localism

Nick Clegg, upon his election as Lib Dem leader, said that he wanted to break what he called the "cosy consensus" between Labour and the Tories that has impoverished Britain's political discourse. With Labour now nicking policies on welfare from the Tories, and both vying to be "tough on the work-shy", now is surely the time to offer a radical alternative.

It is not just their approach to benefits that is backwards in vision, but the whole assumption that "full employment" is the thing we should be aiming for. Such a policy actually highlights even more starkly the difference between being independently wealthy on the one hand and having to work for the basics of life on the other. In an era in which more and more of our tasks can be automated or even exported we should be aiming more to live off the financial assets that past productivity has created.

Liberals have, for a century, harboured the secrets of changing all that. Shamefully, over the past quarter of a century we have dropped every one of those secrets from our policy platform, presumably so we could compete in that "cosy consensus". We are only just on the cusp of really rediscovering the oldest of these...

Three key policies in particular would end this cycle of dependency once and for all. A bold claim for sure, but why not? We have gone through sixty years of the welfare state and are still arguing about the outcomes of welfare, health, housing and education, just as Beveridge was trying to address in his report.

The Single Tax - the one policy we are slowly re-engaging with. Though we seem to be stuck on the idea that LVT is simply an alternative tax, we need to get beyond that and understand that it goes to the very core of our relationship with the planet. Land, economic land that is, "everything in the material universe not created by the application of labour and capital" (so basically the things of nature that we all have to share between the 6bn of us born here), is the third factor of production. David Ricardo pointed out nearly two hundred years ago now that land, especially where it is a monopoly, such as with a physical location or site in the built environment or, say, a section of EM Spectrum that can only be used by one wireless operator at a time, tends to absorb the surplus value created by the labour and capital expended around it that makes it a popular location. Ground rent is created where there is more than one potential occupier that could make good, productive use of a site. It creates a massive transfer of wealth from those who don't own a popular site to those who do, through no effort on the part of the owner of that site.

As a non-land example, the UK government has auctioned off the part of the EM spectrum that carries the new WiMax wireless network signals to a single enterprise, Freedom4 for the whole of the UK. They now hold a monopoly on something that is a gift of nature that anyone else wanting to develop WiMAX networks have to use. They can therefore charge more or less what they like for licenses to others to use that part of the spectrum whilst doing precisely nothing to develop the services that would run on it.

Creating so called "free land" by capturing the value of these natural assets for the common wealth rather than having to tax economically beneficial processes like work and trade is absolutely essential to achieve equity. And the best time to do it would be the bottom of a property cycle. Hint. Hint!!

Citizen's Income - this is the real challenge to the "cosy consensus" that has emerged in the past few days on welfare. It was, I believe, Lib Dem policy up until around 1991. At the top of the recent property cycle there would have been enough land tax (on residential locations alone, setting aside what might be available through commercial, industrial, central business disrict or agricultural locations, airspace, EM spectrum or other forms of economic land) available to pay a citizen's income of about £100 per week per adult and a proportion of that for children depending on age. Further reforms, for example on seignorage - the extraordinary "profit" that creating money as debt gives to the banks that is rightfully part of the common wealth (since the money they "create" is denominated in our national currency) - would enable us to pay for the current health or education budgets if we wanted to, or to add around another £1,000 to the adult Citizen's Income.

People seem to have a problem with the idea of giving everyone an unconditional and non-withdrawable payment like a Citizen's Income because, they say, it will entrench the work-shy in their bad habits, maybe even create more of them. But let's face it, if Joseph Rowntree's lot reckons you need £13,400 to live a basic but comfortable life in the UK, less than half that is hardly going to be comfortable. And it's not meant to be comfortable. It is meant to be hard enough to persuade anyone who wants anything more than the basics of life to do something to earn some additional money. Minimum wage would be scrapped so people would be free to choose to accept a job for whatever they like - just to be able to top up their citizen's income to whatever level they want, but crucially, it would not be withdrawn when people start earning, so there is every incentive for all that nearly ten per cent of the population trapped on various benefit systems to work, even if only a little.

