Thought of the Day

Messrs Cable, Darling and Osborne, said to be the three potential Chancellors, were in 'animated' debate in a pre election sort of way, yesterday.  Darling has decided that employers should pay an even higher price for employing people, and then he will give it to the struggling small businesses that he chooses to support. Are we all going mad? And Osborne didn't wipe the floor with him.

So it was a breath of fresh air to see Nigel Farage on Hard Talk. He may not be everyone's taste, but he is bright and brings newer ideas, and defends his position well. I wouldn't mind having a beer with him, even if I get the idea that he might pour it over me.

If only, if only, UKIP wasn't called UKIP, and it had economic policies that would deliver a new dawn to our politics, instead of a re-branding of the old failed economic policies of that lot. They used to say that a week is a long time in politics. How much could change in a year or two. Most of us, I suspect, would prefer to remain within a free trading block, but not be subject to all those directives which are ruining our economy and culture. After the election,  with Cameron's shameful failure to seek a mandate from our people which he could use to negotiate derogation from the more damaging directives, we will be in a poor position to negotiate derogations. But is it absolutely impossible that the cultural differences in Europe and the pressures of international competition will not have demonstrated themselves within a year or two which would make the member states accept sensible arguments to require rules that suit the particular circumstances of each country? That would mean a much looser union of states within a free trading block and with a range of currencies that suit their cultures. So why start from a position of fundamentally getting out of Europe, whatever the possibilities for derogation. Why start from a position of UKIP?

UKIP's economic model is not clear to me.  The main point that I heard from Farage was to make the first £11,500 of income free of tax and National Insurance. Well it’s better than frightening off new workers from employment, because of marginal rates of tax, but at that level, UKIP admit that £35bn of tax would have to be raised elsewhere. They claim that lower taxes on high earners would contribute, which they probably would do to a small degree, but £35bn takes a bit of believing. They also rely on savings on QUANGOS. We anticipate that £5bn could be saved annually by binning a lot of Qs, without testing credibility, but it’s not enough. We do not believe that UKIP's budget figures stack up.

Our view is that UKIP have got their tax idea exactly wrong. Ours is more or less the opposite model of tax policy. Give everyone a National Income of £5500 or thereabouts, do away with National Insurance and tax every penny that people earn at 43%. And no minimum wage. Its simple and everyone would know exactly where they stand.


















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