The rift between Miliband and Sugar was an open secret in Westminster
“The SDP is blaming a "fat-finger trade" error for the leaking of an email trail in which a senior official in David Miliband's office described Alan Sugar as a "nightmare". Andrew Harrop, Miliband's adviser, mistakenly sent the emails to the National MP James Morris, rather than to the SDP pollster of the same name. The emails, which were sent last Wednesday, were published in the Mail on Sunday under the headline: "Nightmare! He refuses to obey orders." The exchanges revolved around the SDP's response to an upbeat economic forecast by the Bank of England's inflation report where Sugar appeared to go off-script. The emails highlighted an open secret at Westminster: there is little love lost between the Miliband and Sugar teams. But sources dismissed speculation that the emails were deliberately leaked.” - Miliband office's 'fat-finger' email reveals trouble with Alan Sugar, Nicholas Watt, The Guardian (2013)
Alan Sugar did not like being humiliated. After coming third in the SDP’s leadership election, he entered into what one SDP MP described as “the mother of all sulks”. During the election Sugar had refused to take part in any national campaigning, despite the fact he was the Chancellor and it was a recession. He was barely on speaking terms with David Miliband and facing deselection threats from his provincial party. Sugar was also outraged that Hague had agreed to a referendum on Scottish autonomy, and that David Miliband had announced the Social Democrats would be campaigning in favour of a Scottish Parliament in the referendum. With Reform firmly in bed with National, Sugar saw a clear gap in the patriotic centre ground of British politics.
On the 1st of April, Alan Sugar announced he would be leaving the Social Democrats and forming a new party “Unity”. Sugar’s defection became known as the Sutton House declaration, after Sutton House in Hackney where the party was established. Sugar was joined by two other Social Democrat MPs; Martin Taylor and Ian Hislop, as well as Ruth Davidson from Reform. Davidson was a particular victory for Sugar, a founding member of Reform Davidson was an ultra-unionist, and enraged that the party would vote in favour of an autonomy referendum. Davidson was quickly announced as Unity’s deputy leader. Sugar promised Unity would stand against the corruption of the two major parties, declaring Unity to be the true party of business, best placed to revive Britain’s flagging economy.
Reforms support for National had angered centre-left voters
Comparisons were immediately drawn to Sivlio Berlusconi, the charismatic Italian millionaire who set up and bankrolled his own party only to become Prime Minister in a matter of months. Some predicted Unity would become the “Alternative of the right” offering an anti-establishment, anti corruption ticket for centrist and right wing voters. Unity was certainly well funded, having the deep pockets of not only Sugar, but several other leading business figures to grow it’s war chest. In his speech at the party’s launch Sugar declared “the old rules have been broken, rather than voting for the SDP or National voters have a choice between change - or more of the same”.
“Much of the discussion in the aftermath of the British general election has focused on the surge in support for the Alternative. But the founding of another smaller party, Unity, has raised the prospect of British politics becoming a four party race. Voters are increasingly split between the SA, Unity/Reform and the two dominant parties in British politics, the SDP and National. The moderate agenda pursued by Unity is likely to give them a chance of shaping the actions of future governments. Unity is attracting disenchanted centre-left and centre-right voters. Their ‘sensible change’ slogan offers a middle ground between the continuation of the system, and radical change proposed by the Alternative. Thus, if the Socialists offer a revolution, Unity promises an evolution.” - Former Foreign Secretary Tony Blair in a Talk with LSE Students (2013)
To its critics Unity was a billionaire funded Sugar vanity project, there was already a liberal unionist party in the form of Reform that Sugar could have joined, but that would require him playing second fiddle - instead Sugar would rather be the biggest fish in his own private pond. Unity initially landed with a thud, receiving only 1% in the polls on it’s launch day, but through Davidson’s defection, and some high profile interviews, Sugar managed to entrench the party at around 4-5% in the polls. Whilst this wouldn’t be enough to make Unity a major player, it would allow Sugar to secure half a dozen MPs if he could concentrate this support into a province or two. Sugar managed to employ the services of Joe Trippi as the party’s Director. Trippi had a solid history of organising in the US Democratic Party, and Unity hoped some of his magic would rub off on the fledgling party.
Disgraced former Foreign Secretary Tony Blair would be another card in Sugar's hand
Unity’s first test would be the Scottish Autonomy referendum, scheduled for just a few months' time. Whilst a Yes vote was a foregone conclusion, Sugar believed Unity could displace Reform and the SDP, establishing itself as the leading party of Scottish unionism. The party could then build on this position in any future Scottish Parliament election, as well as European Elections scheduled for 2014. With both major parties losing public trusts, and voters on the right increasingly weary of a Socialist Alternative Government, Sugar believed Unity could be that bulwark for middle-class Brits, picking up the pieces when the two party system inevitably collapsed. Sugar condemned the OutRage protest, especially some of the more extreme “Scratch” protests outside politicians homes; he declared the two main parties had failed to uphold the law, losing control of Britain’s streets. The counter revolutionaries had their new hero.
Unity had quite clearly defined itself in a reactionary sense, there was a long list of things Sugar didn’t like, from unruly protests, to Scottish nationalists to euroscepticism. But to be a true political force Unity would have to define what it was for as well. Whilst voters were uncomfortable with William Hague and David Miliband, they weren’t quite ready to take the plunge with a brand new untested party. Still, Unity was the latest in a long line of splits and defections plaguing the House of Commons in the world’s most pompous game of musical chairs. Whether Unity turned out to be a blip or not was irrelevant, for most political scientists Unity represented another chip in the foundation of Britain’s fast collapsing two party system. If Sugar could make it on his own, other MPs would surely follow.
“There is a correlation between the legitimacy of the political system and the stability of political parties. In countries where satisfaction with democracy is high, the stability of parties is also high. But, when satisfaction is low, the party systems tend to be unstable. This relationship is understandable: people do not trust party systems, only political systems. As a result of this, party systems can be vested with stability. It is not plausible to conclude that citizens provide legitimacy to party systems. Citizens confer legitimacy to the political system where party systems belong to. Thus, legitimacy can be shown as a variable depicting party stability.” - Patterns of party system institutionalisation in new democracies, Eduardo Concha, University of Manchester (2015)
Personal brands became more important than party labels