<p>Peter Hain is recognising the realities of modern Labour politics. The arrival of Gordon Brown will signal a shift leftwards by Labour. Their??wish for large sums of money to fight the next election will doubtless lead them to closer links with the Trade Unions, who will probably want a Warwick 2 Agreement. Warwick 1??before the last election was??a deal over??policy. Subsequently the Unions paid?? substantial cash??to the ??party to fight the election.</p>
<p>??Peter Hain decided to pick on bonuses earned by people working in the City of London as an example of the growing disparities of income and wealth in our society. He has not learned the simple lesson that you cannot make the poor rich by making the rich poorer.</p>
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<p>He picks on just one group of people who are rich. Why didn’t he pick on footballers, who are paid huge sums from Beckham downwards? Why didn’t he castigate Russian oligarchs, who come to the UK with vast fortunes to do business here and buy football clubs? Why didn’t he criticise the monarchy for its continued enjoyment of inherited wealth?</p>
<p>His words were carefully picked. He claimed he did not want to tax City success more heavily, nor did he want to regulate it. By raising these spectres, some in his audience will be left wondering if that is exactly what he would like to do, but others above him in the Labour ranks will not yet allow it. Instead he tells the hedge fund managers that they must give more of their bonuses away to charity, or else.</p>
<p>??I am all in favour of the super rich involving themselves in charitable giving, as many do. I do not mind politicians drawing attention to worthy causes they might like to help. I detest the politics of envy, and think it quite wrong to highlight one group of rich people - who are rich by their own efforts.</p>
<p>??Were Peter Hain’s attack to lead on to tougher regulation and /or higher taxes on the City we might discover there is one thing worse than having these highly paid successful people here - and that is not having them here. They do not have to do business here. They have?? quite enough money to buy a penthouse and set up an office in?? a land without Peter Hain.</p>
<p>??To many people struggling to pay the mortgage, the Council tax and all Labour’s other taxes on average incomes, Mr Hain looks well paid and privileged. Perhaps Mr Hain would like to tell us all how much of his income he puts into inner city regeneration, as he is so keen to recommend it to others.
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