What if Labour splits?

Meg-Russell

In the post-referendum turmoil facing the Labour Party, there are increasing questions about whether the party might split. Despite shadow cabinet resignations and a Parliamentary Labour Party vote of no confidence, Jeremy Corbyn seems determined to hang on, and to force a contest if necessary. If that proceeds, a split looks very likely. But what would this mean in organisational terms: both inside parliament and beyond? Meg Russell investigates.

Events in the Labour Party over the last week have been extraordinary. Accused of a lacklustre performance in the Brexit referendum, party leader Jeremy Corbyn has lost the majority of his frontbench through resignations – sparked by his dramatic sacking of Shadow Foreign Secretary Hilary Benn. Labour MPs have now agreed a motion ‘That this PLP has no confidence in Jeremy Corbyn as Leader of the Parliamentary Labour Party’, by 172 votes to 40. Yet still Corbyn seems determined to hang on, and to force a contest in the wider party, hoping to retain the support of his activist base. As noted in a previous post this follows rule changes turning the Labour leadership contest into a fully ‘one member one vote’ process, and giving voting rights to ‘supporters’ who signed up for just £3. Left-wing activists flooded into Labour to vote for Corbyn, with the unprecedented consequence in British politics that a parliamentary party was left with a leader which it did not support. The problem in the referendum was not only that Corbyn campaigned half-heartedly, and was even accused of actively undermining the Labour Remain campaign, but that his presence from the very outset meant that the media and public had ceased taking Labour seriously.

The prospect of a contest raises the very serious possibility of a Labour Party split. If there were a contest and Corbyn won, the majority of his MPs might well feel forced to abandon the party. If he lost, he and his supporters might be forced out. Indeed a split might even be seen by some in the party as preferable to a contest – which would run all summer and could only have a messy end. But how would a Labour Party split work in practice? What, in particular, would be the immediate parliamentary consequences? What are the wider organisational repercussions? This post focuses particularly on the former, but touches on the latter – concluding that they are far more difficult.

On the parliamentary side there are three immediate considerations. The first, which is relatively straightforward, is the question of who becomes the official opposition. But there are various scenarios in terms of who would become the second largest opposition party, which could have consequences beyond Labour. An additional question which need not cause too much difficulty concerns distribution of committee seats. A trickier question relates to access to the ‘Short Money’ which funds opposition parties. I consider each of these in turn, before turning to wider issues.

The official opposition and second largest opposition party

House of Commons standing orders give certain formal privileges to Her Majesty’s Official Opposition – described on the parliamentary website as ‘the largest political party in the House of Commons that is not in government’. These include the right to determine the subject for 17 of the 20 ‘opposition days’ for debate in the Commons each session (standing order 14(2)), and the right to chair the prestigious Public Accounts Committee (standing order 122B(8(f))). In practice, the privileges of the Official Opposition go far further, for example through frontbenchers’ established right to speak at the start and end of most debates, and to intervene during oral question times (including Prime Minister’s Questions), plus an expectation that the Speaker will select important opposition amendments for debate at report stage of government bills. Crucially, Commons standing orders also recognise the ‘second largest opposition party’ (standing order 14(3)), which enjoys similar benefits at a reduced level. Hence when Labour was in government the Liberal Democrats could choose topics for three opposition days per session, and enjoyed rights to some (albeit fewer) interventions by frontbenchers during debates and question times. In the 2015 parliament those privileges rest with the SNP, which currently has 54 MPs.

It seems fairly straightforward, then, that if the Labour Party split in two one part of it would remain the official opposition. If the majority of Labour MPs chose to break away from Corbyn – which seems likely – he would no longer be the Leader of the Opposition. The privileges associated with being the main opposition party would immediately largely pass to the majority group and its leader. If somehow Corbyn maintained support of the majority of his parliamentary colleagues – which is difficult to envisage – the reverse would clearly be true. But a key question is also who becomes the ‘second largest opposition party’. If Corbyn retained more than 54 supporters they would still have significant visibility, and the SNP would lose its current privileges. If he retained only the 40 MPs who expressed confidence in his leadership, or thereabouts, his grouping would largely be eclipsed.

Committee seats

The question of seats on select committees could prove somewhat messy, but probably does not present major problems, and if it did these could be resolvable. Standing orders do not specify this explicitly, but in practice both the chairs of select committees and the membership of each committee are divvied up roughly proportionately to party strengths in the chamber. Under the changes wrought by the Wright committee in 2010, the whips’ agree the allocation of chairs between themselves at the start of the parliament, before elections take place. Elections are then held within the parties for committee members. In the event of a Labour Party split there might be a need for reallocation of these positions, and in particular the chair of the Public Accounts Committee (as indicated above) is allocated to a member of the Official Opposition. There is no clear mechanism for reallocating seats between general elections, but there is no particular reason to think that major iniquities would occur as a result of a split. In practice if they did, change might be negotiated between the parties, perhaps adjudicated by the Speaker if necessary.

