Posts Tagged ‘tax’

The 10p rate “compromise” stinks to me

Wednesday, April 23rd, 2008

Since I’ve been blogging light in recent weeks, I’ve not commented on the ongoing mess that Labour have got themselves into over the scrapping of the 10p rate of income tax. There isn’t much I can add that hasn’t been said a thousand times before. It is of course ludicrous that the Labour backbenchers have suddenly woken from their slumber on this issue, a year after we warned them what the implications of this reform would be. That the BBC have given the rebels such an easy ride for their johnny-come-lately rebellion is just par for the course.

But they do appear to have been bought off remarkably easily. The main measures for helping those hurt by scrapping the 10p rate seem like a total crock.

Let’s start with the retrospective raising of the winter fuel allowance. This is going to apply to all pensioners between 60 and 64, including my partner’s mother who is already roughly £50 a week month* better off due to her enjoying the full impact of cutting the basic rate from 22p to 20p. This is just throwing money around at random in the hope that some of it will stick.

And then there is the pledge to raise the national minimum wage for younger workers. First of all, this will only help those earning the absolute minimum wage for 18-21s. Someone working full time on the London “living wage” (£7.20 an hour) will still be whacked by the tax rise and yet only earns £13,000 a year. Secondly, it should be pointed out that any such an increase will mean that at least some of the cost of raising the winter fuel allowance is going to be paid out of increased tax revenue generated from young earners. The very lowest earners are going to be subsidising a benefits rise that will help many of the wealthiest (and yes, I do accept that the winter fuel allowance helps poor people as well, but still).

I’m all for raising the NMW for young people so it is comparable to the NMW for older workers, but this rise is happening for all the wrong reasons: getting the government out of a fix rather than doing what is right in the first place.

Surely it is unacceptable to have people on minimum wage paying income tax anyway? It is just a deadweight cost to the economy. The government should be working to narrow the gap between personal allowance and the NMW, not widen it. What possible economic reason is there to make employment even more expensive and wages even more inflationary?

But my greatest fear is that if the Labour rebels really are so easily bought off, they will capitulate over 42 days quite easily as well. They really are a useless shower. Give them a totemic act of class warfare like fox hunting to get self-righteous about and they will push the government to the limit. But helping poor people? Defending civil liberties and the rule of law? What is the bloody point of them?

* Oops! Good job I corrected that before anyone else spotted it.

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It isn’t a cake, and it doesn’t taste like tea

Friday, April 11th, 2008

I despair of the EU at times. Fair enough, a Jaffa Cake is a cake - no doubt about it. It is made of cake mixture. It might be a little cake, but it is still a cake.

But a tea cake? A tea cake is a chocolate covered marshmallow with a biscuit base. The key word there by the way was biscuit. I can guarantee you that the judges at the ECJ have never had one, preferring their poncey Belgian biscuits. They probably think shortbread is a type of small baguette and all.

The problem with this ruling is, what is now to stop Mars from calling Twixes cakes? Or even, damnit, Mars bars? Where do you draw the line? Where, eh? See? You don’t know!

M&S have opened up a can of worms from which we may never recover. The very foundation of our society is teetering on the brink. It is a truth, universally acknowledged, that a cake is something that is soft when fresh and hard when stale while a biscuit is hard when fresh and soft when stale. Strip that away, and what do we have left? I can tell you: sheer anarchy.

And what does the UK Column have to say about all this? I’ll give you a clue: it begins with “fuck” and ends with “all”. Clearly they have been taken over by Common Purpose. Somebody tell David Noakes.

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My budget take on Comment is Free

Wednesday, March 12th, 2008

Well, I seem to be all right. As a public transport-using, non-smoker on a decent wage who is a moderate drinker, I suspect I’ll be the beneficiary of the 2p income tax cut overall (although the devil is always in the detail). But it doesn’t look as if too many people will be particularly happy with this year’s budget.

More here.

