I voted Labour and am generally a soft lefty and whilst my instinct is that they inherited a mess and are trying to clear it up, their actions suggest otherwise and I’m so disappointed that yet again the government is playing party politics with our economy.
Just like Brexit was Cameron’s mad attempt to calm the anti-Europe faction in the tories, Reeves is doing exactly the same:
Raising the minimum wage will not help the cost of living one jot as costs of employment go straight to the consumer and the poor are the people this affects the most. They will have no more money in their pocket. Rents at the lower end will increase as everyone suddenly has a bit more cash and the cost of living will continue to rise. She knows this but it placates the left.
The tax on £2 million raises a paltry amount budget-wise and creates a load more unnecessary work and admin (in itself a cost) but is a great soundbite for her backbenchers. It’s economic political tinkering when we need transformation.
Removing the tax breaks on salary sacrifice removes the incentive to save more for the future when a lot of people, after years of prioritising mortgages and childcare, are looking at inadequate pensions and now need to find more cash (from where?) to make up the difference.
Labour came into power saying they knew that they needed to get a grip on the welfare bill but this wasn’t popular with their backbenchers and so this has gone nowhere. Did they need to reduce the welfare bill or did they not? I don’t know but it was a key policy at one point.
I also hate the toxic rhetoric which is as bad any other government were using and using ‘working people’ to mean practically only those who are minimum wage and ‘broadest shoulders’ to justify squeezing people who’s shoulders are almost broken, is incredibly divisive and political in its purpose (ie to calm rebellious back benchers). The country needs uplifting - we do not to demonise those, also ‘working people’ who are indeed shouldering an ever increasing burden.
I am lucky, the mortgage is almost paid off, I don’t have a £2 million house or a child in private school and salary sacrifice changes mean I will spend less on other things. However I do have young adult children saddled with university debts worse than their American cousins and a very challenging job situation on graduation. It is the younger generations I am seriously concerned about.
Yet Labour feel it’s fine to use the country’s economy for politics.