The Tory right shows its muscle

An encounter with the Jurassic wing of the Conservative Party

From the Conservative conference

Away from the pastel colours and soft furnishings of the conference hall, a packed fringe meeting held by the Thatcherite Bruges Group felt like a foreign land. Here, Enoch Powell was right, Section 28 should be restored, and Britain is no longer a self-governing power. With more than 600 people in attendance, the largest meeting I've seen all conference season, the Tory right showed its muscle.

The ostensible motion was: "Are the political parties failing the voters of Britain?" But the meeting was inevitably dominated by the view that the Conservative Party had failed the people of Britain over Europe. Even before the speeches began, a cartoon depicting Margaret Thatcher as Queen Boudicca riding out of Brussels prompted waves of applause.

There were almost xenophobic levels of contempt for David Cameron's pledge to ring-fence overseas aid. The speakers, including the Daily Telegraph's Simon Heffer and the Mail on Sunday's Peter Hitchens, all forcefully declared that public spending should be cut across the board. But they at least followed the logic of their position: dramatically reducing the size of the public sector will lead to a surge in unemployment. David Cameron has promised a bonfire of the quangos in all but name while vowing to "get Britain back to work" at the same time. Labour must expose this contradiction far more successfully than it has done.

Heffer was also right to point out that Cameron cannot simply "unpick" the Lisbon Treaty after ratification, with no desire among the other 26 states to renegotiate areas such as justice and home affairs. "There is no middle way," he declared, and called for a referendum on EU membership.

At an earlier fringe meeting on Europe I saw the Sun's associate editor Trevor Kavanagh watch Ken Clarke like a hawk. He later harangued the shadow business secretary over the "anti-democratic" European Union.

It's worth remembering that it was the tabloid's fury over Clarke's return to the shadow cabinet that prompted Cameron's decision to appoint the Eurosceptic William Hague as his de facto deputy. With even Daniel Hannan conceding that a retrospective referendum on the Lisbon Treaty would be "silly", support is growing for the alternative of a referendum on EU membership. If Cameron is elected, I expect the Sun to lead the charge.

George Eaton is political editor of the New Statesman.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”