Tendring Topics……..on Line
County
Council Elections
I
have always believed that local government officers (and civil servants) should
be prepared to give of their best in pursuing the policies, whatever they may
be, of the authority that employs them and should refrain from playing any
active part in local or national politics.
Although for most of my life my political outlook has been ‘leftish’ I
have had no problem working for Conservative controlled councils and have
always felt that I should not seek membership
of any political party.
That changed when I took early
retirement in 1980. I joined the Labour
Party which at that time seemed the party with which I felt the greatest
empathy. Since I had both knowledge and
experience of the ways in which local government functions, and had become an
experienced writer and public speaker, I put my name forward as a potential
candidate for election as a Labour candidate to the district or county
council. I had a very friendly
interview with ‘party bosses’ in Chelmsford
and was accepted as a potential candidate.
Fortunately perhaps, there were then no local elections in the immediate
future.
Hardly had I returned home than I
began to have misgivings. Would I really
manage to toe the Party line as would certainly be expected? Had I a thick enough skin to laugh off all
the insults to which I knew all politicians, local and national, are
subjected? I had recently been
commissioned to write a weekly ‘chat and comment column’ Tendring Topics for the local free newspaper, the Coastal Express. Wouldn’t I be better able to use that
column to further the causes in which I really believed, if I had no party
ties? Would I feel able to criticise
the Labour Party (as I knew I would sometimes want to!) without being
considered disloyal?
I withdrew my application for
candidature, though I remained a member of the Labour Party until Tony Blair
and New Labour made the Party
‘electable’ and – in my opinion – less worth electing!
This blog is
to be published on 30th April, just two days before the current
County Council Election. For my Clacton
North Division there are Conservative, Labour, ‘Tendring First’, Lib.Dem.,
Green Party, and UKIP candidates. In
recent blogs I have made it clear that I certainly couldn’t possibly vote for
either the Conservative or the UKIP candidate.
The policies of the Green Party attract me but I know perfectly well
that, under the first-past-the-post electoral system, a vote for their
candidate would be a vote wasted. After giving the matter a good deal of
thought I have decided that my vote will go to the Labour Candidate Samantha Atkinson. Her election leaflet (on which she is
portrayed with a friendly smile!) is attractive and doesn’t make extravagant
promises. She appears genuinely to have
the interests of us Clactonians at heart.
I think too, that she is the candidate most likely to deny electoral
victory either to UKIP or to the Conservative Party that
currently dominates the County Council. That was the Party that elected, and for many
years supported, Lord Hanningfield as the Council’s political leader!
Debt……or Deficit?
According to Wikipedia (the handy source of all knowledge for laptop
users!) even top politicians sometimes get confused about the difference between
the National Debt and the Deficit that the government is
determined to reduce. The National Debt
is the total sum of money that the government owes – mostly to pension funds
and savers in our own country but some to overseas sources. It is an enormous sum but its significance
depends to a great extent on its percentage of the GDP (gross domestic product,
or the total value of the country’s production or services during any
particular year). By that criterion the UKs National Debt is large but by no
means as large as many other countries.
The Internet yields the information that in 2011 the UK ’s National Debt was 68 percent of GDP while Japan ’s was 180 percent and the USA ’s
100 percent. In the immediate aftermath
of World War II our National Debt in terms of percentage of GDP was over twice
what it is today.
The Deficit, on the other hand, is the difference between the
Government’s expenditure in any one year, and its income in that same year. Mr Micawber, in Dickens’ novel David Copperfield summed up the effect of this on a domestic
scale like this, ‘Annual income twenty
pounds, annual expenditure nineteen pounds nineteen shillings and sixpence, result
happiness. Annual income twenty pounds,
annual expenditure twenty pounds nought and sixpence, result misery’. Comparing domestic finances with those of the
nation can be misleading, but an annual deficit inevitably means an annual
increase in the National Debt – and cannot be allowed to continue. Not just one, but several international
credit agencies have now downgraded the UK ’s ‘Triple A’ credit rating. This means that it won’t be long before a
higher rate of interest is charged on loans to the UK – and we shall be even deeper in
debt!
There are three main ways in which
the deficit can be reduced; by
cutting public expenditure, by increasing taxation, and by stimulating the economy
to create more jobs. That would mean more money coming in from taxation and
less spent on social security benefits.
The Government has so far attempted
only one of them seriously – and the effect has been to make matters worse
instead of better. They have desperately
tried to reduce public expenditure by sacking thousands of public servants,
both in the civil service, in the local government services, in the NHS and
(with the exception of the totally useless Trident ‘independent deterrent’) in
the Armed Forces. This is resulting in
an ever-growing army of unemployed, a run-down of public services and an
increased demand on the depleted social services and for benefit payments.
