From: Liberal Conspiracy
The Labour party need to step up their offensive on the economy.
Here are five suggestions for shadow chancellor Ed Balls to consider.
1. Regaining economic credibility with the public
Alistair Darling’s recent book damaged Ed Balls, and even Nick Clegg leapt on these remarks, describing the Shadow Chancellor and Ed Miliband as the “back room boys”. The costs of PFI projects under Labour, particularly hospitals, also continue to come under heavy scrutiny.
It is now time for Balls to clearly assert that over the medium term (perhaps 10 or 15 years) – the budget (excluding investment) must be balanced. Doing so will restore credibility. However, to change perceptions completely, he needs some ambitious ideas which will resonate with the public.
2. Have a real agenda to change the economy
We have seen some of the frailties of lightly regulated market capitalism, and it is not simply enough to just simply blame the bankers. A new message is needed.
The Shadow Chancellor is a Co-operative Party MP and this is the area he should focus on. Co-operatives and mutuals have a social conscience, their workers are usually happier, productivity is often better than in the private sector and there is greater equality in the proceeds of success. Major tax breaks should be offered to co-operatives and other initiatives should be adopted to increase their numbers.
3. Getting capital into businesses
Small businesses are still not being lent the money they require. In reality, banks are still only going to lend to those who fit within their criteria – rather than to businesses which could benefit society. There are examples of excellent mutuals out there trying to facilitate lending – for example the Black Country Reinvestment Society – and they should be given greater support.
However, more needs to be done – and Matt Pitt’s idea to introduce a British Investment Bank could really drive this agenda from Westminster.
4. Solving the housing problem
Both a lack of housing and growing social housing waiting lists are major problems. As a start, property developers sitting on developable land for financial reasons should be pressed to start building houses quicker. However, to fully tackle the housing problems we face, new approaches are required.
A new nationwide social housing building programme, focussing on places where demand is assured, should be considered. Current social housing tenants could then be sold these new homes for cost price (not market value), thus freeing up existing social housing for those in need.
5. Making the tax system fairer
The tax system needs a rebalancing – by focussing on excessive behaviour and wealth. Vince Cable’s ‘mansion tax’ should be adopted as a policy, while a land tax should be fully considered. New taxes on littering (allowing charges to be levied on top of business rates), on chewing gum (by adding 1p to the cost of each packet) and pollution (Australian style carbon tax) should be introduced.
Furthermore, our fines system could be made fairer, by looking at the Swiss model in respect to driving, and making the level of fine dependent upon income.
These changes could allow for adjustments to be made elsewhere in taxation, focussed upon helping those on low and middle incomes.
The Labour party need to step up their offensive on the economy.
Here are five suggestions for shadow chancellor Ed Balls to consider.
1. Regaining economic credibility with the public
Alistair Darling’s recent book damaged Ed Balls, and even Nick Clegg leapt on these remarks, describing the Shadow Chancellor and Ed Miliband as the “back room boys”. The costs of PFI projects under Labour, particularly hospitals, also continue to come under heavy scrutiny.
It is now time for Balls to clearly assert that over the medium term (perhaps 10 or 15 years) – the budget (excluding investment) must be balanced. Doing so will restore credibility. However, to change perceptions completely, he needs some ambitious ideas which will resonate with the public.
2. Have a real agenda to change the economy
We have seen some of the frailties of lightly regulated market capitalism, and it is not simply enough to just simply blame the bankers. A new message is needed.
The Shadow Chancellor is a Co-operative Party MP and this is the area he should focus on. Co-operatives and mutuals have a social conscience, their workers are usually happier, productivity is often better than in the private sector and there is greater equality in the proceeds of success. Major tax breaks should be offered to co-operatives and other initiatives should be adopted to increase their numbers.
3. Getting capital into businesses
Small businesses are still not being lent the money they require. In reality, banks are still only going to lend to those who fit within their criteria – rather than to businesses which could benefit society. There are examples of excellent mutuals out there trying to facilitate lending – for example the Black Country Reinvestment Society – and they should be given greater support.
However, more needs to be done – and Matt Pitt’s idea to introduce a British Investment Bank could really drive this agenda from Westminster.
4. Solving the housing problem
Both a lack of housing and growing social housing waiting lists are major problems. As a start, property developers sitting on developable land for financial reasons should be pressed to start building houses quicker. However, to fully tackle the housing problems we face, new approaches are required.
A new nationwide social housing building programme, focussing on places where demand is assured, should be considered. Current social housing tenants could then be sold these new homes for cost price (not market value), thus freeing up existing social housing for those in need.
5. Making the tax system fairer
The tax system needs a rebalancing – by focussing on excessive behaviour and wealth. Vince Cable’s ‘mansion tax’ should be adopted as a policy, while a land tax should be fully considered. New taxes on littering (allowing charges to be levied on top of business rates), on chewing gum (by adding 1p to the cost of each packet) and pollution (Australian style carbon tax) should be introduced.
Furthermore, our fines system could be made fairer, by looking at the Swiss model in respect to driving, and making the level of fine dependent upon income.
These changes could allow for adjustments to be made elsewhere in taxation, focussed upon helping those on low and middle incomes.
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