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| Reform Labour party or face certain defeat, insiders warn Ed Miliband | Reform Labour party or face certain defeat, insiders warn Ed Miliband |
| (6 days later) | |
| There are times in the House of Commons when the political weather can change almost in an instant, and the period shortly after midday last Wednesday was one of them. | There are times in the House of Commons when the political weather can change almost in an instant, and the period shortly after midday last Wednesday was one of them. |
| David Cameron and Ed Miliband were arguing over a lack of school places and it all seemed fairly routine stuff at prime minister's questions. Then Cameron took aim. "What is so interesting is that he [Miliband] is taking his script from the trade unions, who do not like choice, who do not like new schools, who do not like free schools – they want to control everything," he said. "But we know one organisation they have got control of. We see it in black and white – they have taken control of the Labour party." | David Cameron and Ed Miliband were arguing over a lack of school places and it all seemed fairly routine stuff at prime minister's questions. Then Cameron took aim. "What is so interesting is that he [Miliband] is taking his script from the trade unions, who do not like choice, who do not like new schools, who do not like free schools – they want to control everything," he said. "But we know one organisation they have got control of. We see it in black and white – they have taken control of the Labour party." |
| Over the following 20 minutes, Cameron spat out the name of Unite – the superunion that has given Labour more than £8m since 2010 and is its biggest financial backer by far – nine times, and that of its leader, Len McCluskey, four times, as Tory MPs roared their approval. Miliband and Ed Balls, sitting to his left, shook their heads, but in the way boxers do after being stunned by a hefty punch. Miliband tried to strike back by talking about Cameron's "dinners for donors in Downing Street" and his ethical "double standards", but it was too late. The simple messages that Lynton Crosby, Cameron's Australian strategist, clearly wants the PM to recite at every turn from now until the general election in 2015 had hit their target. | Over the following 20 minutes, Cameron spat out the name of Unite – the superunion that has given Labour more than £8m since 2010 and is its biggest financial backer by far – nine times, and that of its leader, Len McCluskey, four times, as Tory MPs roared their approval. Miliband and Ed Balls, sitting to his left, shook their heads, but in the way boxers do after being stunned by a hefty punch. Miliband tried to strike back by talking about Cameron's "dinners for donors in Downing Street" and his ethical "double standards", but it was too late. The simple messages that Lynton Crosby, Cameron's Australian strategist, clearly wants the PM to recite at every turn from now until the general election in 2015 had hit their target. |
| With Miliband already struggling to contain a scandal over Unite's alleged role in trying to fix the selection of a parliamentary candidate in Falkirk by buying up new party members Cameron twisted the knife. "Too weak to stand up for free schools, too weak to stand up to the Unite union, too weak to run Labour and certainly too weak to run the country." | With Miliband already struggling to contain a scandal over Unite's alleged role in trying to fix the selection of a parliamentary candidate in Falkirk by buying up new party members Cameron twisted the knife. "Too weak to stand up for free schools, too weak to stand up to the Unite union, too weak to run Labour and certainly too weak to run the country." |
| Ever since Miliband narrowly beat his brother, David, to the party leadership in 2010, with the second-preference votes of union members making all the difference, this was what Labour feared – that Ed would be painted as the union puppet. Miliband realised the danger too and wanted to stamp his mark on his party – or so it seemed. | Ever since Miliband narrowly beat his brother, David, to the party leadership in 2010, with the second-preference votes of union members making all the difference, this was what Labour feared – that Ed would be painted as the union puppet. Miliband realised the danger too and wanted to stamp his mark on his party – or so it seemed. |
| In summer 2011 a glossy red document produced by former cabinet minister Peter Hain, ambitiously entitled "Refounding Labour to Win: A Party for a New Generation", rolled off the presses. It was bursting with ideas, including a plan to rewrite clause I of Labour's constitution (à la Tony Blair, who scrapped the old clause IV). Hain also suggested a new system of registered supporters, and drew lessons from Barack Obama's local campaigning methods in the US. | In summer 2011 a glossy red document produced by former cabinet minister Peter Hain, ambitiously entitled "Refounding Labour to Win: A Party for a New Generation", rolled off the presses. It was bursting with ideas, including a plan to rewrite clause I of Labour's constitution (à la Tony Blair, who scrapped the old clause IV). Hain also suggested a new system of registered supporters, and drew lessons from Barack Obama's local campaigning methods in the US. |
| Most controversially, Miliband's team briefed that he intended to reduce union voting power at party conferences. The message was tough. "Ed has said he wants to do this through consensus but he is not going to give the unions a veto about change. We are not going to concede," said a senior official at the time. | Most controversially, Miliband's team briefed that he intended to reduce union voting power at party conferences. The message was tough. "Ed has said he wants to do this through consensus but he is not going to give the unions a veto about change. We are not going to concede," said a senior official at the time. |
| Two years on, Refounding Labour to Win is largely forgotten. Most Labour MPs cannot recall what it proposed, nor can officials. When the unions kicked up about reducing the block vote, the difficult parts of the blueprint were quietly abandoned. "Nothing has happened except a very few small changes and bits on registered voters," said one party figure involved in drawing up this supposed blueprint for change. | Two years on, Refounding Labour to Win is largely forgotten. Most Labour MPs cannot recall what it proposed, nor can officials. When the unions kicked up about reducing the block vote, the difficult parts of the blueprint were quietly abandoned. "Nothing has happened except a very few small changes and bits on registered voters," said one party figure involved in drawing up this supposed blueprint for change. |
| It is this stop-go approach to reform that has made Miliband even more vulnerable to the scandal over alleged vote-rigging by Unite. "When something like this happens, as it was bound to some time, he is like a sitting duck because he has no story to tell," said a party source. Last week was close to a nightmare for Miliband as the Tory narrative of a party overrun by McCluskey and his clan of hard-left activists took hold. In bizarre circumstances, Tom Watson, the party's general election strategist responsible for parliamentary selections, suddenly resigned from the shadow cabinet the day before Miliband referred the whole Falkirk mess to the police. Miliband told McCluskey he had to "take responsibility" for the activities of his union and McCluskey replied accusing Labour and its leader of "smears", insisting they had lost his trust. Disastrously Labour was in open war with its paymaster-in-chief less than two years before a general election. And the Tories were loving every minute. | It is this stop-go approach to reform that has made Miliband even more vulnerable to the scandal over alleged vote-rigging by Unite. "When something like this happens, as it was bound to some time, he is like a sitting duck because he has no story to tell," said a party source. Last week was close to a nightmare for Miliband as the Tory narrative of a party overrun by McCluskey and his clan of hard-left activists took hold. In bizarre circumstances, Tom Watson, the party's general election strategist responsible for parliamentary selections, suddenly resigned from the shadow cabinet the day before Miliband referred the whole Falkirk mess to the police. Miliband told McCluskey he had to "take responsibility" for the activities of his union and McCluskey replied accusing Labour and its leader of "smears", insisting they had lost his trust. Disastrously Labour was in open war with its paymaster-in-chief less than two years before a general election. And the Tories were loving every minute. |
| Labour tried to dismiss Falkirk as a one-off but everyone knows it is not. The central accusation is that Unite has been recruiting large numbers of new members into the party in Falkirk and paying their party membership fees – in some cases without their knowledge – in an attempt to vote rig the forthcoming parliamentary selection and install Unite's favoured leftwing candidate into the parliamentary seat. Such things go on across the country, say party figures. | Labour tried to dismiss Falkirk as a one-off but everyone knows it is not. The central accusation is that Unite has been recruiting large numbers of new members into the party in Falkirk and paying their party membership fees – in some cases without their knowledge – in an attempt to vote rig the forthcoming parliamentary selection and install Unite's favoured leftwing candidate into the parliamentary seat. Such things go on across the country, say party figures. |
