Author Archives: Nick Baird

Lib Dem MPs are wrong to campaign against farming inheritance tax changes

With the ‘Tractor Tax’ protests filling the news for several days, yesterday delivered an email from Lib Dem HQ informing me that our MPs are demanding that the tax be axed. I was both surprised and disappointed to see our MPs siding with some very wealthy vested interests on this issue. It is clear that investment in farmland is being used by some as a deliberate ploy to dodge inheritance tax, and beyond romanticising the “family farm” and way of life, I’ve yet to hear a convincing moral or economic argument as to why farmers uniquely deserve a better deal on inheritance tax than you or me. And even after Labour’s proposed changes, the IHT regime for farms still remains far better than that available to almost anyone else.

Ed Davey and Tim Farron tell us that farming is vital to the country, that rural communities have been taken for granted, and that Brexit and trade deals that undercut British farmers with food produced to lower standards is a disaster for them. All that is true, but it has absolutely nothing to do with inheritance tax, and even if Labour change their minds tomorrow, the very real challenges that British farmers face will remain. I find it curious (or perhaps not) that tax is the issue that has brought out farmers to protest, whipped up by some multi-millionaires and a right wing press that is ideologically opposed to all inheritance tax in principle.

If we accept that genuine farming families are deserving of special treatment to allow farms to be passed down tax-free within the family, there are ways that Labour’s plans could be amended to ease that, but Lib Dem MPs are siding with tax-dodging multi-millionaires to reverse the change entirely. They are wrong to do so.

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Leading the way – back to hope

I’ve never liked the term “progressive parties”, lumping us together with Labour and the Greens despite some significant differences in policies and priorities. It often serves as lazy shorthand for “not Tory”, but it’s accurate in one respect – the Conservatives have spent the last few years slowly strangling any expectation of progress. Their legacy is a cost of living crisis, exponential growth in hospital waiting lists, unaffordable housing, falling living standards and the virtual abandonment of attempts to tackle the climate crisis and protect the environment.

You will have seen that the new Labour Government has recently awarded “inflation busting” pay rises to public sector workers, triggering howls of anguish from the right-wing press. In reality, these pay rises simply go some way towards restoring real terms pay and living standards to a segment of the workforce that has been squeezed by austerity and hammered by inflation, yet even the sensible financial press has framed 5.5% as a problem because it is “inflationary”. It seems the burden of tackling inflation must mostly be borne by the lower paid and the middle classes, while the new boss of Thames Water (a company on the verge of bankruptcy) is given a £2.3m pay package and bankers have seen their bonus caps abolished (which Labour has no plans to restore).

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The Conservatives have just announced a big increase in defence spending – how should the Lib Dems respond?

Yesterday Rishi Sunak announced a plan to substantially increase UK defence spending, up to 2.5% of GDP by 2030. This announcement moves the Tory position from an aspiration to achieve this “when economic circumstances allow” to a firm plan with actual budget cash numbers from this year through to 2030.

The timing is interesting – it is less than two months since the Government passed its Spring Budget without any attempt to fund this aspiration, but since then two things have happened. One is that Keir Starmer moved Labour’s policy position to match the unfunded “aspiration”, and (perhaps more importantly) the Daily Mail ran a sustained campaign demanding a defence spending increase.

Beyond the spin and hyperbole of the speech and press release, the Government has also issued a supporting document with more detail, available here and the simultaneous release of this slick and glossy document indicates the Government has been working on this for a while.

In many respects, this is a sensible plan which actually aligns quite closely with the Lib Dem policy “Liberal Values in a Dangerous World” adopted at this year’s Spring Conference, including investing in people to tackle the recruitment and retention crisis within the Armed Forces and civilian MOD, providing a long term procurement pipeline to give industry confidence to invest in capacity and R&D, and reiterating the importance of alliances.

There are a couple of important things currently missing from the Government’s plans however. One is that the Government’s announcements so far do not commit to reverse the current cuts to the Armed Forces, for example in the size of the Army or the Typhoon fighter fleet. These are crucial issues, as the only way the UK could have more capacity available to fight a big war in the next 2-3 years is to reverse planned cuts now.

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The liberal case for increased defence spending

Autumn Conference made one thing very clear – the Liberal Democrats stand with Ukraine and welcome the support that the UK has provided in their fight against Russian aggression. But the fight for freedom doesn’t come cheap, nor we can assume it will always be fought far away. With an assertive China, and considerable uncertainty as to the future political direction of the USA, we are arguably facing the most dangerous period since the height of the Cold War.

The largest donor of military aid to Ukraine is the USA and the flow of American equipment and ammunition has been essential to enable Ukraine’s resistance to Russian aggression. Yet Republicans are succeeding in switching off the flow of aid to Ukraine, and threatening to cripple the war effort for a mix of ideological and political reasons.

Meanwhile efforts in Europe to coordinate a strategy to build industrial capacity to supply munitions and replenish stocks are well-intentioned but proceeding far too slowly, and Europe is currently in no position to fully replace any withdrawal of US aid.

While the West dithers, Putin has transitioned the Russian economy to a war footing, increasing spending and building capacity at pace. Looking forward, Putin will survey the situation in Ukraine and wavering support from her allies and believe he can win. That victory will be of a war of attrition, and come at great cost to the Russian people and economy as well as the Ukrainians. Yet as he empties his prisons to provide cannon-fodder for the frontline, his grip on power is such that he answers to no-one except his ego and dreams of past Soviet glory.

