Cameron's Gulf arms tour betrays his promises

Having once declared that "our interests lie in upholding our values", the PM now pursues arms sales without restraint.

As David Cameron arrives in the Gulf with the aim of selling at least 100 Typhoon fighter jets to Saudi Arabia and the UAE, it's worth recalling the words of his speech to the Kuwaiti National Assembly on 22 February 2011. Back then, as the Arab Spring was erupting, Cameron denounced previous British governments for prioritising commercial ties over human rights. He said:

For decades, some have argued that stability required highly controlling regimes, and that reform and openness would put that stability at risk.  So, the argument went, countries like Britain faced a choice between our interests and our values.  And to be honest, we should acknowledge that sometimes we have made such calculations in the past. But I say that is a false choice. 

As recent events have confirmed, denying people their basic rights does not preserve stability, rather the reverse. Our interests lie in upholding our values – in insisting on the right to peaceful protest, in freedom of speech and the internet, in freedom of assembly and the rule of law. But these are not just our values, but the entitlement of people everywhere; of people in Tahrir Square as much as Trafalgar Square.

But as the PM's three-day trip begins, we've heard much about "our interests" and all too little about "our values". Downing Street shamelessly declared that the purpose of the visit was "to help Britain compete and thrive in the global race." It went on: "A central pillar is our defence relationship with the United Arab Emirates and Saudi Arabia given our shared commitment to security and stability and defeating the threats we face in the wider Middle East region." Yet for the people of the Middle East, as Cameron previously noted, "stability" means autocracy.

While No. 10 went on to make a token reference to the "pursuit of political and economic reform", it made no effort to disguise the fact that human rights are now of little concern. Indeed, the trip is partly designed to reassure Saudi Arabia after the Commons foreign affairs select committee launched an investigation into UK relations with the country and Bahrain. After Cameron's laudable words on democracy, the government has reverted to type.

Two Eurofighter Typhoons take off at RAF Coningsby in Lincolnshire. Photograph: Getty Images.

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.