Skip to main content

Tory breach of contract on capital gains tax

The Lib Dem-Con coalition agreement states: "We will seek ways of taxing non-business capital gains at rates similar or close to those applied to income, with generous exemptions for entrepreneurial business activities." The Treasury's budget report states: "Effective from 23 June 2010, capital gains tax will rise from 18 to 28 per cent for those with total income and taxable gains above the higher rate threshold... Basic rate taxpayers will continue to pay an 18 per cent rate on their gains. The 10 per cent capital gains tax rate for entrepreneurial business activities will be extended from the first £2 million to the first £5 million of qualifying gains made over a lifetime... The 50p rate of income tax took effect from April 2010 and will remain in place for the time being."
Spot the difference? Of course you do. This means that the Tories have already reneged on the coalition agreement for the sake of their friends the haves, and will do so again if allowed to get away with it. Meanwhile social services are slashed, so that elderly and vulnerable people who yesterday were acknowledged to need such services are today told they can't have them any more, which makes me choke. This feeble move on CGT is contrary not only to the coalition agreement but also to the advice of former Tory Chancellor Nigel Lawson who on the CGT rates question advocates reversing the economically unsound meddling of Gordon Brown. In this Lawson agrees with Saint Vince of Twickenham, a voice of sanity on this question regrettably unheard as he is silenced by loyalty and by parliamentary convention in his role as business secretary (though he ought to be chancellor).
What's to be done? My suggestion is that the Lib Dem leadership should find their backbones, which seem to have deserted them recently, and start playing the cards the electorate has dealt them, by which I mean the 57 Lib Dem MPs' votes, to see off the Tory right. Where are the Tory right going to go if they don't get their way?

Comments

Popular posts from this blog

My Remainer's Diary Day 299

For 298 days I have kept my #Remainer's Diary on Facebook. Two nights ago my FB account became inaccessible without explanation. So I'm back on Blogger.
Diary Day 299: the UK's Office of Budget Responsibility published its first Fiscal Risks Report, a 312-page tome, in accordance with a requirement introduced by Parliament in October 2015 that the OBR must produce a fiscal risks report at least once every two years. It is freely downloadable by anyone.  Fiscal is a fancy word for pertaining to government finances. Derivation: 16th century, from Latin fisc─ülis concerning the state treasury, from fiscus public money, the public purse. It is about government income and spending.  The Fiscal Risks Report refers to a wide range of "fiscal pressures", and says that the risks posed by Brexit "do not supplant the possible shocks and likely pressures that we have already discussed, but they could affect the likelihood and impact of many of them."  It states that imp…

ELDR news from Palermo

Here is my report back to Liberal Democrats who directly elected me (thank you!) to the party’s delegation to the European Liberal, Democratic and Reform Party (ELDR). The second Council meeting of 2011 (there are two annually) and the annual Congress took place in Palermo, Sicily on 23-25 November at the invitation of the Italia dei Valori (Italy of Principles) Party. There were resolutions and emergency resolutions proposed by member parties, too many to summarise here, of which the most significant was, I think, one from the UK Liberal Democrats on the prospect of war with Iran. The gist is that it expresses concern at military rhetoric, top-level consultations between military and political leaders and the stationing of military assets off the Iranian coast pointing to the possibility of pre-emptive attacks being launched by Israel and the USA against Iran., and it calls for steps to be taken in Europe to dissuade them. When the US military are still engaged in both Iraq and Afgha…

My #Remainer's Diary Day 300: constitutional crisis is coming

My #Remainer's Diary Day 300: I mull over a joint statement from the First Ministers of Wales and Scotland, Carwyn Jones and Nicola Sturgeon about the repeal bill. It says: “We have... put forward constructive proposals about how we can deliver an outcome which will protect the interests of all the nations in the UK, safeguard our economies and respect devolution.  “Regrettably, the bill does not do this. Instead, it is a naked power grab, an attack on the founding principles of devolution and could destabilise our economies.”  So a constitutional crisis that was latent ever since 23rd June 2016 is due to be thrashed out in Westminster debates.  A spokeswoman for the Maybot said she was not aware of a contingency plan for what might happen if Scotland or Wales refused legislative consent.  That is apart from the rows there will be about the bill's Henry VIII clause powers and putting human rights in doubt.  As the clock ticks, businesses act to protect themselves.  EasyJet announced…