Will somebody from the Common Sense wing of the Labour Party please stand for the leadership?
Today The Guardian is reporting that leadership favourite Andy Burnham has decided to pander to big business rather than stand up for the common people.
He said he was prepared to support cuts to social security in order to counter claims that Labour gives scroungers an “easy ride”.
What stupidity!
He would do better to counter the claim that all political parties give an easy ride to lazy business bosses who exploit the working classes and hide their massive profits in tax havens – especially as he was making his speech at the HQ of tax avoidance tzars Ernst and Young.
The company, now branded EY, is one of the ‘Big Four’ accountancy firms that have been helping the Tory Government rewrite tax law to make it possible for big business to use tax havens and avoid paying.
Regarding benefits, the simple fact is that the fraud rate is 0.7 per cent – a miniscule amount. People claiming benefits deserve to have them – especially as they have paid into the relevant fund for their whole lives; the money belongs to those people, not any government – Labour or Tory.
If Burnham really wanted to bring down the amount of benefit claims, he would have been telling businesses to buck up their ideas and start paying the living wage, rather than scrounging the rest of the money their employees need from the government.
He would have been telling landlords to start charging reasonable rents, rather than pushing them up and up and expecting the government to pay what tenants cannot afford in housing benefit.
And he would have been proposing a strategic remodelling of the system to prevent people falling into the kind of difficulties that force them to claim benefits – including a revamp of Health and Safety regulation to ensure that people do not fall prey to long-term illness caused by conditions at work.
Will somebody step forward who can actually do the job?
Labour leadership favourite Andy Burnham has indicated he would support further welfare cuts, including government plans for a £23,000 cap on benefits if it has adequate safeguards.
At a speech in London, the shadow health secretary said he wanted to counter the perception his party wants to give “an easy ride” to people who do not want to help themselves.
“Labour does need to win back those people who have that feeling about us,” he told business leaders at the headquarters of EY (previously Ernst & Young) on Friday. He added that the party would not be re-elected unless it showed people it was on the side of those who wanted to “get on” and succeed.
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Margaret Hodge: A principled stand against corruption of politics by corporate influence.
This is something that broke while Yr Obdt Srvt was still recovering from a recent illness, but is still worth covering because Labour really needs to understand the danger of association.
Margaret Hodge, Labour’s chair of the Commons Public Accounts Committee, broke ranks to warn the Shadow Cabinet against accepting – shall we call it – “help” from accounting firms like PricewaterhouseCoopers on Friday. She said it was “inappropriate” and she was right to do so.
It’s the political equivalent of accepting “help” from the Mafia – you end up in their pocket, owing them favours.
According to the BBC, Labour MPs including Ed Balls (Shadow Chancellor) and Chukka Umunna (Shadow Business Secretary), along with Rachel Reeves (Shadow Work and Pensions Secretary) have received more than £540,000 in research assistance from the firm in the past 18 months alone.
PwC is one of the ‘Big Four’ accountancy firms – the others are Ernst & Young, KPMG and Deloitte – who also advise the Conservative-run Treasury on tax policy. It should not be beyond anybody’s wit to see there’s a clear conflict of interest if the firm is advising both Labour and the Tories on tax policy.
Furthermore, PwC – if not all the others as well – is known to advise businesses on ways they can legally avoid paying tax. This means that, while working for the government, they are actively campaigning to hinder its effectiveness at collecting revenue that is due to it and using that money for the good of the UK as a whole.
Labour’s official line is that “PwC have provided long standing support to all three major political parties on a non-party basis, as happened for the Conservatives and Lib Dems before the last election. Given the complexity of government and that opposition parties do not have significant access to civil servants, the support provided by organisations such as these helps ensure that there is better scrutiny of government policy.”
PwC said its staff provided “limited and fully disclosed technical support to the main political parties” but added: “We do not develop policy on their behalf.” Staff on secondment might make “observations on the improvement of legislation or proposed legislation”, the firm added in a statement.
Isn’t this exactly the problem? Staff make “observations”, and before we know it, all our political parties are carrying out PwC policy instead of their own.
If Labour was serious about getting the advice it needed, then it would be employing advisers who have nothing to do with any of the other political parties. That’s the way it has to be. Anything else courts betrayal of the public.
