One huge problem that the Chancellor has is that virtually all his policies presume the UK to be one homogeneous economy. That Drumchapel, Easterhouse and the Gorbals are just like Hampstead, South Kensington and Mayfair. Which is patently stupid and ridiculous. True we have had regional development agencies, but they have just been cumbersome mechanics to waste taxpayer’s money. And whilst the Chancellor’s “Powerhouse of the North” is admirable in very many ways, the mechanisms to achieve it lack force.
So here is a way to use fiscal mechanics to achieve far better the policies of government and the effective management of the UK economy.
Firstly divide the country into, say, four zones based on business activity, wealth, unemployment and other economic criteria. Here, just for example, is the sort of thing I mean:
- Zone 1. Inside the M25.
- Zone 2. The South East including Oxford and Cambridge.
- Zone 3. Â The Midlands, Bristol, Manchester.
- Zone 4. The North. Scotland, Wales, Northern Ireland, Devon and Cornwall.
Now we can do all sorts of clever things. Wage inflation in London? Increase employers NIC in Zone 1. Unemployment not going down fast enough in the North, remove employers NIC in Zone 4. Wanting to boost manufacturing? Raise the CT threshold in Zone 3. Housing bubble? Add 50% to stamp duty in Zones 1 and 2. Mansion tax could be for Zone 1 only!
As you can probably see the permutations are infinite. And there are so many advantages:
- Every government fiscal action can be zonal. Both revenue collection and expenditure.
- It costs nearly nothing to implement.
- We can get rid of all the current, useless, public sector bodies for regional policy, saving billions.
- Necessary economic management changes can be made virtually instantly.
- It can be used to increase overall government revenue.
- It would make our society far fairer.
- The market would be allowed to work. Which always produces a better outcome.
- Our overall economy would become far more efficient as we managed it to make better use of the available resources. Everyone wins.
So let’s do it!
Permalink
So why were you so bitterly opposed to Scottish independence?
Permalink
Hi Bob,
My proposal moves funds between zones. Scottish independence doesn’t.
And I wasn’t bitterly opposed. I would be glad to see Scotland go.
Permalink
Bruce, that is very interesting. I am aware that you are very independent in your standpoint and don’t row anybody else’s political boat like a galley slave – re your views on Zionism. But do you think any other Conservative Party supporters would welcome Scottish independence? If so why don’t they speak out? Are they afraid? I quite understand that, from the Conservative perspective and at the moment, Scotland is a political desert with just one oasis in The Borders. You would be well rid of us.
Permalink
Hi Bob,
Here is an article I wrote about Scottish independence. https://www.bruceonpolitics.com/2011/05/17/should-we-kick-the-whingeing-jocks-out-of-the-uk/
I am sure that many other Conservative voters think the same.
Permalink
That’s good news Bruce. Maybe in another 10 years England will be rid of the winging Jocks and Scotland will be rid of the vile House of Lords.
If you hear us winging about the EVEL it is not that we want to vote on English matters (except the Labour Party) it just that we will be using it as a wedge to drive the two countries apart. Remember the SNP voultarily abstain from voting on English laws at the moment.
Another wedge will be driven in if England votes to leave the EU and we vote to stay.
So every year you and I live should be politically ‘interesting times’.