Politics

In the current atmosphere I am finding it very hard to get interested in politics again. I find the present situation profoundly depressing. When we were on the continent in June there was general consternation at the British approach to Europe, on the one hand nobody wanted Britain to leave the EU, at the same time they could not understand the British renegotiation at a time when Europe faces two big crisis, GREXIT and the refugee issue from North Africa. Any renegotiation is a pinprick when compared to those major problems. Increasingly I am of the view that it is all being carried out to appease the Euro-sceptic wing of the Conservative party and has no benefit to the nation or to the EU.

So we come to this week’s political set piece in the UK the Budget. I do not know what to make of it. In many ways it looks as though the Conservatives have adopted policies that only a few weeks ago in the election campaign they were rubbishing. In some ways that is fine until you start to examine the minutiae of their proposals. I will take as my example tax credits or the wage subsidy. Now you will realise from some of my pre-election blogs that I think that tax credits are indeed a very bad idea as they allow employers to pay low wages that are subsidised by the state. However they are a fact of life so how as the Conservatives want to, do you reduce dependence on them. Their answer is the National Living Wage, gives rise to yet another three-letter acronym. They are correct because if wages increase than the need for tax credits decrease proportionately. It is a perfect symbiotic relationship. However if the government decreases tax credits while increasing the minimum wage then overall people are going to see an earnings reduction. This is not rocket science; it is not dependent on any other variables than a simple equation. So then why do we not see more transparency about this?

It is typical politicians obfuscation, they surmise that if things are made more complex then the general populace will not realise what is happening, while it is fiendishly difficult for an opposition to oppose in the sound bite era in which we live. So more than ever it is appropriate to say, “Beware Greeks bearing gifts or an NLA”.

The move on inheritance tax is more nakedly partisan. It gives a tax break to the already rich. Now I am in favour of tax breaks as the next man, but is it right that the government is decreasing the benefits in the form of tax credits to the working poor while giving tax breaks to the already rich. I will leave my readership to decide on the equity of that.

Well that is good just by writing this blog I am getting the old fire in the belly back. Watch out!