From a wealth tax to rejoining the EU: Zack Polanski outlines the Green Party’s economic policy
In his first major policy speech as leader, Zack Polanski laid out his vision for the Green Party’s approach to the British economy.
Speaking at a garden center in north London, Mr Polanski took aim at what he called the government’s “failing fiscal rules” as he laid out plans to overhaul the UK’s tax system and ease inflation.
It marks the Greens’ first major intervention in economic policy and comes just weeks after the party scored a historic victory in the Gorton and Denton byelections and surged in the polls.
Mr Polanski, who bases his fiscal policy on three pillars – modernization of fiscal policy, tax policy reform and the cost of living – has vowed to stop “robbing Britain”.
The Green Party leader also touched on the growing uncertainty caused by the outbreak of war in the Middle East, calling on the government to guarantee that energy prices for UK households will not be allowed to rise.
Here’s a look at some of the key positions covered in the conversation:
wealth tax
As part of plans to pay for his reforms, Mr Polanski has laid out his commitment to implementing a wealth tax as a “day one priority”.
He called for a 1 per cent tax on fortunes over £10 million and a 2 per cent tax on fortunes over £1 billion, with the aim of raising around £15 billion a year.
“We know a wealth tax won’t fix everything, and no one has ever acted like it would. But it could be a very good place to start,” he said.
He added: “For a truly progressive government, a wealth tax needs to be a top priority.”
Energy bills amid global shocks
Mr. Polanski began his speech by revealing his stance on the “illegal war” waged by the United States and Israel against Iran and expressed how he believes the government should now approach the global oil crisis.
“This was not a war of self-defense, there was no imminent threat, negotiations were ongoing. As the BBC’s international editor said, this was a war of choice,” he said.
“People in the Middle East fear what Trump and Netanyahu’s war will mean for them and their loved ones, and the repercussions are reverberating around the world as instability spreads and oil prices rise.”
He called on the government to allocate £8.4 billion to prevent households facing a spike in energy bills when Ofgem’s price cap ends; This, he said, could be paid for by “strengthening” the windfall tax and other changes such as equalizing capital gains tax with income tax.
“It is time for the government to act decisively, eliminate the uncertainty that is plaguing people and markets, and protect us from the worst economic effects of Trump’s war,” he said.
Rejoin the European Union
The Green leader criticized the effects of Brexit in his speech and said he still believed Britain should rejoin the European Union.
Outlining the economic effects of Brexit, he said: “The economy is 6-8 per cent smaller than it would have been. Hundreds of pounds added to the average household’s shopping bill. Leaving the EU has been a sledgehammer to an already weak economy.”
Asked later whether he would bring Britain back into the European Union, he said he was interested in voters’ determination to “recognize that Brexit is a disaster for this country, socially, culturally and economically.”
“Yes, I want to see us rejoin the European Union,” he said. “But realistically looking at it more broadly, I think we are much better at improving our relations with our European neighbours, including rejoining the customs union.”
rent controls
The London Assembly member also promised that the Green Party would introduce rent controls to further ease the cost of living.
He supported Green’s moves to include rent controls in the government’s Tenants’ Rights Bill, saying the Green cabinet would do so to “stop rent grabbing and breathe life back into our communities”.
He also backed calls for councils to buy back homes lost in right-to-buy schemes.
“One in six private tenants now rents a former council house, often at exorbitant prices, often partly paid for by the government in the form of housing benefit,” he said.
“Another example of a system that is not only completely unfair but also completely inconsistent. Our Green MP Sian Berry is fighting hard to end this mess and is calling on councils to be able to reclaim homes lost through right to buy.”
Nationalization of water
Mr Polanski also targeted private water companies and vowed to nationalize water in Britain in an effort to “end the robbery of Britain”.
He argued that privatization and deregulation “transformed Britain from a place that made things people needed to a place that made money for people who owned things”.
“Let’s stop paying the privatization penalty and lining the pockets of shareholders, especially water companies,” he said.
“Almost a third of the typical water bill in England goes towards financing shareholder returns and debt payments, compared to around 10 per cent for publicly owned Scottish Water.”
Cancellation of ‘failing’ budget rules
Mr Polanski said the UK’s budget rules should be replaced with “fiscal arbiters” tasked with assessing the debt situation and that the government should “look again” at the Office for Budget Responsibility (OBR).
He said the government needed to break out of the “bond market disaster cycle” that had made the country’s fiscal framework “overly sensitive to market movements”.
The party leader said the government should scrap fiscal rules and instead opt for a panel of experts (so-called “fiscal arbitrators”) to assess debt sustainability.
Turning to the government’s official forecaster, he said Britain needed to “look again” at the OBR. “This was born out of promises to take urgent action to eliminate the deficit and reduce the debt, and it has clearly failed,” he said.
“Proposals such as transforming the Office of Budget Accountability into the Office of Fiscal Transparency are among those presented by the New Economics Foundation and are definitely worth examining.”