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Eight for 2008

Monday, December 31st, 2007

It’s still 2007 (just) so just enough time to do Iain Dale’s Eight for 2008 meme. Over the next 12 months I would (realistically) like to see:

  1. Clegg to learn to trust his instincts, distrust his yes men and subsequently the Lib Dems to get back up to the low twenties in the opinion polls and to make steady progress over the year.
  2. After another period of stagnation, and Brown’s Black October a distant memory, the Tories to resume the civil war which was giving them so much fun up until September.
  3. A House of Lords Reform Bill to receive its third reading in the Commons (could easily happen and with the next general election now likely to be 2010, there is time to stand down the Lords obstructionists).
  4. Following much faffing about with this upcoming citizen’s summit, the government to formally begin a constitutional convention in which electoral reform is very much on the agenda.
  5. ID cards to be scrapped.
  6. Clegg to hold a third tax commission, rowing back from the disappointing second one which (despite Vince Cable’s assertions) saw us embrace the conservative consensus to cut IHT and a withdrawal in Lib Dem support for wealth taxes.
  7. The government to finally wake up and introduce a German-style feed-in tariff to promote micro-generation.
  8. The public to embrace the Sustainable Communities Act.

I’m supposed to tag five people so I tag (with apologies to those who have already taken part - I’ve not been paying attention much recently): Alix Mortimer, Anthony Barnett @ OurKingdom, Antony Hook, Jennie Rigg, Jo Angelzarke.

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Nick Clegg: video killed the media star?

Sunday, November 18th, 2007

I’ve finally got around to watching Thursday night’s Question Time Lib Dem leadership hustings. Not much for me to add that hasn’t already been said by so many others. It was no knock out, but the clear consensus (which I agree with) is that Huhne won on points although Clegg recovered well in the second half. In the interests of balance though, I have to agree with Aaron Heath at Liberal Conspiracy: Huhne’s tie should be tried at the Hague for crimes against humanity.

I’m always being told that Huhne is boring and dry. He wasn’t on Thursday. He managed to combine passion and principle with clarity and intellect. Even at his best, Clegg only really scored highly on the first two.

I’m beginning to think that it may be TV that will do for Clegg. What’s clear is that while people like myself have been quick to point out that he’s a media star, it’s the newspapers - not the broadcasters - who are saying that. The Guardian has come out for him this weekend, but failed to come up with a good reason why. Apparently he is “fluent” - well, he hasn’t been fluent in either of his major TV tests so far, unless that fluency is in waffle.

Paradoxically, while the print media is more biased it can also be more forgiving of politicians’ shortcomings. Fluff a line in a newspaper interview and the journalist will always accept your second “take”. Fluff a line on live television on the other hand and it’s there for all to see. Steve Richards, newspaper journalist would never have exposed Nick Clegg in the way that Steve Richards, television interviewer did without even trying.

Clegg must surely realise this. Why then did he allow himself to get blindsided by Dimbleby’s interjection about an article he wrote during the last leadership election when he accused Huhne of opportunism. Surely there’s someone on his campaign team working on rebuttal? Like the tax fluff the week before, this should have been swatted away with ease.

Indeed, it is interesting to watch how Clegg dealt with Dimblebum: in short he didn’t. While Huhne was always quick to interject and get the last word (with those “sharp elbows” of his he was telling us about last week) and treated Dimblebum as a steam roller would a bicycle, Clegg kept listening to him, getting steered off course.

Daniel Finklestein is at least one print journalist for whom the penny is starting to drop:

Clegg is an intelligent and charming man, which is why journalists generally like him, but he seemed lightweight and uncomfortable last night. He hadn’t very good lines to take and his position on Trident (almost the only substantive thing he said) is incoherent.

This is serious stuff for Nick Clegg. Being “telegenic” has up until now been his biggest USP. It isn’t any more. He’d better manage to knock up something bloody spectacular on the Politics Show later today or his big mo will start to sink like a stone.

Incidentally, I notice that the Scott Press has started claiming that this election is a contest between a social democrat and a liberal. All I can say to that is that as someone who was arguing earlier this week for the party to put more emphasis on taxing income less and wealth more, and who is very conscious of the fact that the candidate closest to my own view on this is Chris Huhne, I was pleased to see the Guardian remind everyone this weekend that this position has at least one high profile exponent: J. S. Mill.

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Comment is Free: Share the wealth!

