Tax cuts for all – what I want in the next Parliament

I made the case for tax cuts for all in the work I did for the Conservative Manifesto. We already know that tax cuts will figure prominently in that Manifesto. They will include

Raising the tax threshold before you pay any income tax to £12,500. This will take more people out of tax, and cut the tax bills of most people.

Raising the threshold before you have to pay 40% tax, taking it up from £42,000 to £50,000. This will help a lot of Wokingham voters, who are over or near to the current 40% threshold.

Ruling out any new Mansion tax on more valuable homes.

I also wish to see the Chancellor cut the top rate of Income tax from 45% to 40%, and remove the anomaly that puts some higher paid people onto a marginal tax rate of 60%.

I support hard work and effort, and want people to earn their rewards for what they do. I am glad the Conservatives have adopted my proposal on the 40% tax threshold, and am happy with further increases in the Standard rate threshold as a means of making work more worthwhile.

Tax cuts for all are what we need.

 

JOHN REDWOOD    SPEAKING FOR WOKINGHAM    SPEAKING FOR ENGLAND

Published and promoted by  Thomas Puddy for John Redwood, both of 30 Rose Street Wokingham RG40 1XU

 

Whose side are we on now in the Middle East?

When I and others opposed UK military intervention in Syria, we did so in part because we did not see a side we wished to be on. We were no admirers of Assad, spun then as the demon dictator,  whom Mr Hague wanted to oust from office. We were told there were moderate opposition forces who could take over and run  a western style democratic government, if we helped them dislodge the dictator.

I read about the opposition, and met some of them when Mr Hague invited them to London. It was already clear that parts of the opposition had more in common with Al Qaeda than with western liberal style democracy. One of the dangers lay in arming the so called moderate rebels, only to see the weapons get into the hands of the terrorist rebels either by agreement or by violence.

Today we learn of the capture of Idlib by Jabhat-al-Nusra, an important part of the Syrian opposition forces but scarcely a group of pro western moderates. Syria is now split between Assad in Damascus, Al Nusra in Idlib and ISIL in Raqqa.

Meanwhile conflict has spread to Yemen, with Saudi and other Sunni forces intervening militarily against the Shia interests. Libya remains badly war torn and split into warring bands.

I do not want the UK supporting either Sunni or Shia forces in these religious wars. I do not see how we could intervene helpfully to try to settle a democratic answer to the governing problems of Iraq, Syria, Libya or Yemen. The recent conquest of Idlib is a reminder of how complex these wars are, and how well supported on the ground some of the extremist movements still are.

Tax cuts for all – Let’s make work pay

 

I support tax cuts. The UK is overtaxed. Too much tax holds back work and effort, restricts enterprise and puts off saving and investment.

In the last Parliament many MPs were looking for new ways to tax, or wanting to put up the rates of existing taxes. Today in the election the Liberal Democrat and Labour parties advance two dangerous arguments. They first reckon that the UK is still undertaxed, and want to see more tax on property, on incomes and on effort. The second is they think that higher rates of some taxes will raise more revenue, when experience shows it may well lead to a drop in revenue.

I argued against raising Capital Gains Tax to the 40% the Liberal Democrats wanted in 2010. I helped secure a compromise, at 28%. This was still well up on Labour’s very sensible 18% rate. As I feared, it was too high and it has led to a major loss of revenue compared to the money collected at 18% prior to the financial crisis. I want to see this tax rate back down to say 20%, just a little above Labour’s 18% rate. The state will raise  a lot more revenue from it at such a rate.

I argued against raising the top rate of Income Tax to 50%, as that was bound to lead to a loss of revenue. On this occasion the Liberal Democrats prevailed for a bit, and the state suffered as less  tax was collected from the highest earners. Once a Conservative Chancellor insisted on cutting the rate to 45%, tax revenue went up from top earners. I want to see this rate back down to the 40% Labour used to impose.

I do not wish to see any so called Mansion Tax imposed. Tax cuts for all will boost the economy and lead to an increase in revenue as the country gets richer on the back of lower tax rates.

JOHN REDWOOD    SPEAKING FOR WOKINGHAM    SPEAKING FOR ENGLAND

 

Published and promoted by  Thomas Puddy for John Redwood, both of 30 Rose Street Wokingham RG40 1XU

Public spending – the longer perspective

Most of the time Labour wrongly claims Conservatives cut spending. Maybe Labour claims are an appropriate topic on April Fool’s day.  These claims usually become more extreme and absurd at election time. I thought a few facts might help inform the debate.

Throughout the Thatcher years in office, 1979  to 1990, Labour claimed  the Conservatives  were making deep cuts. Total managed expenditure was £315bn in 1978-79, the last Labour year (in 2007-8 prices). In her last year in office spending reached £358.6bn (in 2007-8 prices). In other words real spending, spending after allowing for inflation, had risen by 14% during the Thatcher years.

