What Miliband's Sweden trip told us about Labour's tax policy

The Labour leader's commitment to "fairer", rather than "higher" taxes, suggests the party will not seek to significantly increase the overall tax burden.

While David Cameron visited India, Ed Miliband used the recess to make a pilgrimage to social democratic Europe. Accompanied by shadow foreign secretary Douglas Alexander and his chief consigliere Stewart Wood, Miliband held meetings with Denmark's Social Democrat prime minister Helle Thorning-Schmidt (who is married to Neil Kinnock's son, Stephen) and the leaders of Labour's Dutch and Swedish sister parties. 

Having stated that greater income equality should be an "explicit goal" of a Labour government, Miliband believes that the UK has much to learn from Sweden and Denmark, the most equal countries in the developed world. He has expressed particular admiration for Sweden's system of universal childcare, the policy credited with enabling its impressive levels of female employment. More than 80 per cent of Swedish mothers work, compared with just 67 per cent in the UK. In a nod to this achievement, Miliband tweeted during his visit: "Just arriving at Swedish Parliament building, passing two Swedish fathers with pushchairs. Scandinavian scene."

But one thing the Labour leader doesn't think we should import from the Nordic countries are their tax rates. In an interview with Bloomberg (which is worth reading in full), he said: 

There are some lessons you can learn, and some things that are different. They’ve always had a tradition of significantly higher tax and spending, which we don’t have in Britain and aren’t going to have in Britain. We’ve said that we want tax cuts for low and middle income families. That’s a sign of a fairer tax system; it’s not about higher taxes.

Miliband's words suggest that while a Labour government would increase taxes on the wealthy (as well as proposing a mansion tax, the party is considering reintroducing the 50p rate), it would not significantly increase the overall tax burden. Rather than traditional tax and spend, Miliband will look to predistributive measures such as the living wage, curbs on predatory energy and rail companies and universal childcare to combat inequality.

But the question he will need to answer is whether it is possible to fund the party's priorities -  jobs, housing, social care and childcare - without also raising taxes on middle and lower earners. If Labour goes into the 2015 election promising only to make the rich pay more, the Tories will be quick to dust down their "tax bombshell" posters. 

Ed Miliband and Swedish Social Democratic leader Stefan Lofven, visit the Royal Institute of Technology in Stockholm, Sweden. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.