Tory MPs and Think Tanks Pan May Announcements

Conference has barely begun and Tory MPs and right-leaning think tanks and pundits are already kicking off about Theresa May’s announcements on tuition fees and Help to Buy.

Kate Andrews of the Institute of Economic Affairs:

“The Prime Minister is right to address the plights of young people leading up to Conservative Party Conference, but pledging over £10billion worth of uncosted policies will only burden them more down the road, as they face an increasing national debt and – inevitably – higher taxes. While May plans to temporarily put a bit more cash back in the pockets of young graduates, the party must acknowledge that the current university funding system – and lack of competition within it – needs a complete overhaul if student debt is to be tackled. Propping up the Help to Buy scheme only distorts the housing market more, which is already in a perpetual state of crisis. If May is serious about getting young people on the housing ladder, the answer is clear: liberalise the housing market and build more homes.”

Sam Bowman of the Adam Smith Institute:

“Reviving Help to Buy is like throwing petrol onto a bonfire. The property market is totally dysfunctional because supply is so tightly constrained by planning rules, and adding more demand without improving the supply of houses is just going to raise house prices and make homes more unaffordable for people who don’t qualify for the Help to Buy subsidy… Reviving Help to Buy is an astonishingly ill-judged move that may prove economically and politically disastrous for the government.”

The view from ConHome and Unherd:

MPs Guido has spoken to are wondering why May has chosen to engage on Corbyn’s territory with policies that are just Labour-lite. Colleagues are asking why there are no ambitious announcements on house-building and student debt rather than this damp squib. Not to mention the £12 billion of unfunded spending. A lot of work to do on policy over the next few days…

UPDATE: The government’s side of the story articulated well by James Cleverly:




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