Where are the Milibandites when Ed needs them?

The Labour leader has to look like the head of a movement when he takes on Unite, not a lone crusader.

Political leaders are never short of unhelpful advice in a crisis. Wherever Ed Miliband turns he is told that he must be bold, that his actions must be decisive, that this deadly row with Unite and Len McCluskey could also be an opportunity, containing the seeds of renewed leadership and status.

I wrote something to that effect at the end of last week. Shortly afterwards, the messages started to come in from people who want Ed to succeed – aides and loyal MPs – saying, in effect, “yes, fine, but what?” Good question. Difficult question. A moment to reflect on how hard it is being leader of the Labour party.

Miliband’s team know they need to take charge of the situation. They know this is becoming a defining moment in the Labour’s leader’s bid to become Britain’s next Prime Minister. They know the outcome they need is Miliband emerging stronger, more clearly defined in the public imagination as a man not to be underestimated – a man whose hidden steel is revealed. What isn’t clear is how they get to there from where they are now.

The first thing they need to settle is the parameters of the battlefield. Is Ed Miliband’s leadership going to be proven in his capacity to deal with the small matter of alleged vote-rigging in Falkirk or the larger question of Unite’s explicit political strategy to influence Labour by exerting its financial and organisational muscle in candidate selections? Len McCluskey denies there was anything wrong with the Falkirk process. That is true, I suppose, once you accept that the job of getting as many Unite-dependent MPs in parliament overrides any other consideration of best practice. According to a solid Leninist ends-justifies-the-means view of the situation, Falkirk is, as some Unite officials declared it, “exemplary”. However, in terms of expressing the kind of political organisation Labour wants to be and be seen to be, Falkirk is a monumental disaster. As one party insider put it to me the other day, “the choice now is between open and closed. It’s two different kinds of politics.”

So Miliband needs to be clear about whether he is trying to close an institutional loophole or change an institutional culture. His article in this morning’s Observer suggests it is the latter, which is entirely the right choice. He makes the connection between Falkirk and general public alienation from politics. He makes the point that the main challenge for the wider labour movement is making itself relevant to successive generations of workers who may not be members of trade unions. So far so good.

Miliband also says Labour should “mend, not end” its link with the unions. That too is a sensible position to take. It is the only realistic option. The Labour leader is walking along a narrow ridge. On one side is the danger of capitulation to the McCluskey agenda, accepting that union money has a veto over party reform. But on the other side is the danger of embracing a definition of leadership cooked up by Labour’s enemies in the Conservative party and the Conservative press. They will set tests of aggression towards the unions that he will never pass, while vandalising his support base in the attempt. How well he navigates this challenge will be decided by the definition he chooses for the word “mend.” You can mend some things by covering them in gaffa tape. Or you can take them apart and put them back together again. I sense in this situation a major institutional revision is in order. Ironically, one test of its effectiveness may turn out to be creating a system that, had it been in place in 2010, would have led to a different outcome in the Labour leadership contest. Miliband may not like that feature of the debate, but he would be unwise to ignore it completely.

The Labour leader thought Len McCluskey and Tom Watson were on his side. It is clear they were not. Miliband’s real friends are the people who now come out clearly and visibly to say without equivocation that the culture inside the party must change and that they believe Ed is the man with the requisite moral judgement and political capability to do it. At the moment, there are not too many of those people around. When David Cameron gets into trouble he can normally rely on some cabinet heavy-hitters and retired big beasts to intervene on his side. (When John Major is on the Today programme it is normally a sign that Downing Street is feeling besieged.)

Who are the equivalent people closing ranks around Ed Miliband? He has lost the protection of the old Brown machine and the old Blair brigade is watching from the wings mouthing, “we told you so”. The Labour leader has supporters in the party. There is no shortage of MPs who wish him well and want him to succeed. They all do, to the extent that they want a Labour government and Miliband is the only leader they’ve got. The vital missing component from the project has always been the sense of a movement larger than Ed himself – the aggregate charisma of a bunch of people who are easily and clearly defined by shared purpose and shared belief. Three years after the election it is still hard to identify a prominent and powerful phalanx of ardent “Milibandites”. If they are out there, they now need to make themselves heard. Their leader needs them.

Ed Miliband. Photo: Getty

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

Photo: Getty Images
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Autumn Statement 2015: whatever you hear, don't forget - there is an alternative

The goverment's programme of cuts is a choice, not a certainty, says Jolyon Maugham.

Later today you will hear George Osborne say there is no alternative to his plan to slash a further £20bn from lean public services by 2020-21. He will also say that there is no alternative to £9bn cuts to tax credits, cuts that will hit the poorest hardest, cuts of thousands of pounds per annum to the incomes of millions of households.

But there is.

As I outlined here the Conservatives plan future tax cuts which benefit, disproportionately or exclusively, the wealthy. Suspending those future tax cuts for the wealthy would say, by 2020-21, £9.3bn per annum.

I also explained here that a mere 50 of our 1,156 tax reliefs cost us over £100bn per annum. We don't know how much the other 1,106 reliefs cost us - because Government doesn't monitor them. And we don't know what public benefit they deliver - because Government doesn't check.

What we do know, as I explained here, is that they disproportionately and regressively benefit the wealthy: an average of £190,400 per annum for the wealthiest.

And we know, too, that they include (amongst the more than 1,000 uncosted reliefs) the £1bn plus “Rights for Shares Scheme” - badged by the Chancellor as for workers but identified by a leading law firm as designed for the wealthiest.

Simply by asking a question that the Chancellor chooses to ignore - do these 1,156 reliefs deliver value for money - it is entirely possible that £10bn or more extra in taxes could be collected without any loss of  public benefit

To this £19bn, we might add the indiscriminate provision - both direct and indirect - of public money to wealthy pensioners.

Those above basic state pension age enjoy a tax subsidy of up to 12% on earned income.

Moreover, this Office for National Statistics data (see Table 18) reveals that the 10% of wealthiest retired households - some 714,000 households - have gross pre-tax and pre-benefit private income of on average £43,983. Yet still they enjoy average cash benefits from government of £11,500 per annum.

Means testing benefits to exclude that top 10 per cent of retired households would save £8.2bn per annum. And why, you might wonder aloud, should means testing be thought by the government appropriate for the working age population, yet a heresy for retired households?

Add in abolition of that unprincipled tax subsidy and you'll save even more. 

So there are alternatives. Clear alternatives. Good alternatives. Alternatives that enable those with the broadest shoulders to bear some share of the pain. Don't allow yourself to be persuaded otherwise.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.