Thursday, November 15th, 2007

My latest article on Comment is Free is now up:

Instead of doggedly trying to outpace property prices, imagine if the exchequer went the other way. And imagine if it used the extra revenue that resulted to cut income taxes. Wouldn’t it be fairer to allow people to keep more of the money that they earn in exchange for having less inheritance to look forward to? Wouldn’t that be better for the economy: lowering the costs of labour while doing more to capture unearned wealth? Shouldn’t at least one of the main political parties be championing such a position?

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Clegg’s Council Tax proposals make no sense

Sunday, November 11th, 2007

I’m afraid my brief excitement that Nick Clegg was about to ditch local income tax proved to be groundless. As Valerie pointed out, he spelt the policy out on the Guardian website earlier this week. At least I think he did:

Mr Clegg added that he is committed to replacing council tax with a local income tax, but that he wants to cut council tax for low- and middle-income families by introducing a progressive tax on those living abroad (sic - is it me or are those two clauses contradictory?).

He plans to raise £1bn from non-domiciles to fund council tax cuts for millions of households. His proposals include taxing non-domiciled taxpayers at 10% on their overseas income, in a system similar to that used in the US.

I think the idea of a tax like this on non-doms is an interesting idea, but it isn’t a progressive tax, it’s a flat rate. Secondly, if he’s committed to scrapping local income tax, why this extra policy which will only add confusion to what many regard as an already complex set of proposals?

The argument seems to be that it will take a while to introduce local income tax and we should to this in the meantime. But it will take a while - pretty much the same while - to introduce a tax on non-doms. The argument against going straight from council tax to a form of land value tax has always been that it will “take a while”; indeed the party remains committed to a land value tax in the long term. So why not just do the switch in one fell swoop and leave local income tax out of it altogether?

Clegg’s proposals also seem to contradict one of the fundamental reasons why the Lib Dems are calling for council tax to be scrapped. If the rate that a family pays in council tax is so good at determining whether they are of low- or middle-income, why scrap it at all? I thought the Lib Dem argument was that it is a regressive system? The fact is that outside of Wales, Council Tax has not been evaluated since 1991. People selling houses often find the property leaps up two or more bands once the sale is completed. What Clegg is suggesting here is a system that will benefit an awful lot of people who are currently under-taxed.

These proposals contradict the Lib Dem commitment to increasing the amount that local authorities collect locally. What he’s suggesting is a national tax to subsidise a local tax - in short, that we should go the other way.

In short, this is a mess. The truth is, there’s actually very little you can do to offset a tax that will only raise £1bn that sounds impressive; raise personal allowance by a few quid? The temptation is always to focus on those small taxes that actually raise very little but which cause the public a disproportionate amount of upset - see Gideon Osborne seeking to slash inheritance tax for example. You could do a lot with it on the spending side, but we’re not supposed to do that these days.

Ultimately, this policy is a mess and the way Clegg has presented it is a mess and it is axiomatic of the sort of thing that is all too frequent in Lib Dem policy making: a policy bite which doesn’t accord with our broader strategic vision. I’m sorry if it is “purist” to suggest we need less rather than more of this sort of approach, but that’s my view.

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Is Nick Clegg about to ditch local income tax?

Saturday, November 10th, 2007

Discussing Clegg’s interview with David Mills of GMTV Sunday earlier, it occurred to us that the following quote has potentially enormous implications:

Nick Clegg: Er, yes, but I mean there are other ideas. For instance there are other ideas, I mean for instance I’ve also this week been floating ideas for how I think we should introduce a 10% tax on the non-domestic earnings of so-called ‘non-doms’. In that particular case that raises about £1 billion. I would like that to go to alleviate the burden of Council Tax on those in Band A and band B properties, those on the lower rung of the property ladder, if you like. But it’s just an example of where we can be creative in trying to find that extra money in order to fulfil that pledge, and I’m absolutely confident that we will under my leadership make that fixed pledge by the next general election.

Is this just idle blue skies thinking (which you surely must never do on a TV interview) or a hint that under Clegg the Local Income Tax policy is to be scrapped or at least adapted so that council tax will remain in the picture for the foreseeable future? Because you can’t alleviate the tax for low bands if you are going to scrap the tax altogether.

