BUDGET BETTER GO WELL.

 

TAX AND SPEND

I think the fevered talk of plots to dislodge the Prime Minister is exaggerated. Whoever is PM on Brexit Day better stand by for massive criticism either for paying the Europeans too much or keeping us too close to the EU. Better to leave Mrs May to take the flack is surely the wise course for aspiring leaders. Reports that some Tory MPs want to go into opposition to refresh the party are ridiculous.

All that said the government is in a fragile state and is relying on Philip Hammond to deliver a good budget next week. I’ve got a lot of time for Phil The Till. When you look around the Cabinet table and see charlatans like Johnson and Gove, there is something reassuring about the grey man with his spreadsheets. He knows Brexit is a dangerous threat to the economy. He knows we are spending billions servicing our debts. Yet he is bated for exuding gloom when he should be apeing Johnson’s unfounded cheerfulness.

On Wednesday the Chancellor ought to loosen the purse strings to help with housing, the NHS, and elderly care. He needs to address our woeful productivity and skills record. But he should be bold enough to put up some taxes to pay for it and go back on a manifesto promise to raise the 40p income tax threshold to £50,000. The elderly should have to pay some National Insurance to begin the task of tackling intergenerational unfairness.

Unlike many commentators I don’t think a General Election is at all likely so now is the time in the political cycle to take a risk with incurring the wrath of those opposed to any tax rises.

But Phil Hammond faces strong opposition in his own party. Former Minister Nick Boles wants the Chancellor to scrap his deficit reduction target. He believes it is fine for the annual deficit to remain at 2.6% indefinitely. This in the face of an Institute for Fiscal Studies warning the deficit could be on course to be £20bn higher than expected by 2021/22.

GORDON BROWN.

The former Prime Minister has been in the North this week to boost sales of his memoirs. I had a lot of time for the granite integrity of this Scottish son of the manse. His one great achievement in No 10 was in October 2008 when he showed global leadership in the middle of the economic crisis.

His great flaw was his undermining of Tony Blair in his desire to be Prime Minister. Why did he want the job so badly? When he got it, he didn’t know what to do with it. Was he a continuity man for New Labour or something else?

He claims his differences with Blair were over policy and he had nothing to do with the personal attacks. The fact is Brown could have reigned in his spin doctors Damian McBride and Charlie Whelan who were constantly briefing against the Prime Minister.

Blair should have sacked Brown after the 2001 General Election, but it’s not just weak Prime Ministers who find it hard to dismiss troublesome Cabinet colleagues.

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WILL THE GOVERNMENT END GIG ECONOMY ABUSES ?

 

 

 

 

The gig economy is nothing new. Before the Dock Labour Scheme of 1967, there was widespread use of casual labour in ports like Liverpool. Dockers depended on a tap on the shoulder to get work. The rise of the unions in the sixties and seventies forced back irresponsible bosses but the predatory instincts of capitalism are always waiting in the wings and have returned now with the gig economy.

Now before you fear I’ve been spending too much time with Shadow Chancellor and avowed Marxist John McDonnell, I should say that I believe private enterprise should flourish and make profits. Owners are entitled to benefit from their bright ideas and risk taking in setting up businesses and shareholders should get a return on their investment. But workers are also entitled to fair wages and secure employment if they want it.

A report was published this week by the former aide to Tony Blair, Matthew Taylor, which could have major implications for business, employees and “dependent contractors”. The last category is one we are going to have to get used to. It is the new name created by Taylor to describe the current position that former dockers found themselves in as they waited anxiously for a few hours work on the dockside.

Nowadays the demand of society is not for casually employed dock workers but for taxi drivers and delivery services. Digital technology has made it possible for people to gain casual employment by identifying a need on line. Many people want work that fits around their lives not employers. Rebecca Long -Bailey and the Labour Party need to recognise this before embarking on a crusade on behalf of workers who, when they look round, may not be behind them. She’s the Salford MP who is also shadow Business Secretary and says using Uber taxis is “morally unacceptable”. I prefer black cabs but I recognise that not everyone employed in the “gig” economy is trapped there by a ruthless employer.

Some are and that is why Taylor is right to call for good work for all with a baseline of rights and a ladder of progress. There is a need to distinguish between the genuinely self-employed and “dependent contractors”. Self-employed pay lower taxes in recognition that they don’t get pension and sick benefits. (There is no sign the government are going to look again at raising their National Insurance contributions). Meanwhile Taylor identifies “dependent contractors” as people working for employers who rely on zero hours, short hours or agency contracts when they should be planning their employment needs better. These workers should receive sick pay and holidays.

The reform would end the confusion which allows firms like Deliveroo to claim their workers are self-employed when in fact it is difficult for them to turn down work.

Over a million people are employed in the “gig” economy and they have contributed to keeping the employment figures healthy while we are in danger of heading into a Brexit economic downturn.

Whether the government will implement the Taylor Report is doubtful. The Prime Minister says she would need opposition support and Labour is already saying it doesn’t go far enough.

I promised to report on my lunch with Vince Cable. I didn’t make it due to a three hour delay on the West Coast mainline. Bring on HS2

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CAN LABOUR STOP A LANDSLIDE?

 

CHANCE TO VOTE FOR SOCIALISM!

Since 1983, socialists have craved a red meat Labour manifesto that they could vote for. Now is the chance for them to come out in their millions and ensure that Mrs May doesn’t achieve a landslide.

