
An institutional intifada is coming to crush a Reform government
This explains why Labour is likely to form a new government after the next election – even if it exhausts its stupendous parliamentary majority, the second largest since World War Two, in much the same way that it is exhausting the nation's finances.
For in a hung Parliament, one must have allies. And Labour has more potential partners than anyone else: the Liberal Democrats, the Scottish Nationalists, Plaid Cymru, Northern Ireland nationalists, Greens and Islamists.
None of these may want to join a coalition government with Labour if one is offered. But they will surely be even more unwilling to form one with parties of the Right.
Meanwhile, the Conservatives and Reform would have only – a few Ulster unionists apart – each other as potential partners, if one assumes that the Liberal Democrats won't work with either. Which would be bigger?
Perhaps by the next election the party of which I'm a member, the Conservatives, will once again be the main party of the Right – especially in the event of a crash in the markets that leaves other parties, with their promises of higher spending and lower taxes, over-promised and under-prepared. But as I write, it looks unlikely. It is no longer absurd to imagine Reform as the larger of the two Right-wing parties in parliament. What would happen next?
Perhaps Nigel Farage would offer the disorientated Tories a coalition, and so swallow up whatever was left of them. For what it's worth, I would prefer a confidence and supply arrangement – partly because I'm a convinced Conservative, even in these unpromising circumstances, and partly because I'm not convinced by Reform.
But regardless of our party political preferences, we should want a future Reform administration to succeed: all of us, because it is in our interest for government to work, and Conservatives in particular, because – as conservatives with a small C as well as a large one – a legitimate Right-wing party should be preferable to a legitimate Left-wing one.
But if parties with experience, like the Conservatives and Labour, find it hard to govern, one without it, like Reform, would find it next to impossible. Here are three illustrations.
On day one, the new Reform administration instructs the Royal Navy to return small boats containing illegal migrants to France as they cross the Channel. Naval officers refuse, asserting that the French will refuse to accept the returns, that there is a risk that migrants will scupper their boats, and that in these circumstances refusing to take them to Britain would breach international law.
On day five, Reform's new Chancellor of the Duchy of Lancaster, a businessman with no political experience, is accused of bullying civil servants. Downing Street's Propriety and Ethics unit steps in. Staffed by civil servants and based in the Cabinet Office, the unit has a formidable reputation. It helped to investigate Nadhim Zahawi, Priti Patel, Dominic Raab and Chris Pincher under the last government. All were forced out, rightly or wrongly.
On day 10, the new Reform home secretary, like Suella Braverman, demands that the Progress flag, which represents the LGBTQ+ cause, no longer be flown above the Home Office. He has no more luck than Braverman, who said later: 'I couldn't even get the flag of a horrible political campaign I disagreed with taken down from the roof of the government department I was supposed to be in charge of.'
There is a fashion on the Right for blaming a 'blob' of unaccountable quangocrats, activist judges, politicised civil servants and outdated international agreements for intensifying Britain's problems. Some Labour MPs, since their party took office, have overlapping complaints. Both underplay the main source of the problem: a House of Commons that is no longer providing enough effective, coherent legislation and efficient, commanding ministers.
But regardless of one's view of the matter, there can be no doubt that a Reform government would be seen, in some corners of Westminster and Whitehall, as illegitimate. And would be met from day one by an institutional intifada.
My impression is that those at the top of Reform think of themselves as Big Men with Strong Views. They certainly have the latter – hence the falling out of Farage and Rupert Lowe. And maybe, in government, they would prove themselves the former. Perhaps a Reform government would beat establishment resistance to a pulp (metaphorically, not literally).
But as matters stand, it looks like Reform that's cruising for a bruising – if it ever makes government at all. Getting the system to work takes time even if it likes the look of you. Tony Blair complained of 'scars on my back' after trying to reform the public sector. The Civil Service came to terms with Margaret Thatcher only in her second term.
Before she won her first election, John Hoskyns, a businessman, devised a plan for government to tackle the problems of the day: inflation, trade union militancy, decline. It was called Stepping Stones.
