Stephen Byers
The man, the films, those blondes. Free DVD collection starting this Sunday
The electoral clock is ticking for Gordon Brown. The next few months will be make or break time for the prime minister and his Labour government.
If Labour is to win the next election - and I believe it still can - it will have to do things differently. There will need to be a fundamental rethink about the policies that are being put before the public. It will not be enough to tinker around at the margins with a raft of well intentioned and worthy small-scale initiatives or projects. The scale of Labour’s difficulties are such that much more will be required.
The local election results of 10 days ago didn’t just reflect the disappointment and at times disillusionment that is part and parcel of being in government for more than a decade. The reasons for such a comprehensive rejection by the electorate went much deeper than this.
Voters saw Labour as being out of touch. No longer on their side, but distant and uncaring.
We have a mountain to climb if we are to win back the support of the public. So we have to make big changes. There will have to be boldness, and at times risks will need to be taken. Some will say that this is a panic response. We must explain that we are responding to changing circumstances internationally and domestically. Above all, the action taken must be part of a clear narrative about the aims and objectives of the government - something that has been badly lacking in recent months.
To win, Labour will need to reestablish the coalition that has delivered three election victories. This will mean demonstrating that, in addition to protecting the vulnerable and tackling injustice, it also understands, respects and rewards those who want to get on in life and are ambitious for themselves and their family.
Developing the fundamentally different approach that is essential will not be easy. For it to be successful it will mean confronting issues that have historically proved most difficult and divisive and in so doing resist the temptation to retreat into Labour's own comfort zone.
To show we mean business and that no area is off limits there is no better place to start than a reconsideration of how we raise our tax revenues.
I accept that this is dangerous and difficult territory. Big changes to our tax system can create a toxic political brew, with the losers shouting loudly and the gainers slipping quietly away to count their money in silence.
So there are clear risks in opening up this debate, but taxation is one of those touchstone issues that have the power to determine the way people vote. For a variety of reasons, Labour has got itself on the wrong side of the argument about both the overall burden of taxation and the means by which we tax people and business.
In the past year far too many decisions about tax have been taken to try to secure a tactical advantage. This has led to some damaging mistakes. Whether in relation to the changes to inheritance tax, capital gains tax, the treatment of nondoms or the abolition of the 10p income tax band, the whole approach has been about political positioning. What has been lacking is a strategic and principled view of how we should change our tax regime. What should be done?
Between now and September consideration should be given to tax reform and a public debate should be launched about priorities. In order to gain credibility with the electorate about the motives behind such a root and branch consideration, an immediate halt should be called to the introduction of planned tax changes pending the outcome of the debate. This would include the fuel duty increase planned for this autumn and next year’s changes to vehicle excise duty.
Any debate about a new tax regime will throw up a huge range of issues. I believe three are of particular importance.
First, the debate about the abolition of the 10p starter rate for income tax has highlighted the need for a fairer system. People want to see a more equal sharing of the burden. Even those who benefit from the recent changes feel unhappy about robbing the £8,000-a-year Peter to pay more to the £40,000-a-year Paul. An approach that raises personal allowances and takes more people out of paying tax altogether is the best way of helping the working poor.
Second, much more needs to be done to link tax revenues directly to those areas where the public wants to see its money spent. This will mean a significant increase in the amount of taxation that is hypothecated for a particular purpose.
Finally, changes need to be made to the relationship between the tax regime and the present system of benefits and credits.
If we are serious about making work pay then it has to be unacceptable that we now have nearly 2m people facing marginal deduction rates from household income of more than 60%. Many will be the working poor who will have been hit by the abolition of the 10p rate.
If they decide to work longer hours to make up for their lost income, they will receive only 40p in every £1 earned because as their income goes up benefits and credits are withdrawn. More needs to be done to simplify the benefits and tax credits system to reward hard work.
In September decisions about the shape and form of a new tax regime should be made. It needs to have broad, popular appeal because it is seen to be fair and reflects the needs and aspirations of the British people. It would have the potential to launch the Labour party to electoral success.
To be a party of government requires courage and conviction, not tactical manoeuvring and political positioning. Now is the time for the Labour party to demonstrate that the days of easy options and avoiding difficult decisions are over. That in order to put the interests of the British people first we are prepared to act now and do so decisively.
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This is open warfare from Byers - a blatant play for the leadership of the PLP. But what makes Byers think that he, a failed transport secretary, could be PM and run the country, is anbody's guess.
It is not a change in tactical tax structure we need, it is a change of governing party.
Edwin, Bucharest,
So what Stephen Byers is admitting is that after 10 years in power they have made a complete mess of the tax system and have to completely change it?
Tom Mein, Chorafakia, Crete
Oh good another relaunch how many will that be?
mitch, Wolverhampton, England
The only thing that can 'save' Labour is that the Tories and LibDems are just different brand names of the same policies, privatising profits and socialising debts. All three will pursue the policy of currency devaluation and hyperinflation, making everyone poorer, except the tax-exempt super-rich.
Paul, Coventry,
National Insurance is Income Tax. As Bevin said : "Look, there aint no fund". Any honest reform will be aimed at its progressive abolition. The present basic tax rate is 29% not 20%.
