douglas mclellan http://douglasmclellan.posterous.com A Midlothian Liberal posterous.com Tue, 08 Mar 2011 05:01:00 -0800 Just admit you dont care http://douglasmclellan.posterous.com/just-admit-you-dont-care http://douglasmclellan.posterous.com/just-admit-you-dont-care

Well that is a pointed statement. It comes from here:

 

Yet again, twodoctors (aka James Mackenzie, Scottish Green Party Spin Doctor) and I were having a little conversation about how the Coalition government are running the country. It actually started with a retweet by James that stated that the super-rich are robbing the poor. My response was that income tax on the poorest was being removed, which is hardly the actions of a group determined to rob the poor. James then highlighted the fact that the very poorest don’t pay income tax and that VAT is going up to which I noted that VAT is not charged on many items the poorest spend their money on to which James responded with the above tweet. So do I care? I really hope that I do. I am not a bad person, I dont like to see people suffer and I try to help people in my community in certain ways. I left the banking sector for the voluntary sector because, ultimately, I want the world to have been, in a small way, a better place for me having been here.

 

The VAT increase

I confess to believing that the country does need to get its finances in order. I don’t accept that it is correct to increase borrowing to increase spending whilst a reasonable chunk of our spending is actually repaying debt. If the country had been run on Keynesian economics whilst there was economic growth then I could understand the borrow to spend line. But it didn’t happen. And if we borrow more now, there is no indication that we would be able to repay our debts during the next economic upturn before we need to borrow again during a downturn. So I care that our country needs to be on a more sound economic footing and the VAT increase is one tool in addressing that. If we don’t get the countries finances correct then there will be far less money to pay welfare payments to the people who need them. VAT though is only charged on certain things so lets get right to the point James was making. Poor people, defined I assume by James as the unemployed (without hope of a job it is alleged), the unemployed disabled, low-income pensioners and others in similar circumstances who rely on the state to provide them with welfare payments. I suppose the issue is what are the welfare payments for? I confess to believing that they are to provide a basic level of living standard. I would define this as a somewhere to live, food to eat, clothes to wear and other basic things that support hygiene, household cleanliness etc. Now, the welfare payments that cover housing don’t incur VAT so that will not increase. Basic food stuffs, more than enough to provide a wide and varied healthy diet, do not incur VAT and nor does child clothing, books or newspapers. Supermarkets provide access to hygiene and cleaning products at such a low price that the VAT increase would be less than 10p per week. I know all this because when I was last unemployed my lifestyle and the products that I used changed dramatically. The cost of my weekly shop plunged dramatically but I found that I still had all the essentials, just the branding had changed. Yes, I had to turn off my Sky TV, my mobile, my internet access (that was like losing a limb), SORN my car (with a view to selling it if things got too bad) and not eat takeaways. But why should other people pay for any of that anyway? VAT (or indeed any tax) is going to be a greater proportion expenditure of any person without their own income. That cannot be avoided. And in the case of the cost of alcohol, positively endorsed by the Scottish Green Party. But the increase in VAT will be minimal (pennies) to those without an income anyway. Unless they are spending large amounts of their benefit payments on items that incur a VAT charge. Now, there is inflation and that is a problem. Some groups, like pensioners, experience greater levels of inflation than others. And benefit payments are not keeping pace with the level of inflation being experienced. No government has ever managed to keep benefit payments ahead of inflation to ensure than the effects of inflation are not felt by those on benefits. This is hardly the unique action of a rich group of politicians. Again, it is not theft from the poor to struggle, as all governments have struggled, to keep benefits at a level that is both economically viable yet actually practical.

 

Super-rich are robbing the poor

Given that I am not in the super-rich category why do I broadly agree with the economic course set by this government? Aside from my comments above maybe I am deluded (possible I suppose), perhaps uninformed (doubtful) or possibly I really dont care as is the suggestion. But perhaps I am in the super-rich category - after all I am earning more than 80% of the population. This can be seen here at the Institute for Fiscal Studies: Where do I fit in?. Yes, my £29k charity salary means I am earning a lot more than other people. In fact, this government has actually improved the income of many of the people who earn less than I do. By raising the allowances prior paying tax, those earning far less than my super-rich, top 20% earnings benefit. Again, hardly robbing people is it. In fact, it is actually in direct opposition to the Scottish Green Party’s desire to tax the poorest earners more by raising revenue through Scotland’s basic tax powers. Any increase in the basic rate would hit the poorest, hardest. Who would be robbing who then? I actually believe that the only way for a government to earn enough to pay for what it wants to spend money on is through a competitive, clear & collectible tax regime that encourages economic growth. In a global market place where many businesses can be moved abroad out tax regime needs to be sufficiently competitive that the UKs other attractive options for business are not outweighed by heavy taxation. That said, I would like to see all taxes that are due to the exchequer paid to the exchequer and would reduce the number of tax-avoidance schemes and increase the number of tax inspectors to enforce any changes. But we also need clarity and understanding in our tax systems. Punitive taxes on people or companies, just because they happen to be rich or sucessful, will not be helpful. That is the politics of envy.

 

Who are the Super-rich anyway?

The link to the IFS calculator is also an interesting examination of how many actual rich people there are in the country. There is a great cry from the left to tax the rich more. Yet there are not that many of them. Even the IFS state that there are only 2.6m people who earn more that £39k after tax. How much more should a person be taxed. Those earning over £37k just know have to pay 40% tax on anything above £37k and those earning above £150k pay 50% tax on earnings above that figure. But is it fair to tax them more? How much tax is fair? I have no doubt that many on the left feel that someone earning £37k, never mind £150k, has somehow cheated their way into a high income and should pay more tax as a result. Yet it is clear that even when someone comes from a background that offers more opportunities (like parents marrying before they have children) and support (one that values education as opposed to holding teachers in contempt) than is available from a disruptive family on a sink estate, there is still the need to show ability, earn respect, deliver real outcomes and demonstrate a committed work ethic. If someone works hard and does well, surely it cannot be fair that a government wants to take more than 50% of their earnings above a certain level?

