Peter Latham, author of Who stole the town hall?, argues that the Spring Budget highlighted the Conservative Party’s allegiance to the City of London, not the small businesses, entrepreneurs and self-employed they profess to support.
He says that, to resist Tory-driven austerity policies and save our public services, we need a resurgence of social democracy and a reformed tax system.
“The Chancellor’s decision not to increase self-employed national insurance contributions (NIC) by £2bn, in a U-turn following the Spring Budget on 8th March, showed that the Tory government is ‘imprisoned by a minority of its backbenchers and by the Daily Mail’ according to The Guardian, 16 March 2017.
Moreover, as Aditya Chakrabortty noted, the government’s policies ‘hit the just-about-managing harder than the rich’. For example, the 2016 red book lists reductions to taxes on big businesses worth £18bn over the next five years.
Conversely, Jeremy Corbyn’s devastating assault on the Chancellor’s provision of just £2bn over three years to cover the crisis in social care – just a third of what the Local Government Association calculates is necessary – was slated by the mainstream media for not mentioning the Tory manifesto: even though he attacked the decision to raise the NIC rate.
Many Tory MPs fight shy of acknowledging their party’s first priority to the City of London, preferring to pass themselves off as the voice of small businesses, entrepreneurs and the self-employed. Increasing Class 4 NICs for the self-employed stuck in their craw, leading many party members to inform Philip Hammond and Theresa May that they would not support it.