Newsnight Labour leadership debate: political heroes

A most unlikely set of political heroes was offered by the candidates last night. What does this tel

With the leadership candidates asked for a Labour political hero during the Newsnight debate, we were at least spared their tributes to Nelson Mandela, Martin Luther King and Mahatma Gandhi. But what an unlikely set of personal nominations we were offered. Each could be seen as somewhat dissonant with the candidate's past career or campaign message.

Most authentic may have been David Miliband's nomination of Tony Crosland, postwar Labour's greatest social-democratic intellectual voice. It was a good choice -- I think Crosland would be my (somewhat pointy-headed) choice, too -- though the shadow foreign secretary seemed irked with it and to want to withdraw it once the four other candidates had chosen actual as well as lost leaders of the party.

Yet Miliband's claim that Crosland's untimely death in 1977 robbed Labour of a great leader doesn't stand up. Crosland had his chance in 1976 and would surely not have been a candidate in 1980, nor surely could he ever have hoped to lead the party successfully by then if he had been elected. (See the end of the post for more.)

Perhaps least plausible was Ed Balls's choice of Tony Blair, citing his victory in three elections, though he was perhaps not Balls's first choice for leader in either 1997 or 2005. Balls has previously pitched for Nye Bevan.

Ed Miliband played it very safe indeed with Labour's secular saint Clement Attlee, citing the achievements of the 1945-51 government.

Yet surely the efficient managerialism of Attlee, beyond his collegiality in cabinet, provides quite the opposite model of political leadership from the inspirational "movement politics" to which Ed Miliband's campaign aspires. Attlee did not campaign in poetry; indeed, given his famously monosyllabic nature, he might even have questioned the need for any more prose than necessary when governing.

For all of the achievements of the Attlee administration's first term, he entirely failed to renew an exhausted government after 1948. Labour ran in 1950 and 1951 on an empty "consolidation" manifesto, pledging little beyond the nationalisation of sugar. The central point of Ed Miliband's campaign on values and vision is surely to make once again, after New Labour, precisely the critique put by Dick Crossman in New Fabian Essays in 1952: that Labour had "lost its way not only because it lacked maps of the new country it is crossing, but because it thinks maps unnecessary for experienced travellers".

Diane Abbott's nomination of John Smith saw the Campaign Group candidate connect to the centre-right voice most associated with the "soul of the party". That is a smart strategy as part of Abbott's broad and mainstream Labour pitch. I suspect that she may have been less supportive of Smith's short leadership from the right of the party at the time.

By my calculation, Bryan Gould must have won votes from roughly 60 of Labour's 271 MPs in the 1992 leadership election (doing much better in the Parliamentary Labour Party, where he lost 4-1, than in the other voting sections in that most one-sided contest). Most of the left, such as Ken Livingstone, backed Gould over Smith. I don't have a record of which side Abbott was on. No doubt the newspapers could check.

Andy Burnham, too, cited John Smith having pledged also to give Labour back its soul, though he offered little reason for his choice. I suspect that Burnham, who was a researcher for Tessa Jowell from 1994-97, would have been instinctively sympathetic to the embryonic New Labour critique of Smith's cautious consolidation strategy, characterised as "one more heave".

So no mention of Keir Hardie or Ellen Wilkinson, Nye Bevan or Hugh Gaitskell, Barbara Castle or Bernie Grant, Neil Kinnock or Robin Cook. The Labour premiers Ramsay MacDonald, Harold Wilson and Gordon Brown are, for different reasons, very much outside candidates, though there must be less obvious contenders, too.

So, perhaps somebody should make a note to ask the leadership candidates again for their political heroes in October.

Crosland had his chance in 1976, when he received a paltry 17 votes (5 per cent) out of a Parliamentary Party of 314 Labour MPs, finishing sixth out of six candidates, albeit in Labour's most glittering field, with Denis Healey fifth (30 votes), Tony Benn fourth (with 37), Roy Jenkins third (56) and Callaghan second on the first ballot (84) behind Michael Foot (on 90), with Callaghan defeating Foot on the third ballot.

Crosland was famously displeased that he could not even persuade his ambitious acolyte Roy Hattersley to vote for him in the 1976 contest:

When Wilson unexpectedly stepped down as prime minister in 1976, it seemed natural that Hattersley would back Jenkins or Tony Crosland, his close friend and mentor, for the leadership. But he was told by Callaghan that neither of the two right-wingers could hold the party together. Moreover, Callaghan added, they were both going to lose. And those who wanted preferment under a Callaghan administration would have to vote for him (Callaghan).

Hattersley telephoned his friend Crosland to explain his predicament. He pledged eternal loyalty -- and then broke the news that he would be supporting Callaghan. He offered to explain why. Crosland, unsurprisingly, told him to "fuck off". When Callaghan won, he rewarded Hattersley with his first cabinet post, as secretary for prices and consumer protection.

Sunder Katwala is general secretary of the Fabian Society.

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Sunder Katwala is director of British Future and former general secretary of the Fabian Society.

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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.