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Politics
5 min read

Why we need a gentle radical revolution

Our social arrangement needs to prioritise human relationships, argues MP Danny Kruger.

Danny Kruger is the Conservative MP for Devizes.  He is the author of Covenant: The New Politics of Home, Neighbourhood and Nation.

A group of people stand in a field by a fence and a railway footcrossing.
Danny Kruger with a campaign group in his Devizes constituency.

Democracy divides us. The political system best calculated to hold together a diverse society is also one that exacerbates differences and obscures our common opinions and interests. A two-party system - and all Western politics is largely binary, split between conservative and progressive parties or groups of parties - encourages vicious disagreement across the aisle, and polarises opinion in the country.  

The paradox is that, despite our party disagreements, the most popular opinion with the public is that ‘they're as bad as each other’. The view held in common across the country is that ‘they’re all the same’; that ‘there’s nothing to choose between them’. And deep down, the public is right, but in a good way. Fundamentally the parties share a worldview, which derives from our common inheritance as the heirs of the Christian tradition. 

That tradition taught us that individuals are intrinsically, personally, valuable, without reference to the identities of sex, household, tribe or race which, in pagan cultures, gave people their only worth (or for most people, their lack of it). It also taught us that, despite our individual personal value, our mission in life was other-facing. Our object of worship was outside the self. God’s will was made material and meaningful through the institutions of our common life, in what we came to call civil society. These institutions in turn, especially the institution of the law, worked to protect the individual and make diversity safe.  

This tradition split into two parts in the modern age, as an old, anti-Christian idea, which Christianity had expunged, crept back in. In my book Covenant I call it ‘the Idea’, as opposed to what I call ‘the Order’. The ‘Idea’ is that I am god, with the creative power to order reality and decide for myself what is right and wrong. This ancient heresy has been refreshed in our times precisely by the principle of individual rights and freedoms that Christianity gave us. This is because we have steadily degraded the other side of the Christian bequest: the other-facing, institutional life that gave individuals a more textured sense of who they were, i.e. members of a community with something to live for outside themselves. The consequence is both the narcissism of self-worship and the rise of identity culture - a return to the pagan belief that your value is determined by your sex, race or tribe.  

In the age of tech we can create a decentralised, responsive and personalised system that will give us both belonging and agency. 

Individual value and dignity, made safe and meaningful by a social arrangement which emphasises solidarity, peace and care for the stranger - these are the elements of what I call the ‘Order’. They are not absolute principles: even individual rights to life and liberty must be constrained in certain circumstances, and other-facing generosity likewise needs to be limited in order to be sustained. To take a current example, ‘care for the stranger’ does not, in my view, mean offering a home in the UK to anyone who manages to arrive on our shores and claim asylum. It does mean treating every asylum seeker humanely, whether we admit them or remove them, and it means committing part of our wealth and power to preventing, or mitigating the effects of, war and natural disaster in other parts of the world.  

How does such a covenantal politics approach other policy areas? The principles that Graham Tomlin set out in the report he compiled after the Grenfell Tower fire, after listening to local voices, are a helpful guide. We need to ‘humanise welfare’, dismantling the inefficient bureaucracies which see people as units to be managed, rather than as people to be helped and given responsibility and agency, and build instead relational systems of social support. We need to ‘provide homes’, which means so much more than the sterile term ‘housing’: it means attractive, affordable, safe buildings where people can live both with privacy and in community. As this suggests we need to help people ‘become neighbours’, with the means and the motivation to connect with others who belong to different identity groups. We should ‘notice faith’: as happened after Grenfell, it is local community faith groups which more than any official agency provide support, belonging, cohesion, and practical change at a local level.  

And lastly, overall, we need to ‘renew democracy’. In Graham’s words, ‘we need to find ways to enable people, especially in more deprived areas, to have more of a say in issues that directly affect their lives, rather than politics happening at a distance by competing parties remote from local life.’ The sense of this is both deeply conservative (small-c) and deeply radical. Of course, we need power to be close to the people; this was the traditional way of things before the Durkheim and his followers  decided that the centralised state, not local civil institutions, was the proper place for managing human services. In the Middle Ages, according to Robert Tombs’ history of England, fully a third of men, of all classes, played a responsible role of some kind in the management of their neighbourhood. Yet a return to this model would be radical, because it involves upending Durkheim’s assumptions - shared by his heirs in the school of New Public Management beloved of the Blairites - about the proper arrangement of society. 

We need a gentle revolution: a return to some old ideas about social organisation that prioritise human relationships, the organic and the natural over utility, efficiency and equality of outcome; ideas which actually lead to a more useful, more efficient and genuinely more equal system. These are the ideas of what I call the Order, derived from theories of the social covenant that lie deep in our history but which are also best fitted to the modern world.  

In the age of tech we can create a decentralised, responsive and personalised system that will give us both belonging and agency. We can recreate a more localised economy, but this time more fair, equal and capable of supporting a larger and more diverse population than the pre-modern world knew. And we can make a democracy that more closely reflects the principle that we all, whether progressive or conservative, share a common inheritance and belong to a single political community. 

 

Covenant: The New Politics of Home, Neighbourhood and Nation is published by Forum Press. 

Explainer
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Economics
6 min read

How to tax ethically to avoid a two-tier society

From income tax to property and inheritance taxes, which is fairer?
a pile of coins.
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.