Tag Archives: Bank of England

Miliband can defeat his critics and Cameron’s leadership by reinventing the nature of opposition


Like it or not, love him or loathe him, David Cameron has proved himself to be a competent and capable leader in his first year in Number 10. He has shown himself to be easily the most adaptable Prime Minister of the 21st century and perhaps the most versatile and formidable party leader too. He has embraced the unique hurdles and challenges of coalition government to at once deliver radical policy his party believes in and please the electorate. He has vowed not to make the mistake of Tony Blair’s early years, in which political capital went unspent. He’s taken a blitzkrieg approach to numerous important issues and departments, somehow taking most of the country with him through a combination of confidence and yellow human shields.

Ed Miliband on the other hand, has been constantly under fire from both the media and Britain as a whole, and his own party. His leadership is generally, and not unjustifiably, characterised as ineffectual and inactive. He has more often than not chosen to stand by and do nothing but protest vocally at government plans. He has claimed to be the voice of Britain’s ordinary people and its “progressive majority”. His critics say that this majority doesn’t exist and even those that think it might, recognise that it has to be earned and forged from blood, sweat, tears and most crucially of all, policy.

Labour under Ed Miliband has produced almost no policy. His supporters and aides will argue that he’s been focusing on healing Labour’s image, bruised and battered by thirteen years of controversial government. But there has been no clear rebranding or change of direction either. The publication of elder brother David’s would-be acceptance speech last week highlighted just how much more Ed could have done from the start. I was critical of David’s lazy leadership campaign and even praised Ed’s more concrete vision. Looking at David Miliband’s speech though, it’s hard to argue with those who say he would be doing better as leader right now.

The speech sets out the deficit as Britain’s key political argument. It simultaneously does more to defend Labour’s record in government and admit its mistakes than Ed has done. It systematically addresses key areas with attractive focus; Ed’s speech tended to waffle more generally, focusing on alerting the world to the fact that he was an alright sort of guy. Well now we all want to know what he’s going to do to prove it.

To make things worse for the victorious Miliband, his shadow cabinet has hardly had time to settle. Alan Johnson didn’t last long as Shadow Chancellor. There has already been more than one reshuffle. Ed Balls, finally in the role he has craved for so long, is Labour’s only ray of activity. Last week he announced the one concrete policy they have in opposition; increase the bonus tax on bankers. Balls intends to gather support from rebellious Lib Dem and even Conservative MPs to push a Bill through Parliament that would take more money from the banks to fund employment schemes for the young and house building projects; to stop the rot on growth.

Now it’s obvious that one of Miliband’s weak points has been his inability to do much else besides bash the banks. Credible Prime Ministers cannot afford to make such powerful enemies or be defined by the one headline grabbing policy. But the plans of his money man Ed Balls are exactly the type of thing Labour should be doing more of. The government’s refusal to invest in the economy or change course on its programme of cuts is doing lasting damage. Labour cannot afford to just talk about this. They should hit the coalition where it hurts; by acting to safeguard the national interest it claims to be working for.

And Miliband could go further. He could say that a Labour government would not just build homes for struggling first time buyers but insist that they are all green. Labour needs a new stamp that marks out policy as theirs, which goes further than simply investment vs. cuts. As David Miliband set out, Labour has to acknowledge that it will tackle the deficit; the question is how will it do it differently?

 Ed should make it abundantly clear that he is proposing policies for consideration now, intending to pass them now because to act too late would let the state of the economy and the government’s initiatives do irreparable harm. More house building would kick start the construction industry; more homes would get the property markets moving and add stability to a fragile, slow recovery.

Miliband has continually fallen back on the fact that the party in opposition traditionally keeps its cards close to its chest until an election. People should not be expecting him to be outlining detailed policy now, he says. I defended criticisms of him early on by using the argument that he shouldn’t rush through thinking about such important issues. But he has had time now. He must have some ideas. And he needs to start sharing them.

This is not an ordinary government. The coalition can be stalled, halted and persuaded on almost any issue. Parliament is not a sea of blue and carefully selected opposition proposals could become law. The NHS “listening exercise” and the rethink of Ken Clarke’s justice reform are examples from the past week alone where Cameron has been swayed enough to track back. Ed Miliband needs to do something bold to win the respect of voters. Disclosing genuine alternatives in full and frank detail will show that Labour care enough to act in the country’s interest, not their own.

I write just hours after both leaders in the contest for the nation’s political affections made important speeches on policy. As is the trend of late, it was David Cameron’s that made the greater impact. Speaking to a meeting in London of a foundation called GAVI, backed by Bill Gates, which provides vaccines for the world’s poor, the Prime Minister would have won over voters usually hostile to all things Tory.

His detoxification of his party has been enormously successful and pledging £814 million (the biggest donation of any nation) to an effective charity, goes a long way to satisfying his own voters, thanks to a clear strategy, and others in the electorate. With one speech Cameron scored moral points as well as talking convincingly about finding a clear foreign policy role for Britain based on duty, encouraging private sector growth and stable, democratic government.

Miliband’s speech was also important. It aimed to win back the agenda of community from Cameron, who has dominated the thinking of voters even with his unsuccessful Big Society idea. Miliband talked of responsibility and made surprisingly tough statements about those who didn’t give back not receiving welfare support. There were strong strains of the Blue Labour ideology Miliband recently endorsed, which focuses on democracy and accountability at the grass roots. It was about the overall narrative direction of Miliband’s leadership and designed to answer critics.

