David Cameron doggedly pursues his “big society”

The crowd at the Conservative party conference still seems unsure of the leader’s message.

David Cameron has just delivered his first speech to the Conservative conference as Prime Minister and the response in the conference centre has been muted.

Despite the excited buzz that preceded his speech -- with the main hall full to capacity over an hour before it began -- it seems that Cameron's central message is still failing to capture the excitement of his own party fully (and certainly not that of the country at large).

In many ways, this was a good speech, effectively delivered. It was essentially Cameron's attempt to frame the mission of his government: refiguring the relationship between individual and state; transferring power to the local level.

It's easy to be dismissive of the "big society" idea but there's no questioning Cameron's dedication to it. Even though it did not fare well during the election campaign (despite being launched to great aplomb) and many in the party believe that it should be dropped in the face of voter incomprehension, the Prime Minister has doggedly persisted in trying to explain what his vision means. Phrases such as "the big society spirit blasting through" will do little to clarify the meaning to the general public, however.

"Your country needs you," Cameron declared, channelling Kitchener. But this was a strange leader's speech: Cameron soon switched his message to that of Marvin Gaye -- "it takes two", government and public, to make his vision happen. At times, he sounded as if he was pleading with the country for acceptance and help. During the final section of the long address, when he turned his attention to this message of localism and "bottom-up, not top-down" change, the previously excited crowd seemed strangely muted, perhaps bemused.

In the conference hall, the most jubilant cheers were reserved for the Labour-bashing (at one point delivered in a staccato rap that is crying out for a YouTube remix), criticism of the EU and the revelation that Margaret Thatcher will celebrate her 85th birthday at No 10.

This was a sincere address but the "big society" message still hasn't caught the imagination of the party. You must wonder, then, how exactly the Prime Minister plans to convince the rest of the country of the need for self-reliance, particularly as spending cuts begin to hit.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for 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.