Broken Manifesto promises

by Appalled Landlord

7:16 AM, 11th March 2017
About 2 years ago

Broken Manifesto promises

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Broken Manifesto promises

The 2015 Conservative manifesto included the following pledge: “We will commit to no increases in VAT, National Insurance contributions or Income Tax”.  To see a copy click here

Not everyone read it at the time, but very few people could have avoided seeing David Cameron on television on 29 April 2015 pledging that there would be no increase in income tax: click here

The Guardian printed the related press release that morning: click here

It stated: “David Cameron will pledge to introduce a new law within the first 100 days of a Conservative government to prevent any rises in income tax, VAT or national insurance in the next parliament.” And “In a keynote speech, designed to be one of the highlights in a week of Tory campaigning on the economy, the prime minister will say on Wednesday: “This is the clearest choice on the economy for a generation. And beyond the plain facts, it also comes down to gut instinct. When you’re standing in the polling booth, ask yourself: on the things that matter in your life, who do you really trust?

“When it comes to your tax bill: do you trust the people who taxed you to the hilt when they were in power and still haven’t come clean about the taxes they want to increase next time round? Or do you trust the Conservatives, who have cut income taxes for 26 million people and who will cut your taxes again next time?””

These were excellent questions.

This week Philip Hammond broke the promise by announcing an increase in NI contributions for the self-employed.  This resulted in a media onslaught and several Tory MP’s spoke out against the breach of promise which would increase the NI deduction by 1% of someone’s income.  The Daily Telegraph’s deputy editor Allister Heath described the move as an unforced error.

However, there has been a deafening silence from MP’s over the first breach of promise – which was announced a mere 10 weeks after Cameron made it on TV.

In July 2015 George Osborne announced Clause/Section 24, restricting the deductibility of mortgage interest for landlords who bought properties in their own names.  This means that many will pay tax on a fictitious amount of profit with effect from April 2017, increasing their Income Tax.

The result of the NI increase for a self-employed person earning £50,000, according to Patrick Collinson’s video in the first article above, will be an increase of £500 a year, or 1%

Whereas Section 24 will more than triple the tax of one landlord that I know, and leave her without enough to live on, as described on page 12 of Dr Beck’s report: click here

She will not be entitled to any benefits though because of her fictitious income!

She will have to pay an extra 60% of her income in tax because her tax rate will go up to 83%. This increase will be 60 times as big as that resulting from the NI increase, but Tory MP’s have kept silent about that, despite the complaints they have received from taxpayers for the last 20 months.

Dr Beck’s report describes how, in order to be able to pay the extra tax and prevent bankruptcy, the landlords with the most properties have to increase the rents they charge, often for the first time in years.  As tenants on capped benefits cannot afford the increases, they are being evicted and made homeless. Councils have to put them in “temporary” accommodation at greater cost.

Homelessness is going to increase enormously due to the breach of promise that is Section 24. It will be an unforced disaster, not just in terms of the human misery of the extra homeless, but in the economic lunacy of paying more to accommodate them in hotels and B&B’s.

But where is the media uproar?  Where are the objections from Tory MP’s?

And where are the objections from Opposition MP’s for that matter?



Comments

Gromit

13:38 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Luke P" at "13/03/2017 - 13:34":

I did dangle the votes of 2m Landlords at the time, and they still didn't get their a**ses into gear to every give a reply.

But don't let that deter you, and I hope you have better luck than me. I have got to know the chairman of the local group so I haven't given up yet.

UKIP nee to stop the in-fighting and get some real policies together now that Brexit is happening, they have to move on from the one trick pony of old.

Luke P

13:40 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Barry Fitzpatrick" at "13/03/2017 - 13:38":

Oh, I agree completely. But even with the in-fighting (which must stop), they have got to be worth a punt over a spoiled ballot paper. Perhaps the shock of running the country could force their act together...though I can't see Nuttall as PM.

Gromit

13:44 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Luke P" at "13/03/2017 - 13:40":

I doubt they'll win an outright majority at the next General Election despite the Tories being hellbent on disaffecting their core supporters.

But they may well hold the balance of power in a coalition, or preferably on a grace & favour basis (otherwise they'll get sc***ed like the LibDems did by the Tories).

Luke P

13:49 PM, 13th March 2017
About 2 years ago

It's as though Labour have become the new Lib Dems, Conservatives are the new (old) New Labour and there's nobody standing for traditional conservative values. Balance of power would be a sensible outcome (or as sensible as one can expect under the circumstances).

Gromit

15:00 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "Luke P" at "13/03/2017 - 13:49":

I don't think you're far off the truth.

The issue with coalition/g&f is what policies get sidelined or are considered dispensable. Look what happened to the LibDems over tuition fees. We'd need to get PRS policy redlined.

Denise G

17:24 PM, 13th March 2017
About 2 years ago

I'd rather poke rusty nails into my eyes than vote Conservative or UKIP

Luke P

19:17 PM, 13th March 2017
About 2 years ago

Reply to the comment left by "D D" at "13/03/2017 - 17:24":

What alternative would you suggest, DD?

Darlington Landlord

22:01 PM, 13th March 2017
About 2 years ago

There's always tactical voting for the 2nd (or 3rd if you can't stomach it) local party to express our displeasure - ie anyone but this omnishambles

Appalled Landlord

13:41 PM, 15th March 2017
About 2 years ago

Tory MPs have forced the cancellation of the NIC increase, because it broke the Manifesto promise. Hammond wrote “It is very important to me and to the Prime Minister that we are compliant not just with the letter, but also the spirit, of the commitments that were made”.

If Theresa May and Philip Hammond are sincere about keeping to the letter and spirit of the Manifesto they must repeal S 24.

In doing so they will prevent further damage to the supply and price of rented accommodation, and they will reduce the damage to their Party’s credibility and electability that George Osborne caused through S 24 . It will be win-win for them.

MoodyMolls

14:43 PM, 15th March 2017
About 2 years ago

Yes they should scrap Section24 but the only reason they have done a Uturn on NI is pressure from the Tory MPS and these people seem to think its OK to tax landlords.
How can you allow one group a U turn and not another?when Section24 will be massive tax increases and homelessness
But if they thought they would get XXXX from this and now are looking elsewhere for the money I wonder what area they will target. It cant be another area that will upset the MPs so where ?
But they have shown their true colours and will tax us all to death if they can get away with it.
Oh for a decent party of opposition if we had that they would take a hiding.

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