We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

On the enduring awfulness of inheritance taxes

Politicians of all stripes like to talk about “sustainability” – although I’ve noticed that some of the enthusiasm for this when it comes to the “green” angle has been dented by rising energy costs and worries about how we keep the lights on when the wind does not blow and sun does not shine. The realities of how to produce energy when fossil fuels are off the table and nuclear is not taken seriously are going to bite us, and hard, in the years to come.

Even so, sustainability is a useful word, and it is a shame that it gets tainted as the word “liberal” does by association with bad ideas. (The same goes for “progressive”, while we are at it.)

Well, one point I come across in my day job in covering business and finance is how family-owned/run firms can often show superior returns, when compounded over time, and be more robust, and more sustainable, than those that don’t have a family connection. That’s not cheesy sentimentality about how a business is better when Grandad, Mum and the cousins are around. (There can be very tricky succession and control issues with families; wealth advisors often earn big bucks advising families in how to resolve conflicts. And we’ve all seen Dallas.) Even so, for all the caveats, family businesses are important. They employ millions of people. In countries such as Germany and Italy, family-run firms have been the norm; the fashion houses, specialist sportscar firms, and many others, have deep and long family connections. Same goes for agriculture and food, for example. Here is some UK family business data that shows how big these firms are, in aggregate.

Well, it seems that one thing that the UK government is thinking of is ending the business property and agriculture reliefs from inheritance tax. At present, the tax – 40 per cent above a “nil-rate” threshold of £325,000 – does not hit if you inherit a family business, including a farm. In the US, such tax is called Estate Tax, and thresholds are far higher than in the UK.

But apparently, Rachel Reeves, the UK Chancellor of the Exchequer, is considering sweeping some of these reliefs away. It means family businesses where the stake in a business are high might get broken up and sold, such as to corporations and private equity firms, when a founder or business holder dies. Family-run farms will be a one-generation gig. And corporates, sovereign wealth funds and big groups such as pension funds will consolidate their ownership of business, including the land. Wealth becomes more centrally concentrated, not more dispersed. This seems a very paradoxical outcome from a supposedly egalitarian government. Maybe Ms Reeves does not understand this point or is indifferent to it.

However, ignorance is only part of it, I think. There’s a general hostility towards inheritance of any kind in our culture today, from my impression. There is a lot of the “tall poppy” mindset around. Years of central bank QE also inflated asset prices, and certain groups did well, but that’s not really what is going on, in my view, because things such as QE are too abstract for the average voter.

I think resentments are given more respect today, when in fact they should be called out. I think we allow jealousy of others’ good fortune to be given the time of day, when in the past that would be seen as a bad thing.

There are many good, consequentialist reasons why this dislike has bad outcomes when used as a motor for public policy, but there are important moral arguments against this attack on inheritance: the rights of those of those who own the property and want to give it to this or that cause are being violated. If I want to give my sons and daughters a business, or a 400-acre farm, for example, that’s my affair, period. Whether those persons “deserve” what I give them, in the eyes of some sort of social justice advocate, is irrelevant. If economics is not a zero-sum game, such demands for redistribution are just thieving.

What inheritance taxes do, at root, is make it clear that ownership of wealth and control of it is at the sufferance of the State. The justifications of insisting on this servile relationship may vary – sometimes by reference to the flawed ideas such as those of a Thomas Piketty – but the underlying position remains.
The argument seems to say that you don’t really ever own anything absolutely and control it. You have to defer to the crowd if it, and its elected representatives, wants your stuff, however virtuously you acquired it in the first place. It is only one step from saying that because we don’t “deserve” our brains or bodies, that we don’t have grounds for objecting to other coercive measures to take the fruits of our mental and physical labour, either at source, or when we die. (The dystopian novel, Facial Justice, by LP Hartley, shows where this leads when it comes to beauty and physical appearance.)

I see little by way of fundamental critiques of this assault on inheritance of honestly acquired wealth. The Tories, now in opposition, don’t really take the discussion to this level; neither do other supposedly more conservative parties in other parts of the world. But the monstrosity of what attacks on inheritance amount to needs to be more widely remarked on than it is.

