The winds of political change
UK by-elections (like last week's in Rochester and Strood, where the UK Independence Party gained its second MP) have always been an opportunity for electors to vent their contempt for the national politicians, before things return to normality at the general election. By-elections generally do not matter; general elections do. So voters' actions are perfectly rational. But few people, even the pollsters, are predicting that things will return to normal at the general election in May 2015. Though Scotland did not vote 'Yes' to independence in its recent referendum campaign, the performance of Labour, the main 'No' campaigners, was humiliatingly poor. But the Scottish National Party is now piling on support. It now has 90,000 members – roughly half the number that the Conservative and Labour parties are able to achieve, even though their UK-wide base is twelve times larger than Scotland alone. Again, the SNP has often done well in by-elections, but never managed to break through in UK national elections. But now there is a real feeling that normality will not return this time, and that the SNP will steal anything up to 40 Westminster seats from Labour.
The Liberal Democrats, the Conservatives' coalition partners in government, are meanwhile being humiliated just about everywhere. In the Rochester and Strood by-election, they lost their deposit for the eleventh time running, polling just a few hundred votes. Their core supporters think they have sold out to the Conservatives, while voters who want to send a rude message to Westminster have thought UKIP a much better way to do that. In the past they voted for the LibDems, but now the LibDems are part of the Westminster establishment that they despise.
The main parties, then, find themselves no longer leading the agenda; what will decide the election is how these minor parties fare in May 2015. But this phenomenon is not unique to Britain. All over Europe, minority parties are shaking the political class and winning footholds in the legislature.
What is going on, and why? Perhaps we have to look outside the political process to understand. In commerce, for example, traditional business models have been fundamentally disrupted by the internet. Retailing in particular has been rocked by new suppliers, new ways of shopping and new delivery systems. With things like Amazon Click & Collect, why do we need a Royal Mail – even a private one, as it is now. And much the same is happening in politics too. Small communities can find each other, and organise and mobilise, and cause real problems for the traditional parties.
Given today's technology, there is no reason for people to settle for off-the-peg goods and services. They can be made to your specification, and shipped direct to your door. Barriers to entry have been swept away, as new suppliers with new ideas and not much more than a website can suddenly enter the market and challenge the incumbents.
It is the same in politics. When people have a choice of umpteen different TV or phone or utility packages, they become increasingly contemptuous of national and local government 'take it or leave it' services. When Air B&B or Über enables people to access services in an instant, they wonder why they have to fill in forms and queue up in council offices. What is the point of a Met Office when you can get the weather on your phone from countless other providers?
And national parties find it harder to dominate the national debate, as newspaper sales have been falling, because more and more people get their news from online channels – and not necessarily from the traditional media companies, but from a huge number of new media channels, plus (increasingly) social media and other sources. Activist groups can find each other and mobilise. The domination of traditional media and traditional parties is being eroded by people power.
Through internet and communications technology, we can also bypass government services more easily. Telephones were a nationalised industry thirty years ago, but nobody even thinks about re-nationalising them today. And given the new multiplicity of information and entertainment channels, more and more people are asking why we really need the BBC – that one-time flagship of the British establishment – as a state broadcaster.
The internet also makes it easier to find a private doctor or a private tutor, or indeed to find a job and an apartment. Self-help groups provide help to patients or parents that the lumbering government systems simply cannot provide. Who needs government?
Not many of us, any more. Nearly as many people in the UK (176,632) told the census that their religion was Jedi than there are currently members of the Conservative Party. With falling memberships, party candidates are becoming increasingly irrelevant to most people. They are chosen by a dwindling core of of grey-haired Conservative activists or hard-line-socialist Labour ones, with outdated, intolerant or patronising policies to match.
The politicians' response has not been to understand these new trends (their attempted use of social media is, as we have seen recently, usually disastrous) but to insulate themselves. Politics is no longer something that successful people in other fields did for a few years as a service to their country, but a full-time career, carefully preserved as such.
No wonder people are upsetting their applecart. And no wonder that they cannot understand why.
UKIP is on the right track to beat low pay
In the kick-off to their party conference, UKIP has also announced that its general election manifesto will raise the personal allowance threshold by £3,500 pounds:
At its party conference, which has begun, UKIP will also promise to raise to £13,500 the amount people can earn before paying any income tax.
In a plan to win the "blue-collar vote", Nigel Farage's party will pledge to fund the changes by leaving the EU and cutting UK foreign aid by 85%.”
(At present, the) 40p rate is payable on income from £41,866 to £150,000, with the "additional rate" of 45% paid on anything over £150,000.
“Under UKIP's plans, everyone earning between about £44,000 and £55,000 would pay income tax at 35p. Those earning more will pay 40p, with the additional rate scrapped. “
Despite other policy failings, UKIP's commitment to raising personal allowance surpasses the coalition's and should be heavily applauded.
This is the first policy of 'party conference season’ that properly addresses the root of the cost-of-living crisis and provides a simple, effective solution to relieve the tax burden on low-income earners.
For years, the Adam Smith Institute has illustrated the pointlessness in taxing workers out of a living wage, to then compensate their low income with government handouts and benefits. The Labour party’s recent pledge to raise the minimum wage to £8 an hour threatens to put more young, unskilled workers out of jobs, while still taking away a substantial potion of income from anyone who happens to benefit from the small pay raise.
A hike in minimum wage is a symbolic gesture at best, that continues to tax away - or destroy - low-earner incomes. A raise in the personal allowance threshold, however, gets more money into the pockets of those earners, creating no dangerous side effects in the jobs market.
With both the Liberal-Democrat and Conservative Party Conferences ahead of us, we can only hope both party leaders will continue to embrace an increase in personal allowance and match UKIP’s threshold; or maybe even one-up them. (National Insurance cuts, anyone?)