£120 billion, article, benefit, benefits, blame, child, congress, Conservative, credibility, credible, cut, defeat, fiscal, gaslighting, George Osborne, government, Harriet Harman, IFS, Institute, Labour, living standard, Mike Sivier, mikesivier, minimum wage, oppose, Parliament, people, politics, progressive, public, regressive, social security, Studies, support, tax, tax credits, taxpayer, The Guardian, Tories, Tory, trade, TUC, unclaimed, union, unpaid, unsustainable, Vox Political, welfare, Welfare Reform and Work Bill
What an amazing piece in The Guardian about George Osborne’s call for “progressive” Labour MPs to support his entirely regressive changes to social security (the only people who call it “welfare” are Tories)!
Will people believe this pack of lies?
The article starts by saying he has urged “progressive” MPs in the Labour party to back his cuts in a major Commons vote today (Monday) on the Tories’ Welfare Reform and Work Bill.
He wants Labour MPs – but more importantly, the electorate, to think that the plan to cut child tax credits (among other measures) is what the public wants, and also builds on “mainstream Labour thinking”.
This is moonshine.
Labour believes that the profits of all our work should be shared out to ensure a decent standard of living for everybody, including those who cannot work but contribute to society in other ways. For example, if you have children, then you get child tax credits because their contribution to society has yet to be made.
Removing the tax credits and lowering the standard of living – as the Conservative chancellor’s plans would do to many people – is therefore the opposite of “mainstream Labour thinking”.
Osborne also calls on Labour to “stop blaming the public for its defeat”. This is typical Tory gaslighting. As a party, Labour has not blamed the public. The prevailing mood in the party is that Labour needs to draw the correct conclusions from the election result and create policies that acknowledge what the public wants, while fitting Labour values.
That’s real Labour values – not George Osborne’s fantasy.
You can tell that Labour isn’t doing as Osborne claims. Nowhere in the Guardian article is any factual evidence provided to show Labour has blamed the electorate for its defeat. Harriet Harman is paraphrased as having said the party needed to recognise that the electorate had sent Labour a message – which is quite the opposite.
Osborne also fails to support his claim that the majority of the electorate support his cuts. The majority of the electorate voted against the Conservative Party on May 7, with the Tories managing to gain only a 24.3 per cent share of the possible vote and a tiny 12-seat advantage in Parliament. That does not indicate majority support for the cuts programme.
The article states: “Osborne sprung a surprise in the budget by proposing cuts to the level of tax credits, but balanced these in part by a rise in the minimum wage to more than £9 an hour by 2020 for those over 25.” Notice that the tax credit cut is immediate, but the minimum wage will only rise to more than £9 per hour in five years’ time. How are people supposed to survive in the years between?
Also, according to the Institute for Fiscal Studies, the cut in tax credits, along with the other cuts that ‘Slasher’ Osborne wants to make, will remove £12 billion from the economy – but the minimum wage rise – when it finally happens – will only add £4 billion.
So the Conservatives want Labour to support an £8 billion cut in living standards for the people who can least accommodate it.
Osborne’s argument that the responsibility for ensuring decent living standards should be rebalanced, from the state handing out subsidies towards employers providing decent wages, falls because he has no intention of making employers pay decent wages.
Osborne also writes: “Three in four people – and a majority of Labour voters – think that Britain spends too much on welfare.”
Are these the same people who think 41 per cent of the entire social security budget goes on unemployment benefits, when the actual proportion is just three per cent?
Are these the same people who think 27 per cent of the entire social security budget is claimed fraudulently, when the actual proportion is just 0.7 per cent?
Are these the people who believe George Osborne’s lies, and the lies of the Conservative Government?
In case anybody is wondering, the figures quoted above are from a TUC poll that was carried out a couple of years ago. It seems that, with the help of compliant media (such as The Guardian?) the Conservatives have succeeded in continuing to mislead the general public.
Osborne continued: “For our social contract to work, we need to retain the consent of the taxpayer, not just the welfare recipient.”
People receiving social security payments are also taxpayers; indirect taxation accounts for around three-quarters of the taxes received by the UK Treasury from the 20 per cent of people in the lowest income group.
The lies keep coming: “For those that can work, I believe it is better to earn a higher income from your work than receive a higher income from welfare.” If this was true, then he would have forced the minimum wage up to a point at which people would no longer need to claim tax credits in order to receive the same amount. He didn’t; he lied.
Osborne goes on to praise interim Labour leader Harriet Harman for capitulating to the Conservatives over child tax credits. There is only one reason he would do this – to undermine support for the Labour Party by suggesting that it really is ‘Tory-Lite’. Shame on Ms Harman for allowing this to happen!
His claim, “She recognised that oppositions only advance when they … recognise that some of the arguments made by political opponents should be listened to,” would be reasonable if the argument for cutting tax credits was sound, but it isn’t – people will be worse-off in this instance. If people were to become better-off afterwards, he might have a point. As it is, it is drivel.
His very next point confirms this: “A previous Conservative opposition realised [this] 15 years ago when it accepted the case for a minimum wage.” The Conservative Party only accepted this case in 2008, under David Cameron – a Tory leader who, when campaigning unsuccessfully for the Stafford constituency seat in 1996, had said it would “send unemployment straight back up” (The Chronicle (Stafford), February 21 1996). Even now, many Tory supporters despise the minimum wage.
Osborne ended with an appeal for “moderate” Labour MPs to vote with his party.
That would be the end of any credibility Labour has remaining, as a party of Opposition.
According to The Guardian, Osborne said: “The proposals are part of a common endeavour by Labour and the Conservatives to implement difficult welfare reforms.” Again, he is trying to make the public think Labour and the Tories are the same. Labour MPs would have to be complete idiots to help him.
Some of the complete idiots in Labour who have already helped him are, according to Osborne, “New Labour work and pensions secretaries such as John Hutton, David Blunkett and James Purnell [who] all tried to reform the welfare system… Alistair Darling [who] says tax credits are ‘subsidising lower wages in a way that was never intended’ [and] Frank Field… [who] agrees the system as it stands is simply ‘not sustainable’ and the budget represents a ‘game-changer’.”
Wouldn’t social security be a little more sustainable if George Osborne spent less time obsessing about wringing more money from those who can least afford to lose it, and more time getting his extremely rich corporate friend to pay up more of the £120 billion a year they are believed to owe in unpaid taxes?
Why isn’t Labour making this point, whenever Tories like Osborne start bleating that anything is “unsustainable”?
Join the Vox Political Facebook page.
If you have enjoyed this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Buy Vox Political books so we can continue
fighting for the facts.
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here: