During this most recent general election campaign, two phrases have found their way into the public imagination: \u2018Elective Dictatorship\u2019 and \u2018Supermajority\u2019.<\/p>\n\n\n\n
When the former Lord Chancellor, Lord Hailsham, coined the phrase \u2018Elective Dictatorship\u2019 during his Dimbleby Lecture in October 1976, he was not being critical of large government majorities. What Hailsham was concerned about was the ability of whoever commanded the House of Commons to control the apparatus of the state.<\/p>\n\n\n\n
As for the term \u2018Supermajority\u2019, this is of no relevance to the political system in the UK. In fact, \u2018Supermajority\u2019 is a term that applies in the context of the federal system in the US and refers to a two-thirds majority in Congress. Such a majority is needed for specific pieces of legislation to pass Congress and is rarely achieved except through cross-party negotiations.<\/p>\n\n\n\n
\n\u201c\u2026 the scale of Labour\u2019s win is huge and the loss for the Conservatives is the worst in the history of that party. \u201c<\/p>\n<\/blockquote>\n\n\n\n
Yes, the scale of Labour\u2019s win is huge and the loss for the Conservatives is the worst in the history of that party. But new Prime Minister (\u2018PM\u2019) Sir Keir Starmer would have the same power if he had a 70-seat majority instead of what looks like a majority of 170 seats.<\/p>\n\n\n\n
Starmer, like all his predecessors, will still be held to account in the Commons by backbench MPs and chairs of Select Committees. The House of Lords will still be the revising Chamber scrutinising and amending legislation. \u2018Sir Humphreys\u2019 across Whitehall will still be saying, \u2018a brave idea Minister\u2019 when presented with draft items of policy. And ultimately the Crown will be there to \u2018be consulted, to encourage and to warn\u2019. None of these constitutional checks and balances are changed by the size of the Labour majority.<\/p>\n\n\n\n
Moreover, changes that were introduced by Sir Tony Blair, Starmer\u2019s (last but one) Labour predecessor as PM, particularly the establishment of the Supreme Court, could act as a further brake on the power of the PM. After all, the then President of that Court, Lady Hale was not aiming at PM Boris Johnson when she ruled against his Prorogation of Parliament in 2019. What concerned her was the misuse of the prerogative powers of the Crown.<\/p>\n\n\n\n
\n\u201c\u2026 some lawyers are already gearing up for action regarding the proposed imposition of VAT on school fees\u2026\u201d<\/p>\n<\/blockquote>\n\n\n\n
Ironically for Labour, given their championing of the European Convention of Human Rights (\u2018ECHR\u2019), some lawyers are already gearing up for action regarding the proposed imposition of VAT on school fees on the grounds that such could breach Article 2 of the First Protocol of that very Convention \u2013 the right to education and the freedom of parents to choose what is best for their children.<\/p>\n\n\n\n
And, as for rumours of a wealth tax, no doubt our new Chancellor of the Exchequer, Rachel Reeves, will be aware that on 6 June, the Supreme Court in the Netherlands ruled that the country\u2019s wealth tax went against the ECHR because it forced savers and investors to pay tax on income they had not earned. The Dutch government is now on the hook to repay billions of euros to taxpayers.<\/p>\n\n\n\n
\n\u201c\u2026 there must be a majority in the House of Commons, and consequently there is by necessity, an \u2018Elective Dictatorship\u2019\u2026\u201d<\/p>\n<\/blockquote>\n\n\n\n
For the government of the UK to function, there must be a majority in the House of Commons, and consequently there is, by necessity, an \u2018Elective Dictatorship\u2019, albeit tempered by constitutional checks and balances. And as for a \u2018Supermajority\u2019 \u2013 it is a concept that does not even exist in the UK constitution.<\/p>\n\n\n\n
We will, therefore, continue to \u2018keep calm and carry on\u2019 as well as urging our clients to talk with their wealth planners to ensure that they are well placed to adapt to whatever comes their way.<\/p>\n\n\n\n
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This page is issued and approved by Bordier & Cie (UK) PLC (\u2018Bordier UK\u2019), which is authorised and regulated by the Financial Conduct Authority (\u2018FCA\u2019) Registered Number: 114324. Bordier UK is a wealth and investment manager dedicated to providing portfolio management services. We offer Restricted advice as defined by the FCA, which means that if we make a personal recommendation of an investment solution to you, it will be from Bordier UK\u2019s range of investment propositions and will reflect your needs and your approach to risk.<\/p>\n\n\n\n
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