Tag Archives: austerity

More than 40 Tory MPs demand extra funding for the councils they’ve been starving

Rubbish: will domestic refuse collections be cut back – again – if Rishi Sunak and his government refuse a plea from more than 40 Tory MPs for the restoration of funding to local councils?

Tory MPs who gleefully nodded through cuts totalling three-eighths of local council funding are now demanding extra cash so the same councils can fend off bankruptcy. Is it because this is an election year and they are afraid they’ll lose their Parliamentary seats?

More than 40 of them have joined dozens of others in demanding extra funding to avoid big cuts in council services.

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Here’s the BBC:

The group of 46 MPs, which is made up of 44 Conservatives as well as Labour’s Daniel Zeichner and Liberal Democrat Sarah Dyke, includes former ministers Priti Patel, Robert Jenrick, Greg Clark and Damian Green.

The letter to Prime Minister Rishi Sunak and Levelling Up Secretary Michael Gove was co-ordinated by the County Councils Network and the County All-Party Parliamentary Group.

It urged the government to provide extra funding for local authorities ahead of a vote in the Commons next month “to ensure that the councils in our areas can continue to provide the services that our residents depend upon”.

There has been growing concern across the local government sector about council funding, with particular pressure on the cost of providing care for vulnerable adults and children, as well as housing services.

The government said it had announced a £64bn funding package for councils.

In December, the government announced the amount of funding it plans to make available to councils from April, and said it represented an average increase of 6.5% compared to the year before.

It is interesting that the Tory government said it was providing £64 billion in funding, when apparently the amount of cash it made available for councils fell from £41bn to just £26bn between 2010 and 2020.

Perhaps some of the extra cash is so-called ‘Levelling-Up’ money?

If so, Labour’s Luton North MP Sarah Owen has something to say about the way that money has been allocated:

Most of the response to the Tories’ call for cash has been ridicule – and for obvious reasons. They knew they were taking money away from local councils when they voted for austerity cuts to their funding, so they knew that services would be cut.

These responses therefore seem entirely appropriate:

Rishi Sunak is facing the possibility of another rebellion when Parliament is asked to approve a new funding deal for local councils in the near future.

It seems that these Tories have presented their government with a lose-lose situation: either set themselves up to lose the funding vote in Parliament, or set themselves up to lose the election when the amount of funding approved by Parliament turns out not to be enough.

Perhaps this is a good moment to remind you that the people of the UK can have all the public services they want. The only thing missing is the political will to provide it.

The UK is the fifth-richest economy in the world, meaning there is plenty of money available. Most of it is held by a small number of extremely rich millionaires and billionaires, many of whom would not object to paying a little more tax if it frees up money for public services.

But the Tory government – including some of the MPs now demanding more funding – is determined to cut taxes for the richest people, rather than increasing them.

This is a problem that the Tories created for us, with a plan to blame councils in the face of any backlash. Now it is backfiring onto them. Serves them right.


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Tory austerity is set to continue under a Keir Starmer government. How will that help?

Keir Starmer and money: he’ll carry on enjoying lots of it but you’ll have to wait before any government he runs will give you a sniff of it.

Tory austerity will not go away under a Keir Starmer-led Labour government, he has warned.

Starmer says he will continue to impose “huge constraints” on public spending if he becomes prime minister:

This could create a problem for him – because many voters have had more than enough of being deprived of the necessities of life by politicians who have diverted huge amounts of money into their own pockets.

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Economist Richard Murphy has been running a poll, asking – well, see for yourself. Vote if you feel like it:

Never say “never”, of course; Starmer is only saying he won’t raise public spending if the government has to borrow hugely more than it takes in tax, because he doesn’t want to increase debt and/or inflation (at least, This Writer expects those to be the reasons).

His mission (he likes missions) over the first period of a Labour-led Parliament, then, should be to establish ways of boosting spending on what the public needs, either by diverting it from places it should not be going (ending corruption), by closing tax loopholes to ensure that tax avoidance and evasion by the super-rich is ended and they fund the services that help to make them so rich, or by supporting policies that increase the wealth of the whole nation, starting with the poorest of us.

There is just one problem that could stymie all those good ideas, and here it is:

He’s Keir Starmer.

If you were still planning to vote Labour at the next general election, that should be enough reason to turn elsewhere. Do your homework, find out who’s available in your constituency, and vote for the policies that will help you.


