Tag Archives: tax

Neglected Assets: A case for a radical rebalancing and reform of our Tax System

In a twist worthy of a Shakespearean comedy, The Financial Times—yes, the very bastion of capitalism—has thrown its weight behind the call to increase taxes on the wealthy. It’s as if Ebenezer Scrooge himself woke up, not just offering Bob Cratchit Christmas off, but also turned his business into a consumer mutual. 

This surprising endorsement underscores a deeper, more troubling reality: the Tories have, over time, alienated their once staunchest supporters — pragmatic economic thinkers and investors. The people who’d toast their morning coffee to the Conservatives, secure in the knowledge that their financial acumen was reflected in sound government policy. 

However, even the FT don’t try to hoodwink their audience against their own interests; understanding the reality of how years of economic stagnation has impacted our country and the wealth imbalance. 

The Tories have managed to estrange themselves so far from these stakeholders, pushing them away with a series of economic imbalances that act more like tragicomedies than strategy. Gone are the days when Tories  were seen as reliable economic stewards. 

The Tories seem intent on peddling narrow, faux-capitalistic dogma than fostering real, sustainable growth. The FT would appear to not be as easily fooled. They understand that the economy needs careful tending, like a well-pruned garden, not the reckless abandonment of letting a child  loose with garden shears. 

The article claims that parties need to the bolder on the economy. Now you might think, bold from FT writers, we’ve all been here before; savage tax cuts, privatising the police force, parading with “We Love Liz” t-shirts and having a national “Margaret Thatcher day”. Except no. Instead, amongst many other arguments, the article states that arguments by the right that better economic rebalancing and higher taxes will impact the economy is just nonsense. They say that due to the state of public finances and a public interest to see robust investment into public services that we need to be honest about increasing taxes if we are going to prevent going through a cliff-edge. They have even argued that due to lack of private investment that it would be in our interest if a major re-balancing of wealth in this country through a series of targeted tax rises on the wealthy be implemented as the government can efficiency invest into the economy. The extreme position the Tories have left us in means we have no major infrastructure going on in the UK – the need is obvious. 

While it stop short of calls for any kind of Wealth Tax or increasing top earners’ tax rates it, the author argues that we should be looking at reforming our overly complex tax system which courts the favour of people with big pockets and good accountants. Amongst its arguments was  using revenue to bring VAT down and combining NI and Income Tax together. 

I have always been a strong advocate of reforming our tax systems.  The current tax system is deeply unfair where wealthy individuals who make their earnings by selling assets pay less tax than someone who is on a paid salary but earning considerably less. 

Posted in Op-eds | Also tagged , and | 21 Comments

The other elephant in the room

We all know that one of the topics the leadership don’t want us to talk about is the EU. But there is another very important matter to voters that we say almost nothing about either, taxation.

There was a time, when I was a young Liberal and just starting out on the employment trail when we proudly supported a progressive income tax system as both fair and certain. When I started work, basic rate was 33% and the top rate was 98%. We told people, quite rightly, that the tax was necessary to pay for public services. Then along came Thatcher and Laffer with his ridiculous curve and suddenly we have joined the ‘tax is bad’ viewpoint and we have become terrified of even suggesting that our policy programmes WILL require tax rises. Sure, we talk about taxes on the banks, or windfall taxes on utilities or taxing fatcats, but we simply don’t engage in the task of reminding people that their taxes are not a dreadful burden, but actually necessary to pay for the services we (and they) want.

It’s almost as if we now share the view of a US citizen interviewed about tax, who said ‘Why should I pay tax, the government should find the money!’

Posted in Op-eds | Also tagged | 38 Comments

Our party needs to take childcare seriously – and the tax to pay for it

In 2021 childcare took 30% of the average UK wage compared with Finland (18%), Netherlands (17%) Canada (16%) and Denmark (9%). Overall it is clear that the UK lags far behind most other developed countries.

At the same time, the UK continues to have the second-highest rate of social inequality in the G7, behind only the US, according to statistics published by the OECD.

Our inequality is fuelled by educational disadvantage.

Last week  a survey of primary school teachers said that nearly half of their new entrants weren’t toilet trained, could not give their name and couldn’t eat by themselves. Nearly half!

How can teachers teach properly while they are having to change nappies, teach children how to talk, and feed them by hand?

Early years’ education is hugely important. A child without basic skills at the age of 5 is likely to continue to lag behind all through their school career. What’s more, when they become parents in their turn, their children are likely to lack skills as well.

