Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 18 May 2001

Taxing our patience

THE FIRST week of election campaigning has been dominated by arguments over public spending. Hague's arguments about "tax cuts being an idea whose time has come" - hoping to emulate George W Bush - will jar with millions of working-class people who experience daily how seriously underfunded essential public services such as health and education are.

Indeed, the Tories' hidden agenda to make such deep cuts to allow for 20 billion tax cuts within four years will cause many public-sector workers nightmares. Hague's planned cuts would slash health spending by a third for example.

Blair called Hague's deluded economics Hagueonomics. Yet, the proposals of either party could be called Vagueonomics.

In all advanced capitalist countries the debate about what level of public spending can be sustained has been ongoing. In Italy, the issue of whether or not the state can continue to provide current pension levels dominated the recent general election.

In order to maintain their neo-liberal, pro-capitalist policies both Labour and Tories are not prepared to increase public spending. Both parties want to reduce the tax burden on big business and the wealthy while providing less services through the state. That's why the Institute for Fiscal Studies warns Labour's financial plans will hit a 'Black Hole' in 2003-2004; then they will have to decide whether to increase taxes further or make big cuts in government spending.

The Tory argument of 'you paid the money where are the services?' is already striking a chord amongst many. But, their alternative slogan for this election should really warn that under Hague, as under Bush, you may get tax cuts if you are wealthy enough but there won't be any services.


The tax and public spending plans of both parties are seriously flawed because they try to give the impression that they can provide decent public services without spending more. That's why both Labour and Tories hope to pass off the responsibility through greater privatisation of public services.

Labour has only managed to meet its NHS waiting list targets by paying the private sector to perform 25,000 operations in three months. Over 1 billion per year is spent in hiring agency staff - about half of which goes straight to the agencies - because of acute staffing shortages in the NHS.

The experience of where services have been privatised shows that corners are cut to make more profits and the quality of service deteriorates.

Labour has dismally failed to improve public services. That's because they have continued the Thatcherite cuts policies developed in the previous 18 years of Tory government.

This culture has bitten so deep that senior civil servants say their departments are undercutting government spending allowances because they got out of the habit of spending.

A report on Labour's provision of public services that was due to be published recently was suppressed by government spin doctors because it was so damning. Leaked documents obtained by the Observer say that Blair personally intervened to shelve the report.

Wealth tax

He wanted to suppress before the election this report that shows "Britain's schools, hospitals, criminal justice system and core services lacked 'sufficient, sustained investment', suffered from staff shortages, low pay and poor leadership and let down their users."

Public spending in Britain at 39% of economic output is low compared to other European countries, which spend nearly 10% more of output. Yet, British workers are taxed just as heavily through indirect 'stealth' taxes as their European counterparts but suffer far worse services.

This is because 80 billion worth of tax cuts made during Thatcher and Major's reign were mainly used to redistribute lots of cash to the wealthy.

These obscene handouts should be taken back through a wealth tax.

Combine that with taking the major companies that dominate the British economy into public ownership under working-class control and management, then there could be massive investment in public services of hundreds of billions of pounds and money to spare for tax cuts for working-class people.

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation


Your message: 


In The Socialist 18 May 2001:

Vote For A Socialist Alternative

Tuition fees no way! Fight Threats To Non-Payers

Taxing our patience

Major parties leave students in debt

Nellist launches Socialist Alliance manifesto

Women fed up of 'hard' Labour

Italian general election: Mr Big buys his way to power

Council workers back anti-cuts candidate

New Labour's 'ten year' plans


Home   |   The Socialist 18 May 2001   |   Join the Socialist Party

Subscribe   |   Donate  

Related links:


triangleBosses earn workers' annual wage in three days

triangleSuper-rich tax evasion costs 34 million nurses worldwide

triangleUnder the microscope

triangleUnder the microscope

triangleNews in brief

Public services:

triangleMay elections: Tories and Labour's Khan both vying to slash public services

triangleWhere is devolution heading?

triangleTories using pandemic to privatise NHS more

triangleMore than ever, we need accountable union leaders


triangleMillionaire tendency regains control of Scottish Labour

triangleTUSC to hold local elections conference in February

triangleTUSC 2021 local elections conference


triangleUSA in crisis - the need for a socialist alternative

trianglePCS Broad Left Network conference

Reports and campaigns

Reports and campaigns



Rolls-Royce Barnoldswick factory future secured following strike action



On the NHS front line



Socialist Party national women's meeting



Morrisons - 10/hr headline hides divisive pay offer



PCS Broad Left Network conference


Black Lives Matter

Police use Covid laws to intimidate BLM protesters



Plymouth rent strike continues



Why I joined the Socialist Party


Socialist Students

Refund student rent and fees



Christmas Crossword Competition



New Cross Gate fire 40 years ago


Black Lives Matter

Justice for Mohamud Hassan!



Bosses profit out of 'starvation' food parcels



Life in lockdown - being home from school when you're poor is hard



Teachers: On the front line, in their own words

triangleMore Reports and campaigns articles...

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube



Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 075 4018 9052

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041



Alphabetical listing

January 2021