John Major was also attacked for Tory cuts, though less personally than Mrs Thatcher. By the time he left government  in 1997, spending had risen to £410.8bn (2007-8 prices), a further real increase of 14.6% over his period in office. Conservatives always increased real spending on the NHS, appreciating the popularity of the free at the point of use principle behind this service.

Labour continued with real increases in spending during their time in office, boosting the rate of increase considerably  in the later years after a more prudent start.  The Coalition has increased total managed spending from £669.7bn in the last Labour year to £732 bn in 2014-15, a small real increase and a 9.4%  cash increase. The Coalition, like its Conservative and Labour predecessors, always increased the NHS in real terms.

The issue we should be debating is not the quantity of money overall, but what we get for the money we do spend. Instead of having endless debates about how much real increase there has been, and who might offer the larger increase, we need debates about who can get best value for the money we spend. The debates should be more  about what public service  we want, not how much do we want to spend. When you go out to buy things for yourself you do not insist on spending up to budget, or insist on a real terms increase in your spending. You try to buy what you want for the lowest price, and are pleased if you get something better for less.

Jobs at the heart of the election

Over the last five years the economy has added 1000 extra jobs a day, every day. There are now almost 2 million additional jobs created since 2010. The Wokingham constituency has been particularly successful, with unemployment well below 1%.

Getting more people into work was a central feature of the welfare reforms and economic policy of the last five years. Nationwide there is still more to do, to move us closer to full employment where everyone who needs and wants a job can get one or can get the help and training needed to assist them.

The present economic policy is delivering. People ask how will the welfare bills be cut in the next Parliament? The way I want to see them  go down is through helping more people into work off welfare, and helping more people into better paid jobs so they need less benefit top up.

Controlling public spending and borrowing has played a necessary part in encouraging economic recovery. If we stick with the policy, we should generate more jobs, and more better paid jobs. Lower taxes, better infrastructure and good value for money from the public sector are all part of what is needed to foster the jobs that are at the heart of our future prosperity.

 

 

Published and promoted by Thomas Puddy on behalf of John Redwood, both of 30 Rose Street Wokingham RG40 1XU

The Brexit debate

 

Last Thursday morning I debated Brexit with Alastair Darling at the National Institute of Economic and Social Research where we are both Governors (an honorific post).

I wished to get across two main points. No-one I know of a Eurosceptic persuasion wishes to damage our trade with the rest of Europe in any way. We believe we can have a different relationship which does  not entail us being part of their political and currency union, whilst maintaining strong trade links on decent terms. The second is that the UK has a large balance of payments deficit with the rest of the EU, which makes it even more likely the other member states will want to do all they can to protect and buttress trade with the UK, as they are the winners from it.

The minority of British  people who want to stay in the EU enough to argue it is a good idea to belong, nearly always go on about trade. There are few in the UK who argue for full participation, few who want us to join the Euro, few who believe in a political union, few who want common taxation and welfare policies at the EU level. I would have more respect for advocates of our membership of the EU if they did come out and say they wanted to belong to a United States of Europe, and if they would explain why they thought that was both possible and desirable.

I argued that whoever wishes to help form the government in May 2015 needs to recognise that the EU project is hurtling on to full political union, as they wrestle with the troubles of the Euro. They are out to complete a banking union, they are edging towards a welfare union, and already assert considerable control over budgets and economic policy on Eurozone members. The UK does not want any of that, so it needs to define a new relationship now. That relationship should be based on trade.

The UK is in a strong position to create a new relationship based on trade. We are the customers, as we buy so much from them than they buy from us. To those who say there are dangers if we no longer are round the table when they make up their laws, I reply that we are not round the lawmaking table when the rest of the world makes their laws,. We run a surplus with them!

Many businesses want to be able to export, but do not like all of the controls and regulations that have come from Brussels in recent years. Dear energy is one of the worst features of the EU regime, which hinder many businesses. For the sake of business, we need a relationship based on trade and market access, where we do not have to take all of the high cost and negative parts of the EU policies for our trade at home or with the rest of the world.

The Wokingham Conservative campaign

JOHN REDWOOD       SPEAKING FOR WOKINGHAM   SPEAKING FOR ENGLAND

 

My campaign will centre on greater prosperity for all by promoting more economic recovery and by offering tax cuts for all.  I am supporting making it more worthwhile to work and save.

I will campaign for better transport and other public facilities as Wokingham grows in size. I want to see more people own their own home.

I want to be a voice for England, as we need a fair deal in an age of greater devolution to Scotland. I will speak for Wokingham, which needs local and national government support to ensure our quality of life and environment are not damaged by substantial new development.

