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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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

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