Cameron announces another squeeze on welfare

PM says he will look again at abolishing housing benefit for the under-25s.

David Cameron's appearance on The Andrew Marr Show this morning was proof that his political woes have not dented his supreme confidence. The PM boasted that he was on his "fourth leader of the Labour Party" (only if one includes Harriet Harman) and revealed that he had told Boris Johnson: "once you've done your job as London Mayor, don't think your job in politics is over." Boris, one suspects, rather agrees.

Cameron offered a preview of the message that will dominate the Conservative conference: we are facing up to the deficit, which Labour has "nothing to say about". He boasted that the government had reduced the deficit by a quarter since entering office and had created a million new private sector jobs. The reality isn't so positive. The deficit has fallen but, owing to the recession, borrowing so far this year is 22% higher than in the same period last year and the government is expected to miss its deficit target for 2012 by as much as £30bn. Private sector employment has risen by a million but 196,000 of these jobs were reclassified from the public sector and, after falling in recent months, unemployment is expected to rise next year.

Elsewhere, after already announcing £18bn of welfare cuts, Cameron signalled that the government was coming back for more. He suggested that he would look again at abolishing housing benefit for the under-25s and at reducing working age welfare more generally (universal benefits for the elderly are, for now, safe). But he vowed that these measures would be combined with plans to raise more from the rich. George Osborne has ruled out the introduction of a "mansion tax" and higher council tax bands, but Cameron insisted he would find other ways of ensuring the rich pay their "fair share". "We will always be fair and be seen to be fair," he declared, a test that the decision to abolish the 50p tax rate clearly failed. If he is to secure Liberal Democrat agreement for further welfare cuts, he will need to offer something more than another "crackdown" on tax avoidance (making the rich pay taxes they're meant to be paying anyway, is not the same as raising taxes on the rich).

Economic recovery remains the precondition for Cameron's political recovery and, asked if he saw "green shoots", the PM replied that he was not "a forecaster". But even if the economy returns to growth this quarter, the problem for Cameron remains that most people will still be getting poorer. A freeze in council tax and a cap on train fare rises of 1% above inflation will do little to ease the pain.

David Cameron arrives in Birmingham with his wife Samantha Cameron for the Conservative conference. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

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