Cameron shamelessly compares himself to Obama

Tory leader compares his vision with the US President's.

Nick Clegg may have been accused of sounding rather like a certain US politician recently (all those references to "hope" and "change") but David Cameron has just taken Obama mimicry to a whole new level.

Here's how he ended his speech on the "broken society" today:

Inspired by the Big Society, not crushed by the effects of big government. Based on hope, optimism and faith in each other. Not rules, regulations and fear of each other. This is what Barack Obama called the audacity of hope. Now it is our turn to dare to believe that we can change our world. Together. All of us. So let's do it.

I think it's safe to assume that Obama, who opposed the Iraq war, supports "spreading the wealth" and believes in the power of government, does not believe that Cameron, who backed the war, plans to cut tax for the rich and believes, absurdly, that "big government" caused the financial crisis, is fit to claim his mantle.

Indeed, on policy areas from Lords reform ("a third-term issue" for Cameron) to the voting system, the Tory leader is not the candidate of change but the candidate of the status quo.

In any case, is it not an indictment of the right that Cameron now attempts to improve his image by comparing himself to a left-liberal politician? It's as good a reminder as any that this is a progressive, not a conservative moment.

 

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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.