The warning by the think-tank, the Institute for
Fiscal Studies, that George Osborne is unlikely to meet his target of running a
"budget surplus by the end of the decade" must signal the failure of the Tories`
"long term economic plan" (IFS: Osborne may have to impose more
austerity,09/02/16). This, of course, will never be admitted, and no doubt Tory
backbenchers will be still playing their private, self-congratulatory game of
"word bingo" with the term at future PMQs, but it does not require an economic
genius to predict that their policies of shrinking the state and freezing pay in
the public sector, cutting jobs at HMRC when it is calculated that each tax
inspector brings in to the Treasury approximately ten times their salary, and
refusing to impose fair taxes on the rich, will run into problems.
What we all can predict, however, is that, as
James Moore says, Osborne will use as one of his many excuses the suggestion
that the UK is no longer "in normal times" (Outlook,09/02/16). Some blame will
also, no doubt, be placed on the last Labour government, as will an excuse used
recently by the DfE to explain low numbers being recruited to School Direct,
that the target figures were "purposely over-inflated ...to signal their
ambitions for the policy".
There is a real dilemma here, but as it is
for the Tory party, it gets little publicity. Before the general election, which
they did not expect to win, they promised £8bn of income tax cuts, plus of
course a new "northern powerhouse", which they never intended to fund. They also
have a chancellor, intent on becoming the next leader, who has to show
leadership qualities with his budgets, whilst the outgoing leader wants to prove
his "compassion" with policies like prison reform, which will cost billions, and
which the chancellor will deem unaffordable! PMQs could be interesting in the
next few weeks, as long as Mr Corbyn plays his cards right!
Can we now put the idea of the Tories wanting to
create a "northern powerhouse" to bed? It was clearly an election wheeze which
appealed to a Tory party thinking itself, at best, to be a partner in a
coalition government post-May 2015, when the idea could finally be shelved. The
news that 83% of the government`s "£300m relief fund will go to Tory-run
councils", mostly in the south, is not simply deplorable, but indicative of the
ridiculous bias this administration shows for southern England (Council cuts: PM
accused of buying off MPs,10/02/16).
With none of this extra money designated to
help the "five most deprived councils in the country", all of which
unsurprisingly are in the northern half of England, and with none of the
proposed improvements in transport even off the ground, this ludicrous sham must
stop.
Christopher Smallwood`s argument is seriously weakened
by two significant omissions (The NHS needs more cash. To find it we have to
ditch the prejudice,08/02/16). Firstly, his opening sentence, that there is "no
extra money available", ignores the facts that not only is there, by the
government`s own admission, a tax gap of £34bn, but also that the income tax
structure is far too heavily weighted in favour of the wealthy. Is it not
ridiculous that someone earning just over £40,000 a year pays income tax at the
same rate as someone earning £100,000 more? New tax bands at 45% for those
earning over £100K, 50% over £150K, 55% over £200K, and 60% over £250K would
provide much needed funds for the NHS, and prove popular, simply on the grounds
of fairness. People earning less than £40K pay enough tax already; they should
not have to pay extra in health insurance!
Smallwood also stated that the "fall in defence
spending has come to an end", but this disregards the point that, almost
certainly, the majority of people in this country prefer the NHS to Trident
renewal. The refusal by the government to raise the necessary funds to support
the NHS properly looks remarkably like it is waiting for the situation to
worsen, before announcing yet more privatisation; Smallwood`s article acts as
one of the many harbingers of such events we can expect in the
future.
"Morally indefensible sweetheart tax deal", indeed,
Ms Christie, and even then Osborne tried to mislead us about the amount of
corporate tax Google paid (Why does George Osborne make me so angry? Let me
count the ways,06/02/16). A quarter of the "paltry" £130m related to its share
option scheme! Perhaps economy with the truth is part of the so-called
"long-term plan"?
Christopher Smallwood`s argument is seriously weakened
by two significant omissions (The NHS needs more cash. To find it we have to
ditch the prejudice,08/02/16). Firstly, his opening sentence, that there is "no
extra money available", ignores the facts that not only is there, by the
government`s own admission, a tax gap of £34bn, but also that the income tax
structure is far too heavily weighted in favour of the wealthy. Is it not
ridiculous that someone earning just over £40,000 a year pays income tax at the
same rate as someone earning £100,000 more? New tax bands at 45% for those
earning over £100K, 50% over £150K, 55% over £200K, and 60% over £250K would
provide much needed funds for the NHS, and prove popular, simply on the grounds
of fairness. People earning less than £40K pay enough tax already; they should
not have to pay extra in health insurance!
Smallwood also stated that the "fall in defence
spending has come to an end", but this disregards the point that, almost
certainly, the majority of people in this country prefer the NHS to Trident
renewal. The refusal by the government to raise the necessary funds to support
the NHS properly looks remarkably like it is waiting for the situation to
worsen, before announcing yet more privatisation; Smallwood`s article acts as
one of the many harbingers of such events we can expect in the
future.
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