Progressive Council Tax – Fairness in Action

An idea emanating from Brighton and Hove Green party is creating a buzz around the whole Green party. There will be a motion debated at the party’s autumn conference on the subject which I hope will be supported and become a central policy tool for Greens in local government.

To be clear, Green party national policy is for the introduction of a Land Value Tax for raising local revenue, but this would need a change in the law, which will only come when we get a Green government. It is also national policy to oppose the current austerity measures as pursued by the Coalition government and which is largely accepted by the Labour party. But again, we need to hold power nationally to affect this successfully.

In the meantime, we need a credible strategy at local government level where we can and do (in Brighton and Hove) run local authorities, which is more than just implementing cuts as directed by national government, as we are at the moment. Progressive Council Tax (PCT) is the best idea that I have heard of for providing us with a distinctive and radical alternative to the present system of local taxation, which is controllable at local level.

So, how does it work? First a referendum needs to be held and won in a local authority area on raising Council Tax by more than 2%, in fact much more than 2%, with the higher the increase, the less the majority will pay.

Then residents are required to apply for a reduction in the charge, which would be means tested, with around 80% of residents receiving a reduction, meaning most would actually pay less than now. For the other 20% who do not qualify for a reduction there will be steep increase in Council Tax. This is all based on residents’ income and ability to pay, which is perfectly fair and counter to the policies of the ConDem government. Vulnerable groups will get special help to ensure they pay only the correct amount.

I’m told that this does not require any change to the law nationally, so if voters can be convinced that this a fairer way to fund local services, and for most it will cost less, then there is nothing to stop a local council introducing this approach.

PCT has a number of advantages, I think. It is fairer, because those who can afford to pay more will do so, leaving those on more modest means either unaffected or better off. It also has the potential to reduce some of the cuts to services that are required by national government reducing direct grants to local authorities, and so at least some services and jobs are retained.

Then of course there is the politics. Would Labour run councils for example, follow suit and introduce the scheme themselves? If they saw it working in Brighton and Hove, they might consider it, but if not then the Green party will have staked out an alternative approach, which to use sales parlance, would be our ‘Unique Selling Point’, offering the voters a true choice in how local services are funded.

There is probably a huge amount of detail to work through on this idea, in practically introducing PCT, but I’m sure that can be achieved, and in principle it can be justified in terms of fairness. We need to be bold as a party in these testing times. PCT’s time has surely come.   

Ecosocialism - Joel Kovel explains the relationship between ecology and socialism

Author of the landmark book 'The Enemy of Nature' Joel Kovel speaking in 2007 about the need for a re-ordering of our economies before the current system destroys the planet.

Using the Financial Crisis To Force Down Lower and Middle Wages

We have featured on this blog the way the Coalition government is blaming the recession on welfare benefits recipients, and using the current economic crisis to make cuts in welfare payments, but they have also taken the opportunity to cut wages, for the lower and middle section also. A recent report by the TUC highlights this policy.

The report finds that almost 80% of the jobs created in the UK since June 2010 have been in low paid industries, i.e. paying less than £7.95 per hour. It goes onto say:

Retail has made the biggest contribution to rising employment levels, with the number of employee jobs in this sector increasing by 234,000. The average wage in retail is just £7.35 an hour. Residential care, where the average wage is £7.78 per hour, makes the second biggest contribution of 155,000 jobs.

Just over one in five (23 per cent) net new employee jobs created since June 2010 has been in the highly paid computer programming, consultancy and related services industry, where the average hourly wage is £18.40. The workforce in this sector has grown by 131,000.

In middle-paid industries, which account for nearly three-quarters of the UK workforce and where the average wage is between £7.95 and £17.40 per hour, there has been no net job creation since June 2010. While some industries, such as legal and accounting have created jobs (135,000), others such as public administration (-160,000) and social work (-68,000) have shed them.

High-paid industries were hardly affected by the recession, with the number of jobs falling by just 0.9 per cent. There are now a record 900,000 employee jobs in high-paid sectors.

On top of this, public sector workers, who are by and large low to middle earners, have had pay freezes and pension contribution increases over the last five years, with the increasing use of short term contract and agency staff at even lower wages. Private sector workers have also had pay freezes and reduced hours, as their employers piled huge amounts of cash reserves (over £300 billion at the last count, not including the banks).