Then there would be no opportunity for these firms to create embarrassment when their activities “promoting tax avoidance” on an industrial scale were revealed by the Public Accounts Committee
PwC said it disagreed with the Public Accounts Committee report (it would, wouldn’t it?) and denied claims by Mrs Hodge that the firm had misled her committee when its executives gave evidence in January 2013. Who do you believe?
Mrs Hodge herself told BBC Radio 4’s The World At One: “You have to be very, very careful when you’re in opposition whom you take money from”.
Absolutely correct.
This is why Vox Political supports the removal of all private company advisors from government. The private sector has no place in decisions about public services.
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It seems there are very few, if any ‘qualified providers’ from the private sector currently working in the English National Health Service, according to the latest issue of Private Eye (#1382, p38).
It states: “When the government decided to flog off large chunks of the NHS, it insisted that private providers must ‘qualify and register’ before being allowed to offer NHS-funded services.
“But the NHS regulator Monitor never carried out the promised ‘assurance process’ to test whether providers were suitable or not. It confirmed that it held no register of ‘any qualified providers’ and a spokesman even said it would ‘love to know where there is a list’.
“Monitor only licenses organisations that hold NHS contracts worth more than £10 million a year. This leaves the vast majority of smaller ‘alternative’ providers and non-profit businesses unchecked.
“NHS England doesn’t check them either. Not only does it not hold any list, but it has also stopped providing support to local clinical commissioning groups to enable them to check the credentials of companies that are bidding for contracts. It has closed its online ‘Any Qualified Provider Resource Centre’, along with the Supply2Health website which at least listed contracts and current providers.
“All that can be found after a determined trawl through the Care Quality Commission website is a cobbled-together list of 41 mainly small-care providers, many of which have not been inspected, leaving the issue of whether they are ‘qualified’ open to question.
“Responsibility for deciding who ‘qualifies’ to carry out NHS work falls therefore not on those who are supposed to scrutinise and regulate NHS services but on local health purchasers. As the Health and Social Care Act doesn’t define what ‘qualified’ means, health ministers have neatly opened up a postcode lottery in healthcare when certain companies may be accepted as qualified by some local commissioning groups, but not others.”
In fact, it’s worse even than that.
Clinical Commissioning Groups (CCGs) were sold to the public on the premise that they would be composed of doctors – mainly GPs. But the CCGs’ own management teams are in fact steered by private sector consultants – McKinsey, Ernst & Young, PricewaterhouseCoopers, Capita, you know the names because they belong to all the usual suspects (see NHS SOS, Jacky Davis & Raymond Tallis (editors), pp24-25). Some of these organisations provide their own healthcare services, creating an opportunity for corruption that makes utter nonsense of the assurance ‘no decision about me, without me’ made by Andrew Lansley when he was pushing the Health and Social Care Act through Parliament.
So, if you live in England and you are told you need a health service that is only offered by a private provider – you demand to see proof that they are qualified to run the service. Who checked them? To what standard? Don’t be fobbed off with an assurance that the CCG has given them the thumbs-up – ask what organisation advised the CCG. Get to the bottom of the matter.
You might find that your ‘qualified provider’ doesn’t have any qualifications at all.
And then who’s liable if your treatment goes wrong?
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You see, not only has this been going on ever since the Coalition government established welfare-to-work in its current form –
Not only have government ministers and backbenchers been lying to you about the payouts given to the profit-driven privately-owned provider companies –
Not only have these companies been sucking down on your hard-earned taxpayer cash as though they had done something to earn it –
But the people they were supposed to be helping – people who have been forced into ever-greater poverty by the benefit uprating cap, arbitrary and unfair benefit sanctions, the bedroom tax, the £26,000 cap on benefits for families, the imposition of council tax on even the poorest households (in England at least), the stress of continual reassessment (if they are ESA claimants in the work-related activity group), the humiliation of having to visit food banks and who knows what else…
The people who are desperate to get any kind of paying job, despite the fact that zero-hours contracts could make them worse-off than unemployment, due to the effect on in-work benefits, despite the fact that those in-work benefits are also being squeezed hard, and despite the fact that there are at least five jobseekers for every job that becomes available…
These are the people that government ministers, backbenchers and the right-wing press keep victimising with their endless attacks on “skivers”, “scroungers”, the “feckless”, the “idle” and the “lazy”!
