Economy

The BNP claims it would “nurture and encourage new and existing British industries” by:

  • The protection of British companies from unfair foreign imports;
  • The promotion of domestic competition;
  • Increased taxes on companies which outsource work abroad;
  • The reintroduction of the married man’s allowance;
  • The raising of the inheritance tax threshold to £1 million;
  • The encouragement of savings, investment, worker share-ownership and profit-sharing;
  • Halving council tax by centralising education costs and eliminating multiculturalism spending and unnecessary bureaucracy;
  • The renationalisation of monopoly utilities and services, compensating only individual investors and pension funds. Privatising monopolies does not benefit either the consumer or the country. All that happens is the ‘family silver’ is sold off and monopoly utilities and services are asset-stripped, often by foreign competitors.

Challenge the Economy

Left Economics Advisory Panel co-ordinator and economist Andrew Fisher replies:

These policies are very confused, ill thought-out and at times totally economically illiterate.

The protection of British companies from unfair foreign imports would mean a withdrawal from the European Union, and would leave the UK open to sanctions from the World Trade Organisation. It would also be an incentive for UK manufacturers who rely on imported components to move abroad to reduce costs.

Increased taxes on companies which outsource work abroad would be unworkable. It would be an incentive for companies to fully relocate abroad rather than pay higher taxes for partial offshoring – then the UK Exchequer loses out totally.

The re-introduction of the married man’s allowance would disproportionately benefit wealthy men since they earn more and the raising of the inheritance tax threshold would only benefit a very small minority of wealthy individuals. Only the 3,000 wealthiest families would benefit. This would be a redistribution from the poor to the rich.

Halving council tax is economically illiterate. The administration of education and multiculturalism (whatever that is!) does not account for anywhere near half the council tax bill. The vast majority of funding for all local government comes from central government allocation. Moving administrative costs in education to the centre wold save very little as a proportion of local government spending.

And while their nationalisation plan might be welcomed by some consumers, it would mean the withdrawal from the EU and leave the UK open to sanctions from the WTO.

Andrew Fisher can be contacted for more information at leap@l-r-c.org.uk