Squeeze the poor
If the surplus in the National Insurance Fund continues to grow at its present rate, there will enough to rescue a future Northern Rock in 2013.
This afternoon’s debate on benefits in the Commons was a chance to raise the unknown scandal of the amazing growing N.I. fund. There was un-needed surplus in 97 of 0.5 billion. By the end of next year the surplus will be £57 billion. Actuaries say that the surplus should be enough to protect two months spending. £57 billion is enough for 10 months. In 2013 it will be £115billion – enough for 16 months.
Why accumulate cash that could be used for its proper purpose to boost pensions? Previously the Government have told me in a letter ‘If the surplus was used to increase benefits, the Government would need to raise the equivalent through other means such as raising taxes.’
So that’s it, the N.I. fund is being used for the secret purpose of raising taxes. Very few know that. It’s the most unjust way to raise tax. The rich do not pay their fair share. Those earning over £670 a week pay only 1% in N.I. The standard employee’s contribution is 11%. Those of us who are fortunate enough to work after pension age pay 0%.
The Minister Mick O’Brien, who answered the debate, was helpful on other matters that I raised, but failed to recognise the damage of this wholly unjust tax by stealth. If he is not careful, more people might to get hear about it. They’ll be very angry.
No ‘Da-Marty Code’
The splendid brave MP Dick Marty was cruelly mocked when he accused the only world superpower of the
extraordinary rendition of prisoners into torture.
His fine report was compared to the Da Vinci Code and described as the ‘Da-Marty code.’ He did not buckle and persisted with his claims in spite of the repeated claims from many countries that he was mistaken.
A statement by Foreign Secretary Milliband this afternoon was a mea culpa for the dozens of past denials. It had happened and we appear to have been complicit. My friend Dick is entitled to feel proud of himself today. I greatly appreciate the great support he gave to me when I had a challenging drugs report to get through an international forum.
Heckler supreme
Chris Ruane is the Commons most persistent heckler. The flow of interjections, wise cracks and verbal hand grenades is relentless. Some put it down to a rare form of parliamentary Tourettes. Today he was acclaimed for a worthy injection when LibDem Roger Williams suggested setting a regulator for supermarkets.
‘OffTrolley’, Chris helpfully suggested
Hard Lord: Soft Lord
The select committee quizzed Lord McLennan and Lord Mayhew today. Mayhew said that MacClennan was ‘harder and more austere.’ They run the committee that gives permission for former ministers and civil servants to take jobs with outside bodies.
There is a worry that former office holders are hawking their experience and access to Government to win huge wages for their retirement jobs. That’s damaging enough. What is worse is that decision taken by ministers and civil servants may be influenced by the expectation of a future job offer.
One civil servant involved in choosing a company for a £2billion contact was working for the company two years later. Who know whether his judgement was influenced?
The present power of the Lords Committee is insufficient. It's little deterrent to ban some one working a particular company for a year or two. All Ministers and Civil Servants should be barred from future employment in their area of work for life. That would help to rebuild trust and strengthen the prized civil service ethic.
This is nonsense, valleylad.
The reason your council tax has increased beyond inflation is because of 'gearing'. Most of the tax is paid out of the national coffers. increasingly the burden is being transfered to councils. Wales has lower council taxes than England. Newport has one of the lowest in Wales and has been commended for its efficiency.
Pensioners income has gone up under Labour and was reduced in 17 years of the 18 years the Tories ruled. Under them there was no £200 winter fuel allowance, Pension Credit or free TV licences for the 75 year old. Not perfect - but a lot better.
See my speech on Thursday on the Hansard. The link should have been restored and we should not have to wait until 2012.
Posted by: paulflynn | February 23, 2008 at 11:47 PM
The record of this govt on pensions is a good one? Why do we need the MIG? Why hasn't the link to earnings be restored yet?
Why has council tax increased so dramatically (mine for example 182% since 2002) inflation?
incompetent council (obviously - this is Wales) or to keep income tax down?
The fairest taxes are regressive income taxes. This govt wants to keep these low to pacify daily wail readers. In order to fund projects they've needed to increase income and have done so in underhand ways. How about a 100K plus band? how about a meaningful difference between standard and higher rate income tax? When it comes to income tax the record of this govt is cowardly.
Posted by: valleylad | February 23, 2008 at 09:20 PM
Can't have that Valleylad. The record of the Labour Government on benefits and pensions is a very good one.
You might think it curious that I am the only MP complaining about the excessive surpluses in the N.I. fund. The debate is on line and no opposition MP made points of much substance.
I will blog some more soon on the swift moves from Ministers and Civil servants to consultants. The Sunday Times are talking taking up the story this week.
Posted by: paulflynn | February 22, 2008 at 07:37 PM
Two comments:
TAX/N.I. We've got a govt that has been consistently dishonest about taxation and made it more regressive by allowing council tax to inflate massively, increasing N.I. and fiddling in any way other than the fairest. The difference between higher rate and standard tax rates factoring in N.I is what, about 6% - it's obscene.
Ministers & Jobs: Simple solution take their govt. service out of their CV and review what they have to offer the company. Does anyone think blunkett's value to a genetic testing firm was anything other than as a former home secretary ( or customer :) )?
Posted by: valleylad | February 22, 2008 at 02:36 PM