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Tax rises look likely after Queen's speech
Joe Murphy, Paul Waugh and Nicholas Cecil18 Nov 2009
Post-election tax increases moved closer today as Gordon Brown made his pitch for a fourth Labour term with promises aimed at families worried about children and elderly parents.
The final Queen's Speech before an expected 6 May polling day unveiled a wishlist of 15 Bills, including a £670 million plan to care for 400,000 elderly people at home, plus new rights to personalised schooling and quicker treatment on the NHS.
The Prime Minister said he wanted to go further on care for the elderly, promising a National Care Service in the new year that would cost billions and may be partly funded by compulsory or optional payments. Labour's last big push also includes legislation binding a future government to halve the borrowing requirement over four years.
Intended to shore up investor confidence in the Treasury's plan to cut borrowing, the fiscal straitjacket leaves little room to avoid tax rises if big-spending ministers like Ed Balls are successful in negotiating real-terms budget rises from the Chancellor.
Lord Mandelson left open the door to taxes going up when asked at a Labour Party briefing if they were being locked in. “Of course, there will be changes in tax and public spending, so much is obvious,” he said.
“But when and how and on what basis... is something that government will address initially in the pre-Budget report and again after the election.” Mr Balls this week put in a spending bid of a reported 1.3 per cent a year in real terms, totalling an estimated £2.6 billion up to 2014 — a demand instantly rebuffed by the Chancellor. Income tax, National Insurance and fuel duties will all rise to curb the deficit.
Carl Emmerson, of the Institute for Fiscal Studies, said more rises were likely in the long term. “The Treasury has a big hole to fill and half of it will be dealt with by tax rises up to 2014,” he said. “They have not yet said how they will deal with the other half, from 2014 to 2017. The first 12 months after the general elections in 1992, 1997, 2001 and 2005 saw tax rises, so that would hardly be a surprise.”
Today's programme was dismissed as an “Alice in Wonderland” package by Conservatives because only a fraction of the Bills stand a chance of becoming law. Even ministers admitted it was nakedly political, designed to draw “dividing lines” with the Tories and to form the basis of an election manifesto.
There will be a Bill to help clean up the City, including tearing up bankers' contracts to rein in the bonus culture. For Labour's Left and the unions, there are laws to give workplace rights to agency workers, enact the ban on cluster bombs and a Bill to enshrine a pledge to wipe out child poverty by 2020.
There was even a Bill that appeared tailor-made for the Prime Minister's ambitious ally Peter Mandelson, granting him the right to resign his peerage and run as an MP again.
However, there are only 70 Commons sitting days and 33 legislating days left in the Lords for the Bills to be debated and passed, making a mockery of such a weighty list.
Tory leader David Cameron derided it as pre-election gimmickry, while Conservative peers said they would block in the Lords any Bills that they disagreed with.
“They are not passing laws for the good of the country, they are passing laws to try and save the Labour Party,” said Mr Cameron. “This isn't today the end of this government, but let us hope it is the beginning of the end.”
Labour's key pledges
Child Poverty
Labour's long-held pledge to “eradicate” child poverty by 2020 will be enshrined in a legally binding commitment.
There will be a clear definition of what the pledge means, with different targets on numbers of youngsters living in low-income homes and suffering “material deprivation”.
Annual reports will have to be made to Parliament on progress towards the target and all councils will have a new legal duty to tackle child poverty in their area. The Tories will not oppose the Bill because they believe that would mean falling into “Labour's trap” to portray them as uncaring. But they doubt the effectiveness of the legislation.
Health
Health service patients will get legally binding rights from next year to a cancer appointment with a specialist within two weeks and to treatment for other complaints within 18 weeks.
Contrary to expectations, there is no NHS Bill in the pre-election programme but Government ministers denied they were backing away from the plan. The entitlements were alluded to in the Royal Address as a means to “guarantee good service” and will be made law by secondary legislation. From April 2012, patients get a right to an NHS health check every five years.
Crime and Security Bill
Yobs blighting towns and cities are to be targeted in the Crime and Security Bill.
It encourages a greater use of parenting orders for adults whose children have flouted Asbos. Police time will be freed up by allowing officers to record less information on stop and search forms.
Suspected wife-beaters will face temporary bans from their home to protect victims.
Convicted criminals will have their DNA held on a database for life. Adults arrested, yet not charged, will have their DNA kept for six years.
A clampdown on rogue wheel-clamping firms is also proposed.
