Labour's referendum u-turn is looking ever more likely

Many opposition MPs are persuaded by the case for making a virtue of necessity: resolve the issue and expose Tory divisions.

One consequence of Labour’s great frothy row over trade union influence is that yesterday’s parliamentary parade of Europhobia was bumped down the news agenda.

The vote on the first reading of a private member’s bill calling for an in/out referendum on EU membership was numerically if not politically rather dramatic. It was carried by 304 votes to nil. That means there will be another reading. So the charade gets to be played through another round. These bills become law extremely rarely and this one in particular proposes legislating for something that would happen after the next election, thereby binding a future parliament, which is constitutionally impossible.

The real point of the exercise is to give Conservative MPs the chance to boast to their constituents that they voted for a referendum in parliament and that Labour didn’t. This, it is hoped, will reinforce the message that the only way to get a say in whether Britain stays in the EU or not is to vote Tory. A vote for Ukip, say anxious Conservatives, is a de facto vote for Ed Miliband. Tory MPs report that this line is proving effective in their local associations. The threat of letting in Labour is the standard way to put a stop to harangues about Europe, gay marriage and all the other things that local Tory members harangue their MPs about.

So some Tories might be disappointed that their legislative stunt was poorly reported yesterday. (Although they won’t be sorry it was bumped in order to make way for lavish reporting of Labour disarray.) Besides, the spectacle of hundreds of Tories packing one side of the Commons chamber while the other one was entirely empty did reinforce the impression that this is a peculiar Tory obsession rather than a moment of great national significance. The mood around parliament in the run-up to the vote felt, in Tory quarters, like the anticipation of a stag party – lots of very hearty, cheery men all feeling immensely bullish and chummy in shared anti-Brussels spirit. If the Conservatives bottled that scent and released it to a wider audience I suspect it would not act as an electoral aphrodisiac.

Meanwhile, many Tories are wondering why Labour has not matched their referendum pledge. Just as many presume they will, and wonder when. (I’ve dealt with the question of whether they should and why they don’t want to here and here.) My sense of the mood in the opposition ranks is that the referendum u-turn has become inevitable. It is still possible to find Labour MPs who vigorously hate the idea, but fewer and fewer think it can be avoided. For that reason, the balance of power is shifting towards those who say the best thing to do is try to divide the Tories by calling for an in/out vote this side of a general election. Then, if it happens, Cameron – who ultimately wants to preserve EU membership – will campaign on the opposite side to many of his members, which could be problematic for party unity.

If Labour did go for that gambit they would certainly have support among hard core eurosceptic Tories. I spoke to one fairly moderate (but sometimes rebellious) Conservative recently who said quite casually that the Eurosceptics would “bank” yesterday’s vote and come back for more. Their plan too is to try to bring the referendum date forward.

Meanwhile, one idea floating around the Labour side is to aim for a referendum on the same day as the 2015 general election. The appeal here is that you get a higher turnout of what one advocate of the plan calls “normal, sensible people” which raises the chances of an “in” vote. And, of course, the Tories have to fight a general election campaign while splitting down the middle on a referendum campaign. Not that the decision is Labour’s to make, but as a plan it has the double virtues of clarity and strategic guile – commodities that have seemed in short supply on the opposition front benches of late. Ed Miliband might be tempted to go for it just because it would get people talking about divisions on the Tory side again instead of his own fracturing party.

Waiting for the leader to make the call. Source: Getty

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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.