4 hours ago
5
An excellent condensed budget speech that the chancellor should give (Editorial, 26 October). I have two further points for the red book.
First, social housing should be a number one priority. An expanded social housing programme will deliver well-paid jobs, reduce the housing benefit bill, homelessness costs for councils and upward pressure on private rents, and stop the rightwing cry that there is no housing for locals.
Second, to pay for it, capital gains tax rates should be equalised with income tax rates, which will not breach a manifesto commitment and will bring in £14bn to £15bn.
But Rachel Reeves should be bolder and raise even more for our crumbling public services. As pensioners and landlords do not currently pay national insurance, she should increase all income tax rates by 5p, take 5% off employees’ NI so working people are protected and, at the same time, abolish the upper earnings limit to ensure that the highest-paid contribute more.
Phil Tate
Chester
Where in the Guardian’s budget speech was there any recognition of the vital importance of the long-awaited child poverty strategy due to be unveiled around the time of the budget? The chancellor’s actual speech must give due priority to this, not least because what should be key elements, such as the abolition of the two-child benefit cap (which was supported by both deputy leader candidates), have public spending implications. But also, a clear message needs to go out from the top of the party that tackling child poverty is a priority and central to our vision of a good society in which all children can thrive.
Ruth Lister
Labour, House of Lords
Your proposed fiscal policy is problematic. By far the worst idea is clipping the Bank of England’s wings in relation to inflation, though you couldn’t bear to mention the word in your editorial. The Bank is already under considerable pressure to support the government’s outdated productivist economic narrative by lowering interest rates at a time of medium-level inflation.
Inflation is a regressive flat tax on the poor. Making already disadvantaged people help fund the false god of growth by extending the cost of living crisis is the least progressive thing we can do.
Tony Samphier
Beckenham, London
You rightly call for the Bank of England to adopt a tiered-reserve system to save £20bn per year. A further £15bn per year could be raised by restricting pension contribution tax relief to the basic rate, which would be progressive and relatively painless as it would not affect anyone’s take-home pay. Together, these measures could fill the hole in the public finances and provide more than enough to meet the NHS emergency money needed this year.
Richard Mountford
Hildenborough, Kent
