Making the recession fairer

fairness-calculatorthumb.jpgAs we enter what could be a long and deep recession, it is more important than ever that fairness sits at the heart of the government's agenda. In the current issue of the Fabian Review , we publish four proposals for a fairer recession.

We've asked MP's, policy experts, campaigners and Fabian members to contribute more ideas which we will be publishing online, and so here you can read articles by the likes of David Blunkett, Ian Gibson, Dave Prentis and Patrick Diamond amongst others.

Visit next left for video of ideas being pitched at our New Year Conference 'Dragon's Den'. 

 

 


David Blunkett MP
: a key issue facing millions of the lowest paid and those most affected by the recession is: 'can I afford the unaffordable credit I am living on?' That is why we should put together a consortium at city or regional level to draw in private funds and with credit unions, the Post Office and, where appropriate, the banks and wider private sector, to join with voluntary and not for profit organisations in providing affordable credit, usable accounts, advice and information.

Read David Blunkett’s full article


Dave Prentis, Unison: protect and support the work of welfare and housing advisors, community and social workers, and other public service workers helping individuals and communities through difficult times. Public spending on public services should not be the first item to cut in a recession – it’s the frontline of our defence, minimising the damage to our economy and our society.

Tessa Jowell MP: Building on the lessons of the Olympics’ Personal Best programme, which is aimed at disadvantaged young people, we should instigate a pre-employment programme tied to the build-up to the Olympics over the next four years.

Read Tessa Jowell’s full article


Stephen Beer, Chair Vauxhall Labour Party: we are about to learn afresh that the main political challenge in a recession is high unemployment, with negative implications for equality and social cohesion.  Rather than simply gamble that more tax cuts will help to prevent a Conservative-style recession, the Government must become ‘employer of last resort’, both directly and through new incentive schemes benefiting workers, businesses, and the third sector.

Read Stephen Beer's full article

Gisela Stuart MP: first and foremost we need to put more cash into the pockets of those on low incomes and pensioners. The quickest, fairest and uncomplicated way to do this is to increase significantly personal allowances - thus taking people out of having to pay any tax at all.

Read Gisela Stuart's full article

Howard Stoate MP: we should have an earmarked grant to local authorities for use on maintaining or improving the urban landscape and a one off facilities improvement to front-line NHS facilities of as little as £10,000 could make a significant difference to the patient experience and their overall impression of the NHS.

Read Howard Stoate’s full article

Patrick Diamond, Equality and Human Rights Commission: place a duty on all public authorities to use their powers and resources to tackle socio-economic inequality in the forthcoming Equality Bill – helping to ensure a balanced, vigorous approach across the country.

Read Patrick Diamond’s full article

Michael Meacher MP: Britain would be made a lot fairer in the recession if the next Budget in March paid for the PBR tax cuts to the lower-paid by introducing a number of simple measures: making the biggest industrial polluters pay by auction for their carbon permits, which could raise £20-30bn a year; aggressively attacking the current £25bn a year haemorrhage from UK tax avoidance and evasion; co-operating with the EU and the new Obama Administration to close down at least the most flagrant tax havens; phasing out the £8bn a year now granted to the richest 2.1 per cent of the population paid more than £100,000 a year; aligning capital gains tax rates (18 per cent) for the wealthy with income tax rates (40 per cent) to stop private equity partners and many others paying less tax than their cleaning ladies; and bringing in a Tobin tax (preferably with EU partners and the US, but if necessary unilaterally) at a low rate of 0.015 per cent on currency transactions which could nevertheless raise £10bn a year.

Andy Harrop, Age Concern England: index link increases increases in the minumum wage to rises in top pay.

Read Andy Harrop's full article  

Katherine Rake, Fawcett Society: more than 40 years after the equal pay act, the pay gap remains stubbornly large and short-changes women from all backgrounds. Currently we provide protection to women only when they have experienced discrimination. We need to turn this around and prevent unequal pay happening in the first place; compulsory equal pay audits would require all organisations – public and private, large and small – to check their pay systems and root out unlawful discrimination.

Steve Haines, Save the Children
: the Government needs to invest in the incomes of the poorest. Putting more money in the pockets of the poorest families means money is spent on the necessities. This is good for families living with tough choices between putting the heating on over the winter and putting food on their children's plate, good for equality and good for the economy. We also need seasonal grants at key times of the year for families living in poverty, to take account of the extra burden placed on families during the school summer holidays or at Christmas.
 
Adam Lent, TUC
: the Government should: raise statutory redundancy pay; raise the tax free element of statutory redundancy pay; introduce a moratorium on repossessions during the recession; raise job seekers allowance; and introduce a minimum tax rate for those earning over £100,000 to fund tax cuts for low paid and higher spending on benefits.

David Taylor MP:
I would align the personal tax allowance with the income of a full-time person on national minimum wage - with corresponding increases higher up the spectrum. Also, we should re-mutualise the failed former building societies, who have had to be rescued by the taxpayer and create a national credit union to be run through post offices. 

Stewart Wallis, the new economics foundation
: firstly, introduce a maximum pay differential, or maximum wage. More than 100 years ago business guru JP Morgan said that a differential of 10 between highest paid and lowest in a firm was enough to create motivation. Having introduced a minimum wage, the Government should now tackle income inequality from the other end and implement a maximum wage. Secondly, introduce a moratorium on crash-related home evictions. While the banks, which are at fault, have been bailed out to a previously unimaginable degree by the tax payer, thousands of hard-working home owners face the daily insecurity of potential eviction as the recession makes it harder to meet repayments. This is deeply unjust, destabilising and imposes a huge burden on society. Royal Banks of Scotland’s December announcement of six months breathing space for homeowners who fall behind with payments is welcome, but goes nowhere near far enough. Eviction must be stopped and in their place should be put long-term plans for restructuring householders’ mortgage debts.

Rob Marris MP
: abolish the Higher Rate Income Tax relief on pension contributions, restricting it to relief at the Standard Rate of Income Tax.  This would save the government over £5 billion a year in unnecessary and unfair tax breaks.

Ian Gibson MP: we need a windfall tax on Premiership Clubs.

Read Ian Gibson’s full article

Peter Hain MP: change building regulations to make mandatory designed-in micro-generation for energy self-sufficiency in all new buildings from homes to hospitals.






 
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