Don't look to François Hollande for inspiration, Ed

The French Socialist leader is a throwback, not a pioneer.

On Wednesday, François Hollande’s budget announced the doubling of a tax already planned by Nicolas Sarkozy, giving a sliver to the state of certain transactions executed in financial markets. So what, you say. Banks can afford it, can’t they? Besides, they messed up: they should pay. But it’s not that simple: like VAT or any other sales tax, the cost is simply passed on to the buyer; a paltry half-billion euros will be raised annually and the law is full of loopholes. Plus, the original Sarkozy tax was only scheduled to come into force the same day, so no-one yet knows what the effects are.

Clearly, there is a political point being made that banks must pay for their sins, but: at what cost? The advantages of a financial transactions tax are unproven, to say the least. At best, it seems like posturing: at worst, it adds to the cost of companies, and the country, raising capital, affecting growth and competitiveness. Plus, with a unilateral move, there is always the danger that people will simply take their business elsewhere, which is why no-one here – not even Miliband –  is suggesting such a unilateral tax for the City, a financial centre which easily dwarfs Paris.

Perhaps, then, it’s a good moment to take a closer look at the Hollande administration. He has, at least, one sensible positive: his belief that growth is the key rather than austerity. Good. However, unlike the UK, Eurozone rules cap his borrowing, meaning next year he needs to make €33bn of cuts. So one wonders how he can fulfil pledges which require him to spend to achieve that growth.

Then there’s his manifesto proposal for a 75 per cent “super tax” for earnings over €1m, a move not seen in Britain since the days of Denis Healey (that said, his own advisor, Harvard’s Prof. Philippe Aghion, admits it was probably just an electoral sop to the left that he didn’t really mean). But many suggested that Hollande’s manifesto largely comprised things he would not really implement, and which he now has. And these are nothing compared to Hollande’s decision to lower the national retirement age from 62 to 60, which gives an insight into some very flawed thinking, because it doesn’t seem to make sense at the level of basic maths. The explanation is quite simple and goes like this:

If I pay a portion of my salary towards a pension, I create a pot, which the government looks after for me. When I retire, that pot buys me a pension until I die, the level of which depends on the size of the pot. Four things determine the size of my pot: the percentage I pay in from my salary; the number of years; the amount I work each year (working hours, holidays, and so on); and the fourth and final thing is the number of years I’m likely to live – the more years, the bigger pot I’ll need.

The problem is in the fourth factor. Most national pension systems in the western world are broke, and are on the verge of not being able to pay out to all the pensioners. They didn’t quite count on so many people staying alive so long, so they under-provided. Most governments are therefore trying to find ways to fund the “pensions time-bomb”, by getting more money into each person’s pot.

So, what you’ve got to do is change one of the first three factors. But in France, the amount you work each year is already fixed at a relatively low level, because of its uniquely-constricting thirty-five hour week and generous statutory holidays. Then there’s the number of years you work, which in France we have just reduced by two. That leaves only one thing: to increase national insurance; raise taxes on those who are working to pay for those who aren’t – which is not really sustainable (particularly during an economic crisis). For this reason, policymakers worldwide are accepting an inevitability: people will have to work longer.

Ah, but not in France. Not in the homeland of Lagrange, Fourier and Descartes, where mathematics nowadays apparently work differently. Or rather, the raising of pensionable age makes no sense at all, because sooner or later the government will have to reverse it, as will all governments. And, in the meantime, it makes the ticking time-bomb worse. It is a sweetie, handed out to make people feel better: Hollande will give you a sweetie today, but some future government will need to take it back tomorrow twofold.

What is most disappointing for the left about Hollande, then, is that he seems much less the avant-guardiste of a new paradigm for the left, than a throwback to old, ostrich-like ways of the 1970s. It fits, too, because France itself has traditionally been the last big country in the west to accept realities such as flexible labour markets and the death of trade protectionism, as global business moves east.

The danger for Hollande, in short, is that he could end up like Spain's “Crisis? What crisis?” Zapatero, someone many on the left also had high hopes for, and whose career ended in ignominy as he was ultimately forced to take back all the sweeties. Miliband was politically astute in taking advantage of the apparent lack of connection between Hollande and Cameron, and right in going to Paris to make common cause with practically the only socialist premier left. But that, perhaps, should be as far as it goes.

Rob Marchant is an activist and former Labour Party manager who blogs at The Centre Left

French President François Hollande welcomes Labour leader Ed Miliband before a meeting at the Elysée Palace in Paris. Photograph: Getty Images.
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Forget the flat caps - this is what Labour voters really look like

Young, educated women are more typical than older, working-class men. 