Is this an unintentional slip, revealing an agenda to move the party away from its existing LIT commitment? He was apparently quoted as saying nice things about site value rating earlier this week although I don’t have chapter and verse. Is a pattern emerging?

Speaking personally, such a shift would be fantastic: despite all the wobbles it could even win my vote (notwithstanding details, etc). Amongst many other party members though it would probably be about as popular as drinking a bucket of cold sick.

This isn’t an issue to be trifled with. If Clegg is thinking along these lines, mere hints will not be good enough. He would have to press it home. It would be a high risk strategy of exactly the kind that so many of us have been calling for him to adopt over the past few weeks.

Dare to do it Nick; you know you want to! :)

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EXCLUSIVE - Nick Clegg on Tax: “er…”

Friday, November 9th, 2007

Nick Clegg is going on the GMTV Sunday Programme this Sunday, following Chris Huhne’s appearance last weekend. I’ve been sent a transcript and, well… I kind of get what he’s doing but it’s just so woolly.

He’s very keen to push the Pupil Premiums idea, but worryingly he appears all over the place about how to pay for it:

Nick Clegg: £1.5 billion will come from taking above average families out of the tax credit system altogether. And we’ll take that £1.5 billion out of the tax credit system, or at least we’ll take families on above average income out of the tax credit system, use that money to give to the kids from the most disadvantaged backgrounds. That leaves a gap of a million… of a billion, sorry, and it would be one of the first things I would do as a leader to say to the party that we will have to find that extra billion, so that the total sum of £2.5 billion is a fixed pledge by the time we go to the country in the next general election.

Steve Richards: You’d accept that you’ve got a black hole there. You haven’t found where the money’s going to come from, the other billion.

Nick Clegg: Er, yes, but I mean there are other ideas. For instance there are other ideas, I mean for instance I’ve also this week been floating ideas for how I think we should introduce a 10% tax on the non-domestic earnings of so-called ‘non-doms’. In that particular case that raises about £1 billion. I would like that to go to alleviate the burden of Council Tax on those in Band A and band B properties, those on the lower rung of the property ladder, if you like. But it’s just an example of where we can be creative in trying to find that extra money in order to fulfil that pledge, and I’m absolutely confident that we will under my leadership make that fixed pledge by the next general election.

Steve Richards: By one way or another taxing the better off, presumably. Because it has to come from somewhere.

Nick Clegg: Yes, er well no, hang on, or, sorry…

Steve Richards: You said yes, so tax increase?

Nick Clegg: No, no, let me correct that. I think there is plenty of scope to cut back on some of the waste in government, some of the duplication in government. I think there is a strong case to look at how government expenditure’s been duplicated in many areas. Everybody is familiar with the general degree of waste in public expenditure in the last few years, so I have given you if you like a fluctuating answer precisely because I think that I’m not fixed in my own mind about where that money would come from, but absolutely confident that with political will that money will be found.

On the page it looks awful (much worse than using a word like “Gadarene”), although obviously it might not come across as quite so vacillating on screen. But surely Team Clegg should have got the answer to this basic softball question down pat by now? This is Clegg’s CENTRAL campaign policy. What have I been saying about clarity?

As Chris Huhne said in our bloggers’ interview on Tuesday, nice guys are all very well but if they don’t look like credible potential Prime Ministers, they’re ultimately a waste of time. A potential Prime Minister needs to look credible on economic matters. Clegg doesn’t here.

And while I’ve said nice things about his position on the environment in the past, I’m beginning to wonder if it is beginning to ring hollow:

Steve Richards: … Chris Huhne when he was here last week – you’re in a contest, and maybe in that context it’s understandable – but he was, how can I put it, critical of you for criticising him. In particular, well he was quite specific, he said that you had claimed that the party had not done enough on the environment, and he actually came up with endless statistics to show how much he had personally done on the environment. Was he right to pick up the fact that you were criticising him on this or wrong?