On the subject of the family and why protecting it is subversive of overweening authority, I can recommend this book, The Subversive Family, by former Downing Street policy unit figure and journalist/novelist Ferdinand Mount. He’s deeply influenced by the Origins of English Individualism, by Alan Macfarlane, for example.

On a more prosaic level, the ever-widening burden of tax in much of the developed world, and particularly in the UK, means that even people who are not by any means well off are going to learn about the joys of inheritance tax and all that goes with it. That might ultimately shift the needle against the tax. But a lot of hard work in changing attitudes is also needed.

Plus ça change…

The big political story in Britain at the moment is the Labour Prime Minister accepting free clothes on behalf of his wife from a benefactor – an act that the cruel – and cruelly funny it must be said – have thought worthy of ridicule.

But would you know it! A hundred years ago (where I live) the big story is also the Labour Prime Minister accepting free stuff from a benefactor. In James Ramsay MacDonald’s case the free stuff is a car (a Daimler no less) and the means to maintain it. At this point things take a turn for the better for Keir Starmer’s predecessor. The benefactor, a Sir Alexander Grant happens to be an old friend of MacDonald’s and also happens to be a biscuit millionaire. Sir Alexander claims that he was moved to his act of unbidden generosity when he heard that MacDonald was travelling around London by Underground Railway which he felt was tiring him out and undermining his efficiency. I suppose the equivalent today would be if his modern-day counterpart had discovered that Sir Keir and Lady Starmer were wandering about in garments made of sack cloth.

By the way, I am not sure what travelling around on the London Underground says about Ramsay MacDonald but I can’t help feeling that it says a lot about the society of the time.

Hello Jim, got a new motor?

Samizdata quote of the day – smaller government edition

“The overwhelming issue facing any UK government is: what do we stop doing? Governments over the last two decades have pretended, especially to the media, that they can tackle any issue that either journalists or lobby groups get upset about. But that is patently impossible within current resources of people, money & political consent.

So what we get are nonsensical policies to ban advertising of junk food – who knows what that is – online or before the evening watershed. Lots of people waste large amounts of time trying to write & interpret regulations that won’t have the slightest impact on the problem of obesity. This is all displacement activity for governments that are clueless and utterly incompetent. All the signs are that the current government is doomed, both because of the personality of the Prime Minister and the inclinations of his party. Since any outsider can read the runes, why would anyone commit money to underpin economic growth without being heavily bribed to do so? That is not a viable way of turning the ship of state around.”

I came across this comment, by a person called Gordon Hughes, in the UnHerd website article about the problems in the current UK government civil service machine and cabinet structure, and thought it was so good and incisive that I take the liberty of sharing it here.

Also, I take the opportunity for another plug for a book that I recommend about how a lot of people, including journalists, seem to think about everything today: Seeing Like A State, by James C Scott.

The Guardian discovers the dead hand of the state

‘The system is the problem, not people’: how a radical food group spread round the world

Incredible Edible’s guerrilla gardening movement encourages people to take food-growing – and more – into their own hands

Pam Warhurst insists she’s no anarchist. Nevertheless, the founder of Incredible Edible, a food-focused guerrilla gardening movement, wants the state to get out of people’s way.

“The biggest obstacle is the inability of people in elected positions to cede power to the grassroots,” she says.

[…]

Her big idea is guerrilla gardening – with a twist. Where guerrilla gardeners subvert urban spaces by reintroducing nature, Incredible Edible’s growers go one step further: planting food on public land and then inviting all-comers to take it and eat.

I doubt this idea would scale up, but if growing food to give to others gives people pleasure, go for it. I cannot bring myself to feel outraged about the odd unauthorised carrot in a municipal flowerbed. And long have I waited to see lines like those I have put in bold type appear in the pages of the Guardian:

But as much as Warhurst’s idea has simplicity and wholesomeness, it also has a radical streak. At its heart, Incredible Edible is about hijacking public spaces – spaces nominally owned by communities, and paid for through their taxes, but administered and jealously guarded by public authorities.

