“Tough decisions must be made”
is one of those phrases trotted out regularly by politicians as some sort of
cover for either backtracking on promises made or following what they
individually believe to be the best policy, whilst knowing either that the policy
will be unpopular or else that many in their party strongly disagree, in the
generally correct belief that, most of the time, their party’s members’ desire
for power will outweigh any considerations of mere principle. It’s not unique
to any of the main UK parties – and not even specifically Welsh or Scottish parties are
entirely immune to it. In recent weeks, it’s been mostly the Labour Party who
are hiding behind the excuse at every opportunity, seeking to blame the current
government for the completely fictional ‘lack of money’ as their excuse to
reverse just about every policy position that they have taken to date.
In the case of Labour’s latest
U-turn – on child benefit for more than two children – it’s hard not to see
it as performative toughness for its own sake. I don’t know whether Starmer
genuinely believes that it’s ‘right’ to deny the benefit to third and
subsequent children (although I also don’t really know whether he genuinely
believes anything any more), but I tend to suspect not. That hasn’t stopped him
scrapping the pledge. He could have said that he remained committed to the
pledge but might not be able to implement it immediately, but he chose not to.
It’s as though he’s decided to make an arbitrary stand on an entirely arbitrary
policy just to prove that he can be tough. Prove to whom? Presumably, the Tory
press pack obsessed with the idea that Labour might dare to increase either
spending or taxes and needing to deter them from doing so.
Starmer argues that this is
all about discipline and adhering to “iron-clad fiscal rules” as though
those rules are written on tablets of stone and imbued with some magic properties.
The truth, however, is that the UK managed to get along without any fiscal
rules until Gordon Brown started the trend in 1997. All governments since have
insisted on having them, and no
government has ever completely managed to keep to the rules which it itself
set for more than part of its term in office. In practice, they’ve ignored the
failure to abide by the rules, changed the way compliance was assessed, or else
changed the rules in an attempt to make the rules reflect what they’re actually
doing. And then failed again. A rule which can be changed every time it’s broken
is not a rule at all – it’s just a guideline. Whether, and to what extent, such
guidelines are useful will be a matter of opinion; but they can never be ‘iron-clad’,
because the future is essentially unknowable.
On the specific question of
child benefit, there’s a reasonable debate to be had about whether the benefit
should exist at all. What used to be called ‘family allowance’ was a useful
instrument of policy when it was devised, but times have changed. For non
working households, a decent rate of Universal Credit ought to supplant the
need for a separate payment, whilst for working households, any benefits being
paid are effectively subsidies to underpaying employers, and that problem of
low pay ought to be solved at source. The best justification for continuing the
payments – sadly, because this really shouldn’t be necessary – is that it has
traditionally put money directly into the hands of stay-at-home mothers. It’s a
good argument, although it’s a social argument rather than an economic one. However,
if the benefit is to exist, the cutoff after the second child is, and always
has been, an entirely arbitrary piece of nastiness by people who see the cost
of everything and the value of nothing. Starmer is presenting his decision in purely
economic terms but the effect (whether intentional or not) is that, for as
long as any Starmer government leaves the rule untouched, it would effectively
be supporting and justifying the continuation of that nastiness. It’s a
consequence out of which he should not be allowed to wriggle by using weasel
words.
No comments:
Post a Comment