Morning Call: pick of the papers

The ten must-read comment pieces from this morning's papers.

1. The new cabinet: shuffling to the right (Guardian)

The reshuffle will stir searching questions for the dwindling band of progressives who have until now given this government the benefit of the doubt, says a Guardian editorial.

2. Mr Cameron throws down the gauntlet (Daily Mail)

The biggest question of all is how the new Tory team will fare against entrenched Lib Dem resistance, says a Daily Mail editorial.

3. Obstacles removed. Now get on and govern (Times) (£)

By moving a few big beasts and tweaking the lower ranks, Cameron has created a team more in his own image, writes Daniel Finkelstein.

4. What a reshuffle. It's the return of Brown and Blair (Guardian)

David Cameron can wail, but he is the real ditherer – ever more Tony Blair to George Osborne's Gordon Brown, says Simon Jenkins.

5. Belfast riots are price of poor politics (Independent)

Riots on the streets of Belfast look alarmingly like a return to the bad old days, says an Independent editorial.

6. Memo to ministers – ignore the briefing (Financial Times)

The newcomers need to take a calculated risk and settle on a main priority, writes James Purnell.

7. Hard graft can make Britain great again (Daily Telegraph)

We need to take a long, hard look at the policies that discourage the strivers in our society, says Dominic Raab.

8. Chancellors are supposed to be hated – it's part of their job (Independent)

The general squeeze will not relent, writes Hamish McRae. Finance ministers will be unpopular.

9. Merkel’s good politics and bad economics (Financial Times)

Draghi’s medicine may deliver short-term relief but no long-term cure, writes Josef Joffe.

10. Longer speeches only signal a hard slog ahead (Daily Telegraph)

The first day back at Holyrood suggests there's not much to look forward to this term, writes Alan Cochrane.

Photo: Getty Images
Show Hide image

David Cameron's starter homes: poor policy, but good politics

David Cameron's electoral coalition of buy-to-let retirees and dual-earner couples remains intact: for now.

The only working age demographic to do better under the Coalition was dual-earner couples – without children. They were the main beneficiaries of the threshold raise – which may “take the poorest out of tax” in theory but in practice hands a sizeable tax cut to peope earning above average. They will reap the fruits of the government’s Help to Buy ISAs. And, not having children, they were insulated from cuts to child tax credits, reductions in public services, and the rising cost of childcare. (Childcare costs now mean a couple on average income, working full-time, find that the extra earnings from both remaining in work are wiped out by the costs of care)

And they were a vital part of the Conservatives’ electoral coalition. Voters who lived in new housing estates on the edges of seats like Amber Valley and throughout the Midlands overwhelmingly backed the Conservatives.

That’s the political backdrop to David Cameron’s announcement later today to change planning to unlock new housing units – what the government dubs “Starter Homes”. The government will redefine “affordable housing”  to up to £250,000 outside of London and £450,000 and under within it, while reducing the ability of councils to insist on certain types of buildings. He’ll describe it as part of the drive to make the next ten years “the turnaround decade”: years in which people will feel more in control of their lives, more affluent, and more successful.

The end result: a proliferation of one and two bedroom flats and homes, available to the highly-paid: and to that vital component of Cameron’s coalition: the dual-earner, childless couple, particularly in the Midlands, where the housing market is not yet in a state of crisis. (And it's not bad for that other pillar of the Conservative majority: well-heeled pensioners using buy-to-let as a pension plan.)

The policy may well be junk-rated but the politics has a triple A rating: along with affluent retirees, if the Conservatives can keep those dual-earner couples in the Tory column, they will remain in office for the forseeable future.

Just one problem, really: what happens if they decide they want room for kids? Cameron’s “turnaround decade” might end up in entirely the wrong sort of turnaround for Conservative prospects.

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