What Cameron and Clegg could learn from Churchill and Lloyd George

The People's Budget of 1909 introduced an array of unprecedented measures to tackle poverty and inequality. Its stated ambition was to be "a great step towards that good time, when poverty, and the wretchedness and human degradation which always follows in its camp, will be as remote to the people of this country as the wolves which once infested its forests". Among the radical policy measures harnessed to achieve this ambitious goal were a land tax and an increase to inheritance tax. The People's Budget had its most staunch champions in David Lloyd George and Churchill, known to their contemporaries as the "Terrible Twins".

The Budget to be proposed this Wednesday by the government under the leadership of David Cameron and Nick Clegg is not going to have comparable ambitions. The series of vitriolic attacks on the idea of a "mansion tax" is a good indicator that taxes on wealth would not meet with much enthusiasm in Westminster in the current climate. However, while remaining fiscally "neutral", this Budget is likely to have far reaching ideological repercussions. The two central proposals of the coalition partners: the Tory abolition of the 50p rate of income tax and the Lib Dem move towards the £10,000 income tax threshold -- if implemented -- have the potential to drive a wedge between the rich and the poor.

First, take the Tory idea of scrapping the 50p rate. The debate over the fiscal benefit of keeping the 50 per cent tax rate continues; politically, the die has been cast. This move is controversial -- as the Guardian/ICM poll reveals -- two thirds of voters are in favour of maintaining the 50p tax rate. Indeed, in terms of people's perceptions of fairness, it is relatively easy to see why lowering the income tax for the richest 1 per cent of earners who get at least 6 times the national median income, might be seen as exacerbating social inequalities. It might not be equally obvious why this should be the case with a policy once considered to be "political gold": the Lib Dem proposal to raise the level at which people start paying income tax to £10,000.

Scrutiny reveals that not all that glitters is gold. The Institute for Fiscal Studies recently showed that the £10,000 threshold for income tax is likely to benefit the richest households most, while leaving intact the plight of those who earn so very little that they don't even qualify to pay income tax. Even more problematically, it is also feared that this move could make a number of middle-income families lose child benefit and exacerbate the already dire financial situation of the "squeezed middle-class". What is particularly interesting in the context of this argument concerned with the impact of the Budget measures on the levels of inequality and the perception of fairness is that the proposal to lift a group of people beyond income tax will result in the stigmatisation of the poor as "undeserving".

There would be a big difference, on this proposal, between anyone earning £10,000 or less, who would pay no income tax at all, and those on middle incomes, who would get the first £10,000 they earn tax free. As Clegg himself observed once, the latter belong to a group of people "whose incomes are too high to qualify for welfare benefits, but too low to provide any real financial security". They are the "ordinary, hardworking people"; and they would be likely to hold in deep contempt those exempt from paying income tax altogether, and yet eligible to receive benefits -- that is, ordinary, often hardworking, but, in the opinion of middle Britain, "undeserving" people.

The reason is plain. The success of William Beveridge's legacy rests on the ideas, first, of linking together the notions of citizenship and welfare and, second, of using taxation as a bridge between citizens and the state. Contribution and entitlement are inexorably bound together, in the same way that citizens are bound to the state through taxation. What is at stake here is the sense of collective responsibility and identity. The proposal to exempt a group of people from their contractual obligation with the state is likely to have far reaching consequences for how these people are perceived by the rest of society. Lifting them out of the income tax net will result in a politics of us and them -- we are not all in it together since only some of us pay, since only some of us receive benefits. There is a better way of helping those who desperately need it: make them less poor by enforcing the living wage regulation, and make them more "deserving" by allowing them to exercise their citizenship responsibilities and requiring them to pay a very low marginal taxation rate on the first £10,000.

