Tag Archives: council-tax

What do the Scottish Greens and Guido have in common?

Both today are calling for Land Value Taxation, or at least they seem to be.

The Scottish Greens certainly are. Municipal tax reform in Scotland remains in deadlock and dependent on at least one other party agreeing with the principle of local income tax. That seems unlikely at the moment, even if the Lib Dems capitulate over the SNP’s insistence of greater centralisation (which does not look likely; what would they gain except appalling policy?).

Meanwhile, Guido is raving about the reprinting of Fred Harrison’s Boom Bust: House Prices, Banking and the Depression of 2010 (Guido also pats himself on the back at his prescience for predicting the housing crash in September 2007; modesty prevents me from mentioning that my first blog post on the subject was July 2006 and frankly I could have told you what was going to happen a long time before then).

Fred Harrison? You might remember me linking to this video earlier in the year. Harrison, aka the renegade economist, is a keen exponent of land value taxation and regards it as a crucial tool in the armoury against boom and bust cycles (actually, as the video indicates, he goes a lot further than that).

So yes Guido, Gordon Brown was very very wrong. But somehow I doubt your mate Gideon Osborne is going to be interested in Harrison’s prescription. The son of a baronet and Shadow Chancellor for the Conservative Party, it is his job to protect vested interests, not challenge them.

Was Monday the beginning of the end of the Cameron bubble?

By rights, it should have been. The Tories are in a total mess over the economy. I have to admit, I held my peace on Sunday over this idea about having the Bank of England step in when banks get in trouble. It sounded pretty much identical to what the government is doing now, only with even less oversight, but I felt that I must have been missing something obvious. 36 hours of listening to the empty soundbites emanating from the mouths of Cameron and Osborne and I can safely say it is every bit as vacuous a policy as I thought it was.

Ditto this idea for an Office for Budget Responsibility. We live in an era where the government ignores its own watchdog regarding compensating the people caught up in the Equitable Life scandal; why should they worry about another quango wagging its finger at it?

This issue also threatens to divide the party. Hardliners are unlikely to take this lying down. At a stroke, Osborne has directly contradicted two of the main principles behind Dan Hannan and Douglas Carswell’s much vaunted “plan” – specifically:

* Devolving power to the lowest practicable level
* Replacing the quango state with genuine democracy

Quangos are now the panacea for everything while localism has been completely abandoned. As Carswell and Hannan like to remind people, they speak for a growing number of Tories these days, Tories who thought all that stuff about Cameron representing a new kind of Conservativism actually meant something. All that has been trashed now.

I actually got it wrong yesterday. I assumed that the Tories would underwrite a council tax freeze if inflation was running at 4-5%. Inflation may well be at that point if the Tories seize power at the next election (I hope not, but a massive interest rate cut now looks likely), yet Osborne only committed himself to a 2.5% freeze and even that was contingent on local authorities making cuts in their own public spending. So he isn’t willing to commit to public spending cuts at a national level but he is willing to impose them on perhaps the most efficient arm of the state, local government. Clue, anyone?

But perhaps the greatest indictment of the Tories on Monday was the video below. Highly reminiscent of Spinal Tap (note the shots of people sleeping during the speech – approx 1 min into the video), Osborne and Cameron manage to come across as feckless amateurs who are treating the whole thing like a jolly lark:

Seriously. Does anyone watch that video and not think “novices”?

See also: Sara Bedford, Jackie Ashley.

Osborne calls for more centralisation

That is the effect of calling, similar to Alex Salmond, for a two year council tax freeze. Ploughing national revenue into local government may sound attractive in the short term, but in the longer term it means even less fiscal autonomy. Given this will be happening during a higher than average period of inflation, we’re talking about a real shift here. My rough calculations put that as representing local government going from raising £1 in every £4 it spends to nearer £1:£5. How can the Tories continue to claim to be localists?