The EU referendum leaflet that embarrassed Clegg

Lib Dem leader struggles to explain away election leaflet that called for a "real referendum" on EU membership.

Nick Clegg had a rough ride on the Today programme this morning after presenter Justin Webb reminded him of a Liberal Democrat election leaflet calling for an in/out referendum on the EU. Clegg is now oppposed to a vote on EU membership but not long ago he was calling for a "real referendum" and attacking Labour and the Tories for not doing the same.

The leaflet in question declared:

It's been over thirty years since the British people last had a vote on Britain's membership of the European Union.

That's why the Liberal Democrats want a real referendum on Europe. Only a real referendum on Britain's membership of the EU will let the people decide our country's future.

But Labour don't want the people to have their say.

The Conservatives only support a limited referendum on the Lisbon Treaty. Why won't they give the people a say in a real referendum?

Asked why he no longer supported an early referendum, a tetchy Clegg pointed out that his party's election manifesto stated that an in/out referendum should only be held "the next time a British government signs up for fundamental change in the relationship between the UK and the EU."

But as you'll have seen, the leaflet was less specific, simply calling for a "real referendum" and not tying this pledge to a treaty change. Indeed, it criticised the Tories for only supporting "a limited referendum on the Lisbon Treaty."

As in the case of tuition fees, it's another example of a populist campaign promise that Clegg couldn't live up to. Whether eurosceptic or europhile, British voters are likely to agree on one thing: you can't trust the Lib Dems.

The leaflet row aside, most of the interview was devoted to Clegg denouncing those who argue that Britain should seek to repatriate powers from the EU. "I don't agree with the premise that we can on our own, unilaterally, simply rewrite the terms of the membership of this European club," he said. He went on to warn that the uncertainty created by a referendum pledge could have a "chilling effect on growth and jobs". Rather than vowing to bring back powers from Brussels, Clegg suggested that the government should wait to see whether a new treaty emerges and whether it impacts on Britain (something that would trigger a public vote under the coalition's "referendum lock").

Intriguingly, however, he suggested that the distance between himself and David Cameron was smaller than thought because Cameron's plan to renegotiate British membership was linked to a future treaty change. Thus, if there is no treaty change (as may well prove to be the case), there will be no renegotiation and no repatriation of powers. This is a point that Tory MPs will want reassurance on when Cameron delivers his speech on Friday.

Nick Clegg at the EU headquarters in Brussels. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”