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My Bedroom Tax protest speech

30 Sunday Mar 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Cost of living, Health, Housing, People, Politics, Poverty, UK

≈ 15 Comments

Tags

Act, adapt, appeal, austerity, bedroom tax, benefit, broom cupboard, Caerphilly, corporate manslaughter, council, demonstration, Department, Department for Work and Pensions, disability, disabled, DWP, exempt, food, government, health, heat, home, housing, housing association, Iain Duncan Smith, Joe Halewood, landlord, loophole, Mike Sivier, mikesivier, Parliament, Pensions, people, play, politics, pre 1996, protest, room, sick, social, social security, spare room subsidy, speech, SPeye, State Underoccupation Charge, Stephanie Bottrill, study, SUC, tenant, Tommy Cooper, utility, voodoo doll, Vox Political, water, welfare, work


Standing in the shadow of a giant: Vox Political's Mike Sivier (front) at 'Cooper Corner', with Caerphilly Castle in the background.

Standing in the shadow of a giant: Vox Political’s Mike Sivier (front) at ‘Cooper Corner’, with Caerphilly Castle in the background.

Vox Political was relatively quiet yesterday; although I reblogged plenty of articles from other sources, there was no new piece from the site itself because I was in Caerphilly, delivering a speech at a Bedroom Tax protest there.

Caerphilly is the birthplace of the late, great comic Tommy Cooper, and it was in the shadow of his statue that the demonstration took place. I instantly (and privately) named the location ‘Cooper Corner’.

I took the opportunity to lighten proceedings at the start by suggesting that Mr Cooper (albeit in petrified effigy) would be providing the jokes. I held the microphone up towards the statue. “Anything? No? No. I didn’t think so.” Turning back to the crowd I added: “The Bedroom Tax is no laughing matter.” Then I got into the body of the speech:

“I write a small blog called Vox Political. I started it a couple of years ago as an attempt to put in writing what a reasonable, thinking person might have to say about government policies in these years of forced austerity, and politics in general.

“As you can probably imagine, this means I knew about the Bedroom Tax, several months before it was actually imposed on us all. I was writing articles warning people against it from October 2012. The trouble was, Vox Political is a small blog that even now has only a few thousand readers a day – and the mainstream media has been almost entirely bought by a political machine with far more funding than I have.

“It is a tax, by the way. You may have heard a lot of nonsense that it isn’t, but consider it this way: a tax is defined as a compulsory contribution to state revenue, levied by the government against a citizen’s person, property or activity, to support government policies.

“It is not a ‘spare-room subsidy’. If anyone in authority tries to tell you you’re having your ‘spare-room subsidy’ removed (or more likely, imposed, they’re so confused about this), just tell them to go and find the Act of Parliament that introduced the ‘spare room subsidy’, using those words. Tell them if they can find it, you’ll pay it – but if they can’t, they must not take any money away from you. They won’t be able to find it because it doesn’t exist.

“It is more accurately described as the ‘State Underoccupation Charge’ – SUC! And it really does suck.

“It sucks money that social housing tenants need for food, heat, water and other necessities out of their pockets and forces them to send it to their landlord instead – either the local council or a social landlord like a housing association. The reasoning behind it has always been that this would encourage people to move, but in fact we know that there is no social accommodation for them to move into. When the Bedroom Tax became law, there was only enough smaller housing to accommodate around 15 per cent of the affected households. It is clearly a trap, designed to make poor people poorer.

“This is why the first advice I put on my blog was for anyone affected by the Bedroom Tax to appeal against it – and I was criticised quite harshly for it, because some people decided such action would mark tenants out as troublemakers and create more problems for them. At the time, I thought it was right to give some of the aggravation back to the people who were foisting this additional burden onto lower-income families; make them work for it, if they want it so badly. As it turns out, I was right to do so, because there are so many loopholes in the legislation that it seems almost anybody could avoid paying!

“Do you think Stephanie Bottrill would have died if she had known that she could successfully appeal against her Bedroom Tax, on the grounds that she had been a social housing tenant since before January 1996 and was therefore exempt? The government spitefully closed that particular loophole earlier this month, but that lady is already dead, due to a lie. Had she been properly informed, she could have successfully fought it off and then taken advice on how to cope with it after the government amendment was brought in.