| On learning how bad things were, the party has taken national control of the Falkirk selection and suspended Karie Murphy, Watson's office manager, who had been trying to win the nomination. Stephen Deans, the local party chairman, was also suspended. For the Tories it has been political gold. McCluskey, who cut his teeth in the strike-prone Liverpool docks of the late 1960s – and who admits he used to support Derek Hatton's Militant – perfectly fits their caricature of an old-style, unaccountable union baron. | On learning how bad things were, the party has taken national control of the Falkirk selection and suspended Karie Murphy, Watson's office manager, who had been trying to win the nomination. Stephen Deans, the local party chairman, was also suspended. For the Tories it has been political gold. McCluskey, who cut his teeth in the strike-prone Liverpool docks of the late 1960s – and who admits he used to support Derek Hatton's Militant – perfectly fits their caricature of an old-style, unaccountable union baron. |
| The despair at the top of the Labour party cannot be overestimated and some talk of its death. David Blunkett, the former home secretary, said the Falkirk fiasco showed that Labour risked becoming the "party of the graveyard" unless it sorted out its relations with the unions. | The despair at the top of the Labour party cannot be overestimated and some talk of its death. David Blunkett, the former home secretary, said the Falkirk fiasco showed that Labour risked becoming the "party of the graveyard" unless it sorted out its relations with the unions. |
| "Make no mistake, this is serious for us," said one member of the shadow cabinet on Friday. "We are vulnerable to this stuff not just because it is bad in itself but because we have no counter-story. Ed has not developed a vision of what he wants the party to be in the 21st century. What does he want this party to be? What does he want it to look like?" | "Make no mistake, this is serious for us," said one member of the shadow cabinet on Friday. "We are vulnerable to this stuff not just because it is bad in itself but because we have no counter-story. Ed has not developed a vision of what he wants the party to be in the 21st century. What does he want this party to be? What does he want it to look like?" |
| It is often said that Miliband's greatest achievement as leader has been to keep Labour united. But some now wonder if the price of that unity has been a lack of boldness and whether Miliband needs some real arguments to define himself.. | It is often said that Miliband's greatest achievement as leader has been to keep Labour united. But some now wonder if the price of that unity has been a lack of boldness and whether Miliband needs some real arguments to define himself.. |
| The Falkirk crisis has fed a sense that Labour is also drifting on policy. On Friday the party's depression was compounded as huge numbers of Tories agreed in the House of Commons about something they had not been united on for decades: Europe. "At last my wonderful party has found a voice," the grand old Eurosceptic Sir Richard Shepherd told his colleagues as they voted in favour of a referendum by 2017. By contrast, indecision reigned over Labour's attitude to giving the people a say. | The Falkirk crisis has fed a sense that Labour is also drifting on policy. On Friday the party's depression was compounded as huge numbers of Tories agreed in the House of Commons about something they had not been united on for decades: Europe. "At last my wonderful party has found a voice," the grand old Eurosceptic Sir Richard Shepherd told his colleagues as they voted in favour of a referendum by 2017. By contrast, indecision reigned over Labour's attitude to giving the people a say. |
| This weekend, senior Labour figures are racking their brains about how Miliband should react in order to get himself out of trouble. He says he will "mend" not "end" the union link and insists worthwhile reforms are already under way. But his ideas are still imprecise and what he announces in a speech on Tuesday may not be enough to silence his critics. Some want him to replicate the ruthlessness he displayed in taking on his brother in 2010 in dealing with party reform and union links. If he doesn't, they fear Labour's chances of winning in 2015 will begin to slip away. "Everyone knows this is his biggest moment," said one source close to the leader. "He has to show he will take on vested interests not just on the right but also on the left." | This weekend, senior Labour figures are racking their brains about how Miliband should react in order to get himself out of trouble. He says he will "mend" not "end" the union link and insists worthwhile reforms are already under way. But his ideas are still imprecise and what he announces in a speech on Tuesday may not be enough to silence his critics. Some want him to replicate the ruthlessness he displayed in taking on his brother in 2010 in dealing with party reform and union links. If he doesn't, they fear Labour's chances of winning in 2015 will begin to slip away. "Everyone knows this is his biggest moment," said one source close to the leader. "He has to show he will take on vested interests not just on the right but also on the left." |
