Tag Archives: Chloe Smith

Autumn reshuffles – will Britain get the political players it needs?

Rearranging the pack: Both the government and its opposition are having a reshuffle today - but will we get aces, or just another set of jokers?

Rearranging the pack: Both the government and its opposition are having a reshuffle today – but will we get aces, or just another set of jokers?

Today’s the day – doomsday for some, and a new dawn for others. Both the Coalition and Labour are reshuffling their top teams.

We already know some of the names that have stepped down. On the government side, Michael Moore has been sacked as Scottish Secretary, to make way for fellow Liberal Democrat Alistair Carmichael. Apparently Mr Carmichael, referring to the upcoming referendum on Scotland seceding from the Union, has said he is “up for it”.

At least nobody tried to put a Tory in, to represent a country where that party has no MPs at all. It may seem beyond the realm of possibility but with the Government of Idiots (and I refer to the term in its classical sense) it would not be surprising.

Deputy Chief Whip John Randall and Cabinet Office Minister Chloe Smith (who was humiliated on the BBC’s Newsnight last year when, as Exchequer Secretary, she struggled to answer questions about the government’s decision to defer a rise in fuel duty. It seems she had been promoted because David Cameron mistakenly believed she was a trained accountant. This does not bode well for today’s decisions) have both stepped down.

The BBC reported that Ms Smith’s resignation letter stated she had been “only 27” when she became an MP and now wanted to “develop other ways of giving public service” – indicating possible disillusionment with the Coalition government and the way it conducts itself.

Transport Minister Simon Burns has also stepped down – but this is to run for the position of Deputy Speaker, which was left vacant by Nigel Evans after he stepped down to fight criminal charges for sexual assault.

All the pundits are saying the government reshuffle will concentrate on mid-level ministers, with every Cabinet-level Tory secure in their position. What a shame.

Meanwhile, over at Labour, the situation is not so clear. Ed Miliband’s decisions have been unrestricted, and speculation has ranged from whether he will increase Shadow Cabinet representative for women, bring back members of Labour’s old guard (unlikely – he would face criticism along predictable lines from the Tories and besides, this seems to be about bringing in new, more attractive faces), promote people who are loyal to him or (my preference) have a Shadow Cabinet Of All Talents – including critics who happen to be very good at their jobs.

Abraham Lincoln had a Cabinet Of All Talents, if I recall correctly. Some consider this to be part of what made him great.

One person who won’t be a part of Labour’s team is former Minister (and then Shadow Minister) for the Disabled, Anne McGuire. who quit last week after five years in the job.

The Stirling MP was praised by disability campaigners such as Sue Marsh who, in an email, described her as “the one true ally we had on Labour’s front bench”.

And blogger Sue Jones wrote: “Anne will always be remembered by our community for her very articulate attacks on the media’s [mis]representation of disabled people and on the Government’s welfare reforms, in parliamentary debate. I remember her account of private debate, too, on the same topic with Iain Duncan Smith, and such was her ferocity and anger at the profound unfairness of the media’s sustained persecution of sick and disabled people, fanned by Iain Duncan Smith, as we know, that she pinned him against a wall on one occasion.”

But the former Shadow Minister, who is herself disabled, ran into controversy when she agreed to host a fringe meeting at this year’s Labour Party Conference, organised by the right-wing thinktank Reform, and sponsored by the Association of British Insurers.

Entitled ‘New thinking on the welfare state’, the event seems to have been a front for insurance companies to try to influence Labour’s thinking on social security in the future. Similar events were arranged by Reform and staged at both the Liberal Democrat and Conservative conferences.

Discussions at the private, round-table policy seminar seem to have centred on ways in which insurance companies could become more involved with social security – what products they could sell to working-class people who fear the loss of income that follows loss of employment.

This is exactly the scenario that the American Unum corporation wanted to create when it was invited into the then-Department of Social Security by Peter Lilley – a weakened state system that either cannot or will not support people in genuine need, particularly the sick and disabled, forcing them to buy insurance policies in the hope that these will top-up their income.

Anne McGuire denied this was the intent of the exercise but it is significant that neoliberal New Labour did nothing to prevent the advance of this agenda during its years in power, including the period she spent as Minister for the Disabled.

People who have suffered under the current benefit regime are demanding – ever more stridently – that Labour should mount a strong attack on the practices of the Department for Work and Pensions, as run by Iain Duncan Smith and his cronies, Mark Hoban and Esther McVey.