Levelling up won’t happen unless we educate our children properly. Professional childcare is vital to help our children, especially those from disadvantaged backgrounds.

Posted in Op-eds | Also tagged | 42 Comments

9 March 2023 – today’s press releases

  • Davey: Shell boss £10m pay packet shows need for “bonanza bonus” tax
  • HS2 Delay Must Trigger Barnett Consequential Funding for Wales

Davey: Shell boss £10m pay packet shows need for “bonanza bonus” tax

The Liberal Democrats have reiterated their calls for a tax on the bonuses of oil and gas company bosses, following the news that the former chief executive of Shell’s pay rose more than 50% to nearly £10m in 2022.

Shell announced today that former chief executive Ben van Beurden received a bonus of £2.6m in 2022, up from £2.2m the previous year. Under Liberal Democrat plans, this would be taxed at …

Posted in News and Press releases | Also tagged , , , and | 17 Comments

Welcome to my day – 30 January 2023: tax still shouldn’t be taxing…

I spent a chunk of my weekend completing my 2021/22 Self Assessment tax return. Yes, I know, “left it a bit late, didn’t you, Mark?”. Luckily, my tax return isn’t terribly complicated once I’ve found the required bits of information online and elsewhere.

Nadhim Zahawi appears to have had a rather more complex task or, should I say, his tax advisors. That’s partly a problem of his own creation – offshore trust funds aren’t obligatory – and partly the increasingly complex web of tax law in this country.

There is little doubt that, the more complex the tax system is, the more need there is for professional tax advisors and the more scope there is for creative uncertainty. The more you try to create opportunities in an effort to encourage what the Government of the day believes is desirable behaviour, the more you invite terribly clever people to find ways of taking advantage of the unintended consequences of those changes. People tend, often, to reduce their personal tax burden if they can. Wealthier people can pay to find the more obscure means of doing so, and the British legal and accounting professions are very, very good at delivering the desired outcome.

Posted in News | Also tagged and | 10 Comments

Welcome to my day: 11 April 2022 – they seek him here, they seek him there, that damned elusive Rishi Sunak…

So, who leaked the information that Rishi Sunak had retained a US Green Card up until last year? Or that his wife, Akshata Murty, was non-domiciled for tax purposes? Was it a Labour supporter within Downing Street, as originally suggested (unlikely but not impossible, I guess), or someone from the Number 10 dirty tricks team?

However the information has reached the public domain, it’s certainly put the cat amongst the pigeons. Conservative Home readers have put him in their bottom three in terms of approval ratings (+7.4%) which, given that he was second in August, with a net approval rating of +74.5%, is either a sign of how fickle Conservatives are, or that he’s a fairweather Chancellor, capable of looking generous when there’s little choice to be anything else, but poor when hard political choices are necessary. Actually, I’d suggest that it’s both.

Posted in News | Also tagged and | 9 Comments

William Wallace writes…Promises of tax cuts deny reality

Rishi Sunak reassured the Conservative Party conference on Monday: ‘Yes, I want tax cuts,’ though not until public finances have been ‘put back on a sustainable footing.’ That’s code for cutting public expenditure and public investment. The substantial proportion of Conservative MPs who believe in a small state repeatedly call for tax cuts without saying where they would cut spending. IN committing to balancing the budget Sunak is committing himself to cutting spending as well – or breaking the manifesto pledge not to raise taxes again. He will be well aware that Republican Administrations in the USA have repeatedly run rising deficits as they cut taxes but failed to cut spending.

Liberal Democrats should resist any temptation to criticise the Conservatives for raising taxes. We should condemn them vigorously for raising taxes unfairly – for hitting lower-paid workers through raising National Insurance while sparing higher earners. Fair taxation has to be progressive taxation, oriented to take more from those who have more. The UK is more sharply unequal in terms of both income and wealth than almost all other developed democracies except the USA. Repeating ‘give us tax cuts and a smaller state’ sweeps aside the social and economic challenges that the UK faces.

Like other developed democracies, we have a rising number of elderly people drawing pensions and using health and other public services. We have cut public spending on education and training well below comparable countries, with results that are apparent in our shortage of skills. We have invested too little in housing and public infrastructure for decades. Transition to a more sustainable economy, including moving toward net zero carbon emissions, will require major public as well as private investment. The UK has also invested much less in scientific research and development than other leading states. Boris Johnson has promised to make us ‘a scientific superpower’, but has not yet explained how that will be funded.

