Tuesday 7 August 2007

New Conservative 'tax' policy


Well this is a small one, but at least something to take a look at in a post. The good news is that the party sees the benefit of tax cuts; the down side is not for the taxpayers but lenders (i.e. banks) for the 'Social Sector.' The announcements were made by Greg Clark, pictured left.

Still there is a lot of merit in the longer report that has been produced. Not only that but it is quite well presented and argued. The tone is not overly combative against the Government, although critical in parts.

The nub of the issue is that the Conservatives are suggesting that the way to help re-build community (yes the C word, one for Croydonian's banning list) cohesion, is through encouraging 'businesses' that invest in the community through projects. It argues that the current government has failed to do this by imposing too much red tape and stifling innovation.

To this point, so far so good. The more challenging part is the solution. A community trust bank to oversee the approvals of applications and loans too the various Local Authorities. This appears though to add more red tape. I could not see where they proposed reducing the current plethora of Government initiatives. Thatcher's enterprise zones were about true private sector investment; real jobs, real businesses. The Social sector, although clearly with many benefits, is more of a support service for deprived areas rather than true regeneration. It strikes me as disease management rather than cure, but I am no expert

So will it work, I am not sure about the conclusion to the report. The report identifies the need to help broken communities and the failure of the Government's many well intentioned policies to make much difference; but there is no wonder solution and no radical ideas like really renewing the Thatcher Enterprise zones that were successful.

9 comments:

Anonymous said...

Any micros management by Government, and this is micro management, is bound to fail; this assumes that these communities need some form of cohesion, or more importantly, they are capable of cohesion, and that is just so much pie in the sky, and as is becoming ever clearer with Cameron and the red rosetted Tories, this is Bliar style Eye Catching Initiatives

Will banks want local authorities encroaching on their turf?

Thatcher allowed true entrepreneur ism to flourish because she didn't try and interfere, not with business, but with human nature and that is what the left hated, and still hate, that the individual was allowed to work for the individuals benefit.

Forget communities, let individuals run things.

Anonymous said...

Social enterprises may well be appropriate models for businesses that are not maximising returns but satisfying returns...

CityUnslicker said...

Shotgun, quite so. The benign state is just not so. Reagan is best here..."I am from the government and here to help you!"

CityUnslicker said...

Quite Mutley, more wasting of resources for less practical benefit!

The Sage of Muswell Hill said...

This paper is underpinned by the belief that if you put "social" in front of anything everybody's happy. The reality is that put "social" in front of anything and you get exactly the opposite eg "social" enterprise is not enterprise, it's a vehicle for spending someone else's money: "social" justice is not justice, it's an engine and an excuse for expropriation: "social" democrats are not democrats (unless you believe that the major parties in the UK, which are all social democrat, are offering the electorate a real choice of policies).

Mark Wadsworth said...

If your summary is correct (and I do not doubt that it is) then I second what Shotgun says. This is a load of shite. What's all this with "encouraging 'businesses' that invest in the community through projects"?

Businesses, and I mean proper, private profit-making businesses, provide goods and services, they create jobs, they generate tax revenues, they pay rent, they offer investment opportunities for people with savings (directly or indirectly), they enhance the value of the area (house prices are higher where there are shops and jobs). And so on.

F***cking brilliant, ey? Why don't we just "encourage" more of them, i.e. reduce tax burden (starting with VAT) and regulatory burden?

James Higham said...
This comment has been removed by the author.
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