Liberal Democrats should approach high pay with caution

Behold the online storm as the left grab hold of the High Pay Commission’s report, and resort to Ed Miliband style ‘predator’ rhetoric. I suggest you stand well back, as the whirl of self-righteousness may knock you down.

Before the usual criticisms are thrown at me, let me say this: There can be little doubt that fundamental flaws in both the banking sector and the wider economy exist. However, that was fatally combined with a spendthrift Labour government, and it proved devastating to our economy, and for my generation in particular. Simply blaming those at the top of business for the“malaise at the very top of our society”, as the Commission’s chair does, is simply not good enough. Let me also say that, having worked for a campaign associated with The Equality Trust, I also know there is a strong evidence base that indicates greater equality improves our society, and am sympathetic to this basic premise. I also absolutely believe in transparency, and so would have not problem in publishing pay ratios either, as recommended in the repot.

However, resorting to the politics of envy, which is what this report and the wider debate does, achieves absolutely nothing. If you really care about a fairer economy, a more balanced economy, let’s look properly at the scam of unpaid internships in major industries, which exploit young people and force them to be grateful for working for free. Let’s look at pushing up that income tax threshold faster. Let’s look at the possibility of a proper living wage, not just a minimum one.

While we’re at it, we should remember were the report comes from too. This is directly lifted from the FAQ’s on the Commission’s Website:

Who set it up?

The Commission was established by the pressure group Compass with the support of the Joseph Rowntree Charitable Trust. The Commission is independent from any political party or organisation. It is non-partisan in its approach and will draw conclusions based solely on the findings of the Commission.

It claims to be non-partisan, but this seems fairly unlikely given it is research from an organisation formed by a Labour think tank. Ed Miliband must be delighted, but the myopic debate prompted by this report is little more than a red herring. The Liberal Democrats must not fall into the trap of resorting to Miliband’s nonsense ‘predator’, good vs evil style rhetoric. Sadly, it seems Vince Cable is already succumbing to temptation. I still remember his ridiculous spivs conference speech.

Sorting out the problems in our economy requires a continuing radical, liberal approach. To offer any less would be reneging on our responsibilities as a party of government.

You want to bash the rich, have fun. It might make you feel better for a while. But the real crisis is at the bottom of our economy, not the top, and that is what the Liberal Democrats in government must seek to fix.