NUS president will not seek re-election

Aaron Porter agrees to step down this April, admitting that the union needs “reinvigorating” with a

The president of the NUS, Aaron Porter, has today announced that he will not be seeking re-election in the upcoming NUS elections. He will become only the second NUS president since 1969 to not serve a second term.

Porter came to power as a wave of student activism swept the UK in response to government cuts to education funding. Porter failed to ride it and was instead swept under.

When an NUS-organised demonstration turned violent, Porter was left in the straitened position of having to condemn the damage, without aggravating the increasingly vocal left-wing membership of the union. It was a diplomatic tightrope from which he fell.

With the union critical of the direct – and often violent – action taken by some students, the movement took on a dynamic separate from the NUS, leaving the organisation looking dated and out of touch. Porter failed to offer his support to high-profile student occupations that popped up in universities across the UK throughout November and December.

The NUS president offered a mea culpa for his "dithering" and lukewarm response to them. Speaking at the UCL occupation, Porter said: "For too long the NUS has perhaps been too cautious and too spineless about being committed to supporting student activism. Perhaps I spent too long over the last few days doing the same. I just want to apologise for my dithering in the last few days." This apology did little to raise the president's standing among more ardent student protesters.

In another blow, a memo leaked to the Daily Telegraph in December showed that Porter had been prepared to cut maintenance grants to the poorest students. And in January, he had to be escorted by police and forgo a pubic appearance in Manchester after being surrounded by demonstrators calling for his resignation.

Now, in effect, they have it. With the elections in April, Porter is a lame-duck president.

Here is his full statement:

Dear All

The last few months have been momentous. Our response to the government's austerity measures will go down in the history books. We've kick-started a wave of student action, brought the coalition to its knees, and we've shaped the public debate on education in an unprecedented fashion. This campaign began over three years ago – a long-term strategy to deliver a real alternative to a market in fees, and it's a campaign I have been heavily involved in from the very beginning as a student officer in Leicester, as vice-president (higher education) and then as NUS president.

The government's decision to treble tuition fees was a bitter pill to swallow – and whilst a number of concessions were secured, notably for part-time students as well as an increased threshold of repayment for all graduates, this was still not the outcome we wanted. Thousands of students will now decide that higher education is not for them – and the ones that do get to go will be plunged into an era of market chaos. It's a tragedy – and one that requires relentless pressure, both locally and nationally, to ensure that it is exposed and replaced with something better as soon as possible.

So this new regime brings with it a new landscape, and I believe NUS now needs reinvigorating into the next phase of this campaign. After considerable soul-searching, I believe there needs to be a new president to lead the student movement into that next phase. As a result, I've resolved not to seek re-election at National Conference this year.

The challenge for a new national president will be great. They'll need to support students' unions and student officers to get the best deal for students, whilst running a major national campaign to defeat damaging marketisation in education. They'll need to build activism and radicalism on the ground whilst defending legitimate, democratic students' unions from attack from our enemies. Above all, they'll need a fresh outlook – because if we are to reach out, and engage with, the full diversity of our membership, we need to move beyond the tired rhetoric and redundant tactics of some factional groups.

I want to say thank you to the hundreds of students and student officers who have been so supportive this year, and indeed for the nominations for a second term which I had already been sent. It goes without saying that with a white paper on its way, the next four months remain a huge opportunity for the organisation, and I will be relentless in ensuring I do the very best I can in the role.

We should continue to be proud of what we have achieved, and it has been an honour to be president at this time. If I have one criticism of this year, it would be that we have not been quick enough to talk about our achievements – and I hope we can pause for a moment to remedy this.

Let's push on to make sure we credit ourselves for what we have achieved, and ensure we work together to push NUS and the student movement to the next level.

In unity,

Aaron Porter

(Hat-tip: Liberal Conspiracy)

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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.