Conservative MP James Wharton, who is set to hold his seat. Photograph: BBC.
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Why is Labour losing to the Tories in ultra-marginal Stockton South?

Losses to Ukip mean the party has failed to gain any ground since 2010. 

Labour strategists have long drawn comfort from their party's polling performance in the marginal seats they need to win in 2015. But a new survey by Survation (commissioned by Unite) of north-east constituency Stockton South, where the sitting Conservative MP James Wharton has a majority of just 332, makes unhappy reading for them.

It puts the Tories in front on 39 per cent (unchanged on 2010) with Labour two points behind on 37 per cent (down one), Ukip on 18 per cent (up 15), the Lib Dems on 3 per cent (down 12) and the Greens on 3 per cent (up three). Support for Nigel Farage's party has surged and support for Nick Clegg's has collapsed but Ed Miliband's has failed to benefit. As the detailed data shows, gains from the latter (35 per cent of 2010 Lib Dems back Labour) have been offset by losses to the former (who 12 per cent of 2010 Labour voters have defected), the Tories and the Greens. Wharton, who has worked hard to build a personal following and who tabled the recent EU referendum bill, is also likely to have benefited from an incumbency effect. 

The poll is a demonstration of the nightmare scenario for Labour in 2015: Ukip soar, the Lib Dems sink, but the Tories manage to cling on as the single largest party. It is also a reminder, as I've argued before, that the real danger facing the party is not that it loses seats to the Farageists (although it may) but that Ukip splits the anti-government vote in Conservative marginals. 

This is, of course, just one survey (and the Tories' lead is within the margin of error) and just one seat. But six months out from the general election, Labour should worry that it has seemingly failed to gain ground in what is a must-win constituency. 

George Eaton is political editor of the New Statesman.

Photo: Getty
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Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.