Then as The Guardian reports we have one million workers employed on zero hours contracts across the country, meaning that they are paid when required like the casual hiring of dock workers in New York in the 1950’s, immortalised by Marlon Brando in the film On the Waterfront. No sick pay, no holidays, no pay when not required.

It should come as no surprise that most low paid workers are women, and are disproportionately affected by the forcing down of these wage rates, as this Coalition government is deeply misogynistic and so it is at best ambivalent to this outcome.

Wage rates have been falling though since 2003, under the previous Labour government, though not so sharply, but the gap then was taken up by increasing property prices, where people borrowed against their rising house value to fuel the economy in buying consumer goods. It appears that the current government is attempting to revive this approach with ‘help to buy’ guarantees on home loans, seemingly learning nothing from the debt ridden causes of the 2008 and continuing recession.

All of this while boardroom pay and bonuses rocket.

The future employment prospects for most UK workers will be of low pay, few benefits and generally insecure.  Further legal curbs on the trade unions, and a ‘loosening’ of employment law, with higher fees for employment tribunals thrown in.

A low waged economy where what can be outsourced to China or India cheaper will be and what by some necessity needs to be based in the UK, will be low paid and insecure for most workers, if they can find work at all.

A future where in the first generation since World War 2, the children will be poorer than their parents, rolling back all the social progress in living standards that was achieved in the last century.

Let’s not go down meekly; we can at least put up a fight.       

Migrant Political Activists Support Reverend Paul Nicolson's Anti-Benefit Cuts Stance in Haringey

 

On Thursday 1 August I operated as Secretary of the non-party-political Kilburn Unemployed Workers Group that benefits Brent & Camden & Beyond, as we say in the KUWG. On Friday I was in Haringey Green Party branding, supporting council tax protester Revd Paul Nicolson of Tottenham outside Tottenham Magistrates Court. Clarence was the face of the KUWG for the photo-shoot attended by a photographer from the Haringey Independent and others — including Tottenham's post thundery shower midges that left me with souvenirs of the occasion today!

The police objected to the idea of people being photographed against the backdrop of the Magistrates Court, and so we had to be photographed with our backs to the main road.

Among those who attended, there was a family from Derbyshire who read of Paul Nicolson's stand in Wednesday's Daily Mirror: “Reverend Paul Nicolson: Retired Anglican vicar ready to go to jail in his battle for poor”. Paul was also supported by Haringey Housing Action/Haringey Solidarity Group people, Claire Glasman and Petra Dando of Camden United for Benefit Justice. Clarence of KUWG was also one of those who went into the court with Paul and Paul's son and daughter. Paul's son joked with me that he had come along to disown his father when Paul gets sent down. (I had told Paul's son that it was great that he was there in support of his father, in contrast with the way that one of Mahatma Gandhi's sons was so disgusted with his own upbringing that he became a Muslim.)

Before going into the court, Paul gave a great speech that follows in the pattern of Martin Luther King's 'I Have a Dream' speech 50 years ago this 28 August, updating and relocating it to mention wiping out the meanness of sanctions, £71.60 a week JSA and low birth weight futures. (There is currently a low birth weight rate in parts of Tottenham that is higher than Turkey's.) Paul concluded by saying that he is prepared to go to prison or to only pay his Council Tax when Haringey Council start using it to genuinely help Haringey residents stay in Haringey. I summarised, "So you are keen to pay for Council services but not Council disservices.

"Absolutely!" he affirmed.

Epilogue: For information regarding what went on in the court, see Jaber Mohamed's report, “Reverend Paul Nicolson uses appearance at Enfield and Haringey Magistrates Court to appeal for leniency for victims of benefit cuts.” And more information regarding , what the Chairperson of Taxpayers Against Poverty's very public stance is about than Chairman of the bench Freddy Lawson could tolerate, go to the Taxpayers Against Poverty website.

 

By Alan Wheatley of Haringey Green Party and Kilburn Unemployed Workers Group

Labour to End Affiliation Links to Trade Unions

 

The Guardian newspaper, amongst many other media outlets, reports that the Labour party is seriously considering cutting off affiliation to the trade unions in a move that would end over a hundred years of such arrangements, beginning in 1904 when the unions formed the Labour Representation Committee, which later became the Labour party.

