Tories may be wrong on national debt, but some are right on personal debt

The Bright Blue conference revealed some allies in the fight against the payday lenders

Last week I attended a conference run by the Tory "Fresh" group Bright Blue. There were plenty of faces I recognised and not all of them belonging to the "left wing" of the Tory party. After a few conversations it had become apparent that there is an anger across all wings of their party regarding the continued employment of George Osborne.

For the Tories, who fancy themselves as the party of fiscal responsibility (though as a Labour party member myself, I remain skeptical), the perception of Osborne's continued weak effort is the source of much frustration.

However to suggest that Osbornomics is the sum total of the financial thinking within the Conservative party would be an error. Take the area of finance that I'm interested in for example, that of personal debt – many in the party who are driven by principle rather than pride tend to sit on the correct side of the tracks here.

Justin Tomlinson MP, for example, the member for North Swindon, is one of the most vocal critics of the payday lending industry in parliament.

Earlier this year he addressed parliament during the debate on the clauses in the Financial Services Bill in support of imposing a total cost cap on loans that lenders can deal out to consumers. This, for him, is one way to ensure exploitative companies don't make life harder of those who are most vulnerable.

But Tomlinson understands that this cannot be a single policy enacted in isolation. This was why he, along with fellow Conservative member of parliament, Andrew Percy, authored a very interesting report on financial education. For them both, more focus on finance early on, can better gear up people when they are older to make healthy financial decisions – which can be hard to come by if times are tough on the pocket with more and more payday lenders popping up on our high streets.

With Percy, his interest in bad debt stems from his own problems with it. Though he has never had to take out a payday loan, he has been in the position of owing tens of thousands of pounds – for which as of 2011 he was still paying off.

"I now pay about £600 a month to clear off all of my credit cards which I've had to roll into a loan since my election", he told the BBC last year.

Another Tory MP, Tracey Crouch, member for Chatham and Aylesford, also came into focusing on debt issues as a consequence of her own past. When I spoke to her earlier this year she told me that her debts were down to "youthful stupidity" and her £15,000 credit card and store card debt was largely the outcome of living a lifestyle she couldn’t afford, which some of her peers could.

Crouch insisted that there is a positive side to credit, indeed most regard it as the sign of a healthy economy. However she herself has seen the negative side of it. She is particularly concerned about those who are termed the "underbanked", namely those those who still have bills to manage and cashflow problems to overcome, but are restricted in their access to mainstream credit products.

Given the rate at which the payday loans industry is growing, the temptation to see this as an easy way out for the very vulnerable increases. The government has a responsibility to do what it can to ensure all consumers do not fall foul to expensive loans, but also many of the barriers of alternatives such as credit unions need to be overcome too.

For example the Association of British Credit Unions (ABCUL) still haven't tapped into social media, and trying to raise credit union membership that way, whereas payday lenders such as Wonga have done this very successfully.

One person who does know a thing or two about credit unions is Damian Hinds MP, the member for East Hampshire. He chairs the All-party Parliamentary Group (APPG) on Credit Unions, and is a vice chairman of the APPG on Debt.

His politics are perhaps most interesting because he is a self-described free-market Conservative. He told me that when he first became an MP he was convinced that market solutions would drive down expensive lenders and anything the state could do would only frustrate this process.

However, he has since changed tack on this, deciding that "normal market rules don't apply with payday lenders". Now Hinds realises that the state can play a part in helping a create a fairer lending market since all evidence points out that the invisible hand is typically absent.

The legacy of Osbornomics will be negative – and Conservatives themselves are as adamant as anyone that this is the case. David Cameron is not being a renegade, but a fool for keeping him. But the Conservative party is not without sound economic minds – and on an issue as important as personal debt this is proven most forcibly.

A payday loan company in Birkenhead. Photograph: Getty Images

Carl Packman is a writer, researcher and blogger. He is the author of the forthcoming book Loan Sharks to be released by Searching Finance. He has previously published in the Guardian, Tribune Magazine, The Philosopher's Magazine and the International Journal for Žižek Studies.
 

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The decline of the north's sporting powerhouse

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Now, things are different.

On a drive between Sheffield and Barnsley, I spotted a striking painting of the Kes poster. Billy Casper’s two-fingered salute covered the wall of a once-popular pub that is now boarded up.

It is almost 50 years since the late Barry Hines wrote A Kestrel for a Knave, the novel that inspired Ken Loach’s 1969 film, and it seems that the defiant, us-against-the-world, stick-it-to-the-man Yorkshireness he commemorated still resonates here. Almost two-thirds of the people of south Yorkshire voted to leave the EU, flicking two fingers up at what they saw as a London-based establishment, detached from life beyond the capital.

