Why the Tories have more in common with the Romanians than they think

It's a sweet irony that Margaret Thatcher is the heroine both of some of those who wish to come here and many of those who oppose their doing so.

In the summer of 1992, after two months teaching English at Bucharest University, I asked my students which lesson they had enjoyed the most. In unison, they said: "the one about Margaret Thatcher".

Bucharest was a bit of a mess then, and it was Ceaușescu’s fault. His plans for 'systematizing' Romania’s capital around his grey Palace of the People, the heaviest building in the world, were half complete. He had managed to destroy much of the city's historic centre but not yet replace it with all the blocks of flats he wanted to squeeze people into.

Bucharest was also a mess because of the revolution of Christmas 1989 that finally brought Ceaușescu’s rule to an end. Important buildings, like Bucharest University's library, were destroyed or pockmarked with bullet holes. Temporary wooden crosses marked where people had been injured or killed in the 'Mineriads' of 1990/91, when miners came to Bucharest to attack those protesting at the ex-communists who had seized power.

The west was intruding but in odds ways to begin with. The most visible signs were chewing gum everywhere and a graffiti battle between the local fans of Depeche Mode and Metallica. Seeing a huge mass of men clamouring for sight of something, I joined them to see what the fuss was about. In the middle was a little table with some American pornographic magazines on.

Romania has long been famous for two things: Dracula and the Roma (gypsies). Given that Dracula is fictional (albeit based on Vlad the Impaler) and the Roma live all over the world – with apparently more in the United States than in Romania – that is an inaccurate picture.

In fact, Romania has a bit of everything. Anyone who has criticised the country in recent days without having been there should book a vacation without delay. They'll find skiing holidays, beach holidays and lots of sites of historic interest. Visit Bucharest and you’ll discover why it is still known as the 'Paris of the east'. 

Having lived under such a brutal communist regime for so long, Romanians cherish their freedom just as much as we Britons do. It's not because I taught the lesson on Margaret Thatcher well that they liked it so much. (I didn't.) It was because they genuinely thought she had bought them freedom by challenging communism head on and never giving an inch.

I tried to give my students a fair assessment of Thatcherism (despite being a paid-up Tory). I spoke about the gap between rich and poor, north and south and even played the Morrissey song 'Margaret on the Guillotine'. But they didn't buy it. Whatever I said about the shortcomings paled to insignificance against her anti-communist stance.

It's a sweet irony that the Iron Lady is the heroine both of some of those who wish to come here and many of those who oppose their doing so. Yet back in 2007, when Romania joined the EU, both groups also supported the concept of a wider Europe. It is those seeds we are now reaping.

Some of the opposition to Romanian and Bulgarian newcomers arises from the changes they will bring. As the parent of a child starting school in 2014, I understand that. Looking around our local primary schools, I have been astonished by the expansionary pressures they face – even before any new influx. It is the duty of politicians to respond to such problems and absurd to claim they must not be discussed.

But the debate goes wrong when people treat Romanians as an alien species. After all, they understand the fear of change as much as we do. William Blacker's book 'Along the Enchanted Way', published in 2010, shows just how immense the pressures of the new world have been on Romanian villages and gypsy communities. But read it alongside Carmen Bugan's harrowing recent memoir 'Burying the Typewriter' on the treatment of her dissident father under communism to remind you how necessary it was for change to happen.

Life has improved for many but those Romanians coming to the UK will have the same motives as those who voluntarily chose to attend our English lessons soon after the revolution – they want to better themselves. Of course that's not true of all – just as not all British people moving abroad do so for honourable ends – and those camping on Park Lane do pose a challenge for the authorities.

Yet the current furore has missed a key point: Britain is actually less appealing to most Romanians than it was to those Poles who arrived during the 2000s because there are fewer historic links between our two countries. Romanian is a Romance language that has more in common with Italian, Spanish and Portuguese than it does with English. Such things matter as much as benefit rules in deciding where to settle.

As we now start to assimilate those who do arrive, we should spare a thought for the captivating country they come from because every time a skilled person leaves for the UK, their skills shortage gets a little worse and ours gets a little better.

Nicholas Hillman is director of the Higher Education Policy Institute

A protester who climbed on a police vehicle waves a Romanian flag on December 21, 2013 during a march commemorating the 1989 Romanian Revolution. Photograph: Getty Images.

Nicholas Hillman is director of the Higher Education Policy Institute and a former special adviser to David Willetts 

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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.