Labour has improved its poll rating since the election was called, but the gap remains large. There are many attractive features in the manifesto around energy prices, housing, university fees, nationalising the railways and world peace. Labour is tapping into a feeling that business and the rich should contribute more. After all it is ordinary people who have been paying for the excesses that caused the crash in 2008.

But the party remains vulnerable on the cost of it all. Salford MP Rebecca Long-Bailey is the Shadow Business Secretary, and touted by some as a future leader of the party. She will need to do better than in a radio interview on the manifesto launch day. She was asked how the ending of the benefits freeze, not raising the retirement age beyond 66 and scrapping the housing benefits cap was going to be paid for. In each instance, she casually said they would be subject to review when Labour was in government. It isn’t good enough. The party knew the Tory hawks would be looking for unfunded promises, but Corbyn has gambled that his vision for a socialist Britain will pay off.

Meanwhile the transformation of the Tory Party from an organisation run by posh boys to one where strong and stable Theresa is in charge is well under way. Pledges on workers rights, council house building and intervention in the energy market may seem brazenly opportunistic, but the Prime Minister has forged a link with northern working class people that may pay off spectacularly.

This is because the Regressive Alliance bringing the Tories and UKIP together was demonstrated in the recent local elections, whilst the Progressive Alliance of all those parties representing the centre left isn’t working so far. The rallying point should be around the Lib Dems call for a second EU referendum. Leader Tim Farron should stick to that. Putting the legalisation of cannabis in the manifesto just plays to his enemies stereotyping of the party.

SNAP ELECTION HISTORY.

What does post war history tell us about surprise General Elections? The story is mixed for incumbent Prime Ministers. Clement Attlee came a cropper when, having won narrowly in 1950, he called another election the following year to increase his majority and lost to Winston Churchill. As soon as Anthony Eden succeeded Churchill, he successfully went to the country in 1955 to get his own mandate, a course not followed by Gordon Brown when he took over from Tony Blair in 2007.

Harold Wilson performed the double election trick twice. He increased a small majority in 1964 to a large one in 1966. Then in February 1974 Tory Prime Minister Ted Heath went to the country in a similar manner to Theresa May seeking a specific mandate. Heath’s was to defeat the miners. He lost and Wilson, after a summer of minority government, gained a slim overall majority in the autumn.

More recently the Lib Dems could have refused to serve in a coalition in 2010 but the fear always was that David Cameron would have formed a minority government and won an overall majority in a quick return to the polls.

Would he have done? Will Mrs May’s landslide gamble pay off? We shall soon know.

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FREE DEBATE AT LABOUR CONFERENCE?

 

30 YEARS AGO……

Exactly thirty years ago Neil Kinnock launched his famous attack on Liverpool’s Militant Tendency at the party conference. His reference to taxis being hired by a Labour council to take redundancy notices to the city’s council staff has become legendary or infamous depending on your point of view. The speech marked the beginning of a necessary purge of Trotskyist infiltration. It also marked the last time the Labour conference was a showcase for disunity.

For over a decade the Labour conference had laid bare its divisions for the TV audience to see. That had to be stopped. However over the years, and particularly after Tony Blair’s public relations team took over in 1994, all dissent was marginalised. Real debate was discouraged and policy was formed in the National Policy Forum which was firmly in the grip of the leadership. It was an overreaction to the mayhem of 1975-85.

So what’s going to happen this weekend now that the party is lead by Jeremy Corbyn, the arch dissenter. He wants real debate in a democratically run party. Let’s hope we get it. The public might respond well. They seem to have liked his style at Prime Minister’s Questions. On the other hand a demonstration of total policy incoherence might turn them away. That was what worried the party managers under Kinnock, Blair, Brown and Ed Miliband.

I am certainly looking forward to my second visit to the south coast to see the rebel of thirty years standing now in charge. Some are speculating this will be his only conference as leader, but I wouldn’t be so sure. Over the next few months leading up to important elections next May, Corbyn has the ability to rally different sections of the electorate to his new way of doing politics. There are many Scots who deserted the party out of frustration with austerity rather than any desire for independence. If they come back in numbers in the Scottish Parliament elections, Corbyn’s critics will be muted. Then there are Green supporters impressed by his environmental policies and general radicalism. But the largest group of all are the young, the poor, people disillusioned with politics or who have never engaged. Some were mobilised by the Corbyn campaign. Will they stay around? Will others join them? Will they watch the coverage of a party conference for the first time?

LIB DEMS AND CORBYN.

Whilst Scots, Greens and radicals might rally to Corbyn, the Liberal Democrats were hoping this week that they could occupy, what they saw as, the huge gap opening up in the middle of politics. Although at one fringe meeting after another I heard speakers saying they weren’t in the centre, they were Liberals they nevertheless believe the Tories have swung right because they are no longer in Coalition with them. With Corbyn off to the left, they see an opportunity. What they must avoid is opening the door too easily to defecting Labour MPs. They mostly won’t be true Liberals, just careerists trying to save their seats.

If Labour’s conference in Brighton is going to return to real debate, it is only fair to point out that the Lib Dems have always maintained that tradition. The debate last Monday on the Trident nuclear weapons system was open and excellent.

Perhaps the Conservatives will try it in Manchester next month but don’t hold your breath.