Children, Schools and Families Children will get a legal right to a good education in a Bill drawn up by Education Secretary Ed Balls. It includes 23 guarantees for pupils and 15 for parents on standards.
They cover one-to-one tuition for struggling pupils, five hours of PE a week and promoting healthy lifestyles. But some teachers fear the new rights will be a “whingers' charter” and lead to legal action.
There is also a licensing system for teachers and reforms to the primary curriculum. Schools would get more financial freedoms but be expected to work in partnerships.
Financial Services
A crackdown on City bonuses, risk-taking and misconduct is aimed at preventing a repeat of the current financial crisis.
A beefed-up Financial Services Authority will push through tighter regulation. Crucially, banking bonuses and pay will be linked to risk, with an emphasis on payment in shares, not cash, over several years.
There will be a new statutory Council for Financial Stability, chaired by the Chancellor. Big banks will have to set up “living wills”, making it easier to wind them down.
A separate Fiscal Responsibility Bill will put into law plans to halve the £175 billion deficit by 2014 and balance the books by 2018.
Other Bills
Cluster Munitions To ratify international treaty banning cluster bombs.
Energy Will protect poorest from high electricity and gas costs.
Constitutional Reform To allow peers to resign and guarantee Commons votes on going to war.
Lords Reform To make Lords 80-100 per cent elected.
Digital Economy Universal broadband by 2012.
Flood and Water Management To manage long-term flood risks.
Bribery Bill To reform criminal law to enable courts to respond more effectively.
Reader views (34)
Labour wants re-election after a massive public debt, which is bigger than the IMF loan, poor financial services regulation (Northern Rock, RBS and HBOS then Lloyds) reduced public transport and education, higher unemployment and poverty. The Nation wants a change in 2010.
- Andrew, London, 18/11/2009 22:53
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Come on, be reasonable, the lucky swine in Britain who are fortunate enough to have jobs will just have to dig deep to fund benefits for the shirkers, slackers, column-dodgers, the work-shy, the indolent and baby farm proprietresses.
- Gwilym Rhys-Jones, marbella spain, 18/11/2009 22:39
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Just how many more tax rises are we going to have to put up with? Get rid of this bunch of Charlatans asap....
- Richard, Surrey, 18/11/2009 21:06
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Load of waffle, those who save and are thrifty will pay as usual, those who spend, drink, smoke, will be better off. If you've worked to pay for a house for 25 years and your neighbour doesn't, guess who's helped? Its always the same. This government has eroded freedom of speech, passed over 500 new laws and we're still worse off. The party who decides to repeal all of them, the Human Rights Act, Race Relations Act, take us out of the EU, gets my vote and many of my family and friends.
We now have five choices to choose from and the three who have been in power for the last 100 years can for me go and live in the EU they love so much and leave us to the new freedom we shall have once out. Able to speak our minds, decide our own destiny, oh how I dream, but dreams do come true, don't they?
- Barbara, West Midlands, 18/11/2009 18:17
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Gordon can do and say what he likes because everyone is sick and tired of the man and whatever he does will end in election failure. Just go.
- Alex C, London, 18/11/2009 18:01
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We have heard these promises all before from lying labour and Brown/Blair why should anyone believe them now after they have ruined open door to all Britain and NHS,Schooling,Taxes,Wars,Dome,MPs scandel etc etc etc.
Good riddance to bad rubbish as far as I am concerned Brown and his fellow Scots have milked us all for far to long now.
- Mike, London England and once GREAT Britain, 18/11/2009 17:27
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This is garbage, more promises, unfunded blank cheques to be written. Never mind how to pay or deliver real change to benefit people as long as you can come up with some dividing lines for political purposes. PATHETIC call an election so we can be rid of you.
- Nickspurs, London, London, 18/11/2009 17:22
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Yet again another example that the only policy that the Labour Party have is more taxes. There is a point fast approaching that it will no longer be possible to tax any more out of the working. Note I say working, not working class... anyone who works is now subject to massive taxes and unless you are a civil servant a pretty poor deal for pension.
New Labour = New Taxes.
The only good factor in the economy right now is the lower payments on mortgages. A greedy Government is introducing as many taxes as possible to take away this money which will cause massive house repossessions when the interest rates go up next year. There is no more money to be had from taxation. We are taxed to the hilt and Labour have made sure our pensions are in ruins, our houses are worthless, pensions have been raided and if you want to leave anything for future generations, forget it, it will all go to the Government to fritter away on the next politico stupid scheme.
- Stephen, Swindon, 18/11/2009 17:14
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The UK could save so much of the tax paid by us workers if they did not continue with pointless wars abroad. I'm sorry, but this country needs sorting before spending money destroying other countries.
