Why the Tories' dream of a majority could finally end today

The likely defeat of the boundary changes by Labour and the Lib Dems means the Tories will need a lead of seven points to win a majority in 2015.

Update: MPs have voted in favour of delaying the boundary changes to 2018 by 334 to 292. 

Labour, the Lib Dems, the nationalist parties and at least four Conservatives (David Davis, Philip Davies, Richard Shepherd and John Baron) voted in favour of the rebel amendment. 


Barring any last-minute upset, the Conservatives' proposed boundary changes will finally receive their last rites in the Commons this afternoon. MPs will vote on a Labour amendment to delay the reforms until 2018 and, without the support of the Lib Dems, who will fulfil their pledge to oppose the changes in revenge for the abandonment of House of Lords reform, there is no hope of the Tories preventing defeat. 

In addition to Labour and the Lib Dems, at least two Conservative MPs - Glyn Davies and Philip Davies - are likely to rebel, with David Davis also considering voting against the changes (an assortment of rebels that suggests the whips should also keep a close eye on David Davies). Thus, even if the Tories succeed in winning the support of the eight DUP MPs (the SNP is expected to abstain), they will be well short of the numbers needed to save the reforms. As David Cameron's official spokesman delicately put it yesterday, "clearly, from the Prime Minister's perspective, the arithmetic looks pretty difficult". 

The defeat of the changes means it will be all but impossible for the Conservatives to win a majority in 2015. Under the existing boundaries, and assuming a Lib Dem vote of around 15 per cent, the Tories require a lead of seven points to win an overall majority, compared to a lead of four points under the new boundaries. Labour, by contrast, needs a lead of just one point to win a majority under the current system, compared to a lead of three points under the new boundaries. 

The party's advantage is partly due to differential constituency sizes, a factor that the boundary changes, which would have fixed constituency sizes at plus or minus five per cent of 76,000 voters, were designed to mitigate. Since Labour tends to perform best in smaller, urban seats, while the Tories perform best in larger, rural seats, it takes an average of 33,470 votes to elect a Labour MP, compared to an average of 35,030 to elect a Conservative one (and 119,944 to elect a Lib Dem, which is why they bang on about electoral reform). 

But even with the boundary changes, Miliband's party would still have enjoyed a significant advantage over its opponents. This is because the the electoral bias towards Labour owes more to differential turnout (fewer people tend to vote in Labour constituencies) and regional factors (the Tory vote is poorly distributed) than it does to unequal constituencies. As a report by the University of Plymouth concluded: "The geography of each party's support base is much more important, so changes in the redistribution procedure are unlikely to have a substantial impact and remove the significant disadvantage currently suffered by the Conservative Party."

By 2015, as the Tories struggle to even remain the single largest party (something that will require a lead of four points), the more reflective Conservative MPs might ask themselves whether it was worth sacrificing the boundary changes for the sake of preventing an elected House of Lords. When I interviewed former Conservative education secretary Kenneth Baker earlier this month, he told me that he regarded Cameron's failure to secure the boundary changes as his "biggest mistake". ConservativeHome editor Tim Montgomerie has described the defeat of the reforms as the Tories' "worst single electoral setback since Black Wednesday". 

Note the date - 29 January 2013 - it may well be remembered as the day that the Tories' hopes of outright victory in 2015 finally ended. 

Conservative and Liberal Democrat ministers will vote against each other for the first time since the coalition was formed when parliament votes on the boundary changes later today. 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.