Speed up tax changes, urges Clegg

25 January 2012 Last updated at 19:48 ET

Mr Clegg says voters want economic competence - and some compassion

Nick Clegg will say later that he wants the coalition government to go "further and faster" in raising the pay level at which people start paying income tax to £10,000 a year.

The deputy prime minister will argue that many families are at financial "boiling point" and need more relief.

The coalition has promised to raise the income tax threshold to £10,000 by the next election, set for 2015.

Labour said Mr Clegg had "a cheek preaching about fairness and tax".

The deputy PM's speech to the Resolution Foundation in London follows official figures showing the economy shrank by 0.2% in the final quarter of 2011.

It also comes ahead of the Budget on 21 March, increasing speculation that changes to tax thresholds could be announced.

Left vs right

Mr Clegg will aim to set out a distinctive Liberal Democrat fiscal position by highlighting differences with the party's Conservative coalition partners.

He will say that those on the right in politics place "less of an emphasis on using the tax system to create greater equality".

He will also attack Labour by saying the "traditional left" supports a "penal rate on the highest earners, simply because it makes them poorer".

At the last election, the Lib Dems pledged to raise the income tax threshold to £10,000 a year and the coalition agreed to implement this policy over the course of this Parliament.

The income tax threshold was raised by £1,000 to £7,475 in the 2010 Budget, and the government plans to increase it further to £8,105 this year.

But Mr Clegg is expected to say: "Today I want to make clear that I want the coalition to go further and faster in delivering the full £10,000 allowance, because the pressure on family finances is reaching boiling point.

"These families have seen their earnings in relative decline for a decade, compared to those at the top. That has accelerated since 2008, with lower real wages and fewer hours at work."

He will argue that the coalition has raised capital gains tax and reduced tax breaks on pension funds "for the very rich", while "clamping down" on tax avoiders to raise an extra £7bn a year.

'Fair tax cuts'

Mr Clegg will also reiterate his commitment to the coalition's aim of ending the UK's deficit, but will promise to do so "in a way that is fair".

"People look to the Liberal Democrats to keep this coalition anchored in the centre ground. They want economic competence, but they want compassion too.

"It is our job to make sure this government delivers both."

Owen Smith, Labour's shadow Exchequer secretary, said: "This is the man who campaigned against a rise in VAT and then introduced it just after he got elected. And his government's Autumn Statement took three times more from families with children than from the banks.

"For the last year Labour has been arguing for fair tax cuts, such as a temporary cut in VAT, to help hard-pressed families and pensioners and kickstart our stalled economy. And we want to see a tax on bank bonuses at the top to fund 100,000 jobs for young people.

"Now that the economy has gone into reverse, these measures should be part of a real plan for jobs and growth in the next Budget."

Continue Reading... Labels: changes, Clegg, Speed, urges

Labour urges rethink on welfare

11 January 2012 Last updated at 23:47 ET

Baroness Meacher: "These sort of defeats are unusual in the House of Lords"

The government is being urged by Labour to scrap its planned welfare changes after a series of defeats in the Lords.

Labour peers and independent cross benchers rejected proposals to means test the benefits of young disabled people and cancer patients.

Half of Liberal Democrat peers in the chamber did not support the coalition.

Shadow work and pensions secretary Liam Byrne said the coalition had been defeated for trying to "cross the basic line of British decency".

He urged ministers not to try to reinstate the measures in the Commons.

"For months Labour has been determined to stop this cruel attack on cancer patients in its tracks. And today the House of Lords agreed," he said.

"The government's proposal to cut paid for benefits for people still in chemotherapy crosses the basic test of fairness."

Peers voted by 260 to 216 to protect up to 15,000 young disabled people from cuts to employment support allowance (ESA), has replaced incapacity benefit.

They voted 234 to 186 for a two-year limit on claims, rather than the proposed one year, and by 222 to 166 to exempt cancer sufferers from a limit.

Critics said the plan had meant disabled children who could never work would never be entitled to the benefit.

As part of their drive to cut spending on welfare, the government wants to remove the so-called "youth provision" that allows some young people to receive contributory employment and support allowance (ESA) even though - due to disability or illness - they have not been able to work and build up National Insurance.

Welfare Minister Lord Freud said it was unfair for a young person to continue to get a contributory benefit without having "paid in" - even if they were to inherit a lot of money.

He estimated that 90% of those affected by the change would still get the income-related part of ESA.