- Dom, london, 18/11/2009 17:03
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Will, London
"If for some people there is no house/savings then the state can pay for them - but not for everyone - we cannot afford it"
Typical socialist twaddle Will. Penalise the prudent - those who make efforts to buy their own home, put money aside for the future in Savings. Benefit the profligate who spend, spend, spend, and then claim everything on "the state" (i.e. the rest of us)to provide them with "free" benefits. That's what Tony Blair & Gordon Brown have done over the past 12/13 years and that's the culture they've created
- Malcolm, London, 18/11/2009 16:48
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A pathetic attempt - a lot of glib promises without mentioning any measures to deal with the debt mountain.
How can Brown be so naive to think a majority of the electorate will swallow this!.
- Bill Chaplin, Camden, 18/11/2009 16:47
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that would cost billions and may be partly funded by optional payments." This is hardly a story at aall, as we all know Labour will never raise yaxes to pay for care for the elderly
- Keith Price, Luton, Emgland, 18/11/2009 16:27
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Quote: Will, London. What's so wrong about having to use the equity in your house / sell your house / use your savings to pay for care. At 42 I expect to have to do this one day myself. Sure I'll have less to leave to my children, but better that than making THEM pay for me in the form of higher taxes. If for some people there is no house/savings then the state can pay for them - but not for everyone - we cannot afford it
Nothing wrong with it at all, Will; that is exactly what you will have to do, so why all this hype from New Labour who are only following Thatcher’s ideas etc, and why the need to pay National Insurance all your working life, if when you need help after your working life ends; you have to pay all over again for it etc?
The new thinking about leaving it all to the kids has been abandoned by many of the wealthy members of our society; they think it is better for their kids to earn their own living, and repeat the status quo etc; which I personally agree with etc.
You will learn more about all of this when you retire, Will; but the only true socialists you will ever meet in your old age, will be your loving family, lets hope they will care for you, because care homes are the pits, not a nice reward for a lifetimes work and constant taxes etc.
I wish you all the best, Will; because you will need it under New Labour and the Tories....Mick..
- Mickinlondon, london, 18/11/2009 16:16
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...And the sun will shine forever throughout this land,
and no child will forego 20 Meg broa - ord -band,
and for it`s mother a free 50 inch plasma Tee- HEE-VEE....
And the Taxpayers will Labour forever and ever ……
so be it.
- Darius, London UK, 18/11/2009 15:37
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So, Labour have spent 13 years destroying the pensions system, leaving people unable to care for themselves after retirement and in old age.
Then to make up for that they decide to raise taxes to increase state care for the elderly and to supposedly "allow the elderly to live independently for longer". That makes sense doesn't it?!
I get the feeling that the increase in tax will go towards anything but the elderly, or at least the funds will not be put to good use.
This party are a complete joke. Their manifesto is basically designed to put right everything they've done wrong for the last 13 years.
So why on earth would anybody have the blind faith or the sheer stupidity to elect them to clean up their own mess?!!!
- Paul, London, 18/11/2009 15:35
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This sounds more like a check list of what New Labour should have done while in power, rather than what they are going to do in the future. Why have they left it this late to give voice to these so-called intentions? I don´t think the British electiorate will be fooled for one minute.
- Graham Rodhouse, Helmond, Netherlands, 18/11/2009 15:15
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What's so wrong about having to use the equity in your house / sell your house / use your savings to pay for care. At 42 I expect to have to do this one day myself. Sure I'll have less to leave to my children, but better that than making THEM pay for me in the form of higher taxes. If for some people there is no house/savings then the state can pay for them - but not for everyone - we cannot afford it.
- Will, London, 18/11/2009 14:57
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National insurance goes up in 2011 and if this Government is in power then all taxes all go up. What this government needs to address is stopping the child trust which costs billions to implement, stop working tax credits, stop the £190 healthy payment for pregnant women, stop immigration from all the over the world especially the EU, then we might have some spare cash around to pay off the debt. Only doing this, will stop other people having to pay higher taxes.
- Frances, Leics, 18/11/2009 14:48
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Free care at home?
Quote: Free personal care should be guaranteed to those with diseases such as Alzheimer's.
Well I think New Labour is missing the point here; we already get free care at home from our families, because we sure don’t get any help from the government or local council social services.