And that is where Incredible Edible meets its biggest challenge: the dead hand of the state.

Samizdata quote of the day – things are going to get ugly

In a previous post – borrowing from C.S. Lewis – I used the word “unconciliatory” to describe Sir Keir Starmer, and I increasingly find it the most appropriate one when thinking about the tenor of governance to which we are now subject. Labour’s victory in the 2024 election was artificial and its well of support is ankle-deep; since only one in five of the electorate actually voted for the party it was already unpopular at the very point of taking office. Politicians who were not thoroughgoing mediocrities would, finding themselves in such a position, be prudent. They would recognise their priorities to be consolidation, calmness and concession – their aim would be to lay stable foundations for future governance with quiet competence. But the current crop do not really understand the word ‘prudence’, or like it. So we are patently not going to get that. We are instead going to get a programme of improvement imposed upon us from above: eat your greens, do your press-ups, and do as nanny says (oh, and hand over your pocket money while you’re at it).

This will all unravel very quickly. People will not get with the programme, because people never really do, and certainly not when it has been designed by those they actively mistrust and sense have nothing but disdain for them. And therefore, in short order, as the truth dawns on the Government that the people are not on board with its plan of action, the sense of disappointment it feels is going to turn to rage. This will in turn have the inevitable result, as the rage becomes nakedly apparent, that the population will start to kick back – mulishly, and hard.

David McGrogan

I highly commending this article, read the whole thing.

Samizdata quote of the day – exhume William Shakespeare

“The first thing we do, let’s kill all the lawyers.”

Have I or have I not done anything different here? I don’t suppose they will be exhuming William Shakespeare any time soon, but what she said was no worse than this. It was words, nothing more. We are now firmly in an authoritarian police state. A substantial custodial sentence for hurty words is the kind of thing we thought was confined to the old Soviet Union, but it looks as if the ghost of that monstrosity is alive and well in modern Britain.

Longrider

It’s what the state does to Tommy Robinson that matters

Tommy Robinson being interviewed by Jordan Peterson presents me with pair of people I am not predisposed to like. But set aside Robinson’s thesis about Islam in the UK for a moment, which you can agree with or not, I contend what the state does to try and shut him down is actually the critical issue. Indeed, I would say if even a small fraction of what he says about security services is true, we have rocketed past the point where normal politics can be relied upon for redress and remedy. Watch and listen with an open mind. We are not heading towards a police state, we are well and truly in one.

Samizdata quote of the day – Labour is just going where the ‘Conservatives’ were heading

Starmer has also always been happy to be accused of running a ‘nanny state’. Much of the agenda that he and his Health Secretary Wes Streeting have revealed more widely for the NHS borders on that, with a focus on preventive healthcare rather than waiting until a patient needs acute (and more expensive) treatment. But an interesting question is whether the new government would have gone for this kind of ban had the Tories not already suggested it. As Katy explains here, the fact that Rishi Sunak championed the move first has made it much easier for Labour to take steps to crack down on smoking more generally. It is, she says, plausible that this approach could be extended to fast food and alcohol consumption. In fact, it wouldn’t make much sense if Starmer talks about the cost to the NHS of smoking but takes no action on obesity, even if that problem is far more complex than the relatively easy win of making it harder to smoke cigarettes.

And it will be much harder for the Conservatives to argue against those further moves because they were the ones who started all this off – in legislative terms, at least.

The Spectator

Sir Robert Peel’s principles of policing – a reminder

Given the complaints recently about “two-tier” policing of crime and disorder in the UK, I thought it worthwhile to set out this summary of the principles of policing as set out by former Home Secretary and reforming British statesman, Sir Robert Peel (1788-1850), also renowned as founder of the modern Conservative Party (Tamworth Manifesto of 1834), remover of Corn Law tariffs, reformer of banking (with some remaining issues), and general all-round good guy of British history:

1, To prevent crime and disorder, as an alternative to their repression by military force and severity of legal punishment.

