Oh, Darling...
For the first time in years, the Conservatives tonight seem to be the ones defining the current political agenda, thanks to the panic-striken, knee-jerking antics of Darling and Brown. The idea behind stealing the policies or the ideas behind them of your political opponents is that you wait a favourable amount of time so that the general public forgets who came up with them first; only then can you take the credit, even if the pipsqueak that first mooted them then pipes up and complains.The cliché says that a week is a long time in politics, and last week arguably proved the cliché, but it's an incredibly short time in the memory. For Alistair Darling in his first pre-budget report to announce an effective doubling of the inheritance tax threshold, even if it actually isn't that and is less generous than it looks on close inspection, not just smacks of desperation, it suggests that Labour now need the Conservatives, the party with no new ideas except soaking the rich and well-off while pounding the poor and sick to lead the way before they move. It's actually worse than that: as well as considering the Conservatives' uncosted, ludicrous inheritance tax policy as worth emulating, he also directly pinches the Liberal Democrats' proposal for taxing flights rather than passengers. That might be a sound idea as it stands, but this was meant to be the Brown government's first major chance to show both how it was going to be different to the 10 years of Blairism, but also to ridicule the Tories' spending plans and their lack of intellectual rigour.
What we got instead was reasonably solid, but disappointing in the extreme. The inheritance tax change is on much firmer economic ground than the Tories' laughable idea to charge non-domiciles £25,000 to pay for the raise to a threshold of £1 million, but just looks like a reaction to their hugely popular but spineless and indefensible new tax cut. Private equity bosses face an 80% rise in tax, but seeing as that they were only paying capital gains tax of 10% to begin with, a rise to 18% is hardly going to break their stuffed piggy banks. As Robert Peston also points out, this will not just affect them but also those who start up and sell their own small businesses, who pay capital gains tax when they do. That's a tax on aspiration, whilst inheritance tax is most certainly not.
As Chris says, this really ought to put the nail in the coffin of Labour as the party of the working class. About the only real reforms or changes in this report which affect them are that Darling's been kind enough to pledge an extra £30 million to go on tax credits, which have been notoriously badly managed. Larry Elliot explains that's only £970 million less than what Darling will be blowing on raising the IHT threshold. The amount of child maintenance a family can receive without it affecting their other benefits will also rise to £40 by 2010, while £4bn will be given to help those in what the BBC describe as "poor-quality" housing spruce up their dwellings. How very kind.
If this was going to be the statement which would have launched the election that never was, then for Labour's sake if no one else's it was for the best. It would have only showed how threadbare the ideas currently are on both sides of the so-called debate. Would those in the marginals, who went all weak-kneed at the chance of passing down their wealth and property without any being grabbed by the taxman have felt the same about Darling's proposals today? Why have the monkey when you can have the organ grinder? For all Brown's undisguised glee and grinning during Darling's statement, itself a horrible, frightening sight to behold, the Tories will be the ones left feeling delighted. They might have dropped their big, vote-winning policies in order to stave off an election, but now they've had that their decision to do that vindicated by Labour's instant response. With possibly two years to go until the next election, that's more than enough time for them to mold more dog-whistles to the middle classes, when Darling could have used today to start the argument against them. Brown's cowardice only shines through again.
Labels: Alistair Darling, inheritance tax, politics, pre-budget report, spending, Tories
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This is NOT about stealing a policy. Not even remotely. It is about nailing Osborne's lie and causing 70% of the electorate unnecessarily worried about this tax to relax.
AND the Labour announcement is nowhere near the same as the Tory one. In fact the Labour one is status quo with a few bells on.
Posted by
Chris Paul |
Tuesday, October 09, 2007 11:48:00 PM
Nailing Osborne's lie would not have involved doubling the threshold, it would involved pointing out over time through argument that the figures behind it were Alice in Wonderland. Labour instead panicked, or either this was mooted when they still thought they were going to call an election to act as a spoiler. It failed on both counts. It might not be quite stealing but a policy, but it certainly looks like it to the average joe, and I'm sure Brown will be crying rather than laughing tonight when he sees tomorrow's Daily Mail front page.
Posted by
septicisle. |
Wednesday, October 10, 2007 1:01:00 AM