So is New Labour dead or not?

When is a party dead? Paul Evans brings us the best of the politics blogs from domestic politics thr

Nusferatu: A Party Undead

This week Lord Mandelson declared Cameron’s claims of New Labour’s demise to be premature.

Andy Newman on Socialist Unity considered what defined the New labour project, and concluded that it: “…was built on two foundations: one was a commitment to neo-liberalism; the other was the belief that electoral success could come through winning over swing voters in marginal seats by triangulating around the Daily Mail driven socially conservative agenda”.

In a detailed look at the failings of the party’s economic agenda, he argued that it was “corrosive because it de-legitimised the whole idea of state intervention in the economy”.

Over at Spiked, the ever confrontational online heir to Living Marxism, deputy editor Rob Lyons observed that “The suggestion that New Labour is dead is somewhat ironic since the party is itself merely the zombie left behind after the demise of ‘Old Labour’.” But Heresiarch argued that Old Labour has never truly left us, suggesting rather that we have been collectively duped:

“Tony Blair looked and sounded like a right-winger when he was actually a statist authoritarian. Gordon Brown looked - and so was accounted - cautious and trustworthy. As a spectacle of legerdemain, New Labour was unprecedented,” he wrote.

Elsewhere, Tory MP David Jones blogged that behaviour in the chamber gave the lie to Mandelson’s claim – while right-winger Shane Greer enjoyed an unseemly chuckle at the disappearance of the New Labour domain.

What have we learned this week?

That it’s not always funny when Tory MPs get arrested. Damien Green has been nicked for allegedly receiving leaked Home Office documents.
Within in minutes, Conservative Home was speculating and Labour Home was gloating. Perhaps if we had greater transparency and decent responses to difficult parliamentary questions, such leaks would be unnecessary?

Around the World

As India wrestled with terrorist outrages on an unprecedented scale, Seriously Sandeep was irked by what he perceived as the appeasement and concern for the perpetrators by fellow bloggers. Aditya Kumar confessed “I am terrified. Petrified,” while Anuradha Bakshi (perhaps the sort of commentator Sandeep was needling at) asked:

“…who are the real culprits: the predators lurking with their indoctrination spiel or a fractured society where dreams of some can never be fulfilled, where hate and animosity are easily ignited and stoked?”

It transpires that Tory MEPs were also among those caught up in the chaos.

Videos of the Week

It’s easy to forget that Robert Kilroy-Silk is still, in theory at least, representing our nation in the European Parliament - he hasn’t spoken in a debate for more than three years. But if you do want to see his powers of rhetoric at work, here he is having a row with TV ghost Timmy Mallett. Online supporter cottz2008 cheered him, writing:

“cum on kilroy u to win it i can rember wen u came to ilkeston to try n be a mp well cum on win it for us”.

But now he has been chucked out of this telly competition, and it’s hard for all of us.

Quote of the Week

“It depends, I suppose, what you imagine New Labour was. If you mean the media-manipulating, bullying, authoritarian bulldozer, then it is still very much alive, and probably worse than ever.

No punches pulled, on Heresy Corner.

Paul Evans is a freelance journalist, and formerly worked for an MP. He lives in London, but maintains his Somerset roots by drinking cider.
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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.