Chris Leslie, the shadow chancellor, supports the pay freeze. But his next boss disagrees. Photo: Getty Images
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Labour at odds over public sector pay freeze

Yvette Cooper, Liz Kendall, Andy Burnham and Jeremy Corbyn are all against the public sector pay freeze. But Harriet Harman and Chris Leslie both back the policy. 

Labour's leadership candidates have all announced their opposition to the continuing public sector pay freeze, putting them on a collision course with Harriet Harman, the party's acting leader, and Chris Leslie, the shadow chancellor.

Andy Burnham, the bookmakers' favourite, was the first candidate to rule out a continuation of the pay freeze, while Liz Kendall also confirmed her opposition to continuing pay restraint at a Q&A in central London this morning. The Kendall campaign believe that they can find the money to end the freeze through reducing the scale of British tax breaks - which currently stand at £100bn a year. 

Yvette Cooper believes that continuing the pay freeze - which has been in place since 2010 - will hit recruitment and retention. "Is the Chancellor really saying he can afford to cut inheritance tax for estates worth £1million," the shadow home secretary asks, "but the people who care for us and keep us safe should have to face five more years of real term pay cuts?" Cooper believes that a decade worth of cuts to public sector pay will do lasting damage to the quality and morale of public sector staff, and that, in any case, that the NHS is increasingly having to turn to more expensive agency staff to fill staffing gaps means the savings are void.

Jeremy Corbyn, meanwhile, is against cuts and will not be supporting the public sector pay freeze. That puts all four candidates in opposition to the policy position set out by Harman and Leslie.

In some respects, the fact that Harman will leave office when the new leader is elected on September 12 renders the row moot. However, Leslie, who is supporting Cooper's bid and is a longstanding ally of the shadow home secretary, was considered likely to remain in post as shadow chancellor should either Cooper or Kendall win the leadership. (Should Burnham win, Rachel Reeves is widely tipped to be appointed both his official deputy, and shadow chancellor, shadowing George Osborne both as Chancellor and as First Secretary of State.) His support of the pay freeze may imperil his chances of keeping hold of the role, or re-open the divides of the first phase of Ed Miliband's leadership, when he and Alan Johnson disagreed over the 50p rate and tuition fees. 

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

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Stella Creasy targeted for deselection

Organisers on the left believe the Walthamstow MP is the ideal target for political, personal and geographical reasons.

Stella Creasy, the high-profile MP for Walthamstow and defeated deputy Labour leadership candidate, is the first serious target of an attempt to deselect a sitting Labour MP, the New Statesman has learnt.

Creasy, who is on the right of the party, is believed to be particularly vulnerable to an attempt to replace her with an MP closer to the Labour party’s left. Her constituency, and the surrounding borough of Waltham Forest, as well as the neighbouring borough of Leyton and Wanstead, has a large number both of new members, inspired either to join or return to Labour by Jeremy Corbyn, plus a strong existing network of leftwing groupings and minor parties.

An anti-bombing demonstration outside of Creasy’s constituency offices in Walthamstow – the MP is one of around 80 members of Parliament who have yet to decide how to vote on today’s motion on airstrikes in Syria – is the latest in a series of clashes between supporters of Creasy and a series of organized leftwing campaigns.

Allies of Creasy were perturbed when Momentum, the grassroots body that represents the continuation of Corbyn’s leadership campaign, held a rally in her constituency the night of the Autumn Statement, without inviting the MP. They point out that Momentum is supposedly an outward-facing campaign supporting Jeremy Corbyn and the Labour party towards the 2020 general election and the forthcoming local and European elections. Labour holds 27 out of 27 council seats in Creasy’s constituency, while Creasy herself has a majority of 23,195 votes.

“If you look at the seat, there is nothing to win here,” said one Labour member, who believes that Momentum and other groups are planning to depose Creasy. Momentum has denied any plot to remove Creasy as the MP.

However, Creasy has come under pressure from within her local party in recent weeks over the coming vote on bombing Syria. Asim Mahmood, a Labour councilor in Creasy’s constituency, has called for any MP who votes for bombing to face a trigger ballot and reselection. Creasy hit back at Mahmood on Facebook, saying that while she remained uncertain of how to vote: “the one thing I will not do is be bullied by a sitting Walthamstow Labour councilor with the threat of deselection if I don’t do what he wants”.

Local members believe that Mahmood may be acting as the stalking horse for his sister, the current mayor of Waltham Forest, Saima Mahmud, who may be a candidate in the event of a trigger ballot against Creasy. Another possible candidate in a selection battle is Steven Saxby, a local vicar. Unite, the recognized trade union of the Anglican Communion, is a power player in internal Labour politics.

Although Creasy has kept her own counsel about the direction of the party under Corbyn, she is believed to be more vulnerable to deselection than some of the leader’s vocal critics, as her personal style has led to her being isolated in her constituency party. Creasy is believed to be no longer on speaking terms with Chris Robbins, the leader of the council, also from the right of the party.

Others fear that the moves are an attempt by Creasy’s local opponents to prepare the ground for a challenge to Creasy should the seat be redrawn following boundary changes. The mood in the local party is increasingly febrile.  The chair of the parliamentary Labour party, John Cryer, whose Leyton and Wanstead seat is next to Creasy’s constituency, is said to fear that a fundraiser featuring the shadow foreign secretary, Hilary Benn, will take an acrimonious turn. Cryer was one of just four shadow cabinet ministers to speak against airstrikes in Syria.

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