Thanks to the IEA for a good event last night

The IEA had 100 acceptances for a full house last night to discuss my book  “We don’t believe you”. (The book is  available on Amazon) The questions went on for almost two hours . We discussed everything from the collapse of traditional political parties to Brexit, from the Trump phenomenon to austerity economics, from  the middle Eastern wars to the distrust in the media. I will draw on parts of the discussion in blogs to come.




Don’t forget the middle

Labour claims to stands up for the poor, the dispossessed, the unemployed and the unfortunate. The Conservatives seek to show that many Labour policies would in practice damage them, as they would damage the economy as they memorably did in 1975-9, and in 2007-9. Fewer jobs, less growth and more unemployment as they produced do not cut poverty. Conservatives have sought to show that they too want to help those most in need, promoting work whilst supporting welfare. In government Conservatives have pursued higher minimum wages, less tax on those on lowest incomes and a range of other measures. In the leadership election there are furious bids by various candidates to set out what more can be done for the poorest in our community.

Amidst all this politics someone needs to stand up for the many who are not on higher incomes but who earn enough to get little or no benefit help and who have to pay substantial tax bills. Mrs May seemed to understand this in her early comments as PM about the “just managing”, though there was a danger this language was a bit patronising and downbeat. What we need is a vision of how the many who work to provide for themselves and their families can aspire to higher incomes and better lifestyles feeling the government is on their side rather than seeing them as an audience to tax and regulate in pursuit of wider social goals.

I want the next government to take the taxes off aspiration. Why do we face such high taxes on buying a better home or on moving to a different location? Why do we have to pay such large taxes if we want to buy a new or better car? Why does the government charge VAT on various home improvements? Why does the government want to reduce the number of people working for themselves by claiming they are not truly self employed for tax reasons?

There are limited ways out of low income and no assets. To do it people usually have to buy a home of their own and spend time and money on improvement. The range of tv programmes about moving and home improvement point to the interest in this opportunity. People do need to keep a decent proportion of their work income, to reach the point where they can afford to save. Building your own business is one route to a better lifestyle with assets in your business. It should be feasible for the average person, not needing super human skills to run the gauntlet of regulatory compliance and tax challenge.

I would like the next government to make it easier for people with aspirations to achieve their aims, and for more of the freedoms and lifestyles of the better off to be available for the many. Instead of government seeking to regulate our conduct more and tax success wherever it finds it as if it were a problem, I want a government that rewards those who want to do more for themselves and their families, and who given the chance will do the right thing.




Wokingham Post Office

I have received this letter from the Minister regarding the move of Wokingham Post Office. I will be taking up her offer of a further meeting.




Mrs May’s non EU policies

https://johnredwoodsdiary.com/

Mrs May set out a strong  vision of a fairer and more prosperous UK in her initial statement of beliefs as she became Prime Minister. It hangs on the wall in 10 Downing Street as a reminder to visitors of what she intended. Unfortunately in office she was unable to make progress with it.

One of her mistakes was to appoint as Chancellor someone who did not buy into her vision, and who had no wish to use more public money to achieve some of the objectives she wished to set where state intervention was seen as part of the answer. The Chancellor did not conceal his wish to dilute and delay Brexit. He used Brexit as an excuse to withhold cash from public services or tax cuts on the grounds he wanted a “war chest” against a possible exit from the EU which he always wrongly thought of as damaging.  The PM wanted more money for schools to help raise standards and give people a better start in life. She wanted more money for the NHS, which was eventually extracted after a long battle. She probably wanted or needed more money for social care, though that remains a series of problems in search of a policy.

She saw social care as a major issue. I remember being sounded out by the Downing Street Policy Unit on possible reform prior to the 2017 election. I advised a careful approach and suggested that first the government should issue a general document describing current policy and outlining the problems as they saw them, to invite responses and to trigger a national debate before trying to formulate answers. They said they were interested in how Margaret Thatcher had run things, and I reminded them I had helped Margaret approach welfare reform in this way with a big public conversation and enquiry before offering change. I was very aware from my work as a constituency MP that some  people with no direct family experience of care homes did not know that the elderly person’s home had to be sold to pay the bills in many cases, and this needed to be more widely understood to have a conversation on care.

Unfortunately advisers decided they could invent and land a major reform of social care using a General election as a brief period to sell their ideas to the voters. Mrs May accepted a scheme for the 2017 election Manifesto that sounded like the old death tax that Conservatives had rejected under Labour. It turned out to be  a predictable disaster which the PM had to reject during the election campaign itself, as criticism of the social care policy drowned out other matters and came from many potential Conservative voters.

She was keen to encourage more housebuilding and put in place various schemes and directions to do so. There was progress in increasing the build rate as she hoped. She saw the need for improved standards in schools, building on the reform work of the previous government. It was not a smooth path given the antipathy of teachers to the Gove reforms, and the shortage of cash for the lower funded schools around the country. She continued to develop and promote her agenda to curb modern slavery and to tackle discrimination.

The bold aim to narrow the  north-south divide, one shared with many previous governments, made some progress with welcome acceleration of investment and modernisation in some of the great northern and Midlands cities.  

The aim to develop a modern industrial strategy made little progress. The industrial strategy was damaged by the ever dearer energy which made it difficult to keep or expand energy using industries in the UK. The car industry strategy was damaged by the Chancellor’s higher taxes on cars and the general government assault on modern diesel vehicles. The Business Secetrary, like the Chancellor, was downbeat throughout about the opportunities and prospects after Brexit. The various car factory closures in the UK and rest of the EU and currant state of the uk steel industry shows the failure of their so called industrial strategy.




Nomination day

https://johnredwoodsdiary.com/

Today we will learn which of the many possible  candidates have eight MP supporters and the will to contest the leadership. We have seen a long phoney war. There will be fewer candidates than the commonly touted 11.

Esther Mc Vey has come up with the clearest and strongest position on the EU. She has stated we must leave by October 31 with no further delays. She is a good presenter of Conservative views, using language that cuts through well and standing up to the abuse and attacks that come with the job. Like all the candidates so far she voted for the unacceptable Withdrawal Treaty on the third vote.

Several candidates have been diverted by stories of their past drug taking. As someone who did not take drugs because it was a criminal offence, I can say these revelations are not helpful to them,  but  have not proved to be a bar to high office. Mr Gove should not be supported for his long and futile support of the Withdrawal Treaty, his willingness to delay exit longer and his ill thought through views on VAT and sales taxes.

Boris has  said the Withdrawal Treaty is dead and any negotiation with the EU would have to encompass both withdrawal and future relationship matters. This is reasserting the position in the Conservative Manifesto of 2017. Given the attitude of the EU it should mean we just leave with or without free trade talks and a mutual agreement to avoid tariffs and new barriers during the talks. He has rightly stressed we must leave the EU with no further delays by 31 October.