It has been a turbulent time for the Coalition. Starting with Donorgate, we've had the Pasty tax, the Granny tax, the Caravan tax, the Charity tax, Jerry cans, and finally the dodgy date.
A very bad month, but I think the most of those issues were related to the budget and most of the budget measures were correct. There was bad presentation from the Government. A lot of the controversial measures came out of a desire to simplify taxes (whilst raising a little). The fact that luxury food is supposed to have VAT and other food has no VAT causes quite a few edge cases. One such being take away food, and it seems right that all take away food has VAT and the fact that pasties did not have VAT but Fish & Chips does seems slightly bizarre.
On the Granny tax, why should older people have a different personal allowance to younger workers? It makes no sense to me, older people don't have to pay National Insurance so they already have an advantage. This last year, the allowance has gone up greatly and the proposal is that the differential is gradually fazed out from next year while the normal personal allowance is raised to the same level. It's not a huge figure.
Why should static caravans not have VAT where mobile caravans do have VAT? Those designed as year round houses are still exempt.
The Charity tax is one that perturbs me. I don't like the fact that Charities will be hit by having less money, but it was a revelation to me that rich benefactors could put all their money into Charities and avoid paying income tax at all. It seems fair to pay income tax first and then make charitable donations like most people.
So I still think the budget was fair overall. Which takes me to the unforced errors. Donorgate was plain stupidity by a treasurer who should know better, I don't believe there would have been undue influence. Political funding is a completely separate issue, but its fair to say that those who have money have a great chance to have their views heard as long as they don't buy influence.
The possible fuel strike was badly handled. It made sense to warn people to fill up once a strike day had been announced, but it was cack handed to panic people before the date was set! The Jerry can issue was silly, Francis Maude should be more careful.
The whole issue around Abu Qatada and the date at which he could lodge an appeal is serious. Serious in that it shows how useless the Home Office is. I can't understand why they couldn't wait a day to be sure. I wonder, given the previous month, whether there was some pressure for good headlines. It has spectacularly backfired. It may be a resigning issue for Theresa May because she is ultimately responsible for her department and she should have urged caution before rushing to the House of Commons when there was doubt about the day. The home office is a curse that may have just snaffled its latest victim!
Ultimately, Qatada will probably always have appealed anyway so the bigger picture has not really changed by the date issue but it is adding to a certain narrative. At the moment the Government is looking decidedly amateur. Too many unforced errors and once the idea of a reputation for incompetence takes hold, it will be difficult to get it back. It's what killed the last Tory Government on 16 September 1992.
It's time for David Cameron to bang the table, read the riot act, and make sure his team are double checking every announcement they make.
While I'm at it, DC needs to look after his backbenchers a little more. He is not loved by the right of the party, which is a significant section and he alienates them at his peril. He should not force House of Lords reform down their throats because it could be very divisive. Proposals have been brought forward, as mentioned in the Coalition agreement. It should be a free vote. The Lib Dems should not make a quid pro quo for the boundary review, they had that for the AV vote - they can't use their capital twice!
Squiffy.
