Labour must not turn its back on pluralism

Tribal differences have obstructed progressive change in the past. They must not do so again.

In one day last week we saw the UK Independence Party (UKIP) record its best ever by-election result, a Liberal Democrat Deputy Prime Minister speak against his own government to support Labour's leader (whose own party was chalking up solid by-election wins as Lib Dem support evaporated) while a panicky Tory vice chair called for a deal with UKIP. Let's be suspicious of instant punditry that tries to tell us 'what this all means'.  But, at the very least, it's safe to conclude that politics is not going to return 'to normal' anytime soon.

Normal, to my generation, meant an essentially two-party battle with those odd (Liberal) Lib Dems occasionally winning. A younger generation saw that disappear in Wales and Scotland years ago, and a three-party system became the norm in England. But that, too, is now crumbling. We may not know where the votes of the disaffected will go, but with each passing election, fewer and fewer are likely to return en masse to Labour, the Tories or the Lib Dems.

While that much is commonplace, too few people have asked what this means for progressive politics and for the chances of achieving progressive change. Labour instinctively believes that, even if politics is more volatile, it can become the default choice for progressive voters.

In the short-term, that may be true in parts of England where the Lib Dems attracted a part of the progressive vote. It no longer works in Scotland and Wales, though, and all the signs are that it's not a long-term bet for England either. Rather than Labour re-establishing itself as the sole party of choice for progressive voters, it's more likely that the progressive vote will be split as it has now been for decades.

In these circumstances, the chances of progressive change will depend on a political system and a political culture that enables the progressive views of voters to be reflected in the government of the day.  It requires a pluralist political culture, a willingness to cooperate with others in order to deliver values that are shared among the voters of different political parties.  A one nation Britain not only needs a one nation Labour Party capable of garnering support from many different voters in many different parts of the country, but an open approach to politics that builds alliances for progressive change.

The launch of Labour for Democracy on 4 December is an attempt to break down tribal sectarianism and promote a pluralist culture within the Labour movement. The focus is not on coalitions or cross-party deals, but on finding ways of delivering what progressive voters want. We've already shown that, in the main, past Lib Dem voters hold similar values to Labour's, and quite different to most Tory voters. It's also clear that, despite the failures of the coalition, the public still generally want politicians to work together when they can, rather than exaggerate their differences.

This isn't the easiest time to make the pluralist case. The Lib Dems' governmental and electoral performance is hardly encouraging, and has revealed a culture at times as sectarian as anything Labour has to offer. Meanwhile, Labour is doing well, and, of course, every party activist will work as hard as they can for every Labour vote. It is tempting to see pluralism as a sign of weakness, a lack of confidence; even an unwanted attempt to give Nick Clegg a permanent and undeserved place in government.

But we must be bigger than that. Tribal differences have obstructed progressive change in the past. Voter allegiances to the major parties are declining as fast as the icecaps are melting. There are even signs that the ‘progressive majority’ that split its vote in the 1980s is itself shrinking in the face of recession and insecurity.  If we want to change Britain in a progressive direction, Labour must show it is willing to work with, not just lead, everyone who will support all or part of that change.

Labour leader Ed Miliband was supported by Nick Clegg in calling for the implementation of the Leveson report. Photograph: Getty Images.

John Denham was a Labour MP from 1992 to 2015, and a Secretary of State 2007 to 2010. He is Director of the Centre for English Identity and Politics at Winchester University

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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.