The effect of increasing the time limit from one to two years would be £1.6bn over five years, he said.

He said the proposal to time-limit contributory ESA only applied to people in the "work-related activity group" and not those in the "support group" who were deemed incapable of work.

"We will always provide a safety net for those with limited income and people will still be able to claim income-related ESA."

He said that other benefits such as housing benefit and council tax benefit would be available.

In the second defeat on Wednesday evening, peers agreed a move to replace the one-year cap with the ability for the government to legislate for a limit of not less than two years.

"I am sympathetic to cutting the deficit, but I am highly sympathetic to sick and vulnerable people not being subjected to something that will make their lives even more miserable," said the crossbencher and eminent doctor Lord Patel, who introduced the amendment.

His second amendment removed the time limit on contributory ESA payments for people receiving treatment for cancer.

The defeats mean the measures will be removed for the time being from the government's flagship welfare reform bill pending a decision by ministers on how to respond.

The BBC's deputy political editor James Landale said that if the proposals were dropped entirely, the government would lose an estimated £2bn in savings.

The government also suffered a defeat last month over elements of their plans to overhaul housing benefit.

Despite these setbacks, ministers say they are determined to pass legislation that will increase incentives for people on benefits to work while protecting the most vulnerable and making welfare expenditure more sustainable.

"Our plans are about returning the welfare state to its original purpose of supporting those with the most need," a spokesman for the Department for Work and Pensions said.

"This means ensuring that taxpayer's money is spent on those who are too sick or disabled to work and those with the least money."

Continue Reading... Labels: Labour, rethink, urges, Welfare

Labour urges 'better capitalism'

7 January 2012 Last updated at 08:50 ET

 

Chuka Umunna called for the government to "foster better business practice" to create a "better capitalism"

Labour has called for "more responsible and better capitalism" and policies to tackle excessive executive pay.

Shadow business secretary Chuka Umunna said increasing transparency was the key to addressing high salaries.

His comments echoed those of Labour leader Ed Miliband who has challenged David Cameron to match Labour's pledges on the issue.

The coalition is expected to announce its policies on executive pay later this weekend.

In an interview with the Guardian, Mr Miliband said: "If one of the big battlegrounds of British politics is going to be who is really going to take action on executive pay, I say 'bring it on'. I promise you they are not going to steal a march on us in this area.

"Does anyone really believe that David Cameron came into politics to create a more responsible capitalism? The public are not going to buy it."

Mr Miliband's comments follow criticism that he does not have a credible economic plan.

Labour peer Lord Glasman said the party "show no signs of winning the economic argument" under Mr Miliband, in an interview with the New Statesman earlier this week.

Transparency

Labour's measures to tackle high executive pay include increasing transparency by simplifying remuneration packages.

Companies should also publish a pay ratio between the highest paid executive and the company median average - and the government could publish a league table highlighting the biggest pay gaps.

Accountability could be promoted by putting an obligation on investors and pension fund managers to disclose how they vote on remuneration packages.

Labour also wants a repeat of the bank bonus tax - to increase "fairness".

Mr Umunna said excessive executive pay was "symptomatic" of the "kind of capitalism that has grown up in this country over the last 30 years".

Explaining what he meant by "responsible capitalism" he said: "It's about looking at what we can do to foster better business practices, behaviour, successful business models that tackle unfairness, and the cost of living crisis at home, the problems we're finding domestically, and actually produce more competitiveness for British companies abroad."

"It's about saying the status quo that's existed is no longer serving businesses and people in society."

'Undermines trust'

Labour was not against people being rewarded for taking risks and creating jobs, he explained.

But there was a problem when pay awards appeared to "bear no relation to performance" - a situation that "undermines trust in the whole system", he said.

Labour said it accepted in full the recommendations of the High Pay Commission and urged ministers to do the same.

The commission was set up by pressure group Compass, with backing from the Joseph Rowntree Charitable Trust, to investigate boardroom pay.

Its year-long inquiry found that the pay of top executives at a number of FTSE companies had risen by more than 4,000% on average in the last 30 years - and said the disparity between what top executives and average workers earn has been building for many years.

Deputy Prime Minister Nick Clegg said in December the government would announce new plans to "get tough" on excessive boardroom pay in January and may legislate if necessary.

Continue Reading... Labels: 'better, capitalism', Labour, urges

Surgeon urges removal of implants

2 January 2012 Last updated at 11:02 ET

Tim Goodacre: "If it is 7% I would suggest there needs to be a programme set up... to begin to remove all intact implants"

A surgeon advising the government has called for the removal of all faulty breast implants, following a health scare in France.

