The case for a Labour EU referendum pledge is becoming ever weaker

Promising an in/out vote would shift the debate back onto Tory territory and allow Cameron to claim that Miliband is dancing to his tune.

After some fine filibustering by Labour MPs, debate on Conservative MP James Wharton's EU referendum bill (which would enshrine in law his party's pledge to hold a vote by the end of 2017) has been adjourned until 22 November. The most notable intervention today came from Ed Miliband, who told broadcasters: "I think what we see today is the Conservative Party talking to itself about Europe when actually what they should be doing is talking to the country about the most important issue that people are facing, which is the cost of living crisis. That’s what Labour’s talking about; that’s the right priority for the country."

What is striking is the confidence with which he dismissed the Tories' referendum antics. Having defined the debate through his proposed energy price freeze and his focus on living standards, he speaks from a position of strength. The case for Labour to pledge to hold an in/out EU referendum (discussed by Rafael in his column this week), most likely before 2017, is becoming weaker every day. Once viewed as a clever ruse to split the Conservatives (something that Adam Afriyie's amendment notably failed to do), it would now shift the debate back onto Tory territory and allow David Cameron to claim that a "weak" Miliband is dancing to his tune.

Despite this, some Labour figures privately suggest the party could reverse its stance following next year's European elections as evidence that it has "listened and learned". Cameron's charge that Labour is unwilling to "trust the people" is one they fear will haunt them during the general election campaign. Yet there is no evidence that the Tories' pledge will succeed in winning back significant numbers of voters from UKIP, most of whom have far wider grievances, or that it will define the election in the way that many Conservatives hope. As polling by Ipsos MORI regularly shows, the EU does not even make it into the top ten of voters' concerns. If there is an electoral cost to Labour from refusing to match Cameron's promise, it will likely be too small to make a difference.

All of this is before we consider the disruptive effect that a post-2015 referendum would have on Miliband's governing agenda and the danger of an 'out' vote (something that a Labour government would find harder to avoid than a Conservative one). Miliband and Douglas Alexander have long made a coherent case against a referendum. As the Tories continue to flout wise warnings not to "bang on" about Europe, they should hold their nerve.

Ed Miliband with shadow foreign secretary Douglas Alexander at the Labour conference in Brighton earlier this year. 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.