Rachel Sylvester
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A year after Gordon Brown became Prime Minister, the Labour Party seems to have adopted the Gerald Ratner approach to its leader. Ministers, backbenchers, party activists all declare that the product is “crap” but they still want the voters to buy it at the next election.
It is impossible to get through a lunch at Westminster without conversation turning to the leadership. Over the starter, there is a discussion of the election that never was, with the main course an analysis of psychological flaws and when the coffee arrives it is time for a debate about who could take over.
“I can't find anyone who champions Gordon any more,” one Cabinet minister told me. “We all thought he'd have this big box of fireworks that he'd open and we'd go - wow'. But there was nothing. The leader needs a bit of swagger, it's not enough to be clever, you need some public appeal.”
Another senior figure says that there are too many “semi-measures” coming out of Downing Street. “Gordon says one thing to please the Left, another to please the Right but there's no overriding message.”
In the July edition of Progress magazine, Lord Giddens, the new Labour guru, joins the fray. “I do have to confess to feeling not only disappointed at, but angry about, the string of poor decisions that have put Labour in such a weak position today,” he writes. “I don't buy the argument that the Government is not responsible for its current situation, that it's mostly the fault of the big, bad global economy.”
And yet nobody is seriously considering an attempt to depose Mr Brown. They have decided that the risks of doing so outweigh the potential benefits. The party is therefore in danger of going into the next general election campaign in the worst possible position - with a leader who appears not to have the confidence of his own troops. “We're all doomed,” a Cabinet minister says. “We might as well ring the removal vans to take us out of office.”
But one group is not about to take defeat lying down. The wealthy donors who have contributed to the Labour Party over the past ten years did not get rich by backing losers. They are used to hiring and firing people in their professional lives and they are unsentimental about their politics too. I bumped into one rich businessman, who has given substantial sums to Labour, rushing into the House of Lords last week.
“I'm not going to give them any more money while Gordon Brown is leader,” he declared. “It's time for the next generation to take over.”
Another former donor admitted that he was deeply disappointed by the Labour leader's performance “He's just not up to the job,” he said. “Being Chancellor played to all his strengths but Prime Minister seems to bring out every weakness.”
One potential leadership candidate claims that three of the party's longstanding backers have telephoned him to say that they would start giving again if Mr Brown stands down. A group of Labour donors recently met to discuss whether Alan Johnson or David Miliband would be a more popular replacement. It is not just the Blairites such as the businessman Lord Hollick who are disillusioned. Brownites are losing faith too. Lord Paul, the steel magnate who has supported the Prime Minister for years, now tells friends that he does not think Mr Brown has what it takes to do the top job.
All this matters because the Labour Party is heading for financial meltdown. Even Ray Collins, its new general secretary, admits that its finances are in a parlous state. Mr Brown's preferred candidate to take charge of the organisation - David Pitt-Watson, a City fund manager - turned down the job because he did not want to become personally liable for more than £20 million of debt. Labour has until Monday to submit its accounts to the Electoral Commission. It is touch and go whether the auditors will sign them off. The party could still ask for an extension, rather than be declared bankrupt.
According to the latest figures from the Electoral Commission, large individual gifts to the Labour Party have almost completely dried up. More than 90 per cent of donations in the first quarter of this year came from trade unions. Party sources say that there have been some contributions in the past few weeks - including around £250,000 from Sir Ronald Cohen, the venture capitalist. But attempts to renegotiate a series of multimillion-pound loans after the cash-for-peerages affair, are not going well. One wealthy man with a loan outstanding has made it clear that he does not want to be “taken for granted”.
“He's invested in something, he can see it going wrong, he wants to know how it's going to be put right,” a friend said. Even Lord Sainsbury of Turville, one of Labour's most loyal and generous benefactors throughout the Blair years, now makes loans rather than gifts. The trade unions would certainly bail the party out but Mr Brown would be reluctant to find himself beholden to the brothers.
This puts the donors - or potential donors - in an extraordinarily powerful position. When Stuart Wheeler, one of the Tory Party's biggest benefactors, spoke out against Iain Duncan Smith it was the beginning of the end of his leadership. It is hard to imagine Labour taking orders from its super-rich paymasters - in fact, if the donors did go public with their concerns, their intervention could strengthen Mr Brown's position with MPs and activists who were always suspicious of Mr Blair's alliance with wealth. However, if the party suspects that the donors are reflecting wider public opinion, they could just tip the balance against the Prime Minister.
It is not only the country that is facing a credit crunch. “Follow the money,” Deep Throat tells Bob Woodward in the film All the President's Men. At the moment the money is running as fast as it can away from No10.
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harj, Birmingham,
The BNP may only poll around 4% at the moment, but you'll have noticed it beat Labour in Henley recently.