 

Services to the Vulnerable

Scotland will have a budget of £28bn in 2011/12. That is not an inconsiderable amount of money. But apparently it is not enough and the fact that I think it is probably also means I dont care that expenditure by councils on front line services are being cut. Yet look at some of the things that we are spending money on. Over £20m spent supporting Gaelic. A language that has never been the language of Scotland. I can trace my ancestors back to around the early 1800s and none of them lived or worked in an areas of Scotland that ever spoke Gaelic. Less than 2% of the country speaks the language. Yet we have official government agencies that support it.  How many care packages can be implemented for £20m? As a nation we are spending £11.2bn on Health & Wellbeing. Over a third of our budget. £8.7bn of that goes directly to local Health Boards. This has increased phenomenally since the first Scottish budget in 1999 when £5.1bn was allocated. Is our health twice as good as it was - are our services twice as good as they were? No on both accounts. Some political parties are now in a death cycle of who can commit to the NHS more regardless of need or outcomes. Reading the Scottish Government Budget for 2011-12 it is not surpassing that the NHS is perhaps not achieving as much as it could with the money that it has. There are several programmes/strategies/plans/routes and even standards that are tied to the funding. The NHS should be concentrating on address some of the more basic health needs in Scotland rather than fashionable issues. Like free prescriptions. I can afford to pay for my prescriptions so when i need a course of antibiotics or other types of medicine I can afford to pay for them. Those on benefits don’t pay for them and, whilst those with longer term illnesses needing support, there was no need to abolish prescription charges. This will cost the NHS in Scotland £70m. Now lets half that for charges for people with long term conditions and on low incomes (no basis for that 50% but I think it works as a crude example) - that is still £35m that could be spent elsewhere in the healthcare budget - again supporting the most vulnerable via partnerships with Social Work. These are just a few examples of where the national Government is spending money in areas that don’t meet the needs of the Scottish people. I would rather that Gaelic was a hobby for interested people instead of a highly funded government pet project. Local Government in Scotland gets £11.5bn. That, again, is a remarkable rise since the start of devolution where the budget has risen from under £6bn. Have our local services delivered extra or better services for the extra billions? I havent noticed. I noticed all the permanent jobs that were recruited under various, time limited and separate funding streams that padded out the already large public sector. I noticed the above inflation pay rises and the increases in the pensions. Hell, more than once I tried to get a council job for those precise reasons. Local government waste millions on publications advertising their own work, spin doctors, consultants and internal reorganisations that last just a few years. I am sorry, but if £11.5bn is actually not enough to meet the requirements of the various Social Work, Housing and Education Acts that dictate most of the council expenditure then Scotland is truly in a devastating state and which will require even more £bns to fix. Yes, there are problems but not on that scale. Both the NHS in Scotland and Local Government in Scotland spend tremendous sums of money on things that are not frontline services. The ire of the left when it comes to a lack of services should not be directed at people in employment or companies employing people and paying our pensions but instead at the organisations delivering the services - why not investigate them? The public sector delivering services directly to the people of Scotland gets £4,000 per head per year. How is this not enough?

 

Do I care? Yes, but in a different way to James I suppose. I care that this country needs to be able to maintain its welfare payments and that the only way to do this is through proper economic management that reduces the debt of the country to manageable levels. I care that I am in the top 20% of earners in this country after a period of unemployment. I care that taxation of low earners makes it difficult to return to work so I am glad that we are reducing the taxes on the poorest people in employment. I care that with careful management welfare payments can get an average person through a week (although there will always be examples of how this is too hard for others). I care that the best way to deal with people in poverty is to create an economy that is focussed on finding them jobs. I volunteer in my community to help others less fortunate than myself. I feel strongly that local services should be used to help the most vulnerable in society (but I don’t care if those services are delivered by the public sector). I care that there is waste in the public sector and that, structurally, the public sector cannot help but bloat itself on any public funds (you should see some NHS/Council ideas for this Change Fund - changes they are not). I do care that some people think that endless taxes and endless spending with no stated outcomes, with no desires to make long term changes think that this is the best way to run a country. I just don’t agree with them.

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http://files.posterous.com/user_profile_pics/1132655/Photo_on_2011-04-06_at_21.51.jpg http://posterous.com/users/heOedXVCNjBkC Douglas McLellan douglasmclellan Douglas McLellan
Sun, 05 Dec 2010 13:35:36 -0800 Scottish Greens not practicing what they preach? http://douglasmclellan.posterous.com/scottish-greens-not-practicing-what-they-prea http://douglasmclellan.posterous.com/scottish-greens-not-practicing-what-they-prea Saw this yesterday from Scottish Green MSP Patrick Harvie: [blackbirdpie url=""]
Off to a probably inquorate meeting of party council. Glasgow and Edinburgh folk will make it, but few others.
Now I was actually confused by this because I thought that the Scottish Greens were against people travelling to meetings. Certainly thats the impression you get when they oppose things like road upgrades/extensions or improved airport capacity. I would have thought that the Scottish Greens would have used telephone conferencing or arranged teleconferencing for people to access their meetings. Allegedly its not that hard or expensive. After all its what they wanted businesses to do. So what are they saying one thing and doing another?

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http://files.posterous.com/user_profile_pics/1132655/Photo_on_2011-04-06_at_21.51.jpg http://posterous.com/users/heOedXVCNjBkC Douglas McLellan douglasmclellan Douglas McLellan