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Differing views of Labour future? Differing views of Labour future?
(about 21 hours later)
Analysis By Vicky Young Political correspondent, BBC NewsAnalysis By Vicky Young Political correspondent, BBC News
Ministers say any suggestions of disunity will be fatal for LabourMinisters say any suggestions of disunity will be fatal for Labour
Politicians always claim they don't read much into opinion polls, but there's a growing sense among some Labour MPs that the writing's on the wall.Politicians always claim they don't read much into opinion polls, but there's a growing sense among some Labour MPs that the writing's on the wall.
The possibility of defeat has prompted another bout of leadership speculation, although few expect Gordon Brown to be removed this side of a general election.The possibility of defeat has prompted another bout of leadership speculation, although few expect Gordon Brown to be removed this side of a general election.
Cabinet members are accused of jockeying for position but this is not just about Harriet versus Hazel, or Balls against Miliband.Cabinet members are accused of jockeying for position but this is not just about Harriet versus Hazel, or Balls against Miliband.
It appears that far deeper divisions are being exposed.It appears that far deeper divisions are being exposed.
The government's response to the recession is at the heart of the argument. One of Lord Mandelson's first moves when he became business secretary was to order a review of all pending legislation to assess its impact on companies.The government's response to the recession is at the heart of the argument. One of Lord Mandelson's first moves when he became business secretary was to order a review of all pending legislation to assess its impact on companies.
Wooing the left?Wooing the left?
In the firing line are a raft of measures championed by Deputy Leader Harriet Harman, including more generous maternity leave and tougher equality legislation.In the firing line are a raft of measures championed by Deputy Leader Harriet Harman, including more generous maternity leave and tougher equality legislation.
Lord Mandelson wants to limit the financial pressures on businesses, but Ms Harman is unlikely to give up without a fight.Lord Mandelson wants to limit the financial pressures on businesses, but Ms Harman is unlikely to give up without a fight.
Her attempts to set out an equality agenda are seen by some as a blatant attempt to woo the Labour left in preparation for a leadership bid next year.Her attempts to set out an equality agenda are seen by some as a blatant attempt to woo the Labour left in preparation for a leadership bid next year.
An intervention by the leading left-winger Jon Cruddas has added fuel to the fire. Defending Ms Harman, he turned on those briefing against her, saying power was draining away from them.An intervention by the leading left-winger Jon Cruddas has added fuel to the fire. Defending Ms Harman, he turned on those briefing against her, saying power was draining away from them.
Senior figures such as Harriet Harman are said to be "jockeying" for positionSenior figures such as Harriet Harman are said to be "jockeying" for position
He described a "painful sense of loss, mixed with a dreary nostalgia - not for the idealistic, gently social-democratic Blairism of 1997, but the market-obsessed version that kicked in around 2001".He described a "painful sense of loss, mixed with a dreary nostalgia - not for the idealistic, gently social-democratic Blairism of 1997, but the market-obsessed version that kicked in around 2001".
There are many Labour MPs who agree. They regard the part-nationalisation of the banks as a clear sign that the market has failed.There are many Labour MPs who agree. They regard the part-nationalisation of the banks as a clear sign that the market has failed.
Under Tony Blair their voice was muted; hungry for electoral success, socialist instincts were suppressed but now they feel vindicated.Under Tony Blair their voice was muted; hungry for electoral success, socialist instincts were suppressed but now they feel vindicated.
A key part of New Labour was to recognise the importance of wealth makers. Today that's a far harder message to sell to the party.A key part of New Labour was to recognise the importance of wealth makers. Today that's a far harder message to sell to the party.
The looming battle over the Royal Mail is another issue that goes to the heart of Labour's dilemma.
Dozens of backbenchers look likely to vote against the plans to sell a 30% stake to the private sector.
Tougher choicesTougher choices
A recession also means harder choices for ministers. Their argument is that the market was liberalised far too early, allowing competitors to cherry pick the most profitable parts of the Royal Mail while it had to stick to the universal service obligation.
They are appalled that a Labour government is daring to go down a path which even Margaret Thatcher veered away from.
Ministers insist the part-privatisation has to go ahead so that the service can be modernised and profits can be increased - as well as warning about the health of the Royal Mail pension fund.
But union leaders are warning that the issue could push their relationship with the Labour Party to breaking point.
It appears to be another case where the recession means harder choices for ministers.
During the Blair years there was enough money for everyone. Children in poorer areas could benefit from the billions being pumped into Sure Start schemes at the same time as well-off, middle class, parents received tax breaks on their child-care costs.During the Blair years there was enough money for everyone. Children in poorer areas could benefit from the billions being pumped into Sure Start schemes at the same time as well-off, middle class, parents received tax breaks on their child-care costs.
As the financial downturn bites that's unlikely to remain the case and Labour ministers will have to choose their priorities more carefully.As the financial downturn bites that's unlikely to remain the case and Labour ministers will have to choose their priorities more carefully.
For Harriet Harman and her supporters that means more concentration on fair pay, equality and security at work, not less.For Harriet Harman and her supporters that means more concentration on fair pay, equality and security at work, not less.
The battle for the future direction of the Labour Party is already underway.The battle for the future direction of the Labour Party is already underway.