Archive for August, 2012

Chilcot remains the test of Labour’s new unity

03/08/2012, 07:00:40 AM

by Kevin Meagher

The ripples in Labour’s millpond have stilled. An eerie, becalmed peace is left. Nothing succeeds like success and Ed Miliband has reached the summer recess with reason to feel quiet satisfaction. His frontbench team has become more effective, the government benches less so. His party is united, the coalition fractious and sclerotic.

The prime minister will have his work cut out ahead of the party conference season, repairing relations with his backbenchers, keeping the Lib Dems sweet and removing Boris Johnson’s tanks from his lawn as a seemingly smooth-running Olympics emboldens the London Mayor in his bid to one day replace Cameron.

Ed Miliband, in contrast, can kick back and plough through his summer reading list uninterrupted. Labour’s opinion poll lead remains, if not spectacular, then the next best thing: consistent. Miliband has developed themes around responsibility and fairness which continue to resonate. He has also been lucky in his opponents too. His ‘predators’ speech at last year’s Labour conference, much maligned at the time, is vindicated with every new detail that emerges from London’s square mile, with allegations of HSBC laundering drugs money the latest seamy instalment.

But Miliband has started to make his own luck too. Tales of chaotic organisation and accusations of gauche appearances in the media and at prime minister’s questions are no longer made. The Labour machine, replete with a new top team of senior directors, is beginning to purr once again. Candidates for November’s police commissioner elections – the next big electoral test – are already in place while the Conservatives struggle to fill the roles.

Meanwhile, prolonged recession is hardening the public mood against ministers’ hoary claim that they are “dealing with the mess Labour left”. Their excuses have rapidly declining purchase as the economy flatlines. The writing is on the wall when even the IMF starts inching away from George Osborne’s deficit-masochism.

Voters’ acceptance of belt-tightening was only ever going to be short-term. Each tale of corporate and banking excess tests the patience of a frustrated public which contrasts its own sacrifices with our mangy corporate elite’s lack of restraint.

The result? All the big problems in British politics are shovelled against David Cameron’s door this summer. A one-time (self-styled) ‘heir to Blair’ he lacks the older man’s panache and luck. This is painfully evident with Blair now returning to British public life in a series of carefully choreographed interviews and appearances.

His re-entry into Labour’s orbit has been especially tentative. His presence at the party’s gala sports dinner recently and the announcement that he will take on a role advising Ed Miliband on the Olympics’ legacy generated a frisson of controversy on Labour’s left, but it was largely synthetic. And predictable. Those who dislike Tony Blair will always now dislike him, whatever he says or does.

His new advisory role is free-form and, in reality, little more than an organising concept for either man. For Ed Miliband the value of a returning Blair is to show that the Labour tribe is reuniting, cynically, perhaps, given the growing sense that David Cameron seems set on emulating Ted Heath as a one-term Tory prime minister; but coming together nonetheless. Talent from across the party now supplicates itself to a leader many did not want but who all now realise is going to lead Labour into the 2015 general election, come what may.

(more…)

Facebook Twitter Digg Delicious StumbleUpon

Labour needs to stop moralising about tax

02/08/2012, 07:00:40 AM

by Peter Watt

Is paying tax a moral duty?  It is the sort of question that has those on the left and right frothing at the mouth.

The question has recently come to the fore once again with row after row over tax avoidance by some of the rich and famous.  On the face of it the case is obvious.

At a time when budgets are being squeezed and services cut there are people who are really suffering.  Jobs are going and much valued support services to some of our most vulnerable are being cut so that we can reduce the amount we are borrowing as a country.

We all need to do our bit by paying our taxes and if you choose to deliberately avoid paying yours then what does that make you?  Selfish?  Unfair?  That’s certainly the common view; and with George Osborne and Ed balls united in a desire to clamp down on such “aggressive” schemes it seems that there is a degree of consensus; paying tax is our moral duty.

But, on the other hand I have an ISA that means that I don’t have to pay tax on any interest I accrue.  I take advantage of duty free (tax free) shopping when I travel abroad.  I took advice on planning my pension and made sure that my arrangements were tax efficient.  And I am hardly alone, millions of people do it.  If you have to undertake a self-assessment then you don’t start the process trying to maximise what you have to pay you look to minimise it.

It may not be in the same league as the Jersey based K2 scheme made famous by Jimmy Carr, but it is still tax avoidance.

And companies rightly look to make tax-efficient investment decisions.  Their duty is to maximise returns for shareholders and part of that is to legally minimise the tax that they have to pay.  Paying less tax means that they can maximise reinvestment in innovation and jobs; which will in turn generate more tax.

Bigger profits mean better returns for shareholders, many of whom are millions of people with savings and pensions schemes.

When the Labour party bought a London property a few years ago, it used a company to buy it.  The party did that so that when they sold the property it would be more tax efficient and indeed, when it was sold it saved tens of thousands of pounds as a result.  Quite right too!

(more…)

Facebook Twitter Digg Delicious StumbleUpon

Bringing the “service ethos” into schools is already making a difference

01/08/2012, 07:00:03 AM

by Kevan Jones

Last month Labour’s education and defence spokesmen, Stephen Twigg and Jim Murphy, outlined some ideas on how the role of the armed forces and the “service ethos” could be expanded across our education system.

Their ideas included having mentoring services run by veterans or reservists, increasing the number of former service personnel trained as teachers, having more Combined Cadet Forces (CCF) in state schools and developing specialist “service schools”, including academies, all in order to boost achievement and social mobility. This week Labour released a paper on the proposals as part of our policy review.

Perhaps predictably a chorus of groans followed the announcement, much of it from the Labour blogosphere, about how this showed Labour betraying its working class origins and aligning itself with “militaristic” values.  Not only do the criticisms misunderstand or misrepresent the aims of these ideas, but they fail to understand the military in ways that can be as short-sighted as they are offensive.

Many of the criticisms also overlooked the fact that many of the ideas proposed already exist to the huge benefit of schools in the state sector. I know this from the experience of Walker Technology College in Newcastle.

Walker Technology College was set up during the last Labour Government in 2009 as a pathfinder school, with a Combined Cadet Force (CCF) contingent of 20 cadets. It now has over 100 cadets enrolled and pupils have the opportunity to choose CCF as a curriculum subject.

As part of this, students are able to achieve an army proficiency course accreditation, the Duke of Edinburgh award, a BTEC in public uniformed service and a young first aiders’ award. Since the course was established it has consistently proved to be one of the highest performing and popular awards in the school.

Hard-work, comradeship, respect, responsibility and team work are the essential “soft skills” that have the CCF contingent have brought to Walker College. The “service ethos” that underpins the CCF develops and hones this vital set of life skills, which are highly sought after in a jobs market that is only getting tougher for young people.

It is essential that we maximise the impressive leadership skills that service men and women develop during their time with the armed forces. The CCF course at Walker College has provided former service personnel with a challenging, fulfilling post-service career, which has been to the benefit of young people in Newcastle, increasing attainment, confidence and opportunity.

(more…)

Facebook Twitter Digg Delicious StumbleUpon