Will cutting fees to £6,000 actually help? Photo: Getty
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What does Lord Mandelson's tuition fees warning to Labour reveal about its policy?

The former Labour Business Secretary is to warn Labour about their imminent higher education pledge.

The former Labour Business Secretary, Peter Mandelson, is set to warn his party about their imminent higher education pledge. Mandelson, whose department received the universities and skills brief during the New Labour years, is intervening ahead of Labour's expected announcement of a cut in tuition fees.

The Guardian reports that the Labour peer will suggest any reform to tuition fees has to ensure that the current range and flow of funding into universities from all available sources is sustained. He is also expected to voice his concern about making a higher education pledge before the election, believing it would be better to resolve the issue when in government.

In Mandelson's opinion, the levers of government would allow the party to tackle the extremely complex long-term funding implications of changing tuition fees. It would also provide Labour the opportunity to properly consider the impact if a graduate tax were introduced, a policy that the shadow universities minister Liam Byrne told me is his preferred option.

Mandelson will make his comments about Labour's upcoming policy in a speech to Universities UK today, as the Labour leadership continues to grapple with its tuition fees announcement, which has long been expected to arrive this month.

The party is a little stuck with its higher education promise. Even as far back as 2011, and repeatedly since then, Miliband and other senior Labourites have said that were they currently in government (I hear Labour politicians were instructed to speak strictly "in the subjunctive" on this subject), they would introduce £6,000 tuition fees, down from the coalition's controversial £9,000.

Yet the party has not officially announced this policy, and seems to be in limbo. I hear from a shadow cabinet aide that the shadow chancellor Ed Balls is "happy" for Labour to cut tuition fees, but needs the party to find the money to cost such a policy, and so Labour is waiting on coming up with a funding plan. Another obstacle is that although cutting tuition fees is a popular policy, university vice chancellors have been forthright against a tuition fee cut, and there is the argument that the coalition tripling the fees has not actually put pupils off applying to university. A better policy, as Tim has written, would be to help disadvantaged students with maintenance funding, rather than cutting their tuition fees.

On the BBC's Today programme this morning, the Business Secretary Vince Cable defending the Lib Dems' agreement to a hike in tuition fees, referred to Labour being stuck on its policy: "As I understand it, the people who are advising Ed Miliband and his team are telling him that this is a very foolish thing to do because it will either open a very large hole in their budget or it will be funded by quite serious cuts in universities, which is the last thing we want."

It could be that there are other plans in the mix, to mitigate the cost of helping out students financially. One shadow cabinet aide close to the tuition fees wrangling tells me there has been talk among some of a system like New Zealand’s, which has interest-free student loans.

Labour's tuition fees announcement was supposed to take place in February, which means the party only has a week left to reveal its policy. Apparently, this decision now lies with Miliband. As the party is planning to unveil its "young people's manifesto" at the end of this month, it may coincide with that.

Anoosh Chakelian is deputy web editor at the New Statesman.

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Labour's establishment suspects a Momentum conspiracy - they're right

Bernie Sanders-style organisers are determined to rewire the party's machine.  

If you wanted to understand the basic dynamics of this year’s Labour leadership contest, Brighton and Hove District Labour Party is a good microcosm. On Saturday 9 July, a day before Angela Eagle was to announce her leadership bid, hundreds of members flooded into its AGM. Despite the room having a capacity of over 250, the meeting had to be held in three batches, with members forming an orderly queue. The result of the massive turnout was clear in political terms – pro-Corbyn candidates won every position on the local executive committee. 

Many in the room hailed the turnout and the result. But others claimed that some in the crowd had engaged in abuse and harassment.The national party decided that, rather than first investigate individuals, it would suspend Brighton and Hove. Add this to the national ban on local meetings and events during the leadership election, and it is easy to see why Labour seems to have an uneasy relationship with mass politics. To put it a less neutral way, the party machine is in a state of open warfare against Corbyn and his supporters.

Brighton and Hove illustrates how local activists have continued to organise – in an even more innovative and effective way than before. On Thursday 21 July, the week following the CLP’s suspension, the local Momentum group organised a mass meeting. More than 200 people showed up, with the mood defiant and pumped up.  Rather than listen to speeches, the room then became a road test for a new "campaign meetup", a more modestly titled version of the "barnstorms" used by the Bernie Sanders campaign. Activists broke up into small groups to discuss the strategy of the campaign and then even smaller groups to organise action on a very local level. By the end of the night, 20 phonebanking sessions had been planned at a branch level over the following week. 

In the past, organising inside the Labour Party was seen as a slightly cloak and dagger affair. When the Labour Party bureaucracy expelled leftwing activists in past decades, many on went further underground, organising in semi-secrecy. Now, Momentum is doing the exact opposite. 

The emphasis of the Corbyn campaign is on making its strategy, volunteer hubs and events listings as open and accessible as possible. Interactive maps will allow local activists to advertise hundreds of events, and then contact people in their area. When they gather to phonebank in they will be using a custom-built web app which will enable tens of thousands of callers to ring hundreds of thousands of numbers, from wherever they are.

As Momentum has learned to its cost, there is a trade-off between a campaign’s openness and its ability to stage manage events. But in the new politics of the Labour party, in which both the numbers of interested people and the capacity to connect with them directly are increasing exponentially, there is simply no contest. In order to win the next general election, Labour will have to master these tactics on a much bigger scale. The leadership election is the road test. 

Even many moderates seem to accept that the days of simply triangulating towards the centre and getting cozy with the Murdoch press are over. Labour needs to reach people and communities directly with an ambitious digital strategy and an army of self-organising activists. It is this kind of mass politics that delivered a "no" vote in Greece’s referendum on the terms of the Eurozone bailout last summer – defying pretty much the whole of the media, business and political establishment. 

The problem for Corbyn's challenger, Owen Smith, is that many of his backers have an open problem with this type of mass politics. Rather than investigate allegations of abuse, they have supported the suspension of CLPs. Rather than seeing the heightened emotions that come with mass mobilisations as side-effects which needs to be controlled, they have sought to joins unconnected acts of harassment, in order to smear Jeremy Corbyn. The MP Ben Bradshaw has even seemed to accuse Momentum of organising a conspiracy to physically attack Labour MPs.

The real conspiracy is much bigger than that. Hundreds of thousands of people are arriving, enthusiastic and determined, into the Labour party. These people, and their ability to convince the communities of which they are a part, threaten Britain’s political equilibrium, both the Conservatives and the Labour establishment. When the greatest hope for Labour becomes your greatest nightmare, you have good call to feel alarmed.