SPENDING
Labour plans to increase government spending from £518.6 billion in 2005-06 to £634.0 billion in 2009-10.
The Conservatives have also promised to increase spending, but not by so much. Their spending would rise from £520.5 billion in 2005-06 to £612.3 billion in 2009-10.
Labour has claimed that the Tories would cut £35 billion from public services. This assertion is based upon a promise by the Conservatives that they would keep spending an ever decreasing proportion of GDP than they expect Labour to.
The Tories claim this would save a notional £35 billion a year by 2011-12 - which is beyond the next Parliament.
The Liberal Democrats would increase public spending by £5 billion a year, using it to abolish tuition and top up fees, give free personal care to the elderly, and cushion the blow of a local income tax.
Con/Lab policy difference: 2
TAX
Labour froze most personal taxes in the Budget, simply raising income tax allowances in line with inflation. The Chancellor also pledged to increase the inheritance tax threshold from £260,000 to £300,000 by 2010.
The Conservatives have promised £4 billion in tax cuts, £1.3 billion of which is already allocated to pensioners’ council tax. Further announcements of Tory tax cuts, among them to income tax and NI thresholds, are expected before the poll.
The Liberal Democrats would introduce a new 50p income tax rate for earnings over £100,000, to raise £5 billion a year.
Con/Lab policy difference: 2
COUNCIL TAX
Labour has tried to defuse the row over council tax by giving pensioners a £200 refund this autumn to pay for soaring bills. Council tax rises this coming year are expected to be only 4 per cent following two years of big increases. But homeowners will be stung again in 2007 when properties are revalued. The Government’s longer term plans on local government finance await a report from Michael Lyons this autumn, but a property tax is likely to be retained - probably with higher bands.
The Conservatives have promised to halve council tax bills for pensioners over 65 up to a maximum of £500 and to adjust revaluations in different geographical areas without using higher bands.
The Liberal Democrats have come up with the most radical idea of scrapping council tax altogether and replacing it with a local income tax. They would also cancel house revaluation and relocalise business rates.
Con/Lab policy difference: 1
PENSIONS
Conservative and Liberal Democrat policies on state pensions differ markedly from the Government’s. Labour remains committed to targeting help to poor pensioners with means-tested pension credits and indexing the basic state pension mainly to inflation. In real terms it has gone up just 7 per cent since 1997.
Conservatives want to restore the link to earnings, giving a single pensioner an extra £7 a week and a couple £11. They say they would pay for this by scrapping the New Deal to get people into work. They have dropped the idea of ending winter fuel payments and the pensions credit.
The Liberal Democrats’ plan to raise the basic pension to the means-tested minimum, currently £109.45 per week, and base entitlement on citizenship, not contributions. The Citizen's pension would be earnings linked and introduced for those over 75 in the first full year of Parliament and possibly extended to all pensioners later.
Con/Lab policy difference: 4
HEALTH
Labour and the Conservatives both major on choice, with Labour promising, from April 2006, choice for elective operations from about 50 providers, public and private, under the NHS brand and free at the point of use. It also promises faster treatment and fewer targets, with patients waiting no longer than 18 weeks from GP referral to hospital treatment by 2008.
The Conservatives have offered to abolish all targets, "free" all hospitals to become foundation trusts, and pay half the NHS cost for any patient who chooses to go private for an operation.
The Tories also promise to restore NHS dentistry, clean up dirty hospitals and cut bureaucracy, while the Liberal Democrats focus on quicker diagnosis, an end to charging for personal care, fighting superbugs, cutting charges for eye and dental checks, and greater emphasis on prevention.
Con/Lab policy difference: 2
LAW AND ORDER
Everybody promises extra police: the Liberal Democrats 10,000, Labour 19,000 more community support officers by 2008, the Tories 40,000 extra police by 2013.
The Conservatives want directly elected police commissioners who would appoint chief constables. They would scrap Labour’s early release/ home detention scheme, impose a mandatory three year jail term for third time burglars and seven years for third time drug dealers, and promise 20,000 new prison places. They would also introduce a legal presumption that householders may use violence to defend themselves.
