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Lib Dems “promotion” of British business is a joke

By Editor
October 24th, 2012 at 8:23 pm | 2 Comments | Posted in Liberal Democrats, Policy

One of our readers forwarded an email they received from Lorely Burt MP today. It reads

 Dear             ,

 The Liberal Democrats are a party of business. Tonight Nick Clegg is giving a speech to a group of business leaders, to highlight just that.

 Nick will say that the Liberal Democrats are determined to put the private sector at the heart of a strong, rebalanced economy.

 As a former entrepreneur myself, this rings true with me – because since coming into Government, our party has been promoting British business in lots of ways:

  •  giving shareholders new powers
  • pushing employee ownership
  • taking action to open up more boardrooms to more women

Good grief. If the party big-wigs really think that any of the above measures have helped “promote” British business, then we are in serious, serious trouble.  We hope Nick’s speechwriters are more in tune with what business actually wants (rather than forced upon them) than this email seems to suggest.

Laughingly the email invites business people to answer a survey “Listening to Business”. Having read the above email and been reminded of the new regulations that the Liberal Democrats have played a significant hand in forcing upon business it seems unlikely that many will actually feel minded to complete the survey.

So to let you know, the survey consists of asking the following: name, email, phone number, address, business sector, turnover  – oh plus one question “If there were one thing the Government could do the help your Business, what would it be“.

How about delivering on the coalition promises of 2010? A “bonfire of red tape”; Removing existing regulation that unnecessarily impedes growth;  Introducing new regulation only as a last resort; Reducing the overall volume of new regulation; Improving the quality of the design of new regulation; Reducing the regulatory cost to business and civil society groups;  Moving to a risk-based enforcement regime where inspections are minimised etc

So far the Lib Dem’s promotion of UK business has been lamentable. Nothing here suggests it is going to get any better, any time soon.

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Clegg’s solution to complex tax code: another tax!

By Angela Harbutt
March 10th, 2012 at 12:51 pm | 1 Comment | Posted in Liberal Democrats

A rather depressing Telegraph online headline today reads “Nick Clegg goes after the ultra-rich” . Nick Clegg  has apparently recently “uncovered evidencethat our tax code is too complex and that complexity is benefiting tax-lawyers and the super-rich.

The Deputy Prime Minister says he has uncovered evidence that hundreds of millionaires are paying a tax rate of less than 20 per cent on their earnings by using an “army of lawyers and accountants……. A wide array of tax loopholes and reliefs are exploited by the wealthy to reduce their tax bills, leading to them paying overall rates on annual earnings beneath those faced by ordinary workers, he said.

“Uncovered” really? Good grief – where has he been for that last couple of years ? Here is an article from Mr Littlewood (formerly of this parish) now of the Insititute of Economic Affairs back in Autumn 2010.

Early this year, an IEA research paper showed that with over 8,000 pages of primary legislation – in very rough terms about six times the length of War and Peace – Britain has the longest tax code in the world. For those inclined to believe that other Western European countries are always more bureaucratic than Britain, it was worth noting that the German and French tax codes weigh at a comparatively modest 1,700 and 1,300 pages respectively” Mark Littlewood: Telegraph 8 September 2010

Then again one year later Littlewood said it again …

The Tax Commission research points to the incredible length and complexity of our tax rules as the principal culprit. Tooley’s corporation tax guide, for example, has nearly trebled in length in the last decade. It now has a word count not dissimilar to the complete works of Shakespeare. The TPA amusingly illustrates the farcical scale of our tax code by showing that one of the fastest readers on the face of the Earth would take five days to read it out loud.  Goodness knows how long it takes to understand it“. Mark Littlewood: IEA blog 16th August 2011

Er.. And again a month later…

“The UK’s tax rules are now so complicated and lengthy that British businesses spend around £20bn a year simply trying to comply with the rules . Not handing over a single penny in tax, just filling in paperwork and attempting to calculate their liabilities. That’s an overall cost of around £300 for every man, woman and child in this country every year.

Things are getting worse, not better. When a country’s tax rule book is five times longer than the complete works of Shakespeare – and growing – you can only expect this kind of ludicrous waste and inefficiency. If the laws of association football were this long and confusing, you’d probably need hundreds of referees at every game and it’s doubtful the sport would be viable at allMark Littlewood: Mail On Line: 29th September 2011

Littlewood’s answer to the problem – simplify the tax code by employing best practice from other countries. That (according to Professor Philip Booth (IEA)) would save about £5billion in regulatory costs but also disproportionately assist small businesses being crippled by the burden. It would, of course, also eliminate a lot of the highly complex loopholes much beloved of the rich.

Clegg’s answer to the problem – introduce another tax!  If it was April the 1st I would be laughing. It isn’t and I am not.

Any chance that Clegg’s bizarre approach to this (much-publicised) problem is connected to a certain event being held in Gateshead this weekend?

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