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Economists please note: high inflation may be A POLITICAL CHOICE

This is fine: the image above was originally about climate change but it may be applied equally well to Rishi Sunak’s attitude to the economy. Political policy in the UK for the past 40 years and more has been to impoverish you, together with all the poor people who voted for him and his ilk, thereby allowing it to happen.

All the Tory talk about getting inflation down seems to have confused some people who have failed to consider that high inflation may actually be Conservative government policy.

Look at the usually-excellent Simon Wren-Lewis’s latest Mainly Macro piece, in which he takes issue with left-wing opinions about his current diagnosis of the inflation problem.

He reckons the answer is for private sector wage rises to come down, probably by way of reducing economic demand which will lead to a reduction in the workforce – and, thereby, a recession. This opinion appears to be shared with the Bank of England, whose continual interest rate hikes seem to be an attempt to force the UK’s economy to go backwards.

The problem with that is simple: ordinary working- and even some middle-class people are struggling to make ends meet. Many simply can’t and are going into debt. His solution to the inflation problem will bake that inability to afford the cost of living into the UK economy.

With the Tory government lying to us that workers’ wages are the cause of high inflation and the Bank of England doing as described above, there seems to be only one logical conclusion to draw:

High inflation is a Conservative government policy. It is intended to drive the UK’s lower-paid citizens deep into poverty so you cannot afford the necessities of life.

Just roll that around your mind for a moment.

Think about the real causes of inflation: huge increases in the prices of energy and food, and huge increases in the salaries of FTSE100 executives.

The government could, in theory, neutralise these inflationary pressures through taxation – but the theory fails in practice: as Professor Wren-Lewis notes, the energy firms are multi-national corporations whose profits are received overseas, so there is nothing the government can do about them.

Looking back through history, we see that the reason overseas shareholders have been able to take control of our formerly-nationalised utility firms (energy isn’t the only subject area to have been treated this way, of course; water springs instantly to mind) is privatisation.

The answer should be re-nationalisation – but the Tory government (and also Keir Starmer’s STP – Substitute Tory Party) won’t countenance that; it is against their ideology. This indicates, again, that high inflation that drives you into poverty is a political choice. Rishi Sunak and Keir Starmer want you to starve.

In the private sector, we see that the salaries of FTSE100 executives have risen by an average of 16 per cent in the last year alone, despite the fact that there has been no real growth in production in the last 15 years since the Great Recession. The money for their pay rise has to come from somewhere and the logical source is the pay packets of employees; they are taking the rises that should go to you.

That’s if they haven’t increased the prices of their goods or services, of course. If they have then they are still taking the rises that should go to you, while also increasing prices so you can’t afford what your employer sells.

The answer – the way to stop this irresponsible upward drain of corporate funds into executive bank accounts – is to tax executive pay at a rate high enough to make this practice unviable. Again, both Rishi Sunak’s Tories and Keir Starmer’s Tories have refused to do this so – again – we must conclude that the executive wage inflation that puts us all into poverty is a political choice.

Professor Wren-Lewis rightly points out that, where employees have won wage increases intended to match inflation caused mainly by high energy prices, their employers have put prices up; this indicates that shifting the real-terms wage cut onto the profits of other firms won’t work and just generates more inflation.

Professor Wren-Lewis goes on to discuss the reason real wages in the UK have not grown in the last 15 years. As already mentioned above, besides the energy and food price hikes, it is the fact that productivity growth has been extremely weak. There have also been two large devaluations of the Pound.

The low productivity – and one of the depreciations – were caused by Brexit. This is another political policy of the Conservative government that is also supported by Keir Starmer’s STP and may therefore be seen as further proof that the party of government (and that of Opposition) intends to impoverish you as a matter of policy.

Brexit also makes causing a recession more attractive to the government and the party that wants to form a government. Neither of them want inflation to continue running rampant forever; it would eventually wipe out the gains they have made for their very rich friends, so they’ll want to bring it down.

The way to do that, according to Prof Wren-Lewis, is to reduce the demand for goods produced by most firms, as this will lead to a reduced demand for labour; firms then lay off workers, meaning more people are seeking employment, meaning in turn that jobseekers will be more likely to accept a job that pays lower wages.

Before Brexit, politicians could always rely on an influx of cheap labour from Europe. That isn’t available now, so they consider recession to be the only alternative. Remember: their future is safe.

Demand is already coming down because people simply can’t afford to buy as much as they used to, due to the real-terms wage cuts they have suffered. The Bank of England’s interest rate rises are hammering that change home.

