The Lib Dems' failure to defend our rights means Labour is now the party of civil liberties

From the lobbying bill to secret courts and legal aid, too often Nick Clegg's party have been the lobby fodder the Tories need to deliver their attacks on our freedoms.

With the Liberal Democrats' ever-weakening claim to be the party of civil liberties, the last seven days are a new low. Just last Tuesday, not a single one of their MPs opposed the party of the government’s draconian Lobbying Bill that muzzles charities and campaigners. Seemingly happy with the chilling effect the proposals will have on civic society’s contribution to our democracy, they trooped through the lobby in support. What’s more, it’s a Lib Dem minister leading on the Bill.

And just 24 hours later, I almost choked on my cornflakes at reports in the Guardian that the Lib Dems will repeal legislation on secret courts. What’s astonishing is that this is an Act of Parliament their MPs voted in favour of, and helped put on the statute books, just five months ago. Having spent 11 months involved in that bill, I was pleased at the stance taken by last year’s Liberal Democrat conference, asking their MPs to support Labour in opposing the worst excesses of the proposals. Unfortunately, the party leadership refused.

Having met many Lib Dem members, I know this issue caused considerable anger, with some resigning in disgust. On secret courts, the Lib Dem leadership suffered one of only a handful of annual conference defeats since 2010. And this is symptomatic of a growing divide between the grassroots and their MPs. Many Lib Dem supporters will see last week’s newspaper reports on secret courts as a stunt to head off another confrontation at their conference. Looking at the issues up for votes at their conference, I doubt whether Lib Dem members, activists or supporters have been fooled.

The Lib Dem leadership desperately spin that they are a moderating influence on Tory excesses. But in areas of justice and the constitution, tumbleweed blows through the party's benches when it comes to areas of policy that should be core to their beliefs. Lib Dem MPs happily supported government changes to individual electoral registration that could see millions of eligible voters losing their vote. They voted to reduce the number of MPs by a figure designed only to benefit the Tories. And they’ve barely made a squeak on the dismantling of access to justice – cuts to legal aid - and the curtailing of judicial review. Their silence on weakening freedom of information through ever more public money in the hands of private companies beyond the scope of the legislation is deafening.

Of course difficult decisions are faced on a day to day basis, as Labour knows well. Getting the balance right between what is in the interests of protecting the public and what upholds the rights of all of our citizens is something on occasions we got wrong. The Lib Dems never missed the chance to moralise on this when Labour was in government, yet have jettisoned any semblance of a truly liberal position in many areas at the first prospect of a ministerial car and grand office. It’s left to Labour to champion legal and constitutional protections our citizens need in a healthy democracy and it’s a shame we couldn’t do this together in Parliament.

The Lib Dems must learn one very big lesson – that the Tories cannot be trusted with civil liberties and our constitution. The Tories have shown themselves a majoritarian party, seeking the eradication of criticism and challenge, curtailing checks and balances and putting themselves beyond the rule of law. Just last week we saw the smear on charities by Chris Grayling. Their idea of democracy is if you’re not with us, you should be muzzled, snuffed out, or put back in your box.

But politics isn't a battle of ideas if you gag those you don’t agree with. This isn’t a democracy Labour believes in – nor, I suspect, Lib Dem members. Labour recognises that we are stronger as a nation through checks and balances that hold to account those in positions of power, including governments and public agencies. Enormous value flows from flourishing campaigns, charities and civic organisations and their mass-membership participating in politics. All of these are crucial to the lifeblood of a modern democracy, not threats.

Of course, I welcome the Lib Dems agreeing with Labour in defending the Human Rights Act, and membership of the European Court of Human Rights. But I’m afraid that on many issues, the mere association with the Tories is enough to tarnish their liberal veneer. They are the lobby fodder the Tories need to deliver their attacks on our constitutional rights. 

And so it falls to Labour to defend our citizen’s rights and stand up to powerful vested interests, be them economic, in the media, or political. Ed Miliband has made it clear that we won’t tolerate abuse by elites, monopolies, or those with concentrated power. To those turning their backs on the Lib Dems on civil liberties issues, this doesn’t leave you without electoral options. On the contrary – under Ed Miliband’s leadership, it’s Labour that can now lay claim to the mantle of defender of our citizens’ rights.

Sadiq Khan is the shadow justice secretary (with special responsibility for constitutional and political reform)

Nick Clegg with Danny Alexander at the Liberal Democrat conference in Glasgow. Photograph: Getty Images.
Sadiq Khan is MP for Tooting, shadow justice secretary and shadow minister for London.
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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.