David Cameron promises opportunity for the few and hopelessness for the rest

Under the Conservatives' new plans to remedy the “something for nothing culture” in the UK, you will now be getting nothing for something.

There is now a well established pattern of the Conservative Party kicking the poorest, in reaction to a crisis. It is like a nervous tic. If an asteroid threatened the earth with imminent Armageddon, their reaction - I am quite sure - would be to privatise all observatories, give a tax break to a restrictively defined class of married astronaut and cut all benefits.

After a very successful Labour Party conference, George Osborne announced wide ranging schemes which would once and for all tackle the “something for nothing culture” in the UK. I was very willing to listen. If anyone knows about the “something for nothing culture”, after all, it is a man who inherited his considerable wealth and flipped his taxpayer-funded constituency home for a profit of £400k; the only man in history whose CV reads “Data Entry Clerk, Towel Folder, Member of Parliament, Chancellor of the Exchequer”. This comes less than a week after revealing he is launching a legal challenge against the EU, at taxpayers’ expense, to protect grotesque Bankers’ bonuses. Protecting the people whose selfish and malicious decisions caused this crisis, while punishing the many innocents who lost their living as a result of it.

Never mind the fact that workfare schemes of the kind proposed do absolutely nothing to create jobs and their success in getting people to work is questionable, at best. Never mind that no work has been done to model whether such schemes actually cannibalise real jobs and have a deflationary effect on wages. The report the government itself commissioned to look at such schemes abroad concluded that “Workfare is least effective in getting people into jobs in weak labour markets where unemployment is high.” Never mind that, rather than eliminating the “something for nothing culture”, these schemes actually elevate it to the corporate level.  

The popularity of such initiatives is predicated on a bizarre form of reverse social envy against those less fortunate; built on stories of rhetorical drawn curtains and fictional families no member of which has worked in three generations. “Getting up early in the morning and doing something I hate for money is what I have to do. You should have to, too. Even if it is entirely counterproductive.” That seems to be the cri-de-coeur rising from the people whom the Tories claim to represent. Those “hardworking taxpayers” so self-sufficient they do not even need hyphens.

“Is this the start of a process where people will work for no salary?” asked a BBC News anchor. “Not quite. They will still get benefits,” countered their chief political correspondent, Norman Smith. But here is a question which has not been answered: if National Insurance no longer insures me against unemployment - one of the key elements for which both I and my employer pay it – why should we still be paying it at precisely the same rate? To cross-subsidise a cut of the top rate of tax? To pay for the pensions’ liability of Royal Mail employees, long after we have sold the assets? To fund legal action which seeks to protect City bonuses?

The whole concept of insurance is that you pay into it, knowing you may never need it, in order to purchase peace of mind. Nobody would stand for a car insurer suddenly turning around and asking its customers to do a bit of free work in its offices in order for their claim to be honoured. It may be emotionally easy to support such schemes if you connect them to rare but overly publicised cases of people defrauding the state. It is less easy to support them if you connect them to, for instance, military personnel which were dumped en mass by the 2010 review, have had great trouble getting back into the civilian workforce and many of whom will be coming up to two years unemployed soon. Lloyd George, introducing the National Insurance bill to Parliament in 1911, called it “a measure that will relieve untold misery in myriads of homes — misery that is undeserved; that will help to prevent a good deal of wretchedness.” The only thing that has changed, subtly but insidiously, appears to be public perception of “undeserved”.

What do these measures, which you may support emotionally, mean for you logically? Do they not vitiate one of the most important principles of our society? How certain are you that you or your children will not find yourselves cleaning graffiti or sweeping streets in two year’s time, for no remuneration other than the luxury of claiming back from a system into which you have paid? Will our lives be better or worse for the lack of that safety net? Now, you may answer all those questions in a way which confirms your support of such punitive measures. But at least make sure you ask them.

Cameron went further on Wednesday. He announced proposals to withdraw housing benefit, possibly all benefits, from under 25s. Again, very little thought has gone on the economic effect on parents, who will have to subsidise their children for seven years more than they might have budgeted. Not to mention the human cost for families who cannot afford to. That, in a nutshell, is what one gets with the Conservatives. A transfer of liability, en mass, from the state to the citizen, while personal and indirect taxation add up to more and more and, crucially, unbeknown to most the national debt continues to increase from under £800bn in 2010 to an eye-watering £1.4trn in 2015. Sorry to inform you, some “tough decisions” have had to be made. You are now getting nothing for something. Paying National Insurance, then having to work below minimum wage for your payout. Paying to buy shares in a mail service you already own and end up not owning it.