And then there is ‘Levelling Up’, which is becoming the defining measure of Johnsonian government – and the likeliest source of public disillusion at the gap between easy promises and poor delivery. Long-term reduction of regional inequalities cannot be achieved without higher investment in education, local as well as long-distance transport, the revival of local government and public services, housing and local enterprise. That’s a huge agenda, reversing decades of neglect by successive government, and requires a sustained increase in public spending.

Posted in Op-eds | Also tagged | 11 Comments

Penny power

Someone wrote an amazing article on LDV a few weeks ago, proposing a kind of national transaction tax (I can’t recall the precise term he used) levied on every electronic payment made in the country. We must make millions of these across the nation every day for business and personal purposes. Moreover, at the infinitesimally low rate of 0.005% – is that a halfpenny on £100? the decimals baffle me – the product would finance a Universal Basic Income of something like £800 per person per month. OK, it’s not enough to live on, the argument goes, but even at …

Posted in Op-eds | 6 Comments

Some thoughts on taxation, as inspired by the Taxpayers’ Alliance…

Yesterday, I wrote slightly cynically about an approach from those lovely people at the Taxpayers’ Alliance. But, you know, they’re entitled to their view, even if they’re highly unlikely to admit who funds their research and their interest in seeing key tax rates lowered (the answer being, probably not people like you, gentle reader…). But I did promise to take a look at their findings, and thus give you an opportunity to comment.

But, before I do, here are some base statistics from their research;

  • 40% of respondents stated that they were “relatively comfortable financially”
  • 9% stated that they were “very comfortable

Posted in Op-eds | Also tagged | 32 Comments

My contribution to the EU Budget – the best tenner I ever spent

My annual tax report for the year 2017-18 arrived the other day.

It outlined to me what I get for the relatively low tax I pay every month.

The last item on the breakdown broke my heart.

“Contribution to the EU Budget – £10”

That’s all it costs.

For that I get:

Freedom to work and travel and live in 28 countries

The prosperity that being in the customs union and single market brings, with the added advantage that showing up with 27 of your mates when you are trying to do business with the likes of Donald Trump and the Chinese Government brings.

This country’s universities getting access to research funding to carry out investigations which will help us to learn more about how the world works and develop ways to fix its problems.

My son having the chance to study anywhere across the EU via the Erasmus programme

Joint arrangements on radioactive isotopes and the like through Euratom

Co-operation on security across the 28 member states

Protection of my employment rights, keeping me safe from the right wing small state instincts of most of the politicians who campaigned for Brexit. 

Posted in Op-eds | Also tagged and | 15 Comments

The bit that annoys me most about the Budget…..

It’s not that there’s more for potholes than schools.

It really isn’t that I’m going to have to pay more for my wine.

It’s something that isn’t really being picked up in the responses I’ve heard so far.

Better off people, higher rate tax payers, are getting a much bigger tax cut than those on low incomes.

That’s right. If you are  a basic rate tax payer, your tax threshold rises from £11,850 to £12,500. And while we’re on the subject, this is the annual “Tories take credit for Lib Dem idea” day. Remember how David Cameron told Nick Clegg the idea wasn’t affordable? Every year during the coalition, the Tories used to whinge like anything about having to implement this Lib Dem tax cut for the poorest. Now they just take credit for it like we never happened.

If you are a higher rate taxpayer, you won’t start paying the 40% rate until you are earning £50k, up from £46,350.That is proportionately a significantly higher tax cut than those on low incomes are getting. Sp much for fairness and helping the Just About Managing.

This, of course, is not the case in Scotland where higher rate taxpayers didn’t get last year’s rise and we’ll have to wait and see if Finance Secretary Derek Mackay repeats that this year. The Tories will create merry hell if he doesn’t as they continue with their agenda of grievance. I’d actually rather the SNP sorted public services out, to be honest.

I don’t live in a terribly affluent household, but, even so, a budget that gives us £20 or so extra a month while people are really struggling to find even the most basic housing, or to put food on the table, has got its priorities well and truly wrong.

Posted in News | Also tagged and | 11 Comments

William Wallace writes…We need to challenge Conservatives on Tax cuts

Right-wing Conservatives like Boris Johnson and Priti Patel are calling again for tax cuts to ‘free’ the economy.  It’s always popular to call for tax cuts, so long as you don’t link them to spending cuts; so it’s a priority for Liberal Democrats to link the two, and point out that the Brexiteers’ agenda is also one that shrinks the state further, and enforces continuing cuts in the NHS, social care, children’s services – the entire welfare state – education, bus services, even police and prisons.

