Tag Archives: tax cuts (Lib Dem)

Chart of the day: how spending on day-to-day public services will have been cut by 37% by 2018-19

It is simply not true – as our critics on the left pretend – that we are slashing and burning the state. By the end of this Parliament, public spending will still be 42% of GDP. That’s higher than at any time between 1995 and when the banks crashed, in 2008.

    Nick Clegg, 10th March 2013

It’s a soothing line from Nick Clegg, designed to reassure Lib Dems that the Coalition’s austerity programme is simply curbing the spending excess of the Blair/Brown years.

Posted in News | Also tagged , , , and | 24 Comments

New poll: Voters credit low-earner tax-cuts to Lib Dems, Clegg’s ratings spike following Farage debate challenge

Here’s a poll finding that will relieve Lib Dems and worry Tories – according to Ipsos-Mori more voters (45%) credit the Lib Dems with the Coalition’s tax-cuts than credit the Tories (33%):

tax cuts lib dme credit ipsos mori

Posted in News and Polls | Also tagged , and | 31 Comments

Jeremy Browne questions wisdom of ratchet effect on tax cuts while the deficit remains so high

Jeremy BrowneThe Huffington Post reports some interesting comments by Jeremy Browne, Lib Dem MP for Taunton Deane and former foreign and home office minister. Browne expresses reservations over campaigns to raise the threshold further as a method of seeking to attract credit for the policy, suggesting that the Lib Dems should do so by reminding voters of the substantial increase that has already taken place.

Here’s an excerpt from the piece:

A former Lib Dem minister has criticised Nick Clegg’s flagship policy of pushing to increase the amount of money people can earn before the pay income tax.

Jeremy Browne, who served as a coalition Foreign Office minister and Home Office minister, said the Lib Dems should be careful not to message to voters there was “money to splash around” given the size of the deficit.

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Uncomfortable truths from the IFS on public spending and tax cuts but cautious optimism on economic growth

Last week, the highly-respected Institute for Fiscal Studies produced its annual “Green Budget”: its attempt to inject some realism into the national debate on the economy ahead of the chancellor’s actual budget in March.

The document makes for uncomfortable reading in parts, particularly as we head towards another general election in which the complicity of silence on deficit reduction is likely to be as deafening as it was in 2010.

IFS borrowingDeficit reduction: significant progress, but some way to go

Starting with the deficit, the IFS’s conclusions are stark. Had the government not taken steps to increase taxes and cut spending in the years since 2008, they estimate that the deficit would have reached 10% of national income by 2018-19. Because of the estimated 16.7% permanent reduction in economic capacity caused by the crash of 2008, 98% of that deficit would be “structural” – i.e. would not be expected to reduce naturally once growth picked up:

For an economy such as the UK, this level of borrowing would have been unsustainable on an ongoing basis. Public sector net debt would have increased markedly year-on-year, likely surpassing 100% of national income before the end of the current decade, and 200% within the next two decades.

Posted in Op-eds | Also tagged , , and | 30 Comments

Opinion: Making allowances – 12 conclusions about the Personal Allowance policy

CentreForum today published ‘Making allowances’ – a paper all about the Lib Dems’ flagship policy of raising the income tax Personal Allowance. Here are some of my conclusions – some obvious, some more obscure – to help inform future tax cuts.

1) The costs are huge. The coalition’s Personal Allowance increases have cost £11bn, and the Lib Dems’ minimum wage tax target would cost at least the same again. With this combined total, we could (roughly) reduce VAT to 15%; scrap council tax or business rates; easily deliver quality universal childcare; or

Posted in Op-eds | Also tagged , and | 16 Comments

Nick Clegg’s “worker’s bonus” – what I said about it on BBC’s Daily Politics

stephen-Tall-Daily-PoliticsI guested on BBC2’s Daily Politics on Monday to discuss Nick Clegg’s announcement that he wants the Coalition to offer a “worker’s bonus” in the next budget, taking the personal allowance up to £10,500 – beyond the £10,000 that was promised by the Lib Dems at the 2010 election.

The other two guests were ex-No. 10 Labour policy wonk Matthew Taylor, now chief executive of the RSA, and Conservative backbench MP Dominic Raab.

You can watch the 10-minute debate here (til 25th November).

Here’s my view in 6 sentences:

Posted in News | Also tagged , and | 5 Comments

David Cameron’s speech: meh, bah and hmm.

David Cameron - head in handsI missed David Cameron’s speech to the Conservative party conference today. Or, rather, I didn’t see or hear it, which isn’t quite the same thing as missing it.

Meh

But it sounds like, by missing it, I didn’t miss much. There were no dramatic announcements, no new initiatives. Yes, there was talk of the need to “nag and push and guide” young people to either “earn or learn” – the Department of Work and Pensions reports over a million people between the ages of 16 and 24 are …

Posted in News | Also tagged , and | 15 Comments
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    Expats I was pointing out that the NHS is a National Health Service and was designed to serve a nation state. And this is true,...
  • User AvatarJonathan Hunt 23rd Jan - 11:38pm
    Pensions are just wages deferred. They belong to workers, not bosses. Those who take them, use them for other purposes or fail to fully fund...
  • User AvatarPeter Martin 23rd Jan - 11:28pm
    @Rob Wheway, "Almost all of the other countries of Europe were overrun by foreign armies at least twice in the last century. That is the...
  • User AvatarDavid Raw 23rd Jan - 11:05pm
    @ expats Glad you mentioned the Poles and the Czechs. Here's a brief reminder of the most successful squadron (303 Squadron) in the Battle of...
  • User AvatarSteve Way 23rd Jan - 10:35pm
    Well there is a lot to swear about at the moment!!
  • User Avatarexpats 23rd Jan - 10:17pm
    Glenn 23rd Jan '18 - 7:23pm........... The thing is the NHS was developed by British Governments to serve the “sainted” locals. It is after all...