The IFS has recently released a report criticising the Coalition’s claim that the budget was “progressive” by stating that it will hit the poor hardest. Instead of criticising the IFS’ work, I believe it is more appropriate to discuss why any genuinely progressive government needs to reform the country and that only through reform can we tackle the structural problems in society.
The first tranche of reform came in the 1980s with the major liberalisation of the British economy. This freed up enterprise and risk takers and created a new and burgeoning middle class. It also was in an era of unbelievable ideological battles between the forces of collectivism and those of liberalism. Ultimately the latter won, but it left a bitter legacy for millions of British people who only remember unemployment, wasted lives and broken families.
The second tranche of reform begins today and we have learnt from the experience of the 1980s. The most vulnerable to change in society cannot be cast off because while some rise to the challenge, others fall by the wayside. The Coalition has been explicit in focusing on the needs of the most vulnerable in society at the expense of “easy” reform.
The most vulnerable in society are not just the poorest, but also the aspirational and middle classes. The recession has resulted in many Britons with lower incomes than before. Higher living costs mean that many are wary of what the future holds. People who have mortgages know that the low rates will not continue forever, but are fearful that they will not only be unable to afford higher interest rates but that they will be unable to realise any capital gains on the sale of their property. Indeed, the most vulnerable are not only those who are reliant on government largesse, but are many who have barely survived the most brutal downturn since the 1930s.
The people I have identified above are not only the most vulnerable; they are the forgotten people in Britain. They are forgotten because they do not have unions and others advocating for them. They are forgotten because the media bypass them. They are forgotten because they get the occasional outpouring of righteous indignation from politicians, only to see any promise of a New Jerusalem soon whither away to the stark reality of modern life. Luckily, these people are now at the heart of the Coalition’s agenda. Rather than the patronising smile of a Labour politician handing out cheques and then abandoning them to their fate, they will get a Coalition politician who understands the problems and the struggles and who does not leave them to fend for themselves.
The Coalition will be undertaking a second tranche of structural reform. The first achieved a liberalisation of the economy. The second is about converting the State into local community organisations and about achieving structural social change. The biggest problem with the past Government was their assumption that every problem could be handled centrally and that a State is most effective when dictating outcomes irrespective of the needs of individuals. This is simply wrong.
No two communities are the same and therefore public services cannot be universally applied in the same way. “Equality of outcome” is not universal public services with no difference in what is being offered, but rather public services that match the needs of the local community, that are socially and economically sustainable and that acknowledge the uniqueness of local communities. This idea, commonly known as the “Big Society”, combines the best of Conservative and Liberal intellectual thought. It also learns the bitter lessons of previous years and the accumulated wisdom of past experience.
Welfare reform is a major step to change the social culture of this country towards effort, hard-work and enterprise. The State now acts as a giant spin cycle with money coming in from taxpayers only to be spat out to the same taxpayers. This creates a reliance on government handouts for financial security irrespective of need. It also creates a reliance on handouts to maintain a standard of living. This will now change.
Education reform will see the most radical transformation in schooling in generations. It will allow individual’s unique talents to be properly appreciated in schools that match those talents rather than be forced to certain schools as a glorified social engineering project. Do not forget that the current system is designed for social engineering – yet humanity is too complex, too dynamic, to be fine-tuned like a motor. By forcing parents to go to a bad school the inevitable outcomes are parents who pretend to hold religious beliefs or to move house to secure a good school place. Parents care more about their children than the State ever could. These school reforms will help parents without punishing them. It is about liberating families across the country from the dead hand of government bureaucracy.
The economic reforms are about making our public finances sustainable for the long-term. We are facing massive challenges in welfare, education, pensions, energy, infrastructure and many other areas. Raising expectations about permanently high government spending is unrealistic, is unsustainable and is unfair. What on earth is fair about leaving the next generation with over £1 trillion in debt?
This government is progressive. It combines the best Liberal and Conservative traditions and despite what people think, it is a government that will create sustainable, long-term jobs in the face of an economic catastrophe and will help the forgotten people of this country.
