There are two serious flaws in Keir Starmer’s plan to fund public services by growing the economy.
While you’re watching this clip, have a go at working out what they are:
Keir Starmer says Labour will fund our public services through growing the economy. As Victoria Derbyshire points out, this means that if the necessary growth isn't achieved, there will be no extra money for public services. #BBCLauraKpic.twitter.com/dDjE1ED1rK
Firstly, economic growth doesn’t necessarily mean more money for the Treasury.
In order to put new public money into services, a responsible government (that isn’t borrowing) will need to tax a similar amount out of us all – and a responsible Labour government would ensure that such taxation is weighted to put most of the burden onto the rich and profitable businesses.
Has Keir Starmer publicised plans for a new taxation structure for the UK? No. He has been courting businesses because he wants their donations. In turn, this means they’ll want tax breaks from him, or they’ll threaten to remove their financial support.
So it is hard to envision much extra cash making its way into the public purse under Starmer (although we would see more of it than under the Tories, who want to cut both taxes and public services to the bone).
Worse still is this: Keir Starmer has no contingency plan if the economy does not grow.
Three times, in the interview above, he was asked to explain what he would do then – and all three times, his only answer was that he believes the economy will grow.
Faith is a wonderful thing, but you can’t fuel the economy of a developed western nation on hot air and fantasy.
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Inflation has dropped to 6.8 per cent – but this is not an endorsement of Conservative government policy.
The Tories have spent months claiming that they cannot pay the money they deserve to public sector workers (including the junior doctors who were on strike over the weekend) because it would worse inflation – but today’s fall comes alongside an increase in average pay.
Looking at the small print, we see that none of this pay rise has gone to people who actually need it; instead it has further fattened the bloated bank accounts of high-paid company executives and other friends of the Conservative government.
So the lie that wages drove up inflation exposed as media announces largest increase in wages and sharpest drop in inflation. Proving the crisis we are still suffering is one of greed of those at the top of society inc the banks energy corps and others.
But that doesn’t matter; wages have increased and inflation still came down. The Tory lie has been exposed as – in the language of Peter Stefanovic – bollocks:
🚨UK News shows🚨
Government Ministers are doing the rounds today suggesting the new inflation figures prove the Prime Ministers decision to impose crappy real terms pay cuts on public sector workers was correct
The clip includes a few other interesting take-outs:
Workers in the UK are £11,000 a year worse-off.
2022 was the worst year for wage growth in almost half a century.
Average real wages in the UK will still be lower in 2026 than they were in 2008.
So it is impossible for public sector wages – or any other wages paid to employees – to have had anything to do with inflation figures.
In fact, according to the extremely non-socialist International Monetary Fund, the largest contributor to Europe’s inflation over the past two years was rising corporate profits cause by companies increasing their prices by more than the costs of imported energy. Look at your own energy bill over the past few years and compare the increases with the costs of energy and you will see the factual accuracy in this.
Increases in private sector wages may increase the price of goods – because companies would factor those rises into their prices.
There is evidence of this in the new figures: strip away the cuts in energy and food costs and core inflation is one per cent higher.
But that doesn’t happen in the public sector where, for example, healthcare is free at the point of use.
And the public sector labour force is only 17 per cent of the total workforce, meaning its pay increases have a lower effect than anything happening with the 83 per cent in the private sector.
Of course, prices are still increasing, meaning that people will blame that on increasing wages and demand another interest rate rise from the Bank of England to curb spending by the little people (you and me, as opposed to the big bosses who have actually received the pay boosts).
I struggle to grasp the point of such a move as it is more likely to cause a recession than stabilise the economy. The precipitous rise in interest rates set by the Bank has not affected inflation at all, and conventional wisdom suggests we will not see the result until 18 months after the first one was imposed. With inflation already coming down of its own accord – as was widely predicted by people like economist Richard Murphy – this could be disastrous.
So when the Tories come out with outrageous nonsense like this…
Great news that inflation has fallen from 7.9% to 6.8% 📉
Halving inflation is our number one priority – and through tough but responsible decisions – we’re on track
… I am glad to see responses that put it into the proper perspective, like this:
Spin ! The news ie inflation is slowing.. Spin Strip away energy & food costs & core inflation is 1% higher. Spin Wages are level with or exceeding inflation. Spin Unpacking the figures shows it only pertains in the higher salary bracket.
