If the Tories lose the next election, Clegg must leave with them

To allow the Liberal Democrats to swap sides without incurring any penalty would offend the essential order of our democracy.

I’ve nothing against dogs in general. In fact, I’ve always fancied owning a Staffy. But I’m not fond of poodles. So I nearly choked when Ed Balls hinted at a possible liaison with Nick Clegg, the biggest poodle of all. Our shadow chancellor thinks he could work with the Lib Dem leader in a coalition. It seems Nick and Ed have had a cosy chat recently, and Ed is acting like he’s found a new best friend. They’ve even been indulging in playful teasing on Twitter.

What really gives me the shivers is Ed’s bold assertion that he has “no reason to doubt [Clegg’s] integrity.” Really? What about the “small” matter of tuition fees where Nick betrayed millions of voters? Or his U-turn on reducing the number of digital gambling machines in bookies? One minute he’s backing a campaign to introduce curbs, the next he’s refusing to act, no doubt after a quiet word from the prime minister.

Besides, the shadow chancellor is getting ahead of himself by talking about a coalition at this stage in the game. My personal position is that it’s always preferable to have a decisive outcome in a general election. So it’s a mistake for Labour to get distracted by any talk of coalition. Let’s not give voters a sense of defeatism before the 2015 election posters have even been printed. Instead, let’s focus on fighting as hard as we can for a majority by listening to the concerns and needs of voters. Obviously Labour has a duty to try and form a government if the voters of the UK deliver an indecisive result by some quirk of electoral arithmetic. Yet if the Tories are thrown out of office, it is abundantly clear that Nick Clegg is the person most responsible for propping up a failed administration that did not carry a decisive mandate.

One of the strengths of our electoral system is this: you can heave a party out of office. To allow the Lib Dems to swap sides without incurring any penalty, in effect, feels like it offends the essential order of our democracy. Someone will have to take responsibility for the failures of the current coalition before the Lib Dems could form a coalition on a very different programme of renewed national purpose. 

The man with shared responsibility for those failures is Nick Clegg. Which is why he should go as Lib Dem leader as the price for coalition. There are plenty of people who could take his place. I'm probably in a minority of one in thinking that the Lib Dems should bring back Charlie Kennedy. But there are others who can hold down the job of Lib Dem leader. Vince Cable would be a good choice for example, or Danny Alexander even.

I know Nick’s supporters have tried to promote him as an attack dog rather than a poodle. But let’s face it, he shouldn’t be anyone’s first choice of a mutt they can count on to protect their rights. Clegg has become Mr Toxic, a leader tainted by association with David Cameron and the Tory leader’s “kick the poor, protect the rich” policies. His own MPs are clearly depressed by his lapdog-like behaviour. Sarah Teather has even decided to stand down because of the direction in which her leader is taking the party.

If we do end up without a majority at the next election, then Nick Clegg isn’t the right Lib Dem to go into government with. It’s a price this country shouldn’t have to pay again for democracy.

David Cameron and Nick Clegg visit Wandsworth Day Nursery on 19 March 2013 in London. Photograph: Getty Images.
Tom Watson is the MP for West Bromwich East, and Deputy Chair of the Labour Party. He is also an avid gamer and campaigner for media integrity.
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.