A Labour U-turn on free schools? It's not that simple

Stephen Twigg's speech was neither a capitulation to Gove’s agenda nor a ferocious reaction against it.

For a policy intervention to count as a U-turn, two conditions must be met. First, a party needs to have been moving clearly in one direction. Second, after the manoeuvre, it needs to be advancing in the opposite direction. Labour’s announcement today on education policy matches neither requirement.

The opposition has been painfully ambivalent about coalition school reforms, which have their genesis in the Blair-era policy. Labour has been unsure whether or how to salvage some of its intellectual property from Michael Gove’s zealous pursuit of academies and free schools.

Today, Stephen Twigg has tried to bring some clarity to Labour’s position. It isn’t easy. The shadow education secretary has both repudiated and acquiesced to coalition policy. The acquiescence is in accepting that the frenetic advance of academies and the creation of free schools under the current government would not be reversed. A Labour government would, however, apply brakes to Gove’s speeding juggernaut.

Twigg says:

Labour will not continue with Michael Gove’s Free Schools policy. Existing free schools and those in the pipeline will continue. But in future we need a better framework for creating new schools …

There will be no bias for or against a school type- so new academies, new maintained schools, new trust schools - all options. A school system based on evidence not dogma.

But then again, he also says:

Labour strongly believes parents have an important role to play in calling for and setting up new local schools. … Labour started the academies programme to bring outside energy and expertise into the schools system, we want to extend that to parents.

That sounds like a dilute version of existing policy.

The real element of repudiation is subtle but intellectually important. Twigg argues that new academies or free schools should not be set up in areas where there are already sufficient school places. Adding such excess capacity, Labour argues, is wasteful (because limited resources should go to areas where there is insufficient supply and classrooms are overcrowded) and divisive (because parents, it is feared, use free schools to segregate their children from neighbours whom they deem undesirable).

According to Twigg, Labour would change the emphasis in the academies policy from expansion of volume – rejecting Gove's habit of measuring success by the sheer number of schools breaking free from local authority control – to collaboration between schools and enforcing fair admissions policies.

But for Gove, excess supply of school places in some areas is not some accidental by-product of the system, it is the logical extension of the market mechanism that is meant to improve standards. New schools are supposed to arrive on the doorstep of established ones and compete for the attention of parents. The process that Labour sees as chaotic and divisive is, in Conservative terms, the positive force of creative disruption that will unleash innovation and, through increased competition, drive up standards.

This is now the essential division between Labour and Conservatives on education policy. Academies and free schools will be part of the landscape regardless of who wins the next election. But under a Tory education secretary the anticipated mechanism for improving performance in weak schools will by market forces. Education providers, including eventually profit-making private-sector companies, will compete for the custom of parents hoping to send their children to whichever institution appears to offer the best prospects.

And under a Labour education secretary, the expected mechanism for improving performance in weak schools will be intervention, directed by government, in the form of partnership with other, more successful schools. Crudely speaking, the Conservatives like free school and academies because they are supposed to give complacent local authority schools a kick up the backside, while Labour can live with free schools and academies if they give local authority schools a helping hand.

One result of today's announcement is that Labour’s education policy now officially lacks ideological purity. It is neither a capitulation to Gove’s agenda nor a ferocious reaction against it. Twigg’s soggy middle-way position will disappoint dogmatists on both sides of the debate, which is probably a sign that he is standing in about the right place. 

Shadow education secretary Stephen Twigg speaks at the Labour conference in Manchester last year. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former 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.