momentum

Jon Lansman, the organisation's founder, is coming under attack. 

The battle for control within Momentum, which has been brewing for some time, has begun in earnest.

In a sign of the growing unrest within the organisation – established as the continuation of Jeremy Corbyn’s first successful leadership bid, and instrumental in delivering in his re-election -  a critical pamphlet by the Alliance for Workers’ Liberty (AWL), a Trotskyite grouping, has made its way into the pages of the Times, with the “unelected” chiefs of Momentum slated for turning the organisation into a “bland blur”.

The issue of contention: between those who see Momentum as an organisation to engage new members of the Labour party, who have been motivated by Jeremy Corbyn but are not yet Corbynites.

One trade unionist from that tendency described what they see the problem as like this: “you have people who have joined to vote for Jeremy, they’re going to meetings, but they’re voting for the Progress candidates in selections, they’re voting for Eddie Izzard [who stood as an independent but Corbynsceptic candidate] in the NEC”.  

On the other are those who see a fightback by Labour’s right and centre as inevitable, and who are trying to actively create a party within a party for what they see as an inevitable purge. One activist of that opinion wryly described Momentum as “Noah’s Ark”.

For both sides, Momentum, now financially stable thanks to its membership, which now stands at over 20,000, is a great prize. And in the firing line for those who want to turn Momentum into a parallel line is Jon Lansman, the organisation’s founder.

Lansman, who came into politics as an aide to Tony Benn, is a figure of suspicion on parts of the broad left due to his decades-long commitment to the Labour party. His major opposition within Momentum and on its ruling executive comes from the AWL.

The removal of Jackie Walker as a vice-chair of Momentum after she said that Holocaust Memorial Day belittled victims of other genocides has boosted the AWL, although the AWL's Jill Mountford, who sits on Momentum's ruling executive, voted to remove Walker as vice-chair. (Walker remains on the NEC, as she has been elected by members). But despite that, the AWL, who have been critical of the process whereby Walker lost her post, have felt the benefit across the country.

Why? Because that battle has triggered a series of serious splits, not only in Momentum’s executive but its grassroots. A raft of local groups have thrown out the local leadership, mostly veterans of Corbyn’s campaign for the leadership, for what the friend of one defeated representative described as “people who believe the Canary [a pro-Corbyn politics website that is regularly accused of indulging and promoting conspiracy theories]”.

In a further series of reverses for the Lansmanite caucus, the North West, a Momentum stronghold since the organisation was founded just under a year ago, is slipping away from old allies of Lansman and towards the “new” left. As one insider put it, the transition is from longstanding members towards people who had been kicked out in the late 1980s and early 1990s by Neil Kinnock. The constituency party of Wallasey in particular is giving senior figures in Momentum headaches just as it is their opponents on the right of the party, with one lamenting that they have “lost control” of the group.

It now means that planned changes to Momentum’s structure, which the leadership had hoped to be rubberstamped by members, now face a fraught path to passage.

Adding to the organisation’s difficulties is the expected capture of James Schneider by the leader’s office. Schneider, who appears widely on television and radio as the public face of Momentum and is well-liked by journalists, has an offer on the table to join Jeremy Corbyn’s team at Westminster as a junior to Seumas Milne.

The move, while a coup for Corbyn, is one that Momentum – and some of Corbyn’s allies in the trade union movement – are keen to resist. Taking a job in the leader’s office would reduce still further the numbers of TV-friendly loyalists who can go on the airwaves and defend the leadership. There is frustration among the leader’s office that as well as Diane Abbott and John McDonnell, who are both considered to be both polished media performers and loyalists, TV bookers turn to Ken Livingstone, who is retired and unreliable, and Paul Mason, about whom opinions are divided within Momentum. Some regard Mason as a box office performer who needs a bigger role, others as a liability.

But all are agreed that Schneider’s expected departure will weaken the media presence of Corbyn loyalists and also damage Momentum. Schneider has spent much of his time not wrangling journalists but mediating in local branches and is regarded as instrumental in the places “where Momentum is working well” in the words of one trade unionist. (Cornwall is regarded as a particular example of what the organisation should be aiming towards)

It comes at a time when Momentum’s leadership is keen to focus both on its external campaigns but the struggle for control in the Labour party. Although Corbyn has never been stronger within the party, no Corbynite candidate has yet prevailed in a by-election, with the lack of available candidates at a council level regarded as part of the problem. Councilors face mandatory reselection as a matter of course, and the hope is that a bumper crop of pro-Corbyn local politicians will go on to form the bulk of the talent pool for vacant seats in future by-elections and in marginal seats at the general election.

But at present, a draining internal battle is sapping Momentum of much of its vitality. But Lansman retains two trump cards. The first is that as well as being the founder of the organisation, he is its de facto owner: the data from Jeremy Corbyn’s leadership campaigns, without which much of the organisation could not properly run, is owned by a limited company of which he is sole director. But “rolling it up and starting again” is very much the nuclear option, that would further delay the left’s hopes of consolidating its power base in the party.

The second trump card, however, is the tribalism of many of the key players at a local level, who will resist infiltration by groups to Labour’s left just as fiercely as many on the right. As one veteran of both Corbyn’s campaigns reflected: “If those who have spent 20 years attacking our party think they have waiting allies in the left of Labour, they are woefully mistaken”. 

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