However whilst it’s important Miliband finds a stronger and more defined guiding vision for his party, action is what the public wants from him now. For an opposition leader options are limited, so action essentially means policy announcements. The Labour leader needs to be braver and take some gambles with his leadership, to both win over the country and protect it. No one will reward him for waiting until the election.

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New Balls please…Does Ed’s reinvention answer Labour’s call for a genuine alternative?


Prior to and during this year’s historic General Election my opinion of the then Schools Secretary Ed Balls was pretty low. In countless TV appearances his arrogant, aggressive demeanour failed to endear him to me, the general public or the voters in his constituency, which he nearly lost. One appearance on a Daily Politics education debate stands out in my mind. Balls had a strong argument backed with evidence, but his bullying behaviour of the unlikeable Tory Michael Gove alienated capable Lib Dem David Laws and I suspect the viewers at home. His intense, wide eyed robotic stare gave the impression of an obsessive madman, with whom it was pointless to try and reason. I always felt afraid for the children accosted to play with him for the cameras and prayed they would escape the education minister’s clutches, unscarred by those unblinking, shining orbs. Behind the insane eyes I suspected that Gordon Brown had long ago replaced Balls’ human brain with a Tory termination calculator, more suited to Labour’s attack dog.   

The Conservatives had rightly singled him out as their Michael Portillo of 1997; an unpopular Labour big gun to be toppled to highlight the scale of the reversal, the sheer triumph of Cameron’s new blues. As it happened Balls clung to his seat and not enough red dominoes fell in the wake of the blue tide to give Cameron a majority. The fall of Balls did not materialise as the symbolic story of a Conservative return and was replaced by the drama of coalition negotiations. And with the resignation of his long term mentor Gordon Brown, Balls felt free to step out from his shadow (after a deal with his able, intelligent wife) and run for the party leadership.

Since this decision Balls has quietly transformed himself into the country’s most able Opposition politician. It’s now pretty much the generally accepted consensus that he has run the best campaign of all the Labour leadership contenders, one that focuses on the fatal flaws of the coalition and proposes serious counter policies, as opposed to sifting through the wreckage of New Labour and whining on about the party’s identity. When Brown took over from Blair the expectations were that Balls, Brown’s protégé, would eventually clash with Blair’s heir David Miliband. Due to the fact that Brown had just acquired the top job and Balls was expected to be made Chancellor, and the storm of the financial crisis was yet to break disastrously over Brown’s popularity, Balls was once favourite to become the next leader. If he retains any of the arrogant self confidence that was evident during the election campaign, he will no doubt be finding it hard to take that even the most gushing articles about him do not give him a hope in hell of success. His carefully targeted, policy driven push for the leadership has been undermined by the Miliband family feud and an image of a bullying suck-up that he can’t quite shake off.

Frankly it’s a damn shame Balls didn’t conduct himself with a little less brash brutality and a little more civility in his formative political years. If it were not for the lingering impression of a ruthless career politician, who shamelessly and tribally attached himself to one of New Labour’s rising stars, it would be far more difficult for Balls to be pinned down as a leftist candidate, with no credible chance of success. Of course it might be said that Balls would not have got where he is today by behaving differently, and that a degree of forcefulness is necessary for success in politics but his track record has nevertheless made it difficult for the party or the country to imagine him as leader. It also must be asked whether or not Balls’ transformation is genuine, as he cannot surely have shed all his unattractive qualities overnight, but the facts of his policy decisions seem to mark him out as Labour’s best hope for an alternative vision to the coalition right now.

Rightly Balls places himself in the progressive camp by backing AV and a graduate tax. He disagrees with the coalition’s package for AV, because of its various measures to redraw constituency boundaries but says he would back it in a modified form. He has called for higher taxes on the wealthy and set out a sensible argument for reducing the deficit through fair tax rises like a NI rise, that only hits those in employment, rather than the coalition’s planned VAT increase. He has been the only shadow minister to effectively challenge the new government in his area, successfully landing blows against new Schools Secretary Michael Gove, not just for his building programme cuts but on the wisdom of the free schools project. Crucially as well as setting out his own fresh, progressive policies, Balls has shown the leadership qualities and level-headedness to stick to positions Labour adopted whilst in government he still believes to be right, despite media hype swinging the other way. On the economy Balls insists that new stimulus packages are still needed to ensure jobs, housing and growth and that the pressing need for drastic deficit reduction is an ideological myth created by the Tories. Whilst the truth probably lies between the extremes of the coalition’s cuts and Balls delay and extra spending, it is refreshing to have a Labour leadership candidate point out the lunacy of the culture of fear surrounding the deficit. Balls also has the weight of past policy judgements he called right behind him, such as his opposition to the euro and creation of an independent Bank of England, but his reluctance to draw attention to his aggressive past has meant he cannot point these out in the leadership contest as enthusiastically as he would like. There is an undoubted logic and sense to Balls’ arguments, as economic growth has always been the best way to reduce the deficit through higher tax receipts.

Whilst Balls looks unlikely to become the next leader of the Labour party there are already rumours of a deal between him and David Miliband. Such a deal would probably see Balls finally have the long coveted Treasury in his sights. Before this leadership election I would have been sceptical about Balls as Chancellor and much preferred the steady hand of Alistair Darling in control of the nation’s finances. However Balls has refreshed his image sufficiently, or at least cleverly concealed his flaws, to present himself as a competent and radical member of a new look, progressive Labour front bench that could offer the country a genuine choice and avoid the gloom of prolonged Opposition.