UKIP leader Nigel Farage canvasses for his party's local candidate Glyn Wright in Weaste, near Salford, on September 30, 2013. Photograph: Getty Images.
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Tory group Renewal sharpens the case against a Conservative-UKIP pact

As the blue collar modernising group warns, a deal with UKIP would alienate the centrist voters that the Tories need if they are to ever win a majority again.

Despite the Conservative leadership continually ruling it out, the idea of a Tory-UKIP pact as the solution to the party's polling woes continues to persist. The belief that UKIP voters are simply "Tories on holiday" encourages many on the right to believe that victory can be achieved by uniting the two parties in a new electoral alliance, with UKIP standing down in some Conservative constituencies and the Conservatives standing down in others. 

It's easy to see why many make this assumption. Polling by YouGov shows that nearly half (45 per cent) of UKIP supporters voted Tory in 2010 and their views are closer to the Conservatives' than any of the other main parties. But as David Skelton, the head of blue collar modernising group Renewal, writes in today's Guardian, this analysis ignores several inconvenient truths. The first is that, pact or no pact, a large number of UKIP supporters will not vote Conservative. As Skelton notes, polling by Ipsos MORI shows that 48 per cent would never back the party, compared to 40 per cent of all voters (and 43 per cent of Lib Dems). Rather than defecting to the Tories, many would respond to a pact by voting for another party, spoiling their ballot ("UKIP") or simply not voting at all. Voters, as Skelton writes, "can't simply be moved around like pawns on a chess board", and it is patronising to assume as much. 

To this, some will reply: so what? If a pact wins back some UKIP voters, that is better than winning none. But this ignores the larger number of voters that a pact could repel, including many of those the Tories need to win if they are to ever achieve a majority again. Skelton highlights the finding that ethnic minority voters (just 16 per cent of whom voted Conservative in 2010) hold the most negative view of UKIP and that while just over a third (35 per cent) would never consider voting Conservative, 41 per cent would never vote UKIP. 

A pact with UKIP, a party that is toxic to many voters (from LGBT voters who dislike its opposition to gay marriage, to working class voters who dislike its tax and spending policies), would risk alienating the centrist supporters that the Tories attracted in 2010 and those they need to attract in 2015. Polling by YouGov last year found that a quarter of current Conservative supporters wouldn’t vote for the party if it entered a pact with UKIP, with 5 per cent switching to Labour, 4 per cent to the Lib Dems and 16 per cent abstaining. 

Even if a pact won the Tories more votes in the short-term (something that is far from certain), it would risk damaging them in the long-term. A deal with UKIP would be seen as confirmation that the Conservatives are no longer a majority party and can only win by piggybacking on Farage. Rather than seeking to achieve victory through the artificial means of a pact, the Tories should focus on developing a one nation offer with the potential to attract those alienated by the party (such as BME, working class, northern and Scottish voters) in the 22 years since it last won a majority. This should include the policies advocated by Renewal, including a rise in the minimum wage, the building of a million homes and the creation of a new Secretary of State for consumer protection. 

With the the European elections, in which UKIP is almost certain to come first or second (pushing the Tories into third place in a national election for the first time), likely to lead to new demands for a pact, the challenge for Tory modernisers is to ensure their arguments are not crowded out in the panic that could follow defeat. 

George Eaton is political editor of the New Statesman.

Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.