Speaking at an event in London on Friday, Chancellor Jeremy Hunt made promises to cut taxes. Again. Though he can’t say by how much, or when. Or even confirm what will be in his party’s manifesto for the next parliament. All he can do is “make a very clear argument that we will bring down taxes, because that is already what we have been doing”. Really? Can’t say we’ve noticed.
Hunt’s empty rhetoric and pointless promises
Like many of his colleagues, promises made by Hunt will only come into effect should the Conservatives win the election. Considering both the country and the government know they are going to lose that battle, the promises are both cynical and pointless.
Not only that but promises being made for the current parliamentary term come with conditions attached. While Hunt has pledged to cut national insurance again this autumn, that’s only “if we can afford it”. By “we”, I don’t believe he’s referring to himself and his fellow millionaires. Hunt also pledged that there would be no increased borrowing or spending cuts and any tax cuts pre-election would “come through growth in the economy”. Given the government’s economic record over the last 14 years, the expectations aren’t high.
The Chancellor defended the government’s handling of the economy, claiming it was a “myth” that the UK was performing badly in comparison to similar countries. While accepting that the financial crisis, the pandemic and the war in Ukraine had been detrimental factors affecting the economy, Brexit, unsurprisingly, failed to get a mention.
Record levels of taxation under the Conservatives
The UK tax burden is currently at historically high levels according to the Office of Budget Responsibility. The Organisation for Economic Cooperation and Development’s (OECD) recent annual report showed a tax-to-GDP ratio of 35.3% for the 2022/2023 financial year – the highest level since records began in 2000. The figure is predicted to continue to rise to 37.7% by 2029, despite Hunt’s recent National Insurance cut.
When the OECD figures were produced in December, Labour argued that it was as a direct consequence of years of “Conservative economic failure”. Hardly surprising then that we rarely hear the claim anymore that the Conservatives are the party of low taxes.
So, when the numbers don’t work in your favour, and you’ve run out of ideas and steam, there’s always that favoured old tactic – point the finger elsewhere, preferably at the opposition.
Look over there!
Forget the financial crisis, Ukraine, the pandemic, or anything else that may have caused the economic mess the country is in. As far as Hunt and his colleagues are concerned, it’s not their fault. And it’s going to get worse when they are not in charge. Not only will “taxes go up” under a Labour government, “as sure as night follows day”, but Labour’s £38bn spending pledge means “tax rises for everyone”.
Labour have responded by stating that all their policies are “fully costed and fully funded”, and that, unlike the Conservatives, Labour would never play “fast and loose with the public finances”.
Labour’s £38bn plan, according to Hunt, would cost every family in the country almost £2,100 in additional taxes. Except, once again, government claims have been “community noted” on social media as inaccurate or misleading. The costings quoted by Hunt were “widely acknowledged to be political” based on “assumptions from special advisers”, rather than from independent civil servants.
With trust in the government at rock bottom levels, all but the most loyal of Conservative supporters are likely to take Hunt’s warnings with a large pinch of salt. If this is a campaign aimed at scaring the public with negative numbers, it’s reminiscent of the doomed Project Fear campaign of the Brexit era – and likely to prove just as ineffective.
Of course, the British public are concerned about the high level of taxes and the impact on their cost of living. But they are also concerned about how those taxes are distributed between the haves and the have nots, and how those taxes are spent. After 14 years of Conservative rule, austerity, spending cuts and waste on an industrial scale, the country is desperate for change.
The next government will have a monumental task on its hands dealing with huge economic pressures and the damaging legacy of the Conservatives. Labour may not have all the answers, but they have one huge advantage in their favour. They are not the Conservatives. That fact alone should give us all cause to celebrate, and to hope for a brighter, fairer and more prosperous future.