“There is a case for corporate manslaughter against the Department for Work and Pensions, right there. If tested in court, it seems likely that the way its activities have been managed and organised by senior management – the fact that it foisted the Bedroom Tax, wrongly, on this lady – will be found to have led to her death, in gross breach of its duty of care to those who claim state benefits (in this case, Housing Benefit).

“David Cameron has wasted a great deal of oxygen telling us all that disabled people are not affected by the tax. Perhaps he could explain why a disabled gentleman in my home town was forced to move out of his specially-adapted home, incurring not only the cost of moving but an extra £5,000 for removing the adaptations and installing them into new accommodation? He appealed against Bedroom Tax decision but the result came back after the date when he had to be out of his home. Can you guess what it was? That’s right – he won. I have been trying to get him to take legal action against the council and the government about this as it would be an important test case.

“There are other grounds for appealing against the Bedroom Tax. Just because your council wants to claim every room that could be a bedroom is a bedroom, that doesn’t make it so. A fellow blogger, Joe Halewood, has published a list of other room designations that you are allowed to have.

“It includes a study, a utility room, a play room, even an Iain Duncan Smith voodoo doll-making room, if that takes your fancy!

“I was particularly happy to hear that you can have a study as I’ve been writing my blog from the broom cupboard – oh! That’s another room you can have!

“Check the DWP’s online forms. They ask about bedrooms, and then they ask about other rooms. The distinction is clear.”

Then I closed the speech. In retrospect, I should have finished with a few words about the fact that this was the first bit of public speaking I had ever done. I could have given them something along these lines: “I am aware that speech-making is a lucrative sideline for many people, including comedians (although I’m not aware that Mr Cooper ever made any) and also politicians. Perhaps I should use this platform to suggest that, if you know anybody who is considering booking a speaker for a special occasion – society dinner, rugby club social, wedding or party, why not ask them to get in touch with me – instead of Iain Duncan Smith!”

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Yet another Bedroom Tax tale to make your blood boil

13 Thursday Mar 2014

Posted by Mike Sivier in Bedroom Tax, Children, Cost of living, Drugs, Health, Housing, Law, People, Politics, Poverty, Tax, UK

≈ 16 Comments

Tags

bedroom tax, benefit, benefits, clothes, debt, drug, eat, exempt, Facebook, food, health, loophole, Mike Sivier, mikesivier, people, politics, room, sell, sick, social security, spare, speed, starve, Vox Political, welfare


compassionbypass

Vox Political just had this Bedroom Tax story from a commenter on Facebook who has asked not to be named. I don’t think it needs any commentary from me:

“A neighbour of mine couldnt bear to give up the family home so she struggled and paid £24 a week for two spare rooms.

“She was missing all her other payments and not eating for days.

“She then had to start selling things from her house…

“Then started asking us if we had any old clothes because she had found a place where they weigh old clothes and give you money for them…

“Then because we had given her all we had, another so-called friend told her how she does without food… She then started taking speed as you don’t feel hungry and what money was left she could at least use to feed her daughter.

“She came to mine and broke down because she was ill with it.

“She’s okay now but guess how?

“After all she had been through…

“For nearly 10 months…

“We then found out…

“Because of the 1996 loophole…

“She was exempt.”

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Evictions begin as government starts grabbing your homes

22 Saturday Feb 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, council tax, Disability, Employment, Employment and Support Allowance, Housing, Liberal Democrats, Media, People, Politics, Poverty, Powys, Public services, Tax, UK, unemployment, Universal Credit

≈ 42 Comments

Tags

accommodation, adaptation, backdate, bedroom tax, benefit, benefits, British, Bulldog spirit, change, circumstance, Coalition, Conservative, Coronation Street, council, council tax reduction scheme, cut, Democrat, disability, disabled, evict, exempt, government, home, house, housing, Iceland, ignorance, inaction, Inclusion, Justice, landlord, Lib Dem, Liberal, local, Localism Act, Media, Mike Sivier, mikesivier, national, Parliament, penalise, people, Pickles Poll Tax, politics, Poll Tax, Reform, rent, right-wing, Shylock, social, social security, striver, tenancy, tenant, The X Factor, Torie, Tories, Universal Credit, vacate, Vox Political, welfare, Welfare Reform Act, Westminster, Winter Olympics


140222evictions

It is easy to get caught up in headlines and forget that the Coalition’s benefit reforms mean people you know will lose their homes.

You know what happens then? PEOPLE YOU KNOW START LOSING THEIR HOMES.