Nick Clegg: My feeling is that many party members in the Liberal Democrats are anxious about why it is that our leadership on policy, on setting out detailed policies about how we protect the environment, how we move to a zero carbon economy, doesn’t seem to be translated into real political leadership on this. Why is it that David Cameron appears to have stolen such a march without any substantive proposals on the environment? Why is it that the green agenda has been hijacked by this very superficial appeal from Cameron? I think that is a very serious political question. It’s certainly not directed personally at Chris. It’s an issue for the party as a whole…

Steve Richards: But he is the environment spokesman for your party, so…

Nick Clegg: Well hang on a minute. It’s a question for the party as a whole. Environmentalism is something integral to my philosophy. It’s something I’ve worked on for years. I’ve written books in the past about how you, for instance, change the world trade system to make sure that it actually boosts environmental protection rather than undermining it, and I think it is quite right for me as a prospective leader to say hang on a minute, we’ve got to make sure that Cameron doesn’t get away with blue murder – or blue-green murder – by pretending that he’s an environmentalist when he isn’t, and I think that what we need to do is be very careful that we don’t berate and hector people on the environment, but inspire and motivate them to make changes and make sure that they know that we are also placing a real obligation on businesses and on government – local and national government – to meet their side of the bargain, so it isn’t just people struggling in their own homes to change their lightbulbs, save more electricity, use less water, that also that we will give them answers as to why it is at the moment they then come home every afternoon with ten tons of plastic from the supermarket, or why is it that the local authority or central government gets away with not meeting their own carbon emission targets. That’s the kind of thing I’m talking about – a new language on the environment which motivates, doesn’t berate – I think that’s exactly what our party should do.

It’s true that Cameron has made the environment a big issue over recent months. It’s also true that he’s been made to look a plonker with the chauffeur incident and hugging huskies nonsense. In recent months he’s also made it clear that he is distancing himself from the more deep green policies of Zac Goldsmith.

The wheels have already come off the Green Tory Bandwagon. I have to ask therefore why Team Clegg are so busy helpfully putting them back on again. Chris Huhne has produced polling evidence that suggests Cameron is not doing that well on this issue; what is Clegg’s response to that? Why is he not attacking Cameron’s empty pledges on the environment rather than using him as a stick to beat his opponent with?

No doubt Lib Dem Voice and others will have more about this interview.

UPDATE: The Guardian have picked up on this.

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Chris Huhne’s manifesto: the verdict

Thursday, November 1st, 2007

I thought I’d give Huhne’s manifesto the same treatment that I gave Clegg’s speech last week.

Once again, I’ll give each main section marks out of five for how much the section is in the party’s comfort zone, how much it is reaching out beyond our traditional supporter base and how much I personally agree with it. I realise the first two are tests which Nick Clegg first set, but they are valid ones.

Changing the system, not just the Government

Huhne starts off by talking about the electoral system, a matter close to Liberal Democrats’ hearts but not neccesarily the wider public. To be fair, it is the first matter of substance that Clegg referred to in his speech last week as well.

Not much I can add here. Obviously I agree with the policy. I’m not sure this is how I would articulate it, particularly if I had one eye on the wider public. I would want to emphasise the importance of choice and competition, not simply fairness.

Comfort rating: PR, nuff said. 5/5
Reaching out rating: he doesn’t mention “PR” explicitly, at least. 2/5
Personal rating: just to be picky, I’d have phrased it differently and find “fairness” a bit woolly. 4/5

Giving back power to people and communities

This is a radical vision of decentralisation which I think both the party and the public like the sound of. When Lib Dems talk of localism, we mean it, and this is a particularly well articulated section.

Comfort rating: localism is an easy sell internally. 5/5
Reaching out rating: well trod turf, but it is a message which I think is resonating increasingly. 4/5
Personal rating: sounds good to me. 5/5

Fixed term parliaments

This section is actually about more than that. Rather, it is a summary of issues relating to Parliament. I think fixed term parliaments resonate more widely at the moment because of the phoney election debacle, but that is quickly fading. The stuff that is of wider interest I think is the stuff about gender balance in the Lords, not because it will set the world on fire but because I think it shows an interest in how the party looks, which is important.

