"All Thatcherites now"? Not us, say the voters

A new YouGov poll shows voters reject policies including the sell off of council housing, the privatisation of public utilities and prioritising inflation over employment.

"We're all Thatcherites now," declared David Cameron yesterday, implying that the former prime minister's values had become the nation's. But YouGov's new poll on her reforms suggests the voters take a more nuanced view than Cameron's narrative allows.

It is true, as Cameron said, that some "big arguments" have been permanently resolved in the right's favour. Asked whether a "stronger and more influential trade union movement would be a good thing for Britain", just 34 per cent said it would and 45 per cent said it would not. By a similar margin - 52 per cent to 27 per cent - the public agree that "companies and industries that are not competitive or profitable should be allowed to close", even if this means job losses, rather than receiving government subsidy.

The voters also overwhelmingly reject one of the policies that featured in Labour's 1983 "suicide note": unilateral nuclear disarmament. Asked whether Britain should "maintain its nuclear deterrent" or whether it is "no longer necessary for Britain to have its own nuclear weapons", 59 per cent said the former and just 26 per cent the latter. Finally, on deregulation, by 45 per cent to 40 per cent, voters agree that businesses work best when free to grow "without government interference", rather than when "strongly regulated to protect the interests of their customers and workers". In his interview on the Today programme, Cameron argued that "no one wants to go back to trade unions that are undemocratic or one-sided nuclear disarmament or having great private sector businesses in the public sector" and, in these areas, the poll bears him out.

But more striking are those parts of Thatcher's legacy that the public now reject, including the totemic "right to buy". Only 42 per cent said that social and council housing tenants should be allowed to buy their homes, with a greater number (49 per cent) agreeing that social housing should be kept in public ownership for "future generations in need". The voters also take a sceptical view of another of Thatcher's emblematic policies - privatisation. A large majority - 61 per cent - believe that public utilities, such as energy and water, are "best run by the public sector", compared to 26 per cent who said they should be run by private companies. Ed Miliband has consistently rejected calls to renationalise the utility companies, largely on the grounds of cost, but expect to see this proposal pushed by the Labour left as the party's policy review continues.

The public also doesn't share Thatcher's narrow, monetarist focus on price control. Forty one per cent agreed that the government's economic priority should be to "keep down prices, inflation and government borrowing" but 49 per cent said that its priority should be "to protect jobs, ensure full employment and maintain spending power in the economy".

If it is clear, to paraphrase Thatcher, that few want to return to the days when the state ran Pickfords removals and the Gleneagles Hotel, it is also clear that most would like to see a more mixed economy, with the state intervening to provide affordable housing and utilities and to enable full employment. All of which suggests that the social democratic Ed Miliband may have a better grasp of the new centre ground than that son of Thatcher, Tony Blair.

A member of the crowd holds up a sign along the route of the procession during the ceremonial funeral of Margaret Thatcher. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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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.