Liberal View - newsletter commenting on national and local news, December 2008, Tim Starkey, parliamentary candidate for Chesham and Amersham

Written by Tim Starkey, parliamentary candidate for Chesham and Amersham on Wed 10th Dec 2008

Tim Starkey, parliamentary candidate for Chesham and Amersham

Pre-Budget Report: a missed opportunity

× VAT cuts - not helping the most vulnerable

The big, headline grabbing, story of the Pre-Budget Report was the cut in VAT. But who does this really help? Food, children's clothes, childcare, public transport are exempt from VAT anyway, so this move will do nothing to help those struggling to keep their heads above water. You'll get 50p off a £25 restaurant bill, but no reduction in prices at the supermarket. The experts' verdict is that it won't do much to kick-start the economy, but will leave a £12.4 billion black hole in the government finances.

× Income tax - gesture politics

The increase in the top rate to 45% is more about gesture politics than a serious attempt to increase revenue: it will raise just £670 million. The real target should be to close down loopholes that can allow the mega-rich to get away with paying less tax than their cleaners.

× NI hike - hitting everyone earning over £19,000

Typical Labour, give with one hand take with the other!

Lib Dems call for:

 A Cut in the Basic Rate of Income Tax from 20% to 16%

Giving real help to families on middle and lower incomes is not only fair, it makes economic sense too, as boosting the income of the less well off is likely to do most to boost spending in the shops.

This plan is fully costed through green taxes and legislating against tax avoidance schemes that benefit the rich.

 Cutting £20 billion of Wasteful Government Spending

Government wastes breathtaking amounts of our money. To give a few examples: The ID card scheme is currently priced at £6 bn (bound to spiral upwards), the IT system for the NHS is expected to overspend by around £10 bn, each year £2.7 bn is lost through benefit fraud and error and on and on…Needless, inefficient expenditure must be slashed.

County Elections: a chance to demand value for money

Bucks residents have been alarmed by the current loss of £5 million of YOUR MONEY in Icelandic banks. Financial advisers had been warning that the Icelandic banking system was dodgy for months. Many councils took notice and moved their money - Bucks didn't and we have all lost out.

But the waste doesn't stop there - excessive increases in councillors pay, £190 000 a year to produce the Buckinghamshire Times, £3000 for new (and less visible) place name signs for Great Missenden and Prestwood. Next year's elections will be a chance to demand the council starts delivering value for money.

Vince Cable: a man who knows what he is talking about!

One reason why Vince is so trusted is that he really knows his stuff. He predicted the credit crunch, saw the need to nationalise Northern Rock, called for income tax cuts and interest rate reductions long, long before anyone else. This foresight is built on experience. Before his election as an MP he was the Chief Economist for Shell. As Shadow Chancellor his judgment has consistently proved better than that of either Alistair Darling or George Osbourne!

Queen's Speech: chance lost to get big money out of politics

Nick Clegg repeatedly called on the government to use this week's Queen's Speech to fix not just our economic system but our "broken politics" too. One measure that was desperately needed was a £25,000 cap on political donations. This would have brought an end to big money politics and the "cash for peerages" scandals that have sullied public life. Political parties would no longer have been able to rely on trade unions and big business for their cash.

One of Obama's great achievements is that over half of the campaign money he raised came from individuals donating less than $100 each. The stranglehold of big finance on U.S. elections was broken. Our challenge is to renew our politics too.