Sadly, the message is unlikely to get through to the general public, thanks to the biased priorities of our right-wing social media platforms. Look at the number of views the Tory propaganda has received, in comparison with those collected by Clare’s response.
Finally: at least someone out there can laugh about it. Read this:
Each year, one group of public sector workers achieves a pay settlement that sets the benchmark for union wage negotiators. This year it's the royal family, who got a 45% pay increase.
Sadly for the story, even though the Royals are technically working in the public sector, they are right at the top of it, so their pay rise comes in as equivalent to those of the fatcat company execs.
Still, I don’t see anyone talking about the inflationary effect of this massive increase, so it adds to the evidence that public sector pay does not affect inflation and the Tories have been feeding us bullsh*t since the public sector strikes started, if not before.
Try to remember this amid the barrage of inadequate and misleading reporting by the BBC and the rest of the Tory media.
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David Cameron: he told you you couldn’t afford the services that were once considered the bare minimum required in the UK, while funnelling the money that would have paid for those services to his rich friends. It has been going on for years.
It’s a good question, isn’t it?
Why are people who might broadly be described as socialists routinely ridiculed and patronised for ‘immaturity,’ ‘delusion,’ ‘utopianism,’ ‘naivety,’ ‘dreaming,’ and on and on – just for wanting a fairer society?
Martin Odoni tackles this in a new Critique Archives article, in which he states:
The idea behind this is the little-questioned assumption that being a socialist means believing in Utopia, and that socialists are therefore attempting to achieve the unachievable. The thing is, socialism has never been about making the world a perfect place, but only about making it a fairer place. A better place where no one is placed under unnecessary life pressure. Does that really sound wildly unattainable, or undesirable?
Of course it isn’t.
And the fact is that we had a much fairer society, here in the UK, within This Writer’s lifetime – and I’m not all that old.
The problem is that a succession of neoliberal governments – both Tory and Labour – have eroded that fairness away in the name of greater profit for the richest people in society.
They have privatised public utilities to make their services exclusive to people who can afford to pay higher prices for them, rather than a right that we all deserve. Did you not realise that this is the reason your heating bill was so high over the winter?
They have changed the tax system to ensure that the poorest people pay the largest proportion of their earnings. Rishi Sunak is the richest man in the entire country, and he pays a smaller proportion of his earnings in tax than a nurse.
They have cut average pay for employees while enabling bankers to take home huge undeserved bonuses.
And they have done these things to take money out of the economy and put it into private, tax-free bank accounts where it cannot be used to improve the quality of life of the nation as a whole.
This is the plan.
And while they have done it, they have been telling you that the services you once took for granted are now unaffordable.
It is the biggest, dirtiest lie in UK politics.
It has caused countless deaths – think of all the people who have died because their benefit claims were denied and they were too sick or disabled to defend themselves. Think of everyone who died of Covid-19 because the Tories were busy funnelling money that should have been spent on protective equipment and medical aid into the bank accounts of their friends, in return for nothing.
And they insult you by telling you anybody who thinks these deaths should be stopped is a naive dreamer. How do you feel about that – and what are you going to do?
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Rishi Sunak in Parliament: he should check his facts before speaking – or was he just sneaking out a lie and hoping we wouldn’t notice?
Conservative prime minister Rishi Sunak seems to have over-emphasized his party’s achievements in local government, as This Writer pointed out in a tweet:
A Tory backbencher puts down a non-Tory council as a "rag-tag bag" of independents and greens. #RishiSunak says Tories keep down council tax and provide public services but this is not true. Look at Guildford! #PoliticsLive#PMQs
I mentioned Guildford because the situation there was highlighted on Twitter recently, as follows:
Tory Guildford Council raised Council Tax by max amount possible, pay its chief executive (who it calls managing director) £607K & has £32m in reserve.
But it still cut services with public toilet closures, Citizens' Advice grant cuts & a day care centre was closed.
