There was a reason Labour didn’t touch the top rate of income tax until Gordon Brown finally allowed insanity to take a grip on him. Because they knew it fed economic growth and brought in the billions of taxes for them to spend on creating the client state with millions gratefully dependent on Labour handouts. However, this all changed when Gordon Brown in a stroke signalled to the rest of the world back in 2009 that Britain was not a fan of business when he raised the top rate to 50p.
Britain, along with Germany, was the financial powerhouse of Europe during the years when the rate at which the Government stopped taxing income was held at 40p. Gone were the days of Labour Governments raising income tax to 83p and Labour Chancellors saying the “tax the rich until the pips squeak”. Britain was open for business.
But after thirteen years of profligate spending during the Blair-Brown years the chickens came home to roost and the economy took a nose-dive. Gordon Brown saw his opportunity to whack up the top rate to 50p and thereby slammed the UK plc shop door firmly shut.
Labour were duly kicked out of office in 2010 and we then had a Tory Chancellor in George Osborne who instinctively knew he must reverse Brown’s decision and take the top rate back to 40p. It would put the open sign back on the UK plc shop door. It wouldn’t solve the financial crisis overnight but it would certainly turn us in the right direction. The proof is that low taxation grows economies as was seen in the 1980s and 1990s until Labour got their wrecking ball out in 1997.
But it seems, according to the excellent Tim Montgomerie over at the Conservative Home parish, George Osborne was scuppered at the last moment during this March Budget preparations by the smarmy and quite revolting Nick Clegg. The Liberal Democrat leader told David Cameron the top rate must only drop to 45p and Cameron said: “Yes, sir.”
Nick Clegg is a man who leads a party which has only 1/6 of the seats in the House of Commons but is treated by the Prime Minister as if he is the senior partner. What would have happened if Cameron had said “no”? Nothing. Clegg would have buckled and ordered his troops to go through the Aye lobby to rubber stamp the Budget. Because they will always put the ministerial limo before their principles and we would get a good Tory Government backed up by the Yellow Peril. But instead, Cameron caved into Clegg and we have a Liberal Democrat-led Government as a result. It’s working out, isn’t it?
I am still believe in the Conservative Party and our core values but I just wishe the Conservative leader would talk about them more. Tim Montgomerie said the same thing yesterday:
Watching Cameron tonight I saw a very good salesman who could have sold Conservatism but chose to sell himself and it isn’t enough.
— Tim Montgomerie (@TimMontgomerie) May 24, 2012
If staunch Tories like Tim are saying this openly, Cameron is in trouble. As I’ve said before, we should never have gone into coalition with the Liberals. If we had gone to the country again in October 2010, we would now have a Tory majority Government and if Cameron dared to behave like this in a pure Tory Government, he would be gone in that “sudden, unsentimental and brutal” fashion very soon indeed.