Will Brown face one last rebellion?

Rebels explore the "Aznar option"

Barry Sheerman, once described as the leader of Labour's internal opposition, is at it again in the Independent today, calling for Gordon Brown to resign. He writes:

No one would wish to underrate the significant contribution that Gordon Brown has made to our nation's politics. We all understand that, at heart, he wants the very best for Britain. However, now is the time for those around him who also care about our country's future to convince him that it is time for him to make way for a new leader.

Sheerman's intervention follows that of Charles Clarke, who in a typically robust article on Wednesday declared:

All the evidence suggests that Brown's leadership reduces Labour support, that alternative leaders would improve our ratings, and that an election determined by voters' answers to the question "Do you want Gordon Brown to be Prime Minister for the next five years?" would further shrink Labour support.

The psephological case against Brown is a strong one. No prime minister has been as unpopular as him and gone on to win the subsequent election. A recent Times leader revealed that Philip Gould has told the cabinet that Labour could win only if it replaced Brown.

This said, I'm rather sceptical of polls showing that Labour would do better under almost any alternative leader. To most voters, Harriet Harman and David Miliband are mere names. They don't know enough to dislike them.

The latest idea canvassed by the rebels is the so-called "Aznar option". Under this scenario, Brown, like the former Spanish premier, would remain Prime Minister until the election but Labour would elect a new leader to fight the campaign.

Matthew Taylor, who first explored the possibility back in August, points out:

In this way the internal contest within the party for its next leader is not about foisting a new prime minister on the country, but about choosing someone about whom the voters can make up their own mind.

The main stumbling block to any rebellion remains the absence of a definitive, Heseltine-type challenger to Brown. This is something of a pity, as the narrowing of the polls may actually strengthen the case for replacing Brown. In a hung parliament, a pluralist figure such as David Miliband would be far more likely to cut a deal with Nick Clegg than the tribal Brown.

History suggests that Sheerman and Clarke aren't likely to rouse a rebellion, but I'd be surprised if large parts of the PLP aren't considering all options as we enter 2010.

 

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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.