So in this local government area, the Tories have increased council tax to the limit and have been cutting services – the exact opposite of the claim in Prime Minister’s Questions.
What’s the situation in your local government area?
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The Bank of England: don’t believe its claims about inflation.
Wage increases for striking public workers won’t increase inflation, no matter what Tory MPs say, because the government won’t add them to the cost of any products.
That’s the claim below, anyway – and it seems a good one.
The government creates money (well, orders it from the Bank of England, which then lends it to the government… it’s an over-complicated process, really) and uses taxation to keep the supply of cash within the economy at a reasonable level, thereby controlling inflation (as much as it can; the current situation is a special case, mostly caused by Brexit and foreign influences).
So it should be possible for the government to pay striking nurses (for example) as much as they want.
For commercial enterprises, matters may be different – but that’s only a possibility too:
To anyone arguing that taxes will necessarily have to increase to “pay for” public sector increases, that’s not where the government gets its spending money from…
or as little as it wishes, but in doing so, it (maybe without realising it) is setting the price level. If it spent 10% more each year on the same quantity of goods and services it IS going to cause inflation to be around 10%, unless it can force down the prices of everything
I had a similar thought – at least some of the increased wages would be spent in the economy. But, some might also be saved or used to pay off debt, plus it will all (eventually) be taxed back anyway without necessarily increasing tax rates.
But this depends on greedy private enterprises deciding to raise their prices because they know people have more money to spend, which is poor business; taking people’s spare cash away the instant they get it means they won’t be able to support as many different parts of the economy as they would otherwise and ultimately the lot would overbalance (which is what it’s doing now, in fact).
Also, I didn’t notice prices falling when the government was stamping on everybody else’s wages.
Finally, I notice the International Monetary Fund is saying wage-price spirals are historically rare:
And wage price spirals are very rare in the historical record, say those looney lefties at the IMF. https://t.co/THfX8jAxzO
So what’s my verdict on the Tory claim that paying back to public sector workers the wages that have been taken away from them over the past 13 years will cause another inflation spike?
Business secretary Grant Shapps explained the need for a new law demanding “minimum service levels” during strikes – with a pack of lies.
The trick was in the way he framed the situation.
He claimed that the aim was to protect lives and livelihoods – that the right for nurses and ambulance workers (for example) to strike should not come at the expense of the lives of people across the UK.
And he said the wave of strikes sweeping the UK had been caused by the invasion of Ukraine by Russia’s Vladimir Putin, and by the Covid-19 crisis that created huge backlogs in NHS healthcare procedures.
See for yourself:
In fact, as Labour’s Angela Rayner pointed out, the strikes were caused by the government’s own policy of running the NHS (to use the same example) into the ground, starving it of resources and forcing employees to seek alternative jobs, simply to make ends meet.
She said people had been dying while waiting for ambulances long before ambulance workers took the decision to go on strike – because of delays caused by Tory defunding and de-resourcing.
In fact, ambulance workers had continued to work, coming off the picket lines in order to respond to emergency calls. Shapps’s legislation was jeopardising that.
Excess deaths were at their highest level since the Covid crisis, she said – because of staffing shortages caused by the Tory government.
Livelihoods and lives were already being lost, she said. Everybody wanted minimum service standards – but it was the government’s job to provide it (implying that the government had deliberately chosen not to).
Again, see for yourself:
Rayner was correct; Shapps had been telling untruths.
This Site has been reporting on failures in ambulance responses for years – since long before the Covid crisis or the invasion of Ukraine. Likewise with the shortage of nursing staff due to low pay.
Take a look at some of the articles from previous years – firstly on nursing:
The Tories have been demolishing public sector pay since they came into government in 2010. They know a low wage bill is appetising to private firms when public services are privatised. And that’s the end goal of Tory policy – certainly on the NHS.
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UK Chancellor Jeremy Hunt has said “eye-watering” decisions on tax increases and public service cuts will be made in his Budget on Thursday. But can we trust him to make the right choices?
Labour’s Chris Bryant doesn’t think so. On the BBC’s Politics Live, he pointed out just a few of the financial disasters inflicted on the UK by a Conservative government and raised fears that Hunt will demand more from the people who have the least.