Comfort rating: some might shuffle their feet about gender balance in the elected Lords. 3/5.
Reaching out rating: some stuff of interest, but mostly the public won’t care about this section. The gender balance stuff gets a point for its long term boost to the party’s image though. 3/5.
Personal rating: if this gender balance stuff is a combination of existing party practice (the “one third” rule), training and mentoring and pro-activity, then great. 4/5.

The people’s veto

Yay! A constitutional reform which is not only truly democratic but is likely to resonate with the average Sun reader. Personally, as readers may have gathered, I’d go further, but a veto system such as this would be a powerful tool and would ensure that all laws had the assent - passive or otherwise - of the people.

Huhne doesn’t mention treaties here (can you say “Lisbon”?), but surely he wouldn’t make them exempt?

Comfort rating: I suspect many people in the party may be uncomfortable about this, but this limited form of participatory democracy will probably win them round in the end. 3/5
Reaching out rating: The public would love this. 5/5
Personal rating: I’d go further, but this is great progress. 5/5

A Freedom Bill to give back liberties

A Freedom Bill? That sounds a bit like a Nick Clegg idea! And Clegg was right - it is indicative of quite how scared he is of his own shadow that he didn’t mention it in his launch.

Is it good politics? Well, it is a great way to communicate our values - symbolism with substance attached. On the other hand it risks having us presented as the middle class liberati. On balance though, I think the consistency would be its own reward and would find its own audience. Not everyone will agree, but significant numbers on both the left and right will.

Comfort rating: can’t see the party having an issue with it. 5/5
Reaching out rating: it will find its own audience. 3/5 (I nearly gave it a 4)
Personal rating: sounds great to me. 5/5

Stopping money politics

This section is all very well as far as it goes, but is a little light on detail. What, for example, does Huhne propose to do about party funding? In fairness to him, he was probably simply being responsible given the Hayden Phillips talks and was not in a position to write his manifesto on the basis that they would collapse the day before.

On corruption, this section is stronger. The Saudi issue is good politics for us and Vince Cable has played it very well this week (maybe we should keep him…).

Comfort rating: not many people vote for corruption. 5/5
Reaching out rating: doesn’t exactly set the world on fire, but there is at least sympathy for our position. 3/5
Personal rating: would want more detail on party funding, notwithstanding the practicalities. 3/5

Markets in public services, or local control?

This section is very interesting. In short it is an argument for localism and against marketisation of public services. In doing so, he actually goes further than I would, dismissing school vouchers for example which is a policy which I have some sympathy for.

He does at least articulate a clear case however. You can agree with him or not, but you can’t accuse him of mincing his words in the way that Clegg was doing last week. This is a line that Steve Webb would have no difficulty with and David Laws would hate, but at least it is a line. I’ve been arguing for consistency in our policy, and this is certainly consistent.

On the down side, is it an issue which will resonate with the public? I think they are for localism, but this section doesn’t address how we will deal with the inevitable complaints about “postcode lotteries” and the like. While the internal conflict is certainly over the extent to which economic liberalism and social liberalism should hold sway in the public services debate, I think the wider public have other priorities that this section does not address.

Comfort rating: it’s broadly existing party policy, but a lot of people will be uncomfortable about going down on one side to such an extent. 2/5
Reaching out rating: this isn’t the debate the public particularly cares about, but at least it is a clear policy. 2/5
Personal rating: I broadly go along with it, but I think there are different balances to strike in health and education policies. 4/5

Solving the housing crisis

This is one of the issues I took Clegg to task for not mentioning last week. I still maintain that you can’t be serious about addressing social mobility without saying something about housing. So, full marks to Huhne for addressing precisely that, and indirectly my other issue - intergenerational equity.

Once again, Huhne here gives us a well argued case for the limits and strengths of council housing. He isn’t being prescriptive here but shows a depth of knowledge. He sits on the fence here to a certain extent, but it is certainly true that it is largely an issue that should be decided locally.

I’m not sure he satisfactorily addresses how he intends us to build 3 million homes over 10 years. There is no easy answer of course (unless you propose bankrupting the state by insisting the government should build every last one of them), but a bit more detail here - and less detail on the public services section - would have been welcome.