Posted in Op-eds | Tagged | 29 Comments

Resisting the UK’s slide into a ‘middleman’ economy

My sister-in-law is severely autistic, and as such is entitled to receive support in the form of a carer who takes her out for various activities. Over the years she has had a number of care visitors of highly variable quality, provided by a badly-managed agency under contract to the County Council. Fortunately her current care visitor is a dedicated and caring person who has improved her quality of life immeasurably. She is visibly happier, calmer and getting much more enjoyment from life, and of course want this to continue. The carer herself earns minimum wage but the Council pays the agency over twice this for her time. We are now looking at employing this carer directly, which involves her becoming self-employed and being paid directly by the Council. If we do this the Council will pay her £14 an hour, which looks like a pay rise until you remember that she will be self-employed and so will not have any of the benefits or security of full employment such as holiday pay.  In fact she will be little better off financially and the main benefit is to remove the bad agency from the arrangement and ensure continuity of care with this particular valued carer.

What strikes me about this situation is that the council is willing and able to pay more then £14 per hour for her time, but not to benefit the carer herself – only to benefit a company who will take a large slice of the funding. Why?

My niece is a very bright young woman who graduated a couple of years ago with a first-class degree. She currently works for HMRC. Except she doesn’t – she works for a company who take on graduates, provide training and then sell their time to others. In this case they sell my niece’s time to a major international consulting firm who in turn are contracted by HMRC.  I don’t have the numbers but I suspect HMRC (i.e. the taxpayer) are paying 3-4 times what my niece earns for her time. Why?

The UK’s energy regulator, OFGEM, has over 1000 permanent employees and an annual budget of over £100m. It spends nearly £20m a year with consultants, and recently paid £420k to an outside consultancy to advise on the price cap changes. Why does a well-resourced quasi-Government body need to spend such large amounts of money with consultants just to perform one of its core responsibilities? Incidently, the same consultants contracted by OFGEM also work for the Big 6 energy suppliers – couldn’t they at least find one with some independence?

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What are the UK’s Armed Forces for?

It may seem an obvious question, but I have never heard a frank and honest public discussion that fully defines the purpose of our Armed Forces. The current crisis in Ukraine has highlighted the stark contrast between our elected politicians wanting to talk tough and appear as a big player on the world stage versus the reality of what we have equipped and resourced our Armed Forces to actually do.

It would be easy to find a broad consensus that they should defend the UK, and it’s Overseas Territories and Dependencies. Most would agree that we have treaty obligations under NATO that we are obliged to meet, and few would argue against using their equipment and expertise to support disaster relief and respond to emergencies.

Beyond that however, should the UK maintain an expeditionary capability, able to conduct operations far away and intervene in conflicts that don’t directly affect UK territory or NATO allies?

It’s an important question in many ways, not least because the Armed Forces needed to do that look quite different to what is needed just to conduct defensive operations close to home. As a nation, we need to collectively decide what is our place in the world, then we have a duty and obligation to resource and equip our Forces accordingly. I suggest that we are currently failing.  Numbers of troops, tanks, warships and combat aircraft are at historic lows, having been cut again recently by the Conservative Government (while boasting of increased defence spending).

Posted in Op-eds | Tagged , and | 26 Comments

The Progressive Alliance isn’t progressing…

I’ll be honest – Compass and the whole “Progressive Alliance” debate frustrates me. Yes, I fully understand the principle of opposition parties working together in some as yet undefined way, but in my opinion the advocates of a Progressive Alliance are failing. Leaving aside what “Progressive” means (if anything), I’m still not clear what the “Alliance” bit means. Compass say they want to “stimulate the debate” but what are we even debating?

Cooperation could mean anything within a wide spectrum – from one party’s activists campaigning for another, through one party simply standing down, to standing but campaigning selectively, or passively standing and not campaigning at all.

The debate doesn’t seem to be moving forward, and it can’t until there are concrete proposals on fundamentals such as what cooperation looks like and, importantly, how target seats are apportioned.

Why do I care so much?

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The weekend everything changed…

What a weekend!  It really does feel different now – claims of “the will of the people” have never sounded more hollow, the 2016 referendum result never more stale.  The online petition to Revoke Article 50 has topped 5 million signatures, dwarfing all the pro-Brexit petitions combined by a massive margin.  Over a million travelled from all over the country to march for a People’s Vote while Nigel-No-Mates struggles to muster 50 for his “Brexit Betrayal” march.

And just look who’s marching.  On Saturday there were young people everywhere – twenties, teens and younger.  All demanding a say, all demanding a brighter future.  Now study the photos (if you can bear to) from one of Farage’s sad little gatherings and tell me how many you spot under the age of 40.

A better Prime Minister, one with charisma and genuine leadership qualities, would have built a cross-party consensus for a Norway-style soft Brexit and would be taking us out of the EU with a deal that a majority would accept (if reluctantly).

But that time has passed.  May’s Brexit plans have turned to ashes on a pyre of incompetence, intransigence and infighting.  The people have stared into the abyss of a hard Brexit, and while a few still want to jump, most are stepping back and turning away.

Posted in Op-eds | Tagged , and | 18 Comments
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