Why Sunday trading laws must return after the Olympics

We must not surrender every vision we have of a good society to the market.

What was your first time like? Did you enjoy it? No doubt you were nervous but then so was everyone else there, so that presumably made it a bit more exciting. Yes, it was an exquisite moment, for which we all waited so many years: the annoying tannoy wasn’t heard, the doors weren’t locked, and everyone was free to stroll the aisles of Tesco long into the balmy Sunday evening.

When George Osborne announced the "temporary" suspension of Sunday trading laws during the Olympics, there were many, myself included, who thought that temporary was the odd word out in that sentence. Obviously, we shouldn’t prejudge the situation and obviously we have to wait till the figures come out but only the most witless of chancellors would fail to seize every opportunity to drag the nation from the precipice of a triple-dip recession.

No surprise, then, to see City AM editor Allister Heath argue that now is the moment to throw open the doors once and for all or, more substantially, Alex Deane on ConservativeHome making the same case for reasons of economic growth, fairness, personal choice, and employment.

There is much to question in both these arguments. Circumventing Heath’s argument from exaggeration and trivialisation ("contrary to what many killjoys have been predicting over the years, at the time of writing this article, society appeared to have survived") there is Deane’s contention that we need to liberalise the laws because "the British high street is struggling". This does not persuade: deregulating opening hours for out-of-town mega-stores is unlikely to help the high street. Similarly, his claim that "the current rules are unfair… [as] some retailers can remain open while others are forced to close" invites us to imagine that a playing field populated by handful of Gullivers and a myriad of Lilliputians is already, somehow, fair.

Comparably fantastic is Deane’s explanation that Sunday trading rules actually inhibit "family and community activity": "if consumers no longer had to build their weekend schedule around restrictive shopping hours, they would have greater flexibility to engage in a wide range of activities." Build their weekend schedule? Around the fact that they can’t visit Asda at 7pm on a Sunday evening?

The more serious argument is apparently the economic one, of which Heath says, "I have never actually seen a cost-benefit analysis that showed that there would be a negative impact from liberalising retail." Apparently, that is, because it is hard to imagine that either writer would revise their position if the figures showed that liberalisation had but a marginal economic impact. On the contrary, both are clear that there is, for want of a better word, a moral argument at play. "The government should not limit the options of how individuals and families spend their Sundays", writes Deane. "Why not permanently allow consenting adults to shop freely on Sundays?" asks Heath.

Beneath the relatively trivial question of whether a small number of large shops should be able to open for a few extra hours one evening a week, lurks one of the biggest ethical fault lines of our age. For those on one side of this divide, the phrase "consenting adults" acts like a universal acid on any ethical discourse: are they adult? Are they informed? Do they consent? Well, what’s your problem them?

For others, their problem is that "I want" is not a sufficient argument, even when hitched to the tattered, over-used and hopelessly vague harm principle. Most of us are unwilling to embrace the moral relativism that this kind of approach demands. Notions of the good invariably come into play, as even the hardiest of economic libertarians will recognise – witness Professor Michael Sandel asking John Redwood whether he was up for a free market in kidneys.

OK, so perhaps that isn’t the most objective description of this ethical fault line, but that is partly my point. In all serious questions of the just and the good, there is no neutral place to stand. Sunday trading laws come and, I fear, go. But the question beneath them will remain: are we really prepared to surrender every vision we have of a good society to the freedom and alleged fairness of the market?

Sunday trading laws have been suspended for eight weeks during the Olympics and Paralympics. Photograph: Getty Images.

Nick Spencer is director of studies at the think-tank Theos. His book Freedom and Order: History, Politics and the English Bible is published by Hodder & Stoughton

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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.