There are many on the right in the Labour party who have wanted to make the break for a number of years now, but the Falkirk by-election candidate selection row with the union Unite, has given fresh impetus to the idea. Without knowing all of the facts surrounding what has gone on in Falkirk, it seems to me that Unite has not broken any Labour party rules, by paying Labour party affiliation fees for members of the union who live in the constituency. And Unite’s argument that it is only trying to increase the number of Labour party MPs from working class backgrounds from the paltry 9% currently in situ, does seem to be a noble aim.

Starting in the 1980’s when Neil Kinnock was Labour party leader, and then pushed much further by Tony Blair when he became leader, there has been a centralising of the decision making for Labour candidates in winnable seats. Some of the justification for this, to get more women into Parliament for example, was good in its intent, but at the same time they had to be the ‘right sort’ of women to benefit. In the main, these candidates’ men or women had to find favour with the Labour leadership in terms of political ideology. This system brought us such political titans as Hazel Blears and Jacqui Smith, so enough said there then.

Unite is only playing the same game as the Labour leadership, in trying to influence the selection of candidates who are more in tune with the values of trade unionism, which given the huge amount of funding provided by the union to Labour (£3 million this year alone), is not in the least bit unreasonable.

So will Labour cut the link? I think there may be some reshuffling of present affiliation rules, but at the end of the day Labour needs the unions’ money. Tony Blair disastrously tried to move away from this dependence when he was leader, wooing wealthy individuals into giving donations, but various patronages scandals cast a shadow over this type approach (though it doesn’t stop the Tories) and it moved Labour even further away from the interests of the people who they were elected to represent. I have my doubts there will be complete break, but it would not surprise me if it happened. Labour has been travelling along this road for getting on for thirty years now.

I say to the unions, wake up and smell the coffee brothers and sisters, the Labour party will never be the party to represent the interests of your members ever again. Labour has become a party of the neo-liberal establishment, with all that that entails. Labour, even in these times of the abject failure of neo-liberalism, will not challenge the status quo, and will only throw a few crumbs from the table to your members.

The decision for the unions is quite simple really. The break with Labour will happen although probably slowly, so what should they do about it? The unions should either form their own party, or back the Green party, or perhaps more likely join a broad electoral coalition of the left, which should include the Green party, and build an electoral movement to change our grossly unequal and unrepresentative politics for good.  

Workers of the world unite! You have nothing to lose but your chains.

Brighton Pavilion MP Caroline Lucas vows to reject £10,000 pay hike

A politician has vowed to turn down a controversial pay hike of up to £10,000 a year.

Despite a likely public outcry, an official review is set to recommend that salaries for our MPs in Westminster should increase by about 15 per cent to up to £75,000 after the next general election.

The findings by the Independent Parliamentary Standards Authority (IPSA) comes in the wake of the expenses scandal and as many in the public sector are experiencing real term cuts to their pay.

While some Sussex MPs refused to rule out accepting the wage rise, Brighton Pavilion MP Caroline Lucas became one of the first politicians in the country to reject the hike. The country’s only Green MP said: “At a time of economic crisis, with so many of our constituents struggling to make ends meet, the proposal is utterly wrong.

“Like many MPs, I support the idea of an independent body to manage MPs’ salaries and expenses away from interference by politicians, but IPSA isn’t doing itself any favours with these hugely out of touch proposals.”

Sir Ian Kennedy, the head of the regulator, is set to make an announcement on proposals sometime this month. But it is widely rumoured the recommendation will be to increase a backbench MP salary from £66,000 to £75,000.

This was after an Ipsa survey earlier this year showed that seven in ten MPs believe they are underpaid compared with other professionals.

Any decision by Sir Ian cannot be overturned by the Prime Minister because MPs gave up the power to determine their own salaries in 2009.

First published at the Brighton Argus

Romayne Phoenix Speaks About Eco-socialism

"Leaving the System by the Frontdoor" Ecosocialism, the viable alternative. Front de Gauche (Londres) meeting 21/6/2013.Romayne Phoenix, Chair Coalition of Resistance & Green Left, & Lewisham Green Party member.