Global Warming Politics

 
 
 
 
 
 

If Gordon Brown, the British Prime Minister, was thought to stand for anything, it was for the poor and for the disadvantaged. If the Labour Party has a core value, it is surely support for low-income, working families. No longer, it would seem. In trying to pass itself off as a middle class ‘Green’ party for the public school Guardianistas, Labour is making blunder after blunder, errors of political judgment that could well cost it dear, and with likely immediate effect in this up-coming Thursday’s Crewe and Nantwich by-election [see: ‘Tories target “extraordinary” win’, BBC Online Politics News, May 18;  ‘Crewe within Tories’ grasp - poll’, BBC Online Politics News, May 11].


The latest misjudgment is deeply concerning. In attempting to appear ‘Green’, Alistair Darling, the Chancellor, and Mr. Brown are having to defend the indefensible, a retrogressive, retrospective tax change which will especially hit poorer members of society and less well-off families, with no environmental benefits. In his March Budget, Darling blithely announced an increase in Vehicle Excise Duty (VED) on higher emission vehicles. Unfortunately, this is effectively back-dated to vehicles  registered since 2001, which means that many second-hand, older vehicles, including such popular family cars as the Renault Megane and the Ford Focus, will be caught up in the increase.


“Deeply Regressive”


Governments should always strive hard to avoid introducing such retrospective legislation, especially where tax is concerned, because it will often have unexpected, and uncosted, implications for ordinary folk. In this case, the result is disastrous. The second-hand cars which have been corralled retrospectively into the higher bands are precisely those bought by poorer families, who cannot afford new vehicles. Even the Conservatives understand this crucial point, with Justine Greening, their young Shadow Environment Minister, reported as admitting: “This measure is deeply regressive, and it will most acutely affect low-income families.”


It is quite extraordinary that Labour did not think this through, especially at a time of negative equity in housing, vanishing mortgages, a difficult banking environment, higher food, fuel, energy, and petrol costs. Moreover, the effect will be to punish further the weakest in society, those already at tight margins [just like Labour’s ‘10p’ tax debacle], while, would you believe it, diminishing their ability to save to buy newer and thus cleaner cars - utter political madness. Inevitably, there are rumblings of a revolt among Labour backbenchers, with 20 MPs already having signed an early-day motion in the House of Commons for this tax change to be withdrawn immediately.


But the real judgment is likely to come from the people - from the voters - affected by the change, from those who are always hit hardest at the margins. If on Thursday Labour does lose dramatically the Crewe and Nantwich by-election, then Mr. Brown would be wise to remember, and very quickly, that the middle-class ‘Green’ trumpery of the wealthier readers of The Guardian will melt little ice in a cooling economy [see: ‘That Sinking Feeling’, May 15].


Labour needs to return to some solid core values, and to stop trying to play the trendy ‘Green’ Notting Hill game. Nothing it plans will have any effect on climate change, but it could well help to put the party out of office for a very long time.


This is a hairy moment for Labour. Time for a Crewe cut, Gordon? The Big Blue Engine needs to learn a few lessons.

Retrogressive, Retrospective, and Wrong

Sunday, 18 May 2008

 
 
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