Why Miliband’s tax move is good news for the Lib Dems

The Labour leader's speech has reminded voters of two distinctive and popular Lib Dem policies: increasing the personal allowance and introducing a mansion tax.

Attempting to predict the issues that are likely to feature in a future general election is as foolhardy as it is difficult. However great the plans of those competing, however well honed their message calendars, the one thing we all know for certain is that events come along like storms in the desert and change the political landscape before our eyes.

But we speculate anyway, and occasionally we get it right. Probably the surest prediction we can make about the issues likely to be at play in the 2015 general election is that tax policy will feature heavily. Ed Miliband’s speech yesterday makes that as close to a certainty as possible.
 
The official Liberal Democrat response to Miliband’s speech was dismissive of his overall proposals: the Liberal Democrats in government have reduced the income tax paid by those on the lowest incomes by more in three years than Labour did in thirteen.
 
And the analysis of the speech by the Institute for Fiscal Studies supported the party’s assertion that the Lib Dem policy of raising the threshold at which people begin to pay income tax is a less complex and more effective way of helping the low paid than re-introducing the 10p rate.
 
Yet despite criticising the content, Liberal Democrats will be secretly rather happy with the Labour leader’s speech, for two reasons.
 
First, it shifts the political debate to the area where the Lib Dems are at their strongest: tax policy. For whatever else the party has done in government, it is the implementation of a £10,000 tax-free allowance that is cutting through the fog and being recognised by voters as a distinctive achievement.
 
In the run-up to the next general election, Liberal Democrats will want to talk of little else. Raising the threshold further – to the level of the average earnings of those on the national minimum wage – is already party policy. The party reasons that the combined message of having delivered the £10,000 threshold and seeking to go further in the next parliament is a very strong one indeed.
 
The second reason Liberal Democrats will be pleased with the speech is Miliband’s embrace of a mansion tax. You might think that the party would be annoyed by Labour’s blatant theft of one of its key policies, but actually the reverse is true.
 
The mansion tax is embedded in the minds of the public as a Lib Dem policy. It is unlikely that a random conversion to the merits of the idea will convince voters that if they want a mansion tax they should vote Labour. So by adopting the policy Miliband’s main achievement is to remind voters of the mansion tax, and to increase its importance in the political debate over taxation. Why would Liberal Democrats not welcome such a boost for one of the party’s most distinctive policies?
 
Labour's adoption of the policy also helps when it comes to negotiations in the event of another hung parliament, particularly if (as looks distinctly possible) the arithmetic allows for an arrangement between the Liberal Democrats and either Labour or the Tories. Most party members will not welcome Miliband’s change of heart because it is more likely to lead to a Labour-Lib Dem government. Contrary to popular belief, only a small number of party members would actively prefer that option.
 
Most Liberal Democrats would prefer to enter into an arrangement with whichever party agrees to implement more Lib Dem policies. And just as Labour’s warmer feelings towards electoral reform strengthened the Lib Dem hand in 2010 sufficiently to force the Tories into agreeing a referendum on the alternative vote, so the party’s embrace of a mansion tax makes it more likely that the policy will be implemented if Liberal Democrats end up in government, be it with Labour or the Tories.
 
Whether Miliband’s speech does Labour any good in the long-term remains to be seen, but Liberal Democrats should welcome it: there is every chance it will help Clegg’s party even more.
 
Nick Thornsby is a Liberal Democrat member and activist. His own blog can be found here
Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable during a visit to the Ricardo Engine Assembly plant on September 24, 2012 in Shoreham-by-Sea. Photograph: Getty Images.
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If the left leaves it to David Cameron, we'll have Brexit for sure

Only an upbeat, leftwing case can keep Britain in the European Union.

After months flapping and hesitation, and with much of the reporting and detail so dull that it has barely penetrated the consciousness of even those who speak the language of ‘directives’ and treaty provisions, the EU referendum is upon us. With David Cameron signalling concrete outcomes for negotiations, we seem to be set for June, whatever the protests from opposition parties about the date being too close to local and national elections.  

