If Cameron's marriage tax break is his answer, he's asking the wrong question

At a time when millions of people are facing a cost of living crisis we should be helping all families and not just some.

The Tory Party conference offers the chance for the Prime Minister to tell the country how he plans to solve the cost of living crisis. Yet, on the first day, we find out that his flagship policy doesn’t support the vast majority of families in this country struggling to pay the bills. If David Cameron’s so-called marriage tax break is his answer, then the Prime Minister is asking the wrong question.

For millions of people across the country, this announcement will seem perverse at a time of rising prices and falling wages. Two thirds of married couples won’t benefit at all. If both work on more than £10,000 a year, they will not be able to transfer their tax allowance and they won’t get any extra money. David Cameron's flagship policy is not for anyone who is separated, widowed or divorced.

A single mum, bringing up her children, working every available hour to pay the energy bills and provide a hot meal each night for her children will not benefit. The hard-pressed couple on low pay, juggling part-time work and childcare, will not see anything from David Cameron’s announcement. A one-earner family who live on £40,000 a year will gain, but a two-earner couple on £20,000 each won’t. If a man leaves his wife, leaving his children behind and remarrying, he would benefit from this policy, whilst the mother of his children would not.

It’s a policy which is about division and stigma - not the One Nation approach we need. Many parents will think David Cameron is telling them they are second class, not worthy of his support. But they are bringing up children too. We can’t simply forget about or leave behind the millions of parents who may not be married, but love their children and work tirelessly to provide for them.

Even for the few that benefit, they may very well wonder why they receive only £3.85 per week in recognition of the commitment they made to one another, whilst David Cameron gives £1,986 per week to the 13,000 people earning over £1 million pounds with his top rate of tax cut. It’s another policy which reveals David Cameron’s priorities - millionaires and not millions of families.

And this policy is another blow to David Cameron’s already feeble attempts to understand women. Mums have consistently lost out under this government. Child benefit and tax credits, payments that traditionally go to the mother, have all been heavily cut back. For many mums, this has been a real blow, making it harder for them to support their children and taking away independent income. This policy will not solve that problem, as it will usually be paid into their husband’s account. The Tories are taking a lot from the purse and putting a little bit back into the wallet.

Most families are already struggling with the cost of living crisis and the clobbering they have received from this Tory-led government. Energy bills are up and prices have risen faster than wages in 38 out of 39 months of David Cameron being in Downing Street. Families with children have been hardest hit by government policies already - losing £7bn in things like child benefit and tax credits.

At a time when millions of people are facing a cost of living crisis we should be helping all families and not just some. That's what Labour set out this week with plans to freeze energy bills and expand free childcare for working parents.

I am married and the day I walked down the aisle was one of the most important and happiest of my life. But when David Cameron says "Love is love. Commitment is commitment", he doesn’t mean this for everyone. In Cameron’s Britain, some people’s love and commitment - to their partner and to their children - simply don't count.

Rachel Reeves is Shadow Chief Secretary to the Treasury

"David Cameron's flagship policy is not for anyone who is separated, widowed or divorced." Photograph: Getty Images.
Getty
Show Hide image

Everyone's forgotten the one issue that united the Labour party

There was a time when Ed Miliband spoke at Momentum rallies.

To label the row over the EU at Thursday’s Labour leadership hustings "fireworks" would be to endow it with more beauty than it deserves. Owen Smith’s dogged condemnation of John McDonnell’s absence from a Remain rally – only for Corbyn to point out that his absence was for medical reasons – ought to go down as a cringing new low point in the campaign. 

Not so long ago, we were all friends. In the course of the EU referendum, almost all of the protagonists in the current debacle spoke alongside each other and praised one another’s efforts. At a local level, party activists of all stripes joined forces. Two days before polling day, Momentum activists helped organise an impromptu rally. Ed Miliband was the headline speaker, and was cheered on. 

If you take the simple version of the debate, Labour’s schism on the EU appears as an aberration of the usual dynamics of left and right in the party. Labour's left is supposedly cheering a position which avoids advocating what it believes in (Remain), because it would lose votes. Meanwhile, the right claims to be dying in a ditch for its principles - no matter what the consequences for Labour’s support in Leave-voting heartlands.

Smith wants to oppose Brexit, even after the vote, on the basis of using every available procedural mechanism. He would whip MPs against the invocation of Article 50, refuse to implement it in government, and run on a manifesto of staying in the EU. For the die-hard Europhiles on the left – and I count myself among these, having run the Another Europe is Possible campaign during the referendum – there ought to be no contest as to who to support. On a result that is so damaging to people’s lives and so rooted in prejudice, how could we ever accept that there is such a thing as a "final word"? 

And yet, on the basic principles that lie behind a progressive version of EU membership, such as freedom of movement, Smith seems to contradict himself. Right at the outset of the Labour leadership, Smith took to Newsnight to express his view – typical of many politicians moulded in the era of New Labour – that Labour needed to “listen” to the views Leave voters by simply adopting them, regardless of whether or not they were right. There were, he said, “too many” immigrants in some parts of the country. 

Unlike Smith, Corbyn has not made his post-Brexit policy a headline feature of the campaign, and it is less widely understood. But it is clear, via the five "red lines" outlined by John McDonnell at the end of June:

  1. full access to the single market
  2. membership of the European investment bank
  3. access to trading rights for financial services sector
  4. full residency rights for all EU nationals in the UK and all UK nationals in the EU, and
  5. the enshrinement of EU protections for workers. 

Without these five conditions being met, Labour would presumably not support the invocation of Article 50. So if, as seems likely, a Conservative government would never meet these five conditions, would there be any real difference in how a Corbyn leadership would handle the situation? 

The fight over the legacy of the referendum is theatrical at times. The mutual mistrust last week played out on the stage in front of a mass televised audience. Some Corbyn supporters jeered Smith as he made the case for another referendum. Smith accused Corbyn of not even voting for Remain, and wouldn’t let it go. But, deep down, the division is really about a difference of emphasis. 

It speaks to a deeper truth about the future of Britain in Europe. During the referendum, the establishment case for Remain floundered because it refused to make the case that unemployment and declining public services were the result of austerity, not immigrants. Being spearheaded by Conservatives, it couldn’t. It fell to the left to offer the ideological counter attack that was needed – and we failed to reach enough people. 

As a result, what we got was a popular mandate for petty racism and a potentially long-term shift to the right in British politics, endangering a whole raft of workplace and legal protections along the way. Now that it has happened, anyone who really hopes to overcome either Brexit, or the meaning of Brexit, has to address the core attitudes and debates at their root. Then as now, it is only clear left-wing ideas – free from any attempt to triangulate towards anti-migrant sentiment– that can have any hope of success. 

The real dividing lines in Labour are not about the EU. If they were, the Eurosceptic Frank Field would not be backing Smith. For all that it may be convenient to deny it, Europe was once, briefly, the issue that united the Labour Party. One day, the issues at stake in the referendum may do so again – but only if Labour consolidates itself around a strategy for convincing people of ideas, rather than simply reaching for procedural levers.