Osborne's council tax freeze is an old announcement

The Chancellor promised to freeze council tax for two years in his 2008 conference speech.

You could be forgiven for thinking that George Osborne has pulled a rabbit out of a hat with his pledge to freeze council tax for a second year running. Indeed, most of the papers lead on the story this morning and treat it as a new announcement. "Tories find £805m for council tax bill freeze," says the Times, adding that Osborne, who will address the Conservative conference today, has offered "comfort" amid the "austerity drive".

But the truth is that this is merely a restatement of existing policy. Osborne first promised a two-year council tax freeze in his speech to the 2008 Conservative conference. "I can tell you today that the next Conservative Government will freeze your Council Tax for at least two years," he said.

The policy went on to feature in the Tories' 2010 election manifesto and the coalition agreement included a pledge to "freeze council tax in England for at least one year", and to "seek to freeze it for a further year."

With his growth strategy under attack from Tory backbenchers, it's no surprise that Osborne is talking up this measure. But it is indicative of the weakness of his plan that, with growth stagnant (the economy has grown by just 0.2 per cent in the last nine months), the best he can offer is a re-announced £805m council tax freeze. Families paying an extra £450 a year in VAT (owing to Osborne's decision to raise the tax to a record high of 20 per cent) will gain just £72 from the measure.

Were Osborne truly determined to stimulate growth, he would have announced an emergency tax cut such as a temporary reduction in VAT (as advocated by Ed Balls). A VAT cut would boost consumer spending, lower inflation, protect retail jobs and increase real wages. When Alistair Darling reduced VAT to 15 per cent during the financial crisis, consumers spent £9bn more than they would otherwise have done. A VAT cut today would be a similarly effective fiscal stimulus. As Boris Johnson wisely observed in his Telegraph column in July, "[I]f we were to cut taxes now, it might be best to start with VAT to get people shopping again." Osborne's decision to raise VAT (a measure he described as "permanent") by 2.5 per cent to an all-time high of 20 per cent automatically knocked 0.3 per cent off annual growth (OBR figures).

A council tax freeze will do little to stimulate growth and little to relieve families facing the biggest fall in living standards since the 1920s. We'll get a better idea of Osborne's plan when he addresses the Tories at 11:20am today (we'll be live blogging his speech on The Staggers). But so far, all the signs are that he will offer little to combat the growth crisis facing Britain.

George Eaton is political editor of the New Statesman.

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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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