Vox Political was warning the world about this back in 2012 – nearly two years ago – saying the bedroom tax would put people on the streets while homes go empty and warning about the ‘Poll Tax revival plan to take away your home’. It gives me no pleasure at all to report that I was right.

This week I heard about two cases in my Mid Wales town. You may think that isn’t many, but this is a town with a population of less than 5,000 – and I haven’t heard about every case.

The first involves a family that has been living in the same council house for more than 30 years. Sadly the head of the household recently had a stroke and has been forced to move into a care home. In the past, the tenancy would have been handed down to the next generation of the family – two sons, one of whom has a family of his own. The other is a friend of mine, of excellent character. By day he works very hard at his job; after hours, he is a member of a popular local band (along with his brother, as it happens). They are what this government would call “strivers”.

But they are being penalised because they have been told to vacate the only home they have had. Not only that, they are being asked to stump up a small fortune in backdated rent (as their father has been paying for his care, not the house) and another small fortune to dispose of carpets they cannot take with them, which the council does not want.

When I spoke to my friend yesterday, he told me that the council simply does not want him or his brother as tenants because “it is easier to process a large family who are on benefits”. I queried this, and it seems likely that this is to do with the forthcoming Universal Credit system, and with the Council Tax Reduction Scheme (also known as the Pickles Poll Tax); it is easier to handle Universal Credit and council tax claims if the authorities have foreknowledge of a household’s income.

We both agreed that there is a serious drawback to this thinking.

Large families do not want to move into vacant social accommodation because they fear what the government – national and local – will do to them if their circumstances change. Children grow up; adults move out – and that will make them vulnerable to the Bedroom Tax. Suddenly their benefits won’t be enough to pay the rent and they, in turn, will be turfed out onto the streets. They know it is a trap; they will try to avoid it.

My friend agreed. “That house is going to stay empty for a very long time,” he said.

This is madness. Here are two people who are perfectly willing and able to pay the council’s rent, on time, for as long as they need the property but, because of the Welfare Reform Act and the Localism Act, the council is treating them abominably and the house will end up providing no income at all.

If you think that’s bad, though, just wait until you learn about my other friend!

He is an older gentleman who has been disabled for many years. He had been living in a small, two-bedroomed house that had been adapted to accommodate his needs. We know precisely how much these adaptations cost to install at current rates: £5,000.

I believe he needed the extra bedroom to accommodate carer needs but I could be mistaken.

Along came the Bedroom Tax and suddenly he did not have enough income to cover the cost of living there. The council (or social landlord, I have to admit I’m not sure) sent him an eviction notice. He appealed.

Guess what? His appeal was set to be decided after the date he was ordered to be out of his home.

So he had to go. He was lucky enough to find another place to live, and all the equipment he needs to accommodate his disability moved along with him – at a cost of £5,000.

Then he received the judgement on his appeal: He was exempt from paying the Bedroom Tax; he should never have been forced to move.

Is this British justice?

This country was once the envy of the world because we were far more enlightened than any other nation in our policies of social justice and inclusion. Not any more! Now we are regressing into a new dark age in which the squalid Shylocks infesting Westminster manipulate local authorities into performing grubby property grabs for them.

Is the ‘Bulldog Spirit’ that made us famous for standing our ground during the Blitz now being turned to hounding the poor out of their homes?

Are you willing to put up with this?

In Iceland, they marched to their Parliament and set up camp outside until the government gave up and agreed to the demands of the people. Here, an unmandated government rides roughshod over democracy while you sit at home watching The X Factor, Coronation Street and the Winter Olympics.

Nothing will change until you change it – but you know this already. The simple fact is that, if you are reading this article, you probably sympathise with the sentiments it is expressing and are already active in opposing the heinous crimes being committed against our people.

There are not enough of you. People who need to read these words are being allowed to live in ignorance, lulled into inactivity by the right-wing mass media.

It’s time to put an end to that. There can be no excuse for ignorance and inaction while people are being made homeless. Think of someone you know who needs to be shown the truth and make them read this article. Ask them what they think of it and explain the facts of what is happening around them.

Then tell them to pass it on to someone they know.

Spread the word – don’t keep it to yourself. And don’t sit on your thumbs and expect somebody else to do your bit for you. If you don’t act, why should anybody else? What’s the point of me writing these articles if you can’t be bothered to do anything about it? Are you going to wait until someone tells you they want your home?

Then it will be too late.

I’ll know if you succeed because it will be reflected in the number of times this article is viewed. I’ll report the results of this experiment next week.

