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Goodbye, Baroness Thatcher – perhaps now we can put ThatcherISM to rest as well

The Iron Lady: This is probably the most iconic image of Margaret Thatcher from her tenure as Prime Minister of the UK. "The lady's not for turning," she warned. Unfortunately for Britain, she kept her word.

The Iron Lady: This is probably the most iconic image of Margaret Thatcher from her tenure as Prime Minister of the UK. “The lady’s not for turning,” she warned. Unfortunately for Britain, she kept her word.

It isn’t every day that a former Prime Minister dies – and even rarer that we witness the death of one who affected the UK in such a fundamental way as Baroness Thatcher.

As I write this, the outpouring of tributes and discussion of her achievements in the mass media are in full swing – mostly concentrating on what their editors would define as the ‘good’ she did for our country. Most of the TV channels and papers are run by right-wingers, of course – so you can expect them to be dripping with adulation.

However, as I commented on Facebook yesterday evening, street parties broke out in Brixton and Glasgow, celebrating her demise (I understand celebrations took place in Leeds and Liverpool, and possibly many other cities, towns and villages across the UK). They had bands, they have people handing out milk (remember, she was the ‘Milk Snatcher’ before she was PM), they were chanting “Maggie, Maggie, Maggie – dead, dead, dead” and popping champagne.

There was a humour – a sense of wit – about it, not only in what was going on (the milk, for example) but also the locations (there were riots in Brixton during her tenure, and Scotland was where the hated Poll Tax was piloted).

But I said it is also tragic “that a person should do so much harm in her life, and be so hated by the people she was elected to represent – more than 20 years after she left office – that her death is marked by spontaneous celebration and, literally, dancing in the streets”.

That comment thread has now been read by more than 15,000 people (usually I get one or two thousand through my Facebook door). A question I posted has received more than four times as many votes saying she harmed the country as say she improved it (47 – 11).

What DID she achieve?

According to Paul Krugman’s blog, it’s debatable whether she achieved anything, in terms of the economy.

“Thatcher came to power in 1979, and imposed a radical change in policy almost immediately,” he wrote. “But the big improvement in British performance doesn’t really show in the data until the mid-1990s. Does she get credit for a reward so long delayed?”

Good question. In fact, her two-and-a-half terms in office constituted an extremely rocky road for those of us who had to live through them (and I was one)! My opinion is that this is because she was not interested in improving Britain’s NATIONAL prosperity.

No – the Thatcher crusade was ideological. She wanted to thrust her form of Conservatism so far down everybody’s throat that it would take decades for any other way to be accepted – and she succeeded beyond her wildest dreams.

Let’s look at the policies that most clearly demonstrate this ideology.

She sold off Britain’s council houses. The cheap, rented social housing that accommodated those of us who earned the least were sold wholesale during her premiership – and not replaced. Mrs Thatcher is said to have had a dream to create a Britain full of homeowners. Sadly, this is not what happened. Instead, the majority of council houses were sold off to private landlords who then rented them out again – at higher cost. The lack of replacement council houses meant that the country’s poor had no alternative but to rent at the higher level, meaning they had less disposable income than before the sell-off. The rise of housing associations to fill the social housing gap has meant an extra layer of bureaucracy between the tenant and their elected representatives, who can now claim that any abuse of power by landlords is nothing to do with them.

She broke the unions. Some say this was vitally important, as the unions had become too powerful and were able to bring the country to its knees whenever they felt like it, calling strikes on a whim – and there is mileage in this. But it’s also possible to say that business bosses and members of the Thatcher government provoked confrontation in order to justify the erosion of union power – this is certainly true in the case of the mineworkers’ strike of 1984-5. There is an argument that National Coal Board chairman Ian MacGregor was paid millions of pounds to engineer the confrontation. The result was that the unions were stripped of many of their rights, meaning working people had nobody left to stand up for them in wage negotiations. It is a direct result of this that workers’ wages have risen by just 27 per cent over the last 30 years, while bosses’ salaries have multiplied by 800 per cent, and the gap between the country’s richest and poorest has grown, massively.

