Article

Comment

Leading

Politics

12 September 2024

4 min read

From Blair and Britpop to Starmer and the Oasis comeback: why character, not personality, matters

We get both the leaders and entertainers we deserve.

George Pitcher

George is a visiting fellow at the London School of Economics and an Anglican priest.

Tony Blair talks to a member of Oasis at a reception.

Number 10.

Last time we had a new Labour prime minister, there were no Partygate fears in Number 10. Quite the opposite. Tony Blair’s Cool Britannia project threw its front door open to the likes of Britpop overlord Noel Gallagher of Oasis at a bash in 1997. Inheriting a rising economy, things for New Labour, as well as for Oasis, could only get better.

This time around, Sir Keir Starmer has “tough decisions” to make, such as trying to deny a universal winter fuel allowance to most pensioners. Blair arguably never had a really tough decision to make, until his Iraq war nemesis. Since then, Oasis has turned into an unacceptable face of capitalism, as the Gallagher brothers’ reunion tour next year turns into a Ticketmaster greed-fest of “dynamic pricing”. Diabolical pricing, more like.

Starmer and Blair both aspired to usher in an era of change and renewal. The similarity of their circumstances ends there. Nearly 30 years on, Starmer is in a different world. And the transformation of Oasis is totemic of that – from the joys of Britpop to the horrors of rip-off.

That times change is axiomatic. The nineties had busts and booms; the UK’s Black Wednesday currency crisis was of the former, the snarky underclass anthems of Oasis a paradigm of the latter. Now, in the 2020s, there are only busts. Like the note left in the Treasury drawer in 2010 joked, there really is no money left now. Except, apparently, for Oasis.

Which brings us to the false idols of politics. Since personality, rather than policy, became the political trump card it’s inevitable that we would get Trump. Or someone like him.

An engaging question arises as to how the two Labour PMs were and are equipped spiritually for the times in which they lead. The spiritual state of Oasis is a linked matter, which I’ll get to in a moment.

Blair’s government famously didn’t “do God”, though it turned out he did privately, converting to his wife’s Roman Catholicism almost immediately after leaving office in 2007. Perhaps he had a priest hole in the family flat above Number 11. He consistently denied claims that he prayed with American president George W. Bush before or during the Iraq war.

Starmer doesn’t do God rather more formally, as a self-declared atheist. We can conclude that prayer is not a resource that he needs as he faces a more challenging immediate political future than Blair’s early days as PM. I only wish Starmer would appear in a T-shirt with the slogan “No Prayer, Like Blair”.

Arguably the spiritual life doesn’t matter for any leader. The job of PM is all about simple competence, mostly in money management. To paraphrase the pithy quip from Bill Clinton’s 1992 presidential campaign (on which Blair’s so strategically relied), it’s all about the economy, stupid.

So the worship is of mammon rather than God. Here the current and former PMs might care to track the career trajectory of the two Lords Gallagher of Oasis from Blair to Starmer. In 1997, they were in their pomp as authentic Mancunian working-class heroes. Today, the brothers have to make up and go back on the road to subsidise Noel’s £20million divorce settlement. A rather different demographic.

There’s perhaps no great political lesson there for political leaders, but it’s almost Faustian in its scope. See what happens when you bank only with mammon.

Which brings us to the false idols of politics. Since personality, rather than policy, became the political trump card it’s inevitable that we would get Trump. Or someone like him. It doesn’t matter, to his core vote, what he’s done or what he’s incapable of doing, Only who he is. He’s an idol, a cult image, a golden calf. Trump’s bull is sacred, whatever he does.

The UK thankfully hasn’t had one of those yet (though there were warning tremors in Boris Johnson). But it’s telling that Blair is said to have developed a messianic tendency after his premiership’s early intervention in Kosovo during the war in former Yugoslavia. At the termination of hostilities, crowds there sought to touch his clothes as he passed.

Strange that being touched should make him feel untouchable. But that’s the way of messianics. It can be the same with rock & roll stars. Live music, at its best, can offer a transcendent sense of communion. At its worst, it’s the adoration of stage idols that sends them a little mad. Or mad for it.

Oasis’s Liam Gallagher isn’t in this together with his fans anymore. He’s turned into a Marie Antoinette figure online in response to the ludicrous prices charged to watch him from Ticketmaster. He substitutes “Shut up” and “£100,000 kneeling tickets” for “Let them eat cake”.

He and his brother are warnings of what can happen in so short a period between the ascendancy of Blair and that of Starmer. True, pop stars aren’t as dangerous as someone such as Trump. But they do show us that we get both the entertainers and the leaders we deserve.

Explainer

Comment

Economics

29 October 2024

6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?

Laurence Fletcher

Laurence Fletcher is a journalist at the Financial Times.

Sarah Agnew on Unsplash.

Few doubt that Chancellor Rachel Reeves will be putting up taxes when she presents her first Budget on October 30th.

The political narrative of recent months has very much been of an alleged fiscal “black hole” of £22bn - or is it £40bn? - that somehow needs to be filled.

While the size of the shortfall and the identity of those responsible are both hotly disputed, and despite a lack of detail from the Treasury about what it actually consists of, the questions now being asked are not whether taxes will rise but which ones and by how much.