And the Brexiteers have a problem.  They promised, of course, that they could spend £350m a week more on the NHS – a promise given by a campaign master-minded by Matthew Elliott, founder and first director of the Taxpayers Alliance, a lobby/think-tank dedicated to cutting state tax and spending.  He had used the same cynical ploy in leading the campaign against the Alternative Vote, arguing that the cost of the referendum and the new system could better have been spent on the NHS: knowing that this would appeal to hesitant voters, but not intending that any more money should be spent.  

Their problem is that the narrow majority that voted for Brexit were, and remain, deeply divided on public spending.  One of Lord Ashcroft’s latest polls, intended to inform the Conservative Party conference, warns that roughly half of those who still support Brexit support further cuts in spending and tax, while half – the less well-off, the ‘left behind’ and the ‘just about managing’ – want an end to austerity.  Pushing through Brexit, with a resulting fall in tax revenue on top of the corporate tax reductions right-wing think tanks are calling for, would force yet another squeeze on public services of all types – and would lose the Conservatives the working class support they think they have won.

Boris Johnson’s Conservative conference speech relied on the ‘Laffer Curve’ to square the circle: the assertion that cutting corporate taxes will increase revenue, as companies and their owners are freed to increase investment, create more jobs, and spur faster economic growth.  The record of successive Republican Administrations in the USA has shown that this does not work.  The second Bush Administration cut taxes without managing parallel cuts in spending, leaving the Clinton Administration to struggle with the accumulated deficit it inherited.

Behind this commitment to continuing cuts lies a deep antagonism to the public sector and to those who work in it, and an insistence that private provision always works better than public.  Teachers, they argue, are overpaid and underworked, civil self-interested and intrinsically inefficient bureaucrats.  But never a word from the libertarian lobby about rent-seeking executives in the private sector, or examples of corporate failure or corruption in the provision of services.  And it’s corporate taxes they want to cut deeply, more than personal taxation.

Posted in Op-eds | Also tagged , and | 25 Comments

Vince: I’m not stepping down (but…)

Vince was on the Today programme this morning mainly to talk about the revelations that HMRC advise against giving honours to tax avoiding celebrities – something that he thought was right in principle.

However, he was also asked about his ideas for reforming the party and, specifically, how much longer he would be leader.

I’m not stepping down. I’m making a speech next week putting forward some reforms to the way the party functions.

So far, so good.

But then he was asked a direct question about whether he would be fighting the next election.

Yes, if there is one in the near future.

Posted in News | Also tagged , , and | 16 Comments

Inequality and taxation

Since 1979, when Margaret Thatcher came to power, politicians – sadly including many in our own party – have denigrated taxation, reduced the levels of income tax and switched tax from income and wealth to consumption. All mainstream political parties have perpetuated the myth that you can have low taxes and good public services. When I first worked, in the late sixties, the basic rate of income tax was 33% and the top rate was 98%. This had persisted since the war, regardless of which of the main parties was in power. The basis for these levels of taxation was the need to pay for public services, including a good number in public ownership. There was also a view that the gap between the bottom and top of the income scale should not be too large. Broadly people accepted this post war settlement, except of course for a few very highly paid individuals – like the Rolling Stones, who went to live abroad.

Mrs Thatcher, a disciple of economist Milton Friedman, changed all that. Tax rates at the top plummeted to 60% (and later to as low as 45%) and basic rates declined a little. Soon taxation on consumption was to rise and there were new taxes too. The argument used was that income tax was stifling enterprise and that letting people keep more of their own money would incentivise them to invest and develop new businesses. The corollary was that there was less money for public services and an inexorable squeeze on those services was started by Mrs Thatcher, continued by John Major and compounded by Gordon Brown. The coalition made it worse.

At the same time inequality started to get worse. Over time the ratio of top earners pay to shop floor workers’ pay went up from about 4:1 in the immediate post war years, then to 10:1 and much more in some cases, even as high as 50:1. Peter Mandelson may have been relaxed about people getting filthy rich as long as they paid their taxes, but the effects of this huge widening of inequality has had devastating effects on our society, as detailed in ‘The Spirit Level’ by Kate Pickett et al.

