A Classless stunt

A grim day for David Laws but also the relationship between the media and government

When the PM decided to make his big, open and comprehensive offer to the Liberal Democrats, it was done because he recognised the necessity in forming a strong government in the wake of an ultimately indecisive election. He knew that the British public didn’t want to be at the polls again in October, he knew that the country couldn’t afford – and probably wouldn’t accept – Labour being kept in power and that in order to form the only coalition government that could claim a mandate he would have to talk seriously, sensibly and flexibly to a party between whose activists there has at times existed a genuine hatred.

No matter – that quite rightly has been placed aside in order to get the best people into government. And if you look at the excellent line-up of the cabinet – the PM and NC working together, William Hague, Iain Duncan Smith, Ken Clarke, Vince Cable and others, you understand that the sacrifices both parties have made in their hearts and minds have been worth it.

David Laws has, for me, been the stand-out performer of the coalition. His handling of the announcement of the £6.2bn cuts last week was first-rate both in the house and in front of the media. His boss George Osborne was there with him but said very little and one hopes was watching carefully to see how it should be done. The point is it doesn’t matter whether he’s Lib Dem or Tory; if he’s got a mandate from the electorate and can do the job, the country needs him in place.

Enter the Daily Telegraph, whose view of the country is somewhat different. For them, the agenda is foxhunting, family values, favourable taxes and flag-waving. They don’t care much for Lib Dems – especially ones with secret gay lovers – and they’re not bothered about keeping the coalition together if it forces an election that could redress the result of May 6. Don’t get me wrong – I’m really disappointed that we didn’t secure an outright majority; but it was the failure to gain winnable Labour seats – not Lib Dem ones – that cost us victory.

The way in which the Telegraph has dealt with the David Laws story is bullying, immoral and reckless. What David Laws did was unquestionably wrong, although one can understand (just) why he did it. The money that he was taking from the taxpayer to pay his lover as landlord fell foul of regulations in 2006 that money could no longer be paid to “spouses” as “rent” (the fact it ever could be is bewildering). Had David Laws then not continued the payment, the question of why would have been asked – forcing him to reveal details of his private life.

Trouble is that £40,000 is a lot of money and he doesn’t need it any more than the PM. It creates the impression that a man asking the nation to make terrifying cuts across public and private fields is being less than austere with his own arrangements. For that reason, once the story became public, he has done the right thing in resigning – a very sad consequence of unjust parliamentary procedures in the first instance and social judgement in the second.

But for the Telegraph, there is no such mitigation. This angry, reactionary and backwards publication is an embarrassment to Conservatism and the nation it so very proudly wants to tell everyone it embodies. It represents exactly the kind of sneering, snobbish and bigoted values that the public reacted against in 1997 and brought Tony Blair into our lives. Why it felt it could not reveal the facts about David Laws during the original story is anyone’s guess and there is a rancid stench of spite and homophobia running through the decision to break it now – just as David Laws reaches the peak of his political career and achieves the platform to display his talents.

Who knows what’s behind it - there are of course powerful factions with an interest in removing a star in the making who wears the “wrong” colours (or the “right” colours in the “wrong” way) in both their political and private life. What amazes and disgusts me is that they, whoever they are, would choose to run so contrary to the national interest by fashioning the demise of potentially a key figure in the recovery and rebuilding of our economy.

The lowest nadir for UK journalism since the Sun decided it was in the public interest to publish topless pictures of the Countess of Wessex a few days before her wedding; and to trump the Sun on classlessness takes some doing.

Reality a-tax

The Daily Mail is leading the charge for the right wing of the Conservative Party and David Davis suggesting that people with second homes, shares, jewellery and other assets should not face any increase in Capital Gains Tax from 18% to 40% in order to help people on lower incomes (below £10,000) stay out of income tax altogether. There is plenty of talk of “betrayal” and “revolt” among the 1922 hopefuls and a general feeling that a Conservative government doesn’t do this sort of thing.

Firstly, let’s remember that the reason we are in government at all is because we’ve been able to come to an agreement with the Lib Dems. Sure, a Conservative government with a outright majority would probably have steered clear of CGT altogether but we were 18 seats short of where we wanted to be and the result is compromise rather than full implementation of Conservative principles. It’s a little uncomfortable in places but the PM has said that stable government was necessary in this time of national strife and compromise is part of that.

Furthermore, David Davis says that he wants to protect the ”hard-working, responsible, self-reliant middle and working classes”. I’m not sure how many “ordinary” people he feels deal in more than £10,000 of capital gains each year but I suspect the answer is “not many”. You also won’t find in any of the major papers the fact that the current 18% rate was only set by Labour in 1998 and previously had been much higher under the Conservative government during the 80s and 90s.

The fact is that people who have these kinds of assets to make money on need to pay their fair share in helping reduce the deficit – that may be fair to those whose trading helped bring the problems about and unfair on prudent savers. That’s unfortunate, it’s not entirely comfortable and it’s certainly not Conservative; but it’s necessary and hopefully temporary.

What is important is that those who are being helped by this measure by being freed of tax burdens and encouraged to work at the lower end of the pay scale are given a very firm steer in that direction. There is no justice in asking some people to pay for a £10,000 income tax threshold if those benefitting from it are then not working or contributing to society. Just as we need the wealthiest to help the country out of trouble, so we need the bottom-up economy to get working too.

Having taken a centrist view of the CGT issue then, I’m happy to take a more centre-right view on Iain Duncan Smith’s promise to mend our benefits system, which is a national joke. Of course I believe that the poorest in society should have the help they need. But I also firmly believe that thousands and thousands of people routinely abuse our over-complex and under-thought benefits system for their own gain – at the expense of the entire nation and other taxpayers.

So I hope that left-leaning thinkers will see a connection here – between controlling the right-leaning tax tendencies of the Conservative Party but also changing the liberal attitudes to the Welfare State that have cost Britain money and not a little self-respect during the past 20 years.