Yvette Cooper at the Labour leadership GMB hustings. Photograph: Getty Images.
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Yvette Cooper delivers unruffled performance at Press Gallery lunch

The Labour leadership candidate – often criticised for her lack of personality – appeared relaxed and amusing at a lunch for journalists.

Yvette Cooper, who was regarded as the best performer at last night's Labour leadership hustings, again impressed before the Westminster Press Gallery this lunchtime. The shadow home secretary didn't make any policy waves but she was relaxed, amusing and resonated authority and competence (despite a bad cold). 

Cooper devoted a significant section of her address to the Greek crisis, reminding journalists that Ed Balls isn't the only trained economist in her household. The Labour leadership candidate, who, like her husband, won a Kennedy Scholarship to Harvard, warned that the EU and the British government were displaying the same complacency that was shown at the start of the financial crisis. 

"There seems to be a growing view about how to handle Greece that is similar to the kind of view that we saw in the US Treasury over Lehman Brothers bank, where the view seemed to be that we can somehow cut them off, cauterise the problem by letting them go. And we saw what happened - the US Treasury thought that they could do that over Lehman Brothers and in fact it was catastrophic and caused huge instability in the financial markets. So my warning to the government and across Europe is do not do a Lehman Brothers over Greece, do not think that you can simply cauterise a problem without there being huge financial and economic instability. We need a long-term solution to Greece, this has been delayed for too long". She recalled that as an economics journalist at the Independent in the 1990s, she always believed that Greece and Italy should not join the euro. 

On the Labour leadership, Cooper stuck to her strategy of positioning herself as the centrist candidate between Andy Burnham and Liz Kendall. She warned against trying to "rerun the 2015 election" (a swipe at Burnham) and against trying to "rerun previous elections" (a swipe at the Blair-esque Kendall). It is an approach that leaves her well-placed to win second preference votes should either of her rivals drop out.  

But aware of the charge that she has simply defined against other candidates and failed to offer a positive vision, she emphasised the importance of "new ideas" and that Labour was successful, as in 1945, 1964 and 1997, when it owned the future. She frequently referenced the digital revolution and the transformation of the labour market, and the need to treat business as an ally, rather than an enemy.

As one of two female candidates in the race, Cooper also, unsurprisingly, emphasised the potential benefits of making her Labour's first female leader. "David Cameron has a woman problem ... Maybe we should give David Cameron an even bigger woman problem," she said. Many in Labour have long believed that the Prime Minister and whoever succeeds him (most likely Boris Johnson or George Osborne) would find it far harder to dismiss a female leader. While there are obvious cards that the Tories could play against Andy Burnham ("the union man", "Mid-Staffs"), it would be tricker to pin down Cooper. Jokes about Ed Balls would simply appear crude and misogynistic and his enforced exit from parliament means this subject is even more off-limits.

Cooper's biggest obstacle, however, remains her past service in government. As the sole candidate elected in 2010, Kendall is able to argue that only she can offer "a fresh start". But Cooper handled the "baggage" charge well, asserting that "this is a tough job and it needs experience" and adding: "I make no apology for having been the minister who ran a department with a £100bn budget, for having brought in the Future Jobs Fund and for having been the minister who rolled out Sure Start". When asked how she felt about comparisons between herself and Hillary Clinton ("cool"), she again used her experience to her advantage, recalling that she worked on Bill Clinton's campaign in 1992 and sported the slogan "I'm backing Hillary's husband". Asked whether Balls would join her on stage if she won the leadership, she replied that he would not and attacked the "outdated" and "uncomfortable" role of the political spouse. 

"I had already when Ed [Balls] stood last time in the 2010 leadership election ruled out ever joining him on stage as a political wife because I think we should be long beyond the era of expecting any politician to have the political wives standing next to them," she said . "Certainly the Labour Party Conference has always been uncomfortable at the way in which the spouses were expected to play that role ... I think that role in terms of the party conference is an outdated one."

Among Labour MPs, it is increasingly Cooper, not Burnham, who is regarded as the true frontrunner. After her performances in the last 24 hours, the political world at large will be watching her candidacy far more closely. 

George Eaton is political editor of the New Statesman.

Photo: Getty
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Theresa May's magic money tree is growing in Northern Ireland

Her £1bn deal with the DUP could make it even harder to push through cuts in the rest of the UK.

Going, going, gone...sold to the dark-haired woman from Enniskillen! Theresa May has signed a two-year deal with Arlene Foster, the DUP's leader, to keep her in office. The price? A cool £1bn and the extension of the military covenant to Northern Ireland.

The deal will have reverberations both across the United Kingdom and Northern Ireland specifically. To take the latter first – the amount spent in Northern Ireland in 2016/17 was just under £10bn. A five point increase in spending on health, education and roads is a fairly large feather in anyone's cap.

It transforms the picture as far as the fraught negotiations over restoring power-sharing goes. It increases the pressure on Sinn Féin to restore power-sharing so they can help decide exactly where the money goes. And if there's another election, it means that Arlene Foster goes into it not as the woman who oversaw the wasteful RHI scheme (a renewable energy programme that because of its poor drafting saw farmers paid to heat empty rooms) but as the negotiator who bagged an extra £1bn for Northern Ireland. 

Across the United Kingdom, the optics are less good for the (nominal) senior partner to the deal.

"May buys DUP support with £1 billion 'bung" is the Times"£1bn for DUP is 'just the start" is the Telegraph's splash, and their Scottish edition is worse: "Fury at 'grubby' deal with DUP". With friends like this, who needs the Guardian? (They've gone for "May hands £1bn bonanza to DUP to cling on at No 10" as their splash, FYI.) 

Not to be outdone, the Mirror opts for "May's £1bn bribe to crackpots" while the Scotsman goes for "£100 million per vote: The price of power".  Rounding off the set, the Evening Standard has mocked Foster up as Dr Evil and Theresa May as Mini-Me on its front page. The headline? "I demand the sum of....one billion pounds!"   

Of course, in terms of what the government spends, £1bn is much ado about nothing. (To put it in perspective, the total budget across the UK is £770bn or thereabouts, debt interest around £40bn, the deficit close to £76bn).

But only a few weeks ago Theresa May was telling a nurse that the reason she couldn't get a pay rise is that there is "no magic money tree". Now that magic money tree is growing freely in Northern Ireland. The Conservatives have been struggling to get further cuts through as it is – just look at the row over tax credits, or the anger at school cuts in the election – but now any further cuts in England, Scotland and Wales will rub up against the inevitable comeback not only from the opposition parties but the voters: "But you've got money to spend in Northern Ireland!"

(That £1bn is relatively small probably makes matters worse – an outlay per DUP MP that you might expect a world-class football club to spend on a quality player. It's tangible, rather like that £350m for the NHS. £30bn? That's just money.)

For Labour, who have spent the last seven years arguing, with varying degrees of effectiveness that austerity is a choice, it's as close to an open goal as you can imagine. Theresa May's new government is now stable – but it's an open question as to how long it will take her party to feel strong again.

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

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