[Re: Recession and higher tax taking toll on Britain’s top earners, yesterday]
This article makes it clear that we really are all in it together. But this fact creates a tricky electoral paradox for the Conservatives. First, it isn’t in the Tories’ best interest to point out that they are taking large amounts of tax from their natural supporters (high income earners), and that these same people are facing large drops in income. But, secondly, they really must demonstrate that everyone is suffering from the tax rises and spending cuts required to balance the budget. How can this paradox be resolved? It’s unclear. It’s yet another example of how austerity has made UK politics such a minefield for all parties.
[Re: How Sweden reformed its state to lay foundations for future growth, Thursday]
Recent changes to the Swedish model amount to little more than tinkering. Sweden already had a developed education and healthcare system before reform began in the 1990s. And it is debateable whether these reforms were as widespread or as dramatic as Will Tanner suggests. The entire Swedish education system is still overwhelmingly state-funded and tightly-regulated. And with the private sector starting from a very low base, it is likely to remain in a distant second for some time. And since the effects of healthcare and education reforms take generations to bear fruit, it is too soon to judge them objectively.
BEST OF TWITTER
The resignation of Chris Huhne is a real test of support for the Lib Dems in the country. For the Tories, his seat is a must win.
George Osborne is in full bank-bashing mode. This is not a good place for a Conservative chancellor to be in.
Improving competition in the banking sector is a more powerful driver of cultural change than structural reform.
Centrica’s decision to pull out of new nuclear shows why you can’t dither and delay on major national infrastructure projects.
Readers of City A.M.