2, To recognise always that the power of the police to fulfill their functions and duties is dependent on public approval of their existence, actions and behaviour, and on their ability to secure and maintain public respect.

3, To recognise always that to secure and maintain the respect and approval of the public means also the securing of the willing co-operation of the public in the task of securing observance of laws.

4, To recognise always that the extent to which the co-operation of the public can be secured diminishes proportionately the necessity of the use of physical force and compulsion for achieving police objectives.

5, To seek and preserve public favour, not by pandering to public opinion, but by constantly demonstrating absolutely impartial service to law, in complete independence of policy, and without regard to the justice or injustice of the substance of individual laws, by ready offering of individual service and friendship to all members of the public without regard to their wealth or social standing, by ready exercise of courtesy and friendly good humour, and by ready offering of individual sacrifice in protecting and preserving life.

6, To use physical force only when the exercise of persuasion, advice and warning is found to be insufficient to obtain public co-operation to an extent necessary to secure observance of law or to restore order, and to use only the minimum degree of physical force which is necessary on any particular occasion for achieving a police objective.

7, To maintain at all times a relationship with the public that gives reality to the historic tradition that the police are the public and that the public are the police, the police being only members of the public who are paid to give full-time attention to duties which are incumbent on every citizen in the interests of community welfare and existence.

8, To recognise always the need for strict adherence to police-executive functions, and to refrain from even seeming to usurp the powers of the judiciary of avenging individuals or the State, and of authoritatively judging guilt and punishing the guilty.

9, To recognise always that the test of police efficiency is the absence of crime and disorder, and not the visible evidence of police action in dealing with them.

Samizdata quote of the day – the record of the authorities defies denials of two-tier policing

Victims are blamed, pressured into keeping quiet, and whistleblowers are pursued. In short, after an initial flurry of activity, we have taken the Rotherham vaccine and become inured to the plight of our young girls, who are foolishly looking to us in hope of salvation, imploring us for help and daily praying for justice – a vain yearning in today’s Britain.

Mentioning the scandal carries a “branding” sentence, which an increasing number of people feel unable to bear, preferring to throttle the source of the sound of suffering than to deal with the root of the problem.

One thing is for sure: it is for us, not the authorities, to judge them on their record.

The mother in Wakefield lived through two-tier policing, as have many thousands of other desperate souls. That is a fact.

Alex Story

Samizdata quote of the day – When you scratch a member of the liberal intelligentsia, an authoritarian will bleed

We’ve all heard the prevailing narrative in recent weeks. The riots that hit our towns and cities were the consequence of a mix of ‘inflammatory rhetoric’ and ‘disinformation’ from malicious actors. Elon Musk, Tommy Robinson, Andrew Tate, Nigel Farage – all these individuals have been depicted as the James-Bond-style villain responsible for the mayhem.

This misguided theory has repeatedly been advanced by various liberal sophisticates on social media – people who always appear so desperate to flaunt their ‘progressive’, high-status opinions (the better to win kudos from their peers, of course).
[…]
What it all shows is that if you scratch a member of the liberal intelligentsia, an anti-democratic authoritarian will bleed. We see time and again that, when it comes to the crunch, the liberal ‘good guys’ are as illiberal as the worst despots.

Paul Embery

Samizdata quote of the day – the new ‘National Wealth Fund’ is catnip for useful idiots

Media reaction to the National Wealth Fund has, in general, been positive, though (predictably) The Economist was critical. Interestingly, The Guardian did not appreciate the fund’s misleading name. Probably the most glowing responses came from the Financial Times. Many might think that this, as well as the various big names involved in the formulation of the policy — including former Bank of England governor Mark Carney and the Chief Executives of Aviva, NatWest, and Barclays — reflects the fact that this policy is well-formulated and fundamentally sensible. They would be wrong. As we have seen, there is nothing sensible about the majority of the ‘preliminary’ sectors chosen.

Pimlico Journal