Short money and other opposition funds

The question of opposition funding would be likely to prove particularly delicate in the event of a split. The amount of money available is substantial, and important to the parties in order to maintain their parliamentary operation. The main source of funding is the Short money, which in 2015–16 provided the Labour Party with £5,777,232 (plus £577,871 of ‘Cranborne Money’ in the Lords). This money is allocated according to a complex formula. In 2015–16 £710,118 was payable directly to the office of the Leader of the Opposition. Based on the logic above, if the majority of the current PLP split from Labour, that group’s leader would automatically gain this support. But the great bulk of the Short money is payable based on votes and seats won at the previous general election: approximately £17,000 for every seat, and £34 for every 200 votes (for full details see here). Hence whichever group split from Labour (the majority or the minority, the Corbyn group or his opponents) would in the short term lose this share, having not fought the general election as a party. This might appear attractive to Corbyn supporters – a rump group of 40 MPs with funding of £5 million. But this situation would be so plainly iniquitous that it would likely be resolved in a different way. The allocation of Short money is set out not in legislation, but in a resolution of the House of Commons. The House of Commons could hence agree a new formula very readily by majority vote. This would depend in practice on the support of the government, but might again be a question on which the Speaker could help facilitate an agreement. Of course, this situation could also be resolved if there were an autumn general election – which leads to the wider questions below. A separate funding question relates to the ’policy development grants’ administered by the Electoral Commission, which are also based on a mixed formula including share of the vote. These might also need to be renegotiated.

Other organisational questions

Although there would doubtless be some confusion, and perhaps bitter arguments about money, the parliamentary arrangements after a party split would hence probably be quite straightforward. In short, if a majority group broke away from Labour it would quickly obtain most of the privileges of the current opposition. Although it might be subject to argument, this would probably apply even if those breaking away simply called themselves ‘Independent Labour’ rather than legally splitting from the existing Labour Party and resigning their membership. This could, of course, ultimately result in their expulsion from the Labour Party – though this would be likely to depend on whether the Corbyn faction retained a majority on the party’s National Executive Committee.

This situation becomes more complex if a general election is held. The new grouping could not run as a political party without registering as such with the Electoral Commission, and thus becoming more explicitly and legally separate from the Labour Party. But candidates could run as independents, and the situation would presumably by then be relatively well-known to the electorate. Many candidates would also be well-known to their local voters.

If, either immediately or in the longer term, the breakaway parliamentary grouping chose to register legally as a separate political party, there would be a whole range of other obstacles to consider, some of which might descend into legal disputes:

  • A new party name would need to be registered with the Electoral Commission. There are around 500 parties already registered in this way, but notably only eight appear to contain the word ‘Labour’.
  • The majority grouping would be walking away from all of the assets of the Labour Party, most notably the buildings that it owns. This would present challenges to local parties, many of which own their own properties. Many local parties, as well as the national party, would obviously be likely to split.
  • Those remaining with the original Labour Party would retain its assets, but also its debts. The Labour Party’s finances have often been somewhat perilous. A big question would be which grouping financial supporters (both trade unions and major donors) chose to support after a split. A rump Labour Party with little electoral or financial support could ultimately face collapse.
  • In terms of personnel, there would be very big questions regarding party staff, representatives at other levels (local councillors, members of devolved bodies and MEPs) as well as the wider membership.
  • The new group would need a rulebook, and might in the short term simply adopt the existing Labour Party rules, and amend these over time. An immediate priority might be reforming the rules for leadership elections!

While the parliamentary questions might be relatively easily resolved in the short term, some of these bigger questions could prove very difficult indeed. The easiest end to this saga is clearly that Corbyn gives in to the growing chorus of pleas to step down. If he doesn’t, all of this could soon become reality.

About the author

Professor Meg Russell is the Director of the Constitution Unit.

19 thoughts on “What if Labour splits?

  1. Would be long overdue……it does it periodically….usually when the country has a serious issue to face up to as in 1931

  2. I am curious what, if any, the relevance of the preexisting Co-operative Party might be. Most of the anti-Corbyn MPs are already personally members (though only about twenty hold the dual endorsement). Would it be possible to use the Co-operative Party’s machinery as an alternative to forming an entirely new party?

