The Tories are still lying about "a million" new private sector jobs

The party still won't admit that Cameron is including 196,000 posts reclassified from the public sector.

Earlier this week, I explained why David Cameron is misleading voters when he claims that "one million" private sector jobs have been created since the coalition took office (as he did in his conference speech and at this week's PMQs). Cameron's figure deceptively includes 196,000 further education and sixth form college posts reclassified from the public sector in March; the real figure is a less impressive 874,000 (1,070,000 minus 196,000). As the Office for National Statistics stated in its most recent release:

These educational bodies employed 196,000 people in March 2012 and the reclassification therefore results in a large fall in public sector employment and a corresponding large increase in private sector employment between March and June 2012.

When Conservative MP Claire Perry nevertheless trotted out the stat on last night's Question Time, I called her out on it. In response, the Tory Treasury team tweeted:

Yet the only way that the Tories can achieve a figure of a million, whilst excluding the reclassified posts, is by measuring the rise in private sector employment since quarter one of 2010. In other words, by using pre-election data from April and May 2010 (resulting in a figure of 1,377,000). This would be allowable if Cameron referred to "private sector job creation since March 2010" (noting, perhaps, how Alistair Darling's fiscal stimulus aided job creation), but he doesn't. In his speech to the Conservative conference, he said:

Since this government took office, over one million new jobs have been created in the private sector.

Despite the Tories' protestations, it's clear that Cameron is misleadingly including the 196,000 posts transferred from the public sector. For one thing, if he isn't, why doesn't he use the figure of 1,377,000?

After promising a new era of accuracy and transparency in statistics, the Tories have lamentably failed to deliver.

David Cameron at the Conservative conference in Birmingham earlier this month. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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How can Britain become a nation of homeowners?

David Cameron must unlock the spirit of his postwar predecessors to get the housing market back on track. 

In the 1955 election, Anthony Eden described turning Britain into a “property-owning democracy” as his – and by extension, the Conservative Party’s – overarching mission.

60 years later, what’s changed? Then, as now, an Old Etonian sits in Downing Street. Then, as now, Labour are badly riven between left and right, with their last stay in government widely believed – by their activists at least – to have been a disappointment. Then as now, few commentators seriously believe the Tories will be out of power any time soon.

But as for a property-owning democracy? That’s going less well.

When Eden won in 1955, around a third of people owned their own homes. By the time the Conservative government gave way to Harold Wilson in 1964, 42 per cent of households were owner-occupiers.

That kicked off a long period – from the mid-50s right until the fall of the Berlin Wall – in which home ownership increased, before staying roughly flat at 70 per cent of the population from 1991 to 2001.

But over the course of the next decade, for the first time in over a hundred years, the proportion of owner-occupiers went to into reverse. Just 64 percent of households were owner-occupier in 2011. No-one seriously believes that number will have gone anywhere other than down by the time of the next census in 2021. Most troublingly, in London – which, for the most part, gives us a fairly accurate idea of what the demographics of Britain as a whole will be in 30 years’ time – more than half of households are now renters.

What’s gone wrong?

In short, property prices have shot out of reach of increasing numbers of people. The British housing market increasingly gets a failing grade at “Social Contract 101”: could someone, without a backstop of parental or family capital, entering the workforce today, working full-time, seriously hope to retire in 50 years in their own home with their mortgage paid off?

It’s useful to compare and contrast the policy levers of those two Old Etonians, Eden and Cameron. Cameron, so far, has favoured demand-side solutions: Help to Buy and the new Help to Buy ISA.

To take the second, newer of those two policy innovations first: the Help to Buy ISA. Does it work?

Well, if you are a pre-existing saver – you can’t use the Help to Buy ISA for another tax year. And you have to stop putting money into any existing ISAs. So anyone putting a little aside at the moment – not going to feel the benefit of a Help to Buy ISA.

And anyone solely reliant on a Help to Buy ISA – the most you can benefit from, if you are single, it is an extra three grand from the government. This is not going to shift any houses any time soon.

What it is is a bung for the only working-age demographic to have done well out of the Coalition: dual-earner couples with no children earning above average income.

What about Help to Buy itself? At the margins, Help to Buy is helping some people achieve completions – while driving up the big disincentive to home ownership in the shape of prices – and creating sub-prime style risks for the taxpayer in future.

Eden, in contrast, preferred supply-side policies: his government, like every peacetime government from Baldwin until Thatcher’s it was a housebuilding government.

Why are house prices so high? Because there aren’t enough of them. The sector is over-regulated, underprovided, there isn’t enough housing either for social lets or for buyers. And until today’s Conservatives rediscover the spirit of Eden, that is unlikely to change.

I was at a Conservative party fringe (I was on the far left, both in terms of seating and politics).This is what I said, minus the ums, the ahs, and the moment my screensaver kicked in.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.