Don’t let yourself down.

Follow me on Twitter: @MidWalesMike

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‘Abolition of the Bedroom Tax’ Bill is launched in Parliament

13 Thursday Feb 2014

Posted by Mike Sivier in Bedroom Tax, Cost of living, Housing, Labour Party, Politics, Poverty

≈ 29 Comments

Tags

1999, abolish, appeal, bedroom tax, benefit, benefits, bill, child of courage, Coalition, commission of inquiry, committee, Conservative, council, Debbie Abrahams, debt, Democrat, Department, disabled, DWP, esther mcvey, exempt, fake, false, figure, housing association, housing benefit, Iain Duncan Smith, Ian Lavery, Labour, Lib Dem, Liberal, local authority, Lord Freud, Michael Meacher, Mike Sivier, mikesivier, National Housing Federation, number, Parliament, Pensions, people, politics, poverty, Scottish National Party, social landlord, social security, statistic, Stephanie Bottrill, suicide, Tories, Tory, university, Vox Political, welfare, work, York


Ian Lavery launched his ambitious Bill to abolish the Bedroom Tax yesterday. [Image: Daily Mirror]

Ian Lavery launched his ambitious Bill to abolish the Bedroom Tax yesterday. [Image: Daily Mirror]

Make no mistake about it – the purpose of the legislation tabled yesterday (Wednesday) by Labour’s Ian Lavery is to discover how many Liberal Democrat MPs are redeemable and how many have been irreversibly corrupted by their current alliance with the Conservatives.

The Bill to abolish the hated Bedroom Tax is unlikely to gain Royal Assent unless Liberal Democrats who supported the imposition of the Bedroom Tax reverse their point of view. There is even the possibility that some Conservatives may now realise that they, as Mr Lavery put it, “underestimated the real consequences of walking through the Government Lobby to support the introduction”. He also said: “It is an olive branch… I would hope that my Bill would receive support from members in all parties.”

MPs voted almost unanimously for the Bill to be brought in, with 226 votes in favour and only one against – but readers of this blog will be familiar with the fact that this happened with Michael Meacher’s motion for a commission of inquiry into the impact of social security changes on poverty. The House approved; the government did nothing.

So don’t get your hopes up too high.

Mr Lavery was the only person to speak on the subject, and his words are well worth noting here.

“The full and sole intention of this Bill is to sweep away the dreaded bedroom tax,” he said.

“It seeks to restore justice for up to 660,000 people — some of our country’s most vulnerable citizens, two-thirds of whom are disabled. They have been inhumanely let down by the Government’s reforms to housing benefit in the social sector. The tax has caused heartache and devastation to thousands of residents up and down this country. It is a tax whose forced implementation has put extreme pressure on councils, housing associations and social landlords. It is a tax that has put extreme pressure on the ordinary working people who are forced to deal with those unable to move and those unable to pay.

“On the introduction of the tax, Ministers argued that the changes would encourage people to downsize to smaller properties and, in doing so, help to cut the £23 billion annual bill for housing benefit; would free up living space for overcrowded families; and would encourage people to get jobs. Significantly, it has achieved none of those objectives.

“At the same time, the Department for Work and Pensions has trumpeted the measure as ‘returning fairness to housing benefit’. The words ‘fairness’ and ‘bedroom tax’ should not be uttered in the same sentence.”

He said: “This tax is a problem in each and every constituency up and down the country; this is not simply a problem in Labour-dominated authorities. I was contacted only last week by a distraught resident from the Tory shires who is hoping that my Bill will be successful, because he, a disabled man, is living in a three-bedroom property and has just received an eviction notice for bedroom tax arrears. He is not alone. The bedroom tax sufferers in Liberal Democrat and Tory constituencies number around 250,000. Perhaps we should ask them whether they think this abominable tax has restored fairness to housing benefit.”

Mr Lavery said his Bill seeks “to restore fairness and to end the misery that the bedroom tax has caused”. He said there are hundreds, if not thousands, of “appalling” examples of suffering, mentioning (but not naming) mother-of-two Stephanie Bottrill, a woman suffering a crippling illness who committed suicide after realising that she could not pay the bedroom tax. Her family received correspondence later saying that she should have been exempt from the charge.