Yes, in the light of campaigns by the tabloids against "benefits scroungers" and the "something for nothing culture" it will be a difficult alternative to sell, but we should be prepared to do it. Think of it the other way around - if we all contribute to the value of locations by our activities around them, why should the dividend from that only go to those who can't work, say? Why not to all of us. It creates a cushion to fall back on in hard times and the ability, even if only for a short while, to be more choosy about the work we accept. No longer do we have to accept the lowest job just to survive. Instead of only the very wealthy gaining financial independence by privatising the collection of land rents, everyone gains a measure of financial security from the common wealth we all contribute to creating.

You could then say that any additional "benefits" must be provided locally, through locally raised taxes and much more accountably than at present. The "parish rate" would have to be used to provide say a basic education for those who were not earning anything more than their Citizen's Income and A&E type health services. But remember, much of the illness in society is because of the sort of poverty that both the Single Tax and the Citizen's Income would eradicate. And not having to pay several taxes on incomes - employers' and employees' NI, income and capital gains taxes - would enable more people to save more of their incomes in productive financial assets for their old age reducing the reliance on a crumbling state pensions system. And, apart from say the armed forces, the troughs at Westminster could be emptied and everyone sent home (and James Purnell would have to find a real job, or discover how life is on the dole perhaps!)

Ownership for All - this third plank of Liberal "redistributive" policy came to the fore in the middle decades of the twentieth century, this is crucial to creating more financial independence for more people. I'm not talking about the sort of free for all sale of state companies as in the eighties, which became in effect a gambling opportunity for anyone who had a few quid stashed away - "Let's have a flutter on Sid" type thing. This is about creating structures in which the workers can share in the success of their employers by becoming part owners. Much more like, say, John Lewis, or, in the seventies, the National Freight Corporation. And things have moved on even since then. New corporate forms such as limited liability partnerships enable different types of partners entitled to different proportions of the profit, not just the providers of the capital.

Again, with the Citizen's Income behind them enabling people to turn down work that does not offer optimum returns to the worker, more and more employers would have to offer the sort of package of benefits that enables ordinary workers to build up a financial stake for the future. These financial assets are fairer than putting all your capital assets in the single basket of one's home, which is not really "net wealth" in any case. More liberal than both socialist style "common ownership" and ownership solely by the capitalist, such partnerships would generate real wealth that can produce an income when you no longer want to work for whatever reason.

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These three measures are, I believe, essential to a truly economic liberal platform. They share, equitably, the common wealth created by us all, and distribute more fairly the ownership of financial assets between those who provide capital and those who provide labour to an enterprise. They would reduce the cost of the basics of life by removing tariffs, subsidies and the private collection of rents and so instantly make people better off. They would leave a vanishingly small number of people genuinely unable to fend for themselves and the "parish rate" system would enable localities to support them while the work-shy would have a hard time surviving only on their Citizen's Income and those who are currently trapped on benefits have every incentive to take up even small amounts of work to top up their Citizen's Income.

It is time for such a revolution, for the Liberal Democrats and for the country. You don't have to be the first country on the planet to do this, but whoever does will instantly become the most liberal and economically just country on the planet and a magnet for international trade seeking to avoid damaging tariffs. We have gone sixty, a hundred, even, if herbert Spencer is to be believed a hundred and fifty years tinkering with redistributive policies involving moving incomes that people have worked to achieve around and still have not achieved the "greater good". The recent press coverage of the Welfare Green Paper shows that the politics of envy and "deserving and undeserving" are still alive and well. It is time to try these different strategies instead of "more of the same" attempts to be tough on the undefined undeserving.

And the biggest prize of all - it would enable us to get rid of vast swathes of bureaucracy and get those state employees into real productive work generating real additional wealth for the country instead of pushing other peoples' around the corridors of Whitehall.

