Cameron repeats Boris's muddled defence of the super-rich

The top 1% of earners now pay 30% of all income tax because they're earning more. And the poorest still pay the largest overall share.

Boris Johnson has exerted much energy recently defending "the 1%" and their contribution to society in the form of tax. He said in his Margaret Thatcher lecture on Wednesday night: 

Last week I tried to calm people down, by pointing out that the rich paid a much greater share of income tax than they used to.

When Margaret Thatcher came to power in 1979 they faced a top marginal tax rate of 98 per cent, and the top one per cent of earners contributed 11 per cent of the government’s total revenues from income tax. Today, when taxes have been cut substantially, the top one per cent contributes almost 30 per cent of income tax; and indeed the top 0.1 per cent – just 29,000 people – contribute fully 14 per cent of all taxation.

That is an awful lot of schools and roads and hospitals that are being paid for by the super-rich. So why, I asked innocently, are they so despicable in the eyes of all decent British people? Surely they should be hailed like the Stakhanovites of Stalin’s Russia, who half-killed themselves, in the name of the people, by mining record tonnages of coal?

Boris's ideological stridency is often contrasted favourably by conservatives with David Cameron's timidity, so it's striking to see the PM make the same argument in a Q&A with i readers today. In response to a question on why the government cut the top rate of tax while simultaneously reducing benefits for the poorest through measures such as the bedroom tax, he said: 

You mention the cut in the top rate of tax. The fact is that if you carry on with a relatively high top-rate, that makes this country a less attractive place for wealth creators and entrepreneurs to be. If they decide to go elsewhere, that means fewer jobs created, less money for the Treasury, and less money to spend on schools, hospitals and growing our economy. These are all the things we took into account when cutting the top rate. Beyond that particular case, the fact is this: the top 1 per cent of income-taxpayers contribute nearly 30 per cent of all income tax – and those with the highest incomes will contribute more to income tax this year than under any year of the previous government.

Cameron isn't wrong; the top 1% do pay 30% of all income tax and currently pay a higher marginal rate than in any year of New Labour (the 50p rate wasn't introduced until April 2010). But what he doesn't mention is that the 30% stat tells us less about what has happened to the tax system than it does about what has happened to the income system. Over the period in question, the earnings of the rich have risen to previously unimaginable levels. As a recent OECD study showed, the share of income taken by the top 1% of UK earners increased from 7.1% in 1970 to 14.3% in 2005, while the top 0.1% took 5%. Quite simply, the rich are paying more because they're earning more. Is this really cause for us to thank them? If 11 million low and middle earners receive the pay rise they have been denied since 2003, they'll pay more tax too. 

Like Boris, Cameron also doesn't mention the inconvenient truth that the poorest continue to pay more tax than the richest. As the ONS recently found, owing to VAT and other regressive levies, the least well-off households pay 36.6% of their income in tax, while the wealthiest pay 35.5%. 

But even were this not the case, Cameron's argument is still an odd one for him to make. Had it not been for the Lib Dems, the top rate of income tax would almost certainly have been cut to 40% (Boris, meanwhile, has suggested that George Osborne should "brood" on cutting it to 30%), so it's more than a little opportunistic for Cameron to boast that the rich are paying more tax than under Labour. Rhetoric aside, his commitment to a progressive system is wafer thin.

David Cameron chats with Boris Johnson at Battersea Power Station in London on July 4, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Women's bodies should not be bargaining chips for the Tories and the DUP

Women in Northern Ireland have been told for too long that the Good Friday Agreement is too fragile to withstand debates about their reproductive rights

When Members of Parliament are asked to pass laws relating to when and whether women can terminate their pregnancies, women’s rights are rarely the focus of that decision-making process. You need only look at the way in which these votes are traditionally presented by party leaders and chief whips as “a matter of conscience” - the ultimate get-out for any MP who thinks their own value or belief system should get priority over women’s ability to have control over their bodies.

Today’s vote is no different. The excellent amendment that Labour MP Stella Creasy has put before the house reveals not just the inequalities experienced by women in different parts of the UK when it comes to being able to make decisions about their health, but also the latest layers of subterfuge and politicking around abortion. 

Creasy’s amendment seeks access to the NHS for women who travel to England and Wales from Northern Ireland seeking abortion. Right now women in Northern Ireland are pretty much denied abortion by legislative criteria that limits it to cases that will "preserve the life of the mother" - (that’s preserving, not prioritising) - and pregnancies under nine weeks and four days. Rape, incest or fatal foetal abnormality are not included as grounds for termination. The thousands of women who thus travel to England are refused free abortions on the NHS - confirmed by a recent Supreme Court ruling - on the grounds that this is a devolved matter for Northern Ireland. 

The idea behind devolution is that power should be more evenly and fairly distributed. It is not intended to deprive people of rights but to ensure rights. In refusing to exercise the powers available to him, Health secretary Jeremy Hunt is rightly acknowledging a difficult history of power imbalance between Westminster and Stormont, but he is also ignoring a wider imbalance of power, between men and women.  

There is so very much wrong with this arrangement. But a further wrong could be done if, as reports suggest, the Conservative Party whips its MPs to vote the amendment down in order to protect the regressive alliance with the anti-abortion Democratic Unionist Party (DUP) that is keeping their fragile minority government in power.

Instead of taking this opportunity to respond to the demands of women of Northern Ireland, this government is setting out the parameters of its complicity in refusing to listen to them. 

It is not the first time. In 2008 it was reported that the Labour party struck a deal with the DUP to leave Northern Ireland’s abortion laws intact, in exchange for their support over detaining terror suspects without charge for 42 days. Labour said at the time that it was concerned about the impact on existing UK abortion laws if the debate was opened.

But not one woman has equality until all women have equality. Women’s bodies are not chips to be bargained and we should not be bargaining for one group of women’s rights by surrendering the rights of another group. The UK parliament has responsibility for ensuring human rights in every part of the UK. Those include the rights of Northern Irish women.

It’s time to wake up. It’s time to stop playing politics with women’s lives. Women in Northern Ireland have been told for too long that the Good Friday Agreement is too fragile to withstand debates about their reproductive rights – a fragility that was dismissed by the Conservatives as they drew up a deal with one side of the power-sharing arrangement.

It’s time to confront the fact that nowhere in the United Kingdom – taking Northern Ireland as a starting point rather than an end in itself – do women enjoy free and legal access to abortion. Even the UK’s 1967 act is only a loophole that allows women to seek the approval of two doctors to circumvent an older law criminalising any woman who goes ahead with an abortion.

As long as our rights are subject to the approval of doctors, to technological developments, to decisions made in a parliament where men outnumber women by two to one, to public opinion polls, to peace agreements that prioritise one set of human rights over another – well, then they are not rights at all.

The Women’s Equality Party considers any attempt to curtail women’s reproductive rights an act of violence against them. This week in Northern Ireland we are meeting and listening to women’s organisations, led by our Belfast branch, to agree strategy for the first part of a much wider battle. It is time to write reproductive rights into the laws of every country. We have to be uncompromising in our demands for full rights and access to abortion in every part of the UK; for the choice of every woman to be realised.

Sophie Walker is leader of the Women's Equality Party.

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