Ed Balls speaks at the Labour conference in Brighton last year. Photograph: Getty Images.
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Balls calls for Osborne to scrap marriage tax allowance to fund 10p tax rate

Shadow chancellor says 10p tax rate would benefit two-thirds of married couples, while tax allowance would help just one-third.

Ahead of the Budget on Wednesday, Ed Balls has given an interview to the BBC calling on George Osborne to scrap the planned marriage tax allowance and use the money saved to introduce a 10p tax rate.

It's a smart intervention, not least because the socially liberal Osborne privately loathes the policy (for both political and economic reasons). As Balls notes, despite the broad promise to "recognise marriage" in the tax system, just a third of couples (4.1 million) will gain from the move. Eighty four per cent of the winners are men and just one in six families with children will benefit. By contrast, a 10p rate of tax would help 24 million taxpayers, including two-thirds (eight million) of married couples. 

Here's Balls's exchange with Nick Robinson: 

EB: What did he actually announce last year, he said that he would introduce a married couples allowance which, when you look at the detail, only goes to a third of married couples, and one in six families with children, it goes mainly to men. We think what we should actually do is scrap the married couples allowance which is perverse and unfair, and use that money to give a tax cut for all middle and lower income families. We propose a new 10p starting rate of income tax, it's better than the personal allowance, because it’s better for work incentives, it would help two-thirds of married couples, it would help women as well as men, families with children. Let’s cut taxes for working families, and let’s ease this cost-of-living crisis rather than carrying on pandering to Tory backbenchers with tax cuts that are unfair and don’t make sense.

NR: Let me be clear what you’re telling us, if you’re Chancellor, the marriage tax break goes?

EB: Well it goes, because let’s be honest, it doesn’t go to widows, it doesn’t go to people who’ve been left by an abusive husband, it only goes to a third of married couples, the vast majority of families with children get no benefit, get rid of that, and use that money to help all middle and lower income families struggling with the cost-of-living crisis. Fair tax cuts from Labour, not unfair tax cuts from George Osborne.

When I asked a Balls source whether the announcement meant the revenue that would be raised through a mansion tax (which Labour has pledged to introduce on properties worth more than £2m to fund a 10p rate) could be used for other measures, I was told that the party was not "de-linking 10p and mansion tax", or making a firm commitment to scrap the marriage tax allowance to help pay for the former. Rather, it is an example of a fairer choice that Osborne could make next week and an affirmation of Labour's commitment to tax cuts for the many, not the few. 

Balls is certainly right to emphasise his opposition to the marriage tax allowance, which is, as I've written before, a terrible policy. It will reduce work incentives by encouraging second earners to stay at home, further complicate the tax system and do little to support those families most in need of help. It's also, as Osborne has recognised, bad politics.

In a GQ article earlier this year, Andy Coulson described the perception that the Tories frown upon single parents as "electoral halitosis", but this policy unambiguously discriminates against them. Among those who also don't gain from the policy, as the campaign group Don't Judge My Family has noted, are widows and widowers, people who leave abusive relationships and working couples. Are liberal Conservatives really comfortable with tilting the tax system against them? The philanderer on his third marriage gains, while the hard-pressed single mother is ignored.

But under relentless pressure from Conservative backbenchers, Cameron has been forced to press ahead with a measure that will further toxify the Tory brand. 

George Eaton is political editor of the New Statesman.

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No, David Cameron’s speech was not “left wing”

Come on, guys.

There is a strange journalistic phenomenon that occurs when a party leader makes a speech. It is a blend of groupthink, relief, utter certainty, and online backslapping. It happened particularly quickly after David Cameron’s speech to Tory party conference today. A few pundits decided that – because he mentioned, like, diversity and social mobility – this was a centre-left speech. A leftwing speech, even. Or at least a clear grab for the liberal centre ground. And so that’s what everyone now believes. The analysis is decided. The commentary is written. Thank God for that.

Really? It’s quite easy, even as one of those nasty, wicked Tories, to mention that you actually don’t much like racism, and point out that you’d quite like poor children to get jobs, without moving onto Labour's "territory". Which normal person is in favour of discriminating against someone on the basis of race, or blocking opportunity on the basis of class? Of course he’s against that. He’s a politician operating in a liberal democracy. And this isn’t Ukip conference.

Looking at the whole package, it was actually quite a rightwing speech. It was a paean to defence – championing drones, protecting Britain from the evils of the world, and getting all excited about “launching the biggest aircraft carriers in our history”.

It was a festival of flagwaving guff about the British “character”, a celebration of shoehorning our history chronologically onto the curriculum, looking towards a “Greater Britain”, asking for more “national pride”. There was even a Bake Off pun.

He also deployed the illiberal device of inculcating a divide-and-rule fear of the “shadow of extremism – hanging over every single one of us”, informing us that children in UK madrassas are having their “heads filled with poison and their hearts filled with hate”, and saying Britain shouldn’t be “overwhelmed” with refugees, before quickly changing the subject to ousting Assad. How unashamedly centrist, of you, Mr Prime Minister.

Benefit cuts and a reduction of tax credits will mean the Prime Minister’s enthusiasm for “equality of opportunity, as opposed to equality of outcome” will be just that – with the outcome pretty bleak for those who end up losing any opportunity that comes with state support. And his excitement about diversity in his cabinet rings a little hollow the day following a tubthumping anti-immigration speech from his Home Secretary.

If this year's Tory conference wins the party votes, it’ll be because of its conservative commitment – not lefty love bombing.

Anoosh Chakelian is deputy web editor at the New Statesman.