Surely it is a given that we are all different? Size, shape, gender, colour, intelligence, personality, practical ability... So surely the human brain, and mind, are also infinitely variable. So why then do we have clothes, shoes, accessories, food, gadgets, literature, music, art, newspapers, all sorts of media, cars, houses, gardens, holidays, hobbies and pastimes of every conceivable colour, shape, size, sophistication, individuality to suit our needs and tastes and yet, when it comes to nurturing minds, especially young ones, in other words education, the state seems always to want a one size fits all, or nearly all solution we must all be dragooned through?

_{Scary kids from Pink Floyd's "Another Brick in the Wall" video, copyright Columbia/CBS. Is this how we see education?}

Even the current advocates of increased "choice" in education are generally not calling for the sort of individually tailored schooling that might cater for a near infinite combination of aptitude and need in different subjects. No, squeezed onto the cattle trucks of the "skills agenda" at an increasingly early age, our children's precious formative minds are driven through National Curricula, SATs, Literacy Hour, regurgitated standardized lesson plans and a plethora of targets till they get an OFSTED stamp on their forehead to say they are ready to be part of Britains fast changing economy. Or at least, the fast changing economy that was being predicted by, yes, you guessed it, government, a decade ago when they started.

On Saturday I was having dinner with friends who either have children going through this system or looking to have soon. All of them, I think it would be fair to say, would be termed "left of centre" and would never have considered private education or home-schooling previously but are all actively considering it now or would if they had the money. They feel patronized by the system, and treated with varying degrees of contempt by the school and its staff.

But most of all they feel helpless when they can see that their child needs extra help or a different approach in one subject where they may thrive in a totally different subject with little struggle. Such different approaches may not be available in the one school. And the lesson plans used don't vary a great deal from school to school so there isn't a great deal of choice anyway. If they wanted to change schools - as one is trying to do now as a result of their experience - the bureaucracy is stifling.

Oh, this all sounds incredibly expensive doesn't it? How can we satisfy that nearly infinite combination of needs and aptitudes? Turn it around and ask, if we can satisfy a near infinite appetite for different trainers, baked beans and holidays, why can we not produce individualized education - surely one of the most important human needs, even for those of us who tend towards Herbert Spencer's view that the state should not be dictating or providing education at all.

I think we need to consider how to personalize education, from the earliest age; we're not going to achieve any step change in attainment just by adding a few extra teachers armed with standard lesson plans, just by putting a little extra money in the direction of the least well off - though that will no doubt help, assuming they can actually find the package to suit them.

Localism is certainly a part of the answer, as perhaps are things like "free schools" on the Dutch model and an idea expanded on at Regno del fines blog. Why not return the provision of schools much much closer to the families using them - at parish level or something similar sized. Parents could decide amongst themselves in a mutualist structure whether to get in a teacher who's going to teach the children proper grammar or to learn their times tables.

And we should not be so squeamish about the corporatization of education. By which I don't mean the mish-mash of schemes to get token private money into the current system. I mean that education, or at least the "skills agenda", is already a subsidy to business (or it ought to be if the education system produced people business can use). It is corporate welfare. So why not instead expect business itself to contribute directly to nurturing the skills needed in an area - perhaps paying for particular teachers is specialized subjects related to the local economy? It would be more transparent at least than corporate lobbyists persuading a few politicians far away to spend our money on providing them workers, and probably more reactive to changes in the economy.

A quantum leap in the amount of flexibility and personalization of education is what we need. And for government to butt out as much as possible. For surely, we have pretty well reached the situation Spencer predicted:

Up and down the country local authorities, independent retailers and residents complain that rents are squeezing out interesting independent retailers and creating "Clone Town Britain".

Well, I have an idea. This week the Co-operative Group agreed terms to acquire Somerfield supermarkets. There are some, say management, which directly compete with existing Co-op shops and so one or other may be up for sale. One of these is in Headington in Oxford where there is a fairly recently refurbished MidCounties Co-op store on one side of the road and a Somerfield on the other.

