Mandelson Lashes Out At Miliband 'Experiment'

New Labour architect Lord Mandelson has said Ed Miliband's selection as Labour leader was the result of "trade union abuse" and his election campaign had badly damaged the party.

The former business secretary said Mr Miliband had been a "giant political experiment" that had ended up with the voters "ripping stripes off" the shoulders of the party.

He told the Andrew Marr Show the "awful shocking thing about this election is Labour could have won it".

He said: "The reason we lost it and lost it so badly is in 2010 we discarded New Labour, rather than revitalising it and re-energising it and making it relevant for the new times, the new policy challenges that we faced.

"That was a terrible mistake."

He added: "Literally, we were sent out and told to say things and to make an argument - if you can call it an argument - which basically said, we're for the poor, we hate the rich, ignoring completely the vast swathe of the population who exist in between."

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And he lashed out at the undue influence of the trade unions on the party, saying they had been guilty of "abuse and inappropriate influence" which led to Mr Miliband's selection as leader.

He added that the party's reliance on trade union funding was "unhealthy".

Lord Mandelson said: "I am not happy with a Labour Party so clearly dependent on people who pay the piper and then in many cases can call the tune."

He also came close to endorsing shadow business secretary Chuka Umunna as the next leader, saying: "He's got a bit of a way to go but he'll get there."

On the same programme, Mr Umunna hinted he would run for the leadership but would not confirm he would be a challenger.

He said: "There isn't even a timetable at the moment but I certainly intend to play the fullest part I can in rebuilding our party in ensuring we have the proper debate that we need on it."

Liz Kendall became the first MP to announce she would be running for the leadership and described Labour's defeat as "huge".

She told the BBC's Sunday Politics: "It is not just enough to critique what is going on; you have to set out something people can believe in."

She said: "The words New Labour mean different things to different people" and added "going back to the past isn't what we need".

Speaking on Sky's Murnaghan programme, another name in the frame, Tristram Hunt, said he was "definitely thinking about" running.

He said: "We are in a really deep hole and we need everyone to really pull together and really have it out about what went wrong and what went right.

"I do want to be one of those voices but it is about more than just leadership, it is about how the party is led and the philosophy behind it."

Barnsley Central MP Dan Jarvis, who was thought of as one of the frontrunners, has ruled himself out .

When asked if she was going to run for the leadership, Yvette Cooper said: "The parliamentary party will be meeting tomorrow ... and I want to discuss this with my colleagues first.

"But look, we've got to make sure we've learned the lessons from what is a really bad defeat for us."

Labour MP and Blairite Pat McFadden said it was not just a new leader the party needed.

He said: "What we need is a really deep and fundamental reassessment of our whole approach."

However, Labour MP Dianne Abbott told Sky News: "Some of (the leadership candidates) have rushed in putting articles out that basically trash Ed Miliband's entire election strategy.

"I'm slightly struck, these people sat in the shadow cabinet for nearly five years and did not say those things."

And GMB general secretary Paul Kenny said: "Any attempt to reintroduce a quick fix based on nostalgia and a world as it was 25 years ago would lead to disaster.

"The absurd anti-union remarks made by Lord Mandelson will do nothing but reignite arguments and divisions which are completely unconnected to why Labour lost."

Meanwhile, Labour's Tom Watson has announced his run for deputy leader of the party after Harriet Harman announced she would be standing down.

He is raising money for his bid on Go Fund Me and by mid Sunday afternoon had raised just over £3,500.

Earlier, Tony Blair said Labour must reclaim the political centre ground if the party is to recover from its crushing General Election defeat.

The former prime minister, who led Labour to three consecutive election victories, praised Mr Miliband - who announced his resignation within hours of accepting defeat - for the way he put "his heart and soul into the fight".

But he made clear that a change of direction was needed if the party was to stand a chance of regaining power at the next election.