Posts Tagged ‘mansion tax’

Miliband could have a legacy even if Labour lose

17/04/2015, 08:04:26 PM

by David Ward

Most people don’t realise that the guy who invented the computer was a bloke called Tommy Flowers who worked for the Post Office.

Sure Turing made some logic sketches, but it was Flowers who designed and  actually built the machine that broke the German codes. After the war he thought there might be something in it. He wasn’t allowed to say he’d built one before but he took his idea to British banks for funding to build another one. Of course they laughed him out of the office, the Americans took over the industry and the rest is history.

I mention this story because it shows big ideas can quickly become bigger than their creators, and I think Ed Miliband could be on the verge of a big change too.

It’s not exactly news that the post-Thatcher consensus is coming to an end. You only need to look at the fracturing of politics a la the late 1970s to see that the predominant mood out there is uncertainty.

As we know, the entire case Ed has been making since 2010 is that the left doesn’t have to accept rampant capitalism on its own terms. We don’t have to accept that those at the top should reap unsustainable rewards. We don’t have to accept that markets and big corporations can’t be reformed so society and employees benefit too. And we don’t have to accept that people in work still don’t earn enough to live on.

That’s been the pitch. It’s seen him derided in many quarters – even in his own party on occasion. In any normal circumstance Labour should be expecting a chastening during this campaign.

But the funny thing is it hasn’t quite happened. It’s taken a few years of sharpening to get the pitch right but Labour’s message is beginning to cut through. Take a look at this Ipsos Mori published a word cloud of the issues that people have remembered from the last few days. Since the first few debates Ed’s approval ratings have improved markedly.

(more…)

Facebook Twitter Digg Delicious StumbleUpon

What Ed Miliband should have said to Myleene Klass

18/11/2014, 12:14:03 PM

by Atul Hatwal

Myleene Klass is a lucky woman. She went on ITV’s Agenda last night, talked nonsense about taxation and should have been ridiculed.

Comparing taxing a glass of water to higher tax rates for properties worth over £2m is idiotic. But because Myleene was up against a hesitant and tentative Ed Miliband, she has emerged this morning in the press as an anti-tax Boudicca.

In his exchange with Myleene, Ed Miliband failed on two counts: first, to challenge the notion that taxing more expensive properties at a higher rate was somehow arbitrary and second, to highlight the crushing inequity of the current council tax system.

Taxing property is not some on-the-hoof fancy dreamt up by the Labour party. From the Window tax of 1707 onwards, it’s been central to how government raises money as long as the United Kingdom has existed.

The methods might not have been perfect, but as a principle, the progressive taxation of property is anything but arbitrary.

And the reason a mansion tax is being discussed is that the current system of council tax is grotesquely unfair: people with the lowest value properties pay proportionately much, much more than those with more expensive homes.

In Kensington and Chelsea, someone at the upper rate of the lowest council tax band, with a property value of £40,000 pays 17 times more than a householder with a £2m property, as a proportion of their property value.

Even at the start of the highest council tax band, with properties at £320,000, the owner will proportionately pay five times more than someone with a £2m property.

The scale of inequality rises as the value of properties increase.

(more…)

Facebook Twitter Digg Delicious StumbleUpon

A good day for Ed Miliband but the elephant is still in the room

14/02/2013, 01:44:26 PM

by Atul Hatwal

The roll-out of the 10p tax rate pledge was a reminder of how things should be done. Expectations were expertly managed in the run-up to the speech, the announcement was genuinely striking, and the government was caught on the hop. There was no abstract talk of responsible capitalism, no uncosted black holes opening up and the distinction with Gordon Brown’s tarnished brand was clear.

This was good economics and even better politics.

Yes, it might be better if the coverage 10p tax rate band was broader but it needs to be affordable and importantly this is a powerful signal of where the party stands.

The headlines tomorrow will be pleasing and the pressure is now on George Osborne to produce an equivalent rabbit out of his hat for next month’s budget. It’s the type of bold move by Labour that could force the chancellor into a rushed response that then unravels: “Pasty tax” redux.

But, and there is big but, as good as the delivery and content of today’s policy launch was, it doesn’t address the fundamental fear the British public have about Labour.

Earlier this week the Guardian’s ICM poll gave Labour a 12 point lead over the Tories, the biggest since May 2003. Yet, below the topline, was evidence of Labour’s lack of progress on the central issue of economic competence.

Asked to identify the main reason for our current economic problems, 29% opted for Labour’s “debts … racked up to finance unsustainable spending.” This is same as last May. In comparison 23% blamed government cuts and 21% bankers for failing to lend to business.

Labour’s problem with voter perceptions on the economy is often described in terms of the deficit, but this isn’t quite right. As far as the public are concerned, the deficit is the symptom, Labour’s spending is the problem.

(more…)

Facebook Twitter Digg Delicious StumbleUpon