I am writing from outside the UK and distance is maybe changing (improving, I think) my perspective.
It currently seems a 'given' that the Lib Dems will receive a hammering at the next General Election. Much of this will be due to their perceived 'betrayal' over tuition fees. That the support of tuition fees was an absolute requirement, given the awful state of the UK finances, at the time of the change of government, will count for little with an electorate, that like others in Europe, prefers to think that 'the situation can't really be that bad, can it?'
The Tories too are suffering a leakage of support -not on a Lib Dem scale - but worryingly enough, all the same.
So what to do?
I would suggest that now is the time for boldness! Some suggestions follow which I believe would, if presented as a Coalition policy and loudly supported by both parts of the Coalition, help both the Tories and the Lib Dems.
Welfare Reform
Working people (there are still a few of us!) look at the £26,000 cap and still see that this is WAY too high. Maybe the level was set by Westminster MPs who see that in London that isn't such a large amount, but on Merseyside, Tyneside, Manchester and Birmingham, such a cap is still seen as high and as offering no incentive to go out and get a job.
The Average wage is £26,000. On this tax and National Insurance would be assessed, so the 'Welfare crackdown' or as Labour puts it, 'the attack on the poorest members of society' still leaves some folks better-off out of work, than in it.
Two further reforms:
Restrict all benefit eligibility to those legally resident in the UK for the two years preceding a claim. If that means changing the law or abandoning the European Courts, then do it. Hundreds of thousands of Southern Europeans heading towards soft-touch UK, should concentrate the minds of our politicians (should do, but probably won't as they are in such thrall to Brussels and Strasbourg!).
Cut benefit for people that have refused to accept three jobs. They get 2 job interviews and can turn those down, if they turn down the third, their benefit is cut by 25%. Refuse the next one, that's a further 25% cut. Oh, and if they get sacked from the job they take, in the first three months, same rule applies. And benefit cut means ALL benefits - unemployment, housing, council tax etc..
Growth
On its own, Welfare Reform is politically problematic. Though if we don't do something to be bring down public expenditure, we might end up having this forced on us by the IMF!! The way though to make it more acceptable is if there is a strategy for growth. Making statements such as 'get a job you lazy scrounger' might allow an over-taxed worker some release of frustration but if there isn't a job to go to!?
I have yet to read any accounts of how job and economic growth is to come, without the commentators looking for this to be built from the ground-up at small and medium sized enterprises. Tesco or Asda hiring on an extra 5,000 workers (many of whom will be part-time) grabs the headlines, but it is the 1 or 2 hired at the local plumbers, or engineering firm or garage, which, when multiplied across the length and breadth of the country, that will get the economy growing.
So........
Government (Local and National), in the form of excessive regulation needs to get off of the backs of these business. They (companies less than 100 employees) should be exempted from Working Time directives, exempted from unfair dismissal legislation and enjoy a far, far lighter Health, Safety and Environment regime than that applied to the larger companies. These bigger companies can afford, Equality Officers, Environmental Impact and Risk Assessment Officers, Green Business Stewards and such. In many of these small companies these bureaucratic roles end-up being filled by the owner or spouse and just take them away for growing their business - that is the business growth that will lead to hiring more employees!
Local Government should exempt local employers that employ less than 100 people from Business Rates or if that is to onerous, should give a discount for each new employee hired. Hire one new employee, 10% off of your Business Tax, hire 5 employees, 50% off etc.
The poor working stiff still makes up the majority. These are the folks that paying their high income taxes and National Insurance and VAT and ever higher fuel charges/Green Taxes these latter to wastefully fund an extravagant and totally unnecessary policy on Climate Change (remember it used to be called Global Warming, until the 'science' was found to have been doctored?).
My view is that people understand that under Labour, things got way out of hand. We understand that cuts need to be made and those working in the public sector need to suffer a greater sacrifice as they benefited most from Labour's tax-payer funded largesse.
We see through Labour's opportunistic politicking at a time when all developed economies are suffering but some see that at least Labour seem to have a policy. It is the same old flawed policy that they used to get us into the current mess, for which they have never said sorry, but at least it seems better than what we are getting!
Pass this on to your Tory and Lib Dem colleagues, it can only help them get re-elected!
