Cameron: We need a new conversation about fairness

October 6th, 2010 admin

In his keynote speech to the Tory conference, Cameron will pledge to ‘support people out of poverty, not trap them in dependency’

David Cameron will today say the government’s commitment to fairness means giving people “what they deserve” as he warns benefit claimants they will not be allowed to live off the taxes paid by working families if they are able to work themselves.

Cameron will use his first keynote speech to the Tory conference as prime minister to call for a new conversation about fairness as he tries to draw a line under the controversy caused by George Osborne’s withdrawal of child benefit for the better off.

The prime minister will issue a tough message to the unemployed and the poor by saying: “Fairness means giving people what they deserve – and what people deserve depends on how they behave.”

Cameron, who was forced to apologise to voters yesterday for breaking an election promise over the decision to withdraw the benefit fro 1.2 million higher rate payers, will issue a robust defence of the need to share the pain of cutting the deficit.

Following a backlash against the proposals, which were announced on Monday, the prime minister acknowledged that the move had damaged the party’s commitment to family values and undermined the universalist base of the welfare state, which he had promised to preserve in the election. A Conservative poster during the election had declared: “I’ve never voted Tory before, but I like their plans to help families.”

Citing the scale of the financial deficit, Cameron said: “We did not outline all those cuts, we did not know exactly the situation we were going to inherit.”

He will use his speech today to restate his commitment to recognising marriage in the tax system – something he floated yesterday as a possible way of compensating some of those who will lose out from the child benefit changes which kick in in 2013.

One of the Conservative party’s most vocal critics of changes to the child benefit scheme last night allayed fears of the prospect of a backbench revolt.

Former leadership contender David Davis told BBC’s Newsnight: “You’re far more likely to see a frontbench rethink. When they work through the consequences of what they’re proposing, they might think there’s a better way of doing it.”

Official sources last night said that “we haven’t closed the door” on the idea of extending a transferable tax allowance for married basic-rate taxpayers – promised in the Tory manifesto – to cover the wealthier couples hit by the loss of child benefit. But it was stressed that no decisions have yet been taken.

Extending the scheme to higher-rate taxpayers might push the cost as high as £1bn, wiping out nearly all savings from withdrawing child benefit and rendering the exercise highly costly in political terms for zero financial reward.

Cameron will justify the raid on child benefit by insisting that it is “fair that those with broader shoulders should bear a greater load”. He was given a boost last night when a YouGov poll for the Sun showed 83% of voters backed the move.

While accepting that the government’s goal of eliminating the structural deficit within five years will be “difficult”, he will insist the 7% annual savings it implies for some Whitehall departments is no more than many businesses have done in recent years.

And he will try to claim the mantle of “fairness” for the government, arguing that while Labour have simply thrown money at the poor, the coalition will offer them the chance to get out of poverty.

In comments that hark back to the era of the “deserving poor”, Cameron will say: “Yes, fairness means giving money to help the poorest in society. People who are sick, who are vulnerable, who are elderly – I want you to know we will always look after you. That’s the sign of a civilised society and it’s what I believe.

“But you can’t measure fairness just by how much money we spend on welfare, as though the poor are products with a price tag and the more we spend on them the more we value them.

Fairness means supporting people out of poverty, not trapping them in dependency.”

He is expected to add: “So we will make a bold choice. For too long, we have measured success in tackling poverty by the size of the cheque we give people. We say, let’s measure our success by the chance we give.”

The government will support “real routes out of poverty – a strong family; a good education; a job”, including investment in early-years education, help for troubled families and schoolchildren from disadvantaged backgrounds, recognition of marriage in the tax system and action to ensure that “work pays for every single person in the country”, he will say.

Cameron will add: “Here’s something else about fairness. Fairness isn’t just about who gets help from the state. The other part of the equation is who gives that help, through their taxes.

“Taking more money from the man who goes out to work long hours each day so the family next door can go on living a life on benefits without working – is that fair?

“Fairness means giving people what they deserve, and what people deserve depends on how they behave. If you really can’t work, we’ll look after you. But if you can work but refuse to work, we will not let you live off the hard work of others.”

Cameron will tell delegates that the government needs to “get behind” the wealth-creators whose hard work will get the British economy back on track.

“Wealth-creator” should not be seen as a dirty word or a synonym for a “tycoon in a glass tower”, he will say, stressing his admiration for people who strike out on their own to create a small business.

And he will issue a warning to banks that they must “repay the favour” from taxpayers who bailed them out by restoring lending to British businesses.

“There’s another way we are getting behind business – by sorting out the banks. Taxpayers bailed you out. Now it’s time for you to repay the favour and start lending to Britain’s small businesses again,” he will say.

Government moves to deal with the deficit, keep interest rates low, cut red tape and reduce levies including corporation tax are designed to help wealth-creators, Cameron will say.

But he will add: “I don’t think our job ends there. I don’t believe in laissez-faire. Government has a role not just to fire up ambition but to help give it flight.”

The coalition is “acting to build a more entrepreneurial economy” by creating thousands of university and apprenticeship places and a new generation of technical schools; a Green Investment Bank; high-speed rail links and carbon capture and storage projects, he will say. Conservative conference Conservatives David Cameron Welfare Tax and spending Social exclusion Child benefit Communities Children Hélène Mulholland guardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds

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