Certainty for corporations. Uncertainty for individuals. Land of opportunity for the few. Wasteland of hopelessness for the rest. The relentless focus is on creating an environment of advantage and security for business – and only large multinational business, at that – so that they may budget, invest and thrive. The implication is that individuals do not budget, do not invest and do not deserve to thrive. Were you planning to retire around 60? Did you think you had discharged your financial responsibility to your offspring when they reached majority? Were you under the impression that paying into a social security kitty granted you to some level of social security?

Not to worry, though; at least both you and your neighbour have to open your curtains at the same time in the morning. Which is what really matters, right?

When the going gets tough, the Conservatives kick the poorest. Photo: Getty

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

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The tale of Battersea power station shows how affordable housing is lost

Initially, the developers promised 636 affordable homes. Now, they have reduced the number to 386. 

It’s the most predictable trick in the big book of property development. A developer signs an agreement with a local council promising to provide a barely acceptable level of barely affordable housing, then slashes these commitments at the first, second and third signs of trouble. It’s happened all over the country, from Hastings to Cumbria. But it happens most often in London, and most recently of all at Battersea power station, the Thames landmark and long-time London ruin which I wrote about in my 2016 book, Up In Smoke: The Failed Dreams of Battersea Power Station. For decades, the power station was one of London’s most popular buildings but now it represents some of the most depressing aspects of the capital’s attempts at regeneration. Almost in shame, the building itself has started to disappear from view behind a curtain of ugly gold-and-glass apartments aimed squarely at the international rich. The Battersea power station development is costing around £9bn. There will be around 4,200 flats, an office for Apple and a new Tube station. But only 386 of the new flats will be considered affordable

What makes the Battersea power station development worse is the developer’s argument for why there are so few affordable homes, which runs something like this. The bottom is falling out of the luxury homes market because too many are being built, which means developers can no longer afford to build the sort of homes that people actually want. It’s yet another sign of the failure of the housing market to provide what is most needed. But it also highlights the delusion of politicians who still seem to believe that property developers are going to provide the answers to one of the most pressing problems in politics.

A Malaysian consortium acquired the power station in 2012 and initially promised to build 517 affordable units, which then rose to 636. This was pretty meagre, but with four developers having already failed to develop the site, it was enough to satisfy Wandsworth council. By the time I wrote Up In Smoke, this had been reduced back to 565 units – around 15 per cent of the total number of new flats. Now the developers want to build only 386 affordable homes – around 9 per cent of the final residential offering, which includes expensive flats bought by the likes of Sting and Bear Grylls. 

The developers say this is because of escalating costs and the technical challenges of restoring the power station – but it’s also the case that the entire Nine Elms area between Battersea and Vauxhall is experiencing a glut of similar property, which is driving down prices. They want to focus instead on paying for the new Northern Line extension that joins the power station to Kennington. The slashing of affordable housing can be done without need for a new planning application or public consultation by using a “deed of variation”. It also means Mayor Sadiq Khan can’t do much more than write to Wandsworth urging the council to reject the new scheme. There’s little chance of that. Conservative Wandsworth has been committed to a developer-led solution to the power station for three decades and in that time has perfected the art of rolling over, despite several excruciating, and occasionally hilarious, disappointments.

The Battersea power station situation also highlights the sophistry developers will use to excuse any decision. When I interviewed Rob Tincknell, the developer’s chief executive, in 2014, he boasted it was the developer’s commitment to paying for the Northern Line extension (NLE) that was allowing the already limited amount of affordable housing to be built in the first place. Without the NLE, he insisted, they would never be able to build this number of affordable units. “The important point to note is that the NLE project allows the development density in the district of Nine Elms to nearly double,” he said. “Therefore, without the NLE the density at Battersea would be about half and even if there was a higher level of affordable, say 30 per cent, it would be a percentage of a lower figure and therefore the city wouldn’t get any more affordable than they do now.”

Now the argument is reversed. Because the developer has to pay for the transport infrastructure, they can’t afford to build as much affordable housing. Smart hey?

It’s not entirely hopeless. Wandsworth may yet reject the plan, while the developers say they hope to restore the missing 250 units at the end of the build.

But I wouldn’t hold your breath.

This is a version of a blog post which originally appeared here.

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