GOOD AFTERNOON & welcome to my weekly update no.318
Just over a week to go before summer recess and Westminster busy ‘bringing out the dead’ - all the announcements government departments want sorted before everyone disappears. Locally the balmy weather has meant some very parched lawns and - as ever - heightened concerns about unreliable water supply and potential hosepipe bans.
WESTMINSTER WHISPERS
ENTENTE AMICALE Clever media management kept us guessing till the end on the one in one out migrant deal but I am personally sceptical it will make much difference if numbers remain as low as 50 a week. The French could do so much more if they weren’t obsessed with punishing us for Brexit. But so could we: a Rwanda scheme, detaining migrants in campsites, digital ID for UK citizens to stop illegal working and rewriting (or as a last resort leaving) the international treaties are all elements to the solution. Of course I believe a Conservative government would have got there but now Labour are in office I just wish they would get a grip because in truth their failure to do so is massively damaging trust in democratic politics.
WEALTH TAX WOES Labour’s U-turns have blown a huge hole in their budget and rumours are circulating they may go for a ‘wealth tax.’ Please don’t. France abandoned theirs in 2017 because it was too difficult to collect and did too much damage. Sweden, Germany, Austria and the Netherlands have all tried and abandoned it. Superficially polling suggests that the public would support a tax on wealth above £10m (everyone likes taxes on other people) but the evidence is they don't work. Welfare reform and public sector productivity are the way to avoid having to raise taxes - let’s hope the government doesn’t give up on them. I am doing the Today programme debate with Nick Robinson on Tuesday next week (8 pm 22 July Radio 4) if you want to hear all the alternatives properly fleshed out.
AND ONE POSSIBLE SOLUTION to avoid a wealth tax is if we became the world’s next Silicon Valley, something I have long championed. Last week on the Daily T, I made my case in more detail. Unbeknown to many, our tech sector is the third largest in the world and we attract more VC funding than anywhere else in Europe. We also have one of the best education systems in the world. The potential is there but only if we have the right policies in place. Most importantly, we need to harness the power of AI and not overregulate it, like the EU is trying to do. More about it in my book Can We Be Great Again?
|