Tag Archives: subsidies

A simple plan to get Labour back on track

Harriet Harman: Will the acting leader of the Labour Party listen to pleas from the grassroots to get Labour back on track?

Harriet Harman: Will the acting leader of the Labour Party listen to pleas from the grassroots to get Labour back on track?

If the Labour Party is to regain the confidence it has lost, it needs to re-state its identity with a core message of purpose – one that not only encapsulates what Labour is about, but also what it opposes.

That is what was missing from Labour’s general election campaign, and is as much a reason for Ed Miliband’s defeat as the Conservative campaign, which was not based on objective facts but on political spin.

In a nutshell, it is time to remind the voters and the public that Labour is the enabling party. This creates a clear contrast with the Conservatives – the party of restriction.

So, for example, with the National Health Service, Labour should support a service available to everyonefree. That means no private involvement. With the Tory privatisation in full swing, funds are being restricted and so are services. The NHS is now a postcode lottery, with care allocated on the basis of profitability. That’s not good enough; the privateers must be told to jog on.

Education must also be available to everybody, up to the level each person can achieve (or wants to). Again, this means there should be no charge for state-provided services. A state school system has no place for privately-owned ‘academies’ or ‘free schools’. These are Tory devices; the private sector will, by its nature, restrict access in order to extract a profit. It also means no tuition fees for students in further/higher education.

Labour should be helping anyone who wants to start a business, by ensuring there are as few obstacles in the way as possible; it must be the enabling party. That means, for example, a graded taxation system, with lower business rates and taxes for start-ups, progressing to a higher rate for medium-sized enterprises, and a highest rate for multinationals – who should be taxed on all takings made in the UK; no excuses.

Another part of the enabling agenda must be ensuring that people can pay a minimum price for things we cannot live without: Accommodation, services, utilities.

There is now an appalling shortage of appropriate housing for many people – mostly because the Tories sold off so many council houses and did not replace them. This is why the Tories were able to impose the Bedroom Tax on so many innocent people – a restrictive idea, intended to push people out of some areas and into others; shifting Labour voters out of places the Tories didn’t think they should have to share with the riff-raff, you see – a gerrymandering tactic to make those constituencies easier to win in elections. The solution is simple: Build council houses again.

When the utility companies – gas, water and electricity suppliers – were privatised, we were all promised that household bills would be kept down by more efficient private-sector business models and private investment. That has not happened. Instead, consumers have been held to ransom by a small cabal of corporations who have been able to charge rip-off prices. Remember the electricity price scandal of 2013? Who told those firms to quit their restrictive practices and cut bills? Labour. The enabling party. The fear of a Labour government imposing new rules in the consumer’s favour helped hold the greedy private bosses in check for a while, but now we have a Conservative government. How long do you think it will be before prices soar? This Writer reckons they’ll take the first opportunity. Even now, after Labour managed to secure price cuts, the poorest families still have to choose between heating and eating during the winter (the phrase has been used so often it is now a modern cliché). This must not be allowed to continue and the solution is clear: Re-nationalise. There are even two bonus factors in such a plan: Firstly, as many of these utilities are owned – or part-owned – by firms or governments based abroad, it will ensure that our bills pay people in the UK rather than boosting foreign economies at the expense of our own and, secondly, takings will help the UK Treasury balance the books.

There is at least one other privatised service that could also be re-nationalised: The railway system. Prices have rocketed while government subsidies have also soared, since the system was turned over to private hands in the early 1990s. This is madness; it is a huge drain on resources and must not be allowed to continue. We should re-nationalise and follow the example of Northern Ireland, where the service was never privatised and where any profit is ploughed into improvements, not profit.

Then there is our grocery bill, which keeps escalating. This is a particularly thorny subject as, for example, farmers are being ripped off by supermarkets over the price of milk, but the same corporations will happily send apples to the other side of the world and back, just to have them polished. It’s time to straighten out that system as well – although it will take a while.

So this is how Labour should frame its arguments from now on: Labour enables; the Tories restrict.

It should be stressed that the themes raised above are just starting-points which occurred to This Writer while considering the issue last night. The above is not an exhaustive list. Undoubtedly there are many more.

Your comments are invited.

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This is how the ‘annual tax statement’ SHOULD have appeared!

We all owe a debt of thanks to Richard Murphy, over at Tax Research UK. He has broken down the information in George Osborne’s misleading ‘annual tax statement’ into its component parts and then put a new version together, under categories that more accurately describe the spending concerned.

Then he turned the information into a handy pie chart – similar to Osborne’s but with one major change:

This version is accurate.

Here it is:

141105richardmurphy1

Let’s just compare it with Osborne’s…

141105osbornetaxsummary

Big difference!

The most interesting to Vox Political is the perception gap between Mr Murphy’s calculation of the total proportion of tax spent on unemployment benefits – 0.67 per cent – and Osborne’s ‘Welfare’ heading, which constitutes 24 per cent of spending.

Talk to most people about ‘Welfare’ and they’ll think you mean unemployment benefits – so the Osborne chart will make them think that government spending on the unemployed is no less than 36 times as much as is in fact the case.

When a government minister exaggerates the facts by that much, he might as well come out and admit that he’s lying to the people.

Mr Murphy wrote: “This is the statement George Osborne would not want you to see because it makes clear that subsidies, allowances and reliefs extend right across the UK economy. And they do not, by any means, appear to go to those who necessarily need them most. The view he has presented on this issue has been partial, to say the least, and frankly deeply misleading at best.”

He wrote: “Add together the cost of subsidies to banks, the subsidy to pensions and the subsidy to savings (call them together the subsidy to the City of London) and they cost £103.4bn a year – more than the cost of education in the UK.

“It’s also no wonder house prices are so distorted when the implicit tax subsidy for home ownership is £12.6 billion a year.”

He also pointed out that unemployment benefits cost only half the amount used to subsidise personal savings and investments.

For full details of Mr Murphy’s calculations, visit his article on the Tax Research UK site.

Mr Murphy tweeted yesterday: “Almost every commentator now agrees that Osborne is going to spend a fortune sending out tax statements that are wrong. Why not cancel now?”

He won’t unless he’s forced to; he has a political agenda to follow.

That is why Vox Political launched a petition to achieve just that.

If you haven’t already, please visit the petition on the Change.org website, sign it, and share it with your friends.

While you’re at it, feel free to share the infographic, created to support the petition:

ztaxleaflets

Please also read yesterday’s Vox Political article on Osborne’s ‘annual tax summaries’, if you haven’t already.

Follow me on Twitter: @MidWalesMike

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Health Warning: Government! is now available
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SWAHTprint SWAHTeBook