This same government had a public consultation on all kinds of mental dementias etc, that consultation finished early last year, and they estimated after that, that it will take five years just to stop the age discrimination and human rights abuse of the aged and sick in the UK etc; mind you, they also said they might need another consultation, on the prior consultation etc, and if you keep on having public consultations, it could take a 100 years for any of these consultations to actually be acted on etc.
Local council social services already get government and tax payer’s financial help; but once you actually get Alzheimer’s disease; Social Services disappear from the radar screen totally, so you are left to care for the victims of dementia, at Home, and Home Alone.
This is free personal care at home today, and this is your only guaranteed help for those with diseases such as Alzheimer's.
We have not even seen our local council social workers for two years now; and I live in Westminster; God help those victims that live in poorer areas, they will starve to death if they have no family support.
In Westminster; they won’t even give you a blue badge?
- Mickinlondon, london, 18/11/2009 14:45
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No point in me saving my pennies in a pension - the Labour government is going to take care of me...I shall spend, spend, spend then go and live in a council flat and sponge off the state when I'm old. Labour once again screwing the middle class over.
- Mark, London, 18/11/2009 14:37
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There is another means by which Brown and Mandelson can demonstrate what they think their advantages are over the Conservatives and relinquish the rhetoric, by IMMEDIATELY calling a General Election. This lame duck Prime Minister has absolutely no reason for waiting, other than some sort of strange scorched earth policy.
- Bingham Macnamara, lymington, hampshire, 18/11/2009 14:25
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BJ, see picture at top of story. She could hardly contain herself!
- Dannyp, Egham, 18/11/2009 14:20
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We are all born free, and taxed to death.
As for the equality bill, I thought they were worried about the BNP, why should white males take second place for jobs?
- P Staker, London, 18/11/2009 14:17
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Nice to have a picture of a pensioner who is already useing our tax's for her care.
- Jim, London, 18/11/2009 14:04
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Labour does keep its promises. We got a referendum on the E.U. Constitution (Lisbon Treaty), letting us decide if we want the U.K. or the E.U. as our country -- just as Labour promised. This is a party that always honours its promises. And it's led by a true statesman -- one of the finest leaders of our generation.
- Phil Jones, London UK, 18/11/2009 13:43
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You have utterly failed miserably, as a PM and as a person. I trust the entire nation will use their vote and get you out of office. I just can think of anything this labour governemnt has achieved any success. Failed Failed and Failed.
The Queen's speech, go in one ear and out the other. Good bye Gordon Brown and the rest of the Labour government. I trust that we do not see the likes of you ever again.
- Max, London, 18/11/2009 13:38
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With these key pledges they are actually trying to make themselves unelectable to all but the insane and illegal immigrants
- Jimbob, Kensington, 18/11/2009 13:23
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Well it's a damning indictment of education under Labour when a Government minister thinks favouring any group, whether they be women, disabled, black, asian or otherwise is equality. As for giving pupils the right to a 'good education', how about giving schools the legal right to 'provide an education without disruption'? Then we can all go about suing each other and forget the mundane task of teaching.
- Mark, London, 18/11/2009 13:15
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As a manifesto it is underwhelming. It is, however, a confession of failure over the last 13 years as all of the sensible suggestions should have been addressed years ago.
- Rs, Winchester, England, 18/11/2009 12:48
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Did HMQ have a straight face when she read it out?
- Bj, East London, 18/11/2009 12:32
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12 years later and we're still getting the same old chestnuts: Education, education, education. Tough on crime, tough on the causes of crime. Ending child poverty - now in 2020. The lies and incompetence I've got used to. It's the lack of imagination and the belief that we'll fall for this piffle that is the most frightening.
- East, London, 18/11/2009 12:25
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And who pays for all this? Oh, that will be us taxpayers who are already in hock to the tune of £200bn for bank bailouts, £900bn for civil service pensions, £20bn for the Olympics, £20bn for Trident 2 and £10bn for ID cards.
Anyone want the shirt off our backs, too?
- Nobby Clark, Perth, the Scottish one, 18/11/2009 11:50
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Coward Brown - Nobody is listening to you anymore and especially not to your vindictive,punishing,oppressive and dictatorial laws in this Queen's Speech.
I, along with many other people, dearly wish The Queen would dissolve your wretched government and banish you to Traitor's Gate where you belong.
Give us an election now Brown - or are you too much of a coward?
- Anon Pc, London, UK, 18/11/2009 10:53
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They have had long enough to enact all these new proposals Blair promised a lot of them in the past for pensioners.Why should we believe this bunch of liars (Irag war comes to mind) now?
- Tojo, Hythe, Kent, 18/11/2009 09:49
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