In announcing the snap election, Theresa May set out her desire to create a “more united” country in the aftermath of last year’s referendum. But as the campaign begins, new YouGov analysis of over 12,000 people shows the demographic dividing lines of British voters.

Although every voter is an individual, this data shows how demographics relate to electoral behaviour. These divides will shape the next few weeks – from the seats the parties target to the key messages they use. Over the course of the campaign we will not just be monitoring the “headline” voting intention numbers, but also the many different types of voters that make up the electorate. 

Class: No longer a good predictor of voting behaviour

“Class” used to be central to understanding British politics. The Conservatives, to all intents and purposes, were the party of the middle class and Labour that of the workers. The dividing lines were so notable that you could predict, with a reasonable degree of accuracy, how someone would vote just by knowing their social grade. For example at the 1992 election the Conservatives led Labour amongst ABC1 (middle class) voters by around 30 percentage points, whilst Labour was leading amongst C2DE (working class) voters by around 10 points.

But today, class would tell you little more about a person’s voting intention that looking at their horoscope or reading their palms. As this campaign starts, the Conservatives hold a 22 per cent lead amongst middle class voters and a 17 per cent lead amongst working class ones.

Age: The new dividing line in British politics

In electoral terms, age is the new class. The starkest way to show this is to note that Labour is 19 per cent ahead when it comes to 18-24 year-olds, and the Conservatives are ahead by 49 per cent among the over 65s. Our analysis suggest that the current tipping point – which is to say the age where voters are more likely to favour the Conservatives over Labour – is 34.

In fact, for every 10 years older a voter is, their chance of voting Tory increases by around 8 per cent and the chance of them voting Labour decreases by 6 per cent. This age divide could create further problems for Labour on 8 June. Age is also a big driver of turnout, with older people being far more likely to vote than young people. It’s currently too early to tell the exact impact this could have on the final result.

Gender: The Conservative’s non-existent “women problem”

Before the last election David Cameron was sometimes described as having a “woman problem”. Our research at the time showed this narrative wasn’t quite accurate. While it was true that the Conservativexs were doing slightly better amongst young men than young women, they were also doing slightly better among older women than older men.

However, these two things cancelled each other out meaning that ultimately the Conservatives polled about the same amongst both men and women. Going into the 2017 election women are, if anything, slightly more (three percentage points) likely overall to vote Tory.

Labour has a large gender gap among younger voters. The party receives 42 per cent of the under-40 women’s vote compared to just 32 per cent amongst men of the same age – a gap of nine points. However among older voters this almost disappears completely. When you just look at the over-40s, the gap is just two points – with 21 per cent of women and 19 per cent of men of that age saying they will vote Labour.

With both of the two main now parties performing better amongst women overall, it’s the other parties who are balancing this out by polling better amongst men. Ukip have the support of 2 per cent more men than women, whilst the gender gap is 3 per cent for the Lib Dems. 

Education: The higher the qualification, the higher Labour’s vote share

Alongside age, education has become one of the key electoral demographic dividing lines. We saw it was a huge factor in the EU referendum campaign and, after the last general election, we made sure we accounted for qualifications in our methodology. This election will be no different. While the Conservatives lead amongst all educational groupings, their vote share decrease for every extra qualification a voter has, whilst the Labour and Lib Dem vote share increases.

Amongst those with no formal qualifications, the Conservative lead by 35 per cent. But when it comes to those with a degree, the Tory lead falls to 8 per cent. Education also shapes other parties’ vote shares. Ukip also struggles amongst highly educated voters, polling four times higher amongst those with no formal qualifications compared to those with a degree.

Income: Labour’s tax increase won’t affect many Labour voters

John McDonnell, Labour’s Shadow Chancellor, has already made income part of this campaign by labelling those who earn above £70,000 a year as “rich” and hinting they may face tax rises. One of the reasons for the policy might be that the party has very few votes to lose amongst those in this tax bracket.

Amongst those earning over £70,000 a year, Labour is in third place with just 11 per cent support. The Conservatives pick up 60 per cent of this group’s support and the Lib Dems also perform well, getting almost a fifth (19 per cent) of their votes.

But while the Conservatives are still the party of the rich, Labour is no longer the party of the poor. They are 13 per cent behind amongst those with a personal income of under £20,000 a year, although it is worth noting that this group will also include many retired people who will be poor in terms of income but rich in terms of assets.

Chris Curtis is a politics researcher at YouGov. 

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