How Cameron could ease Tory anger over gay marriage

The Prime Minister could promise to meet his pledge to introduce a married couples' tax allowance in return for support over the issue.

As the government prepares to announce plans to bring forward legislation on gay marriage, the growing divisions within the Conservative Party over the issue are being exposed. Yesterday, David Davies MP described the policy as "barking mad", adding, apropos of nothing, that "most parents would prefer their children not to be gay". Meanwhile, Peter Bone told Sky News: "It was in no party manifesto, there is no mandate for the Prime Minister to do this; he is absolutely wrong to be doing it now, and he's splitting the Conservative Party when we don't need it to be split."

To counterbalance such figures, a group of senior Conservatives, including Michael Gove, Boris Johnson, Transport Secretary Patrick McLoughlin, and former justice minister Nick Herbert, have founded a new group, Freedom to Marry, to campaign for equal marriage. In a letter to the Sunday Telegraph, they wrote: "We recognise that civil partnerships were an important step forward in giving legal recognition to same sex couples. But civil partnerships are not marriages, which express a particular and universally understood commitment."

Today, they are joined by John Major, who declared in a statement released through the group, "The Prime Minister's instinct to support equal marriage is a courageous and genuine attempt to offer security and comfort to people who - at present - may be together, yet feel apart."

That such senior figures feel the need to campaign for what is, after all, already government policy, is an indication of how weak David Cameron's position is. If the PM is forced to rely on the votes of Labour and Liberal Democrat MPs to pass the bill (at least 130 Tory MPs are prepared to vote against it), he will be exposed as the leader of a divided and, in places, bigoted party. Rather than casting the Conservative Party in a positive light, the issue could only serve as a reminder of how unreconstructed parts of it remain. Cameron will lose Conservative votes over the issue, while failing to gain those of liberals.

If the PM wants to limit the extent of the Conservative rebellion, one option would be to fulfil his long-standing pledge to recognise marriage in the tax system (as ConservativeHome editor Tim Montgomerie has argued). The Coalition Agreement (see p. 30) promised to introduce transferable tax allowances for married couples, while guaranteeing Lib Dem MPs the right to abstain, and the measure is reportedly under consideration for next year's Budget. By pledging to bring forward this policy for straight and gay couples alike, Cameron could drain some of the poison from the Tory revolt.

To be clear, he would be wrong to do so (there is no good argument for privileging married couples over others) and such a move may not even succeed in winning the rebels round. In today's Telegraph, demands the introduction of a tax allowance for married couples, while rebuking Cameron for his support for gay marriage. He writes:

The CSJ’s poll, published today, reveals that not just 47 per cent of Conservative supporters feel betrayed by the PM on this omission [Cameron's failure to introduce a tax allowance for married couples] but 35 per cent of all voters. I doubt that the Government will enjoy anything like compensatory approval ratings for announcing in the same week that gay marriage has apparently become a more urgent issue for Government action, despite no similar manifesto commitment to legislate and after a massive consultation exercise that has been overwhelmingly negative.

All the same, it would be surprising if Cameron wasn't considering a grand bargain along these lines.

David Cameron addresses guests at a Gay Pride reception in the garden at 10 Downing Street. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Even before Brexit, immigrants are shunning the UK

The 49,000 fall in net migration will come at a cost.

Article 50 may not have been triggered yet but immigrants are already shunning the UK. The number of newcomers fell by 23,000 to 596,000 in the year to last September, with a sharp drop in migrants from the EU8 states (such as Poland and the Czech Republic). Some current residents are trying their luck elsewhere: emigration rose by 26,000 to 323,000. Consequently, net migration has fallen by 49,000 to 273,000, far above the government's target of "tens of thousands" but the lowest level since June 2014.

The causes of the UK's reduced attractiveness are not hard to discern. The pound’s depreciation (which makes British wages less competitive), the spectre of Brexit and a rise in hate crimes and xenophobia are likely to be the main deterrents (though numbers from Romania and Bulgaria remain healthy). Ministers have publicly welcomed the figures but many privately acknowledge that they come at a price. The OBR recently forecast that lower migration would cost £6bn a year by 2020-21. As well as reflecting weaker growth, reduced immigration is likely to reinforce it. Migrants pay far more in tax than they claim in benefits, with a net contribution of £7bn a year. An OBR study found that with zero net migration, public sector debt would rise to 145 per cent of GDP by 2062-63, while with high net migration it would fall to 73 per cent.

Earlier this week, David Davis revealed the government's economic anxieties when he told a press conference in Estonia: "In the hospitality sector, hotels and restaurants, in the social care sector, working in agriculture, it will take time. It will be years and years before we get British citizens to do those jobs. Don’t expect just because we’re changing who makes the decision on the policy, the door will suddenly shut - it won’t."

But Theresa May, whose efforts to meet the net migration target as Home Secretary were obstructed by the Treasury, is determined to achieve a lasting reduction in immigration. George Osborne, her erstwhile adversary, recently remarked: "The government has chosen – and I respect this decision – not to make the economy the priority." But in her subsequent interview with the New Statesman, May argued: "It is possible to achieve an outcome which is both a good result for the economy and is a good result for people who want us to control immigration – to be able to set our own rules on the immigration of people coming from the European Union. It is perfectly possible to find an arrangement and a partnership with the EU which does that."

Much depends on how "good" is defined. The British economy is resilient enough to endure a small reduction in immigration but a dramatic fall would severely affect growth. Not since 1997 has "net migration" been in the "tens of thousands". As Davis acknowledged, the UK has since become dependent on high immigration. Both the government and voters may only miss migrants when they're gone.

George Eaton is political editor of the New Statesman.