Tuesday, May 13, 2008

Fill the pockets and purses of basic rate Britain

I’ll join the chorus of approval for Chancellor Alistair Darling’s decision to increase tax allowances for basic rate taxpayers. I suppose the Mrs and I should declare an interest (or rather 240 of them). But I do genuinely think that this is good news for low and middle income Britain. It is also progressive and even (mildly) redistributive in a gentle “don’t scare the horses” New Labour way.

I don’t think that there has been any conversion on the road to Damascus, but the government has been given a bloody nose by normally loyal backbench MPs not the “usual suspects”. What does this mean? Gordon Brown is not stupid. I think he will take account of his backbench MPs and realise a mistake was made over the abolition of the 10p rate and learn from it.

Mike Ion talked a lot of sense on Monday about how folk have short memories. Less than 12 months ago the Tories were disintegrating over academic selection and Labour was 14% ahead in the polls. Two years is a long time in politics. This was before today’s announcement on basic rate tax.

One positive consequence could be that in the in the face of a resurgent (for now) Tory Party, is that the Government has realised that it needs to capture low and middle income Britain. Now, I would argue that this would also involve delivering on rights for agency workers, public sector pay and financial security for the self-employed etc.

While the Government may have realised in a period of low wage growth and relatively high inflation for fuel and food that they need to concentrate on making sure that low and middle income Britain release that the Labour Party has their interests at heart. They must find ways to put real money into their pockets and purses before 2010.

Will higher rate Britain (not all of course) vote for the Tories anyway now they appear to have a “respectable” One Nation toff as leader?

4 comments:

Tom said...

Good post John.

I think the key for the government is to consult the party and unions more fully before making policy. Unity is essential, but talk is essential to achieve it.

Robert said...

And yet some of the lowest paid are still worse off, but heck thats only a million, the biggest winners are still the ones on £50,000 + some equality.

But will this make me rejoin Labour nope it will not, would it make me vote Tory, it will unless Labour tells me how it's going to help me out of the shit.

I lost the use of my legs and have serious problem with a lesion which means from the waist down I out of it.

I get £6,300 to live on believe it or not thats to high so I must pay full rent and council tax which means I live on £1,400 a year.

What has Labour done for me and the other 10 million disabled people, well sod all.

I think and I hope Labour are out and out for a long time.

It does not take people who work within Labour to scream success in this world does it.

John Gray said...

Hi Robert
Not sure where you got the £50K figure, but I am surprised that you are not pleased with the tax refund for basic tax payers. Not sure either that Labour is going to be able to resolve your own issue?

I have suggest to you on previous occasions that you need to seek welfare rights advice since it would appear you are not getting what you are entitled to, but you haven’t responded for some reaso?

Not that it actually means anything, but most (not all) disabled people I know would not agree with you about Labour.

Please email me via “my profile” with your contact details (which will be kept P&C) since I think us “taffs” need to talk!

John Gray said...

thanks Tom
Yes the government should talk (and listern?) to the unions and Party activists more.