Tax cuts and yet more almost irrelevant legislation.
For what most of the press have presented as a panic measure, yesterday's move by Alistair Darling, or rather Gordon Brown skilfully manipulating the chancellor's strings, to raise the personal allowance by £600 to £6,035, a tax cut in effect worth £2.7bn, was reasonably inspired and probably the best option to mostly end the 10p tax cut debacle. It was what plenty have been arguing for all along: a honest, transparent and simple move that takes more of the working poor out of paying tax altogether, whilst not penalising middle earners at the same time. This was the opposite of what Brown, the supposed champion of anti-poverty measures had done in his last budget, the about-turn performed by his weak puppet. If this is the sort of thing that weak chancellors do, then we could do with more of them.This isn't to forget about the downsides of the move. Firstly it does to a degree show the government panicking over the possibility of losing the Crewe by-election, but it also shows them genuinely listening to people's concerns, as Brown and others less than convincingly promised. More important though was compensating those who have lost out who should never have done in the first place, and if it just so happens to be done prior to a by-election which has become almost a referendum on Brown's stewardship of the country, then so be it. Secondly is that it sadly won't be fully compensating everyone that did lose out, with up to 1.1 million only getting half back. More must be done for them come the pre-budget statement in the autumn, but the issue does now seem to have been firmly closed, something that previous attempts at buying off both the rebels and the country at large had failed to do. Thirdly it puts the government perilously close to breaking its 40% of GDP borrowing rule, the tax cut coming as it does through lending, but almost any other means of compensating would have been either seen through for the con it was, left many still feeling short-changed even if they hadn't been or taken the best part of two years to come through, something entirely unacceptable. It has the added bonus for Labour of shooting the Tories' faux-plight for those who lost out under original change stone-dead, with Cameron always making clear that he would make no promises to restore the 10p tax band. Darling hasn't done that either, but he's done something better that the Tories at no time suggested.
If that was part one of the planned fightback, then part two was today's announcement of the draft Queen's speech, and understandably it had none of the dramatic effect or chutzpah of yesterday's gamble. Instead we have an almost congealed gloop of left-over, stolen or back of the fag packet style bills that hardly present a coherent programme of government. That is to be somewhat expected half-way through a parliament, but when it's also meant to be kick-starting Labour's hopes of getting re-elected in two years' time, it was mostly a squib of the damp variety.
One of Labour's worst tendencies has been to legislate, legislate, legislate and reform, reform, reform then think of the consequences later. We can see this in the continuing attempt to force through longer detention without charge, the use of various parts of Home Office legislation for purposes which they were not intended, the hospitals and schools sick to the back teeth of new initiatives when they haven't gotten used to the last one, and most egregiously, the banning of demonstrating within a mile of parliament, now due to be repealed in the latest constitutional renewal bill. The best political idea of recent years was the Liberal Democrats' pledge to have a bonfire of the very worst illiberal legislation placed on the statute books, and both Nick Clegg and Vince Cable have been making the same argument again today on the quantity rather than the quality of new bills. Their list at the time of what to repeal would still be a great start today, although you can also add the now tragically passed "extreme pornography" sections of the last crime bill to the things to burn.
In lieu of that happening, it has to be said that most of the bills at least have their heart somewhere in the right place. The problem with this pre-Queen's speech announcement is that at best we're given a very shady outline of what's actually going to be in the legislation once it reaches parliament, but on what we know the banking reform and saving gateway bills are steps in the right direction which seem unlikely to come across many hurdles. Of more concern and contentious are bound to be the equality bill, especially the part concerning the all-women shortlists which, despite having the right intention are not the way to achieve equality in parliament; the welfare reform bill, where it's not clear whether the government is "borrowing" the Conservatives idea of needlessly and wastefully re-assessing everyone on incapacity benefit but where they are forcing the long-term unemployed onto "training courses" they have most likely already taken; the policing and crime reduction bill which will introduce yet more crackdowns on "anti-social behaviour", binge-drinking and also "cut red tape", which might well mean the scrapping of the current stop and search mechanism; the Citizenship, immigration and borders bill which will likely toughen still further the steps towards citizenship; the communications data bill, introducing the EU's intrusive demands on data retention on ISPs and the like; and the coroners and death certification bill, where it's still not clear whether the government will relent on its much criticised changes to the coroner's system which mean the Home Secretary can order "sensitive" inquests to be held without a jury.
While this programme might have been intended to add detail to yesterday's decisiveness, it's certainly done nothing to curtail the Tories' spirits, and their response has been emblematic of that. Why, the government is so desperate that it's taking up to 12 of our ideas and putting them to good use was the cry from the opposition benches, and it's one that's not wholly unfounded. While such populist ideas as directly elected representatives that deal with the police can either work well or fail abysmally, there's little here that's immediately going to be opposed on ideological grounds alone, although the pledge to give agency workers the same rights as regular ones, which again needs to be fully fleshed out, might have the Tories pause for thought. There's the saving gateway bill and the social housing plan for government to put up equal amounts as the potential buyer to appeal to the Labour left, but the rest seems almost devoid of colour, limp, lifeless, dull and decent, as someone else suggests.
Some will argue perceptively that that's exactly what Labour needs to do at the moment, to abandon the high risk strategy of eye-catching new initiatives which the Blair years foisted on us time after time, and just concentrate on governing effectively and competently. The other side to the coin is that also suggests a government running on empty, with nothing new to offer, while the increasingly confident opposition only seems to building on its gains. As usual, the reality is split down the middle, with a party that neither knows whether to go all-out or to just carry on. It seems unlikely in the long-run that this latest programme will make any great difference: as before, the next election is now the Tories to lose, and with nothing left in either the kitty or the bag, Brown looks just as isolated and lonely as before.
Labels: 10p tax rate, Alistair Darling, draft queen's speech, Gordon Brown, legislation, policy, politics
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I thought the 40 % GDP rule was broken a while back, when Northern Rock was nationalised, and hence removes justification of the private finance initiative (an idea so inherently crap that even the Tories, who invented it, think it's a bad idea).
Posted by
Dr Nick |
Thursday, May 15, 2008 8:56:00 PM
I think in typical New Labour style that's been kept off the current debt account, but I could be wrong.
Posted by
septicisle |
Thursday, May 15, 2008 9:30:00 PM