And in my experience, more like 94% of indigenous Brits are now openly sick of the way this country is heading, to the extent that voting BNP is becoming acceptable.
j griffiths, manchester, england
The great unwashed in the Labour Party are turning on their leader to take the heat off themselves. Have they helped him or have they just helped themselves? These bankrupt jobsworths on the Front Bench are jostling for the leadership like feral cats in a bag. One out, the lot out I say.
albert hall, hall, england
Continued..............Yes its time for the Conservatives to clear up the mess again (as usual)
steve cartmell, Preston/london in that order, England (the original version)
j. griffiths is so right. the bnp is the only party in touch. in touch with the bigots and racists.
harj, birmingham, uk
Who will finish off Gordon Brown? Lord Levy is doing his best.
Maurice Smith, Medway, UK
J Griffiths is right. The BNP is the only party is in touch. In touch with the morons and the bigots that is! and thats only about 4% of the population.
h, birmingham, uk
I predict that not only will the the Tories have a landslide win but also that the liberal democrats will form Her Majesty's opposition after the next election. Labour will be probably reduced to about 50 MPs and Gordon Brown and most of the labour ministers will lose their seats. Labour is finished
David Maclachlan, Romanshorn, Switzerland
I'll go for the BNP.
frank riley, Auckland, NZ
Last year the team behind the Oz PM was incapable of action to replace him when defeat was looming and they lost heavily.
McBroon dooms McLabour to a landslide loss, but ministers are as rabbits in headlights.
So timid and incompetent, they can't do the obvious and so will be out for 2-3 terms.
Padraig, Perth, Australia
Its true that it is the credit crunch but labout is to blame for not having foreseen it and carried on spending like there's no tomorrow. So weathering this will be harder than otherwise. Labour, under Gordon encouraged borrowing all these years to show off a false economy. Stay or go no quick fixes
Glynn, Canada,
Certainly Brown and Labour are pointless and disconnected (viz immigration and 'positive' discrimination against indigenous white males. How many of them are struggling to find work and will now find it harder?)
Sadly, the Tories aren't much more in touch. Has to be the BNP then....
j griffiths, manchester, england
bring on the day when the labour party doesnt exist
russell, Newton Abbot,
I hear about the money, I hear about the frustrated rich (bless them),having digested this article,why should any voter bother?
Richard Quigley
Glasgow
Richard Quigley, Glasgow,
Financially bankrupt, philosophically bankrupt, morally bankrupt. Send them to the Receiver's at the earliest oportunity.
Mike, Macau,
"I hope that the Labour Party doesn't find some excuse to help itself from the UK coffers. That needs to be kept an eye on."
Michael Cawood,
////////////////////////////////////////////
Already have - the "Union Modernisation" fund, filched from the taxpayer, was then used to fund Labour by unions
Jeremy Poynton, Frome, Somerset
How on earth could every Labour MP find £10000? Mps aren't actually that rich.
Henry , Cardiff,
£10000 from each Labour MP and Peer should help.
Chris, Reading, UK
I hope that the Labour Party doesn't find some excuse to help itself from the UK coffers. That needs to be kept an eye on.
Michael Cawood, Wrexham, Wales, UK
This govenment has become a lame-duck govenment as proved when we were deprived a general election last year.
Perhaps the stance of David Davis and the like may force an early day motion of no confidence and Brown may have his hand forced. This tired old "new" party should retire graciously soon!
Dave Farmer, Broxbourne, England
I believe Brown will finish himself off, his middle name must be "Gaff" and the law abiding,tax paying, NHS dependant and hard working British people deserve far better after 12+ long years of this disasterous regime!
Dave Farmer, Broxbourne, England
Didn't I read a story a couple of years ago that Brown had put their house into his wife's sole name, can anyone remember that?
david webb, bournemouth, uk
Come in number 10,your time is up. It is no use looking for a second generation,you couldn't make one good one out of the lot of them.Labour is a burned out party,it is not fitting that a bankrupt party runs GB plc.
Peter, Manchester, England
Brown is a dead man walking, everybody in the country knows it, even the left wing dinosaurs that run the BBC know it.
It's only a matter of time before Cameron delivers the coup de grace and buries Brown , along with the rest of his sorry party, into the dust bin of history - bring it on.
Morse, Oxford,
To call Brown an "unelected" Prime Minister is not a valid reason for him to be ousted from power, after all the Tories appointed Anthony Eden, Harold Macmillan, Sir Alec Douglas Home and John Major without the benefit of an election. Three of them did go on to win a subsequent election.
