That and tax were the two topics discussed
A recurring subject of our Cafés is the dissatisfaction both with our MPs and the political process generally. This is clearly becoming a matter of national concern with low voter turnout at elections, falling membership for the main parties and a rise of what were once called ‘fringe’ parties.
The escape of various prisoners that week from Wandsworth Gaol was the focus of our first topic: not the escapes themselves but the unedifying debate which took place in parliament particularly at Prime Minister’s Questions. Two prisoners, Brahim Kaddour-Cherif and William Smith were released mistakenly and there ensued a major political row with the Conservatives blaming Labour and Labour blaming the Conservatives.
The question which won the vote was How can we encourage more cooperative working [between the parties] in Parliament? The proposer was motivated to pose the question by the debates about relatively petty issues and insufficiently on the big ones. The slanging match which took place between the parties overlooked the years of underfunding of prisons which had taken place under both parties. Prisons were unpleasant places said someone who visits one regularly and they too little time was spent on things like behavioural change. No party was willing to tackle the system or the huge investment the estate needed.
A lot of theatrics we saw was around PMQ and this often got televised. Many politicians were playing to the popular press. Would it not be an idea to stop televising parliament it was suggested? We did not pursue that thought and it would be a pity to throw the baby out with the bathwater.
Another thought was Eton. The school has a debating chamber modelled on the House of Commons and boys practice the skills (if skills they be) of debating. Since Eton has provided a preponderance of ex-pupils to become MPs and ministers including many prime ministers, could this be a contributory factor to the public school raucous style of debating?
The need for a constitution was suggested. However, the US has a constitution and it hasn’t ruled out bad politics. Could not the Speaker control things better?
It was noted however that the Select Committee system works well where party members do work together on them. This system has been a success especially after control of the selection of members was wrested from the whips. But how often do people follow select committee debates? People watch the spectacle of PMQs are less inclined to follow the dry stuff of a select committee even though it was often more consequential. As we have noted in these debates before, do we not get the politics we deserve?
Back to PMQs. Was it not absurd that the prime minister was summoned each week to answer what can be trivial or detailed questions? The session was dominated by point-scoring and appealing to the gallery not discussing matters of strategic importance. Imagine for example if the boss of M&S was asked each week why one of their stores was out of a particular size of trousers say. Would you run a major corporation that way? Probably not.
One of the shifts which has taken place in recent times is the way all parties now have focus groups and fashion their policies around what these and other sources of public opinion thinking. They were no longer leading but following. But what many are crying out for is leadership. The election this week of the charismatic Mayor of New York was mentioned. What we seem to be getting is followership.
The quality of our MPs was mentioned. Do we need to know more about candidates? Should there not be some kind of minimum standard? What that would be and how it would be enforced was not discussed.
An interesting point was that we elect our MPs but have no say over who gets into the Cabinet or goes onto the government payroll. Since it is the latter individuals who exercise the power it does seem anomalous that we spend all the time selecting someone to represent the constituency who then may well go onto become a minister of some kind. Rory Stewart discusses this in his book Politics on the Edge (Jonathan Cape, 2023) where no interest is taken by selection committees in someone’s policy making experience or management skills in the selection process. It suggests large numbers of people being elected with no regard at all for the skills they’ll need to run the country. And we wonder why we’re in a mess.
Back to the public school system and whereas it was true that such schools provided a disproportionate number of MPs and hence ministers in the past, a Sutton Trust study in 2024 shows that just one member of the current cabinet had a private education. This contrasts with the last Conservative government where just 19% of ministers did not have a private education.
Another feature of Stewart’s book was the practice of ignoring expert advice. There was a suggestion that there should be more in the way of expert input into decision making. One said their experience of meeting civil servants to convey expertise or knowledge was met by the response ‘this is what the minister wants’ with little or no interest in whether it was practical or workable. Another said there was no shortage of reports, McPherson and Louise Casey into the Met for example. Most ended up ignored. The problem was a ‘we know best’ attitude not a lack of informed input.