We may therefore conclude that recession, job losses, further deprivation and misery are all policy points of the Conservative government, and of Keir Starmer’s STP.

Professor Wren-Lewis ends his piece by quoting Bertrand Russell: “Ask yourself only what are the facts, and what is the truth that the facts bear out. Never let yourself be diverted either by what you wish to believe, or by what you think would have beneficent social effects if it were believed.”

Sadly, he fails to follow his own (and Russell’s) advice.

The truth that the facts bear out is that privatisation, executive pay rises, Brexit, austerity (the other driver of the Pound’s depreciation) and interest rate rises are all intended to push the majority of UK citizens into poverty.

Other solutions besides reducing demand by causing a recession and mass unemployment are available – but the low-quality politicians with whom we have accepted that Parliament should be filled are not interested in them; their only concern is filling their own bank accounts.

Our concern must now be to put a stop to this.


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Is the Bank of England trying to force the UK into austerity? Why?

The Bank of England: don’t believe its claims about inflation.

If the Bank is trying to force the government into austerity by selling government debt at a loss, isn’t that political interference?

And isn’t anyone – of any political organisation – going to ask the obvious questions about it?


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Dental care in the UK is awful because governments made it that way

It’s amazing how some writers spin out an article when all we really need is a quick run-down of the facts.

We all know dentistry in the UK is in crisis. Many of us can’t get in to a dentist for a check-up and the reason is simple: there aren’t enough dentists in the UK.

Why aren’t there enough? Two reasons, according to Novara Media‘s article:

The real reason for this understaffing… was austerity: the government has slashed funding for NHS dental services by 8% in real terms since 2010. In 2013, David Cameron placed a hard cap on the number of trainee dental places his government would fund (the cap was lifted briefly in 2020-21, but was reimposed in 2022 and remains in place despite the current crisis).

Perhaps the most significant government contribution to the current crisis in British dentistry dates back to 2006, when Tony Blair introduced a new contract between the NHS and its dentists. Prior to that point, dentists were paid for each piece of work they did. As a result of the 2006 reform, dentists are now paid for a certain number of “units of dental activity”, with little distinction made between complex operations and simple treatments. If they don’t complete nearly all of this work (96%), dentists have to pay back some of their fee. But this is complicated by the fact that the total amount of work they can do is itself capped, meaning that if they do too much work, they have to turn patients away. The result is that many NHS dentists find themselves unable to make a decent living due to the low pay involved in dentistry (45% reported a decline in NHS pay since 2020), not to mention chronically overworked: 87% have felt symptoms of stress and anxiety in the past year.

So politicians created this crisis with a stupid contract and with funding cuts.

The answer is clear: change the contract to re-incentivise dentists, and restore funding levels.

Any government failing to do that is creating its own toothache (sorry).

Source: How Did British Dental Care Get So Awful? | Novara Media


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Rishi Sunak wants to inflict more austerity on us – but it can’t work. Why bother?

New new prime minister Rishi Sunak wants – finally – to impose on us the new round of austerity he was planning to inflict when he became Chancellor in 2020 (but couldn’t because of Covid-19).

There is no economic justification for it because austerity does not achieve anything other than shrinking the state and choking off the supply of money into the economy.

And this is a problem for Sunak, because the people of the United Kingdom have already suffered 12 years of having their money supply choked off.

Sunak’s plan is to further impoverish a nation that is already in poverty – and it is not acceptable.

Here’s Phil Moorhouse to put some flesh on the bones:

If he were to ask his advisers for alternatives that will actually stimulate the economy, they would happily provide some.

What a shame. It seems clear that this is another Tory prime minister for whom our economic well-being means less than a political ideology.

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A Starmer Labour government will be an austerity government – he says

Austerity boy: Keir Starmer, as prime minister, would impose policies that would shrink the state, restrict the amount of cash flowing through society, make the rich richer and the poor poorer.

Here’s a timely reminder that a Labour government under Keir Starmer will follow discredited austerity policies, similar to those of a Conservative administration.

Austerity doesn’t work. It shrinks the state and cuts the amount of money flowing through society, meaning the rich get richer and the poor get poorer.

Public services suffer, and social mobility withers.

These are not traditional Labour Party policies.

But listen to Keir Starmer admitting they are his policies:

U-turn on public spending is the latest in a long line for Liz Truss

Ditherer: Liz Truss.

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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Prime Minister’s Questions with Liz Truss – she answered, but not well

This Writer was away from his desk yesterday (Wednesday, September 7, 2022) because I was on a mercy mission – taking a family member to hospital.

