There will be no Lib Dem U-turn on boundary changes

The offer of state funding (or anything else) will not induce Clegg to change his stance.

Without the introduction of the proposed boundary changes, there's almost no chance of the Conservatives winning a majority at the next election - the party would need a lead of around seven points on a uniform swing. With the changes, however, it would need one of just four. So it's no surprise that some Tories are still hopeful that they can persuade the Lib Dems to renege on their opposition to the reforms. 

Today's FT reports that the Conservatives are planning a "cash-for-seats" offer under which the Liberal Democrats would approve the new boundaries in return for the introduction of state funding for political parties. So woeful is the Lib Dems' financial situation that the Tories believe Nick Clegg will have no choice but to withdraw his veto. "They are basically out of money," one minister tells the paper, while another adds: "There is a plot". That the Lib Dems' finances are increasingly strained is beyond doubt. As Rafael noted in August, the party's entry into government has seen it deprived of the "short money" made available by the state to opposition parties (something that will cost it £9m over the course of the parliament), while the loss of a quarter of its membership in 2011 helped result in a deficit of £299,964 last year.

But even with this in mind, it's hard to see the offer of state funding (or anything else) inducing Clegg to change his stance. In August, after the abandonment of House of Lords reform, he said:

Coalition works on mutual respect; it is a reciprocal arrangement, a two-way street. So I have told the Prime Minister that when, in due course, parliament votes on boundary changes for the 2015 election I will be instructing my party to oppose them.

In September, when rumours of a deal first surfaced, he declared: "Nothing will change my mind on that." His stance was overwhelmingly endorsed in a motion at the party's conference last month. For these reasons, Lib Dem Scottish Secretary Michael Moore was almost certainly right when he told the Today programme this morning that there is "no prospect of any kind of deal like that." A "cash-for-seats" agreement would only confirm Clegg's reputation as a turncoat, while making his party look irredeemably grubby.

Last month, whilst apologising for breaking his pledge not to support an increase in tuition fees, Clegg declared: "I will never again make a pledge unless as a party we are absolutely clear about how we can keep it." And the pledge to vote against the boundary changes is one that will be kept.

Nick Clegg has previously stated that "nothing" will persuade him to drop his opposition to the propsoed boundary changes. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.