The reductions in income tax continued, urged on by the millionaire owners of the press and media. Despite the big increases in personal allowances the gap between the top and bottom has continued to grow and with it the breakdown of the caring society some of us still remember. The politics of envy, stoked by the advertising industry, create a society filled with anxiety, mental illness and violence. In many areas people don’t even know their neighbours, let alone love them. Gated communities tell you just how uncaring we have become.

Posted in Op-eds | Also tagged and | 34 Comments

Welcome to my day: 29 January 2018 – is something pecking at you…

Never let it be said that we’re on message here, but I really ought to remind you that, if you are due to file a Self Assessment tax return, and you haven’t, the deadline is coming up fast…

Public Service Announcement complete, welcome to another Monday of drama and passion. Alright, I may be exaggerating just a bit, but the fun really starts this week, as the EU Withdrawal Bill reaches the House of Lords, where the Government have to find a way of getting the Bill past an unfriendly chamber. Remember, the …

Posted in Site news | Also tagged | Leave a comment

Campaigning for higher and fairer taxes?

We need to talk about tax. The IMF’s annual report on the UK economy recommends that taxes should be raised, in order to reduce the deficit further without cutting public investment and services. Philip Hammond, it is reported, would like to do so; but he is opposed by the ideological (and Eurosceptic) right of his own party, and by the influential group of free market think tanks who were cheerleaders for the Brexit campaign.

The Taxpayers Alliance and the Institute of Economic Affairs have repeatedly argued that it’s impossible to raise more than …

Posted in Op-eds | Also tagged and | 45 Comments

Rennie: Scottish Budget a “missed opportunity”

Today was an historic day. Twenty years and three months ago, the Scottish people voted to have a Scottish Parliament with tax raising powers.

In his annual Budget, Scottish Finance Minister Derek Mackay increased the basic rate of income tax to 21p for those earning above £24,000. He also decreased it to 19p for the lowest earners up to £13,850. He put up the higher rate to 41p and the top rate to 46p.

It’s all pretty modest and it represents the sort of moves we were calling for in the Scottish elections last year and since. We wanted to see the money brought in put into education to make what Willie Rennie calls a “transformative”investment.

So we’re not going to complain about the idea of tax rises in principle. However, Derek Mackay is getting a world of pain from the Tories because the SNP said in their manifesto that they wouldn’t raise the basic rate of income tax. They were pretty scathing about our plans during the campaign and there are a whole load of words they said that are coming back to haunt them now.

They could have saved themselves that grief by ceding the principle last year.

Anyway, that is their problem to deal with. The Budget is a pretty modest affair. It’s certainly not the sort of budget to deal with a struggling health service, unfit for purpose education system and a housing crisis that keeps getting worse.

Willie Rennie had this to say:

Posted in News | Also tagged | 3 Comments

WATCH: Willie Rennie’s speech to Scottish Conference

Here is Willie Rennie’s speech to Scottish Conference.

If you don’t have time to watch the whole thing, here are a few highlights:

On Lib Dem values:

We stand with the weak against the strong, and will use the power of government to tackle the social and economic injustices that limit freedom.

We say power is safer when it is shared and will trust communities and individuals with the power to control their own lives.

We are trustees of our world, and our society, and must pass on a sustainable legacy which will benefit future generations.

Hammering the Tories:

Well, we know that the Scottish Conservatives are the Baked Alaska of politics.

Apparently warm, fluffy and attractive on the outside.

But when you cut it open you find an ice cold heart.

That went down well in the room, but the slight flaw in the logic is that Baked Alaska is delicious.

There was a strong section on tax, described as “pickpocketing” by the Tories:

Is it theft to invest in building the best education system in the world?

Is it pickpocketing to provide the social care for those in need?

Is it a crime to want to create a fairer society?

I tell you that this is no time for narrow, selfish Conservatives.

For care, for education, for a fairer society this is the time for Liberal Democrats to stand up and be counted for the greater good.

Alex Salmond’s decision to do a show on Russian propaganda channel Russia Today came in for some serious and not so serious commentary:

Good afternoon conference.

Or dobryj dyen to Mr Salmond.

Actually, conference, I don’t want to joke about it.

Russia is undermining western democracy.

They undermined the campaign of President Macron.

Attacked Chancellor  Merkel.

We first heard about them when we found out they had undermined Hillary Clinton.

When we met here a year ago people were grief-stricken that the first woman to run for President was defeated in the way that she was.