Tim Goodacre, a member of a panel looking at products made by French firm PIP, said the reported risk of rupture was "quite out of the ordinary".

The government said the failure rate was 1%, but private clinic Transform believes it could be up to 7%.

"This is very much higher than anything we'd consider acceptable," he said.

Health Secretary Andrew Lansley ordered an inquiry - to which the panel will report - after private clinic Transform suggested the failure rate could be higher than previously thought.

He said that based on all available evidence, the government did not believe there was any cause for concern, but the Transform data needed assessment and evaluation.

Speaking on the BBC's The World at One, Mr Goodacre, who is president of the British Association of Plastic, Reconstructive and Aesthetic Surgeons (BAPRAS) said he did not think there was any risk of cancer as a result of the faulty implants, but he was still advising what he called removal on a "staged basis".

"If you believe a device is faulty in your car or any other object you buy you would want to have that replaced on a staged basis," he said.

"Good implants put in by reputable people have an extraordinarily low failure rate, so this is something quite out of the ordinary.

"These implants have been in for a while and there is no immediate cause for concern, there's no cancer risk, and even if implant gels have ruptured, there's no evidence to suggest that that in itself is of any major health detriment.

"But given the fact there is a degree of uncertainty and a lack of knowledge, we're recommending all implants come out."

Shadow health secretary Andy Burnham said that given the conflicting nature of the advice that was coming out, the government needed to issue clear guidelines to calm the fears of those affected by the issue.

"Where there is evidence of a rupture, private providers must arrange for urgent removal at no expense to the individual and with any costs to the NHS reimbursed," he said.

He also said all those affected must have access to their medical records as soon as possible, and they must be offered a free consultation with a doctor after the results of the government review were known.

Last week the French government recommended the precautionary removal of implants from 30,000 women, with the government covering the costs.

PIP went into administration in 2010 and its products are now banned, after it was discovered they had used non-medical-grade silicone believed to be made for mattresses, which had an increased likelihood of splitting.

'First responsibility'

Chief Medical Officer Professor Dame Sally Davies said she had written to GPs so they were aware of the views of patients who may want to discuss the matter with them.

"We currently have no evidence to make us think they should have the PIP breast implants removed," she continued.

"Because of this, and because removing these implants carries risk in itself, we are not advising routine removal of these implants."

Chairman of the Commons health select committee Stephen Dorrell said the cost of any possible implant removal should be recovered from those who had provided "sub-standard products" in the first place.

"The first responsibility here would rest on those who were engaged in care that hasn't met proper standards, so the first responsibility rests on them," he said.

"Having said that, clearly if there is a health issue involved then ultimately the NHS exists to provide health assurance for all patients in the UK."

PIP is believed to have sold over 300,000 implants in 65 countries over the last 12 years, with South America accounting for more than half the exports.

Western Europe was another major market, with Spain, Italy, Germany and Ukraine known to have imported the products, as well as the United Kingdom.

Continue Reading... Labels: implants, removal, Surgeon, urges

PM urges king to reform Bahrain

12 December 2011 Last updated at 13:29 ET

King Hamad said he had a "very good" meeting with Mr Cameron

Prime Minister David Cameron has urged Bahrain's king to implement concrete reforms, and has offered UK support.

An independent commission last month found that Bahraini police had used excessive force against anti-government protesters earlier this year.

Mr Cameron met King Hamad Al-Khalifa during talks at Downing Street, on the king's first visit to the UK since the clashes in which 40 people died.

King Hamad said he wanted UK advice on the reform of the police and judiciary.

The BBC's security correspondent Frank Gardner says King Hamad told him he had had a "very good meeting" with Mr Cameron.

The monarch said he had decided to invite all parties, including those in opposition, to post an adviser in his office to monitor the reconciliation and reform process.

Downing Street said Mr Cameron emphasised the "importance of strengthening respect for human rights" in Bahrain during his "useful" meeting with King Hamad.

"He urged the king to deliver swiftly on the commitments he has made to implement the recommendations from the inquiry and to drive forward reform and reconciliation in the country, engaging with the opposition as part of that process," a spokesperson said.

The king welcomed an offer by Mr Cameron to help with the reform process, and the leaders also discussed boosting trade co-operation and opportunities for British business to invest in Bahrain, the spokesperson said.