In the lead up to Budget day, the government of a nation eviscerated by inequalities -- where 40 per cent of all the wealth is owned by 5 per cent of the population and 70 per cent of approximately 60 million acres of land owned by less than 1 per cent of the population -- should not exacerbate the perception of unfairness. Needless to say, the most effective way of tackling these perceptions would be to change the reality. In order to tackle inequality in a serious way, the coalition government need a set of policies as radical as those introduced in 1909 by the government under Lloyd George and Winston Churchill when they put forward a proposal for a land value tax. Of course, the Terrible Twins' Bill was never implemented; it was opposed by the House of Lords as "a menace to property and a Socialistic spirit". Yet, for a short time it carried the promise of a Budget truly preoccupied with fighting inequalities. Sadly, if all goes according to plan and the two main ideas of the current coalition partners are implemented -- unlike the People's Budget of 1909 -- the 2012 Budget is likely to be commemorated as the Budget of Two Nations "between whom there is no intercourse and no sympathy [...] as if they were dwellers in different zones, or inhabitants of different planets: the rich and the poor."

Patricia Kaszynska is senior researcher and project manager at ResPublica

 

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Rising crime and fewer police show the most damaging impacts of austerity

We need to protect those who protect us.

Today’s revelation that police-recorded crime has risen by 10 per cent across England and Wales shows one of the most damaging impacts of austerity. Behind the cold figures are countless stories of personal misery; 723 homicides, 466,018 crimes with violence resulting in injury, and 205,869 domestic burglaries to take just a few examples.

It is crucial that politicians of all parties seek to address this rising level of violence and offer solutions to halt the increase in violent crime. I challenge any Tory to defend the idea that their constituents are best served by a continued squeeze on police budgets, when the number of officers is already at the lowest level for more than 30 years.

This week saw the launch Chris Bryant's Protect The Protectors Private Member’s Bill, which aims to secure greater protections for emergency service workers. It carries on where my attempts in the last parliament left off, and could not come at a more important time. Cuts to the number of police officers on our streets have not only left our communities less safe, but officers themselves are now more vulnerable as well.

As an MP I work closely with the local neighbourhood policing teams in my constituency of Halifax. There is some outstanding work going on to address the underlying causes of crime, to tackle antisocial behaviour, and to build trust and engagement across communities. I am always amazed that neighbourhood police officers seem to know the name of every kid in their patch. However cuts to West Yorkshire Police, which have totalled more than £160m since 2010, have meant that the number of neighbourhood officers in my district has been cut by half in the last year, as the budget squeeze continues and more resources are drawn into counter-terrorism and other specialisms .

Overall, West Yorkshire Police have seen a loss of around 1,200 officers. West Yorkshire Police Federation chairman Nick Smart is clear about the result: "To say it’s had no effect on frontline policing is just a nonsense.” Yet for years the Conservatives have argued just this, with the Prime Minister recently telling MPs that crime was at a record low, and ministers frequently arguing that the changing nature of crime means that the number of officers is a poor measure of police effectiveness. These figures today completely debunk that myth.

Constituents are also increasingly coming to me with concerns that crimes are not investigated once they are reported. Where the police simply do not have the resources to follow-up and attend or investigate crimes, communities lose faith and the criminals grow in confidence.

A frequently overlooked part of this discussion is that the demands on police have increased hugely, often in some unexpected ways. A clear example of this is that cuts in our mental health services have resulted in police officers having to deal with mental health issues in the custody suite. While on shift with the police last year, I saw how an average night included a series of people detained under the Mental Health Act. Due to a lack of specialist beds, vulnerable patients were held in a police cell, or even in the back of a police car, for their own safety. We should all be concerned that the police are becoming a catch-all for the state’s failures.

While the politically charged campaign to restore police numbers is ongoing, Protect The Protectors is seeking to build cross-party support for measures that would offer greater protections to officers immediately. In February, the Police Federation of England and Wales released the results of its latest welfare survey data which suggest that there were more than two million unarmed physical assaults on officers over a 12-month period, and a further 302,842 assaults using a deadly weapon.

This is partly due to an increase in single crewing, which sees officers sent out on their own into often hostile circumstances. Morale in the police has suffered hugely in recent years and almost every front-line officer will be able to recall a time when they were recently assaulted.

If we want to tackle this undeniable rise in violent crime, then a large part of the solution is protecting those who protect us; strengthening the law to keep them from harm where possible, restoring morale by removing the pay cap, and most importantly, increasing their numbers.

Holly Lynch is the MP for Halifax. The Protect the Protectors bill will get its second reading on the Friday 20th October. 

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