Mark Serwotka: Why Ed Miliband is right to speak at Durham today

We need a united opposition to coalition policies that are wrecking Britain.

Today I will be speaking at the 128th Durham Miners' Gala, a profound and moving event that continues to attract crowds in the tens of thousands and keeps the spirit of working class solidarity and unity alive.

I will be saying that it has never been more important for the labour movement to be united than in these extraordinary times in which we are living.

Youth unemployment is the highest on record, tens of billions of pounds of public spending is being cut – including massive job cuts, a public sector pay freeze and attacks on pensions – and unemployed and disabled people are receiving unparalleled abuse.

We have to be united to oppose this most vicious attack on everything our movement stands for: protecting the most vulnerable; providing decent jobs for all who can work, and a decent standard of living for those that cannot; providing decent public services that serve the public good, not private profit; and defending working class communities through strong trade unions and community organisations.

That unity is built around opposing this Tory-led government’s attacks on the people we represent.

So when they force people into strike action, we back those brave men and women out on strike – whether over public sector pensions, whether it’s cleaners, Remploy workers or the heroic Spanish miners.

In the 1980s, miners in the north east and elsewhere struggled heroically for jobs and justice. Their opponents were a Tory government and the Murdoch press.

Thanks to the campaigning MP Tom Watson – with whom I will be sharing a platform at Durham – and others, we've taken a chunk out of the Murdoch empire.

Now we need to do the same to this Tory government – a government that last year gave us lower growth and a sharper increase in unemployment than in the Eurozone.

This is no time for prevarication. When they're dismantling the welfare state, we oppose them. When they're forcing families out of their homes through housing benefit cuts, we oppose them. When they freeze pay and try to introduce poverty pay in the regions, we oppose them.

Bob Diamond walked away last week with a £2m pay off – more than 30,000 times what the 2.6m people on the dole will get this week.

The financial crisis which began in the boardrooms and in the stock exchanges is being paid for by those in the care homes and on the dole queues.

Cuts, austerity, call it what you like. It is the wrong solution. Wrong because it isn't working, it is damaging our economy, and wrong because of the misery it is causing in our communities.

The gala shows the labour movement at our best, and I welcome Ed Miliband's decision to speak this year. We have to take the spirit of Durham across the country.

We must be united: in our trade unions, in our communities, in our town halls and in parliament. We must be united and we must fight these cuts every inch of the way.

Mark Serwotka is general secretary of the Public and Commercial Services Union

Trade union demonstrators outside parliament on 26 March 2011. Photograph: Getty
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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.