David Cameron on a North Sea oil platform. Photo: Getty
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Why David Cameron is considering a “no coalitions clause” in the next Tory manifesto

It's all about the money – of the three major paries, the Conservatives are the most likely to be able to afford a second general election campaign straight after the first.

The official line of why we went into coalition with the Tories is of course that is was the democratic will of the people. Our combined share of the vote of 59 per cent remains the only occasion since the Second World War that the UK government has been formed with a majority share of the popular vote.

But there is another side to the story as well, often debated within the Lib Dems, which explains the real reasoning why David Cameron is debating putting a “no coalitions clause” into the next Conservative manifesto.

And it’s all about money.

The argument is this. Supposing we had declined the Tories “big, open and comprehensive” offer to form a government. Three options remained. The first – a coalition of the progressive left – we can dismiss on the grounds that literally the numbers didn’t add up, even if agreement could have been made between ourselves, Labour, the Greens, the SNP and others.

The other two options were a short term confidence and supply arrangement with the Tories, or to allow the Tories to form a minority government. Neither would have involved any sort of fixed term Parliament Act, and so the date of the next General Election would have been at the discretion of David Cameron. The received wisdom is that it would have followed fairly swiftly, probably in the Autumn of 2010 – when only the Tory Party had the funds to run a second general election campaign. The odds are this would have seen a repeat of 1974 – but this time with a big Tory majority. In effect, they should have been able to buy the election.

Thus, the logic runs within the Lib Dems, going into Government with the Tories was not just the best option – it was the only option to prevent a second election and then 5 years of majority Tory Government, with all those policies currently filling Cameron’s little black book ending up on the Statute Book.

You can bet your bottom dollar the same calculation has been made in Downing Street. While it may well be true that David Cameron does prefer governing with the Lib Dems than with many on the right of his own party – and let’s not forget ruling out any coalition also presumably means no electoral pact with UKIP either – there’s still a ton of stuff he wants to do, that the Lib Dems won’t let him.

And the first, I’ll wager, is changes to the constituency boundaries to remove the current bias to Labour.

So I suspect Downing Street Tories, in retrospect, see the big open and comprehensive offer – made after 2 hours sleep following a 4 week long General Election campaign – as a mistake. Labour, should they win most seats but no majority will probably not be in a position to run a second campaign quickly after the first – and hence will leave the coalition door ajar. But the Tories don’t need to.

Hence, I suspect Cameron sees his winning line in May 2015 as not 326 seats, but just as beating Labour. And even he’s a little short first time round, he knows he’s the only leader who can afford to fight Round 2.

Richard Morris blogs at A View From Ham Common, which was named Best New Blog at the 2011 Lib Dem Conference

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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.