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Sunday, 7th September 2008

Clegg's electorally confused tax strategy

James Forsyth 10:03pm

Nick Clegg’s interview with the Sunday Telegraph today is a punchy affair. He derides the Tories as “the flaky party” on the economy and tells Melissa Kite that the Lib Dems are looking to go further than the 4p cut in the basic rate of income tax that they have already promised.

Now, those of us who support easing the tax burden should be happy about this. A  Lib Dem policy of tax cuts means that it can hardly be portrayed as a policy of the extreme right and should encourage the Tories to offer some more before the next election. But it seems an odd strategic decision for the Lib Dems when they have chosen to concentrate their resources on fifty Labour-held seats that are sufficiently left-wing that the Lib Dems not the Tories are the main opposition. (Clegg admits that the Lib Dems main aim when it comes to fighting the Tories is “holding on to what we gained last time.")

I’d be fascinated to see some polling in these 50 Labour seats about the popularity of tax cuts. As it is, the Lib Dems’ message and their target seats don’t appear to match.

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Jonathan Calder

September 7th, 2008 10:32pm Report this comment

The assumption behind this article seems to be that tax cuts are not popular with voters in Labour held seats.

Where does that leave the Conservatives?

James Forsyth

September 7th, 2008 10:44pm Report this comment

Jonathan, My point is that these aren't just Labour held seats but seats where the Tories aren't the main opposition to Labour. This suggests to me that they are fairly left-wing constituencies

Jonathan Calder

September 7th, 2008 11:19pm Report this comment

But quite a few of these seats - Watford, Oldham East, Hampstead - were Tory in living memory.

It is hard to see why they are more "left-wing" than Sunderland South, Sedgefield or Oldham West, which have the Tories in second place but always been Labour.

Jamie S

September 7th, 2008 11:45pm Report this comment

The fact that the Lib Dems are the opposition in these constituenies does not make them left-wing. It merely underlines the fact that there are huge swathes of the country that don't like the Conservative party, never having forgiven them for the Thatcher and Major Years. There are plenty of areas that just won't vote Tory because of the past. This has no bearing on whether they are right wing or left wing. Due to this reason, hard work, good local campaigning, and the occasional eye-catching policy, the Lib Dems have become the opposition in many of these places. Someone certainly had to be, and it wasn't going to be the Tories. The tax cuts are targeted at low and middle-income earners anyway, as part of a redistributive pakage that could see up to 90% of the country better off to some extent, so I see no reason why they wouldn't be popular in Labour areas as much as Tory ones.

cuffleyburgers

September 8th, 2008 9:10am Report this comment

The key point is that a lib dem pushing tax cuts is good for the country.

This country desperately needs a proper liberal party rather than the failed student union marxists it has been burdened with for decades

DM

September 8th, 2008 9:49am Report this comment

Depends where and how they propose to cut the taxes. Labour voters, like everyone else, are stung by tax on what they spend and what they save, not just on what they earn. Lib Dems are right to go for it.

As for some areas being historically anti-Thatcher or anti-Major...times move on. Generations die off, new ones emerge, people move in, others move out. It may be slow, but it is not impossible to turn round some constituencies. It is, after all, nearly 20 years since Thatcher herself was in power.
Labour managed to change its appeal between 1979 and 1997. The Tories have now changed with the times too, compared with the stridency of the mid 80s.

Richard

September 8th, 2008 10:16am Report this comment

Jamie S, I think you're about to find out just what huge swathes of the country profoundly hate the Labour Party for the Blair/Brown years and will never vote Labour again. Outside the inner cities, Labour is dead in England. As ye sow, so shall ye reap.

BTW, Balls now thinks the economy will come round to save Labour. He might recall that by the 1997 General Election, the economy was growing strongly...

BCS

September 8th, 2008 1:56pm Report this comment

Shifting to the right would certainly help the Lib Dems to eliminate the Conservatives completely in Lab-Lib marginal seats - and might even encourage a new form of tactical voting, which benefited the Lib Dems enormously from 1997-2005 of course.

David Bouvier

September 8th, 2008 5:55pm Report this comment

ERm... I think their policy is to cut income tax and bring in a local income tax - that will make SO much difference.

The do promise a £20bn waste cut.

Jamie S

September 8th, 2008 9:08pm Report this comment

@ Richard

I don't doubt there are huge swathes of the country who hate Labour as well, I just don't think that hatred is on a purely left-right basis. There are plenty of people who would naturally idetify at Labour supporters who won't support Labour, much as it was for the Tories in the past, and to a lesser extent currently. I was merely pointing out that the assumption that a Labour-Lib Dem constituency is a left-wing constituency is both naieve and oversimplified. As is the assumption that the voters in these so-called left-wing constituencies won't respond well to tax cuts

Jamie S

September 8th, 2008 9:13pm Report this comment

@ David Bouvier

The LIT plans are instead of council tax. LIT will lead to the vast majority of people paying less for local government than currently. The cumulative effet of a cut in income tax, added to the removal of council tax, replaced by LIT, the vast majority of people will pay less, or at worst be unchanged. The only losers will be those on huge incomes, and those who fall foul of the green taxes, who again will overwhelmingly be those who an afford to pay. Its a redistributive package, and that is exatly why it will play well in Labour constituencies.

Tim Carpenter LPUK

September 9th, 2008 10:44am Report this comment

The FibDums cut the income tax basic rate but IIRC they have not abandoned so called "green" taxes and higher rate taxes to keep revenues neutral. Fiddling while Rome burns.

Graeme Brown

September 14th, 2008 8:11pm Report this comment

It's absurd that the lowest paid pay tax on one hand and face marginal tax of 70% on the other as they claim tax credit. Income tax currently starts at around half the min wage level. Why not increase the personal tax allowance to £10,000and abolish the failed Tax Credits?

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