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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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.