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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Recent Comments

  • User AvatarTony Greaves 18th Nov - 10:47pm
    Why does LDV not report the results properly with the votes cast? Just putting %%% is less than half the story. They are available easily...
  • User AvatarKatharine Pindar 18th Nov - 10:41pm
    Arnold, that was a magnificent piece of prose writing, so well articulated, so reasonable, and yet so passionate and sad at the same time. It...
  • User AvatarPeter Martin 18th Nov - 9:08pm
    @ JoeB, I normally agree with Stiglitz but not this time. A two tier, or a multi tier, euro wouldn't really solve anything. In every...
  • User AvatarRichard Easter 18th Nov - 8:51pm
    And that is why people voted for Kennedy in 2005, Clegg in 2010 and now Corbyn.
  • User AvatarGlenn 18th Nov - 8:49pm
    The cut price less sonorously Machiavellian British Kissinger, but only because he as a squeaky voice.
  • User AvatarPeter Martin 18th Nov - 8:46pm
    @ Andrew Melmouth, You could be right about John Lanchester. There are those who do understand what a complete cock up the introduction of the...