If Farage is to follow in her footsteps, he needs a modern equivalent: a strategic plan for getting his most radical measures – leaving the ECHR, abandoning the net zero targets, scrapping the Equality Act – through Parliament (where they would meet particular resistance in the Lords) in order to ensure that they gain the democratic legitimacy to which the courts would bow.
During the 1980s, the key question was what a new Right-wing government should do. Today, it's how to do it. Are the Big Men thinking big enough?
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This would set their bill at £5,400. However, if they hadn't made any other capital gains that tax year, they could use their £3,000 annual allowance to cut the bill to £2,400. Selling costs such as an estate agent and solicitors can sometimes be deducted. What is private residence relief? Private residence relief is the name for the tax exemption which means those selling their main home don't pay capital gains tax, no matter how much it increases in value. This is what Rachel Reeves is said to be considering taking away, or making changes to. What is being proposed? According to The Times, people selling their home would now need to pay capital gains tax at the rates described above - but only if their home was above a certain price threshold. It is not yet known how much a property would need to be worth, or how much the 'gain' would need to be, for the home seller to be drawn into the tax net. 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If capital gains tax was charged at current rates, a basic rate-taxpayer couple selling a £561,000 home could face a tax bill of £114,180, after deducting £5,000 for selling costs. However, it may be that a home worth that much could fall under the threshold. Stephen Perkins, managing director at Norwich-based Yellow Brick Mortgages, said: 'I can see a lot of families in London being caught with this higher tax bill. 'It may push more wealthy tax contributors to exodus the UK, which is already a problem following the Chancellor's last budget.' Why is it controversial? Some are terming the increase a 'mansion tax' which punishes people who have worked hard to buy a nice home. Harps Garcha, director at Slough-based financial adviser Brooklyns Financial, told the news agency Newspage: 'The Government's plan will have a massive impact on London and the South East, where many middle-class families have sacrificed themselves for years to build wealth through their homes. 'These homeowners expected to rely on that equity in retirement by downsizing, yet they now face being taxed twice, first through stamp duty and then capital gains. 'Rather than rewarding prudence, this policy punishes those who have worked hard and planned responsibly for their future.' Property experts also say taxing homeowners could would gum up the property market, as people at the top end of the ladder would be less inclined to move. This could increase the number of older people in homes that are too big, and young families could struggle to upsize. If people were less likely to move because of the policy, this might even limit the amount of money the Treasury might raise from the tax. Tom Bill, head of UK residential research at estate agent Knight Frank, said: 'Anyone with a taxable gain would think twice before selling, which would reduce transaction numbers. 'The Government seems to want a predictable flow of revenue that is skewed towards the wealthiest homeowners. 'That would be best achieved by re-banding council tax rather than introducing transaction taxes that change behaviour in the most discretionary part of the property market to the point they fail to raise what is intended.' When could this change happen? This change is reported to be an announcement being tabled for the Autumn Budget, in October or November. It is unclear when the new rule, if it was announced, would come into effect. One potential problem is that any announcement could create a rush of people trying to sell their homes before the new tax was put in place, to avoid paying it. When Rachel Reeves announced an additional stamp duty levy on landlords last year, this came into effect immediately to stop people from doing this. What has changed already? In recent years, both Conservative and Labour governments have made the capital gains tax allowances less generous. The annual capital gains tax-free allowance was £12,300 until April 2023, which meant it was typically only levied on wealthier taxpayers. However, radical cuts to the CGT allowance - to £6,000 in spring 2023 and £3,000 from April 2024 - make it inevitable that many more people will now have to pay capital gains tax. Rachel Reeves also increased capital gains tax for stocks and shares investors in last year's Autumn Budget. The rate charged increased from 10 per cent to 18 per cent for basic rate taxpayers and 20 per cent to 24 per cent for those paying higher rates of tax. This brought them into line with the already higher levies on property. The Treasury's response The Treasury declined to comment to the Daily Mail on 'speculation' about future changes to tax policy. A spokesman said: 'As set out in the Plan for Change, the best way to strengthen public finances is by growing the economy – which is our focus. 'Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8billion and cut borrowing by £3.4billion 'We are committed to keeping taxes for working people as low as possible, which is why at last autumn's Budget, we protected working people's payslips and kept our promise not to raise the basic, higher or additional rates of income tax, employee National Insurance, or VAT.'