Labour promises to ban the sale of knives to under 18s, impose drug testing on arrest in the 100 worst crime spots, introduce fixed penalty notices for under 16s, and make parents of children under 10 pay compensation for damage caused by their kids. People convicted for drunken violence on three occasions would be banned from city centres and local residents will get the power to call meetings with police over antisocial behaviour. They will also introduce a national ID card scheme, which the Tories support in principle and the Lib Dems oppose.
The Lib Dems want new UK border police, a new police force to fight national, international and white collar crime. They back acceptable behaviour contracts and parental control agreements to tackle youth offending, and would order non violent offenders to pay back victims and communities. They also promise compulsory courses in basic literacy, numeracy and communications skills for all prisoners.
Con/Lab policy difference: 3
TRANSPORT
Speed cameras will be one of the few transport issues to be raised in the election campaign. The Conservatives have promised a review of all 6,000 cameras and have said they will remove any which have failed to reduce road casualties. The Tories also offer several other concessions to the motorist, including raising the motorway speed limit to 80mph, banning councils from installing more road humps and accelerating the road-building programme. The Liberal Democrats have promised to block the construction of new runways at Stansted and Heathrow. On the railways, there is little to divide the parties. All of them believe Network Rail, the public interest company, should be left in control of the network. The Tories want to give greater powers to the train companies. The Liberal Democrats have promised to award longer rail franchises to encourage the companies to invest.
Con/Lab difference: 1
BUSINESS AND REGULATION
Labour has promised to ease the burden on regulation by cutting the number of government inspectorates from 35 to nine, and to look at the Dutch model of regulation whereby one old regulation is abandoned for each new one introduced. The Budget froze business taxation.
Labour will scale down the Department of Trade and Industry from 10,000 employees to 4,000 by 2008 and cut its budget from £5.6 billion to £3.3 billion. It wants to highlight innovation and for the DTI to be known as the department for technology and innovation as much as trade and industry.
The Conservatives have pledged to streamline regulation and say that much of Labour’s budgetary pledges were similar to their own made in a policy document last December. They promise some further exemptions from regulation for small businesses and also say they would reduce the DTI to a staff of 4,000.
The Liberal Democrats would abolish the DTI although they would also create a department for consumer affairs and a minister for business. The party would also reform the business rates system with an allowance for small businesses and simplify the tax system, making a priority of helping small business.
Con/Lab policy difference: 1
HOUSING
Labour has helped first-time buyers by raising the threshold at which stamp duty is paid from £60,000 to £120,000. The Government has also tried to help key workers and low earners with cheap homes including £60,000 houses on public land.
After a tussle between John Prescott, the Deputy Prime Minister, and Alan Milburn, Labour election co-ordinator, the Government introduced "social homebuy" allowing housing association tenants to get equity shares in their homes.
The other two parties would more than match Labour’s pledge on stamp duty and their other housing policies are variations on the same theme of expanding affordable housing.
The Tories would consult on raising the stamp duty threshold up to £250,000, expand shared equity schemes and extend the right to buy scheme to housing association tenants.
The Liberal Democrats would raise the threshold to £150,000 and spend more on shared equity housing. They would build 100,000 "mutual homes" on public sector land within 12 months, bridging the gap between renting and buying.
Con/Lab policy difference: 1
WHITEHALL REFORM
The three main parties are competing over how many bureaucrats they can cull in the search for greater efficiency. Labour has accepted recommendations by Sir Peter Gershon to save £21.5 billion by cutting 84,000 civil servant posts by 2008 and streamlining services.
Sir John Birt is also said to be planning changes to the Cabinet Office, the Department for Trade and Industry and the Office of the Deputy Prime Minister.
