Clegg's strategy is clear, but now he must deliver

The next 12 months will show if the electorate is willing to give the Lib Dem leader a hearing.

I asked Nick Clegg yesterday at Lib Dem conference for a short description of what we stand for. What is the liberal language we should be using in our everyday conversation? What's the elevator sell?

I rather liked his answer: "We should answer the call of the head and the heart." By this he meant that we should offer the fiscal responsibility the country needs (and Labour can't claim to have delivered) and also ensure that the life chances of every person are never blighted by the circumstances of their birth - everyone should have an opportunity for greatness. The 'caring' territory that the nasty party (not my phrase) would struggle to own.

Reading the above makes perfect sense in the context of Nick’s speech to the Lib Dem conference yesterday. What’s interesting is that I wrote the above 12 months ago at the Birmingham conference. And here we are, 12 months on, and the message remains the same.

Are you ready to trust Labour with your money again? And do you really think the Tories will make Britain fairer? Because the truth is, only the Liberal Democrats can be trusted on the economy and relied upon to deliver a fairer society too.

And the other truth is that it’s been this ever since we entered government

Leading up to Nick’s speech, there was no shortage of advice about how we should restore our standing in the polls and in the eyes of the electorate. "Turn left" was the advice of the Telegraph's Mary Riddell – "The party’s voters won’t allow a deal with the Tories in 2015 – it’s time to make eyes at Labour". Keep right was the advice of Richard Reeves, Clegg's outgoing director of strategy, in the New Statesman– "Any attempt to position the Liberal Democrats as a party of the centre left after five years of austerity government in partnership with the Conservatives will be laughed out of court by the voters – and rightly so".

But Nick’s message from the last week is clear: yes, I have made political mistakes, but my principles have stayed the same. And for the second half of this Parliament, I will demonstrate that we remain an economically responsible and socially liberal party and you will see that.

The chatter around the grassroots throughout the conference was pretty consistent. Yes, Nick’s got stuff wrong – and large swathes of the party remain livid about it. Yes he’s got a lot to prove – to us, even before the rest of the world. But the next 12 months will show if Nick can deliver against the agenda he outlined yesterday. And if the electorate is willing to give him a hearing.

The party has approved that agenda, supporting the leadership on its economic strategy, while giving it a bloody nose on socially illiberal Tory led policy like "secret courts".  Now let’s see the leadership deliver. The grassroots – and the electorate – are watching. And the clock’s ticking ...

Nick Clegg aims to present the Liberal Democrats as economically responsible and socially liberal. Photograph: Getty Images.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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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.”