Part of this demand is that private organisations such as Unum and Atos, which administers work capability assessments, should be kicked out, and a new, fairer system of determining disability benefits based on a claimant’s medical condition and needs, rather than the greed of private enterprise, should be brought in.

There has been no hope of this with plastic Tory Liam Byrne as Shadow Work and Pensions spokesman, but rumour has it he could be shunted out and replaced by Rachel Reeves. Is this a good move?

The omens are not wonderful. She is yet another alumnus of the Politics, Philosophy and Economics course at Oxford (another notable example of that course’s graduates is David Cameron). Her background is in business. She once interviewed for a job with tax avoiders Goldman Sachs (but turned down the job offer) and has been named by The Guardian as one of several MPs who use unpaid interns.

Sunny summer was good for the economy – shock! All YOU get is a tan

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At risk of seeming to be ‘Disgusted of Tunbridge Wells’: Why, oh why, oh why is everybody making such a big fuss about the fact that the economy bounced back a little bit over the summer?

Did nobody think that, perhaps, the fact that it was more sunny than in recent years meant our tourism industry might get a much-needed shot in the arm – not least from run-down British people, desperate for relief from the constant, grinding monotony of the Conservative/Lib Dem Coa-lamity government’s austerity agenda?

Did they not recall that the holiday season is a traditional ‘lull’ period and that, therefore – unless unusual situations apply (as they have in previous years) – government spending should be less? What’s the relief to the public purse from not having any Olympic Games to stage this year? What’s the benefit of having no riots?

And, finally, for the vast majority of the British people, these figures are no reason to celebrate because they make no difference. The cost of living is going up while average real-terms earnings have plummetted. If we are seeing a recovery, it is a recovery for the rich alone.

As was always intended.

For the record, public sector borrowing for August was £13.2 billion – £1.2 billion lower than the amount recorded in August 2012. This puts the UK’s net national debt at £1.19 trillion – 74.6 per cent of Gross Domestic Product.

GDP itself grew by 0.7 per cent in the second quarter of 2013 (April-June), and tax revenues have been 2.8 per cent higher than in the same period of 2012. Total government spending has fallen by 2.2 per cent, led by a sharp drop in spending by individual departments.

You can read all this on the BBC News website and might find it pleasant enough, but then David Kern, chief economist at the British Chambers of Commerce had to ruin it by saying “Our ability to generate tax revenues will struggle to return to pre-recession levels, even when the pace of growth picks up. As a result, the government must continue to make cuts in current spending in order to reduce the deficit further.”

So he wants the madness to continue. I wonder… If his business was in trouble, would he cut investment in – say – advertising and then expect profits to improve? That would be madness. Every pound cut from public investment by the government results in a loss to the economy of £1.70-£2.20. It is the government’s own demand for austerity that is slowing the recovery!

And what does this mean for ordinary people?

It means that, after adjusting for inflation, average earnings are £1,350 per year lower than they were at the time of the 2010 General Election. The UK has suffered the biggest fall in income and living standards of any country in the G7. You are worse-off under the Conservatives and the Liberal Democrats!

By 2015, average wages are forecast to be £1,520 lower than in 2010 (based on figures from the House of Commons Library). This means working people will have lost an average of £6,660 in real terms while David Cameron has been Prime Minister – enough to support the average family’s weekly shop for one and a half years, at 2012 prices!

Inflation has been higher than in other G7 countries throughout David Cameron’s period in office, meaning that George Osborne’s claim that “rising global prices” have forced the cost-of-living increase is nonsense.

Claims like that of then-Treasury Minister Chloe Smith at the start of 2012 that lower inflation meant “the cost of living is coming down a little for families” were also rubbish – it was still increasing; just not quite as fast.

In fact, price rises have outstripped wage growth in every single month of the Coalition government – except April this year, when David Cameron cut taxes for millionaires and bank bonuses skyrocketed. Who benefited? The rich. Who lost out? The middle classes, workers, and the poor.

A YouGov survey of ordinary people has shown that 70 per cent do not believe the much-touted recent improvements in the economy have helped middle- and lower-income families. Only 10 per cent thought they had.

And 81 per cent had seen prices grow faster than household incomes, with just three per cent (and only one per cent of women) seeing income grow faster than prices.

It doesn’t matter what they say the economy is doing. You will continue to lose money as long as you have a government of millionaires, ruling in their own interests rather than the interests of the country.

It’s as simple as that.