Briefing Note - Liberal Democrat Manifesto
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1 Briefing Note - Liberal Democrat Manifesto Aside from a few eye-catching domestic policies, the issue of Brexit is unsurprisingly at the forefront of the Li eral De o rat s a ifesto. Poli ies su h as the legalisatio of a a is ser e as red eat for the Liberal vote - much in the same way that fox hunting might appeal to the more traditional Conservative vote. However, despite grabbing a few headlines, a new approach to drugs policy is unlikely to gain much traction. Last week, polling company YouGov published new findings concerning attitudes to Brexit since the referendum vote last year. Perhaps unsurprisingly, the press picked up on the rise of the Re-lea er : a chunk (23%) of the electorate who, despite originally supporting Remain, now believe the Government has a duty to carry out the wishes of the British public. However the polling also o fir ed the e iste e of a resilie t group of Hard Re ai ers ho elie e the Go er e t should ignore the result of the referendum (22%). This Liberal Democrat manifesto is aimed squarely at this group. Leader Tim Farron has calculated that while the Conservatives and Labour are fishing amongst the 68%, he ca hoo er up fro the %. This ould e the ke to the Li De surge, ut if Farron has overestimated the potency of Brexit in the General Election then it could seriously undermine the #LibDemFightBack. There also is a clear drive to entice the youth vote - specifically millennials. The Liberal Democrats will know that Labour has this demographic in its sights, but they have plenty in their offer, from reducing the voting age to 16, to implementing bold housing and renting policies. However despite several commitments on higher education the party has had the rug pulled from beneath them by La our s pledge to e d tuitio fees. A robust defe e i the do u e t of the part s re ord o higher education under the Coalition Government perhaps only serves to remind voters of past broken promises. With Labour setting out their stall firmly to the left with large scale renationalisation commitments, a d the Co ser ati es o it e t to a hard Bre it, the Li eral De o rats ill hope that this manifesto ticks the right boxes for a credible centrist alternative. Economy The Liberal Democrats e o o i poli sits et ee La our s proposed large s ale i terventionism and the Conservatives record of austerity. Keen to project a responsible and trustworthy image, the manifesto does commit to eliminating the deficit on day-to-day spending by 2020 but they have wholeheartedly rejected the Conservatives commitment to running a budget surplus. The asi a itio ehi d the part s poli ies is to invest in the future by reversing inequalities in the tax system. As such, they commit to a 100 billion package of additional infrastructure investment paid for by reversing what the see as u fair ta uts. Specific Measures Reverse the following tax cuts: The cut in Corporation Tax from 20% to 17% Capital Gains Tax cuts
2 Extended tax relief for Capital Gains Tax The Marriage Allowance The increase in the Inheritance Tax threshold Consult on changes to the tax system to consider other forms of economic activity indicators (i.e. moving away from profits-based tax to sales or turnover). Expand the activities of the British Business Bank, enabling it to perform a more central role in the economy, tackling the shortage of equity capital for growing firms. Brexit The Liberal Democrats have so far centred their election campaign on the issue of Brexit. This focus is reflected in its manifesto. They are the only major party to propose a second referendum on EU membership after the negotiation process. According to their manifesto, this referendum would include an option to remain in the EU. Specific Measures Unilaterally guarantee the rights of EU nationals living in the UK. This is a pledge which has already been made by Labour. Mai tai the UK s e ership of the Si gle Market a d Custo s U io to e sure future trade and prosperity. Protect the principle of freedom of movement to work, travel and study across the UK. The freedom to study is also defended through the pledge to safeguard the EU Erasmus scheme, as well as science and research funding for universities. Defend EU legislation concerning social rights, equality and the environment. The party have argued these la s are u der threat fro the Co ser ati e Great Repeal Bill a d hard Bre it. Respect the long term interests of Scotland, Wales and Northern Ireland, as well as the rights of the people of Gibraltar. They have also pledged to support the individual interests of deprived regions. Business impact Alongside the party s 100 billion investment package, the Liberal Democrats is aiming to be seen as the ha pio s of s all a d ediu size usi esses, i trodu i g start-up allo a es, re ie i g business rates and taxes, and expanding the activities and remit of of state-owned organisations such as the British Business Bank and the National Infrastructure Commission. Unlike other major parties, the Liberal Democrats have placed a large emphasis on renewable energy projects and reducing pollution - through a Green Transport Act and a stronger Air Quality Plan respectively. Business Regulation Introduce a General-Anti Avoidance Rule, setting a target for HM Revenue and Customs to reduce the tax gap.