TAX CUTS FOR  ALL

HOME OWNERSHIP FOR THE MANY

JUSTICE FOR ENGLAND   ENGLISH VOTES FOR ENGLISH NEEDS

 

Published and promoted by  Thomas Puddy for John Redwood, both of 30 Rose Street Wokingham RG40 1XY

Does Greece have a little list?

On Monday Greece is meant to produce her schedule of reforms to prove that the new government is serious about accepting the disciplines and rules of the Euro area. By all accounts it is taking time to produce much to go on the list. The government is much keener on measures which target tax avoidance and evasion, than on measures which cut spending. It is also willing to impose more taxes on the rich, for those  who  have stayed to pay.  Previous governments said they were seeking to cut avoidance and remove evasion, so it will be interesting to see what new ideas they come up with which might increase the revenue rather than make the position worse.

The truth is Greece is running out of money, and does need to borrow more. The EU has slipped them another 2bn Euro, and the European Central Bank has cut them a lot of slack, through its Emergency Lending facility. They have needed that, as there has been some flight of deposits out of Greek banks during the present period of uncertainty.

Greece needs money for a variety of purposes. The state needs more money to pay its daily bills, as it appears the primary balance or surplus has slipped away. The state needs money to repay debts owing soon. The commercial banks need money to deal with deposit outflows and to keep them liquid enough for their day to day operations.

Many Greek people need money. Out of work and squeezed too much, the voters have made clear they want change. The trouble is, the state has no extra money to give them, and the private sector is still badly hit by poor demand, lower incomes and by the tax demands of a state that needs more cash.

The government can see this, and wants to change the position somehow. It finds instead that creditors expect payment and the European institutions expect Greece to play by the rules. Greece lives on in hope that the EU will make an exception again for this country. The governments of Spain, Italy and Portugal are none too happy at any special treatment. Why should Greece be let off the controls if we have to keep to them, they ask? Ringing in their ears is the noise of new challenger parties in their countries, watching everything that Syriza says and does with a view to exploiting it.

I cannot ignore this drama. A huge amount is resting on it. The Eurozone is inching forwards economically at last. It is in the UK’s interest that their economies do pick up, and their citizens buy more goods and services. Greece could still damage all that. Cans kicked down roads too many times fall to bits.

Health policy

In 2009-10, Labour’s last year in office, health spending (on NHS England) was £97.6bn. There have been rises each year since, taking the total to a forecast £111.8bn in 2015-16.  So much for the story of endless cuts.

There were cuts in the bureaucracy under the Coalition’s changes made in the first half of the Parliament. These changes were designed to require fewer administrators, freeing more money for clinical staff, and to allow more decisions to be taken locally by senior medics and senior administrators who know and understand their local health service.

The Conservatives are offering to complete their move of the service to a seven day a week service. Progress is being made in this direction. A Conservative government next time would complete the transition. GP services would be available at week-ends as a matter of routine, and there would be Consultant led services working in hospitals seven days a week as well. There is an extra cost for this, which the NHS is spelling out. The government has met their requests for extra money to cover this for 2015-16, and would meet reasonable requests in future years which will be negotiated budget year by budget year in the normal way.

Labour say there is a financial and privatisation threat to the NHS, but I see no evidence of this. Labour has not made an offer of better or more extensive service to the public. They concentrate on matters of internal organisation, and have decided to impose profit controls on any private sector contractor the  NHS might use. It is difficult to see how this might help, as any such contracts are only awarded after competitive tender to ensure a fair price, and are presumably only put out to tender where they think the private sector can do it cheaper and better. The NHS under the coalition is not under any new directive to contract out. In office Labour Ministers allowed substantial contracting out by the NHS presumably to achieve savings and improve performance.

There are two very odd features to Labour making the NHS the centre of its General Election campaign. The first is, the General Election is irrelevant to the NHS in Wales and Scotland, so why is Labour ignoring their vote in those two countries by talking all the time about NHS England? The second is, Labour has nothing new or positive to say about the NHS. It is not offering us a better service, not telling us how it will prevent Stafford style crises in the future, and not telling us if it will start to put patients first with better services. There is no evidence from Wales, where Labour does run the NHS, that it is better – far from  it.

ALL MPs CEASE TO BE MPs ON DISSOLUTION

I cease to be an MP tomorrow. Once Parliament is dissolved all MPs lose office and cease to qualify for salary or expenses.
This website is not an MP website, but my personal website paid for out of my own income. I will continue to run it during the election period. Any previous reference on this site to my work or role as an MP remains on the historical record but relates only to my past role.
I become the Conservative Parliamentary candidate for the Wokingham constituency. I will use my local pages for the Wokingham campaign. There will be a daily piece on local and party matters. This will be my voice as Wokingham’s Conservative candidate.

I will  continue with the  general  blog as well. This will provide commentary on  UK matters  and on wider international issues as before. This will not be an official Conservative site, and will not change style because there is an election on.