Some people are all excited that someone like Waitrose might step up and buy it - and in a sense there could be no better buyer as far as the Co-op goes - the other end of the market and a sort of a worker co-operative in its own right.

But as I was in a social enterprise meeting earlier today my mind wandered to Headington supermarkets (!) and I wondered if, given it is the Co-operative who have bought them, there might be mileage in proposing a sale to a more local group - perhaps a permanent base for an indoor/farmers' market, or a space which, like the Covered Market in town, could provide "protected space" for independent retailers we wanted to see revived in Headington, set up say as a secondary co-op or a community land trust type structure (or even bought by MidCounties from Co-op Group) enabling local people a say in its management, policies and ownership.

It would require some work of course actually to work out whether the relatively recent decline of independent fresh food retailers in Headington for example has been, as often claimed, because of rent and rates issues where such a facility might be able to help by lowering the cost of access. But if it does seem viable would it be worth trying?

Or would Waitrose or Sainsbury still be a more attractive offering?

Many of us will have been alerted by a nice email from that Chris Rennard chap about the fact that Nick Clegg has been making a speech about "decentralization" to the Local Government Association. That's nice. There's a section, as you would expect, on financing local government and, unusually over recent months it explicitly speaks of "local income tax" rather than just "on the ability to pay".

However it's the last sentence of this section I would like to see us explore more:

If we want local people really to decide on their local taxes and how to finance their local government, why don't we let them. Why don't we say, as in America, that authorities can legislate for themselves as to what they want their tax base to be - incomes, land values, restaurant tables, weighing bins, whatever. Already in a sense councils have some power over where they get some revenue. If they are lucky enough to be asset rich they can choose to invest that in whatever assets they like, within reason, and in some lucky cases, as with West Oxfordshire, that could fund as much as half their current council tax requirement.

Tax competition between municipalities seems to me to be something desirable. Each has different characteristics that might make the mix of things they decide to tax more or less useful. The choice of tax regime can do just as much for local economic competitiveness as any other aspect of public administration like planning policy, say.

Here in Oxford City I suspect, though I've not tried to do the sums, that Local Income Tax will mean people lower down the income scale in Oxford will have to pay more Local Income Tax than our "national typical" suggested outcomes because our median household income is depressed by the presence of so many students. Coupled with being an area of such high housing costs, this will be a double whammy for Oxford residents - their properties, now with no tax on them at all, will cost more and they will also have the income tax taken away from them at source.

But altogether, it would be far better than replacing one centrally determined system with another leaving all there to be discussed at local election times the rate of the local income tax. I could see it being much more interesting if councils and residents started talking about what tax mechanism rather than just what rate they wanted to use.

So Nick, there's that comfort zone barrier again - take us beyond it please, give localities a real dose of power and accountability, not circumscribe how they must do it.

I feel I've been tagged in a strange sort of a meme for my thoughts on Oxford's recent local election results by Antonia [From Oxford elections round-up]:

We await with bated breath the thoughts of Stephen Tall, no longer Lib Dem councillor for Headington, his colleague David Rundle, and the third-placed Lib Dem candidate for Headington Hill and prolific blogger, Jock Coats.

Well thanks, she just had to rub it in by mentioning that third place. I am embarrassed and humiliated to have come third. There are of course official post mortems to come yet on the campaign, but whatever their verdict, one simple fact is that I am a "bad candidate". Whatever fresh ideas I may have brought to the council (and I doubt my Labour victor will be doing much of that, sad to say), I cannot escape the fact that I hate knocking on strangers to talk politics with them. So for me, the literature and word of mouth amongst people who have met me outside that context is more crucial than for most. Such glad-handing ought to have happened long before the campaign proper started with voter ID canvassing in late March. And been followed up with a leaflet introducing me properly and extolling my virtues before the cross city campaign started with its more party led focus on whole city issues.