David James, the troubleshooter, is coming up with similar plans for the Tories and has identified £35 billion in savings. The Tories would lose 235,000 civil servants and bureaucrats, scrap 168 public bodies, regional assemblies and the new Supreme Court and cut policy areas such as the New Deal.
The Liberal Democrats would abolish the DTI and replace the ODPM and Scottish Offices with the Department for the Nations and the Regions. They would cut ministerial teams by a third, implement savings identified by Sir Peter Gershon and relocate civil servants out of London where possible.
Con/Lab policy difference: 2
CONSTITUTION
Labour is committed to removal of the remaining 92 hereditary peers, a statutory appointments commission for new peers and codification of delaying and other powers of the Lords. But it is vague on the future composition of the House of Lords. It wants to see more mayors/executive leaders in major urban areas.
The Conservatives would seek cross-party consensus on reform of the Lords with a major elected element, but no reduction in its powers. They want to strengthen the accountability of the executive to Parliament and cut the number of special advisers by a quarter. Only English MPs would vote on issues just affecting England. They have also promsied to review and modify the Human Rights Act and end moves towards regional government in England.
The Liberal Democrats want to see a written constitution and bill of rights, and make powers such as the declaration of war and signing of treaties subject to parliamentary control. They would turn the House of Lords into a predominantly elected second chamber with representatives from nations and regions. They also promise elected regional government in England with taxation powers, and they support disestablishment of the Church of England.
Con/Lab policy difference: 4
EUROPE
As far as European policy is concerned, the two key issues are the euro and the new EU constitution. On both of these, the Conservative position is sharply differentiated from those of Labour and the Liberal Democrats. Under the Tories, Britain would not join the euro in any circumstances. Conservatives oppose the new EU constitution, and would hold a referendum on it soon after the general election, recommending that people vote "no".
Both Labour and the Lib Dems are in favour of Britain joining the euro, but Labour adds the proviso "when the economic conditions are right". The Lib Dems would "set out policies for achieving a sustainable entry into the euro" followed by a referendum. Labour and the Lib Dems both support the EU constitution and will campaign for a "yes" vote. If Labour won the election, a referendum would be held in 2006.
All three parties are in favour of reforming the EU's Common Agricultural Policy. The Tories want the EU to become more flexible, so that member states that want to pursue further integration can do so without other countries being forced to follow suit. They also propose repatratiating control over fisheries policy and to increase British control over overseas aid.
Con/Lab policy difference: 5
DEFENCE
A sensitive area given the Army’s continuing commitments in Iraq, Labour will press ahead with planned cuts to the armed forces, transforming them into light and medium-weight units that can be deployed at short notice.
The Conservatives would overturn the decision this plan involves to axe four infantry battalions and merge six Scottish regiments into a five-battalion super-regiment, and would reprieve three of the six ships Labour wants to scrap. The Lib Dems also promise to save the infantry battalions.
While Labour seeks efficiency savings of 2.5 per cent of the defence budget, or £2.8 billion, by 2007/8. the Tories claim they would spend £2.7 billion more on frontline defence than Labour in the same period.
Labour is also pledged to spend more on special forces, increase investment in new technologies and build two large aircraft carriers, while the Tories would update the Trident nuclear deterrent. The Lib Dems would cancel the third tranche of Eurofighters to help pay for a better welfare service for the Armed Forces, including improved accommodation, and introduce an independent complaints commission for the Services.
Con/Lab policy difference: 4
EDUCATION
Labour pledge to: expand free nursery education; make every secondary a specialist school; open 200 city academies; repair or rebuild every secondary and half of primaries over 15 years; provide "wraparound" childcare in schools from 8am to 6pm, give pupils "personalised" learning; encourage "parent power" in running schools.
The Conservatives pledge to: abolish university tuition fees; create a "right to choose" for parents to apply to any school, state or independent, up to a value of £5,500; fund 600,000 extra school places to increase parental choice; give heads control over expulsions; open "turnaround schools" for up to 24,000 unruly pupils; scrap government targets; toughen A levels.