3 Reform Corporation Tax to develop a system that benefits smaller businesses, and ensures the biggest multinationals cannot avoid paying sums comparable to nationally based competitors. Undertake a review into the Business Rates system, prioritising reforms that recognise the development of the digital economy, ensure high streets remain competitive and lessen the burden on small businesses. Reform the Regulatory Policy Committee to remove unnecessary regulation and support new markets and investment, particularly in low-carbon and resource efficient innovation Infrastructure Expand the activities of the state-owned British Business Bank, enabling it to perform a more central role in the economy by tackling the shortage of equity capital for growing firms, and providing long-term capital for medium sized businesses. De elop a e start-up allo a e to help those starti g e usi esses ith their living costs alongside supporting fast growing businesses seeking to scale up through mentoring support. Provide significant investment infrastructure including a continued commitment to the Northern Powerhouse and Midlands Engine initiatives, creating a programme of installing hyperfast fibre-optic broadband, as well as supporting HS2, Crossrail 2 and rail electrification. Moreover, they would underwrite funding for British partners in EU-funded projects such as Horizon 2020 and provide additional funding to bring more private investment into renewable energy. De elop Britai 's a ilit to trade i ter atio all, reati g ore atapult i o atio a d technology centres and backing private investment in green innovation projects. In addition, they would introduce a national skills strategy for key sectors and develop a skilled workforce to match it through apprenticeships and sector-led national colleges. Renewable Energy and Reducing Pollution Legislate the Green Transport Act, Air Quality Plan, and support the manufacture of lowemission and electric vehicles. Introduce a diesel scrapping scheme - including a ban on all sales of diesel cars and small vans by 2025, in addition to extending ultra-low-emission zones to 10 more towns and cities. Support investment in energy storage, smart grid technology, hydrogen technologies, offshore wind and tidal power projects such as the Swansea Bay tidal lagoon in an effort to generate 60% of electricity from renewables by Ensure that the National Infrastructure Commission takes fully into account the environmental implications of all national infrastructure decisions, while also devolving significant infrastructure spending to local areas.
4 Other policies of note Health and social care Central to the Li eral De o rats health a d so ial are poli is a p rise o the asi, higher a d additional rates of Income Tax to raise 6bn in additional revenue for the NHS. This funding would e dire ted to the part s priorit areas for health: social care, primary care, mental health and public health. Elsewhere there are proposals to develop a new childhood obesity strategy that restricts the marketing of junk food to children with measures including TV advertising before the 9pm watershed and closing perceived loopholes in the forthcoming Soft Drinks Industry Levy (April 2018). In addition, the introduction of mandatory targets on sugar reduction for food and drink producers are proposed, as well as introducing a minimum unit pricing for alcohol, subject to the final outcome of the legal challenge in Scotland. Housing I keepi g ith the part s ai of attracting the younger voter, housing policy has received particular attention, with a commitment to building 300,000 homes a year - double the current rate - and introducing several policies to help renters. Most significantly, the manifesto commits to building homes directly via a government commissioning programme, promising 500,000 affordable and energy efficient homes by the end of the Parliament. New Garden Cities would also play a significant part in housing policy with the party committing to the creation of at least ten. A new government-backed British Housing and Infrastructure Development Bank is proposed to provide, amongst other things, long-term capital for major new settlements and house building projects. Local authorities will also be given more power to increase Council Tax on second and empty homes, enforce house-building on unwanted public sector land and penalise land-banking by developers with planning permission. Proposals to reform the rental market include a Rent to Own model allowing tenants an increasing stake in a rented property, owning it outright after 30 years; allowing renters first refusal to buy the home they are renting should a landlord decide to sell; helping young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30. Welfare The Liberal Democrats want to be seen by the voter as a party that strikes a balance on welfare; fairer than the Conservatives but more responsible than Labour. The party plans to reverse Co ser ati e elfare poli ies su h as the t o hild poli o fa il e efits, uts to housi g e efit for year-olds, uts to E plo e t Support Allo a e a d the edroo ta. For disa led people, although there are plans to expand Access to Work and scrap the Work Capability Assessment and replace it with a new system, unlike Labour the Liberal Democrats have not committed to making any changes the contentious Personal Independence Payment. Other
5 significant welfare policies include the reinstatement of the legally binding poverty targets of the Child Poverty Act. Defence Tim Farron had said already this week that the Liberal Democrats would keep defence spending at the Nato benchmark of 2% of GDP. The policy on a nuclear deterrent is more nuanced however, with a commitment to continuing with the Dreadnought programme (replacing Vanguard) but scrapping continuous at-sea deterrence by buying three boats instead of four. Sitting above this is a pledge to work to lead on international nuclear disarmament efforts. Elsewhere there are plans to invest in cyber security and intelligence, and to address skills shortages in the ar ed for es re ruiti g STEM graduates i to e gi eeri g roles, pro idi g a golde ha dshake of up to,.
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