Their attempts to stimulate the
economy seem so far to have had little, if any effect. They have managed to
avoid an unprecedented ‘triple dip’ recession – but only just! Many private contractors depend upon orders
from public authorities, who have been starved of funds. The attempt to encourage house building by
helping would-be home buyers with their initial deposits is likely to drive up
house prices and create a bubble similar to the one that preceded the current
economic depression. The sensible course
of action would be to repeal the ‘right
to buy’ (better named compel to sell)
legislation and encourage local authorities to build homes for letting as they
did successfully during the century before the advent of Thatcherism.
It has been in the field of taxation
that the government’s actions have been particularly perverse. An increase in VAT added to already rising
inflation (oh yes, of course – inflation is yet another, thoroughly bad, way of
reducing the deficit!) and the Chancellor seems to have gone out of his way to reduce his revenue from income tax – the
only tax that relates directly to ability to pay, and which has never brought
anyone to starvation or homelessness.
Raising the level at which income
tax becomes payable takes thousands of people out of income tax altogether. I believe this is a mistake. It perpetuates the myth that there are
hard-working beings called ‘tax payers’ who keep a non tax-paying underclass in
idleness. We are all tax-payers and those who only pay VAT, customs duties on
cigarettes and the occasional drink, and buy lottery tickets in the vain hope
of winning a fortune, probably hand to the government a higher proportion of
their meagre earnings than many of those of us who are fortunate enough to be liable for
income tax.
It is sometimes overlooked too, that
raising the lower threshold of income tax doesn’t just help the poorest – it
reduces the amount of income tax paid right through the system. As for the
Chancellor’s actually reducing the highest rate of income
tax; quite apart from the obvious unfairness of rewarding the wealthy at a time
when the poor are being penalised, it seems incredible that this should have been
done at a time of national financial crisis. A correspondent tells me that the
revenue lost by that hand-out to those with an income of over £150,000 a year
will be twice as much as that likely to be saved by the ‘bedroom tax’ on those
in Council and Housing Association homes.
The same correspondent points out
that a great many wages are at or very close to the minimum wage of about
£15,000 a year and that the average salary is about £26,000. ‘Why
on earth then’, he asks, ‘is the
threshold for ‘very high earners’ liable for the highest rate of income tax,
set as high as £150,000? Surely few
people would have considered £100,000 unreasonable – and I personally would
have set it at £80,000, or about three times the average wage’.
Would the only possible alternative to this
government do much better? Possibly they wouldn’t – but perhaps there’s some
comfort in the thought that they could hardly do any worse!
The Money
Fiddlers!
It seems that when, in my
blog last week I suggested that the modern equivalent of Old King Cole’s ‘fiddlers three’ were the money fiddlers
who advise their wealthy clients how best to avoid paying income and corporation
tax without breaking the law, I was being inadvertently and quite accidentally
topical. I had no idea that the
Parliamentary Public Accounts Committee had been considering that very issue
and was about to make public some very disturbing conclusions.
It seems that there are nowadays not
three, but four, major firms of accountants in operation in this country that,
among other services, advise their clients on means of legal tax
avoidance. They are Deloitte, Ernst and Young, KPMG, and Pricewaterhouse Coopers. Between
them they employ 9,000 staff and make a profit of £2 billion a year in the UK and
£25 billion a year globally.
Parliament’s all-party PAC (Public
Accounts Committee) discovered that financial experts from these commercial
organisations have been seconded to HMRC (Her Majesty’s Revenue and Customs) to
assist in the drafting of legislation to prevent tax avoidance – and are then
in a position to point out to their real employers
the loopholes that will enable them to circumvent that legislation! Margaret Hodge, Committee Chairman, says
that it is as though poachers have become gamekeepers and are then using the ‘inside
knowledge’ they have obtained to poach more successfully.
Margaret Hodge is, of course, a
Labour MP and might be expected to be critical of a system introduced by the
government. Richard Bacon though, is a
Conservative MP serving on the PAC. He is reported as saying, ‘The United Kingdom ’s Tax Authority is
outmanned and outgunned by the four big accountancy firms. Their resources far outstrip those of the
taxman, but they also help HMRC to draft tax legislation. The big four know exactly where the loopholes
in the tax system are to be found because they helped to create them.
There is nothing that I can usefully add to that.
There is nothing that I can usefully add to that.
And
the Good News is……..
………..that the amount of violent crime in the United Kingdom
has fallen substantially during the past decade. The murder rate has been almost halved from
1.90 per 100,000 population to 1 per 100,000 and violent crime generally has
fallen from 1,255 to 933 per 100,000 though, in the county
of Essex, our own Tendring District
comes second only to Southend-on-Sea in having
the most violent crime!.
An ageing population may be among the factors responsible for this general improvement (we nonagenarians do tend to be non-violent!) However I believe that the development of DNA
identification and the ubiquitous CCTV cameras in town centres and large retail
outlets have reduced the chances of the criminal ‘getting away with it and that, rather than the severity of the
punishment is surely the most effective deterrent to crime.
How ironic
that the knowledge that ‘Big Brother is
watching you’, one of the most sinister features of George Orwell's. 1984 should prove to be a blessing in 2013!