Why Labour will consign the Bedroom Tax to the dustbin of history

For the vast majority of those affected, there is nowhere smaller to move to, leaving vulnerable people hit with extra costs through no fault of their own.

We Britons are proud of our national characteristics. Others might see them as foibles but we see them as qualities – doughtiness, support of the underdog, keeping a cool head in sticky situations. But our greatest quality is a sense of fair play. That’s the reason why the British people get so angry about the Bedroom Tax.

The Bedroom Tax is cruel and unfair. For those in social housing whom the government thinks have an extra room, it means paying up or moving house. But for the vast majority of those affected, there is nowhere smaller to move to, leaving vulnerable people hit with extra costs through no fault of their own. In my city of Edinburgh, vacant one bedroom flats are attracting over 200 applications each week.  The average family will lose £720 a year.

Families are facing a cost of living crisis. They’ve seen prices raise faster than wages for the last three years. They are on average £1,500 worse off under this government than under the last Labour government. This is something David Cameron and his out of touch ministers just can’t get their heads around. Even worse the Bedroom Tax hits over 400,000 disabled people hard. It's not just Labour politicians or campaigners who don’t like it, housing experts across the board condemn it. The Chief Executive of the National Housing Federation has described the policy as "an unfair, ill-planned disaster that is hurting our poorest families."

So it hurts people, but surely you’d think, at least it will bring in some extra revenue to the Treasury and help bring down this government’s borrowing? Well, you’d be wrong. It’s becoming more and more apparent that the Bedroom Tax could cost more money than it saves. The National Housing Federation have said the savings claimed by the government are "highly questionable", partly because those forced to move to the private rented sector will end up costing more in Housing Benefit. Housing Associations say that tens of millions are likely to be lost through the build up of arrears. And the National Audit Office have said that the government’s costing does not take account of the full scale of potential impacts and does not include the additional costs faced by local authorities.

Ed Miliband is crystal clear. The next Labour government will repeal the unfair and cruel Bedroom Tax. So how can this be funded? We need to do this by following our principles – a One Nation approach. David Cameron has cut tax for those who earn over £150,000 a year while raising it for everyone else. A classic example of him standing up for the wrong people.

We’ve been clear that we can’t borrow more to pay for social security changes. And we’ll take tough choices where necessary, including cutting Winter Fuel Payments for the wealthiest pensioners, and not reversing the cuts to child benefit for those on the highest incomes. But we’ll fund this change by getting rid of George Osborne’s tax loopholes, including the extraordinary tax cut for hedge funds announced in the 2013 Budget. We will also reverse his shares for rights schemem, which has been rejected by businesses and has, according to the Office for Budget Responsibility, opened up a tax loophole of up to £1bn. And we’ll tackle tax scams in the construction industry. These changes will fully fund the cost of repealing the Bedroom Tax.

This is about taking a One Nation approach to deliver and run an economy that works in the interests of all the people, not just a narrow minority.
The Bedroom Tax is cruel, unjust, uneconomical and offends our sense of natural justice. The next Labour government will consign it to the dustbin of history.

Sheila Gilmore is Labour MP for Edinburgh East

Demonstrators hold placards as they gather to protest against the bedroom tax outside the High Court. Photograph: Getty Images.

Sheila Gilmore is Labour MP for Edinburgh East

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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