Miliband's generation could shift Labour further to left. Photo: Getty Images
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Ed Miliband changed the Labour party in a way we don't yet fully appreciate

Ed Miliband leaves the party's left flank in ruder health than it has been for decades.

What’s Ed Miliband’s legacy? A cruel response might be “15 years of Tory power”.  But a more considered answer can be found in this morning’s Guardian.

35 people, among them the head of the TUC, Frances O’Grady, and the economist Ann Pettifor, have signed a letter calling for debt relief for Greece and an end to austerity policies throughout “Europe and across the world”. 26 of them are members of parliament.  Just six are from the explicitly anti-austerity parties – although all three Plaid Cymru MPs, and the Greens’ Caroline Lucas are all among the signatories – with the remaining 20 all drawn from the parliamentary Labour party.

Of those, 11 were elected under Ed Miliband, ten in the general election of 2015 and one, Liz McInnes, in a by-election in 2014.

Why? Partly because Miliband’s office was largely outmatched in selections by forces to his right and left, partly because one way Team Miliband bought silence – if not loyalty – from the trade unions and the left was to cede the field.  “There are two ways to fix a selection,” one veteran notes, “You can  either just do a David Miliband and plonk someone down, no questions asked, like or lump it."

In the Miliband era, the second, more subtle form of fixing was more often used; shortlists where, for one reason or another, only the preferred candidate is likely to make it through. The socially-conservative electorate of Wythenshawe & Sale were given the choice between five women, and one man, Mike Kane, who went on to become the seat’s MP.  (This doesn't always work. Liz McInness, in Heywood & Middleton, was put on the shortlist as a no-hoper. She went on to win the nomination and is still the MP now.)

For the most part, that benefited the Labour left. In Edmonton, one insider quipped that party members were offered a “cake or death” style choice between Kate Osamor, from the party’s left, and a series of candidates “no-one would ever want to vote for”.

Added to that, the Labour right has lost its gift for organisation. “A lot of people flounced after 2010 [when Ed Miliband defeated his brother, David] and took a lot of knowhow with them,” observes one MP from the party’s right. Labour’s modernisers won precious few selections in open contests, and didn’t benefit from a helping hand from Miliband either.

The overall effect has been to tilt the parliamentary Labour party towards the left for the first time in decades. “Not many lent votes there,” was the observation one Brownite grandee made of the 2015-era MPs who nominated Jeremy Corbyn. One left-leaning Labour staffer says the 2015 election was the Left’s best result “since ‘87”.

The difference is that 1987 marked the final defeat of Labour’s left flank in the civil wars of the 1980s. 2015 very probably ushers in the era of a new era of assertiveness and organisational strength from the Labour left. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.