The Tories' shameful new ad campaign against "the scroungers"

New ad in marginal seats contrasts "hardworking families" with those "who won't work".

 

The Tories' new ad campaign (see above) is the party's most shameless attempt yet to turn "the strivers" against "the scroungers". The online ad will run in the 60 Conservative marginals where, as Labour has highlighted, the number of families receiving working tax credits is greater than the MP's majority. Since tax credits, like other working-age benefits, will only be increased by 1 per cent for the next three years (below the rate of inflation), Labour has accused the government of imposing a "strivers' tax". Sixty per cent of the real-terms cut to benefits will fall on working households and, according to the Institute for Fiscal Studies (IFS), the average one earner couple will be £534 a year worse off by 2015.

The Conservatives' response is the demagogic ad above, which asks, "Who do you think this government should be giving more support to? Hard-working families or people who won't work?", and includes an image of a "scrounger" with his feet up at home. The "support" mentioned by the ad is a reference to the planned increase in the personal allowance, which will rise by £1,335 to £9,440 from next April, benefiting basic rate taxpayers by up to £267.

But there are two reasons why the ad might prove less successful than the Tories hope. The first is that, as the IFS has confirmed, the average family will lose more from the cuts to tax credits and other benefits than it gains from the increase in the personal allowance. The second is that not all voters will accept the caricature of the unemployed presented by the ad. The majority of those without a job are desperately trying to find work (with little support from the government) and, in most cases, will have been employed and paid taxes for years before the recession. The number who choose benefits as a lifestyle is far smaller than ministers imagine.

For these reasons, among others, polls show that fewer voters than expected support Osborne's benefit cuts. Most notably, a MORI poll published on Thursday found that 69 per cent believe benefits should rise in line with inflation or more.

Chancellor and Conservative chief election strategist George Osborne. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The 5 things the Tories aren't telling you about their manifesto

Turns out the NHS is something you really have to pay for after all. 

When Theresa May launched the Conservative 2017 manifesto, she borrowed the most popular policies from across the political spectrum. Some anti-immigrant rhetoric? Some strong action on rip-off energy firms? The message is clear - you can have it all if you vote Tory.

But can you? The respected thinktank the Institute for Fiscal Studies has now been through the manifesto with a fine tooth comb, and it turns out there are some things the Tory manifesto just doesn't mention...

1. How budgeting works

They say: "a balanced budget by the middle of the next decade"

What they don't say: The Conservatives don't talk very much about new taxes or spending commitments in the manifesto. But the IFS argues that balancing the budget "would likely require more spending cuts or tax rises even beyond the end of the next parliament."

2. How this isn't the end of austerity

They say: "We will always be guided by what matters to the ordinary, working families of this nation."

What they don't say: The manifesto does not backtrack on existing planned cuts to working-age welfare benefits. According to the IFS, these cuts will "reduce the incomes of the lowest income working age households significantly – and by more than the cuts seen since 2010".

3. Why some policies don't make a difference

They say: "The Triple Lock has worked: it is now time to set pensions on an even course."

What they don't say: The argument behind scrapping the "triple lock" on pensions is that it provides an unneccessarily generous subsidy to pensioners (including superbly wealthy ones) at the expense of the taxpayer.

However, the IFS found that the Conservatives' proposed solution - a "double lock" which rises with earnings or inflation - will cost the taxpayer just as much over the coming Parliament. After all, Brexit has caused a drop in the value of sterling, which is now causing price inflation...

4. That healthcare can't be done cheap

They say: "The next Conservative government will give the NHS the resources it needs."

What they don't say: The £8bn more promised for the NHS over the next five years is a continuation of underinvestment in the NHS. The IFS says: "Conservative plans for NHS spending look very tight indeed and may well be undeliverable."

5. Cutting immigration costs us

They say: "We will therefore establish an immigration policy that allows us to reduce and control the number of people who come to Britain from the European Union, while still allowing us to attract the skilled workers our economy needs." 

What they don't say: The Office for Budget Responsibility has already calculated that lower immigration as a result of the Brexit vote could reduce tax revenues by £6bn a year in four years' time. The IFS calculates that getting net immigration down to the tens of thousands, as the Tories pledge, could double that loss.

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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