She stripped the UK of its manufacturing industries. What can be said about this? Thatcher saw much of Britain’s private industry as uneconomical, unprofitable. She oversaw a switch to service industries and finance – boosting this with bank deregulation. It is this move, which took place in the USA at around the same time, that led to the financial crisis of 2008 and the austerity measures which the current Coalition government is using to hammer the poorest in the modern UK.

She privatised national utilities. The share sell-offs were, on the face of it, intended to make it possible for every British citizen to buy shares in the companies that provided power, telecommunications, water and so on. In practice, the poorest couldn’t afford it, and those on middle incomes saw the shares as a short-term investment, believing they would be able to sell their shares on for many times the amount they paid, a few months later. This has led to the vast majority of shares in the privatised utilities falling into the hands of – you guessed it – the very, very rich. Another publicised intention of the sell-off was that, as private companies, these organisations would deliver a better service at a lower price. This was a fantasy; it never materialised. Look at British Rail (which I admit was privatised after Mrs Thatcher left office, but is a great example of the trend): Not only do users pay much more for their tickets now than when it was publicly-owned, but the subsidy paid to the private rail companies by the government has multiplied massively as well. Result: Rich shareholders become very much richer. Poor users struggle to cope with rising prices.

Can you spot the trend here?

She changed taxation to make the poor pay more. I refer, of course, to the infamous Poll Tax. Mrs Thatcher claimed in 1989 that a flat-rate tax for local services – with everybody, rich or poor, paying the same amount – was fairer. The public – who had already been fooled by the council housing sell-off, the public utility sell-off and the breaking of the unions, and were therefore sick of being hoodwinked – claimed otherwise and refused to pay. The public won and Mrs Thatcher was consigned to the waste basket of politics soon after. The current Coalition government is working hard to ensure that this policy is carried out, with the so-called ‘Pickles Poll Tax’ – the council tax support scheme that ensures everybody pays council tax. Meanwhile, efforts to ensure the rich pay less are going ahead, with Corporation Tax cut by a quarter during the lifetime of this Parliament, and the ‘Millionaires’ Tax Break’ cutting the top rate of Income Tax from 50p in the pound to 45p.

She kept Britain out of the Euro (or more accurately, European Monetary Union). This was her one sensible policy, history has proved. There is much to be said in favour of a free-trading zone where countries can trade amongst themselves at favourable rates – but monetary union cannot be a workable part of that, when the countries involved are at hugely varying stages of development. Mrs Thatcher was right to oppose it and the fact that the UK is not mired in the current Eurozone crisis, except as a member of the EU with trading interests to protect, is to her credit.

By now, dear reader, you are probably wondering how Mrs Thatcher lasted so long, if her policies were all so divisive, and so clearly trained on impoverishing the lower classes. The answer is simple: She was excellent at public relations. The fact that she was the UK’s first-ever female Prime Minister was a huge publicity boost for her, and she built on it by nurturing an image of herself as ‘The Iron Lady’ – a Prime Minister of firm convictions who knew that what she was doing was absolutely right for Britain (“Right for the goolies of Britain,” as Graeme Garden joked on Radio 4’s I’m Sorry I Haven’t A Clue at the time). The PR-reliance was clear from the start – the Conservative Party hired the Saatchi & Saatchi agency to run its 1979, 1983 and 1987 election campaigns. It is notable that this partnership dissolved during the 87 campaign and Thatcher’s premiership ran out of steam shortly afterwards.

To sum up, I’ll leave you with the comment I placed on the New York Times website, in response to that paper’s piece about Mrs Thatcher’s death:

“Having lived through the Thatcher years and the changes her government perpetrated on British society, allow me to assure you that there is little reason to heap praise upon her.

“The entire thrust of her thinking was to ensure that the rich and powerful became richer and more powerful, and the poor – especially those with intelligence and/or ability – would be denied any chance of prosperity or success.

“What’s the American Dream all about? Life, liberty, the pursuit of happiness? Everybody created equal, with opportunity for each according to their ability or achievement, regardless of social class or circumstances of birth?  The Thatcher government is a rejection of all those aspirations, as is the current Cameron government, which is its natural successor.

“The Thatcher government deprived people of their liberty by creating a large underclass of unemployed people and using the threat of unemployment to depress workers’ wages.

“As a result, they did not have the disposable funds to take advantage of the sell-offs of national utilities such as British Gas and British Telecom.

“She sold social housing but did not build any to replace it.

“She used the police as a tool of political repression, rather than as guardians of the law.

“She used taxation in a similar manner, crippling the poor with punitive measures such as the hated Poll Tax – a flat-rate charge, effectively a tax cut for the rich, but a huge tax hike for the poor.

“That was her fatal error, of course.”

Goodbye, Baroness Thatcher. Hopefully your passing will trigger a reassessment of your career, so that we can all move on from the political nightmare your policies created for the vast majority of middle- and working-class people whose only political mistake lay in entrusting their future to you.

Thousands turn out for Bedroom Tax protests – but what happens next?

MPs Andy McDonald and Grahame Morris spoke against the bedroom tax at the Middlesbrough demonstration.

MPs Andy McDonald and Grahame Morris spoke against the bedroom tax at the Middlesbrough demonstration.

According to the Daily Mirror, 26,000 people across the country took part in the 50-odd protests against the Bedroom Tax, all staged earlier today (March 30) – so we can reasonably assume the real figure is much larger than that.

According to Charlie Kimber on Twitter, at least 10,000 were in Glasgow, and the photographic evidence seems likely to bear that out, so my guess is that, for once, the Mirror had taken a conservative (small ‘c’) stance.

The Mirror article had crowds gathering in Trafalgar Square, waving banners and posters with the message ‘Stop bedroom tax’, wearing T-shirts carrying “angry” messages for David Cameron, Gideon George Osborne and Iain Duncan Smith. The nature of these messages was not revealed but I think we can make educated guesses of our own.

Whitehall was closed to traffic as, chanting “Can’t pay, won’t pay, axe the bedroom tax,” the protesters made their way to Downing Street.

In Liverpool, the paper said, demonstrators declared an “uprising” during their march.

The Glasgow anti-bedroom tax demonstration. How many people do YOU think attended?

The Glasgow anti-bedroom tax demonstration. How many people do YOU think attended?

A BBC Scotland report reckoned the Glasgow demo attracted two and a half thousand people, including Bill Scott from disability campaign group Inclusion Scotland (in fact he was in Edinburgh), who was quoted as saying two-thirds of UK households affected include a disabled person – rising to four-fifths in Scotland.

And “disability rights activist” Susan Archibald headed up the Edinburgh demonstration. On Twitter, afterwards, she said, “I was so proud to lead the bedroom tax protest in Edinburgh today. I stood up for all people who were either too poor or ill to attend.”

I particularly enjoyed the IBS – did I say IBS? I meant IDS – quote the BBC Scotland article used:

“Mr Duncan Smith defended the reforms during a visit to Edinburgh on Wednesday.

“He said: ‘It is unfair on taxpayers, it is unfair on those in over-crowded accommodation and it is unfair that one group of housing benefit tenants cannot have spare bedrooms and another group are subsidised.'”

From that last sentence alone, we can only guess what goes on in a mind that seems, clearly, deranged. But let’s just juxtapose his comments in unfairness with another state subsidy, discussed in this blog yesterday:

“The government thinks it is more fair to deprive people of the money to pay landlords for their homes than it is to cap rents.

“The government thinks it is fair to take money from people who cannot move into smaller accommodation, more appropriate to their needs, because it simply hasn’t been built.

“But then, the government thinks it is fair for MPs like James Clappison (Conservative, Hertsmere) to have 24 homes and yet still claim £100,000 in second-home expenses between 2001 and 2009. That’s £12,500 per year. People on Housing Benefit get less than £100 per week, meaning less than £5,200 per year.”

Together we can smash the tax: People in Swindon show their support for the protest.

Together we can smash the tax: People in Swindon show their support for the protest.

The protests constituted a nationwide display of disgust at the Coalition government’s attempt to find yet another way for the poor to pay for the mistakes of the rich.

But what happens now?

Historically, governments don’t pay much attention to rallies and protests. The only real way to hit this lot is in the wallet. Look at recent history for a good example: the Poll Tax.

Mass rallies were held, with attendances far greater than those today. The government didn’t bat an eyelid. But when people refused to pay up, and were prepared to face court action, fines and even imprisonment for their principles… I think we all know how it ended. The tax was replaced and the then-Prime Minister was removed.

The trouble is, as you’re probably thinking, this time the government isn’t expecting the people to pay; it’s simply deciding not to pay the people. So how can you fight that?

Okay, try this:

  • If you’re in a council house, you probably got it after being on a housing list. Your council put you there. It is reasonable, therefore, to argue that your presence is due to a decision by your council and not your own choice – therefore it is the council that should be paying for any ‘extra’ bedrooms as defined on the government’s hastily fudged-together list. Take your council to small-claims court over it, the instant you get a letter of denial.
  • If you’re in a house belonging to a social landlord, why not tell them you’re perfectly prepared to move, but for reasons of your own choice – maybe you’ve got a local job, for example – it must be to a place near your current location. What do they have? My guess is, not a lot. Be difficult about the kind of accommodation you’re willing to move into. When you decide they can’t give you what you need, take the government to small-claims court. Clearly, you are occupying this property because there is no appropriate social housing within a reasonable distance, and that is because the government has not allowed enough such accommodation to be built. You are not at fault; the government is.
  • If you are disabled, inquire of your landlord about the cost of removing any living aids you have from your current residence and installing them elsewhere. Do they have spare buildings with disabled access? What if you are a person who must rely on particular routines – moving house will disrupt those, and therefore seriously impact on your standard of living. Appeal against any change that could affect your lifestyle adversely.
  • Whoever you are, if you have made any improvements to your home, seek legal redress for the cost of those improvements, should you have to move. You might not actually be moving now, but you want the money because you don’t know when you might have a chance to move, and it will be harder to prove what you’ve done if someone else is in there, making their own changes.

None of these – and they’re just off the top of my head – are likely to win any court battles, but that’s not the point. The aim is to tie up the government, local government, social landlords and anybody else involved in this nightmarish policy, in ever-more-convoluted legal shenanigans. These things will cost them money. If enough of you get involved, they’ll cost a considerable amount, in fact. Then there’s the question of manpower that will have to be diverted from other work to deal with it. That will cost – as will employing more staff to take on the extra burden.

Government departments are already straining under the burden of appeals against other so-called benefit reforms. Ministers won’t have much tolerance for dealing with these matters because they think they have better things to do.

But you don’t.

What could be more important than fighting for your home?

A lesson in taxation for Smith and Shapps

bedroomtax

Grant Shapps and Iain Duncan Smith (Vox‘s Monster of 2012, let’s not forget) delivered woeful performances on radio and TV respectively, during the weekend – discussing the Bedroom Tax.

That’s right – the Bedroom Tax. Not the “spare-rooms subsidy”, not the “under-occupation subsidy” – the Bedroom Tax. The tax on bedrooms that is being levied on some of the poorest people in the land, who cannot move to smaller premises because a previous Conservative administration stopped them from being built.

Tweedle-Shapps and Tweedle-Smith clearly need a lesson in what taxation actually is. The sad part is that they probably think they delivered good performances.

Appearing on BBC Radio 4’s The World This Weekend, Shapps said: “Labour have very cleverly deemed this to be a tax; of course it’s exactly the opposite to a tax. It’s a spare-rooms subsidy, that’s being paid through the benefits system, on a million empty bedrooms in this country, which makes no sense.

“We’re not using the housing we have in this country in a proper way… What we can’t continue to do, and we can’t afford to do, is pay for a million empty rooms whilst we’ve got a waiting list that doubled under the previous administration and with so many people in desperate need of a house at all.”

Mr Smith, on The Andrew Marr Show said: “We have in social sector housing a very large number of people in houses where they have many more bedrooms than they actually need… Meanwhile we have over a quarter of a million people in overcrowding and a million people on the waiting list, trying to get into housing.

