Tag Archives: budget

Sunak’s Budget is ‘for the fairies’ because it assumes that Covid is over

His next job: because Sunak has just served up a Budget ‘for the fairies’ that is likely to fall flat on its face in a few short months.

It seems the phrase du jour is ‘for the fairies’.

Some daft Tory MP said nurses’ calls for pay increases were “for the fairies” – see my earlier story on that.

Now I see Richard Murphy of Tax Research UK has used the same phrase to describe Rishi Sunak’s budget.

He also said the Johnson government is “firing blanks” at every level.

And that Sunak is likely to be back at the Dispatch Box in a very short time with emergency measures to cope with the disastrous failure of all his Budget predictions.

He says these things with confidence because of one simple fact: Covid-19 has not agreed to follow Boris Johnson’s “roadmap” (it’s actually a timetable but you can’t expect a numbskull like your prime minister to understand the English language) out of lockdown.

Don’t take my word for it. Here’s Mr Murphy:

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Nurses urged to strike after Sunak offered them nothing. But how can they?

Undervalued, underpaid, overstressed: nurses need a fair deal but they won’t get it unless they strike. How can they do that without harming patients?

It’s the classic dilemma for nurses: how can they campaign for fair pay and conditions when striking may harm NHS patients?

Tory Chancellor Rishi Sunak spat in the faces of nurses across the UK in his Budget speech yesterday (March 3), which did not even mention the National Health Service.

It was a deliberate insult to the healthcare workers who have suffered and sacrificed – some losing their lives – in the face of government failure to provide even the most basic protective equipment when it was needed.

It seems Tories think applause is all that nurses deserve. Meanwhile they are working overtime or using credit to be able to pay essential bills, and using food banks to be able to eat.

They have lost both their mental and physical health, struggling to come to terms with the horrors they have witnessed while trying to cope with Covid-19, underfunded, understaffed and underequipped by the Tories.

This is a national scandal.

Campaigning organisation Nurses United UK says health staff need to think seriously about strike action. Health unions have been demanding an immediate – restorative – pay rise of between 12.5 and 15 per cent.

That’s just to bring pay back up to the level that nurses have lost in the 11 years since the Tories took office.

The Tories, it seems, consider this demand to be “one for the fairies“.

But then, as Nurses United lead organiser Anthony Johnson pointed out – it must be better than giving billions to Tory donors in return for nothing at all:

This Government is weak – that is why they u-turn so often. They know that people are watching and demanding that rather than giving billions to their donors, they invest in the people of this country.

But we come back to the crux of the matter: if nurses strike, they won’t harm the Tory government – they’ll harm sick people who don’t deserve worse treatment.

Perhaps targeted strike action – to ruin Tory press junkets in hospitals or withdraw coverage for Tory projects – is the answer?

Source: Pay campaigner asks nurses to ‘seriously consider industrial action’ | NursingNotes

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Budget response by the Leader of the Opposition to the Tory Government

Here it is.

It is particularly enlightening where it refers to the Member for Hayes & Harlington:

You didn’t really expect this to be a video of Keir Starmer, did you?

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Nothing for you if you’re sick, disabled, at school or in care: reaction to the Tory budget

They all do this: but the way Rishi Sunak held the red box indicated there wasn’t much in it. And there wasn’t.

Rishi Sunak’s budget has shown he is a diehard Tory, with concessions for businesses while those of us in need can go whistle.

He has claimed his hands are tied by huge Covid-19-related debts – but we all know that he has already paid them off, by the simple means of creating the money needed to do so.

And his big plans for the future were pathetic: new ‘free ports’ that have always been a bad idea, and an investment bank to replace the one a previous Tory government sold off a few years ago.

We are ruled by intellectual pygmies – and that is being harsh on the pygmies.

I watched the budget speech and commentated on it on Twitter, so I can provide a first-hand account of the announcements – but first, I’d like to go straight to what wasn’t announced, with comments from people who were reading at the time:

So the people who did all the hard work during the Covid-19 crisis will receive no reward for their sacrifices at all – even though many of them sacrificed their lives, contracting the virus and dying because Matt Hancock couldn’t be bothered to supply proper personal protective equipment (PPE) at the right time.

However:

People with disabilities who did not receive the £20 benefit uplift because they are on so-called “legacy” benefits will still receive nothing more, even though the uplift will remain in place until September. After then, it seems people who lost their jobs because of Covid-19 will fall over a so-called “cliff edge”, with the uplift cancelled, forcing them to live on much less.

The Tories have made a major issue of education in the crisis, demanding that our children must go back to school as soon as possible in order to catch up on what they have missed – but Rishi Sunak has provided no extra facilities for this in his budget. It seems it was all talk and – in fact – the plan is to reopen a major vector for transmission of Covid and hope that the increase in infections – and deaths – won’t be noticed amid the falling numbers triggered by the vaccination programme.

And after years of promising to fix problems in the social care system – that became hugely pronounced when 30,000 people died in care homes because of Tory stupidity – Sunak is breaking that promise by offering nothing.

Meanwhile, those who profited hugely from the pandemic – either by being perfectly situated to continue selling goods to people in lockdown or by receiving government Covid-related contracts to provide services at hugely-inflated costs (many of which were not actually provided because the contractors were not qualified to do so) are to get off scot-free because Sunak has backed away from calls to impose a wealth tax.

So, what has he done?

Well, he carped on a lot about borrowing a huge amount of money to pay for Covid-19. That was a stream of lies from start to finish, as I pointed out:

So we were led to expect tax hikes a-go-go. But this didn’t happen:

The refers to income tax, National Insurance and VAT. However – and this is indeed a ‘however’:

This is the amount you earn before you start paying tax, or before you start paying it at a higher rate. Because these thresholds are frozen, it seems more people will pay at a higher rate due to wage inflation, so there will be a de facto increase in taxes. But this depends on people receiving pay rises to cover their costs and Tory policy over the last 11 years has been to discourage that – it’s the reason real take-home pay has fallen by thousands of pounds per year since 2010.

This was the only increase in taxation, and it is only on a tax on profits. So firms that pay corporation tax can avoid it by ensuring that they make no profit from 2023. The best way to do that is to invest in infrastructure and wages (by employing more people, perhaps).

It would be wrong to say that Sunak’s budget does nothing for ordinary people – but it’s all based around existing Covid-related schemes:

Sunak went on to announce plans for government investment. The main points were:

But “free ports” are not new, nor are they likely to help:

Here’s an interesting point:

Mr McDonnell himself promptly answered it:

There was also some muttering about policies that give a nod to the environment but if you blinked, you missed them – and This Writer blinked. They certainly don’t constitute a “Green Industrial Revolution”!

As Tory budgets go, this is not the disaster for working-class people that it could have been – although the main hits have been offset, so it may be a few months or years until we can know the effects for sure.

The lack of any hard taxes or austerity measures suggests a tacit admission that Covid-19 really is bought and paid-for, and there won’t be any real need to pay for it again.

So This Writer is left with a huge sense of anticlimax. I was expecting to be fearful after today; instead I feel let down.

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The Budget-related press interview you WON’T be hearing today

Rishi Sunak: he’s about to claim we need cuts to pay for the Covid-19 pandemic but that will just stop money from flowing through the economy, making it impossible. And in any case, it is unnecessary as he has already paid for it!

As the Tories continue to pretend we have to pay the cost of Covid-19 twice, it’s clear we’re going to hear a lot of double-talk in today’s (March 3) Budget speech.

Richard Murphy of Tax Research UK has released a video of the kind of media interview he’d like to hear, with a politician who doesn’t mind telling the facts as they are, rather than as Rishi Sunak would like to pretend.

Here it is:

It won’t happen because too many people are supporting the lie – for reasons already mentioned on This Site and elsewhere.

But it needs to be said – and you need to hear it before Sunak pumps his nonsense into all our heads.

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Is Starmer right to oppose tax rises on businesses and wealth?

Labour leader Keir Starmer seems to have provoked another attack on his tattered left-wing credentials, after he opposed plans to levy taxes on corporations and wealthy individuals who have made a fortune from the Covid-19 pandemic, when Tory Chancellor Rishi Sunak announces his spring Budget.

But is he right?

On corporation taxes, it seems he isn’t. Here’s Tax Research UK’s Richard Murphy, speaking last year but applying his words to this year too:

Okay, but how about wealth taxes?

The argument on taxing businesses is clear – it would discourage them from taking on (or retaining) staff at a time when we need people to keep their jobs, and it would take money out of the economy.

