The Liberal Democrats’ pre-manifesto, launched at their party conference in Bournemouth, contained the usual ingredients of soggy liberalism and sops to interest groups. But a radical group within the party, setting out their agenda in the recently published Orange Book, would like things to turn out differently – recasting the party in an older tradition of laissez-faire liberalism. Understandably, the Liberal Democrats are keeping these philosophical differences under wraps.
A liberal agenda for government
The Liberal Democrats have a proud liberal heritage. We believe that freedom should be the guiding principle of all government policy and that people should be enabled to make decisions for themselves.
Unlike the Tories, this does not mean we are blind to social injustice. We recognise that many people are socially disadvantaged and that this makes them less free. A Liberal Democrat government would fulfil its duty to help them.
But, unlike Labour, a Liberal Democrat government would guard against unfettered government intervention and ‘nanny statism’. Liberal Democrats believe that excessive government interference, particularly in the economy, can lead not only to inefficiency but also to social injustice.
Economic liberalism
The Liberal Democrats believe in the power of competition, consumer choice and private sector innovation. It is business – not government – that creates jobs and wealth.
A Liberal Democrat government would therefore aim to make Britain the most business-friendly economy in Europe, and would scale back on government intervention in the economy and costly subsidies to failing industries. Abolition of the DTI would be the first step towards achieving this, and we would privatise all remaining nationalised industries, including the Post Office.
Another priority would be tackling the problem of over-regulation, which is strangling many British businesses and making it harder for them to compete. To achieve this, we would make better use of sunset clauses and regulatory impact assessments, and would press the European Union to limit the amount of regulation coming from Brussels.
Liberal Democrats also believe in fair taxation, not high taxation. Citizens should be free to spend as much of their own money as possible and the tax system should be simpler, with fewer bands and fewer disincentives to earn.
Finally, a Liberal Democrat government would work to eliminate all remaining trade barriers – a measure that would in particular benefit the developing world. We believe that trade, not protectionism, offers the best route out of poverty.
Liberal Democrats accept that there is a role for government in creating opportunity through education, and guaranteeing human dignity through health and welfare. But while we believe there should be universal access to these vital services, there is no reason why government should provide them itself.
In health and education, we would therefore legislate for greater choice, competition and consumer power. All hospitals would be given independent status, and all patients would be given a choice of health insurance fund, paid for by the state. Likewise, all schools would be made independent, and money would follow pupils through the school system so that parents, not the state, can decide how their children should be educated.
On pensions and welfare, we believe people should take more responsibility for their own security. We would continue to provide minimum levels of support through the state pension and other benefits. But we would also expect people to take more responsibility by saving for the future. We would abolish means-testing, which acts as a disincentive to save, particularly for those on low incomes.
Liberal Democrats believe that political decentralisation is essential if we are to guarantee individual freedom. We would therefore devolve many more responsibilities to regional and local government, abolishing several Whitehall departments in the process. We also believe that regional and local government should be given muchbroader revenue-raising powers, including the ability to vary income tax.
Our belief in decentralisation also applies to the European Union. Liberal Democrats do not believe in ever more European integration. Yes, co-operation is needed in some areas like the single market, foreign policy and the environment. But in others, there is no justification for Europe-wide action. We would therefore press for the repatriation of powers on agriculture, fisheries and social and employment policy.
Liberal Democrats reject ‘nanny statism’. We believe that people should be free to make their own decisions – and their own mistakes. We would therefore promote civil liberties, and would reject intrusive policies like identity cards. We would also reverse the illiberal government’s ban on hunting.
On crime, our liberal beliefs are too often misunderstood. Liberalism does not mean always standing up for the criminal rather than the victim. Liberal Democrats recognise that high crime levels undermine the freedom of the vast majority of law-abiding people. We would therefore be tough on crime, investing more in the police and taking strong action against criminals – including longer custodial sentences if necessary.
Liberal Democrats believe that international action is essential to protect the environment and to bring a halt to global warming. But, too often, governments have relied on prescriptive regulations to achieve that goal, which strangle business and often do little to protect the environment.
We believe that a market-based approach to environmental protection would be far more effective. Instead of demanding that companies achieve arbitrary emissions reductions, we would press for the establishment of a comprehensive, international emissions trading regime. This would give companies much greater flexibility in deciding how to reduce emissions, while also ensuring that they pay the full cost of the environmental damage they cause.
On transport, the London congestion charge has been a successful example of how market-based mechanisms can deliver environmental gains. We would encourage many more local areas to establish such schemes, and would also aim to set up a national road-pricing scheme. This would make drivers far more responsive to environmental concerns than the current system of fuel duty.