If I was unemployed and my MP had been caught slagging me off while praising these good-for-nothing so-called work programme ‘providers’, I would make it my business to bring them before the public, lock them into some medieval stocks and pelt them with rotten vegetables. Public humiliation is the least they should get for this continual insult to common decency.
But wait! There’s more.
It turns out that, not only are these work programme providers a bunch of lazy good-for-nothing parasites, but many of them are also a bunch of foreigners who’ve come to the UK to take our jobs!
Ingeus is Australian. G4S is part-Danish. Maximus is American.
It seems that all the politically-fuelled and media-driven anger against immigration into the UK from the rest of the European Union and beyond may be designed to distract us all from the fact that foreign firms are immigrating here to take government jobs that should be yours, and to steal your tax money.
Nobody can say they’ve earned it, after all.
But let us not be unfair. It would be wrong to concentrate on welfare-to-work providers when all of government is riddled with foreign interlopers.
Look at the Treasury, where the ‘Big Four’ accountancy firms have been re-writing tax law to suit their tax-avoiding corporate clients for the last few years. They are Deloitte (American), PriceWaterhouseCoopers (part-American), Ernst & Young (part-American) and KPMG (Dutch).
And then there is the huge, criminal, foreign firm that has been advising the Department for Work and Pensions on ways to privatise the welfare state since the mid-1990s – a firm so controversial that there is currently a moratorium on the mention of its name in the national mainstream media. It is an American insurance giant called Unum.
The best that can be said of these five corporations is that – at least to the best of our knowledge – they do work for a living.
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Is anyone else sick of employers bleating that the minimum wage is hindering their business?
They must think we’re all stupid.
A few of them were on the BBC’s Any Answers on Saturday, saying the minimum wage keeps pay down, and that people can’t afford to go to work – especially if they live in London – because their housing costs are paid by benefits. This is nonsense.
The minimum wage is exactly what it claims to be – a minimum. And if people aren’t getting up to work for it because benefits give them more, we can see that it is not enough.
But let’s take this further: We all know that Landlord Subsidy is being restricted – especially in London, where landlords charge more than in the rest of the country. This means that people on low incomes in rented homes will be unable to pay the bills and will be forced to move somewhere cheaper (if they can find it), as intended by our extreme right-wing government.
Where are all these minimum-wage employers going to find their minimum-wage workers then?
Even that isn’t the limit of it, though. We know from such sources as the summer’s excellent Dispatches documentary on Channel 4 that employers have found ways around the minimum wage.
They have taken people on as self-employed contractors who are paid a flat rate for a day’s work – no matter how long that work takes – and being self-employed, these people pay their own taxes and National Insurance, and get no time off for holidays or if they are ill.
They have taken on workers on part-time contracts, meaning reduced or non-existent holiday and sick pay entitlements – and then boosted up their hours to full-time levels with fake ‘overtime’ offers.
They have employed workers on zero-hours contracts, meaning they can demand an employee’s presence at any time and make them work for as long – or short – a period as required. Again, there are no tax administration obligations, NI, sickness or holiday benefits.
The result is very nice for a government of liars such as the current Westminster administration, because it seems they have managed to increase employment (in fact the last figures showed unemployment is greater than at the end of the Labour administration in 2010, but by such a small amount that it’s not worth mentioning).
Production, on the other hand, has remained flat. If more people are in work, it should have increased.
That is how we know we are looking at a con.
If more people are in work but production hasn’t gone up, we must question the incentive for this increased employment. It has already been mentioned: The lack of holiday and sick pay entitlement, National Insurance and tax admin obligations. The larger the employer, the larger the saving – but this doesn’t mean small firms aren’t feeling the benefit.
The minimum wage worker’s income is topped up by benefits – but the government is cutting these back. Landlord Subsidy in London won’t be enough for people on the kind of contracts described here to stay in their homes, and this means a consequent job loss if they have to move out of the area.
Tax credits are being removed; child benefit restricted. Universal Credit (if it ever works) will operate in real-time, adjusting benefits to ensure that low-paid workers remain in an income trap for as long as their wages remain below a certain level.
