Saturday, January 31, 2009

Nick Clegg: nationalise the weakest banks, cut out unfair tax breaks for the wealthy, invest in our future

I'm standing at the back at the joint Devon & Cornwall/Western Counties Regional Conference, watching Nick make the keynote speech.

He's in bloody good form, as far as I can judge, and his dander is well and truly up. Best of all, he's not just talking about concepts and philosophy, he's actually talking about specific measures which, if the media would pay any attention, would resonate with the public (that's a hint, by the way...).

He started with an attack on both the Labour and Conservative Parties and, let's be honest, they're both culpable. You cannot imagine that the Conservatives would have done anything different, and now they have nothing to say. Unfunded proposals and a general 'the Government are at fault' mantra actually say nothing of value.

Tax breaks for the wealthy are as contrary to the notion of progressive taxation as can be conceived. Nick highlighted the fact that wealthy individuals benefit from twice as much tax relief on their pension contributions as basic rate taxpayers do. Indeed, he could have gone on to note that most tax reliefs for investment merely enable the wealthy to make more money at lower risk to themselves. Don't get me wrong, there have to be incentives to invest, but if those incentives distort investment trends in a way which unbalances the economy, then perhaps we need a rethink.

Nick then attacked the sheer waste of the money spent on a temporary cut in the rate of VAT. Investing that money in infrastructure, in environmentally sustainable works, in insulating homes, in developing alternative energy sources, would actually achieve a return on our money. From the perspective of a Government, it would actually generate some tangible product, and one wonders how a Labour Party so keen on spin and image failed to reach the same conclusion.

The question and answer session was an interesting reflection of how political activists are thinking, with the emphasis on the economy. Questions about tax rates, encouraging saving and the Euro were fielded with some aplomb. I have sometimes felt that Nick hasn't always done himself justice, but this session, as well as his speech at the launch of 'Unlocking Democracy', have indicated that he has grown into the role of Leader.

Nick also made it clear that Liberal Democrats will be pressing for stronger sanctions against errant Peers, acknowledging that there will be much greater scrutiny of all members of the House of Lords, at least in the short term, until action is taken to tighten the rules of expenses

All in all, a really good session, and delegates left the room with much to talk about.

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