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 dog at the end of the lead may be small, but in fact what I’m walking is a hound of love

There is a new, hairy face in the Hovel.

There is a new, hairy face in the Hovel. I seem to have become a temporary co-owner of an enthusiastic Chorkie. A Chorkie, in case you’re not quite up to speed with your canine crossbreeds, is a mixture of a chihuahua and a Yorkshire Terrier, and while my friend K— busies herself elsewhere I am looking after this hound.

This falls squarely into the category of Things I Never Thought I’d Do. I’m a cat person, taking my cue from their idleness, cruelty and beauty. Dogs, with their loyalty, their enthusiasm and their barking, are all a little too much for me, even after the first drink of the day. But the dog is here, and I am in loco parentis, and it is up to me to make sure that she is looked after and entertained, and that there is no repetition of the unfortunate accident that occurred outside my housemate’s room, and which needed several tissues and a little poo baggie to make good.

As it is, the dog thinks I am the bee’s knees. To give you an idea of how beeskneesian it finds me, it is licking my feet as I write. “All right,” I feel like saying to her, “you don’t have to go that far.”

But it’s quite nice to be worshipped like this, I have decided. She has also fallen in love with the Hovel, and literally writhes with delight at the stinky cushions on the sofa. Named after Trude Fleischmann, the lesbian erotic photographer of the Twenties, Thirties and Forties, she has decided, with admirable open-mindedness, that I am the Leader of the Pack. When I take the lead, K— gets a little vexed.

“She’s walking on a loose lead, with you,” K— says. “She never does that when I’m walking her.” I don’t even know what that means, until I have a think and work it out.

“She’s also walking to heel with you,” K— adds, and once again I have to join a couple of mental dots before the mists part. It would appear that when it comes to dogs, I have a natural competence and authority, qualities I had never, not even in my most deranged flights of self-love, considered myself to possess in any measurable quantity at all.

And golly, does having a dog change the relationship the British urban flâneur has with the rest of society. The British, especially those living south of Watford, and above all those in London, do not recognise other people’s existence unless they want to buy something off them or stop them standing on the left of the sodding escalator, you idiot. This all changes when you have a dog with you. You are now fair game for any dog-fancier to come up to you and ask the most personal questions about the dog’s history and genealogy. They don’t even have to have a dog of their own; but if you do, you are obliged by law to stop and exchange dog facts.

My knowledge of dog facts is scant, extending not much further beyond them having a leg at each corner and chasing squirrels, so I leave the talking to K—, who, being a friendly sort who could probably talk dog all day long if pressed, is quite happy to do that. I look meanwhile in a kind of blank wonder at whichever brand of dog we’ve just encountered, and marvel not only at the incredible diversity of dog that abounds in the world, but at a realisation that had hitherto escaped me: almost half of London seems to have one.

And here’s the really interesting thing. When I have the leash, the city looks at me another way. And, specifically, the young women of the city. Having reached the age when one ceases to be visible to any member of the opposite sex under 30, I find, all of a sudden, that I exist again. Women of improbable beauty look at Trude, who looks far more Yorkie than chihuahua, apart from when she does that thing with the ears, and then look at me, and smile unguardedly and unironically, signalling to me that they have decided I am a Good Thing and would, were their schedules not preventing them, like to chat and get to know me and the dog a bit better.

I wonder at first if I am imagining this. I mention it to K—.

“Oh yes,” she says, “it’s a thing. My friend P-J regularly borrows her when he wants to get laid. He reckons he’s had about 12 shags thanks to her in the last six months. The problems only arise when they come back again and notice the dog isn’t there.”

I do the maths. Twelve in six months! That’s one a fortnight. An idea begins to form in my mind. I suppose you don’t have to be a rocket scientist to work out what it is. But no. I couldn’t. Could I?

Nicholas Lezard is a literary critic for the Guardian and also writes for the Independent. He writes the Down and Out in London column for the New Statesman.

This article first appeared in the 28 April 2016 issue of the New Statesman, The new fascism