Comfort zone: he doesn’t mention anything like building on greenbelt land. 5/5
Reaching out zone: to both the young and the working class, this is one of the biggest issues. He should have made it more central in my view, and linked it to other issues such as immigration, but the fact that he mentioned it at all puts him light years ahead of his opponent. 4/5
Personal rating: he doesn’t mention anything truly radical that might interest me such as contemplating some building on the greenbelt. 3/5

No to Trident

I’ve already banged on about this enough.

Comfort rating: plays well with a certain cleavage but seems to have already backfired to an extent. 3/5
Reaching out rating: I just don’t see many people joining the throng. 1/5
Personal rating: good policy, wrong politics. 3/5

Rebalancing our foreign policy

Again, Iraq War aside, I can’t help but think this will largely leave the average person in the street cold. We’ve acquired a good reputation with regards to foreign policy in the past, but most of the people who support us on this issue have already come over to us. There is some anti-American sentiment out there, but there’s more anti-European sentiment.

None of which is to say that there is much here I would take issue with, although I’m curious why it mentions the English-speaking Commonwealth and not just the Commonwealth; are there not ties there which if anything will grow in importance over the next few decades? He deserves points for bravery for even mentioning the Euro, and has a clear answer for why joining is an option but certainly not yet.

In terms of low politics, it is also interesting that he appears to position himself as broadly more Euro-sceptic than Clegg, who was rather fulsome in his praise for the EU.

Comfort rating: some feathers might be ruffled by being rude about the EU and mentioning the Euro, but nothing to get in a lather over. 4/5
Reaching out rating: very mild Euro-scepticism and anti-Americanism reaches out of a certain extent, but this won’t get them talking at the Dog and Duck. 2/5
Personal rating: broadly fine but uninspired. 4/5

Fairness: a core belief for social liberals

Here Huhne firmly nails his colours to the mast and outs himself as a social liberal. Good. We have a real contest now as Clegg is clearly on the economic wing.

There is a lot here I can’t imagine Clegg saying, based on his speech last week. If I had a rather larger ego than I do, I might even think that this section was tailor-made to get my attention:

It is not enough to speak of equality of opportunity, aspiration and level playing fields. If ‘meritocracy’ means that individuals will receive the rewards their abilities and work deserve, it produces a very unattractive society in which complacently successful people constantly look down on their less able fellow citizens, whom they firmly believe to deserve less. We need more than that.

In truth, I suspect this section has rather more to do with Duncan Brack than it has to do with me.

For me, this is the most important section in the whole document. It is about our core beliefs and reclaiming equality at a time when so many Lib Dems seem keen to drop it as a priority altogether. It is clarity such as this section that recharges my political batteries and convinces me there is actually a point.

Comfort rating: actually, I think that much of this will cause the wider party difficulty. This is a debate we haven’t had in years and it is time we did so. 2/5
Reaching out rating: Will this resonate in the posh suburbs of Kensington? No. Will it resonate in the down-at-heel streets of Manchester where I cut my political teeth? Absolutely. 4/5
Personal rating: I need to hear this sort of thing from my leader, not bloodless exhortations for ‘meritocracy’. 5/5

Tall poppies and tall stories

I believe this is the section which opponents of Huhne may wish to caricature as ‘hammering the rich’. He doesn’t use that phrase, but if I have a criticism it is that he does very little to disabuse people of that notion.

There is an important issue to address in terms of company directors awarding themselves outrageous pay bonuses, but we need to be careful to avoid appearing to play the politics of jealousy. The language here could be more balanced and emollient.

That says, the underlying theme - that we should be concerned more about taxing wealth than incomes - is one of my pet hobby horses. Huhne is cagey about land value taxation but is warm about it in principle. In all honesty, that’s as good as I’m likely to get in this election.

Comfort rating: perhaps a little too much emphasis on bashing high earners. 4/5
Reaching out rating: we need to think about how we might sell this. The stuff about high earners will resonate with a few, but not enough. 2/5
Personal rating: as good as I’m going to get. 4/5

Talking straight on crime

An impeccably liberal approach, but not one that is likely to dispel any caricatures about woolly liberals sadly. It isn’t woolly - it is well argued and succinct - but for many acknowledging home truths such as the fact that fear of crime in this country is disproportionate to the level of actual crime will lead to them simply dismissing the whole argument.