But whatever happened to Billy the unlikely lad, and the myriad other northern characters who were once the stars of stage and screen? Like the pitheads that dominated Casper’s tightly knit neighbourhood, they have disappeared from the landscape. The rot set in during the 1980s, when industries were destroyed and communities collapsed, a point eloquently made in Melvyn Bragg’s excellent radio series The Matter of the North.

Yorkshire historically acted as a counterweight to the dominance of southern elites, in sport as in politics and culture. Yet today, we rarely get to hear the voices of Barnsley, Sheffield, Doncaster and Rotherham. And the Yorkshire sporting powerhouse is no more – at least, not as we once knew it.

This should be a matter of national concern. The White Rose county is, after all, the home of the world’s oldest registered football club – Sheffield FC, formed in 1857 – and the first English team to win three successive League titles, Huddersfield Town, in the mid-1920s. Hull City are now Yorkshire’s lone representative in the Premier League.

Howard Wilkinson, the manager of Leeds United when they were crowned champions in 1992, the season before the Premier League was founded, lamented the passing of a less money-obsessed era. “My dad worked at Orgreave,” he said, “the scene of Mrs Thatcher’s greatest hour, bless her. You paid for putting an axe through what is a very strong culture of community and joint responsibility.”

The best-known scene in Loach’s film shows a football match in which Mr Sugden, the PE teacher, played by Brian Glover, comically assumes the role of Bobby Charlton. It was played out on the muddy school fields of Barnsley’s run-down Athersley estate. On a visit to his alma mater a few years ago, David Bradley, who played the scrawny 15-year-old Billy, showed me the goalposts that he had swung from as a reluctant goalkeeper. “You can still see the dint in the crossbar,” he said. When I spoke to him recently, Bradley enthused about his lifelong support for Barnsley FC. “But I’ve not been to the ground over the last season and a half,” he said. “I can’t afford it.”

Bradley is not alone. Many long-standing fans have been priced out. Barnsley is only a Championship side, but for their home encounter with Newcastle last October, their fans had to pay £30 for a ticket.

The English game is rooted in the northern, working-class communities that have borne the brunt of austerity over the past six years. The top leagues – like the EU – are perceived to be out of touch and skewed in favour of the moneyed elites.

Bradley, an ardent Remainer, despaired after the Brexit vote. “They did not know what they were doing. But I can understand why. There’s still a lot of neglect, a lot of deprivation in parts of Barnsley. They feel left behind because they have been left behind.”

It is true that there has been a feel-good factor in Yorkshire following the Rio Olympics; if the county were a country, it would have finished 17th in the international medals table. Yet while millions have been invested in “podium-level athletes”, in the team games that are most relevant to the lives of most Yorkshire folk – football, cricket and rugby league – there is a clear division between sport’s elites and its grass roots. While lucrative TV deals have enriched ruling bodies and top clubs, there has been a large decrease in the number of adults playing any sport in the four years since London staged the Games.

According to figures from Sport England, there are now 67,000 fewer people in Yorkshire involved in sport than there were in 2012. In Doncaster, to take a typical post-industrial White Rose town, there has been a 13 per cent drop in participation – compared with a 0.4 per cent decline nationally.

Attendances at rugby league, the region’s “national sport”, are falling. But cricket, in theory, is thriving, with Yorkshire winning the County Championship in 2014 and 2015. Yet Joe Root, the batsman and poster boy for this renaissance, plays far more games for his country than for his county and was rested from Yorkshire’s 2016 title decider against Middlesex.

“Root’s almost not a Yorkshire player nowadays,” said Stuart Rayner, whose book The War of the White Roses chronicles the club’s fortunes between 1968 and 1986. As a fan back then, I frequently watched Geoffrey Boycott and other local stars at Headingley. My favourite was the England bowler Chris Old, a gritty, defiant, unsung anti-hero in the Billy Casper mould.

When Old made his debut, 13 of the 17-strong Yorkshire squad were registered as working-class professionals. Half a century later, three of the five Yorkshiremen selec­ted for the last Ashes series – Root, Jonny Bairstow and Gary Ballance – were privately educated. “The game of cricket now is played in public schools,” Old told me. “Top players are getting huge amounts of money, but the grass-roots game doesn’t seem to have benefited in any way.”

“In ten years’ time you won’t get a Joe Root,” Rayner said. “If you haven’t seen these top Yorkshire cricketers playing in your backyard and you haven’t got Sky, it will be difficult to get the whole cricket bug. So where is the next generation of Roots going to come from?” Or the next generation of Jessica Ennis-Hills? Three years ago, the Sheffield stadium where she trained and first discovered athletics was closed after cuts to local services.

This article first appeared in the 19 January 2017 issue of the New Statesman, The Trump era