So I’m relying on this video and BBC News (heaven help me!) for my information:

Interesting stuff.

So Liz Truss actually bothered to answer the questions. Was this because she doesn’t have the imagination to distract us with nonsense or divert us onto another subject? I find the latter likely but the former incredible, considering the amount of nonsense with which she regaled us all during her Tory leadership election campaign.

Ah, but her answers were useless. That’s more familiar ground. In fact, it seems clear that if the energy generation companies aren’t going to be made to subsidise our increased bills with their profits (which would be an excellent way of ‘chilling’ them – discouraging them from charging so much in the first place), the onus will fall to the general public.

This seems likely to take the form of a loan scheme, under which households will be forced to pay back the extra cost of their energy bills over a longer period of time, alongside whatever their energy will cost at that time.

This has the potential to put us all in perpetual debt. It reminds This Writer of an idea called the zombie economy, in which the working classes are kept in perpetual slavery to the business owners and politicians because they are forced to keep working in order to service ever-increasing debts that have been foisted on them, along with high government taxes.

Doesn’t that seem to be what’s happening?

Truss contradicted herself somewhat by saying she wants a high-wage economy. That would undermine the zombie plan – if it were true – but, as Phil Moorhouse points out, Boris Johnson said he wanted a high-wage economy too – and then told everybody to get back to work, the instant they started demanding it.

She said her energy plan would help business – so now we all want to know howIf she doesn’t help businesses, they’ll go under, and that’s a bad thing.

There’s a good sideswipe in the clip at the idiot Austerity policy of David Cameron and George Osborne: cut spending and you shrink the economy. The more they cut government expenditure, the lower tax receipts fell – because the money the government had been spending generated growth. And what did they do in response? They repeated the same mistake, expecting a different result (which is now a well-known definition of madness).

It seems tax-cutter Truss wants to repeat the mistake again – this time by cutting tax receipts first and claiming there isn’t the money to carry on spending on public services (the infamous Starve The Beast policy).

Truss said she would publish her energy plans today (Thursday) – meaning she’ll face a full week of debate in Parliament. That could be embarrassing – unless she merely announces aims.

And it seems she wanted to launch a catchphrase: “You can’t tax a country to growth, you know!” Except you can. History shows a clear correlation between GDP and tax revenues.

She said cutting Corporation Tax would lead to more businesses relocating to the UK – but in fact they are leaving, because of Brexit (which Truss used to oppose but now supports because she is in turn supported by the European Research Group loonies).

And Truss thinks the Northern Ireland Protocol contradicts the Good Friday Agreement – when it in fact protects the Good Friday Agreement.

So, Liz Truss actually answered the questions. But considering the nature of her answers, we can make an easy conclusion:

She is out of her depth.

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Health Warning: Government! is now available
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Shock for Tories as they learn austerity affects THEIR voters too

Steve Baker: the pro-austerity, pro-Brexit High Wycombe MP is claiming surprise that his constituents are starving, and trying to blame it on Covid-19 rather than the policies he wholeheartedly supported.

Tories like Steve Baker, whose High Wycombe constituency has been found to be suffering high levels of poverty-induced hunger, are trying to blame it on Covid-19.

This is not true.

And the falsehood should be pointed out to them.

Yes, the claim that “Mother” puts, below, is correct:

But High Wycome – and Buckinghamshire in general – were identified as suffering from these problems eight years ago. That’s long before anyone ever heard of Covid-19:

So it seems that Tom Bradley has the right idea:

It seems some Tories are using the revelation (in fact nothing of the kind, as the information has been available since 2013) to call for the loss of the £20 Universal Credit “uplift” to be rethought.

Doubtless they will want more for their constituencies as well.

But can you see what this means, for austerity-loving economic incompetents like Rishi Sunak?

He’ll say the money will have to come from somewhere else, and will cut vital funding to constituencies that haven’t voted Tory. See if he doesn’t!

Have YOU donated to my crowdfunding appeal, raising funds to fight false libel claims by TV celebrities who should know better? These court cases cost a lot of money so every penny will help ensure that wealth doesn’t beat justice.

https://www.crowdjustice.com/case/mike-sivier-libel-fight/


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If you have appreciated 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!

Buy Vox Political books so we can continue
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The Livingstone Presumption is now available
in either print or eBook format here:

HWG PrintHWG eBook

Health Warning: Government! is now available
in either print or eBook format here:

HWG PrintHWG eBook

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

SWAHTprint SWAHTeBook