Thursday 22 October 2015

The confrontation between government and opposition over Tax Credits is exposing the need to reform the House of Lords

David Lloyd George took on a Tory Landowner dominated House of Lords in his efforts to pass his Liberal 'People's Budget' of 1909. Photograph: Statue of David Lloyd George in Parliament Square by Matt Brown (License) (Cropped)
Attempts earlier this week by Labour, Liberal Democrat and Crossbench Lords to block the much derided Tax Credit cuts, where derailed yesterday due to fears of sparking a constitutional crisis (Wintour, 2015; Wintour, 2015{2}). Opposition parties where warned against threatening contravention of established parliamentary conventions by the Commons Speaker John Bercow (Wintour, 2015{3}.

The move marked an odd moment for progressive politics in the UK. Since Liberal Prime Minister David Lloyd George sought to take on the House of Lords in his attempt to pass his 1909 budget, the supremacy of the Commons over the Lords has been clearly defined: the Lords cannot impede the government's supply bills, which are concerned with taxation and government spending and, through the later establishment of the Salisbury Convention, the opposition should not block government manifesto promises for which their election is seen as a clear mandate.

The decision of progressives to use the Lords, against which Lloyd George had struggled when it was controlled by an overwhelming Tory majority, represents a severely pragmatic choice.

While the actual threat of constitutional crisis from the Lords blocking Tax Credit cuts has been called into question - on account of whether the changes actually counts as primary, budgetary legislation due to an election campaign promise not to cut them, and no reference to cutting them in the Conservative manifesto (Daily Politics, 2015) - there is a need to stop and consider the implications beyond the legal minutiae.

Both the Labour Party and the Liberal Democrats (in particular) have proposed, considered and attempted reform of the House of Lords in the past. Liberal Democrat attempts where foiled during the last government, due to obstinacy from Labour and Conservatives (BBC, 2015); and during the last election campaign Labour pledged to replace the Lords with a Senate of the Nations and Regions (Labour, 2015).

The willingness of the opposing parties to even approach a risk of crisis certainly shows is the depth of opposition to the Tax Credit changes, even growing with the Conservative Party itself (Watt, 2015), and the limited legitimate instruments available to the opposition to challenge their passage.

But the hypocrisy it engenders also marks out the need for reform. The UK has an entire, massive and expensive, unelected chamber that cannot act. Any of its votes, and the legitimacy of any of its actions, can be called into question because its assembled numbers are not elected. This is an unacceptable state of affairs.

Contrary to Prime Minister David Cameron's belief that the issue has passed by and should be left alone (Wintour & Watt, 2015), it remains of importance. Issues like Tax Credit cuts are too important for the legislative instruments through which they pass, or in which they are opposed, to be anything less than transparent, clearly purposed and above controversy.

Whether that means establishing a directly proportionally elected upper chamber, or one representative of the nations and regions - in either case holding a longer term view, as opposed to the shorter term community and municipality based Commons - change is needed.

The problem facing the progressive parties, is what to do with those institutions in the meantime. The pragmatic decision - that has clearly been made by Labour and the Lib Dems - is to continue using those instruments as they presently are, despite their problematic nature, because the policies they oppose demand a response and they are the only legal instruments at their disposal.

It is a pragmatic position that Lloyd George would likely have agreed with. Despite being a reformer, Lloyd George was prepared to flood the Lords with newly ennobled Liberals to get his way and, later, the Welsh Prime Minister was still prepared to go into coalition with the Conservatives to pursue his policies.

Their are alternative paths, such as the decision by Justin Trudeau - Liberal leader and newly elected Prime Minister of Canada - to withdraw the Liberal whip from unelected Liberal senators (Mackrael & Wingrove, 2014). Yet such idealistic statements risk getting in the way of practical politics, like opposing policies that have been alleged to risk impoverishing millions of people.

The only solution to this conflict between idealism and pragmatism is to reform the Lords, along with broader electoral reform - for which the necessity is demonstrated by the fact that the controversial Tax Credits policy can only be pursued by the government because the Conservatives hold an unrepresentative majority of seats. Unless there is real reform and clear representation, the policies of any government and the tactics of any opposition will continue to be challenged and undermined.

References

Patrick Wintour's 'Government facing defeat in Lords over tax credits'; in The Guardian; 20 October 2015.

Patrick Wintour's 'Commons Speaker warns Lords not to block tax credit cuts'; in The Guardian; 21 October 2015{2}.

Jo Coburn & Andrew Neil's 'Daily Politics, 21/10/2015'; on the Daily Politics, on the BBC; 21 October 2015.

'Nick Clegg: Lords reform plans to be abandoned'; on the BBC; 6 August 2012.

'Labour announces plans to give regions and nations greater power and a stronger voice in Westminster'; Press Release from the Labour Party; 31 October 2015.

Nicholas Watt's 'Lords forced to back down on tax credits motion as Tory rebellion grows'; in The Guardian; 20 October 2015.

Patrick Wintour & Nicholas Watt's 'David Cameron to appoint more Tory peers to the House of Lords'; in The Guardian; 28 July 2015.

Kim Mackrael & Josh Wingrove's 'What Trudeau's Liberal caucus shakeup means for the Senate'; in The Globe and Mail; 29 January 2014.

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