It currently seems a 'given' that the Lib Dems will receive a hammering at the next General Election. Much of this will be due to their perceived 'betrayal' over tuition fees. That the support of tuition fees was an absolute requirement, given the awful state of the UK finances, at the time of the change of government, will count for little with an electorate, that like others in Europe, prefers to think that 'the situation can't really be that bad, can it?'
The Tories too are suffering a leakage of support -not on a Lib Dem scale - but worryingly enough, all the same.
So what to do?
I would suggest that now is the time for boldness! Some suggestions follow which I believe would, if presented as a Coalition policy and loudly supported by both parts of the Coalition, help both the Tories and the Lib Dems.
Welfare Reform
Working people (there are still a few of us!) look at the £26,000 cap and still see that this is WAY too high. Maybe the level was set by Westminster MPs who see that in London that isn't such a large amount, but on Merseyside, Tyneside, Manchester and Birmingham, such a cap is still seen as high and as offering no incentive to go out and get a job.
The Average wage is £26,000. On this tax and National Insurance would be assessed, so the 'Welfare crackdown' or as Labour puts it, 'the attack on the poorest members of society' still leaves some folks better-off out of work, than in it.
Two further reforms:
Restrict all benefit eligibility to those legally resident in the UK for the two years preceding a claim. If that means changing the law or abandoning the European Courts, then do it. Hundreds of thousands of Southern Europeans heading towards soft-touch UK, should concentrate the minds of our politicians (should do, but probably won't as they are in such thrall to Brussels and Strasbourg!).
Cut benefit for people that have refused to accept three jobs. They get 2 job interviews and can turn those down, if they turn down the third, their benefit is cut by 25%. Refuse the next one, that's a further 25% cut. Oh, and if they get sacked from the job they take, in the first three months, same rule applies. And benefit cut means ALL benefits - unemployment, housing, council tax etc..
Growth
On its own, Welfare Reform is politically problematic. Though if we don't do something to be bring down public expenditure, we might end up having this forced on us by the IMF!! The way though to make it more acceptable is if there is a strategy for growth. Making statements such as 'get a job you lazy scrounger' might allow an over-taxed worker some release of frustration but if there isn't a job to go to!?
I have yet to read any accounts of how job and economic growth is to come, without the commentators looking for this to be built from the ground-up at small and medium sized enterprises. Tesco or Asda hiring on an extra 5,000 workers (many of whom will be part-time) grabs the headlines, but it is the 1 or 2 hired at the local plumbers, or engineering firm or garage, which, when multiplied across the length and breadth of the country, that will get the economy growing.
So........
Government (Local and National), in the form of excessive regulation needs to get off of the backs of these business. They (companies less than 100 employees) should be exempted from Working Time directives, exempted from unfair dismissal legislation and enjoy a far, far lighter Health, Safety and Environment regime than that applied to the larger companies. These bigger companies can afford, Equality Officers, Environmental Impact and Risk Assessment Officers, Green Business Stewards and such. In many of these small companies these bureaucratic roles end-up being filled by the owner or spouse and just take them away for growing their business - that is the business growth that will lead to hiring more employees!
Local Government should exempt local employers that employ less than 100 people from Business Rates or if that is to onerous, should give a discount for each new employee hired. Hire one new employee, 10% off of your Business Tax, hire 5 employees, 50% off etc.
The poor working stiff still makes up the majority. These are the folks that paying their high income taxes and National Insurance and VAT and ever higher fuel charges/Green Taxes these latter to wastefully fund an extravagant and totally unnecessary policy on Climate Change (remember it used to be called Global Warming, until the 'science' was found to have been doctored?).
My view is that people understand that under Labour, things got way out of hand. We understand that cuts need to be made and those working in the public sector need to suffer a greater sacrifice as they benefited most from Labour's tax-payer funded largesse.
We see through Labour's opportunistic politicking at a time when all developed economies are suffering but some see that at least Labour seem to have a policy. It is the same old flawed policy that they used to get us into the current mess, for which they have never said sorry, but at least it seems better than what we are getting!
Pass this on to your Tory and Lib Dem colleagues, it can only help them get re-elected!
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