Cameron’s deal, whose most substantive element consists of denying in-work benefits to European citizens, exemplifies the kind of debate that Conservative strategists want to create: a tedious, labyrinthine parochialism, blending the EU’s procedural dullness with an unquestioned mythology of the little Englander. Try actually reading the various letters, let alone the draft decisions, that Cameron extracted from Donald Tusk, and the agreement turns to putty in your head. But in summary, what Cameron is negotiating is designed to keep the EU debate as an in-house affair within the right, to continue and formalise the framing of the debate as between two strains of anti-migrant sentiment, both of them backed by big business.

The deal may be reactionary, but it is also mediocre in its scope and impact. The worries that many of us had in the leftwing pro-In camp, that Cameron’s deal would push back freedom of movement and working and environmental protections so far that we would be unable to mobilise for continued membership of the EU, can now be put to bed. Quite the opposite of allowing Cameron's narrative to demoralise us, the left must now seize an opportunity to put imagination and ideas back at the heart of the referendum debate.

The British political landscape in which that debate will play out is a deceptively volatile environment. Party allegiance is at a nearly all time low. Inequality is growing, and so is the gap between attitudes. The backbone of the UKIP vote – and much of the Out vote – will come from a demographic that, sometimes impoverished by the legacy of Thatcherite economic policy, sees itself as left behind by migration and change. On top of the class war, there is a kind of culture war underway in today’s Britain: on one side those who see LGBT rights, open borders and internationalism as the future; on the other side, those who are scared of the future. About the only thing these groups have in common with one another is their anti-establishment instincts, their total disdain and mistrust of politics as usual.

The only political movement to have broken through the fog of cynicism and disillusionment in British politics has come from the left. Jeremy Corbyn’s rise to the leadership of the Labour has unleashed something new - and while large parts of the press, and some Labour backbenchers, have portrayed this rise as a crusade of the “croissant eating” metropolitan elite, the reality is very different. The rise of the new Labour left has given voice to a renewed socialist and working class politics; its explicitly radical, outsider approach has given it traction across the social divides – among the young looking for a future, and among Labour’s old base. 

A politics of hope – however vague that term might sound – is the only real answer to the populist Euroscepticism that the Out campaign will seek to embody. Radical politics, that proposes an alternative narrative to the scapegoating of migrants, has to find voice in the course of this referendum campaign: put simply, we need to persuade a minimum wage worker that they have more in common with a fellow Polish migrant worker than they do with their employer; we need to persuade someone on a social housing waiting list should blame the privatisation of the housing market, not other homeless families. Fundamentally, the real debate to be had is about who the public blames for social injustice: that is a question which only the left can satisfactorily answer.

The outsider-led volatility of British politics gives the EU referendum a special kind of unpredictability. For voters who have lost faith in the political establishment – and who often have little materially to lose from Brexit – the opportunity to deliver a blow to David Cameron this summer will be tempting. The almost consciously boring, business-dominated Britain Stronger In Europe campaign makes a perfect target for disenfranchised public sentiment, its campaigning style less informed by a metropolitan elite than by the landed gentry. Its main weapons – fear, danger and uncertainty – will work on some parts of the electorate, but will backfire on others, much as the Better Together campaign did in the Scottish referendum.

Last night, Another Europe is Possible held a launch meeting of about a hundred people in central London - with the backing of dozens of MPs, campaigners and academics across the country. It will aim to provide a radical, left wing voice to keep Britain in the EU.

If Britain votes to leave the EU in June, it will give the Right a mandate for a renewed set of attacks on workers’ rights, environmental protections, migrants and freedom of movement. But without an injection of idealism and radicalism,  an In vote will be a mandate for the status quo - at home and in Brussels. In order to seize the real potential of the referendum, the left has to approach the campaign with big ideas and demands. And we have to mobilise.