In a bid to rejuvenate the Conservative Party's appeal among younger voters, leadership contender Mel Stride has proposed a novel tax break scheme aimed at helping young people purchase their first homes. This initiative comes as the party grapples with an aging voter base, which Stride describes as an "existential threat" to its future.
The proposed "Headstart" scheme would redirect the first £5,000 of National Insurance contributions from a person's first job into a personal savings account, potentially a Lifetime ISA, to be used towards a home deposit. This approach aims to demonstrate the Conservative values of low taxes and property ownership to a younger demographic.
Stride's proposal reflects a growing concern within the Conservative Party about its diminishing appeal to younger generations. The party, which has been in power since 2010, faces a significant challenge in broadening its support base. Recent data from the July 2024 general election showed that only 8% of voters under 30 supported the Conservatives, with the median age of a Tory voter being 63.
The Conservative Party, the oldest political party in the United Kingdom, has a rich history of appealing to aspirational voters. Stride reminisces about being drawn to Margaret Thatcher's Conservative Party in the 1980s, attracted by its clear values and emphasis on opportunity. Thatcher, who served as Prime Minister from 1979 to 1990, remains the longest-serving British prime minister of the 20th century.
"We cannot hope to build an effective electoral coalition which can win us a majority at a general election if we continue to limit our appeal to the over-60s."
The "Headstart" scheme builds on existing initiatives like the Lifetime ISA, introduced in 2017, which aims to help young people save for their first home or retirement. It also addresses the growing challenge of home ownership in the UK, where rates peaked at 71% in 2003 and have since declined. The average age of first-time home buyers has increased from 31 in 2007 to 34 in 2021, highlighting the difficulties young people face in entering the property market.
Stride emphasizes that this proposal is not a complete solution to the housing market issues and acknowledges the need for planning system reforms and increased home construction. However, he believes it could serve as a starting point to illustrate the benefits of conservative policies to younger generations.
The Conservative Party's struggle to attract younger voters is not unique to the UK. Stride points to the success of Pierre Poilievre in Canada, who became the leader of the Conservative Party of Canada in September 2022 and has made significant inroads with younger voters.
As the Conservative Party looks to the future, Stride's proposal represents a broader recognition of the need to adapt and appeal to a changing electorate. With the UK's median age at 40.5 years as of 2020, Stride aims to bring the average age of a Tory voter down to 41, aligning it with the national average and ensuring the party truly represents the nation it seeks to serve.