The modernisation of the Conservative Party is not complete

We must not appear uncomfortable with multicultural Britain.

Yesterday’s Daily Telegraph included an opinion piece from my colleague Damian Green arguing, among other things, that if the Conservative Party gives the impression that it doesn't like modern Britain, it is very unlikely that modern Britain will like it.

Fraser Nelson, the editor of the Spectator, has responded on the magazine's Coffee House blog, arguing that Damian’s analysis is about ten years out of date. Fraser is one of the most articulate and passionate champions of the Conservative cause, but he’s wrong about this on two counts.

First, he argues that the war has already been won. "The Tory Party has moved on" he says, pointing to some of the most impressive members of the 2010 intake. It is certainly true that the war within the Conservative Party has been largely won - most of my colleagues accept the need to appeal beyond the core Conservative vote, to talk about issues like the NHS, the environment and equality as well as more traditional Tory fare like tax, crime and immigration, though a few still don’t get it. But the real war always was and is external, not internal.

Take ethnic minority electors, a growing segment of the electorate: if Fraser really thinks that the war is won, he should take a look at the results of the Ethnic Minority British Election Study or Lord Ashcroft’s recent polling. I suspect that Fraser would reply that it is the imaginative policy thinking of some of my colleagues that will change attitudes among these voters, not vague talk of being comfortable with modern Britain. And to a degree, he would be right - but policy on its own isn’t the answer. Most voters don’t have a detailed knowledge of each party’s policies (they do however pick up on remarks that directly affect them - a surprising number of black and minority ethnic voters in my constituency know that the Prime Minister attacked multiculturalism in an otherwise excellent speech on security in Munich in February 2011) - they decide how to vote based on their perception of what each party stands for. And if you have a damaged brand it colours the perception of all your policies. Take the example Fraser gives: he argues that many people are concerned about immigration and are quite capable of separating this from concerns about race. He is absolutely right - black and minority voters in my constituency are just as concerned as everyone else about the level of immigration and the resulting pressure on public services. But if voters think a party is uncomfortable with multicultural Britain, they will draw conclusions about the motivation behind its immigration policy.

Fraser’s second error is to view modernising the Conservative Party as being about appealing to ethnic minority voters, the LGBT community and metropolitan liberals. To be fair to him, he’s not alone in having this view - and it’s hardly surprising that many people have that impression because these are the groups that the modernisers of the last 1990s/early 2000s tended to talk about. But you could equally talk about public sector workers, Fraser’s fellow Scots or those who live in the great cities of the north and the midlands.

The real war, then, is to change perceptions of the Conservative Party among millions of people whose values on issues like the family, reward for hard work, crime and Europe are Conservative but who do not think of themselves as Conservatives. More people tell pollsters that they would never vote Conservative than say they would never vote Labour. This is not something we should take pride in.

David Cameron won a battle in 2010, securing an additional two million Conservative votes, but the war has not been won - indeed, arguably, we have gone backwards since 2010, particularly among public sector workers because of the painful decisions we have had to take to deal with the financial mess we inherited. It must be won if we want to see a majority Conservative government.

Gavin Barwell is the Conservative MP for Croydon Central.

David Cameron delivers his keynote speech to delegates at last year's Conservative conference. Photograph: Getty Images.

Gavin Barwell is Conservative MP for Croydon Central.

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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.”