Watch out for the party political nitpicking from Conservative Siobhan Baillie, who doesn’t have a leg to stand on but still tries to undermine the solid points Bryant makes.
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Liz Truss: her lunatic economic ideas created an economic black hole. Jeremy Hunt’s attempts to fill it are likely to harm us all – including people who say they can’t be bothered with politics.
This is another story about how politics affects you, even if you don’t want anything to do with it.
Councils in England are warning that the cuts Jeremy Hunt is likely to force on them – in a desperate bid to fill the financial black hole that Liz Truss created with her daft neoliberal trickle-down economic plan – will mean the cancellation of everyday services.
They mean services they provide that help you do the things you need to, every day.
The BBC is reporting that a survey of county councils suggests bus services, home care for the elderly and climate change projects are most likely to face the axe.
Other services under threat are leisure centres and parking.
So you will be faced with the added expense of driving to work – and spending a lot of time in traffic jams because many more vehicles will be on the roads.
If you have elderly relatives who need care, then you’ll be the one providing it. While their pensions and possibly other benefits will help financially, your free time will be wiped out.
And obviously any project that actually helps reduce the threat of climate change is vital for our future existence. Who knows what could be cancelled that may otherwise change the world for the better?
You won’t have anywhere to go to relieve the pressure on you because all the leisure centres will be closed.
And you wouldn’t be able to drive there anyway because so would all the car parks.
All because Liz Truss couldn’t do her sums, because 12 years of Tory rule made the UK vulnerable to energy and food price inflation, and because the Tories had spent all that time cutting council funding to the bone, so there is nothing left to tackle emergencies.
Council funding from central government – which makes up the vast majority of the money councils use – has been halved by the Tories since 2010.
And there are more services facing cuts: road maintenance, home-to-school transport, and opening hours of libraries and recycling centres may all be cut. Charges may be introduced to use public toilets and may be increased in car parks. You may be forced to wait longer for your rubbish and recycling to be collected (which may create a problem with vermin).
Apparently the best idea the Tories have is to raise the cap on council tax increases so local authorities can charge already-impoverished residents even more money for the meagre services they continue to offer.
And the Tory government of Rishi Sunak seems to be in denial. A spokesman has said Westminster gave £3.7 billion to councils last year, to shore up services. But that was before inflation went through the roof. How much was actually needed to maintain them at their proper level?
You won’t hear an answer from Downing Street. The press office there is all about damage control, not factual accuracy.
And when I mention damage control, I mean controlling any damage to the reputation of the Tory government – not controlling damage to the fabric of UK society.
Damaging our society has been Tory policy since before they slithered back into government in 2010.
But we still have people who say they’re not interested in politics and they don’t think politics have anything to do with them.
Someone should create a checklist to demonstrate exactly how badly they already have been affected by this country’s political choices – and how much worse it will be in the future.
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Pittance: key workers have put up with pathetic pay rises – if their pay can be said to have risen at all – for far too long and are ready to quit because of it.
Around one third of key workers in the public sector (32%) have already taken steps to leave their profession to get a job in another field or are actively considering it, according to new TUC polling published today.
According to TUC analysis, that means around 1.8 million public sector workers are seriously thinking about quitting their jobs for good.
In both education and health and social work, the proportion of key workers who have taken steps to leave or are actively considering it is around the same, at about a third of the workforce (34% in education and 31% in health).
The new TUC polling, conducted by YouGov, comes as the union body warns ministers that public services are facing a “mass exodus” of key workers unless ministers deliver “decent pay rises” for key workers.
The government imposed significant real terms pay cuts on key workers in the public sector earlier this year, sparking a wave of ballots for industrial action across education, health and local government this autumn and winter.
Unison, RCM, NASUWT and NEU started balloting their members this week.
Pushed to the brink by low pay
The government’s decision to hold down pay for key workers in the public sector is worsening the public sector recruitment and retention crisis, according to the TUC – highlighting the new poll findings.
Almost half (45%) of key workers in the public sector say the government approach on pay has made them more likely to leave their job in the next one to three years.
For workers in health and social care, the number rises to 50%.
Of those that say they have taken steps to leave or are considering leaving, around half cite low pay (52%).