He also mentioned a case he said was “hard to comprehend; it really is difficult to try to get to grips with”. He said: “The family of the 1999 child of courage, who spent years battling multiple cancers, is suffering at the hands of this horrible reform. These people are not living a life of luxury in palatial properties; they are living in a place in which they feel safe and which they call home. It is time to listen. I am sure that most fair-minded individuals would agree that a bedroom is not spare when carers sleep in it, when couples use it because one of them has health problems and they cannot share a bed, or when it houses vital medical equipment, yet this indiscriminate tax deems it so.

“The reality is that yet another measure introduced by this Government is in total and utter chaos. It lies in tatters, with the victims left to pick up the pieces. As thousands suffer, there is a real risk that the bedroom tax will end up costing more than it saves. The National Housing Federation has said that the savings claimed by the Government are ‘highly questionable’, partly because those who are forced to move to the private rented sector will end up costing more in housing benefit.

“Surely, as politicians and members of the general public, we are entitled to question the motives behind the introduction of the bedroom tax. The tax does not deal with the problem of under-occupation. In fact, the Government’s costings on the yield raised from the bedroom tax explicitly assume that people will not move into smaller properties. There are simply not enough smaller properties for people to move into.

“Some 180,000 households were deemed to be under-occupying two-bedroom homes, yet only 85,000 one-bedroom homes became available during the whole of 2012. The savings projections of the Department for Work and Pensions assume that not one of the 660,000 households affected would respond to the policy by moving to a smaller home. Put simply, this is yet another example of the Government balancing the books on the backs of the disabled and the vulnerable. The tax must be scrapped now.

“Housing associations say that tens of millions of pounds are likely to be lost through the build-up of arrears. Reports this morning estimate that 144,000 people have fallen behind with their rents since the introduction of the bedroom tax and that 14 per cent have received eviction notices [20,160].

“Was that really meant to happen? Was this eviction of the poor really the plan of the Government?

“In October, research by the University of York, which was based on data by the housing associations that have tenants affected by the bedroom tax, suggested that the policy could save up to 39 per cent less than the DWP had predicted. In the past week, it has emerged that more than half of the £500 million that the Government claim will be saved by the hated tax will be spent on re-housing disabled people. These are vulnerable people who already live in properties that have been adapted for their needs and who have built up local support networks with their friends, family and neighbours. The future for them lies in communities that are unknown and foreign to them. They have been cast out like the proverbial dog in the night.”

Interrupted when he mentioned the loophole that exempted Stephanie Bottrill from paying the bedroom tax – another member said that the loophole had been closed – Mr Lavery continued: “As Ministers scramble to mop up the mistakes, another challenge to the hated tax has arisen. A judge has overturned the tax in the case of a Rochdale man who argued that one of his bedrooms was used as a dining room. The appeal was upheld on the basis that the dictionary definition of a bedroom is a room that contains a bed that is used for sleeping in. An avalanche of appeals is on its way.

“I am proud to see that, only last week, the Scottish Labour party shamed the Scottish National party into abolishing the bedroom tax. I must put it on the record that I am also proud that one of the first acts of a future Labour Government will be to end this full frontal attack on the vulnerable. However, we cannot afford to wait until the general election of 2015. I urge the supporters of this tax to think again.

“The question is this: Are they happy to see the misery and social disruption of the vulnerable and disabled? I began this speech by expressing the view that those who voted in favour of introducing this dreaded bedroom tax may have underestimated the human suffering that it would cause. That is no longer in any doubt, so I urge them all to do the honourable thing and support my Bill.”

That really is the question for members of the public to consider, along with MPs. If your MP votes against Mr Lavery’s Bill, then you will know that they are, indeed, happy to inflict misery and disruption on the vulnerable and disabled.

Do you want to live in a country where people like that are allowed to rule?

Make no mistake: This legislation is unlikely to succeed without support from people who previously helped bring the Bedroom Tax into law. As such, it might not work.

But this is also legislation that should help you decide how you will vote in May next year.

We can hope that our MPs – and you yourself, dear reader – choose wisely.

The Bill will have its second reading on February 28.

 Labour’s Chris Bryant took the opportunity afforded by Mr Lavery’s motion to bring a point of order – that Iain Duncan Smith, Esther McVey and Lord Freud had been using false statistics. He said: “Earlier this year, when asked how many people had been affected by the loophole in the bedroom tax legislation, the Secretary of State for Work and Pensions… said that the number was between 3,000 and 5,000. In a written answer, the Minister of State… (Esther McVey)… said that she did not know how many had been affected. Lord Freud, a Minister in another place, said that it was an insignificant number. Today, however, he told the Work and Pensions Committee of this House that the number was 5,000.

