Civitas
+44 (0)20 7799 6677

The Labour and Conservative battle for the business community – how Ukip confuses everything

Joe Wright, 12 November 2014

After a bumpy weekend for Labour leader Ed Miliband there will be ever-more soul searching for the party as to why it still fails to gain traction, let alone momentum, in these crucial months. The Observer reported that there were 20 shadow ministers ready to call on him to quit this weekend, following recent polling. It is also telling that Tony Blair, the much maligned ex-leader, felt compelled to intervene and show his support for Miliband.

Fluctuations in popularity aside, Labour has also been forced to side-line Miliband’s grand proposition to the public of a One Nation Labour government, with a corrective dose of economic predistribution. It seems voters have little confidence in politicians to carry out grand economic changes. This was partly realised during the conference season when Miliband’s team turned their attention to the NHS.

Apart from a more superficial question of Miliband’s charisma as a communicator, the travails of the Labour party are not all a failure of leadership. This campaign is increasingly unfamiliar; it is not a traditional battle of ideas and strategy, but of specific issues. Ukip has added an unpredictable variable to campaigning which traditional tactics simply do not deal with. It has turned the election into a set of pitched battles.

This was none more evident than during the CBI speeches delivered by leaders of the main parties. Rightly or wrongly, businesses remain very concerned with Conservative party in-fighting over the UK’s membership of the EU. Mounting pressure on the party to deal with voter concerns with immigration has pulled the Tories away from their more comfortable pro-business position. As Prime Minister David Cameron was forced to concede this weekend during his speech, ‘Britain will not remain in Europe ‘come what may’.’ That is a very subtle but meaningful shift in message.

It opened up a much-needed opportunity for Miliband to improve his standing with business and his overall economic credibility. In his speech to the CBI, he sought to capitalise by reassuring the members that Labour would not offer a referendum (…unless there were substantial treaty changes).

Both leaders put big business in a sticky position. As the director general of the CBI commented after the labour leader’s speech, ‘Labour’s tendency to market intervention could deter investment. We believe open markets are the best way to deliver growth for all.’ The choice for business lies between possible exit from the EU, or a more interventionist prime minister – for example, on energy prices and rents.

The same applies for other voters. This morning’s papers carry an appeal from David Cameron to Labour, Lib Dem and Green party voters to vote Conservative in the coming Rochester by-election to keep Ukip out. It raises the question, will there be any voters voting for a party they want in power, or will political messages become too confused by tactics?

Newsletter

Keep up-to-date with all of our latest publications

Sign Up Here