Tag Archives: General Election 2024

Britain, Economic, Government, Politics, Society

Starmerspeak and the dangers that lurk

THE UK LABOUR PARTY

POLITICAL language, observed George Orwell, “is designed to make lies sound truthful …and to give an appearance of solidity to pure wind.”

Euphemism, ambiguity, and “sheer cloudy vagueness” are deployed by politicians, he said, to conceal their true intentions and lull the people into a false sense of security.

Orwell wrote those words almost eight decades ago, yet they are as true today as they were then. Indeed, in Sir Keir Starmer they may have reached their apotheosis.

Labour party’s manifesto – in which Sir Keir’s photo appears 33 times – is a veritable typhoon of pure wind.

He presents himself as a man of action, saying “the time for reviews is over” – then proceeds to announce some 16 new reviews into everything from health to defence.

Wealth creation is ostensibly a key priority, yet he would saddle business with a slew of new rules and obligations, while simultaneously driving wealthy foreigners away by abolishing non-dom tax status.

Sir Keir says he puts “country before party,” yet throws red meat to Labour activists with spiteful measures such as stripping elderly soldiers who served in Ulster up to 50 years ago of their legal immunity from prosecution, and, of course, the tax raid on independent schools.

Labour’s “green revolution” is also a sham, Starmer falsely claiming that renewables will be capable of fulfilling our energy needs by 2030. That’s just six years away. Even if he covered half the country in wind turbines, we would still need oil, gas, and nuclear to keep the lights on.

Yet the most glaring falsehood in this tawdry document is that Labour’s “agenda for change” can be funded with just a few minor tax rises.

An extra 13,000 police offices, 8,500 mental health staff, 6,500 teachers, 1.5million homes, nationalising rail, a new state energy company – where’s the cash coming from?

Estimates of the size of Labour’s fiscal black hole vary, but most analysts believe it to be in the tens of billions. Sir Keir claims the shortfall can be covered by economic growth. The reality is that taxes and borrowing are certain to rise.

He has ruled out increases in income and corporation tax, national insurance, and VAT, but there are plenty of other options, such as raiding pension funds (again), wealth, fuel, and property taxes, extending capital gains tax, and much more.

Instead of being told what’s coming down the line, voters are being shamelessly fobbed off. In his novel 1984, Orwell gave deceitful political language a name – Newspeak. Starmerspeak is its modern-day manifestation.

Despite Sir Keir’s unwillingness to give straight answers, he’s on course to win with a “super-majority” – especially if traditional Conservatives are foolish enough to switch their vote to Reform UK.

Their anger and revolt are entirely understandable, but Reform is a sideshow. They must weigh the desire to punish their own party into oblivion against the consequences of propelling a self-professed socialist into government with virtually no checks and balances.

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Britain, Economic, Government, Politics, Society

Budget 2024: Reasonably competent but lacking in spark

BRITAIN

HAD the Conservative Party been 20 points ahead in the opinion polls, this week’s Budget by the UK Government would have seemed a sound and steady-as-she-goes statement.

Some of the measures it contained will help many of Britain’s hard-pressed families and businesses. A 2p cut in National Insurance contributions, the second in just four months, means the average worker will be £900 better off. The Conservatives insist they will abolish NI altogether – in effect, a second income tax by another name – as soon as possible.

There were tax breaks for second homeowners, a rise in the amount small firms and the self-employed can earn before having to pay VAT, and incentives for our booming creative industries.

The budget also cunningly shot two of Labour’s most cherished foxes.

The Chancellor, Jeremy Hunt, tightened restrictions on “non-dom” status for wealthy foreigners living here and extended the windfall tax on oil and gas firms largely because of the protracted war in Ukraine. Labour had planned to pour the money raised from these measures into the bottomless pit of the unreformed public sector and into recklessly accelerating net zero targets. Mr Hunt has used it instead to fund tax cuts for the workers – a commendable move.

If elected, Labour would now have to finance its schemes by either reversing the NI cut, raising other taxes, or saddling the country with even more debt.

By raising the ceiling at which higher earning parents begin to lose child benefit from £50,000 to £60,000, he is saving half a million families an average of £1,300 a year.

A laudable budget, but will it be enough to turn around Tory fortunes? Politically, they are stuck in the trenches and more probably needs to be done to get them back on the offensive.

Despite the budget’s reasonable competence, Mr Hunt’s budget lacked spark. There were troubling omissions: no help for the young to get on the housing ladder; no extra cash for our beleaguered military; no scrapping of the perverse tourist tax; and, most discouragingly, no income tax cut.

There was plenty of rhetoric about the virtues of a low-tax economy. Yet, we remain more heavily taxed than at any time since the 1940s. Freezing allowances has been the worst culprit, dragging millions of people into higher tax brackets, but there is no sign of a thaw. Work must be seen to pay.

Since lockdown, productivity has crashed, especially in the public sector. Although the Treasury has pledged to tackle this culture of sluggishness, we have yet to be told how.

The macroeconomic predictions for this year are good for the Government. Growth, though still low, is forecast to rise, banishing fears of any lasting recession, and inflation to fall below 2 per cent, driving interest rates down and the cost of borrowing.

The Conservatives could yet sail into a general election on a wave of optimism. There may even be time for a genuinely bold tax-cutting mini-Budget in the autumn.

This was a redistributive budget that has helped many, but by no means a sure-fire election winner. For the Conservative Party to win this year’s general election, more still has to be done.

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