  3. Pingback: Roger Masterman and Colin Murray: A House of Cards? | UK Constitutional Law Association

  4. Pingback: Parliamentary arrangements after a Labour split might be easily solved, but bigger questions will be more difficult : Democratic Audit UK

  5. I understood that the ‘new grouping’ wouldn’t be able to take on the role of HM Opposition without being a formal political party registered with the Electoral Commission – have you seen any formal advice to say that isn’t the case?

    • Agreed, apparently Bercow has already stated that HM Opposition must be a formal political party in his opinion.

  6. Many thanks for this piece Meg Russell as the idea that a split might end up as you suggest has been thoroughly dismissed by Corbyn’s supporters on the Guardian’s Comment is Free, which they have increasingly occupied since his leadership victory.

    They seem to be under the impression that they will storm the constituency parties, deselect the sitting MP where he or she opposes Corbyn’s “leadership” and elect their own candidate.

  7. Might it not also be possible, given that, as everyone keeps saying, Corbyn is a NICE man, although obstinate & lacking in the abilities necessary to lead a large but varied & independent minded group of MPs, that in the event of the majority of the PLP stay formally in the Labour Party but set up their own leadership, including a new Leader of the Opposition & Shadow Cabinet, Corbyn might carry on as “Leader in the Country” outside of parliament, figurehead of a mass, popular movement, where he would be more comfortable, hoping for deselections (which I happen to think are unlikely; individual local MPs being generally locally popular), & united by the universal desire to avoid a split, a modus operandi is arrived at that over time could firm up into a new Labour Party constitution, with arms-length, parallel, quasi seperate but connected parties, one a mass-membership, populist, idealistic movement & the other a professional, parliamentary, pragmatic, electable party?

  8. I keep asking people, this question and never really get an answer. Why can’t the PLP elect a new leader who would command the support of the second biggest block in the House of Commons. Surely, that person would then be Leader of HM Opposition? If the PM is tasked with forming a government on the basis that this person commands the support of a majority in the House of Commons, surely the same principle should apply to the Opposition i.e. that the Leader of the Opposition must be able to command a majority or at the very least a “substantial” amount of the Opposition in the House of Commons.

    • Then you are asking the wrong people. The answer is very simple; it is to do with the party structure, and something called democracy. The PLP have a highly privileged position in the Labour Party. The Party Leader can only be chosen from amongst their number, and they themselves get to choose the candidates. A leader is chosen from that shortlist by a poll open to all Labour Party members. The PLP is made up of MPs who have accepted the ‘Labour Party whip’ and in conducting the business of opposition, in normal circumstances, this should be a workable and very democratic system. It is not the PLPs mandate to elect the leader themselves, only to offer the party their shortlist.

      • You state as if fact ‘The problem in the referendum was not only that Corbyn campaigned half-heartedly…’ This is not true and it seems you have fallen prey to or are part of the propaganda smear campaign that has been brought about by members of the PLP coup and the media against Jeremy Corbyn and the thousands upon thousands of his supporters who do believe in democracy and a fairer society for all. Surely something called the ‘Constitutional Unit’ should attempt to maintain some type of neutrality when dealing with such matters for to not do so would diminish the validity of any of its advice. Other than that thanks for your article. I would be most interested to see if your unit plans to investigate the gerrymandering by the current Labour National Executive which acts in a dictatorial secretive manner which smack of collusion. If a political party’s exec can act in such a manner does that not at first base prevent the very basic tenets of a true democracy and any constitution being upheld?

  9. I’ve read elsewhere that the Speaker has ruled that in order for the non-Corbyn supporting MPs to become the official opposition they would need to form a new party.

    If this is the case could this ruling be challenged by the non-Corbyn supporting MPs? If they had a majority of Labour MPs, highly likely, and if most Tories either voted with them, in the interest of Parliamentary democracy, or abstained, also possible, they, with their new leaders would become the official opposition and Corbyn and his 25 or so MPs would need to retire to the back benches.

  10. There should be a split in the Labour Party. The difference between the two sides merit two different parties. It will be messy but worth it. Lets please get on with it and not waste any more time. Corbyn and friends will disappear back into the realms of communisim. The two sides are poles apart and will never pull together. What about the democratic Labour party for a new name. Come on labour be brave and make the split get rid of the radicals forever.

  11. You mention all the property owned by the Labour party. But, as we keep reading in the current litigation, the Labour Party is an unincorporated association, and, therefore, surely, incapable of owning and holding real property. There must be trustees (and trust deeds) all around the country who actually owns the various properties, no?

  12. Pingback: Corbyn wins: what next? | Edinburgh Eye

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