Uk politics

Why a mansion tax is wrong for Britain

There’s a huge amount of confusion surrounding the proposals for a ‘mansion tax’ and, more generally, taxation at the top end of the housing market. Old and novel arguments are rolled out by its proponents: that it is easier to tax wealth that can’t be taken offshore, or that the current level of taxation on high value property (generally perceived to be low) isn’t fair on first time buyers struggling to raise a deposit at the other end of the market. In reality, there are three main reasons why a mansion tax is unwarranted and potentially counter-productive, which I discuss in more detail in a Centre for Policy Studies report released

Cutting legal aid might actually <em>cost</em> money

This afternoon’s Lords debate on the government’s Legal Aid Bill promises to be a heated affair. The Independent’s interview with Baroness Scotland – Labour peer and former Attorney General — gives a taste, beneath the headline ‘Women and children could die because of legal aid cuts’. But even before we get into an emotional debate about domestic violence and hitting ‘the poorest and weakest’ — important though it is — there’s one potential flaw that could undermine the whole point of the proposal: it might not actually save us any money. Take benefit claimants, for example, who will now longer be entitled to legal aid when challenging decisions about their

James Forsyth

The government’s options for a child benefit tweak

Nick Clegg has confirmed this morning that the coalition is looking at how to tweak its policy of removing child benefit from families in which someone pays the higher rate of income tax. As I wrote in the Mail on Sunday, there are three options being explored. The first is designed to address the fact that, a family where one parent works and earns £45,000 while the other stays at home raising the children would lose their child benefit while the one next door where both parents are on £40,000 would keep theirs. This change would see families with one higher rate taxpayer lose only half of their child benefit.

Will Osborne accept the Lib Dem offer?

Try telling George Osborne that ‘tax doesn’t have to be taxing’ — I’m sure he’d laugh at the sentiment. The story this morning is that he has a grand, gritty choice to make ahead of the Budget: to tax income or to tax wealth. The Lib Dems have apparently agreed to relent on the 50p rate, but only if they get a mansion tax on properties worth over £2 million in return. The thinking is that, in the current political environment, the government must always be seen to be hitting the well-off in some way. So, will Osborne accept the offer? He and other Tories will certainly be tempted to

Salmond chooses the Brownite way

Can you trust someone like Alex Salmond to save Scotland from future crashes? The First Minister appeared on BBC1’s Sunday Politics earlier, where he was challenged about how he sees it. And it seems he may just be a graduate of the Gordon Brown school of Scottish financial mismanagement. In a Times debate on Friday,  SNP deputy leader Nicola Sturgeon said they’d use sterling — whether the Bank of England liked it or not — and would not need the Bank to be a lender of last resort because Scotland would be so sensible it wouldn’t need it. An interesting suggestion, given that the 1707 Union between Scotland and England

James Forsyth

Hilton’s return hinges on Cameron’s radicalism

It is a sign of the influence that Steve Hilton has on the Cameron project that there have been more column inches devoted to his departure from Downing Street than there would be to most Cabinet resignations. But even after he heads to California in May, Hilton will still be part of the Cameron brains trust. He is already scheduled to work on the Prime Minister’s conference speech. Hilton has, I understand, been mulling the idea of taking a sabbatical since last summer. His decision to go ahead and take next year off seems to have been motivated by a variety of factors. But those closest to him stress that

Which tax cuts do the public want?

YouGov’s new poll for the Sunday Times includes one set of numbers that will be of particular interest to George Osborne at the moment. It asks the public: ‘If the government has money available to cut taxes in the budget later this month which of the following tax cuts would you most like to see?’ Here are the results: With the news this week that fuel prices are at an all-time high and expected to rise further, it’s hardly surprising that the public support a cut in the taxes on it. The AA, among others, has already called on the Chancellor to abandon the 3p rise in line with inflation

Cameron’s pitch to women voters

David Cameron’s speech today is another reminder of how concerned the Tories are about losing their traditional advantage among female voters. The message that the Tories are cutting so that the country is passed on in a better state to the next generation is a direct response to the fact that the party’s polling has found mothers to be deeply concerned that their children will not have as good a quality of life as they have had. At the away day for Tory MPs last week, Andrew Cooper — the PM’s chief political strategist — said that talking about deficit reduction in these terms was crucial to winning over female

Fraser Nelson

May’s quiet revolution

Do you remember the great parliamentary battle over privatisation of police services? Me neither, which is why Theresa May, the Home Secretary, is proving a better minister than Andrew Lansley, the Health Secretary. The drive for savings in the police budget is leading two constabularies, West Midlands and Surrey, to outsource certain services. The Guardian has got hold of the tender documents and splashed with the story today. Yvette Cooper is angry — but, crucially, there’s nothing she can do. Theresa May doesn’t need legislation to enact this reform; it’s not even being done under orders of the Home Office. This is two police forces who would rather save money

