Ramsay MacDonald, towards the end of his life, wrote in his diary that he had come to be seen as ‘the embodiment of evil’. The mild-mannered Clement Atlee, who was MacDonald’s PPS in the twenties, called what he did the ‘the greatest betrayal in the political history of this country.’ What MacDonald did, as any student of Labour history can tell you, is join a Tory-led ‘national government’ against the backdrop of a global economic crisis, in the belief it was in the national interest.

MacDonald’s tragic miscalculation nearly destroyed the Labour party. In the 1931 general election, Labour’s vote fell by 1.5 million, and the party gained only 46 seats. The national government’s majority was 500; it soon set about cutting unemployment benefit as the factories, foundries and shipyards continued to close down.

I am in no doubt whatsoever that Nick Clegg will be judged by his party in much the same way as Labour people view MacDonald. His decision to give legitimacy, and a majority, to a Conservative party committed to deep cuts in public spending is an act of craven ambition and deep folly.

The ConDem deal is mostly about positions and titles, cars and offices. Very little is about policy. On the big issues that animate Liberal Democrats, proportional representation being the obvious one, Clegg has totally sold out. It was charmingly naive when Clegg said his new deputy prime ministerial office was ‘near David’s’ in the Cabinet Office. The two buildings are joined by the famous ‘Link Door’, but the Cabinet Office is Siberia to Number 10’s Moscow. Cameron, the first former special adviser to become prime minister, knows full well that in Whitehall titles and offices count for nothing unless you have a departmental budget, staff, and membership of the key cabinet sub-committees where real power is privately exercised. Clegg has come out of four days of negotiations with a handful of magic beans.

You can already get odds on who the first Lib Dem to leave the government will be. My money’s on Vince Cable, who rather enjoys his status as economics sage, guru and clairvoyant. He won’t like ending his career as Vince the Destroyer of cherished local services. Simon Hughes looks like a man planning to cry ‘betrayal’ and become leader of the provisional wing of the Liberal Democrats. Like many Lib Dems whose local political base is built on being anti-Labour, he can see the toxicity of coalition with the Conservative party. If the Bermondsey Labour party hasn’t started distributing leaflets with the picture of Clegg and Cameron on the steps of Number 10, and slogan ‘A Vote for Hughes is a Vote for the Tories’, then they should start this weekend. In the seat where I live, Eastbourne, we have a new Lib Dem MP Stephen Lloyd, who beat the local Tory MP thanks to votes from Labour supporters. At the count, the Labour candidate said they were ‘on loan’. The loan arrangement lasted roughly four days.

When the applause has died down, the champagne’s gone flat, and the hard slog of government starts, the Lib Dems will flake and split. Lib Dem ministers will walk away from responsibilities of spending cuts. After all, you don’t join the Lib Dems to take responsibility, you do it to protest, complain, and stay ideologically pure. With the normal attrition rate of ministers resigning, being sacked, getting caught abusing their power, or dropping down dead, there won’t be enough Lib Dem MPs to serve as ministers over the proposed five-year parliament. Which means they will be replaced with Tory ministers, and the government will become more overtly what it is – a Conservative government.

In the coming weeks there will be plenty of analysis about where all this leaves the Labour party (not least in this column). The obvious starting point is that Labour is now the only party of the centre-left in politics. Over ten thousand people have joined this week. The Lib Dem sell-out opens a vast space to the left of the government.

Luke Akehurst has produced some figures based on research from the Fabian Society which suggests that:

• 19 Lib Dem seats – a third of their total – would fall to Labour if just one-in-four Lib Dem voters switches to Labour in those constituencies
• 30 Conservative seats would fall to Labour if just one-in-four Lib Dem voters switches to Labour in those constituencies
• 55 Conservative seats would fall to Labour if half of Lib Dem voters switch to Labour in those constituencies. Together with seats taken off the Lib Dems, this could be enough for Labour to regain its majority at the next election

These numbers alone should provide the self-discipline to Labour to stay focussed and aim at a return to government sooner rather than later.

It also kills stone dead the argument that Labour supporters should back Lib Dems ‘tactically’. Ed Balls’s intervention in the week of the poll, suggesting we should turn a blind eye to Labour voters voting Liberal Democrat, was maladroit, and as events showed, totally misguided. That, coupled with his wafer-thin majority, probably rules Ed Balls out as a potential leader of the Labour party.

Compass, the Guardian editorial team, and others such as Peter Hain have some explaining to do to all those people who voted yellow, but got the blues. Far from being ‘the Liberal Moment’, it is the birth of a Conservative government whose leading lights are Iain Duncan Smith, William Hague and Liam Fox.

Now our task is to form an effective opposition in parliament, and an effective campaigning force in the country. Harriet Harman, first elected in 1982, has the depth of experience to see us through this early period. Her appointment of Stephen Twigg as her PPS shows good judgement. Next, she must oversee a thorough NEC-led analysis of the election campaign, and insist on early elections to the shadow cabinet. Ministers appointed by the previous prime minister do not have legitimacy; some, such as Jack Straw, have announced their retirement from frontbench responsibilities. Elections to a new shadow cabinet, including quotas for women, will give us a new team. It allows people who didn’t serve as ministers in the last government such as Jon Cruddas, Stephen Twigg, and several talented new MPs to win the support of their colleagues.

And of course, our weighty task over the summer is to elect a new leader, and potential prime minister.

Losing an election is never a good sign for a political party. In the south east of England we were obliterated, going from nine seats to none. But overall, Labour is in reasonable shape, free from ideological splits and factionalism. I sense a steely determination amongst Labour activists to capitalise on Clegg’s great betrayal, and for Labour to remain the great force for progress that the country so badly needs.

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