agirlwithwings ….. There are no Labour Party ‘reds under the bed’, but there is a Labour Party that is constantly ‘stomping all over the bed’, the difference is how long it takes to show their true ‘colour’, whether they were Old, New, or Oldish, having officially just dropped the ‘New’ title – but whatever name or positioning they try to portray, it always surfaces in overspending on big expensive government, nationalisation, State controls -and taxes have to rise to pay for it.
The fact that a government of 13-years showed complete political cowardice in 2010 of not detailing any Spending, Cuts and the extra Taxation in their manifesto (or in the long overdue Public Spending Round), over and above the other two main parties implied figures, just meant THE COST of their big expensive State to ‘the people’ was hidden this time, whereas the electorate SAW their true colour in 1979.
Tell me, was it my “imagination” that back in 1979, 3-years after Labour asked and received an IMF debt bailout mainly due to supporting failing State industries, Labour passed to Thatcher interest rates and inflation around 20%, the lower rate of income tax was around 32%, the upper income tax level started in the mid 60%s, the tax on Unearned Income (BTL?) was in the mid 90%’s and CORPORATION TAX was 50%???????
Fast forward to 1997 and Brown/Blair’s ‘New’ Labour WHO HAD TO STATE THEY WOULD ADOPT the Conservatives spending/deficit reductions plans to allay the fears that ‘Old’ Labour would come a stomping?
Did they ever 'imagine' taking over a Base rate of 6.25% (to fall further over the years as GLOBAL Base Rates and Inflation was about to fall), CPI inflation of 1.6%, low income taxes, competitive Corporation Tax AND an economy that had grown for around 26 consecutive quarters following the early 1990’s western recession and growing faster than any other European country?????
So that was the economic backdrop Labour inherited, during the best decade of global growth since god knows when, WHY WOULD TAXES GO UP DURING THIS PERIOD, they should have been coming down with the National Debt, as our annual budget enjoyed a 'boom' surplus – even Labour couldn’t screw that up immediately, but the levels of our Productivity fell and unbalancing of our economy continued up to 2010.
Yet in 1997, WITHOUT mentioning it in their election manifesto, apart from selling around 40% of our gold at a 20-year low, Labour/Brown put up Housing Stamp Tax from a flat 1% and raided Private Pensions, raising £118 billion for the exchequer to date (ONS), but costing pensioners well over £200 billion in lost returns and virtually killing off the Private Sector workers Defined Pension Benefits.
Re “the £40 billion (red tape under Labour stifling the Private Sector) from my favourite blog” – now WHAT blog would that be, please link it, as I’m using 30-years of following global economies, I’d like to know a like-mind, to shoot the Labour breeze with.
The British Chamber of Commerce was cited in this link for the £40 billion figure, and Blair was concerned that the party of new laws and red tape was stifling the private sector, too bad Blair didn’t tell Brown before they lost the 1 million manufacturing jobs.
www.telegraph.co.uk/finance/2918368/What-Blair-really-thinks-about-the-FSA.html
“Tony Blair is gripped by a desire to slash red tape - or so he claimed in a speech last month. That address attracted notice principally for Tony Blair's surprising and controversial statement that the Financial Services Authority is "seen as hugely inhibiting of efficient business" - but his assertions roamed wider than that.”
"“No one in any business - be it vast or tiny - needs to be told that the burden of regulation has increased since Labour came to power in 1997. The British Chambers of Commerce estimates that the cost for business of coping with red tape from Whitehall and Brussels will be £39bn this year - four times as much as in 1997."*
“Of course the bureaucrats of Brussels are only half of the problem. At the end of May the prime minister delivered an embarrassing rebuke to the City watchdog, the FSA, which was set up by the new Labour Government in 1997.”
agirlwithwings …. So looking at the tax rates when Labour left power in 1979, their tax surprises when they came to power in 1997, their cynical omission to detail the tax rises they promised RATHER than cut their fat, inefficient State in 2010 - AND the c current reversion to Old Labour and State controls on energy prices and rents etc, do you have any more ‘statistics’ you want to hide behind, rather that face/admit the bleedin’ obvious?