A question was put to me, in my absence, over on the Archers boards yesterday about tax on PE profits by Rose Norman. Now I know Rose drops in occasionally so thanks Rose for igniting my curiosity. I happened to use the phrase 'u-turn' during a reply on the tax treatment of income for PE Investors and it got me thinking, so here are a few of the u-turns and policy changes that Labour have performed since 1997. Some of them were obvious but some needed some research.

Referendum on the Lisbon Treaty - although in the interest of balance I should point out that David Cameron also said that the Conservative's were 'unlikely' to hold one.

Admission of 36,000 Gurkhas to the U.K (way to go Miss Lumley) (2009)

Second home allowances for MP's (2009)

Change in policy on crime and prison numbers (whatever happened to tough on crime and the causes of crime?) (2007)

U-turn on mixed sex hospital wards (2007)

U-turn on promise not to raise income tax (2005 - by 2008 a new higher rate (45%) had been introduced, in 2009 this rate increased again to 50%)

U-turn on the 10p rate of income tax (2008)

U-turn on the use of synthetic phonics in schools to teach reading (2005)

U-turn on home energy conservation

Lowering of recycling targets for local authorities

U-turn on 1997 promise to reduce the number of cars on Britain's roads

Now what makes this interesting is that in 1997 the incoming Labour Government promised to spend money widening the M1, M6 and M25 - in 2008 Geoff Hoon declared that 'hard shoulder running' would replace widening.

U-turn on not building Birmingham Northern Relief Road (1997 - it actually took a mere six weeks to have a complete change of transport policy on this one)

The Gershon Review (a 2005 review of public sector efficiency in case you have forgotten) that was supposed to save £21.5 billion has saved £3.5 billion

A 20 per cent reduction in carbon dioxide emissions on 1990 levels by 2010

The Golden rules of Fiscal Policy (2005) were dropped in 2008

U-turn on raising then holding then raising fuel duty (2000 onwards)

U-turn on assisting households to connect renewable energy sources to the national grid (2008)

U-turn on the downgrading of the teaching of foreign languages in secondary schools (2006)

Home Sellers Information Packs (HIPS) (in and out more times than a pair of limbs in the Hokey-Cokey)

U-turn on the merger of police forces in England and Wales (2006)

I.D Cards (see HIPS above)

Labour promised a low tax regime that would encourage growth, Britain has slipped from 11th in the league tables for low Corporate Tax rates to 25th.

Since 2008 companies including Informa, Ineos and UBM have moved their holding companies to countries where there are fewer tax planning constraints. Ineos founding director lives near me and he was quoted as saying the company will save €450 million in the next three tax years - they have moved company and the main employees to Switzerland with the loss of less than fifty jobs (which is 50 too many).

The criminalising of forced marriages was dropped after pressure from Muslim groups (2006)

Extension of Sunday trading laws proposed and then dropped

Change of policy on how to spend the National Lottery fund

Plan to give IRA and loyalist fugitives an amnesty dropped after nobody in N.Ireland supports it

Drop plans to close 100 community hospitals (2006)

Change on flexible working arrangements for parents (2009)

DWP change on policy regarding number of years NI contributions required to qualify for state pension

Change of rules to Self Invested Pension Plans after pressure from Lib Dems (2005)

Reduce the number of Quangos from 39 to 19 - they have reduced to 21 at an additional cost of £140 million.

Policy on classification of drugs (see HIPS and I.D Cards)

Change of policy regarding additional tax breaks for married couples (2009)

Cap on level of non EU immigrants (2008)

U-turn on the building of nuclear power stations (1997 against, 2008 for) - mind you David Cameron changed his mind as well

U-turn on all women lists for certain constituencies in General Elections (e.g Burnley)

Electoral Reform

Scrapping of rural affairs ministry (2000)


In addition to the above the Labour party have failed to deliver a staggering 102 promises made in their 2005 General Election manifesto (although you know what I think of them as policy documents) these include:

‘Full employment in every region and nation’ - this is defined as 80% of all people of working age being in work - the latest figures suggest 72%


Labour also famously promised to be manufacturing companies friend, to encourage innovation and the creation of jobs, since 1997 manufacturing as a percentage of national GDP has shrunk from 20.7% to 11.4% (see ONS)

Whilst it hurts me to say it Labour has betrayed the working class in this country, they have punished those on low incomes to such an extent that somebody on benefits who does get a job and who earns around £150 a week will lose their benefits at a staggering rate of 96p in every £1 earned. The system of Tax Credits avoids the issue of the minimum wage (although to be honest given the Conservative attitude towards the Social Chapter and Minimum Wage legislation I don't expect things to improve in that area). Unrestricted immigration from both the EU and beyond has driven down wages, although this is to the benefit of traditional Conservative supporting businesses as much as it is to the detriment of the indigenous ethnic population of Britain.


Footnote: Information freely available about the above using a decent search engine and a curious mind. The Conservative Party blue blog have produced a report on the Labour manifesto of 2005 which can be accessed by typing the words 'broken promises' into the search engine on their home page.