“We have been doing their work for them, and from Freedom of Information requests to local authorities in England, Wales and Scotland, we already know, from just the third that replied, of 16,000 cases.”

Debbie Abrahams, a member of the Work and Pensions committee to whom Lord Freud provided the false figure, said committee members will be pursuing the matter.

Follow me on Twitter: @MidWalesMike

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A word of caution on the ‘Bedroom Tax exemption’ victory

24 Tuesday Dec 2013

Posted by Mike Sivier in Bedroom Tax, Benefits, Conservative Party, Cost of living, Housing, Law, People, Politics, Poverty, UK

≈ 61 Comments

Tags

bedroom tax, benefit, benefits, clarification, Coalition, cock-up, Consequential Provisions, Conservative, Council Tax Benefit, Department, DWP, exempt, government, housing benefit, Iain Duncan Smith, impoverishment, January 1 1996, legislation, Mike Sivier, mikesivier, mistake, Pensions, people, politics, poverty, proof, prove, regulations, social security, Stephanie Bottrill, Tories, Tory, Vox Political, welfare, work


bedroomtax

Campaigners in the UK have been celebrating after they found a little-known regulation that exempts many social housing tenants from the Bedroom Tax.

The Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006 state (in not so many words) that, if you have been in receipt of Housing Benefit since before January 1, 1996, then you are exempt from the Bedroom Tax.

The relevant part is on pages 32 and 33 of the PDF file, and schedule 3 (4) (3) (b) (ii) states that a break of up to 4 weeks in the continuous period is allowed.

Many people have seen this as a considerable victory, as it may affect a large proportion of the 660,000 households hit by the spiteful tax. Everyone who has lost money because of it has been urged to check whether they can appeal on these grounds.

Some have noted, with sadness, that people who have died – like Stephanie Bottrill  – might still be with us if we had earlier knowledge of the regulation.

Now here’s the bad news: You have to have proof that you have been in receipt of HB since before January 1, 1996, or the authorities will ignore any exemption request.

Or, as a Vox Political commenter put it: “Just been on to HB as we should be free of this bedroom tax and they just told us we need proof of being here since this time scale which after all these years we don’t. And they said their records only go back six years. My God, they just won’t have it, will they? So stuck again as no proof as housing and DHSS don’t go back to 1/jan 1996.”

How many others are in the same situation?

Worse still, look at this comment from a DWP spokesman, published in the Morning Star‘s coverage of the story: “”We are aware of a potential regulatory issue in relation to pre-1996 social sector housing benefit tenants and the removal of the spare room subsidy,

“We are looking at this carefully and will take any necessary action to clarify our position as soon as possible.”

We all know what a DWP clarification is; it’s legislation to ensure that the regulation is removed – in order to ensure that the cock-up is erased from history and there continues to be no obstacle to Iain Duncan Smith’s plan for the impoverishment of the masses.

That’s what he tried with Workfare, after all – even if he couldn’t get it right.

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Sort out the tax dodgers, Labour, then the benefit bill won’t be a problem

13 Sunday Oct 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Cost of living, Economy, Employment, Health, Labour Party, Law, Liberal Democrats, People, Politics, Poverty, Tax, UK, unemployment

≈ 35 Comments

Tags

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Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

A lot of people have been getting their knickers in a knot about Rachel Reeves’ interview in today’s Observer – and rightly so.

In it, she tells us (wrongly), “We are not in an environment where there is more money around,” and says that Labour will be tougher than the Tories when it comes to slashing the benefits bill. She stressed that she wanted to explode the “myth” that Labour is soft on benefit costs.

There are a few myths feeding into these statements. Firstly, the myth that millions upon millions of British citizens are living a life of luxury on benefits, which is, quite frankly, infantile nonsense. Benefits do not pay the ordinary claimant enough to afford huge luxuries and never did. They were always intended to cover the cost of survival while the recipient looked for something better. Anything else is a lie concocted by unscrupulous politicians, that you would be a fool to believe.

Then there’s the myth that the British taxpayer is being defrauded out of a fortune by benefit cheats who are (again) living a life of luxury at our expense. One look at the figures dispels that idea! The fact is that only seven people in every thousand commit benefit fraud – at a consequently small cost to the overall budget – and the amount they receive simply would not support the lifestyle our politicians are suggesting for them.

