George Osborne delivers his speech at the Conservative conference in Birmingham last month. Photograph: Getty Images.
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The OBR shows why welfare cuts won't control spending

Inadequate wages and extortionate rents are pushing up the housing benefit bill. 

George Osborne prides himself on his commitment to bear down on welfare spending, but today's report from the OBR (handily commissioned by the Chancellor) shows how he's struggling. It warns that the new cap imposed on expenditure is in danger of being breached due to the botched implementation of disability benefit reforms and the surging housing benefit bill. 

Between March 2011 and March 2014, forecast spending on incapacity benefits for 2015–16 has been revised up by £3.5bn (34 per cent) due to a higher than expected caseload, slower than expected transfer from incapacity benefit to the new employment and support allowance, and a lower than expected number being found "fit for work" (and therefore ineligible for full support). 

In addition, forecast spending on housing benefit (or, as you might call it, landlord subsidy) has been revised up by £2.5bn (11 per cent) since the expected number of renters and the level of rents relative to earnings have increased at a faster rate than predicted. As wages have continued to lag behind inflation, the number forced to rely on welfare to remain in their homes has surged. The government is now forecast to spend more than £27bn on housing benefit by 2018-19, accounting for more than 11 per cent of welfare expenditure. 

As the OBR notes, one of the main causes of higher spending has been the shift from public to private rented housing. In 2012-13, the number of private renters exceeded the nunber of social renters for the first time in nearly 50 years. Since private rents are usually higher than social rents, the housing benefit bill has risen accordingly. The OBR also notes that "rents have risen faster than earnings and inflation over the past decade." 

What all of this shows is the limits of an approach that focuses on salami slicing the welfare budget (through measures such as the benefit cap and the "bedroom tax"), rather than addressing the structural drivers of higher spending. Unless problems such as inadequate wages and extortionate rents are tackled (through a significantly higher minimum wage, greater use of the living wage, more affordable housing and limits on rent increases, as proposed by Labour) then it will become ever harder to control expenditure. 

George Eaton is political editor of the New Statesman.

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The polls appear positive for Remain but below the surface the picture is less rosy

If you take out the effect of the drift towards phone polling, the last month has seen an improvement in the Remain vote of just 1 per cent. 

The last couple of weeks have looked very good for the Remain campaign – the polls have moved in their direction, the media focus has been on their home-ground issue of the economy, and Leave have had to concede the trade argument and move on to something else.

But, beneath the surface, the picture is less bright. Each of those strengths is somewhat illusory.

While the polls appear to have become more positive, most of the change is a result of shifts in what pollsters are doing, not what the people they poll are thinking.

Analysis by Professor John Curtice shows that early in the campaign just 1 in 7 polls was conducted by phone. Now it is up to 1 in 3.

This makes a big difference to how the race appears because phone polls consistently show much bigger Remain leads. If you take out the effect of this drift towards phone polling, the last month has seen an improvement in the Remain vote of just 1 per cent.  Internet polls are still showing a tied race, compared to a 10 point lead for Remain back in February 2015. All the advantages of incumbency and cross-party support are not shifting the numbers.

Remain’s dominance of the media agenda is also more a function of circumstance that it may appear.

Part of it comes through the use of the civil service machine to generate stories, something every incumbent has the right to do. That advantage ends today as election rules kick in which legally prohibit the government from producing pro-Remain news. The civil servants who did everything from crank out Treasury analysis to plug in Barack Obama’s microphone will have to twiddle their thumbs till the end of June.

The other reason Remain was able to keep the focus on the economy was that Leave wanted the spotlight there too. The defining feature of the official leave campaign was its desire to neutralize Remain’s lead on the economy so that people can afford to vote on issues like immigration and sovereignty.

Leave have clearly failed in that aim. Their pro-trade arguments ran aground when President Obama said a post-Brexit Britain would be ‘at the back of the queue’ for such deals, and they have not found a way back. Remain have restored their dominance of the economy, which for a time looked shaky. Just as importantly, the proportion who say the economy is key to their decision is up 17 points since February, and it now outranks immigration in Comres’ data.

The question is whether that increased salience of the economy will persist or not.

The next few weeks will not see the same convergence of agenda. Leave were always going to focus on immigration at the end of the campaign. They hoped to do that from a position of strength but they will be doing it out of weakness - either way, the effect is the same.

The palate of issues is about to broaden. Broadcasters will no longer be able to run a single story saying “today Remain said leaving was bad for the economy, while Leave said it wasn’t”. Instead the news will have to balance a range of issues including immigration – and so the terrain will shift to help Leave.

Remain have done nothing to try and close down Leave’s strongest issues, and now it is too late. Their plan from here on in has to be to try and make risk, and in particular economic risk, the only thing at the front of voters’ minds.

The next few weeks will be the real test for both campaigns. If Remain can keep the focus on the economy, they should glide home comfortably, and their media team will deserve enormous praise. But if Leave can shift the agenda, perhaps aided by incidents that inflame the tabloids and force broadcasters to pay attention to the issue in the same way voters do, then things could still move towards Brexit.

James Morris is a partner at Greenberg Quinlan Rosner and worked as a pollster for Ed Miliband during his time as Labour leader.