Tuesday, September 20, 2011

Lib Dems are helping to make Britain a fairer country

From abolishing tax for the poorest to extending pre-school education, our influence on coalition policy is plain to see

I wouldn't have expected rightwing Tory MP Nadine Dorries to make such an effective case for the Liberal Democrats being in government. But her message at prime minister's questions a fortnight ago was clear. Lib Dem influence in government is real and substantial, and she doesn't particularly like it. And our party members in Birmingham this week see that influence with their own eyes.

Coalition government presents a direct challenge to the tribalism that has dominated postwar politics. For some on the left, the mere act of working with the Conservatives is a sin. We'll never convince those people driven by hatred of the other tribe. But for progressives willing to examine the facts rationally, it is time to reassess the case. After all, 13 years of Labour government ultimately disappointed. Its economic credibility lies in tatters, and its record of tackling social disadvantage fell short. As Vince Cable said on Monday , the progressive agenda of centre-left parties cannot be delivered by bankrupt governments.

Can the Lib Dems achieve progressive objectives in coalition with the Conservatives? Analysis by UCL concluded that 75% of the Lib Dem manifesto found its way into the coalition agreement, compared with 60% from the Conservatives.

Coalition government is new for everyone. It is a dynamic process. In the last 16 months Lib Dems have become more assertive in government. We'll play our hand, fighting for the things we believe in, but will remain professional and businesslike to maximise our impact. The public want effective, functional government ? particularly at a time of such uncertainty. Picking fights for the sake of it will turn people off. Fighting for what you believe in robustly but reasonably brings respect.

Across government, Lib Dems are making an impact. Take two examples, central to what we stand for.

First on tax. Remember Gordon Brown's decision to scrap the 10p rate of income tax? And compare that with lifting the threshold of income tax to �10,000. Already, nearly a million workers on the lowest pay have been taken out of tax. For Lib Dems, the priority will remain easing the burden on low-paid families, not cutting tax for the wealthy. Across the developed world some of the super-rich have recognised their social obligation. Warren Buffett complains of being "coddled long enough by a billionaire-friendly Congress". He wants to be taxed more. And the chairman of Ferrari wants a surtax on incomes of more than ?5m in Italy. Now isn't the time to be cutting the 50p rate here. Indeed, Lib Dems will establish a tax group to develop future policy, looking at both wealth and land taxes ? taxing, not for the sake of it, but working to secure a fairer tax system.

Second, if Britain is to become a fairer country we have to tackle entrenched disadvantage. Where you come from too often determines your future. Just consider this. In the borough of Sandwell in the West Midlands (population 289,100), not one child was admitted to Oxford or Cambridge between 2006 and 2010. In the same period, 410 pupils from Westminster School and 394 from Eton got there.

That should shame us all and make us open to new ideas about how to effect change. There is nothing progressive about a welfare system that traps people in dependency or an education system that lets down so many. The missed potential of so many teenagers leaving school at 16 with no qualifications worth their name makes me impatient for change. We can see what is possible. Visit schools like St Paul's Way Trust School in Bow or the Globe Academy at Elephant and Castle and you see amazing achievement, but this is still the exception not the rule. The consequences of this failure impact on us all.

This is Nick Clegg's passion: extending 15 hours of pre-school education for two-year-olds from families qualifying for free school meals, targeting �2.5bn at children from the poorest backgrounds through the pupil premium and strengthening the rules of the Office for Fair Access to ensure universities select on the basis of potential not background ? something Labour failed to do. These changes won't transform Britain overnight. But they lay the foundations for giving every child the chance to flourish.

These are extraordinarily tough and uncertain times. Across Europe and North America, governments struggle to tackle a sovereign debt crisis. This government inherited the largest budget deficit of any G20 country. Securing political stability was the right thing to do when facing such momentous challenges. Coalition isn't comfortable. It isn't easy but Lib Dems are meeting this historic challenge.


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