Labour still don’t have a clue

The opposition can keep telling themselves that Cameron is a closet Thatcherite – but it won’t make

What's going to stop Labour from winning the next election is that, six years in, they still don't know who and what they're fighting. And since the next election could be a lot sooner than 2015, this is the gift that keeps on giving for the right. Before Ed Miliband can convince the public about himself, he needs to be convincing about David Cameron – and that's never going to happen for as long as the left keep kidding only themselves that the Tory leader is a closet Thatcherite.

It's hard to see on the face of it what the evidence is for this piece of wishful groupthink. Even with a crypto-Keynesian like Ed Balls as shadow chancellor rather than the more Blairite figure of Alan Johnson, it's the scale of the economic consensus that ought to stagger us and not the, in truth, marginal cross-party divisions, which are hyped up for despatch box effect.

But then what else is there? Whatever the Guardian wistfully hopes about right-wing economics leading to heroin-dealing nurses, selling mush like the "big society" as a threat to voters is surely a fantasy too far. If even Tory MPs who approvingly spout "big society" platitudes can't put any details on the warm feelings, it's improbable that Tom Baldwin's going to.

At every turn the government is exactly what Cameron hoped it would be – liberal. It's liberal in its social mores, it's at least as windily green as Labour, and it's pro-European. Many on the Tory right would say it's unarguably been so ever since Cameron broke his "cast-iron guarantee" that there would be a referendum on Lisbon. Yet like it or not, topped up by 50 Lib Dem MPs, the coalition also inescapably seems to people uninterested in politics to be that bit more liberal than a Tory-only government would have looked and sounded. Insisting that the government is not what the public plainly thinks it is, is a strategy Labour can try, but why's it going to work?

You can't even hope for a Thatcherite tone from this regime. There hasn't yet been a fight that Cameron hasn't run away from: from an abject refusal to milk-snatch to being pistol-whipped by Mumsnet, this Prime Minister will limbo under any tabloid headline held in front of him. So all Labour is doing now is repeating Steve Hilton's Demon Eyes mistake. Telling voters what they know to be untrue – "this man is a ravenous right-wing ideologue" – makes Labour seem incredible, and not in the good way.

Instead of crying wolf and inevitably being caught out for doing so, why not take a leaf out of the Clinton playbook? If Labour wants to exacerbate Cameron's undoubted party management problems, why not triangulate? Why not explicitly offer him support for his most obviously progressive and liberal measures? That's the way to push the Tory right over the edge. And as things stand, it's only they who are going to unseat Cameron any time soon.

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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.