The Liberal Democrats pledge to: scrap university tuition fees; limit primary school classes to a maximum of 25 pupils; rebuild and renovate all schools; replace GCSEs and A-levels with a new diploma; provide "individualised learning"; offer "wraparound" childcare in schools from 8am to 6pm.
Con/Lab policy difference: 3
COUNTRYSIDE
Potentially the most incendiary issue of the campaign is the ban on hunting with hounds, which the Conservatives have promised to repeal, Labour to enforce.
Labour also promises to boost the rural economy, protect village shops and rural post offices, offer more rural bus services, invest in flood defences, introduce a Marine Bill to improve marine protection, bring 95 per cent of all nationally important wildlife sites into favourable condition by 2010, improve access to coastal areas and press for further reform of the Common Agricultural Policy.
The Tories pledge to reform food labelling to give consumers clearer information about the country of origin, streamline the bureaucracy governing farming and encourage farmers’ co-operatives and local food chains. They want to see further CAP reform and more national and local control over agricultural policy.
They will issue culling licences to control badgers infected with TB and promise an inquiry into the origin of foot and mouth disease. Village halls and community facilities will be made a lottery funding priority.
The Lib Dems want the Office of Fair Trading to ensure fair prives for farmers and will press for futher reform of CAP and the Common Fisheries Policy.
Con/Lab policy difference: 4
ETHICS
Although Michael Howard has said he would support a fall in the time limit for abortion from 24 to 20 weeks - as would the John Reid, the Health Secretary, who backs an even lower limit - the Tories would allow a free vote on this and any other "moral issues" such as stem cell research. They have no plans to reverse Labour’s equalisation of gay rights.
The Lib Dems want a single equality act to outlaw discrimination on grounds of race, religion, sex, disability and sexual orientation.
Tony Blair’s view is that abortion is an issue of conscience that should be addressed through a Private Member’s Bill. There will be no Labour or Lib Dem pledges on the issue.
Labour is also committed to actively supporting an increased programme of stem cell research, which is backed by the Liberal Democrats.
Con/Lab policy difference: 1
NAUGHTINESS
Labour will push through the Gambling Bill, after the election if necessary, creating a Gambling Commission and a pilot scheme for Las Vegas-style casinos. Eight super-casinos with unlimited jackpot slots will open around 2010. Both opposition parties have largely swung behind the Bill, but would amend it to ensure British operators have greater access to the market.
Labour’s reform of pub licensing will be completed in November, when 24 hour drinking comes in. Both the Conservatives and Liberal Democrats want to delay the change indefinitely, until police and local authorities signal they are happy for it go ahead.
All the parties rejected proposals for a compulsory, upfront levy on pubs and clubs to pay for policing, and measures to stop "all you can drink for a fiver"-style promotions.
Labour want to ban smoking in all public places, with certain exemptions. The Tories want a voluntary scheme, while the Lib Dems would have a similar ban to Labour with no exemptions.
Con/Lab policy difference: 3
COMMUNITY PLANNING
Three issues are particularly upsetting local communities. On mobile phone masts, there is currently a voluntary agreement on where they are sited, with different types of approval needed for different sizes of mast and Labour has no plans to alter this. The Conservatives will require that all phone masts should require full planning permission.
On gypsies, Labour has already introduced the "temporary stop notice" for local authorities to prevent further building.
The Conservatives will create an offence of criminal trespass so travellers are arrested rather than leaving landowners to take civil action through the courts. The Tories will review the Human Rights Act, which is used by travellers to delay eviction. The Liberal Democrats have pledged better provision of travellers’ sites.
Labour are planning extra 200,000 homes in the South East, some on greenfield sites. Conservatives promise tighter green belt controls to give greater weight to local objections. The Lib Dems would remove VAT incentive to build on greenfield sites.
Con/Lab policy difference: 5
ASYLUM AND IMMIGRATION
Both Labour and the Conservatives are trying to "out-tough" each other. Labour is proposing an Australian-style points system for all non EU and EEA migrants with £2,000 on the spot fines for employers breaking the rules. Only skilled workers allowed to settle after five years, conditional on passing tests in English and UK life. Unskilled only remain for short periods.
