LABOUR INACTION

Despite all the budget day bluster from Labour, when it came down to the actual vote (on Monday evening) Labour politicians failed to oppose the cut to the 50p tax rate. The vote was forced by Plaid Cymru and the SNP, some 22 MPs voted against the cut, with only two Labour MPs voting to keep the top rate at 50p. The vote took place after both Labour Leader Ed Milliband and Carwyn Jones (Welsh First Minister) made much of their party’s opposition to the cut from 50p to 45p proposed in last Wednesday's Budget.

Plaid Cymru's Treasury spokesperson, Jonathan Edwards MP said:

"Having heard Labour's alleged objection to this regressive taxation policy time and again last week, the inaction of its party members last night showed astonishing hypocrisy.

"Over the past few months, we have seen Labour abstaining or voting with the ConDems on important issues such as privatisation of the NHS and cutting Welsh farming subsidies. Labour of course introduced regional pay in the public sector and are now advocating a regional cap on benefits. What we saw last night was the Tory-Labour tag-team at work yet again.

"Plaid Cymru has always maintained that progressive taxation is a principle, not an option, and those who are most able to afford to pay must make a fair contribution.

“Cutting the 50p income tax rate for the mega rich who earn more than £3,000 per week whilst continuing to slash support for the needy and vulnerable shows once again that the Coalition only cares about the rich and wealthy.

"Labour's failure to vote last night clearly shows that their priorities are much the same.

"First Minister Carwyn Jones's inability to influence his MPs in Westminster reveals a crisis of leadership for the party in Wales.

"His Treasury spokesperson, Owen Smith MP, was quoted last week as saying that cutting the top rate of tax for the rich would show how out of touch this Government is, yet when it came to the crunch last night, Labour failed to deliver.

"The Labour Welsh Government as always is more interested in serving its masters in London Labour HQ than serving the people of Wales."

OOPS...AN UPDATE

An advisor to Ed Balls, the Shadow Chancellor, has admitted that Labour had made a “screw-up” on Monday night by not voting with Plaid Cymru and the SNP to oppose Con Dem plans to cut the top rate of tax for the highest earners. The admission reveals embarrassing efforts by Labour staff to claim their abstention had been planned, and also reveal that Carwyn Jones was only belatedly told what was going on in Westminster rather than being part of Labour Party discussions. The Labour no-show followed some pretty vocal opposition and several pledges from shadow chancellor Ed Balls to vote against the Budget measure. The Con Dem Government won the vote on the 45p rate by 319 to 22, a majority of 297.

SAME OLD, SAME OLD?

It can be said that New Labours "ethical foreign policy" expired in the House of Lords in the early hours of a dark and windy night in 2005 at around 2am,  any idea that "we are all in it together" expired in broad daylight live on television something between 12.30pm and 13:30pm  today. In many ways the Conservative dominated Con Dem Government’s decision to scrap the 50p tax rate for high-earners should not been much of surprise, they have in many ways simply reverted to type.

One principle that George Osborne clearly does not subscribe to is that of progressive taxation. The Con Dems plan from 2013 onwards to cut a further £10 billion pounds worth of welfare. Rather more alarmingly it can be said that cutting taxes for high earners whilst slashing support for those less fortunate has merely highlighted the fact that the Westminster seems to have become a plaything of the rich elite and their friends.

We live in one of the most unequal societies in the developed world as a direct result of thirty years of Tory-New Labour government in London. One of the main reasons why the 50p tax rate hasn't worked is because enough of those who should be paying it have been able to use various tax dodges. If you believe in a fair society then everyone needs to pay their fair share. As a society we need to crack down on tax havens, tax avoidance and off-shore finance so that everyone pays a fair and correct amount of tax, not to mention cutting back on pension perks for high earners. .