The left should weep not cheer at the decline of Compassionate Conservatism

It is fatal to think that the worse the Tories look, the better Labour appears.

A final nail has been bashed into the coffin of Compassionate Conservatism this week and the left should weep, not cheer.

Those receiving benefits, desperate burglars, Europeans, teaching unions, pregnant women and more are now in the sites of a vindictive Britannia that is being unchained before our eyes. In sorrow not anger we should morn the passing of what could have been - a decisive shift in British politics with the rebirth of a caring Tory Party that has turned into a fading dawn. Why and how can this be the case?

The real job of politics is to shift the centre of gravity in your direction for the longest possible period of time. To do this means not just changing your party but your opponents so that when you lose, and you will, nothing really changes. Thatcher realized this when claimed her ultimate triumph was not changing the Tory party but changing Labour. Blimey did she succeed.

The possibility of a one-nation, compassionate Conservatism taking root under Cameron's early leadership was a distinct and tantalizing possibility. Going green, hugging hoodies and the whole big society opened up space that was to the left of the arid spot New Labour finally landed on. A strong connection could have been made to the Disraeli and Macmillan strain of Conservatism that had been lost under the Thatcherite storm. After all, it was a Tory minister that founded our post war system of secondary education, it was a Tory government that built more council houses than any Labour government and under the Tories the NHS used to be safe. Of course it was a paternalistic politics born of an old class system - but a system that recognized obligation, duty, respect and tolerance. Cameron appeared to be of this ilk and not of the dry, utilitarian brand of market fundamentalists that took hold of the party after 1975.

That compassionate Conservatism failed to re-root itself is of course Cameron's fault. He didn't do the work politically or organizationally to dig in. Or perhaps he never really meant it? The crash didn't help either - giving Osborne an easy target with which to attack the state and to have a very lop-sided view of being "all in it together". But the forces outside of the Tory ranks acting against the back-sliding to compassionless Conservatism where too weak to act as an effective countervailing force.  Labour, the unions and wider civil society simply haven't been up to the job.   Too little of the New Labour legacy has survived because it was hardly ever based on principled argument and popular support and was therefore incapable of defining a lasting moral consensus once Labour was turfed out. Devolution stands but little else.

I come from a working class family. I didn't really know any Tories until I was an adult. It confounded my youthful prejudices to find out they could be kind and caring. But such traits find little echo in their party today. Cameron promised but failed to deliver. What happens to these people now - who speaks for them? And what about Ferdinand Mount, Ken Clarke, Peter Oborne and the Red Tory Philip Blond? These people have been adding a richness to the political debate and policy that no longer has a home. Where do they go and what has the country lost?

Some in Labour's ranks will cheer. The lines become clearer for them, a simple world of black and white, good and bad. The worse the Tories get the better Labour looks. Such a view is fatal. It either opens up the threat of Labour marching to the right again to eat up the space being vacated by the return of the great moving right show, or it polarises politics and the whole adversarial system that has done such damage to Britain. Can those who are cheering be so sure the centre of gravity, because of these preference shaping right wing Tories, won't shift even further right?   

The point at which our country was at its most equal was an era in the 1950s called Butskellism, named after the consensus between the hugely influential and decent Tory RA Butler and the Labour leader Hugh Gaitskell.  Compassionate Conservatism is not an oxymoron but it's taken another big hit. We should hope it recovers. The NHS being safe in the Tories hands is a good thing. It means poor people don't suffer unnecessarily. The left has to understand its victory comes is when it converts the Tories again to a humane form of politics.

PS The debacle of the West Coast Mainline franchise is yet another example of free market failure being turned into an attack on the state. In echoes of the banking crisis, that was the result of too little not too much state intervention, the right argue that civil service 'failure' merely shows how daft it would be to let the state ever run the railways again. You have to admire their brass neck.  The reality is that in our warped world we have private sector consultants paid £650k a year to shaft civil servants paid just £65k in the battle of who wins the franchise contract war. I wonder? The former are incentivized to make as much profit as possible while later are incentivized by what's in the public interest. The sooner the railways are run by and for the public the better. Where is Labour's brass neck?

Neal Lawson's column appears weekly on The Staggers.

David Cameron. Photograph: Getty Images

Neal Lawson is chair of the pressure group Compass and author of the book All Consuming.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.