The Times attacks “worryingly confused” Tory marriage tax plan

Is this a tax cut too far for the Conservatives?

Following three days when National Insurance dominated this economy-laden election campaign, attention now switches to the Tories' marriage tax allowance. Details of the plan have emerged this morning and boil down to this:

  • Four million married couples and those in civil partnerships would qualify for the tax break
  • An eligible couple would be able to transfer £750 in tax allowance from the higher-earning partner to the lower-earning partner
  • The maximum benefit will be £150 a year -- or just under £3 a week
  • The tax break would fall sharply in a marriage where the higher earner is on more than £42,500
  • It will be funded by a tax levied on wholesale lending in the City

The Times, for one, doesn't like it. Here are some choice cuts from this morning's leader:

The Tories propose to recognise marriage in the tax system, paid for by a levy on the banks. This is bad social policy advanced by an arbitrary means.

This is surely no time to be giving money away so that people can just carry on doing what they are already doing, namely being married.

In a long philosophical journey in opposition, the Tories appear to have alighted on moral authoritarianism advanced by economic interventionism. These are the wrong answers.

This policy is worryingly confused. At a time when the main message of the Conservative campaign is that there is no money, it is odd indeed to be offering handouts.

Remember, this is the delivery of a promise made by David Cameron when he was running for the leadership of the party five years ago. For one of the country's most influential -- and broadly politically non-aligned -- newspapers to be so vehemently opposed to a policy so closely associated with the party leader has to be a concern.

Meanwhile, over on the Next Left blog, Sunder Katwala argues that by trying to counter criticism that the tax break would be regressive, the Tories have landed themselves with a confused policy. Katwala notes:

The policy doesn't send a simple "pro-marriage signal" any more.

The core distinction is no longer between the married and the not married.

Instead, the policy now signals that some marriages are valued while others are not.

Some good news for the Conservatives comes in a Harris opinion poll for the Daily Mail. Asking a one-off question, the pollster found that 65 per cent of respondents believe the next government should support marriage by raising tax allowances for married couples, with 35 per cent disagreeing.

But as Anthony Wells of UK Polling Report notes, "It's one of those questions that depend a lot on how it's asked."

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Jon Bernstein, former deputy editor of New Statesman, is a digital strategist and editor. He tweets @Jon_Bernstein. 

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We still have time to change our minds on Brexit

The British people will soon find they have been misled. 

On the radio on 29 March 2017, another "independence day" for rejoicing Brexiteers, former SNP leader Alex Salmond and former Ukip leader Nigel Farage battled hard over the ramifications of Brexit. Here are two people who could be responsible for the break-up of the United Kingdom. Farage said it was a day we were getting our country back.

Yet let alone getting our country back, we could be losing our country. And what is so frustrating is that not only have we always had our country by being part of the European Union, but we have had the best of both worlds.

It is Philip Hammond who said: “We cannot cherry pick, we cannot have our cake and eat it too”. The irony is that we have had our cake and eaten it, too.

We are not in Schengen, we are not in the euro and we make the laws that affect our daily lives in Westminster – not in Europe – be it our taxes, be it our planning laws, be it business rates, be it tax credits, be it benefits or welfare, be it healthcare. We measure our roads in miles because we choose to and we pour our beer in pints because we choose to. We have not been part of any move towards further integration and an EU super-state, let alone the EU army.

Since the formation of the EU, Britain has had the highest cumulative GDP growth of any country in the EU – 62 per cent, compared with Germany at 35 per cent. We have done well out of being part of the EU. What we have embarked on in the form of Brexit is utter folly.

The triggering of Article 50 now is a self-imposed deadline by the Prime Minister for purely political reasons. She wants to fix the two-year process to end by March 2019 well in time to go into the election in 2020, with the negotiations completed.

There is nothing more or less to this timing. People need to wake up to this. Why else would she trigger Article 50 before the French and German elections, when we know Europe’s attention will be elsewhere?

We are going to waste six months of those two years, all because Prime Minister Theresa May hopes the negotiations are complete before her term comes to an end. I can guarantee that the British people will soon become aware of this plot. The Emperor has no clothes.

Reading through the letter that has been delivered to the EU and listening to the Prime Minister’s statement in Parliament today amounted to reading and listening to pure platitudes and, quite frankly, hot air. It recalls the meaningless phrase, "Brexit means Brexit".

What the letter and the statement very clearly outlined is how complex the negotiations are going to be over the next two years. In fact, they admit that it is unlikely that they are going to be able to conclude negotiations within the two-year period set aside.

That is not the only way in which the British people have been misled. The Conservative party manifesto clearly stated that staying in the single market was a priority. Now the Prime Minister has very clearly stated in her Lancaster House speech, and in Parliament on 29 March that we are not going to be staying in the single market.

Had the British people been told this by the Leave campaign, I can guarantee many people would not have voted to leave.

Had British businesses been consulted, British businesses unanimously – small, medium and large – would have said they appreciate and benefit from the single market, the free movement of goods and services, the movement of people, the three million people from the EU that work in the UK, who we need. We have an unemployment rate of under 5 per cent – what would we do without these 3m people?

Furthermore, this country is one of the leaders in the world in financial services, which benefits from being able to operate freely in the European Union and our businesses benefit from that as a result. We benefit from exporting, tariff-free, to every EU country. That is now in jeopardy as well.

The Prime Minister’s letter to the EU talks with bravado about our demands for a fair negotiation, when we in Britain are in the very weakest position to negotiate. We are just one country up against 27 countries, the European Commission and the European Council and the European Parliament. India, the US and the rest of the world do not want us to leave the European Union.

The Prime Minister’s letter of notice already talks of transitional deals beyond the two years. No country, no business and no economy likes uncertainty for such a prolonged period. This letter not just prolongs but accentuates the uncertainty that the UK is going to face in the coming years.

Britain is one of the three largest recipients of inward investment in the world and our economy depends on inward investment. Since the referendum, the pound has fallen 20 per cent. That is a clear signal from the world, saying, "We do not like this uncertainty and we do not like Brexit."

Though the Prime Minister said there is it no turning back, if we come to our senses we will not leave the EU. Article 50 is revocable. At any time from today we can decide we want to stay on.

That is for the benefit of the British economy, for keeping the United Kingdom "United", and for Europe as a whole – let alone the global economy.

Lord Bilimoria is the founder and chairman of Cobra Beer, Chancellor of the University of Birmingham and the founding Chairman of the UK-India Business Council.