Then there was "that leaflet." On the last weekend of the campaign I had the dubious honour of having a Labour leaflet, apparently partly delivered by Mrs Dromey (I rather hope, Antonia, that you were unaware of that leaflet's existence when we exchanged pleasantries on the Friday evening), using quotes from this blog about drugs policy obviously intended to give the impression that if I won I would probably be found standing outside the primary school handing out various narcotics to the year sevens, or perhaps to their parents! Several opponents have commented that they thought it was one of the worst personal attack leaflets they had seen. I suppose I ought to feel flattered that Labour were sufficiently alarmed by my candidacy to feel the need to drag the contest into the gutter.

You can read it for yourself here. By my reckoning, it at least breaches copyright law (my moral right not to have my copyrighted work treated in a derogatory fashion or in a way designed to be prejudicial to the honour or reputation of the author or director), if not possibly electoral law. Enquiries are ongoing. I am not a sore loser, but I was upset by it. I know it cost me both votes and reputation, even amongst my deliverers.

Anyway, enough of the campaign itself. Will I ever try again? I don't know. For many years, since in fact I was last on the council in 2002, I have wondered whether the present system of local government is fit for purpose. As an ideological descendent of the individualist-anarchists and a mutualist, I find the state, in all its guises, terribly coercive. I believe sovereignty should lie with the individual and he or she should only cede power upwards to representatives over things that they cannot arrange for themselves or in small groups or local communities. Local government is so tied down by Whitehall and Westminster that the current arrangements simply cannot be responsive enough to local peoples' needs.

The main reason I wanted to be on the council was to continue to promote, from the inside as it were, my mutualist agenda of hiving local authority functions off onto social, community led partnerships. The more things compete for the crumbs of council budgets within the tight control of Whitehall oversight the less satisfactory the outcome. Leisure services for example cannot hope to compete in quality at least with private providers while it is within the constraints of council budgeting. Similarly, whilst more difficult, I think the solutions to our housing problems are community led, rather than council, landowner and planning led.

Every time I've lost so far I've come out of the contest wanting to do other things that will make a difference one day outside the council structure. Almost as if to prove we can cope without the psychopaths who are so good at saying the right thing at the right time to get themselves elected. This time it is to continue to promote the social enterprise "alternative" for producing social and public goods and to work on promoting local community e-democracy.

• It will be interesting to watch Labour finally explain where they think there is a "£5m cash crisis" at the city council - reading the latest annual accounts I cannot see it myself. But there's another argument for local government reform - despite us being the tax payer/employers their finances are even more opaque than any company's I've ever seen.

• It will be fun to see Maureen Christian defend the Northway Playing fields from something or other she seems to think threatens them (certainly the only "threat" i heard was my own idea to see if we could fit a cricket square on there by budging up the two football pitches and see if we could get a local cricket team going).

• I think it will be a retrograde step if Labour succeed in removing planning decisions from area committees. They were not perfect there, but I have always maintained that was as a result of the bad legal advice that both sides in any disputed application had the right only to speak for five minutes each - where they have open discussion at area committees they manage to get better decisions and more fruitful interplay between applicant and objectors and a better outcome for both.

• It will also be interesting to see whether the Tories, who, despite not winning a single seat managed to come in second in many wards, and at least the ones in which they tried to put up a full campaign, will be able to keep up that level of work, for example, next year, when their declining reputation in control of the county is up for defending.

• And it will be interesting to see whether this marks the high water point for the IWCA, who lost two of their councillors.

• But I also don't really expect the city council, under any party, to set Oxford on fire with bright new ideas that will markedly change the quality of life for its citizens.

Finally, if anyone has any ideas about what little thank you gifts I can get for two teenaged Muslim boys who managed throughout to deliver most of the half of the ward for which we did not have regular deliverers - not a happy situation to be in at the start of a campaign and one of the first things I hope to put right for next time - I'd be very grateful to hear them! Their father has resisted all my requests for his advice so far!

First, let me welcome all the many new visitors who have been reading my blog, thanks to the free publicity of my Labour opponent's latest leaflet!

