LAST week, I joined fellow Liberal Democrats at our party conference in Brighton, where our 72 MPs focused on the importance of investing in public services to prevent more expensive problems down the line. It was a refreshing contrast to the Labour government’s current stance, which prioritises fiscal discipline above all else, even when it means cutting back on the very services that could save money—and lives—in the long run.
For example, the Liberal Democrats are clear that investing in preventative measures today means fewer people needing hospital treatment tomorrow. It’s an approach that isn’t just compassionate; it’s common sense.
Unfortunately, Labour seems to have lost sight of this. Their obsession with raising taxes to cover any increases in spending might look good on a balance sheet, but it risks creating more problems than it solves. If they under-invest in preventative services, they’re storing up even greater costs for the future. And if they resort to increasing taxes or cutting benefits, they’ll be hitting the most vulnerable the hardest and stifling economic growth—the very thing they claim is their top priority.
There are rumours that the government is planning to scrap the 25 per cent discount on council tax currently received by single people. If this goes ahead, it will hit many of the same vulnerable individuals who have already been hurt by the two-child benefit cap and the cuts to the Winter Fuel Payment. It’s a cruel policy that would be especially harmful to single pensioners, young people starting out on low wages, and single parents who are already struggling to make ends meet.
And it doesn’t stop there. The Government is also believed to be considering lifting the 5 per cent cap on council tax increases. This would leave local councils with an impossible choice: either leave themselves without enough money to run essential services, or impose hefty council tax hikes, which would once again hit low-income households the hardest.
Here in Cornwall, we know all too well what happens when local services are underfunded. Our social care system is at breaking point, public transport is inadequate, and too many families are struggling to afford the basics. But the solution isn’t to pile more pressure onto local councils and the people they serve. Instead, we need a fairer, more progressive tax system that ensures those with the broadest shoulders bear the heaviest load.
This is not a party-political point: Unite (one of the UK’s biggest trade unions) has brought a motion to the Labour party conference proposing exactly these policies. They know growth cannot be achieved by starving public services and squeezing the most vulnerable. It’s time for a new approach—one that invests in people and communities today to build a better tomorrow. The Liberal Democrats know it. The trade unions agree. So why is the Labour government determined to follow the Conservative ideology of austerity?