Last night's Question Time: Mehdi Hasan on the facts

The facts and figures of last night's debate.

Last night I was a panellist on BBC1's Question Time, in Stoke-on-Trent. You can watch it, via the iPlayer, here.

It was my fourth appearance on the BBC's flagship news-and-current-affairs debate show and it is always an amusing experience to be one of the five panellists. I must say that I was quite impressed with the Tory peer and Next boss, Simon Wolfson, who wasn't the swivel-eyed, bash-the-poor, corporate fatcat some on the left might have assumed him to be. However, right-wing recorder and barrister Constance Briscoe - who seemed to think I was a politician! - had firm views on most issues but few facts.

My own approach is to try and always inject facts and figures into these debates, which tend to be distorted by misinformation, ignorance and prejudice. ("How do you know all this?" a bemused David Dimbleby asked me towards the end of the show, in only a semi-serious tone!)

But television isn't the best medium for reeling off lists of statistics or data (which is one of the reasons I left TV to become a print journalist in 2009).

That's why I thought I'd briefly outline some of the facts and figures I didn't have time to provide, or elaborate on, last night.

On the financial transaction tax:

Wolfson claimed that the a financial transactiont tax (FTT), or "Robin Hood tax", would end up funding Brussels and not the UK. Nonsense.

The International Monetary Fund, the European Commission and the Gates Foundation have all released studies showing that unilateral transaction taxes are feasible and raise funds for individual countries (the Robin Hood Tax campaign says a 0.05 per cent tax on transactions could raise £20bn for just the UK alone!).

Here in Britain, we already levy unilateral taxes of this sort: for example, the Treasury imposes a stamp duty of 0.5 per cent on all transactions involving UK shares. This raises £3bn per year.

On Tory funding and the City:

David Cameron has repeatedly accused Labour leader Ed Miliband of being in "the pocket of the unions". Why? Because the trade union movement is the biggest donor to the Labour Party.

Yet, as I pointed out last night, using Cameron's own logic, he and his party are in the pocket of the bankers and financiers. Why? Because the Conservative Party relies on the bankers and financiers for more than half of its funds.

According to research conducted by the Bureau of Investigative Journalism:

Since Mr Cameron assumed the leadership, the Conservative Party has become twice as dependent on City funding: from 25 per cent of its total donations to nearly 51 per cent in 2010.

Guess what? Wolfson and Tory MP Claire Perry had little to say on this subject. Surprise, surprise!

On unemployment benefit:

One audience member raised the issue of compassion towards the unemployed (in reference to the British Social Attitudes survey this week which revealed that more than half of Britons believe unemployment benefits are too high and that they discourage those out of work from finding new jobs). Briscoe employed all sorts of dubious metaphors ("sponge"?) in order to make her point that "we spend far too much time subsidising people who don't want to work" (she couldn't, however, tell me how many people on unemployment benefit "don't want to work").

Yet unemployment is worth less than ever. As my colleague George Eaton has noted (using ONS figures), Jobseeker's Allowance (currently £65.45 a week for a single person aged 25 or over) is is worth just 10.9 per cent of average weekly earnings (£600.90) - compared to 12.2 per cent in 2000, 16.6 per cent in 1985 and 19.2 per cent in 1970.

Then there is the issue of jobs - there aren't many to find! As I said, there are now 5.7 unemployed people for every job vacancy, which is the highest figure on record since October 2009. How do you squeeze five people into one job? And how does slashing JSA create jobs?

On housing benefit:

One audience member raised the issue of unemployed people and housing benefit. But as Shelter's chief executive Campbell Robb has pointed out:

The vast majority of housing benefit claimants are either pensioners, disabled people, those caring for a relative or hardworking people on low incomes, and only 1 in 8 people who receive housing benefit is unemployed.

Those of us on the left, who call ourselves progressives, need to ensure that these points are raised, discussed and circulated, online, on air and in print. The spread of conservatism, and conservative economics, relies on ignorance, not evidence.

Yet, as the most famous conservative of all, Ronald Reagan, once remarked:

Facts are stubborn things.

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

Photo: Getty
Show Hide image

Theresa May's U-Turn may have just traded one problem for another

The problems of the policy have been moved, not eradicated. 

That didn’t take long. Theresa May has U-Turned on her plan to make people personally liable for the costs of social care until they have just £100,000 worth of assets, including property, left.

As the average home is valued at £317,000, in practice, that meant that most property owners would have to remortgage their house in order to pay for the cost of their social care. That upwards of 75 per cent of baby boomers – the largest group in the UK, both in terms of raw numbers and their higher tendency to vote – own their homes made the proposal politically toxic.

(The political pain is more acute when you remember that, on the whole, the properties owned by the elderly are worth more than those owned by the young. Why? Because most first-time buyers purchase small flats and most retirees are in large family homes.)

The proposal would have meant that while people who in old age fall foul of long-term degenerative illnesses like Alzheimers would in practice face an inheritance tax threshold of £100,000, people who die suddenly would face one of £1m, ten times higher than that paid by those requiring longer-term care. Small wonder the proposal was swiftly dubbed a “dementia tax”.

The Conservatives are now proposing “an absolute limit on the amount people have to pay for their care costs”. The actual amount is TBD, and will be the subject of a consultation should the Tories win the election. May went further, laying out the following guarantees:

“We are proposing the right funding model for social care.  We will make sure nobody has to sell their family home to pay for care.  We will make sure there’s an absolute limit on what people need to pay. And you will never have to go below £100,000 of your savings, so you will always have something to pass on to your family.”

There are a couple of problems here. The proposed policy already had a cap of sorts –on the amount you were allowed to have left over from meeting your own care costs, ie, under £100,000. Although the system – effectively an inheritance tax by lottery – displeased practically everyone and spooked elderly voters, it was at least progressive, in that the lottery was paid by people with assets above £100,000.

Under the new proposal, the lottery remains in place – if you die quickly or don’t require expensive social care, you get to keep all your assets, large or small – but the losers are the poorest pensioners. (Put simply, if there is a cap on costs at £25,000, then people with assets below that in value will see them swallowed up, but people with assets above that value will have them protected.)  That is compounded still further if home-owners are allowed to retain their homes.

So it’s still a dementia tax – it’s just a regressive dementia tax.

It also means that the Conservatives have traded going into the election’s final weeks facing accusations that they will force people to sell their own homes for going into the election facing questions over what a “reasonable” cap on care costs is, and you don’t have to be very imaginative to see how that could cause them trouble.

They’ve U-Turned alright, but they may simply have swerved away from one collision into another.  

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.

0800 7318496