St Matthew’s Epistle on the Economy
Posted by jonathanfryer on Friday, 17th February, 2012
Since Matthew Oakeshott stood down as the Liberal Democrat Treasury spokesman in the House of Lords — almost exactly a year ago — he has enjoyed the luxury of saying exactly what he thinks about the way the Coalition government is approaching the ongoing financial and economic crisis, not least regarding the shortcomings of the Project Merlin approach to banks which have not been lending enough to small and medium-sized enterprises (SMEs), which would be a key element in any sustainable recovery. He has thus attracted a great deal of media attention. In fact, it has been rather useful for the LibDems to have Matthew as an ‘insider-outsider’, with a proven track record in investment management in the City (particularly relating to property), as he is able to speak out about issues in a way that no LibDem Minister could. Matthew comes from the Social Democrat branch of the Liberal Democrat family and still holds his one-time boss and mentor, the late Roy Jenkins, in high regard. He is an enthusiastic supporter of Vince Cable’s proposed ‘mansion tax’ (a tax on homes worth more than £2 million pounds) as a step in the direction of moving taxation away solely from earned income towards wealth. Indeed, a substantial chunk of his speech at tonight’s dinner of the Gladstone Club, at the National Liberal Club, was about taxation, as well as broader financial and economic issues. He said he was a supporter of the Coalition Agreement, but he does not think it has been totally adhered to. And he was very pleased about the work of the Vickers Commission on Banking, but obviously feels more needs to be implemented. Matthew is an ardent European, but interestingly told the Gladstone Club dinner that he thought that Greece ought to be allowed to leave the eurozone and then devalue.