Let’s move up to a bigger myth – that people prefer to live on benefits than get a job. We’ve now moved from infantile nonsense to dangerous nonsense. The current situation, engineered by the conservatives in both Coalition parties, means there are very few jobs available – around 500,000 at any one time, with 2.5 million people chasing them.

And what kind of jobs are they? How many are zero-hours contracts? How many are part-time? These jobs do not pay more than benefits (“Making Work Pay” – another Tory lie) so anyone taking them will be out-of-pocket.

Meanwhile, the Tories in power have rigged the system so that anyone who does not spend the entire working week pestering local businesses for jobs that they aren’t offering will be sanctioned and will lose their benefit for a period of up to three years! It is entirely disproportionate, considering the state of the economy, and may cost jobseekers a lot more than a few quid a week in the long run.

But this is how the benefits bill will be slashed – by the Conservatives and by Labour, if Rachel Reeves is to be believed. Ministers of any party, living in the la-la land of made-up statistics, will sanction people for failing to work hard enough at securing jobs that don’t exist!

Ms Reeves says Labour’s jobs guarantee will ensure that those jobs do exist but we don’t know that for sure. We do know that she intends to continue Tory policy on sanctions – blindly.

Finally, we have the biggest myth of all – that there isn’t enough money. HM Revenue and Customs just released estimates for the last-but-one tax year (2011-12), suggesting that it failed to collect £35 billion in evaded or avoided tax during that year.

That’s seven times more than the national bill for JSA, and more than 29 times the estimated cost of all benefit fraud. But wait – it gets better! This is only an estimate and it has long been believed that the true cost of the so-called “tax gap” is £120 billion – equal to each year’s national deficit, 24 times the cost of JSA or 100 times the cost of benefit fraud.

Why isn’t our government going after these criminals? Why hasn’t Labour promised to go after them if the Tories won’t?

Simple: Both main parties have been re-writing tax law to make it easier for rich individuals and large corporations to avoid paying tax, and ignoring flaws in tax laws that make avoidance possible.

So for example: In the late 1990s, the then-Labour government removed the tax on dividends that meant companies had to pay tax on profits if they wanted to pay them out to the owners. So for example Arcadia boss Philip Green’s wife Tina, who is technically the owner of the company and lives in Monaco, received a tax-free £1.2 billion dividend in 2005; if this tax had been in place, £300 million of that would have gone to the UK Treasury.

Gordon Brown slashed Capital Gains Tax from 40 per cent to 10 per cent in 2000, meaning income that his friends in private equity managed to engineer into capital gains would be taxed at a lower rate than was paid by their cleaners. Not the finest hour for the Party of the Worker!

And towards the end of its term, New Labour started dismantling the rules that guarded against industrial-scale tax avoidance by British multinationals, meaning profits returned to the UK from overseas subsidiaries would be exempt from tax. This created a substantial incentive for firms to send their income offshore.

Before the 2010 election, our old friend David Gauke made a lot of noise about stopping the limitless tax deductibility of interest payments, that had been used by Boots (the chemist) to slash its tax bill. Six months after the election, when he was in a position to do something about it, he was telling everybody the rules would not be altered because business considered them a competitive advantage.

The Coalition brought in tax exemptions for companies’ tax haven branches and for profits parked in tax haven subsidiary companies. Meanwhile, tax breaks for the cost of funding these offshore set-ups, from the UK, are also provided.

Corporation Tax will drop to 21 per cent by 2014, even though there is no evidence that cutting the rate will make the UK any more competitive in world business.

The Treasury’s mission is now to adjust the framework of tax laws to suit big business. The ‘Big Four’ accountancy firms are now well-entrenched in writing our tax laws for us – and they run the most popular tax avoidance schemes. Consultations have descended into a process of agreeing laws demanded by big businesses.

There are clear and irrefutable arguments that reversing these legislative idiocies and closing every other tax avoidance loophole will do far more for the economy than flogging the unemployed to death, looking for jobs that don’t exist.

But I don’t think former Bank of England economist Rachel Reeves will be interested in that. In 1975, an appalled taxpayer wrote to then-Chancellor Denis Healey, complaining that an employee of the Bank (which is supposed to work on preventing tax avoidance) had been giving advice on how to avoid tax. “I wonder if this is really part of the Bank of England’s duties,” the correspondent wrote.

The behaviour of Ms Reeves, the former Shadow Chief Secretary to the Treasury, suggests that she believes it is.

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