Remember Keir, Your Dad was a Toolmaker

I worked with Keir Starmer when he was the Human Rights advisor to the Northern Ireland Policing Board. His knowledge of human rights and related legislation played a significant role in reforming the culture of policing in Northern Ireland. As a public servant in the role of Director of Public Prosecutions, he showed skill and competence. However, even with these successes, I could not have envisaged him as a politician let alone a Prime Minister of the United Kingdom. He lacked that X-factor and charisma, though credit where credit is due, he did make the Labour Party electable after the disaster of 2019. Again, to be fair his thumping electoral majority was also a consequence of a dysfunctional Conservative Party. Labour’s majority is large, but its victory is shallow, so highlighting the economic challenges and pointing to the destination should be communicated in equal measure. The £22 billion current year fiscal black hole and the tough decisions related to spending have been mentioned on so many occasions that it is frightening to all those on modest incomes, many of whom voted Labour. As a political strategy, this makes no political sense. Keir and Rachel thought that cutting winter fuel allowance for pensioners saving some £1.4 billion would show the markets their “fiscal balls”, seriously, this represents 0.0011% of predicted public expenditure in 24/24 This cut should have been announced as part of the autumn budget with some mitigation for those pensioners whose income is just over the £12,500 limit.

So, the memorable start looks like this, I have cut winter fuel allowance for pensioners when it should have been tapered, I believe in reducing child poverty, but I am keeping the two-child cap, I have scrapped the Rwanda scheme but going to meet the neo-Nazi Meloni to get some advice on controlling migration and photo opportunity with a lame duck president. I also have a new mantra, no reform no money and to top it all, thanks to Lord Ali for the tens of thousands of pounds for a new wardrobe for me and the wife. Accepting this gift as he picks the pockets of pensioners for a couple hundred quid.This is poor judgment, not corruption on a scale of the Tory PPE scandal, it is not Berni Gate where Blair intervened to get F1 exempt from the tobacco advertising ban. However, a Labour victory that was partially predicated on Keir’s integrity, recent events show crass political ineptitude and judgment. To rub salt into the PR wound, Josh Simons MP went on to Politics Live to defend the indefensible saying” Keir Starmer is not a man who is independently wealthy.” Keir’s net worth can be measured in millions and makes him part of the top 1%. His personal wealth is not the issue however, you cannot bang on about the fiscal black hole and it is going to get worse before it gets better then, be gifted clothes like a charity shop, it just looks bad. It was announced that he and his cabinet would not be taking any more clothes from party donors, a suggestion by Harriet Harman hours earlier. What he should do is, firstly show some contrition for his poor judgement, and make a substantial donation to a charity of his choice.

Keir has quite rightly highlighted the failures of the last 14 years and the negative impact on public services particularly in terms of investment in addition to, the lagging productivity, anaemic growth, and the ballooning deficit. At the Labour Party conference, he needs to show not just a vision for our collective future but a road map to deliver it. It is not good enough for Keir to aspire to a second Labour term and bang on about working people, he must make a compelling sales pitch, and we have to believe in it. He needs to explain and excite people about what he means by the common good and here he can look to Daniel Chandler’s book, Free and Equal and Joseph Stiglitz’s book, The Road to Freedom. Furthermore, simply explain the term Securonomics, an innovative word in the economics lingosphere.

 Let me give it a go, in simple terms it means that economic security, resilience, growth, social cohesion and remedying the real deficits, which is health and education, are dependent on an active but not an interfering Government, a type of Bidenomics. The difference is Rachel wants to do this without spending the dosh. Here Keir and Rachael can look to Will Hutton’s new book, This Time No Mistakes, How to Remake Britain. 

The LSE has calculated that a minimum tax rate of 35% on income and capital gains would raise £11 billion per annum. In another piece of analysis equalising capital gains and income tax could raise £18 billion per annum according to the Institute of Public Policy Research (IPPR) think tank. Arun Advani of Warwick University and LSE Inequalities Institute calculates that extending National Ins to investment income and removing the cap on higher earners could also raise an additional £28.0 billion a year. OMG, real “fiscal headroom.” This additional tax revenue of £46.0 billion would be equivalent to adding 2.0% to the UK’s GDP. In addition the UK’s tax revenue according to the IMF as a percentage of GDP is 39% , this lags Germany by 4%, France by 14%,Netherlands by 4%, Spain by 4% and Sweden by 9%, you know what I am saying. Quite frankly, if multimillionaires and billionaires who enjoy living in the UK, feel their shoulders are not broad enough, “adios amigos,” you will not be missed. Social democracy takes the form of socially managed welfare capitalism and emphasizes economic interventionism, when necessary, for partial public ownership (like the water and energy security) a robust welfare state upholding universally accessible public services such as childcare, education and health. It also includes promoting equality of opportunity, social equality, a more equitable distribution of income, and a fair tax system.

This last couple of weeks have been a public relations disaster, this can be remedied at the party conference. Talk about a fairer tax burden and explain the need for a shift in tax from income to wealth. Abandon austerity as a political or economic choice, show how investing in people, building social housing and public services will show a return. Tell the electorate what it means to rebuild Britain and layout simply, how we are going to get there with a new mantra, not about being “intensely relaxed about people getting filthy rich” but how he, the Prime Minister plans to “share prosperity” and please, leave the Black Hole to Brian Cox.

Suneil Sharma

24th September 2024