But wealth is kept in (very large) bank accounts and is not attached to employment.

So why not tax the people who have made (or increased) fortunes from the suffering of the rest of us?

At the very least, it might blunt the (fake) Tory argument that we all need to pay back the cost of the Covid crisis (that they’ve already paid anyway, by creating money).

This Writer would therefore tend to support it – but I’m ready to be corrected if you have a better argument.

Starmer’s alternative to taxing the rich is – as perhaps we should have expected – a neoliberal nightmare: he wants ordinary people to give any money we’ve managed to save during the Covid crisis to a new national investment bank. Why should we? If we back businesses, who would get the profit? And what if those businesses failed?

No Holding Back, a campaign group of socialist MPs, has said that Starmer seems to have his priorities wrong and Labour “needs a partnership with society, paid for by taxation,” not a “partnership with business, paid for by society”.

So it’s looking bad for Starmer.

But the outlook for the nation is looking worse. With no direction from either main political party, it seems the UK is drifting into economic shipwreck.

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Will Sunak tax you cash you don’t owe, to pay a Covid-19 bill that doesn’t exist?

Rishi Sunak: now his nervous look may be attributed to the possibility that he will lie to us next week, demanding we pay back £300 billion that the Tories used to cover the cost of the Coronavirus when there is absolutely no need to do anything of the kind. The government created the money that was used to pay for the crisis.

Pay special attention to Rishi Sunak’s spring Budget speech next week because he will probably try to steal money from you.

It is likely Sunak will introduce measures that he claims are needed in order to pay back the £300 billion (roughly) cost of everything the Tory government has done to keep the UK running during the Covid-19 crisis.

He will be lying if he does. No such measures are needed.

You see, the money used to pay for Covid-19 was created by the government. It wasn’t borrowed and there is therefore no need to pay it back.

Watch Richard Murphy’s explanation here and you should get the idea:

What strikes This Writer as particularly evil is the implication that Sunak may impose taxes on us, in order to perpetuate a myth that the Tories have spun since 2009: that austerity is necessary.

It isn’t. It never was.

And this means that all the deaths that have been driven by Tory austerity policies were unnecessary; they were deliberately planned by Conservatives from David Cameron’s era onwards and this means that Cameron and those Tories who conspired with him (Iain Duncan Smith springs particularly to mind) should be brought to account for it.

But I doubt they will.

Public opinion is largely led by the mass media, who are currently owned by the Conservatives. They’re hardly likely to do anything that endangers them.

And that means you are unlikely to hear on the BBC any suggestion that we don’t owe anything for Covid-19.

But you don’t. And now you know this, you need to tell everybody around you.

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Tory ideas about money have been wrong since before 2010. Here’s the reason

Flag-waving fools: Rishi Sunak and Boris Johnson have no idea how to run a country. They rely on patriotism to blind the gullible while they take your cash – and still put us into debt.

Some of us have been saying this for years but here’s a big-league economist to back us up.

Remember all the talk about Labour having “Maxed out the national credit card” that David Cameron and George Osborne used to win just enough seats to form a coalition with oily Nick Clegg’s Liberal Democrats in 2010?

It was nonsense. I said it at the time (and many times afterwards in articles on This Site. You can’t compare a national economy with household income and expenditure.

But it seems people are still being taken in by it because the Tories are still using it as the basis of their economic model.

That is the reason the UK has fallen deeper and deeper into debt during their 10 years in office. We can only go into debt, while they continue to follow this course.

Richard Murphy explains it very well in the video clip but I’ll paraphrase: while households become better-off by restricting spending, the nation loses out because businesses don’t benefit from that spending and cannot pass the money on through the system – therefore the nation becomes poorer.

So, by restricting spending with austerity policies, the Tory governments of the last 10 years have starved the UK of its economic lifeblood and plunged us into trillions of pounds worth of debt.

The only way to improve our economic situation is by spending into the economy with wise investments that help it to grow.

But Conservatives simply do not understand this basic (macro)economic fact. They never have.

See for yourself:

Some households fared well during the first Covid-19 lockdown. The lack of any way to spend their money meant they were able to pay off debts and bank spare cash.

But that won’t last. In some cases, families are already suffering because their income has fallen below their outgoings and the lockdowns are still going on.

