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.

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.