Why Labour has reason to hope

New data shows that 88 per cent of Osborne's cuts are still to come.

The benefits cap, which MPs voted through yesterday, is becoming an ever bigger headache for Labour. In the week that Fred Goodwin lost his knighthood and Stephen Hester lost his bonus it's worth remembering that the family next door living off benefits grates far more with voters than the banker in his mansion.

Indeed, the latest polls confirm that the policy is probably the most popular measure the government has announced. The most recent YouGov survey shows that 72 per cent of voters support the £26,000 cap and that 52 per cent want a lower threshold. Labour's reasoned objections to the cap fail to cut through because few voters are interested in the facts. They've simply fallen for the populist line that "no family should receive more in out-of-work benefits than the average family receives for going out of work". Liam Byrne's insistence that "we are in favour of a benefit cap, but we like a cap that doesn't backfire" makes little sense to voters. Why would a cap of £26,000 - an amount that seems generous to most people- backfire?

The one hope for Labour is that as the full force of Osborne's austerity programme is felt the mood will shift. The startling fact from yesterday's Institute for Fiscal Studies Green Budget that 88 per cent of the planned public spending cuts and 88 per cent of the planned welfare cuts are still to come explains why Ed Balls and Ed Miliband believe they can still turn round the polls (the Tories currently enjoy a 12-point lead as the party that would best handle the economy). As many families experience unemployment for the first time in a generation, these ratings will begin to shift.

For this reason, it's unsurprising to learn this morning from ConservativeHome's Tim Montgomerie that Number 10 is not forecasting a Tory majority at the next election. As I've noted before, even after the boundary changes have been implemented, the Tories will still need a seven point lead to win a majority. Labour, conversely, will require a lead of just 4 per cent. Another hung parliament looks like the most likely outcome of the next election. Those Conservative optimists and those Labour pessimists who expect to see a Tory majority in 2015 should look again at the data.

George Eaton is political editor of the New Statesman.

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Labour will win the London elections – they’ve just lost the spin war

The question is, does that matter? 

Cancel the champagne in Jeremy Corbyn’s office? A new YouGov poll for Queen Mary’s Mile End Institute shows Labour slipping back from the record-breaking heights of 53 per cent in the local elections in London… to the still record-breaking heights of 51 per cent.

There are two things to note first off: the first, of course, is that Labour would still be posting the best result of any party in the capital since 1971, and its best since these boroughs were founded. The second is that as the change is within the margin of error, it could all be noise.

My sense, from talking to the local parties throughout the capital is that there has been a slight fall in Labour support but it is not evenly spread. In Barnet, the party’s ongoing difficulties with antisemitism have turned what looked a certain victory into a knife-edge fight. In Wandsworth, stories in the Standard about the local Momentum group have successfully spooked some residents into fearing that a Labour victory in that borough would imperil the borough’s long history of ultra-low council tax, while the presence of a fairly well-organised campaign from new party Renew is splitting angry pro-Remain vote. But elsewhere, neither Labour nor Tory local activists are reporting any kind of fall.

However, it does show how comprehensively Labour have lost the spin war as far as what a “good” set of local election results would be next week: as I laid out in my analyses of what a good night for the major parties would be, Wandsworth and Westminster councils, both of which would stay blue if this poll is borne out, should not be seen as essential gains for Labour and should properly be seen as disastrous defeats for the Conservatives.

However, CCHQ have done a good job setting out a benchmark for what a good night looks like to the point where holding onto Bexley is probably going to be hailed as a success. Labour haven’t really entered the spin wars. As I noted on our podcast this week, that’s in part because, as one senior member of Team Corbyn noted, there is a belief that whatever you do in the run-up, the BBC will decide that there is merit in both sides’ presentation of how the night has gone, so why bother with the spin war beforehand? We may be about to find out whether that’s true. The bigger question for Labour is if the inability to shape the narrative in the face of a largely hostile press will be a problem come 2022. 

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