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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No, IDS, welfare isn't a path to wealth. Quite the opposite, in fact

Far from being a lifestyle choice, welfare is all too often a struggle for survival.

Iain Duncan Smith really is the gift that keeps on giving. You get one bile-filled giftbag of small-minded, hypocritical nastiness and, just when you think it has no more pain to inflict, off comes another ghastly layer of wrapping paper and out oozes some more. He is a game of Pass the Parcel for people who hate humanity.

For reasons beyond current understanding, the Conservative party not only let him have his own department but set him loose on a stage at their conference, despite the fact that there was both a microphone and an audience and that people might hear and report on what he was going to say. It’s almost like they don’t care that the man in charge of the benefits system displays a fundamental - and, dare I say, deliberate - misunderstanding of what that system is for.

IDS took to the stage to tell the disabled people of Britain - or as he likes to think of us, the not “normal” people of Britain -  “We won’t lift you out of poverty by simply transferring taxpayers’ money to you. With our help, you’ll work your way out of poverty.” It really is fascinating that he was allowed to make such an important speech on Opposite Day.

Iain Duncan Smith is a man possessed by the concept of work. That’s why he put in so many hours and Universal Credit was such a roaring success. Work, when available and suitable and accessible, is a wonderful thing, but for those unable to access it, the welfare system is a crucial safety net that keeps them from becoming totally impoverished.

Benefits absolutely should be the route out of poverty. They are the essential buffer between people and penury. Iain Duncan Smith speaks as though there is a weekly rollover on them, building and building until claimants can skip into the kind of mansion he lives in. They are not that. They are a small stipend to keep body and soul together.

Benefits shouldn’t be a route to wealth and DWP cuts have ensured that, but the notion that we should leave people in poverty astounds me. The people who rely on benefits don’t see it as a quick buck, an easy income. We cannot be the kind of society who is content to leave people destitute because they are unable to work, through long-term illness or short-term job-seeking. Without benefits, people are literally starving. People don’t go to food banks because Waitrose are out of asparagus. They go because the government has snipped away at their benefits until they have become too poor to feed themselves.

The utter hypocrisy of telling disabled people to work themselves out of poverty while cutting Access to Work is so audacious as to be almost impressive. IDS suggests that suitable jobs for disabled workers are constantly popping out of the ground like daisies, despite the fact that his own government closed 36 Remploy factories. If he wants people to work their way out of poverty, he has make it very easy to find that work.

His speech was riddled with odious little snippets digging at those who rely on his department. No one is “simply transferring taxpayers’ money” to claimants, as though every Friday he sits down with his card reader to do some online banking, sneaking into people’s accounts and spiriting their cash away to the scrounging masses. Anyone who has come within ten feet of claiming benefits knows it is far from a simple process.

He is incredulous that if a doctor says you are too sick to work, you get signed off work, as though doctors are untrained apes that somehow gained access to a pen. This is only the latest absurd episode in DWP’s ongoing deep mistrust of the medical profession, whose knowledge of their own patients is often ignored in favour of a brief assessment by an outside agency. IDS implies it is yes-no question that GPs ask; you’re either well enough to work or signed off indefinitely to leech from the state. This is simply not true. GPs can recommend their patients for differing approaches for remaining in work, be it a phased return or adapted circumstances and they do tend to have the advantage over the DWP’s agency of having actually met their patient before.

I have read enough stories of the callous ineptitude of sanctions and cuts starving the people we are meant to be protecting. A robust welfare system is the sign of a society that cares for those in need. We need to provide accessible, suitable jobs for those who can work and accessible, suitable benefits for those who can’t. That truly would be a gift that keeps giving.