Why Danny Alexander's promise to keep the 45p tax rate can't be trusted

The Lib Dems says the top tax rate will be cut "over my dead body". But he said the same about the 50p rate in 2011.

Danny Alexander's decision last week to attack Labour's "borrowing bombshell" (a conspicuous echo of Conservative rhetoric) and to outline coalition spending totals until 2020-21 went down predictably badly with the Lib Dem left. Just three days before his intervention, Vince Cable had emphasised that his party was not bound to George Osborne's post-2015 deficit reduction timetable: "There are different ways of finishing the job … not all require the pace and scale of cuts set out by the chancellor. And they could allow public spending to stabilise or grow in the next parliament, whilst still getting the debt burden down." But Alexander's willingness to join the Chancellor in a united front against Ed Balls appeared to confirmed the long-held suspicion that he has gone "native" at the Treasury (the joke runs that the Lib Dem man in the Treasury has become the Treasury man in the Lib Dems). 

In response, Prateek Buch, the co-chair of the Social Liberal Forum (and a Staggers contributor), said: "Cuts on the scale planned by Osborne just cannot be delivered. So why should Lib Dems endorse the Chancellor’s straitjacket? It is beyond me why Danny would sign up to what appears to be joint Lib Dem/Tory spending plans going beyond the end of the next parliament, when no such figures have been agreed by his own party. It is unhelpful to pre-empt the party’s manifesto process in this way. Besides, the plans take no account of the need to invest, or what will happen to GDP. What happened to differentiating ourselves from the Tories?"

Perhaps unsettled by this criticism, today finds Alexander seeking to put some clear yellow water between himself and his coalition partners. He tells the Daily Mirror that a cut in the 45p tax rate (which the Tories have repeatedly refused to rule out) will happen "over my dead body" and says of the claim that he has gone "native": "If that’s what people think about me, then they are wrong. I am Liberal Democrat – full stop, end of story." 

But given past form, don't be surprised if Osborne ends up walking over Alexander's corpse on his way to deliver the Budget. In July 2011, the Chief Secretary to the Treasury said of those calling for the abolition of the 50p tax rate: "The idea that we're going to somehow shift our focus to the wealthiest in the country at a time when everyone's under pressure is just in cloud cuckoo land". But eight months later, Osborne did just that (while failing to introduce the mansion tax that the Lib Dems demanded in return). While there is no sign that the Tories are considering another reduction in the top rate in this parliament (in what would be a pre-election gift to Labour), it would be unwise to take Alexander's word for it.

Asked about the subject on the Today programme this morning, Boris Johnson quipped that "the last thing I want to see is a pointless sacrifice from the Liberal Democrats, let alone the dead body of Danny Alexander" before hinting that the next Conservative manifesto would, at the very least, not commit to keeping the 45p rate. He said: "I can't believe we're going to go into an election with a tax rate so high." Since it's the Mayor's brother, Jo Johnson (the head of the No. 10 policy board) who is responsible for the manifesto, he can be assumed to speak with some authority on this matter. Finally, asked whether Alexander could be thrown over board to allow a cut in the top rate, he intriguingly remarked: "stranger things have happened at sea". 

Danny Alexander at the Liberal Democrat conference in Glasgow last year. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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Commons Confidential: Dave's picnic with Dacre

Revenge is a dish best served cold from a wicker hamper.

Sulking David Cameron can’t forgive the Daily Mail editor, Paul Dacre, for his role in his downfall. The unrelenting hostility of the self-appointed voice of Middle England to the Remain cause felt pivotal to the defeat. So, what a glorious coincidence it was that they found themselves picnicking a couple of motors apart before England beat Scotland at Twickenham. My snout recalled Cameron studiously peering in the opposite direction. On Dacre’s face was the smile of an assassin. Revenge is a dish best served cold from a wicker hamper.

The good news is that since Jeremy Corbyn let Theresa May off the Budget hook at Prime Minister’s Questions, most of his MPs no longer hate him. The bad news is that many now openly express their pity. It is whispered that Corbyn’s office made it clear that he didn’t wish to sit next to Tony Blair at the unveiling of the Iraq and Afghanistan war memorial in London. His desire for distance was probably reciprocated, as Comrade Corbyn wanted Brigadier Blair to be charged with war crimes. Fighting old battles is easier than beating the Tories.

Brexit is a ticket to travel. The Independent Parliamentary Standards Authority is lifting its three-trip cap on funded journeys to Europe for MPs. The idea of paying for as many cross-Channel visits as a politician can enjoy reminds me of Denis MacShane. Under the old limits, he ended up in the clink for fiddling accounts to fund his Continental missionary work. If the new rule was applied retrospectively, perhaps the former Labour minister should be entitled to get his seat back and compensation?

The word in Ukip is that Paul Nuttall, OBE VC KG – the ridiculed former Premier League professional footballer and England 1966 World Cup winner – has cold feet after his Stoke mauling about standing in a by-election in Leigh (assuming that Andy Burnham is elected mayor of Greater Manchester in May). The electorate already knows his Walter Mitty act too well.

A senior Labour MP, who demanded anonymity, revealed that she had received a letter after Leicester’s Keith Vaz paid men to entertain him. Vaz had posed as Jim the washing machine man. Why, asked the complainant, wasn’t this second job listed in the register of members’ interests? She’s avoiding writing a reply.

Years ago, this column unearthed and ridiculed the early journalism of George Osborne, who must be the least qualified newspaper editor in history. The cabinet lackey Ben “Selwyn” Gummer’s feeble intervention in the Osborne debate has put him on our radar. We are now watching him and will be reporting back. My snouts are already unearthing interesting information.

Kevin Maguire is the associate editor (politics) of the Daily Mirror

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 23 March 2017 issue of the New Statesman, Trump's permanent revolution