Britain, Economic, Government, Politics, Society

Tax policy and the hidden truths

BRITAIN

Tax Return

For various reasons it has suited both the Labour and Conservative parties not to have tax policy turned into a central issue in the election campaign.

Under a Labour government led by Jeremy Corbyn a significant rise in public spending would be envisaged. The party leadership, too, has made no secret of its intention to raise taxes on the better-off – on those, as the saying goes, ‘who have the broader shoulders’. But, the definition of broad shoulder has, for some time now, been left conveniently undefined, while the resort to higher borrowing, the mantra of any socialist party, is unlikely to assuage voters after the calamitous borrowing and debt of recent years that has necessitated such a lengthy period of austerity and spending constraint.

The Conservative Party have also been markedly reluctant to be drawn into the discussion on tax, having long symbolised itself as the party of low tax. While it may claim to have lower spending commitments than Labour this does not necessarily mean that taxes will not rise. Chancellor Philip Hammond, for one, has made known his desire for greater financial flexibility and for the party to drop the ‘tax lock’ pledge. Ultimately, this begs the question of what Conservative tax policy is now.

Policies of taxation are especially sensitive at this point in time given the background of a slowing economy and forecasts of a deepening downturn. There have been signs over the last few days that the election battle – largely focused till now on the personalities of the respective leaders – is swinging back towards more practical and tangible issues.

Both parties have pledged not to increase the 20 per cent rate of VAT until 2022. As matters stand, though, the total tax burden is set to rise to its highest level in 30 years – even were the tax lock to stay in place. The March Budget stipulated that the tax burden will rise to 37.2 per cent of national income by 2019-20. And with overall government debt approaching 90 per cent of national income, voters deserve more informative answers on future tax policy than the rhetoric currently on offer.

The likelihood is that continuing low growth for the foreseeable future and a worryingly high level of government debt will act as a powerful restraint for whoever wins the election: any increase in government spending will have to be found from improved productivity and efficiency gains. That is not a particularly comfortable message to portray for any party aspiring to be the next government. It is, however, an unavoidable truth whatever the political rhetoric may claim.

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Britain, European Union, Government, Politics, Society

Britain will be entitled to walk away without a deal with the EU

BREXIT

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When the 27 EU leaders met to review their Brexit talks guidelines last Friday, it took them less than a minute to approve the draft. They then burst into open applause – the grandstanding almost akin to a Soviet-era meeting of Warsaw Pact comrades. The guidelines are provocative and blatantly breach the UK’s own red lines. Britain, in turn, must spell out that it is prepared to walk away if it is unsatisfied with the deal that the talks produce.

The EU’s mask of collegiality and high ideals is slipping. As it does, so the decision of the British voters to walk away last year looks even wiser. Britons should be aware that walking away is a valid and legal option that the UK is entitled to exercise if talks with the EU irretrievably break down.

Extracts from Yanis Varoufakis’s memoir of the 2015 Greek crisis depict an EU where the Germans dominate and the Union, they insist, must be preserved at all costs. He claims that Emmanuel Macron, probably France’s next president, described the EU’s deal for Greece as a latter-day “Versailles Treaty”. Angela Merkel apparently overheard and barred Mr Macron from talks.

But Greece is not Britain: a great deal more for the Union is at stake this time around given the UK’s historic position of generating handsome contributions to EU coffers in Brussels.

Theresa May attracted shrill criticism for pointing out that continental security might be affected by the course of negotiations, yet the EU has shamelessly put absolutely everything on the table: the cost of the so-called divorce, from which they are determined to wring every penny, Gibraltar, UK bases in Cyprus and, in a concession to the French, an effort to stop any financial deregulatory drive by Britain.

The UK cannot accept a settlement that would, say, tie its hands on tax and regulation after it leaves the EU: the country voted to get out in part to liberate its economy. And there are matters on the table that have nothing to do with the EU – such as the future of Ireland. Britain therefore has to make it absolutely clear that it will not be drawn into diplomatic traps or be landed with bills and commitments that reduce its status and undermine the raison d’être behind Brexit.

The EU needs to be reminded that it relies so much on the UK’s markets, intelligence and military that it would be foolish to act so bullishly over the terms of settlement. It is in everyone’s interests to separate amicably and agree as soon as possible on a new trade arrangement. That is what Britain should aim for. If the Europeans will not play ball, however, they must be in no doubt that Britain has the strength and will to go it alone.

Brexit | Some of The European Union’s draft negotiation principles

 . The EU wishes to have the United Kingdom as a close partner in the future

. Preserving the integrity of the Single Market means that the UK will not be able to participate on a sector by sector basis

. The EU “four freedoms” are indivisible and there can be no cherry-picking

. A non-member of the Union cannot have the same rights and benefits as a member

. The EU will negotiate as a bloc, rather than 27 individual countries, so as not to undercut the position of the Union

. Brexit negotiations will take place as a single package. They will only be considered settled when all individual items are agreed

. The United Kingdom and European Union must agree on their future relationship, but these discussions can only take place when there is sufficient clarity on the process of the UK’s withdrawal from the Union

. The Union is open to a transitional membership agreement, but this must be very clearly defined, time-limited and dependent on the UK maintaining EU membership obligations

. Negotiations must be completed by 29 March 2019

. No part of these negotiations can affect Gibraltar without an agreement between the United Kingdom and Spain

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Britain, Government, Scotland, Society, Technology

Body cameras are an essential tool for police officers

POLICE SCOTLAND

PoliceCam2

Digital cameras are an essential accessory for police officers. They would be useful in the prevention and detection of crime.

Police Scotland have been conducting trials in the north east of video cameras attached to their uniforms. This follows the lead of several other British forces, including the Metropolitan Police in London.

Consideration is now being given to a roll-out of the technology which has been long proved as an effective tool in convicting wrong-doers. British Transport Police (BTP) has also demonstrated its usefulness, not least in Scotland.

Over the last nine years, deployment of body-worn cameras by BTP have been utilised on both the rail network and Glasgow subway, particularly so during major sporting fixtures. Their use has shown cameras can protect officers and improve the evidence for the prosecution.

Support for body cameras has been openly voiced by the Association of Scottish Police Superintendents, which said they could bring vast economy savings to the justice system by increasing the number of early guilty pleas.

That in itself could significantly free up precious police time by relieving officers of the need to spend hours in court – waiting to provide oral testimonies and evidence they are never called on to give – because the accused has decided to change their plea at the last minute.

Ministers, too, have highlighted the merits of making better use of digital cameras, particularly in relation to gathering additional evidence that could be used in court.

The Scottish Government’s digital justice strategy, written some three years ago, said they would also enable officers to make better operational decisions, help to increase the personal safety of police officers, and that such accessories would be useful in the prevention and detection of crime.

Such a stance has also received the endorsement of Police Scotland Chief Constable Phil Gormley, who added that regular use of body cameras would result in fewer complaints against officers, with a likely increase in public confidence of the police service. Police routinely receive abuse from members of the public, but if those people are on camera, they may well think twice before doing so.

The main problem with greater use of cameras is the cost involved when the force’s budget is so stretched, as has been raised by the Scottish Police Federation, which represents rank-and-file officers.

Technical challenges also exist in getting the equipment up and running, issues of technological reliability, and the storage and accessibility of digital footage.

If the pilot scheme in the north east of Scotland has ultimately been a success, however, then it makes great sense to spread the practice across the rest of the country. Where technology is available to improve law and order, it should be made available to our officers to help them fulfil their duties – particularly given the precarious and dangerous situations officers can sometimes find themselves in.

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