Conservatives would give 12-month notice of withdrawal from the 1951 UN Convention on Refugees. They want an annual quota on immigration and a separate annual quota for asylum seekers. Asylum applications would no longer be considered in UK but in centres close to regions where the applicants come from. There would be an Australian-style points system for work permits.
The Liberal Democrats are proposing an EU common asylum policy, the creation of an Independent Asylum Agency to consider applications, fast track for well founded claims, and would allow asylum seekers to begin work two months after their application is made.
Con/Lab policy difference: 4
ENVIRONMENT
Labour has signed up to Kyoto and met its target for cutting greenhouse gas emissions. It has a 60 per cent target for cutting CO2 emissions by 2050.
The Tories want "better leadership" on Kyoto targets, while the Liberal Democrats would seek new global targets based on allocation by country.
Labour wants tax incentives for fuel efficient cars and are backing research into hydrogen powered vehicles. The Tories will vary taxes to make the greenest fuels cheaper. The Lib Dems have set a target of 20 per cent renewable electricity by 2020, Labour 10 per cent by 2010.
On household recycling, Labour want at least 25 per cent of household waste to be recycled or composted by 2005-06. The Tories will make fly-tipping an arrestable offence and the Liberal Democrats want 60 per cent household waste recycled in 7 years.
Labour have given the go-ahead for the commercial planting of GM crops, but the Conservatives and Lib Dems would reverse this. The Tories want to wait until science shows it would be safe, while the Lib Dems would hold off until they meet UK and European regulations and strict separation distances are drawn up.
Con/Lab policy difference: 2
IRAQ
Britain’s controversial role in the war in Iraq has been the single biggest foreign policy issue of Tony Blair’s second term and will play an important part in the upcoming election campaign.
Labour will try to play down the failure to find Saddam’s weapons of mass destruction (WMD), which was the basis for going to war. Instead, it will emphasise the benefits of removing a dictator and claim that the move is furthering the cause of democracy across the Middle East.
The Conservatives supported the war and back the government’s decision to keep British forces in Iraq as long as the country needs them. But they will try to exploit allegations that Prime Minister misled the public over WMD.
The Liberal Democrats opposed the war and want to pull British troops out. They will try to win over traditional Labour voters, particularly Muslims, by painting the Government as a slavish ally of President Bush.
Con/Lab policy difference: 2
LONG TERM CARE
Labour will keep means-testing for long term care, requiring older people with assets in excess of £20,000 to fund their own care. It promises more community-based services, including 3,000 new community matrons working with NHS patients who have long-term medical conditions such as arthritis or diabetes. Older people receiving social care services at home are to be offered cash so they can buy in their own care.
The Conservatives promise that if older people pay for the first three years of their own long term care, the state will pay for the remainder without any means-testing. Older people with assets of less than £20,000 will continue to receive free long-term care. Red tape will be cut for care homes.
The Liberal Democrats promise free long term care for all older people who have to go into residential home.
Con/Lab policy difference: 5
CHILDCARE
Labour will extend statutory maternity pay of £102 a week from six to nine months and allow fathers to take some of that leave. Parents of school-age children could have the same right to part-time or flexible work as families with infants. Labour plans a Children Centre in every community and school-based childcare on from 8am to 6pm, all year round.
The Conservatives promise to increase maternity pay for six months. Fathers may be allowed to take up to three months of the mother’s leave.
The Tories want to make childcare costs tax deductible. The childcare element of the working tax credit could be paid in cash to parents, to be spent as they choose - perhaps on family and friends. Fast-track training for grandparents to become registered childminders.
The Liberal Democrats promise £170 a week maternity pay for six months. They will create 3,500 Children’s Centres and extend pre- and after-school care to all schools and increase nursery provision.
Con/Lab policy difference: 2