So it is a disgrace that Alex Salmond has decided to supplement his First Minister’s pension by legitimising a Russian organisation whose mission is to undermine western democracy. It’s a disgrace.

He really went after the Brexiteers on immigration:

Boris Johnson should explain why world class university research is on the wane because researchers have moved to other parts of the world.

Nigel Farage should tell shoppers why they can’t get home grown fruit, fish and veg in our shops because we don’t have enough people to grow them.

Theresa May should tell you why you can’t have a carer for your elderly mother, or why you have to wait weeks to see your GP because they have all gone back to Europe.

And Jeremy Corbyn should come and tell you why public services are being cut because we have fewer workers paying tax to fund these vital services.

When all of this happens, you can point to every leader who backed Brexit in the full knowledge of the price of Brexit but didn’t have the courage to stand up and be counted.

And he showed the right kind of humility and willingness to listen on sexual harassment:

Some people ask women – “why did you not mention anything before?”

Let me put this as politely as I can: communication requires listening as well as talking.

Maybe they haven’t been listening.

So instead of all the excuses let’s all make sure we are listening now.

This is not nothing.

This is not the fault of women.

This is our opportunity to listen.

Listen to the decades of frustration and anger.

Listen.

And if we listen, we will change.

Enjoy the whole thing:

The text is below:

Posted in News and Op-eds | Also tagged , , , and | Leave a comment

Corbyn’s pay cap plan boosts the rich, not the poor

As usually happens when hard line Socialist utopias are created, Jeremy Corbyn’s maximum pay plan would help the rich not the poor.

That is because when employees reach the maximum, other ways would be found to reward them which would increase inequality and reduce the tax take from the rich.

In Soviet Russia access to the splendour of the Bolshoi Ballet was a perk for the wealthy. The poor weren’t helped, and no tax was collected on the perk.

So it would be if Corbyn got his way.  Employers would pay bonuses, perhaps in shares or profit share, when they can’t pay extra cash. The thing is, shares or profit shares, when sold, are liable to Capital Gains Tax, not Income Tax as wages are, and the capital gains tax rate is lower than the income tax rate above £140,000. 

Posted in Op-eds | Also tagged and | 23 Comments

Taxing multinationals

It’s time multinationals paid more tax. And the way to do that is with a point of sales tax.

Tax avoidance is huge. Take Google: The company generated more than GBP17billion in UK sales between 2005 and 2013, but paid only GBP52 million in Corporation Tax on UK profits for that period. Even George Osborne’s subsequent back taxes deal with Google, announced earlier in 2016, netted only an additional GBP130million, including interest.

Posted in Op-eds | 35 Comments

Rennie’s penny on tax for education is progressive – IPPR

The Institute of Public Policy Research Scotland has been looking at the parties’ tax plans ahead of the Scottish parliament elections.

The SNP has had a go at us for raising the basic rate of tax for workers, making out like they are protecting the low paid. In fact, IPPR says that our plans are progressive and will deliver what we say they will.

 Willie Rennie has welcomed this conclusion.

The IPPR shows that the Lib Dems’ penny (why do we not call it Rennie’s penny?) for education will raise £475 million a year, with almost half of that revenue coming from the richest 12%.

The IPPR research also shows that the Conservatives’ plans help the richest, giving those on highest incomes an extra £390 a year.

Willie said:

Posted in News | Also tagged , and | 2 Comments

Tim Farron on tax: “We must not miss this opportunity to change the system”

Tim Farron by Paul WalterTim Farron has written a note about tax on his Facebook page. As party leaders publish their tax returns, (including Willie Rennie, that’s 5 minutes of your life you won’t get back if you choose to read this unremarkable document), he says that it’s actually the system you need to change. He’ll publish his in the next few days, but that is not really the point. Here are his comments in full:

The politics of envy helps no-one, but trust in politics does.

I have no desire to poke around in the Prime Minister’s private wealth, and definitely have no desire to force him to relive the pain of losing his father, having to confront that time all over again through the pages of national newspapers.

It is absolutely essential that British people have full confidence in our leaders, and that when decisions are made and Budgets are written there is not even a slightest hint of a conflict of interest or personal gain. But we are now in a position where people no longer have complete faith in this Government’s decisions.

Trust in politics and our ability to get things done is taking another hammering. It’s an poor indictment of our political system that the demand is now so great for the public to see politicians’ tax affairs. Are we now in a world where there is an assumption that a politician is doing wrong, or is playing the system?