This section presents to me a dilemma. I don’t disagree with any of it, but I know it is a hard sell. Huhne doesn’t give us much of an idea of how he plans to sell all this either.

How do we get this balance right? I have to admit I think Clegg does it better. Sometimes it is just a matter of not saying certain things that don’t need to be said. We can’t afford to alienate people; we have to talk in a language they understand.

Comfort rating: will ruffle quite a few feathers actually - Lib Dems can be quite reactionary at times. 3/5
Reaching out rating: I’d love it if people listened to common sense on crime, but they broadly don’t. We need to communicate this better. 1/5
Personal rating: I can’t deny it doesn’t appeal to me personally. 5/5

Sustainability: challenging on the environment

There’s a lot here that doesn’t need to be said. You’ve already won the argument Chris. Once again though, he doesn’t address how we engage with the public on this issue in a language they understand. Clegg’s critique that when we talk about green taxes, most people just hear ‘taxes’ is correct. Huhne needs to address that point. Calling for further cuts in the basic rate of income tax does that to an extent, but it doesn’t address Clegg’s other point about people being able to see their sacrifices making a difference.

In this respect, I would actually argue that Huhne is currently weaker than Clegg on the environment. Not because he’s wrong on policy but that he is wrong on emphasis. The next battle is on selling this policy, not simply entrenching it. Huhne needs to engage with that fact.

Comfort rating: broadly established party policy. 5/5
Reaching out rating: communication counts. 1/5
Personal rating: fine as far as it goes but barely moves us forward from 2 years ago. 3/5

Our party can win

Thus far, and point me to where if I’m wrong, but Clegg has barely addressed the issue of party organisation. Huhne therefore deserves credit for including this section.

The emphasis on local party development is important as is the emphasis on diversity. His approach on mentoring and training is welcome.

His point about constitutional change being a prerequisite to partnership government is vital. It addresses the Oaten lament that coalition is an issue that the party hasn’t been talking about enough but doesn’t get us distracted in self-defeating speculation about horse-trading.

Finally, the final paragraph succinctly sums up what the party is about. This is a strong section.

Comfort rating: the party will find little to disagree with here. Making it happen though is another matter. 5/5
Reaching out rating: a strong, better trained and more diverse-looking party across the country would inevitably reach out to more people. Simple, but true. 4/5
Personal rating: Again, my concern is making it happen. An uncharitable 3/5 (because I’ve been here before).

TOTAL COMFORT RATING: 59/75
TOTAL REACHING OUT RATING: 41/75
TOTAL PERSONAL RATING: 60/75

You can’t compare like with like with these scores and Clegg’s in my earlier article. Overall, in my view there is more meat here for the general public to grapple with than was in Clegg’s speech last week. There is also more for the party faithful to potentially object to. Interestingly, although I really liked certain bits, as an overall package I found myself less comfortable with it than with Clegg.

Huhne is clearly taking risks, and he should be congratulated for that. He has brought substance to a debate which until now has been distinctly wanting for it. On a number of issues however, he simply doesn’t seem to appreciate the communication issue. On the environment, on crime and on taxation it isn’t that he is wrong on detail, but that he hasn’t worked enough on communicating the message. This is at least a much bigger concern of Nick Clegg’s.

But on consistency, he wins hands down. You can’t fault him for not being prepared to answer difficult questions. This is an issue my scoring system doesn’t measure, yet it is important. Developing a clear Liberal Democrat identity is crucial. It gives us a brand - not something that 100% of the population will agree with, but something which a substantial minority certainly will. Longer term, such consistency will help us bridge the gap between the 10% of the public who identify as a big-el-Lib big-dee-Dem and the 50% of the public who identify as a small-el-liberal. It is not something that Clegg has begun to grapple with thus far, nor can he if he is afraid to reach out beyond existing party policy.

On balance then, this is definitely a stronger package than what I’ve seen from Clegg so far. It is however a package for long term growth - to what extent that is a luxury we can currently afford is not something I have formed a firm view on yet. It certainly isn’t the killing blow that Huhne needs to deliver to defeat his rival. Perhaps I should wait however until Clegg produces a comparable document.

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