LONDON – Labour risks getting stuck in an “electoral cul-de-sac” if it takes a “pre-New Labour” direction under its new leader, Peter Mandelson warned yesterday.
His comments were seen as a warning against the election of Ed Miliband, who has positioned himself to the left of his brother David as the pair have emerged as front-runners in the race to succeed Gordon Brown.
The former business secretary – and architect of New Labour – warned that the party risks a long period in opposition if it swings to the left and fails to recreate the wide-ranging coalition which took Tony Blair to power in 1997.
Lord Mandelson’s intervention could give a decisive boost to David Miliband’s campaign at the start of the week when MPs, MEPs, party activists and members of affiliated groups will start voting in the postal ballot to elect a new leader on September 25th.
The shadow foreign secretary sought to build momentum as the contest enters its most crucial stage, with a call to turn the Labour Party into a “living, breathing movement for change” when he addressed supporters at a Westminster rally.
Meanwhile, his brother, the shadow energy secretary, has called for Labour to end its caution over tax, telling the Independent the balance between public spending cuts and tax increases for the rich should be shifted in favour of public services.
Ed Miliband said New Labour had become “ideologically beached” because it was haunted by “old ghosts” from the past, when the party was viewed as tax-raising and anti-American. Its desire to hide the views of some members from voters had led to a “control freak” mentality.
“What happened to New Labour is that we got stuck – defending flexible labour markets and not understanding the limits to markets at a time when the world had moved on,” he said.
“If you don’t move with it, we end up being ideologically beached – defending bankers’ bonuses, saying you can’t have a top rate of tax on earnings above £150,000 and a living wage. You end up being out of touch with the public . . . We became overly cautious. Government does that to you.”
Lord Mandelson said anyone who tried to take Labour back to the era before Mr Blair’s election as leader in 1994 would wreck the chance of a return to power. “I think that if he or anyone else wants to create a pre-New Labour future . . . he and the rest of them will quickly find that that is an electoral cul-de-sac.” – (PA)