In contrast, I and the Lib Dem campaign across the city are focussing on the issues on which the city council can make a difference in local services and stressing our positive record:

• Keeping the council tax down.
• Improving council services.
• Reviewing, and hopefully abolishing, residents' parking charges.
• Improving the quality of private rented housing.
  
• What we have already been doing locally

Let me look at these in more detail:

Keeping the council tax down. Labour and the Greens in Oxford have voted for above inflation increases in the council tax set by the city yet again. We need to maintain pressure on council budgets to force managers to deliver more efficient services without asking more of the hard pressed tax payer. Council Tax is the most unpopular and unfair tax. The Lib Dems would abolish it nationally. Labour have fudged the issue after spending millions (of your money) on a report telling them what we all know.

Improving council services. The independent council watchdog, the Audit Commission, has reviewed the last two years of Lib Dem administered Oxford and given us high praise for improving the state of Oxford City Council and the services it delivers. We have more than doubled recycling and are about to take that to a new level with the pilot introduction in parts of the city of weekly food waste collections which will go to be composted and remove the need to have anything in your ordinary rubbish collection that can go off. We have cut the time council houses are out of action between tenants to just one fifth of what it was under Labour in Oxford.

Reviewing, and hopefully abolishing, residents' parking charges. The Conservative run county council ignored the wishes of residents in Headington Hill and Northway and many of you have told me on the doorstep how unfair you find it that you have to pay to park in your own street. Even those of you without cars and others with driveways to put theirs on understand that this is an extra tax on their neighbours. My Labour opponent opposed my campaign to have the major employers developing in the area pay for implementing a scheme if it proved necessary. Those same PFI developers she was so keen to support have made millions out of the contracts, and millions more through sophisticated financial wizardry while we are paying for what they have imposed on our neighbourhoods. Our streets belong to us - why should we pay twice for using them?

Improving the quality of private rented housing. All too often in Oxford people having to rent their home, and there are lots of us because of Labour's mismanagement nationally of house price speculation, have been used for far too long to accepting substandard accommodation run by landlords who, at times, let homes in a dangerous, unhygienic properties to the most vulnerable people. The Lib Dems in Oxford have started to introduce stronger checks on rented properties going way beyond the Labour government's minimum standards and the small number of only the largest properties they legislated for.

In Northway:

• We have recently agreed a near £60,000 package of investment in the childrens' play area in Foxwell Drive - an important facility that allows younger children in particular to get out and enjoy fresh air and physical activity in a safe, contained environment.

• My colleague Altaf Khan, city and county councillor for the area, has successfully campaigned against Tory cuts that closed the Northway IT hub. Instead the equipment is now in the Northway Community Centre and Altaf is now working towards getting funding to create a pleasant and appropriate space to host the IT hub and get more people learning about and using these fast becoming essential tools of modern communication.

In Headington Hill:

• I have been campaigning against flier and flyposting litter and many, though not all yet, of the venues and promoters are now being more responsible about how they distribute their adverts.

• And I successfully managed to get the city council to take some responsibility for the parking chaos on Pullens Lane caused by the new residents' parking arrangements in other parts of the local area.

I will be campaigning for better, safer, parking arrangements, especially near council built apartment blocks where space at the moment is woefully inadequate, and for new investment in the Northway Community Centre to restore it to a vibrant and well used community facility and hopefully to encourage many more residents to join the community spirit and participate in the sports and leisure facilities in the area. And I would like to help create a "Friends" group for Headington Hill Park and Dunstan Park to get regular users and neighbours involved in managing and developing these wonderful urban green spaces.

But yes, I admit, and am proud to do so, that I am passionate about reducing the dead weight the heavy hand of government at all levels imposes on our lives and communities. I am passionate about those communities instead being enabled to take ownership of local public assets and to meet their own local needs through their own initiatives. And I am passionate about individuals taking responsibility for their own behaviour so enabling us to reduce our addiction to government interference in our lives. And if you stick around a bit and read some more, you'll see I would bring to the City Council innovative ideas about how that could be achieved and financed without adding to the burden of the public purse and the taxpayers' pockets.

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