The Bahrain government's response to the Arab Spring demonstrations sparked international condemnation. At least 40 people died in the unrest.

But since last month's human rights report, King Hamad appears to have acted quickly on its recommendations, our correspondent says.

He sacked the hardline head of national security and set up a human rights watchdog.

Now he is looking to his old ally Britain for advice, support and investment, our correspondent adds.

Amnesty International UK said Bahrain's human rights record was "still heavily tarnished" and the Downing Street meeting was "an opportunity for the prime minister to make it clear that Bahrain still has lot to do to repair the damage of its crackdown on the protests this year".

Meanwhile, the leader of Bahrain's main opposition party said he was willing to sit down with King Hamad to discuss "serious political reform".

Sheikh Ali Salman, leader of the al-Wefaq party, told Frank Gardner he wanted to keep the monarchy.

Ties strained

He said that, unlike many in the opposition, he did not want an end to the ruling Al-Khalifa family, just a constitutional monarchy and democracy.

Ties between the UK and Bahrain have been strained, with the previous British ambassador denied access to ministers for being openly critical of Bahrain's treatment of protesters and for being seen as too close to the mainly Shia opposition.

A Foreign Office official said Britain was now keen to help Bahrain on the path to democratic reform.

On Friday, Bahraini riot police fired tear gas at protests in an attempt to stem fresh demonstrations to the east of the capital, Manama.

They were attempting to march from the village of Musalla to the Pearl Square roundabout, the focus of the protests earlier this year.

The Gulf kingdom's Shia majority has been demanding action to tackle economic hardship, the lack of political freedom and employment discrimination in favour of the ruling Sunni minority.

Continue Reading... Labels: Bahrain, reform, urges

Pope urges Africa reconciliation

19 November 2011 Last updated at 05:42 ET

The BBC's David Willey says the Pope wants to deliver the message that Africa is a "continent of hope"

Pope Benedict is to present plans by the Roman Catholic church to encourage reconciliation in Africa, on the second day of his visit to the state of Benin.

The Pope will travel to the city of Ouidah, the symbolic heartland of Voodoo, where he is expected to call for respect for traditional beliefs but issue a warning against witchcraft.

Ouidah is home to one of the largest Catholic cathedrals in West Africa.

Large crowds are expected to greet the Pontiff in the city.

His first public engagement was at the presidential palace in the capital, Cotonou.

In front of an audience of politicians, diplomats and church leaders, he issued an appeal to Africa's leaders.

"Do not deprive your peoples of hope. Do not cut them off from their future," he said.

The Church's reconciliation plans are contained in a formal apostolic exhortation entitled The Pledge for Africa (Africae Munus in Latin), which the Pope will sign in Ouidah.

The document was drawn up two years ago at a meeting in Rome by Catholic bishops from all over Africa.

It is intended to encourage reconciliation, peace and justice.

Pope Benedict is expected to call for elements of traditional cultures and religions to be recognised, if they are compatible with church teaching.

However, he will warn people to reject magic and witchcraft, which the Church condemns for what it believes is their negative effect on families and society.

'Useless nationalism'

On the first day of his visit the pontiff spoke of avoiding "exacerbated and useless nationalism or tribalism" which he said could fuel deadly inter-religious tensions.

He also urged Africans to avoid the "unconditional surrender to the law of the market and finance".

"Modernity must not cause fear, but it cannot be built by forgetting the past," he said.

The Pope is likely to face questions about the Church's attitude to the use of condoms during his trip.

He caused controversy on a previous visit to Africa, in 2009, by saying that handing out condoms could speed up the spread of HIV.

The Pope's visit to Benin is expected to attract 10,000 visitors from neighbouring countries

Africa has the highest prevalence of the virus in the world and his comments angered AIDS campaigners.

Voodoo

One of the Voodoo leaders invited to meet the Pope, Dah Aligbonon, said he hoped the Pontiff would urge Roman Catholics to be more tolerant of Africa's traditional religions.

"I invite the Pope to tell his followers to stop acts of provocation against the Voodoo culture," the Reuters news agency quoted him as saying.

The cathedral in Ouidah was built on land which was originally a Voodoo "sacred bush" - where offerings are made to the gods.

It now overlooks a temple where the snake-god is worshipped.

Voodoo is widely practised in Benin, where it has none of the negative connotations often associated with it in Western countries.

Continue Reading... Labels: Africa, reconciliation, urges