Eric Skelton, Cardiff, Wales
So a less well paid person who is single would lose about £2-300 a year. If they wish to eat or own a car, even an old one, their bills have risen by maybe 30% in the last few months with yet more to come. They will suffer more than any others no matter what happens.
Well done.........we have been.
Stuart Stanton, Wirral,
To Malcolm McLean of Bradford, yes you can, provided you don't bail out banks in politically sensitive constituencies to the tune of several tens of billions of taxpayers pounds.
Richard Tarr, Swansea, UK
Some sensible ideas Steven Byers. Does it mean that the Labour party only works best if we DON'T vote for them?
John Begoode, Welwyn Garden City,
Tax reform is urgently needed: simpler, much less burdensome. But discredited former ministers are no better placed to advise on this than the present incompetent, bossy cabinet. It will have to wait for a new government, with new ideas.
Ben Elford, Bristol, UK
You can't have a good NHS, generous social benefits, and a war at the same time as keeping taxation down. Labour can win if they point this out to the public. What will Cameron cut?
Malcolm McLean, Bradford, UK
What about fiscal drag, the failure to raise personal allowances in line with inflation, and the rises in NI contributions - a tax by another name.
He has succeeded in fooling most of the people for far too long, and finally, at last, the scales are dropping off the taxpayers eyes.
Glenn, wales,
Please do not waste time suggesting logocal, simple, ways to help the less fortunate out of the poverty trap. Gordon Brown just does not want to know. He drevised a tax and benefitt system of byzantine complexity that keeps a lot of potential NuLab voters in employment. Brown is Boss.
W D Toulman, WALKINGTON, UK
Leave us alone that what needs to be done.
This country is a nanny state constant meddling in everything, its stifling.
I fear a mistake on the road these days especially in London due to the volume of coloured lanes and signs telling me what i cant do, its barely possible to watch the road,.
Paul Anthony, reading, uk
A lot of common sense here, but GB always knows better and is incapable of listening - especially to Blairites. It is inconceivable that GB did not realise how doubling the 10p rate would affect 5.3m childless workers. He deliberately sacrificed them for his own short-term political advantage.
Melchet, Edinburgh, Scotland
The key to fairness in taxation is to ensure, first of all, fair and sensible government expenditure. This government rewards fecklessness and punishes those people who make best efforts to care for themselves. A complete revision in spending mode is required.
Jonathan Spencer, London, UK
More like Everest to climb !!!!
Ian Payne, WALSALL,
I'd bet a years wages GB will not listen to Stephen Byers or anyone else, he has proved he is an arrogant, condescending and sanctimonious tyrant. Leopards do not change their spots. RIP Labour.
Brian Roberts , Plymouth, Devon UK
Captain of Titanic to crew: I've found the secret of avoiding ice bergs, follow me.
Tom MacFarlane, Thornton, UK
Here's an idea for GB. In 1997 we voted for a Labour Government.We didn't get one, we got Thatcherism without even so much as a token attempt on Blair's part at disguise. How about GB giving us now, finally, after over a decade, a genuine Labour Government.
eric campbell, harrogate, uk
Why do politicians learn corporate as their second language?
Sue, Felpham,
Old Labour ( Gordon B ) supports in the main - people in receipt of benefts. Thus the oft repeated mantra "We have taken x million of the POOREST PEOPLE OUT OF POVERTY..." is actually saying we have increased benefits.
NOT ON BENEFITS?? WEll .. you stay poor
TRish Niblock, Edinburgh, Scotland UK
Some time mountains are not hard to claim, if you have luck of
the devil, i wonder if Gordon Brown have that luck????????
Cllr Ken Tiwari (Independent), Oxford , United Kingdom
Convictions for this government I suspect will have to wait until after the next general election when I suspect many of its members will acquire some.
Edward Green, Upminster,
Labour needs to change the taxing of essentials eg petrol, council tax etc. These taxes hit the working poor hard and are drive down their overall standard of living which in turn affects their childrens' life chances. Running a family car is essential but it's being taxed as a luxury.
Donna Walker, Effingham, England
The marginal rates of tax are often MUCH worse than 60%. If my income goes up £1,000 I will pay 20% on that, plus I will lose some childrens tax credits, plus my daughter loses £400 from her EMA, plus another daughter will lose some of her university grant.
Will, London, UK
The tax credit system (or lack of a system) needs to be scrapped altogether and replaced with a proper system that is not rife with fraudulent claims, totally relient on the honesty of claimants and heavily weighted in favour of single adult households with kids thus massive amounts of dishonesty.
N.Jones, Edinburgh, Lothian
I think Stephen Byers is misreading the situation when he says that the electorate has come to perceive Labour as having become distant and uncaring; it might be more accurate to say that it has come to perceive Labour as having become dictatorial, incompetent, and hostile to all levels of society.
Peter, Cambridge,
It's the 'Courage and conviction' bit that frightens me. NuLab has no qualms about oppressing the honest citizen with ever more restrictions. Like Gulliver's Lilliputian threads.
And seem hell-bent on continuing the formula.
Set my people free!
Tony Collins, Redruth, United Kingdom
This will never happen while Gordon Brown is PM.
NBeale, London, England
That would be a good start. What are the chances that GB will follow your advice?
Arlene, Westerham, UK