In fact, the Tory plan is to ensure that they leach that money away from all of us as soon as possible.

There is nothing you can do about it in individual households because the household unit is too small to stave off economic intervention from a national government.

But if you group together with others, you might find a way.

Alternatively, you can just stick your head in the sand and wait for Rishi Sunak to empty your bank account and steal your house. It’s up to you.

You’ll probably see the sense in these words on March 2, when Sunak announces his spring budget.

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Why are individual schools being asked to pay millions for Covid-19 safety?

Schools: it seems the cost of measures to protect children from Covid-19 will be paid using individual school budgets, meaning less money for teaching. Won’t that harm their education?

If the Tory government wants children to go back to school, then why isn’t Gavin Williamson prepared to pay the £216 million we’re told will be needed to protect them from Covid-19?

Here’s The Mirror:

Heads will have to pay the £216million cost of making schools safe for pupils to return this week.

And staff fear they will have to raid cash meant for teaching.

One union boss said: “The Government should cover these costs.”

Teachers’ leaders say that England’s 21,622 schools – already cash-strapped after a decade of austerity – are each spending an average £10,000 to prepare.

It seems strange to This Writer that people like Boris Johnson and the afore-mentioned Williamson are claiming that children’s education will suffer if they stay away from school, when they are ensuring that kids’ education will suffer due to lack of funds for teaching.

Source: Struggling schools must find cash for £216million bill to keep our kids safe – Mirror Online

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Distraction tactics: why pay attention to all this right-wing fiddling while your country burns?

Jeremy Corbyn: it’s nice that a Twitter poll has rated him the best prime minister the UK never had, but the PM that we’ve got is turning the UK into a major disaster and this stuff is nothing more than an attempt to distract you. Did it work?

We all know bank holiday Mondays are where the news goes to die but August 2020 was particularly bad.

Judging by Twitter, the event that caught everybody’s imagination was a poll by right-wing Times Radio that resulted in a nobody presenter – This Writer has never heard of him – having to declare that Jeremy Corbyn is the best prime minister the UK never had.

(It means he would have been a better choice, not only than Boris Johnson or Theresa May, but better than many others as well – according to those who took part in the poll.)

Certain right-whingers immediately took it upon themselves to alleged – without any factual basis – that Corbynista Twitter users had ganged up to rig the poll.

Who cares?

It doesn’t matter. We didn’t get Corbyn. We got Theresa May in 2017 and Boris Johnson now – partly because Labour apparatchiks conspired to bugger up Corbyn’s campaigns on one or both occasions, if you believe a certain report (I do).

And it diverts attention from the failures of the government we have – especially at a time when Parliament is about to resume sitting after the summer recess.

The Guardian‘s editorial has identified a few of the political crises from which the poll has diverted our attention. For example:

Rishi Sunak is determined to end his Job Retention Scheme – the furlough to you and me – at the end of October, triggering a huge wave of unemployment. That’s right, even more people are about to learn what Universal Credit is all about – and they’re not going to like it.

He’s facing an annual national deficit that will have grown to twice the amount faced by Gordon Brown’s Labour government during the so-called “great recession” of 2008 or thereabouts. His party made a lot of mileage out of criticising Labour’s handling of that recession, slithering back into office by claiming it would end deficit spending and cut the national debt as well (instead the Tories more than doubled the debt to £2 trillion).

And in November Sunak has to produce a budget that will boost the economy and return the national finances to some semblance of balance (fat chance! He’s already facing a backbench rebellion on his mooted plans for tax rises).

Nobody’s going back to work because they don’t trust the government’s proclamations that it is safe from Covid-19. Nobody is likely to go back to universities for the same reason. The only people likely to want to go back to school are the kids – and that’s because they’re probably a bit bored by now and want to see their buddies again.

The Johnson government’s determination to push through Brexit as planned by December 31 means the party that pledged to end the scourge of “red tape” is more likely to throttle us with it, as businesses have to deal with an avalanche of pointless bureaucracy.

These are all problems that the Tories have created for the rest of us, either by incompetence or by design, since they first came back into power in 2010 – and most particularly since Boris Johnson became prime minister last year.

You need to be thinking about that, but instead you’re being seduced into thinking about a dopey Twitter poll that doesn’t mean anything at all.

You’re watching the right-wingers fiddling around while your country burns around you.

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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