Private policing is nothing new

‘Revealed: hidden government plans to privatise the police’, proclaims the Guardian headline this morning. The story is that, in an attempt to protect frontline services in the face of a 20 per cent cut in government funding: ‘West Midlands and Surrey have invited bids from G4S and other major security companies on behalf of all forces across England and Wales to take over the delivery of a wide range of services previously carried out by the police. The contract is the largest on police privatisation so far, with a potential value of £1.5bn over seven years, rising to a possible £3.5bn depending on how many other forces get involved.’ This

After Hilton

Perhaps, the greatest testament to Steve Hilton’s influence in Downing Street is that everyone chuckles when you ask if anyone will replace him. His role in Number 10 as the senior adviser was one he had carved out for himself so that he could work on what he wanted to. It is deliberately designed not to fit on any ‘org chart’, the kind of document that the post-bureaucratic Hilton has little patience for. Hilton was for years caricatured as being not really right-wing. But, in reality, the opposite is true — he was, in some ways, the most right-wing man in Downing Street. Few matched him on subjects like 50p

Fraser Nelson

Steve Hilton to leave Downing St

The Prime Minister’s strategy chief is heading to California to teach for a one year sabbatical, we learn. But who takes a one-year sabbatical in the middle of what’s supposed to be a five-year fight to save Britain? He did this before in Opposition, and came back. But this time, I doubt he’ll be back. He’s joining Stanford University as a visiting scholar, presumably to spend more time with his wife Rachel Whetstone who is communications chief for Google. Hilton’s friends say that, in his head, he never quite came back from California — his aversion to shoes (and sometimes manners) has led to much mockery. But overall, he is

Devo disunity

The trouble with the Unionist cause is that it’s so disunited. Douglas Alexander’s speech in Scotland today may appear to bring Labour in line with the Tories and Lib Dems by hinting at greater powers for Scotland in future, but the truth is that it’s just another piece of string in an increasingly tangled mess. And so we have Alexander saying that ‘we must be open minded on how we can improve devolution’s powers, including fiscal powers,’ while, we’re told, he’s also ‘cautious… about fiscal measures that undermine the stability of the block grant system used to fund the three devolved governments in Edinburgh, Cardiff and Belfast.’ We have the

Fraser Nelson

The time for Osborne to shed Brown’s 50p rate is now

Will George Osborne have a better chance to abolish the 50p tax than this month’s Budget? It would be unpopular, so it’s the kind of move he’d be unlikely to make before an election. The Lib Dems have something they want to trade: permission to raise the tax threshold towards £10,000. And two recent reports, by the CEBR (pdf) and IFS (pdf), have reinforced that this tax is losing money. At the heart of the 50p tax is a deeper question: is Osborne a transformative Chancellor who will change the terms of debate? Or is he doomed to operate within parameters set by Gordon Brown? I look at this in

James Forsyth

Europe is being strangled by the Franco-German alliance

David Cameron’s complaints at last night’s EU meeting about the lack of a growth agenda have, in part, been addressed by the new draft conclusions. Cameron — who was supported by the Dutch, Italians and Spanish — seems to have secured promises on the completion of the single market, deregulation and the services directive in the summit’s draft conclusions. This isn’t going to turn around the European economy. But it is a step in the right direction and a small, but possibly significant, victory for the PM.   I understand from sources in Brussels that there has been frustration with the extent to which the conclusions presented last night simply

Imagine if Cameron hadn’t vetoed…

When David Cameron headed to Brussels last December, it was far from certain that he would veto the proposed treaty. It was only when Nicolas Sarkozy proved totally uninterested in accommodating Britain’s demands that the Prime Minister decided that he could not sign up to it. In a way, Sarkozy did Cameron a favour. Imagine if Britain had got the safeguards the Prime Minister wanted and had signed up to the treaty. How would he then have reacted this week, when the Irish announced that they were going to hold a referendum on it? The pressure from the Tory benches to let the British people vote on it would have

So how much do you really like The Smiths, Dave?

David Cameron’s love of The Smiths has been tested numerous times, in the press, in person and at PMQs. But today, there’s new dimension to the saga. Johnny Marr, the group’s former guitarist, has announced he will delight fans and reform the band – but only if the Prime Minister steps down: ‘We won’t be reforming this week. Maybe if the government stepped down. If this government stepped down, I’ll reform the band. How’s that? That’s a fair trade, isn’t it? I think the country would be better off, don’t you? I’ll do it if the coalition steps down.’ As a dedicated fan, it’s certainly a tough call for Dave

Join The Spectator’s debate on immigration

‘Immigration: enough is enough.’ That’s the motion for The Spectator’s next debate, and also a major concern for many disgruntled voters. The Tories are currently miles off course for achieving their aspiration of reducing net migration from the ‘hundreds of thousands’ to the ‘tens of thousands’ in this Parliament. Should they do more to meet it, so that the UK’s economic and cultural fabric isn’t frayed irreparably? Or should we be glad that that they’re not, because immigration is a crucial ingredient for growth? These will be the questions at hand for our panellists, who are Dominic Raab, Frank Field and Kiran Bali speaking for the motion, and David Aaronovitch,