Posted in LibLink and News | Also tagged , , and | 17 Comments

WATCH: Alex Cole-Hamilton on tax, education, glaciers and the SNP’s “magic tractor”

This week, Edinburgh Western candidate Alex Cole-Hamilton took part in a debate on Scotland 2016 on tax.

Here are his highlights. I think my favourite was the “magic tractor.”

Scotland 2016 Tax Debate

Last night Alex Cole-Hamilton took part in the Scotland 2016 Tax Debate. If you missed it – catch the highlights below, including John Swinney's magic money tractor and our plan for education:

Posted by Scottish Liberal Democrats on Wednesday, 6 April 2016

Posted in News | Also tagged , , and | Leave a comment

Should politicians publish their tax returns?

Here’s Tim Farron telling Sky News on Friday that he is going to release his tax return, regardless of whether anyone else does. He said he made his decision because he thought that people had “a right to have their confidence in their leaders enhanced and not further diminished.”

Tim Farron: “I’m Going To Publish My Tax Return”“It’s up to him. I’m going to.” Liberal Democrat leader Tim Farron on whether David Cameron should publish his tax return.

Posted by Sky News on Friday, 8 April 2016

And so, David Cameron has now published his tax return. It doesn’t really tell us anything that we didn’t know already. We discover that he’s a rich man. We discover that he and his wife get more in rent for their Notting Hill home every year than some of our homes are worth. They are getting in more than £7,500 per month.

Posted in Op-eds | Also tagged , and | 34 Comments

Let’s all defer our tax liability for a year, shall we?

So we have another instance of a large corporation deciding how much tax it’s going to pay. Why does the Government let companies like Facebook, Starbucks, Amazon and Google get away with this?

It’s another example of where being rich and powerful gets you special treatment. The BBC reported:

After heavy criticism that it was avoiding tax, the BBC can reveal that profits from the majority of Facebook’s advertising revenue initiated in Britain will now be taxed in the UK.

It will no longer route sales through Ireland for its largest advertisers.

That includes major businesses such as Tesco, Sainsbury’s, consumer goods firm Unilever and advertising giant WPP.

Smaller business sales where advertising is booked online – with little or no Facebook staff intervention – will still be routed through Ireland, which will remain the company’s international headquarters.

I am told the change will mean that Facebook will account for substantially more revenue in the UK and will therefore pay a higher level of corporation tax on the profits it makes here.

Corporation tax is levied at 20% on the profits a business makes.

The changes will be put in place in April and Facebook’s first, higher, tax bill, will be paid in 2017.

Posted in News | Also tagged , and | 6 Comments

Willie Rennie announces Scottish zero rate tax plan

Last night in his annual speech to the David Hume Institute, Willie Rennie set out plans for a plan to help low and middle income Scottish earners by introducing a zero rate band of tax to go beyond the raising of the tax threshold. Because he’s also announced a plan to raise income tax by 1p to secure a £475 million investment in education, this new tax plan is going to be revenue neutral.

Both Liberal Democrats and Labour have announced plans for a 1p rise in income tax. However, Liberal Democrats are focusing on what you would get for it – more college places, reversing education cuts, a pupil premium and more nursery education. Labour’s is so complex that everyone is talking about the tax part of it. Fair play to both, though, for actually trying to use the powers we have.

Under Willie’s zero rate plan, Liberal Democrats would build on our record in government when we increased the personal allowance by over £4,000, helping to lift more people on lower incomes out of tax. Tax revenues gained by investing in education and boosting business by closing the skills gap would create a zero-rate tax band.

Willie  contrasted the progressive Liberal Democrat proposals with George Osborne’s commitment to increase the Higher Rate threshold from £43,000 to £50,000 by 2020, giving record-breaking tax cuts to the richest and costing Scotland £400m.

He said:

Posted in Op-eds | Also tagged , and | 5 Comments

LibLink: Willie Rennie: SNP obduracy on using tax powers shows party is no champion of progressive politics

Willie Rennie’s ambition for better education and health services in Scotland has been clear and so has his ambition to use the tax raising powers given to the Scottish Parliament. His plan for a penny on income tax for an almost half billion investment in education to introduce the Pupil Premium, extend nursery education and reverse cuts to college and schools funding.

The SNP, having squealed blue murder for years about not having enough powers to do anything, fails to use them when they are given them.

Willie often says these days that the SNP “talk left and walk right” and he has written a damning critique of the SNP’s approach in the Herald.