Months of speculation have focused on employer National Insurance, capital gains tax and freezing income tax thresholds as areas that Reeves could look to for the additional revenue.

But beyond the immediate issue of raising enough revenue to make good any shortfall, lies a deeper, trickier question about the way in which taxes should be levied for the good of society. If a government is to force people and companies to hand over their money, then what is the most ethical way to do this? Who should pay and who shouldn’t? How can tax be used to reduce inequality and build a better society?

Answering such questions is, of course, far from straightforward, because there are plenty of other factors in play.

For instance, some taxes are surely levied because they are simpler to collect. Take income tax - an unpopular measure introduced in 1799, then abolished before being reintroduced as a supposed temporary measure. It could certainly be argued that taxing people’s income - their attempt to get on in life and improve their lot in life - is less “fair” than taxing wealth that has been accumulated by someone’s ancestors years ago. Working hard and earning income is often surely a way of breaking down class divisions. But income tax - contributing 28 per cent of UK government tax take in 2023-24, according to The Institute for Fiscal Studies - has the advantage that it is relatively difficult for the average worker at a UK company to avoid it. Ease of levying it is surely a driver.

Equally, some taxes that might seem “fairer” have deliberately not been levied because of the difficulty in collecting them, and/or because to try to do so could be counterproductive.

A wealth tax, for instance, would be “economically damaging”, according to one of the UK’s highest profile tax experts Dan Neidle.

Or take the politically contentious issue of non-doms, a colonial era tax break allowing rich foreigners to avoid UK tax on overseas income. It would be fairer, the argument goes, to tax them on the whole of their income. If they are going to be resident in the UK, then surely they should be taxed like a UK resident whose home is here?

Former Chancellor Jeremy Hunt abolished this regime earlier this year but left a number of concessions that the incoming Labour government pledged to abolish. But non-doms are tax-sensitive and highly mobile, and a number of jurisdictions compete to attract them. Many are entrepreneurs and wealth creators that many countries need. Reports have suggested a clampdown could raise no money or even cost money and could drive people away.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Paul Williams

So, what can be done to use tax in an ethical way? Paul Williams, research professor of marketplace theology and leadership at Regent College, Vancouver and chief executive of the Bible Society, takes a Biblical perspective that he believes offers some solutions.

He takes as his starting point a story from the gospel of Matthew, where Jesus is asked whether people should pay taxes to Caesar. The question is a trap - either Jesus gives his backing to taxation that is highly unpopular with the Jewish people, or he rejects the tax in an act of rebellion against the Romans.

Jesus replies that they should “pay to the Emperor what belongs to the Emperor, and pay to God what belongs to God.” We are to pay our taxes to those in authority, but we are also to honour God.

While Williams believes that too much emphasis is placed on the Budget and political parties’ promises to be able to fix everything, and that a more radical rethink of our economy is required, he also sees room for positive tweaks to the current system.

One key area is the property market, the manifestation of so much inequality in society, with some people owning multiple houses while others cannot afford to buy one.

Williams argues that the ready availability of debt finance has allowed those who already hold assets to easily acquire properties, turning real estate into an investable asset class to the detriment of many of the poorer in society.

“The reason there’s so many homeless people and empty houses is due to debt finance. It makes it easy for a relatively small proportion of the population to acquire a large percentage of the assets.

“The system has allowed a structure in which a small advantage in the beginning can lead to big, big differences over time.”

Williams highlights parts of Devon and Cornwall that have been, he says, “completely ruined” by wealthy people from elsewhere buying second homes, leaving property “out of reach of anyone who lives and works there”.

Nevertheless, he believes taxation can be used in this area to help level the playing field.

He proposes a “pretty punitive” marginal rate of tax on ownership of more than one home. (Stamp duty only partly does the job and is a blunt instrument also affecting people moving homes, thereby makes mobility expensive).

“You want to disincentivise the way the housing market is used for speculation,” he said.

“Housing is being treated as a commodity. The problem is, it’s not; it’s not just an asset. It has utility value and a communal and quasi-spiritual value, enabling people to feel rooted.”

Buy-to-lets, meanwhile, are better than having empty second or third homes, but “wouldn’t it be better if occupiers could buy that house?” he adds.

Meanwhile, research by the Financial Times recently found a huge wealth gap between the average millennial and the top 10 per cent of millennials, who are benefiting from family wealth to accumulate substantial housing assets.

So, would increasing the rate of inheritance tax - one of the most hated of taxes - and/or lowering the threshold also help reduce some of this inequality? After all, how is it fair that one child in the UK is born to inherit large property wealth while another is born to inherit little or nothing? Or, even worse, that second child will only ever be able to afford to be the tenant of the first, paying them rent for the rest of their lives?

Williams is not a fan of inheritance tax per se, arguing that it is “not part of the package” in a Biblical image of a flourishing economy.

But he adds an important caveat: “the playing field is not level.

“There might be circumstances to impose a one-off tax on the very wealthy… if you want a transition to a more equitable society.”

Such steps are not easy to take. It is, he admits, probably “career suicide” for a politician to adopt such views. But if we are to take steps towards a fairer way of life, and avoid a two-tier society in decades to come, then maybe the conversation needs to shift this way. Perhaps the Budget could be the time to start.