Voters back Labour's economic policies -- but don't trust Labour

Poll shows that public supports measures championed by Ed Balls, but still has more faith in Tory ec

If we didn't know it already, it has been confirmed again: George Osborne's decision to scrap the top rate of tax in tomorrow's Budget is going to be a very, very hard sell.

Today's Guardian/ICM poll reinforces the picture shown by every other poll on the subject -- voters back the 50p tax. It found that 67 per cent of voters want to retain the top rate, which applies to people earning over £150,000 a year. Particularly noteworthy is the strong support the 50p rate found among Conservative voters, with 65 per cent backing it. This is significantly more than the 45 per cent of Tory voters who expressed support for the top tax rate in Sunday's YouGov poll.

The line from the Treasury has been that despite the scrapping of the 50p tax rate (if it goes ahead), the Budget will make the rich pay. And ministers will be hoping the public believe them, because the overwhelming message from this poll is that voters want to hammer the rich. A total of 62 per cent said they would like to see new property taxes, such as the mansion tax on properties worth more than £1m. The policy, touted by Liberal Democrats, is not expected to be included in tomorrow's Budget.

The poll presents a mixed picture for Labour. The party can take heart from the fact that on the detail of policy, the public is behind them. Just 19 per cent of voters supported the Liberal Democrats' top priority of raising the personal allowance, compared with 23 per cent who support cuts to fuel duty and 30 per cent who back a VAT reduction, both policies championed by the shadow chancellor Ed Balls. Retaining the top rate of tax is another Labour policy with strong public support.

Even the broader aim of austerity is losing public support. Just nine per cent of respondents agreed with the statement that Osborne should "keep any extra money in order to pay off the deficit", while 19 per cent said that the single best thing he could do would be to relax his plans for spending and benefit cuts.

Yet this does not translate into support for Labour. The Tories regained a lead, with a top-line figure of 39 per cent (up three points), compared with Labour on 36 (down one) -- although it is worth noting that this is within the margin of error. Not only that, but despite Labour policies being in line with public opinion, the government retains a strong lead on economic competence. The poll found that 42 per cent trust Osborne and David Cameron, compared with just 25 per cent who prefer Balls and Ed Miliband -- a 17 point gap.

The Budget presents a serious political challenge for Osborne. It remains to be seen how much it will take for the public to turn away from the coalition.

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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Are the Conservatives getting ready to learn to love the EEA?

You can see the shape of the deal that the right would accept. 

In an early morning address aimed half reassuring the markets and half at salvaging his own legacy, George Osborne set out the government’s stall.

The difficulty was that the two halves were hard to reconcile. Talk of “fixing the roof” and getting Britain’s finances in control, an established part of Treasury setpieces under Osborne, are usually merely wrong. With the prospect of further downgrades in Britain’s credit rating and thus its ability to borrow cheaply, the £1.6 trillion that Britain still owes and the country’s deficit in day-to-day spending, they acquired a fresh layer of black humour. It made for uneasy listening.

But more importantly, it offered further signs of what post-Brexit deal the Conservatives will attempt to strike. Boris Johnson, the frontrunner for the Conservative leadership, set out the deal he wants in his Telegraph column: British access to the single market, free movement of British workers within the European Union but border control for workers from the EU within Britain.

There is no chance of that deal – in fact, reading Johnson’s Telegraph column called to mind the exasperated response that Arsene Wenger, manager of Arsenal and a supporter of a Remain vote, gave upon hearing that one of his players wanted to move to Real Madrid: “It's like you wanting to marry Miss World and she doesn't want you, what can I do about it? I can try to help you, but if she does not want to marry you what can I do?”

But Osborne, who has yet to rule out a bid for the top job and confirmed his intention to serve in the post-Cameron government, hinted at the deal that seems most likely – or, at least, the most optimistic: one that keeps Britain in the single market and therefore protects Britain’s financial services and manufacturing sectors.

For the Conservatives, you can see how such a deal might not prove electorally disastrous – it would allow them to maintain the idea with its own voters that they had voted for greater “sovereignty” while maintaining their easy continental holidays, au pairs and access to the Erasmus scheme.  They might be able to secure a few votes from relieved supporters of Remain who backed the Liberal Democrats or Labour at the last election – but, in any case, you can see how a deal of that kind would be sellable to their coalition of the vote. For Johnson, further disillusionment and anger among the voters of Sunderland, Hull and so on are a price that a Tory government can happily pay – and indeed, has, during both of the Conservatives’ recent long stays in government from 1951 to 1964 and from 1979 to 1997.

It feels unlikely that it will be a price that those Labour voters who backed a Leave vote – or the ethnic and social minorities that may take the blame – can happily pay.  

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.