| One idea gaining currency is for Miliband to back changes to party funding rules so every union member would have to "opt in" to paying the political levy to Labour. Money given to Labour could then be presented as being from millions of individuals, not big slugs of union cash. In return, Labour would demand that the Tories agree to a cap of, say, £50,000 on donations from businesspeople or other individuals – a move they would almost certainly reject. Labour could pose as the party of the small man and woman, not the union baron and baroness. | One idea gaining currency is for Miliband to back changes to party funding rules so every union member would have to "opt in" to paying the political levy to Labour. Money given to Labour could then be presented as being from millions of individuals, not big slugs of union cash. In return, Labour would demand that the Tories agree to a cap of, say, £50,000 on donations from businesspeople or other individuals – a move they would almost certainly reject. Labour could pose as the party of the small man and woman, not the union baron and baroness. |
| Miliband insists that he wants reform. But we have heard that before. If he is to change the political weather back in Labour's favour, this time he really has to mean it and see it through. If he does not, last week's troubles will be just the beginning. | Miliband insists that he wants reform. But we have heard that before. If he is to change the political weather back in Labour's favour, this time he really has to mean it and see it through. If he does not, last week's troubles will be just the beginning. |
| THE KEY PLAYERS | THE KEY PLAYERS |
| LEN MCCLUSKEY | LEN MCCLUSKEY |
| The general secretary of Unite denies that his union is guilty of packing the Falkirk Labour party with its own members in an attempt to get its favoured candidate for MP selected. He has gone on the attack, accusing the Labour party of attempting to smear him and his members. | The general secretary of Unite denies that his union is guilty of packing the Falkirk Labour party with its own members in an attempt to get its favoured candidate for MP selected. He has gone on the attack, accusing the Labour party of attempting to smear him and his members. |
| ERIC JOYCE MP | ERIC JOYCE MP |
| It was the MP's drunken brawling in a Commons bar, and his subsequent expulsion from the Labour party, that created the need for a new member for Falkirk. This weekend Joyce broke his silence to accuse Unite officials of acting arrogantly and irresponsibly in the row. | It was the MP's drunken brawling in a Commons bar, and his subsequent expulsion from the Labour party, that created the need for a new member for Falkirk. This weekend Joyce broke his silence to accuse Unite officials of acting arrogantly and irresponsibly in the row. |
| TOM WATSON MP | TOM WATSON MP |
| The former union official, who has close links to Len McCluskey, resigned last week as election co-ordinator over the Falkirk selection inquiry. He told Miliband he was also tired of the shadow cabinet "merry-go-round" and condemned briefings against him given by fellow shadow cabinet members. | The former union official, who has close links to Len McCluskey, resigned last week as election co-ordinator over the Falkirk selection inquiry. He told Miliband he was also tired of the shadow cabinet "merry-go-round" and condemned briefings against him given by fellow shadow cabinet members. |
| KARIE MURPHY | KARIE MURPHY |
| Murphy was Tom Watson's office manager and Unite's preferred candidate for Falkirk. She has been suspended by the party along with Falkirk party chairman Stephen Deans. | Murphy was Tom Watson's office manager and Unite's preferred candidate for Falkirk. She has been suspended by the party along with Falkirk party chairman Stephen Deans. |
| JIM MURPHY MP | JIM MURPHY MP |
| The shadow defence secretary put his head above the parapet to be one of the first to publicly condemn Unite for its behaviour. Murphy said that the union had overstepped the mark but in doing so exposed the divisions between the Blairite and Brownite factions that continue to bedevil the Labour party. | The shadow defence secretary put his head above the parapet to be one of the first to publicly condemn Unite for its behaviour. Murphy said that the union had overstepped the mark but in doing so exposed the divisions between the Blairite and Brownite factions that continue to bedevil the Labour party. |
| THE LEADER UNDER PRESSURE | THE LEADER UNDER PRESSURE |
| Ed Miliband has let it be known that he is 'incredibly angry' about the affair and is distancing himself from the unions. But he made Tom Watson, a former flatmate of McCluskey, deputy chairman of the Labour party and 2015 general election co-ordinator, with the job of overseeing the selection of parliamentary candidates. | Ed Miliband has let it be known that he is 'incredibly angry' about the affair and is distancing himself from the unions. But he made Tom Watson, a former flatmate of McCluskey, deputy chairman of the Labour party and 2015 general election co-ordinator, with the job of overseeing the selection of parliamentary candidates. |