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Achieving equity requires a liberal conservative reform agenda
The IFS has recently released a report criticising the Coalition’s claim that the budget was “progressive” by stating that it will hit the poor hardest. Instead of criticising the IFS’ work, I believe it is more appropriate to discuss why any genuinely progressive government needs to reform the country and that only through reform can we tackle the structural problems in society.
The first tranche of reform came in the 1980s with the major liberalisation of the British economy. This freed up enterprise and risk takers and created a new and burgeoning middle class. It also was in an era of unbelievable ideological battles between the forces of collectivism and those of liberalism. Ultimately the latter won, but it left a bitter legacy for millions of British people who only remember unemployment, wasted lives and broken families.
The second tranche of reform begins today and we have learnt from the experience of the 1980s. The most vulnerable to change in society cannot be cast off because while some rise to the challenge, others fall by the wayside. The Coalition has been explicit in focusing on the needs of the most vulnerable in society at the expense of “easy” reform.
The most vulnerable in society are not just the poorest, but also the aspirational and middle classes. The recession has resulted in many Britons with lower incomes than before. Higher living costs mean that many are wary of what the future holds. People who have mortgages know that the low rates will not continue forever, but are fearful that they will not only be unable to afford higher interest rates but that they will be unable to realise any capital gains on the sale of their property. Indeed, the most vulnerable are not only those who are reliant on government largesse, but are many who have barely survived the most brutal downturn since the 1930s.
The people I have identified above are not only the most vulnerable; they are the forgotten people in Britain. They are forgotten because they do not have unions and others advocating for them. They are forgotten because the media bypass them. They are forgotten because they get the occasional outpouring of righteous indignation from politicians, only to see any promise of a New Jerusalem soon whither away to the stark reality of modern life. Luckily, these people are now at the heart of the Coalition’s agenda. Rather than the patronising smile of a Labour politician handing out cheques and then abandoning them to their fate, they will get a Coalition politician who understands the problems and the struggles and who does not leave them to fend for themselves.
The Coalition will be undertaking a second tranche of structural reform. The first achieved a liberalisation of the economy. The second is about converting the State into local community organisations and about achieving structural social change. The biggest problem with the past Government was their assumption that every problem could be handled centrally and that a State is most effective when dictating outcomes irrespective of the needs of individuals. This is simply wrong.
No two communities are the same and therefore public services cannot be universally applied in the same way. “Equality of outcome” is not universal public services with no difference in what is being offered, but rather public services that match the needs of the local community, that are socially and economically sustainable and that acknowledge the uniqueness of local communities. This idea, commonly known as the “Big Society”, combines the best of Conservative and Liberal intellectual thought. It also learns the bitter lessons of previous years and the accumulated wisdom of past experience.
Welfare reform is a major step to change the social culture of this country towards effort, hard-work and enterprise. The State now acts as a giant spin cycle with money coming in from taxpayers only to be spat out to the same taxpayers. This creates a reliance on government handouts for financial security irrespective of need. It also creates a reliance on handouts to maintain a standard of living. This will now change.
Education reform will see the most radical transformation in schooling in generations. It will allow individual’s unique talents to be properly appreciated in schools that match those talents rather than be forced to certain schools as a glorified social engineering project. Do not forget that the current system is designed for social engineering – yet humanity is too complex, too dynamic, to be fine-tuned like a motor. By forcing parents to go to a bad school the inevitable outcomes are parents who pretend to hold religious beliefs or to move house to secure a good school place. Parents care more about their children than the State ever could. These school reforms will help parents without punishing them. It is about liberating families across the country from the dead hand of government bureaucracy.
The economic reforms are about making our public finances sustainable for the long-term. We are facing massive challenges in welfare, education, pensions, energy, infrastructure and many other areas. Raising expectations about permanently high government spending is unrealistic, is unsustainable and is unfair. What on earth is fair about leaving the next generation with over £1 trillion in debt?
This government is progressive. It combines the best Liberal and Conservative traditions and despite what people think, it is a government that will create sustainable, long-term jobs in the face of an economic catastrophe and will help the forgotten people of this country.
Related posts: