One for the Tories’ manifesto in 2015

David Cameron’s comments today that he finds a Swedish-scheme that offers tax breaks for employing domestic workers ‘very interesting’ and would ‘want to look at further’ are, predictably, being attacked by Labour. They are claiming that they are proof that he is ‘out of touch’. But it is, actually, a thoroughly sensible idea.
 
As I wrote back in October, the Cameroons have long been interested in the idea of trying to make childcare tax deductible. The appeal of this policy is that it would make it far more attractive for many highly-skilled — and high-earning — people to return to the workforce. It would also move many child-minders who are currently paid cash in hand onto the books, and therefore into the income tax and national insurance system. These two factors would offset some of the costs to the Exchequer of the scheme. 
 
Given the current fiscal situation, there’s unlikely to be much movement this side on the election on this front.