Neil, Gloucestershire, England
I doubt anything we voters had to say about the labour leadership would make the slightest difference. After all this government was elected on a manifesto which promised a referendum on the new EU Treaty and then insults the electorate by ignoring this and imposing an unelected PM on us.
Garfield, Bishop's Waltham, UK
Is Scottish Labour also bankrupt?
mike, Midlands, UK
Poetic justice: The neo-Victorian NuLab model of sucking up to the rich while kindly dispensing charity to the deserving poor, and at the same time wasting our money on other peoples wars without our consent, doesnt even work. Told you so, Gordon.
Julia Iskandar, London, England
Let's get away from the political advertising images for a moment, and look at the facts. Not a single UK citizen had a voice in electing Gordon Brown as Prime Minister. He was appointed by Tony Blair. If that isn't dictatorship in its crudest form, what is it?
Edmund Burke, Kingston upon Thames, England
"How did we get ourselves into a state where the country is run by intellectual and moral pygmies of stunning incompetence?" asks George. It's a good question. It's thanks to "meritocracy" - trouble is we never asked "what kind of merit". So we got the really big chunks that rise to the top.
Tom Welsh, Basingstoke,
Unfortunately this illustrates what an immoral and decadent society we live in. Political leaders are pawns in a power game with wealthy families and individuals who cannot accept relinquishing their privileges in a changing world and who dont give a damns about the the rest of us. Remember 1789.
peter fieldman, paris , france
Unfortunately the Labour Party - unlike the Tories and the LIberals - never learnt to do treachery. Contrast Blair's behaviour after leaving Office with Heath's and then Thatcher's. It remains an endearing quality in a party, although it now leaves them at a disdvantage in being stuck with Brown.
Phil, Lancaster, UK
Why is everyone so pessimistic? The sun's out, there is still food in the supermarkets and the roads are quieter than usual. The Government is, as usual, best ignored; they will do a little harm, in mean ways, but we can rise above this.
Frank Upton, Solihull,
The quote from a Lab' donor is pithy & probably absolutely accurate : Being Chancellor played to all his strengths but Prime Minister seems to bring out every weakness.
This am's Today prog' s piece that oil shld be $65 if it were not for speculators makes me despair about democracy&capitalism
Tim, London,
A great article Rachel, thanks.
Can any of us name one person in the cabinet with the experience, wisdom, humanity, moral strength and intellectual capacity to do a job which is effectively CEO of a company with 60 million shareholders?
Max
http://theerrorlog.blogspot.com
Max, London,
The Labour Party is not receiving wealthy money BUT it is still getting Union money. The Unions are now in control. The strikes have started already and won't stop. Pay demands will stoke inflation so it's back to the 1970s. Nobody except us oldies remember that period but you're soon going to learn
David Kay, Hemingford Grey,
TomTom. If Labour is bankrupted, English Exec MPs would be liable for losses. Their seats would be safe, provided no negligence is shown. This does not so in Scotland. If a sequestration order is made in Scotland, the MP would be banned from the Commons for 6 mths, then his seat would be forfit!
Prof Reggie von Zugbach, Glasgow, Expat
All super-rich businessmen who backed this bunch of corrupt and incompetent misfits masquerading as a government deserve everything they get. But given their appalling lack of judgement how did they ever get rich in the first place?
IAN GIRVAN, DUNKERTON, ENGLAND
How did we get ourselves into a state where the country is run by intellectual and moral pygmies of stunning incompetence and without any real alternative even from the opposition? How do we get out of it? Who will lead the revolution?
George, Epping, England
So, the Labour Party goes into receivership. Not one Labour MP loses their job, redundancy is not an option so that leaves resignation.
I ain't holding my breath.
michael murphy, brightlingsea, england
Can Brown stand as an MP if the Labour Party is declared bankrupt ?
TomTom, Leeds, England
The only mystery is that there are captains of industry willing to finance this decaying institution. As for the unions, why are the member's still paying into their political dues? What benefits are they seeing?
Sue, Felpham,
Lets just suppose liabour goes bust. What happens next? The liquidators sell off a few desks and chairs, the creditors are hung out to dry. Liabour MPs retain their seats until Gordo calls an election. But devoid of any party machinery they get wiped out - please, please, please bring it on!
Graham, congleton,
Bankruptcy will finish Brown off, and probably Britain as well judging by the state of the banking industry. Donations of any kind to keep political parties in power is a form of corruption. Money buys political influence and inturn controls the decision making process. Britain is a poor role model.
Jim Wills, Brisbane, Australia
You are making a mystery out of nothing. Labour knows Brown is a bust, but they also know that no other candidate can step in and win the next election. So they will support Brown up to the inevitable loss and then hold a leadership contest.
Exactly where is the big mystery in this?
jon livesey, Sunnyvale, CA/USA