As it was a Liberal Democrat Secretary of State who delivered these new tax powers, it is perhaps not surprising that we were the first to propose using them to transform education in Scotland. By putting a penny for education onto income tax bands, we would raise £475 million a year.

Willie’s proposals have brought outrage from SNP and Tories alike. Finance Minister John Swinney said he would rather sacrifice public sector jobs (which in turn affects the most vulnerable) than raise tax rates. The Resolution Foundation says a tax rise is progressive. Willie challenges the SNP:

Posted in LibLink | Also tagged , , and | 17 Comments

Is the Basic Income Guarantee an idea whose time has come?

Way back when I was first involved in politics, the ideas that everyone should have a basic income and that tax and national insurance should be integrated were mainstream SDP/Liberal Alliance ideas.

The Greens have in recent years been the only party to advocate such a change but during the General Election, Natalie Bennett was unable to convince people that it was affordable.

This week, think-tank Reform Scotland has come up with a costed scheme to give every adult a basic income of £100 per week and every child £50. The authors, Liberal Democrat Siobhan Mathers and Scottish Green candidate James Mackenzie, acknowledge that there would be a cost, around £2 billion in Scotland, £12 billion across the whole UK and that personal taxation rates would have to rise by about 8%, but that nobody earning under £26,000 a year would be worse off. However, with 2 children, a £100k household would be over £1200 a year better off

It’s certainly radical, with those on lowest incomes gaining and those on £100,000 without children being around £2,200 a year worse off, but isn’t that what a progressive tax system is supposed to do? There is a question, though, around whether a £100k household needs to be mae £1200 a year better off courtesy of the state.

The report argues that there are seven big advantages of such a scheme:

Posted in Op-eds | Also tagged , , , , , and | 25 Comments

Rennie to SNP: Are you conservative or progressive?

Willie Rennie will challenge the SNP in a parliamentary debate on their budget this week to actually use the powers that are coming the Scottish Parliament’s way and raise the rate of income tax to pay for a £475m investment in education. The SNP, of course, are holding out for independence and have no intention of showing that the powers they have can make a huge difference. In their 9 years in office, they’ve not even used the tax-raising powers that came to Scotland with devolution in 1999.

Willie’s penny on tax for education is a bold move. Saying you’ll put up taxes is a risk for a party in our position, but this is no time to play it safe. Anyway, just from talking to people, I think that there is a sense that you get what you pay for and if you want world class public services, you need to put money into them.

Willie said:

Liberal Democrats will be using this debate to challenge the SNP to show whether they are conservative or progressive, whether they’ll keep talking left but walking right.

Liberal Democrats are the only ones calling for Parliament to actually use the new powers we’ll get in April. Why wait? There is no point in sitting around, twiddling our thumbs, when we could make a real difference to the life chances of Scots.

Posted in News and Op-eds | Also tagged , and | 10 Comments

Willie Rennie’s penny on tax for biggest investment in Scottish education since devolution

Willie and ACH on nursery visit

Finally, someone is actually planning on using the new tax-varying powers given to Scotland. Willie Rennie has made a big announcement on education this morning. He intends cleaning up the mess the SNP have made in education with 4 radical measures, paid for by a modest rise in income tax which will not affect anyone who earns £19,000 a year or less.

That £475 million investment will include the Lib Dem Pupil Premium, already successful in England and, thanks to Kirsty Williams, in Wales. That’s all about giving extra money to disadvantaged kids in school. Then there’s investment in nurseries and colleges, as well as a reversal of the SNP’s education cuts.

Posted in News | Also tagged , , and | 16 Comments
Advert



Recent Comments

  • John Waller
    @Steve 'Might this war have been avoidable?' Yes. You are right AGAIN On 6 August 2022 you asked: ‘Why does more blood need to be spilled before starting...
  • Chris Moore
    @ Peter Martin: well, Peter, LD seat count was up in 2001 and 2005 and of course was still higher in 2010 than in 1997. So it's simply not true that an unpopula...
  • Michael McDowall
    I was an elected to Hastings Council alongside Pam for a short period. A thoroughly good person and a fine Liberal and I am grateful for Paul’s fine words wh...
  • Geoff Reid
    The Tories will come back wherever they decide to anchor themselves politically. What happens to Labour is perhaps more unpredictable. They had internal problem...
  • David Symonds
    It will be interesting to see what happens in this Parliament. Starmerism appears to be a variation of the old Labour govt from 1974-9 which includes corporate ...