Was our government a product of the class system? Perhaps we should debate this as a topic all of itself in the future. As noted, the role of public schools has lessened in recent years.
We digressed somewhat to talk about the removal of power and money from local authorities.
As a kind of summing up it was thought that manifestos should be more visionary and not the product of pandering to the lowest common denominator. The lack of interest in the political process was also noted and we will not get improvement or change unless the public presses for it.
On to our second topic which was Should the wealthy pay more tax? It is only about 2 weeks until the Budget around which there is already considerable debate. The Chancellor gave a speech a week or so ago which was widely seen as a hint that there will be an increase in income tax. The immediate answer the proposer noted was to say ‘yes’ but in fact the system already enabled sufficient tax to be collected the problem was all the loopholes. [Official statistics show it stands at 5.3% of theoretical liabilities i.e. £46.8bn (2023- 24 tax year). Experts say this figure is an order of magnitude too low].
The major problem with the system was it was concentrated on earnings not on wealth. Considerable wealth was in the possession of those who paid little in the way of tax on that wealth. Land for example was not taxed (but rents would be). However, it was noted those who owned property did pay tax on any rents. Major estates could gain exemption from Inheritance tax by opening their homes to the public once a year or more. It was stated that art did not attract tax [This is incorrect. Works of art are subject to capital gains tax when sold subject to current rules and exemptions. So if you are thinking of selling your Rembrandt, be careful].
One of the things not mentioned in the debate about tax is the moral question. It is frequently said that the rich would leave if taxes were too high. Taxes paid for the things we need in our society. It was pointed out (from the perspective of a wealthy person) that they might say they do not need many of the services. They pay for their own medical treatment, they educated their children privately, they live in gated communities and do not need police protection and rarely use roads on the way to the airport to board a private jet or helicopter. Why should they pay tax certainly a higher rate? Why should they pay yet more to keep individuals who were too lazy to work? They might even use the word ‘feckless’.
However, they lived in a society which is getting ever more unequal. Placing the burden of higher taxes on the poorest in society risks bringing the whole system down. A recent BBC programme on inheritance had noted that inequality was embedded in the system. As some people got wealthier, they were able to pass on this wealth and its attendant advantages to their children thus further increasing inequality. Home ownership for many was but a dream but those who had access to the ‘bank of mum and dad’ ‘could achieve this. We should think more about what to do with our wealth it was suggested.
There was some discussion on loopholes which is where we came in. The role of the so-called ‘treasure islands’ as discussed in Nicholas Shaxson’s book Treasure Islands: Tax havens and the Men Who Stole the World (Bodley Head, 2011) is key to the system of avoidance. He estimated around £12 trillion was stored in them (2011 figures). These havens were a relic of Empire.
Part of the discussion about tax was based on the notion we were better off with lower taxes which is why politicians constantly promised that they, and their party, were dedicated to lowering them. Would any politician who said we needed to pay more tax if we want the services we expect ever get elected. Almost certainly not. As we have noted before, lower taxes will enable you to buy some more consumer goods or services but it will not buy you a road system, a health service, schools, defence and so on: all the things which gives us our society.
Which led to the notion that we should be proud of paying tax and such individuals should be admired. Paying tax should be seen as a duty.
It was noted that wealth also gave power. So we would not see changes in the tax havens for example because many of those who use them possess the power to stop change. On the subject of loopholes, Eton cropped up again and that it, along with other public schools, did not pay VAT or business rates until this year. They were regarded as charities going back to their foundations but were far from charities today.
I suppose there is a theme linking both debates and that is our role as citizens. It is surely up to us to demand better service from our leaders, to take a closer look at those standing for election and to enquire about their ability to lead, manage or develop workable policies, to take a closer look at those policies and promises made and to be realistic about things like tax. We cannot have something for nothing. The focus should be on making sure that the tax system works as it should but how many people know of the tax gap or how much it is? Two interesting debates which raised several interesting questions.
Peter Curbishley
Next meeting on December 13th
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