“The last government let house building fall to the lowest level since the 1920s… What we want is those that are under-occupying their properties, we need to help them to be able to move to property that they would occupy-”

Eddie Mair, standing in for Andrew Marr, interjected: “You mean force them?”

Smith plunged on: “What we’re saying is, ‘Look – you can stay where you are, but if you do, you have to pay more.'” (In other words, yes, he means “force them out”).

Mr Mair again: “But cough up. We know you’re very poor, but pay more.”

Smith was determined: “People… who rent in the private sector under housing benefit – they’re not allowed to have extra bedrooms. They’ve never been. So they are only paid, in the private sector, for the number of bedrooms they occupy.”

Mr Mair, an astonished inflection in his voice, spluttered: “But the point of social housing is to help-”

Now Smith fell back on the real reason for the change: Money. “Look, the taxpayer is paying about £900 per household to help people stay in social housing.”

Put these things together and we get a clear picture of what’s going on. First, a bit of history:

Back in the sunlit days before Margaret Thatcher first won an election, local councils were permitted to build and maintain social housing stock. I know this seems an alien concept now, but they were actually allowed to build houses in which poor people could live, for a rent that they could meet.

Then the Thatcher government came into office and she decided to sell off council houses at discounts of up to 70 per cent. Of course, take-up was huge. People believed they would be able to sell the properties on at a later date – for a profit – and go further up the housing ladder, and this appears to be what happened. The houses that were sold on again tended to go to professional private landlords, who then rented them at a higher price than the councils who originally owned them.

The policy raised more than £20 billion for the Conservative government, but it never allowed that money to be ploughed back into council house-building. That money has disappeared; we don’t know what was done with it (in fact, if anybody does know where it is, please write in and let us know)!

My understanding is that councils had expected to be able to use the receipts for a new house-building programme but then, by one of those “coincidences” – and I put that word in quotation marks for a very good reason; I don’t think they are coincidences at all – for which the Tory Party should be infamous, another policy was introduced – the Rate Cap.

Local taxation at the time was done by a method known as the Rates. We’ve had Poll Tax and Council Tax since then (and will soon have the Poll Tax back, thanks to Eric Pickles and his evil, misnamed little ‘Council Tax Reduction Scheme’) so many readers may not remember them.

The idea was to stop councils from spending more than the Tory government thought they should, by limiting the amount of money they could spend every year, and creating a blacklist of councils that transgressed, with associated penalties.

Result: any new council house-building was stopped dead.

It’s a situation that has continued to this day. During the New Labour years, there was a push for new social housing with a condition on planning permission for new estates, that a certain proportion of the new build had to be “affordable” housing.

Result: We now have a huge amount of land with planning permission for estates that have never been built, as developers are reluctant to create housing for which they won’t be able to screw maximum profit from the buyers.

So, successive governments have created a situation where the queue for social housing is very large. Even though the plan during New Labour’s time had the best intentions, my opinion is that it was scuppered by the greed of developers.

Now we have the Nasty Party in office again, and of course they want to screw as much money out of the poor as possible.

They don’t want to build any new social housing; they want people to rent from the private sector, who will try to screw the highest amount out of them.

In order to push them out, they have invented this new term, “spare-rooms subsidy”, or “under-occupation subsidy” – that never existed before. They have declared that people – who are only occupying the houses that were available to them when they went into social occupancy – are now receiving that subsidy for any spare bedrooms they may have (no matter whether there was a reason for having those rooms in the past, or may be one in the future). And in April they will remove an arbitrary amount – nobody knows how they arrived at the figure – from tenants’ housing benefit.

Result: As Eddie Mair said, these people will be forced out – into the arms of private landlords, who will charge more while they will receive less help from the government.

The money saved will, we’re told, be used to help balance the national finances, which is a policy of this government.

So, getting back to the point – the removal of this recently-dreamed-up “subsidy” is taxation, because the money removed from UK citizens will be used to finance government expenditure. That is the definition of tax.

Mr Shapps, Mr… Smith: Look it up.