Feeling undervalued (47%), a poor work life balance (33%) and excessive workloads (31%) are also major factors.
Latest data shows that NHS England is operating short of almost 130,000 staff due to unfilled vacancies. This represents a vacancy rate of 9.7 per cent.
In the education sector, one in eight newly qualified teachers (NQTs) leave the profession after one year in the job, with almost one-third of NQTs (31%) leaving within their first five years.
The union body says that these unfilled vacancies, on top of a decade of underfunding, has left public services “cut down to the bone” – placing huge amounts of pressure on public sector workers.
Brutal decade of pay cuts
The union body says key workers across the NHS face another year of “pay misery” after more than a decade of having their wages held down by successive Conservative governments.
Recent TUC analysis shows that many frontline staff in the NHS will see their pay packets shrink this year in real terms:
Nurses’ real pay will be down by over £1,100 this year
Paramedics’ real pay will be down by over £1,500 this year
Hospital porters’ real pay will be down by £200 this year
Maternity care assistants’ real pay will be down by £600 this year
The TUC says that this year’s pay cuts come on top of a brutal decade of pay cuts for key workers in the public sector.
Recent analysis by the union body shows that in real terms:
Nurses’ real pay is still down £4,300 compared to 2010
Paramedics’ real pay is still down by £5,600 compared to 2010
Porters’ real pay is still down by £1,300 compared to 2010
Maternity care assistants’ real pay is still down by £3,200 compared to 2010
In the education sector, teachers have already lost around a fifth of the value of their pay due to government pay cuts between 2010 and 2021, according to the NEU.
The real term pay cuts imposed this year will see the majority of teachers’ pay worth 25% less than it was in 2010, according to NASUWT analysis.
NAHT analysis suggests school leaders’ pay is down 24%’ since 2010.
Support urgently needed for key workers
The TUC is calling on the government to urgently prioritise key worker pay and public services funding in their fiscal event on 17 November.
The union body says ministers must:
Give key workers in the public sector cost-of-living proofed pay rises
Raise the minimum wage to £15 an hour as soon as possible
Invest in public services – reversing the impact of rising inflation and ensuring the spending measures set out in the 2021 comprehensive spending review are not only delivered but improved upon
TUC General Secretary Frances O’Grady said:
“Key workers in the public sector helped get the country through the pandemic.
“But many are now at breaking point because of a toxic mix of low pay, unsustainable workloads and a serious lack of recognition.
“After years of brutal pay cuts, nurses, teachers, refuse workers and millions of other public servants have seen their living standards decimated – and now face more pay misery.
“It is little wonder morale is through the floor and many key workers are considering leaving their jobs for good.
On the prospect of industrial action, Frances added:
“If there is large-scale public sector strike action over the months ahead, the government only has itself to blame.
“They have chosen to hold down public servants’ pay while giving bankers unlimited bonuses.
“Ministers must change course. Without decent pay rises for key workers in the public sector, we face a mass exodus of staff.
“And it would be bad for our economy. As the country teeters on the brink of recession, the last thing we need is working people cutting back on spending even more.
“More money in the pockets of working people means more spend on our high streets.
“Enough is enough. It’s time to give our key workers in the public sector the decent pay rise they are owed.”
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Liz Truss’s new Chancellor – old Health Secretary Germy C- er, Jeremy Hunt – announced in his very first media interview that he will be imposing further austerity on the UK in order to balance the books after the unforced errors of Kwasi Kwarteng.
Wow.
More austerity, of course, means the rich get richer and the poor get poorer. Let’s have some analysis:
We all know this isn’t the first u-turn of the Truss administration.
But do you know the full extent of her dithering?
Here’s a clip that lays out the situation for you:
She has created a huge problem for herself, electorally, with this.
We know that she has thrown away Boris Johnson’s 2019 manifesto; most of the plans in that document won’t materialise now (and that’s a good thing, by and large).
But by announcing policies on the hoof – and then u-turning on them – Truss is leaving the electorate in limbo.
What does she stand for? Does even she know?
Well, if she doesn’t work it out soon, she’ll self-destruct because the public won’t support a politician with no policies.
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