Employers reap the benefits. But even they are being conned, because this can’t last forever.
Imagine a Britain without in-work benefits but where the living wage has not been introduced nationwide (this will be a reality in a few years, under a Coalition or Conservative government). Workers on the self-employed, part-time or zero-hours contracts described here will not earn enough to survive.
Private debt will increase exponentially, leading to increased mental illness as the stress of trying to cope takes its toll on the workforce. Physical illness will increase as people cut back on heating in their homes and food in their fridges and larders. Result: malnourishment and disease.
What happens then? It’s hard to say. It may be that employers will take on increasing numbers of cheap foreign workers – but there is already resentment at the influx of immigrants from the European Union and this could lead to civil unrest.
It seems likely that the largest firms will leave these shores. If we compare them to huge parasites – and we can – then the host will have been drained almost dry and it will be time to move on and find another to treat the same way. These are the companies who have reaped huge rewards from tax avoidance, aided by the ‘Big Four’ accountancy firms – KPMG, Deloitte, PricewaterhouseCoopers and Ernst & Young – who have been writing – into British law – ways for them to get out of paying their share.
The smaller employers might keep going for a while or collapse; it depends how much their bosses save up for the inevitable crash. Deficit financing of their business will support them for a while but, if they don’t have any ideas, they’ll go under.
All because a few very greedy people just won’t pay a reasonable amount for a hard day’s work.
They get on the media, telling us they can’t afford higher wages. In that case, why are they even in business? If they need a workforce of a certain size, but cannot pay a living wage, then they simply should not bother. All they are doing, in the long run, is contributing to a monumental confidence trick that will cause immense harm to the economy and the nation’s health.
Of course, the UK did not always have in-work benefits. People used to be paid enough to make ends meet. We should be asking why that changed and who benefits. A return to that situation would benefit the country enormously – but it isn’t going to happen on the minimum wage, and it isn’t going to happen on zero-hours contracts.
It’s time to name these firms and ask bosses who employ on these terms why those contracts are necessary and why they feel justified in the damage they are causing.
And while we’re at it, it’s time to ask our MPs why they tolerate it, too.
Ed Miliband’s Living Wage gamble: It’s a stop-gap solution while a Labour government works on re-balancing the economy, but will small businesses go for it? [Picture: BBC]
Just one day after the TUC leader said the Coalition has broken the historic link between economic growth and rising household incomes, Labour has proposed a way to restore it.
Since the recovery began, earlier this year, Vox Political has been pointing out its lack of impact on the poorest households in the UK – readily evidenced by the rise and rise of food banks across the country. This is because any profits are being funnelled up to those individuals who are already earning the most and – thanks to our bizarrely-slanted tax (avoidance) system – into tax havens.
According to the BBC, Frances O’Grady told a conference yesterday that “households are being excluded from the benefits of growth. Unless this changes, the recovery will be meaningless to the vast majority of people across Britain.
She said the government was “desperately short of solutions”.
A Treasury spokesperson said the government’s economic plan (wait a minute! The government has an economic plan? When did they come up with that?) was “the only sustainable way to raise living standards” despite all the evidence to the contrary.
This person also said the government’s plan was “slowly but surely working”, even though the economic recovery has nothing to do with any government action.
But today Ed Miliband, the Labour leader, unveiled a plan that made nonsense of the Tory mantra that the government is making work pay because, instead of cutting benefits to make it seem more desirable to have a wage (even though the amount earned is still a pittance), it will actually add cash to working people’s pay packets.
There is a drawback, in that it means a Labour government will offer businesses a 12-month tax break if they agree to pay employees the Living Wage. A tax break is legalised tax avoidance, and we really have enough of that going on already, thanks to the efforts of the Big Four tax avoidance accountancy firms – KPMG, Deloitte, PricewaterhouseCoopers and Ernst & Young – who happen also to write UK tax law for George Osborne (because he doesn’t know how).
But it’s only for a year while the Living Wage gets bedded in. It’s a stop-gap solution to lift workers out of poverty while Labour introduces long-term plans to re-balance an economy that has already been seriously damaged by three and a half years of crazy Conservative ideological pummelling. Who can predict the harm after a full Parliamentary term?
And the Living Wage is becoming even more desperately-needed in the UK than ever, after a study showed the number of workers earning less than its £8.55 per hour (in London) and £7.45 per hour (elsewhere) increased by eight per cent in the last year (from 4.8 million to 5.2 million).
Mr Miliband’s proposal means private firms would be able to claim back about one-third of the cost of raising their staff members’ wages to the Living Wage. This would be good for the government as it would save money on benefit bills and tax revenues would rise.
But costs to businesses would increase. While these could be absorbed by larger companies, smaller firms might struggle to stay afloat.
It is possible, though, that the wage rise would reinvigorate previously-downtrodden workers (as Vox Political has suggested in the past), giving them a sense that they are valued and a reason to invest their energy in the company’s success.
The masks were adopted by the loosely-affiliated protesters Anonymous as a clear indication of members’ feelings towards a Conservative/Liberal Democrat Coalition government whose actions, they believe, have been increasingly fascist.
These people have a point.
Has anyone read V for Vendetta lately? An early chapter, ‘Victims’, provides the historical background to the fascist Britain of the story – and provides very disturbing parallels with the current government and its policies.
In the story, there is a recession and a nuclear war. Fortunately, in real life we have managed to avoid the war (so far) but the recession of 2007 onwards has caused severe hardship for many, with average wages cut by nine per cent (in real terms) due to government policies.
In the story, the line “Everybody was waiting for the government to do something” is notable. Isn’t that just about as British as you can get? As a nation, we seem unwilling to take the initiative; we just wait for someone else to do something. We queue up. And then we complain when we don’t find exactly what we wanted at the end of the queue. But then it’s too late.
Does the government “do something”? Well, no – not in the story, because there isn’t any government worth mentioning at this point. But then… “It was all the fascist groups. The right-wingers. They’d all got together with some of the big corporations…”
Here’s another parallel. How many corporations are enjoying the fruits of the Conservative-led (right-wing) government’s privatisation drive?
The NHS carve-up signified huge opportunities for firms like Circle Health and Virgin, and Bain Capital (who bought our blood plasma supplies). Care UK, the firm that famously sponsored Andrew Lansley while he was working on the regressive changes to the health service that eventually became the Health and Social Care Act 2012, no doubt also has fingers in the pie.
The Treasury is receiving help – if you can call it that – from the ‘big four’ accountancy firms – PricewaterhouseCoopers, Deloitte, Ernst & Young and KPMG. They have written the law on tax avoidance. By no coincidence at all, these are the firms that run the major tax avoidance schemes that have been taken up by businesses and rich individuals who are resident in the UK. For more information on the government’s attitude to taxing the rich, see Michael Meacher’s recent blog entry.
The Department for Work and Pensions has employed many private firms; this is the reason that department is haemorrhaging money. There are the work programme provider firms who, as has been revealed in previous blog entries, provide absolutely no useful training and are less likely to find anyone a job than if they carried on by themselves; there are the IT firms currently working on Universal Credit, about which Secretary of State Iain Duncan Smith lied to Parliament when he said he was having to write off £34 million of expenditure – the true figure was later revealed to be closer to £161 million, almost five times as much; there are Atos and Capita, and probably other firms that have been hired to carry out so-called ‘work capability assessments’ of people claiming sickness, incapacity and disability benefits, according to a plan that intentionally ignores factual medical evidence and places emphasis on a bogus, tick-box test designed to find ways to cut off their support; and there is Unum Insurance, the criminal American corporation that designed that test, in order to push British workers into buying its bogus insurance policies that work on exactly the same principle – this is theft on a grand scale.
So we have a government in cahoots with big business, and treating the citizens – the voters – like cattle. We’ll see more of this as we go on.
“Then they started taking people away… All the black people and the Pakistanis…” All right, these social groups have not been, specifically, targeted (yet) – but we have seen evidence that our government would like to do so. Remember those advertising vans the Home Office funded, that drove around London with a message that we were told was for illegal immgrants: “Go home”?
“That is a term long-associated with knuckle-dragging racists,” said Owen Jones on the BBC’s Any Questions.
“We’re seeing spot-checks and racial profiling of people at tube stations. We have a woman on the news… she was born in Britain; she was told she was stopped because she ‘didn’t sound British’. And we have the official Home Office [Twitter] account being used to send gleeful tweets which show people being thrown into vans with a hashtag, ‘#immigrationoffenders’.
“Is this the sort of country you want to live in, where the Conservatives use taxpayers’ money to inflame people’s fears and prejudices in order to win political advantage? Because I don’t think most people do want that to happen.”
This blog’s article on the subject added that not only this, but other governments (like that in Greece) had created an opportunity to start rounding up anybody deemed “undesirable” by the state. “Greece is already rounding up people of unorthodox sexuality, drug addicts, prostitutes, immigrants and the poor and transferring them to internment and labour camps,” it stated.
Note also the government’s response to criticism from UN special rapporteur on adequate housing Raquel Rolnik. Grant Shapps and Iain Duncan Smith and their little friends tried to say that she had not done her job properly but, when this was exposed as a lie, they reverted to type and attacked her for her racial origin, national background, and beliefs – political and personal. You can read the lot in this despicable Daily Mail smear piece.
Back to V for Vendetta, where the narrative continues: “White people too. All the radicals and the men who, you know, liked other men. The homosexuals. I don’t know what they did with them all.” Well, we know what Greece is doing with them all, and in the story, such people also ended up in internment and labour camps. We’ll come back to that.
“They made me go and work in a factory with a lot of other kids. We were putting matches into boxes. I lived in a hostel. It was cold and dirty…”
Last month this blog commented on government plans for ‘residential Workfare for the disabled’, rounding up people with disabilities and putting them into modern-day workhouses where someone else would profit from their work while they receive benefits alone – and where the potential for abuse was huge. If that happens, how long will it be before every other jobseeker ends up in a similar institution?
A while ago, a friend in the cafe I visit said that a Tory government will always see every class of people other than its own as “livestock”. That’s the word he used – “livestock”. From the above, with descriptions of people being treated like cattle, or being herded into the workhouse for someone else to profit from their work, it seems he has a very strong case.
So let’s go back to these internment and labour camps – in V for Vendetta they’re called “resettlement” camps. A later chapter – The Vortex – reveals that inmates at such camps are subjected to unethical medical experimentation. The doctor carrying out the trials notes in her diary that the camp commandant “promised to show me my research stock… they’re a poor bunch.”
Her research stock are human beings who have been subjected to conditions similar to those of the Nazi concentration camps. Notice the language – this doctor considers the other human beings taking part to be her property. And they are “research stock” – in other words, she does not see them as other human beings but as livestock – exactly as the friend in the cafe stated.
And jobseekers in today’s UK are being coerced into experimental drug trials, disguised as job opportunities, according to the latest reports.
V for Vendetta‘s tagline – the blurb that set the scene – was: “Fascist Britain, 1997”. It seems the only part that its author, Alan Moore, actually got wrong was the date.
Snouts in the trough: The Conservative-led government is so shameless it thinks it can get away with brutal cuts to our standard of living – the week before an election.
It’s all been about freedom this week – or the lack of it.
Speaking before the event, Mr McGowan said a few words that were particularly illuminating. “Without a mandate, having concealed their health policy, this government is giving away NHS contracts to the highest bidder,” he said.
“Under the cloak of austerity, the primary purpose of this government is to move public money into private pockets, as fast as humanly possible. They are like pigs at the trough of public money.
“These people in government are liars, criminals and thieves and should be arrested for embezzlement of public funds. A staggering 206 parliamentarians have recent or present financial private healthcare connections; amazingly all of them were allowed to vote on the Health and Social Care Act.
“This is not a democracy.”
You’d have expected this expression of free speech to have received a huge amount of coverage in the free press, wouldn’t you? Well, think again because I just checked: An article in the Metro and a video on something called London24. That’s all.
Ah, but there’s always Facebook, where bloggers such as myself can freely direct readers such as yourselves to our work and highlight the subjects not covered in the so-called popular press, isn’t there?
Well, this was a story that Facebook was doing its damnedest to make sure didn’t get out.
Facebook then seemed to get a taste for censorship: The Pride’s Purge blog by Tom Pride received similar treatment after it posted links to an openly-satirical article (It was plainly marked ‘Satire’) about the Department for Work and Pensions and Atos.
Tom claimed in a later post that a JobCentre Plus worker “openly bragged” to him that JCP had complained to Facebook about him, and this had led to the censorship of his work.
Even this blog, which only posted links to other articles about these issues, was targeted for attack. As readers who link here from Facebook will know – you alerted me to it – we had a couple of days when visits here were accompanied by this stern warning: “Facebook thinks this site may be unsafe. If you’re not familiar with it, please provide feedback by marking it as spam (you’ll be brought back to Facebook).” As site statistics show, this was enough to put many readers off.
I wasn’t having it. I have written to Facebook, pointing out that the unfounded allegation is defamatory and demanding that reparations must be made – to charity, and to the Labour Party (of which I am a member), since this site is not for profit and the attacks seemed to be centred on left-leaning bloggers. They’ve got three weeks to respond, then I start adding noughts to the amount that I suggested.
Facebook has said the mass censorship was a mistake made by its automated systems – but you’d have to be gullible in the extreme to believe that.
So much for freedom of speech; so much for freedom of the press; so much for freedom on the Internet.
Yesterday it emerged that a man had been held in prison for two weeks after claims were made that he made a “threat to kill” during an Atos work capability assessment.
Steve Topley, a 49-year-old Hucknall father with multiple health conditions including Reynard’s syndrome, who has a heart replacement valve and lost one of his kidneys to cancer, and is on a strict medication regime including treatment to stabilise his blood levels and maintain safe blood pressure, was whisked away after he made comments about a person who was not present at the assessment.
He was arrested, subjected to a mental health assessment which offered no reason to detain him, so was re-arrested and taken to Nottingham police station where he was charged and kept in custody. He was refused bail twice in closed courts which, his family said, they were refused permission to attend.
Today (Friday) he was taken to another secret court, where he was charged, admitted the crime, and bailed – with the likelihood of a community sentence waiting for him at his next appearance.
Johnny Void, writing about this in his blog, made some particularly apposite comments on the subject, as follows: “This incident happened in the middle of an Atos assessment which are notoriously stressful and frightening for claimants. If he hadn’t been put through that, it is unlikely he would have said whatever he said, which it seems was not a very credible threat, at least as far as the Judge was concerned.
“It can make people react irrationally or angrily and they end up doing things they wouldn’t ordinarily do. The context these events take place in is often ignored by ‘professionals’, because to them it is all just a job and they can’t understand why people are not being reasonable. The stark terror felt by some people facing courts, benefit assessments, arrests, bailiffs, prisons or even more seemingly benign institutions such as social services, Jobcentres and community mental health teams can often cause people to destroy themselves. This can happen even if ‘professionals’ concerned do their jobs properly within the constrain of the system and no-one is really personally culpable.”
So much for personal freedom – but wait. The situation here is actually worse than even this story makes out. I am indebted to Vox Political commenter vince032013, who tells us the following, about so-called ‘reforms’ to Legal Aid (italics mine):
“Things might be about to get a lot worse. The government are now planning on reforming the criminal justice system. Highlights are 1. Suspects in the police station will not be able to choose a solicitor. They will be appointed one. 2. The number of solicitors’ firms is to be reduced by 75 per cent (that’s not a typo – 75 per cent). 3. The reduction in the number of solicitors is to be achieved by putting criminal work out to tender. 4. The bidders are not allowed to bid at over 82.5 per cent of the current cost of running a criminal case. 5. The consultation which has introduced this idea states in terms that it does not want solicitors to offer any more than an “acceptable” level of service to suspects. 6. Once charged, defendants may be represented in court by someone with no Crown Court trial experience (and will not be able to exercise a choice to change that representative). If you’re interested read the consultation here
In other words, this Conservative/Liberal Democrat government is determined to rig the justice system against anybody who becomes caught up in it. The conditions described by the commenter are utterly corrupt and offer nobody in this country any chance at justice – unless they can afford it. So the really serious criminals and gangsters have nothing at all to fear.
Meanwhile…
Today we also discovered that the so-called “big four” accountancy firms – Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers – who were brought into the Treasury to help the government draw up tax laws, have been using the ‘insider’ knowledge they have gained to help wealthy clients avoid paying taxes. They have been telling multinational corporations and wealthy individuals how to exploit loopholes in the legislation they have helped to write – according to the House of Commons’ public accounts committee.
This represents a staggering betrayal of the working- and middle-class citizens of this country, who have no choice but to pay all the tax that the government demands from them or face imprisonment – and an appalling display of hypocrisy on the part of David Cameron, the British Prime Minister who, only yesterday, said he planned to use the UK’s chairmanship of the G8 nations to tackle what he himself described as “staggering” worldwide levels of tax evasion and avoidance – levels that he, himself, is helping to boost.
Now, I’m not voting in the elections next week. There isn’t a poll in my part of the country. But if you are planning to vote…
Considering the way the government has pushed through its plans to sell the NHS to the highest bidders (without a mandate, having concealed its health policy); considering the way it has been implicated in attempts to stop the public from finding out about the plans and what they mean (in conjunction with Facebook); considering how its servants take it upon themselves to subject very-ill individuals to extreme pressure and then imprison them on the basis of what they say in those circumstances; considering the plan to deny justice to the poor and make high-quality legal advice available only to the extremely rich people, including rich criminals, who can afford it; and considering the fact that it has opened the door for those who should be paying the most tax in this country to avoid doing so altogether – while claiming it is doing the exact opposite…
Taking all those issues into consideration, if you are a working-class or middle-class person planning to vote Conservative or Liberal Democrat next Thursday, then for your own safety, submit yourself for medical assessment because you must be barking mad.
Laughing all the way to the bank: Thanks to these two grinning goons, UK tax law is now totally bent – in their favour.
Why are the ‘Big 4’ accountancy firms – the companies at the heart of every major scheme for tax avoidance – being allowed to make the law on – guess what – tax avoidance?
Could it be because our comedy Prime Minister, David Cameron, and his part-time Chancellor, Gideon George Osborne, are both either tax avoiders themselves, or have strong connections with tax avoidance? I think it could.
The firms implicated – PricewaterhouseCoopers PwC, Ernst & Young, KPMG and Deloitte – received a damning verdict from Parliament’s Public Accounts Committee today. An internal HMRC study estimated that these four firms “were behind almost half of all known avoidance schemes”. But that doesn’t mean their government contracts will be terminated.
Look at Robert Edwards, senior manager in international corporate tax from KPMG, who was seconded to the Treasury for 20 months to help develop policy on Controlled Foreign Companies (CFC). His speciality was advising multinationals on tax-efficient cross-border financing and restructuring.
What is the UK’s new policy on CFCs? If a British company has subsidiaries overseas, and it transfers ownership of its brands to a tax haven country like Switzerland, its profits on those brands will no longer be subject to UK tax – meaning the new system encourages firms to switch their money into tax havens. Previously, their profits would have been taxed on the difference between what they pay in the tax haven and the UK rate – a disincentive to moving the money as the amount paid in tax would be much the same.
Only UK-generated income will be taxed in the UK, while the costs of funding overseas operations remain allowable against UK profits for UK tax – in other words, the costs of overseas operations will be subtracted from company profits by HM Revenue and Customs, when it considers how much tax to charge.
This is Osborne’s economics in action – big bonuses for big businesses, and all tax-free. Alongside the huge cuts in Corporation Tax (down by a quarter since the Coalition came into office) the loss to the Treasury is expected to be around £20 billion over the lifetime of this parliament, according to its own estimates.
There is no benefit to small- and medium-sized British companies.
Look at the predatory schemes set up by these companies. The Guardian has reported that in November 2012, a tax tribunal threw out an Ernst & Young inspired scheme that enabled Iliffe News and Media to create a new asset – newspaper mastheads. This asset was created for a nominal sum of £1. It was leased back to its subsidiaries who paid the parent company over £51 million in royalties and thus reported lower profits.
PricewaterhouseCoopers devised a scheme to avoid capital gains tax on profits involving a series of circular and self-cancelling transactions resulting in the creation of assets and disposals which somehow managed to cancel out the profit. This scheme was sold to 200 entrepreneurs and, if successful, would have enabled them to avoid capital gains tax on profits of around £1 billion.
KPMG cold-called an amusement arcade company with a scheme to avoid paying VAT on its operations, using Channel Islands entities.
And Deloitte devised a scheme to enable bankers – bankers! – to avoid income tax and national insurance contributions on £91 million of bonuses.
These are just schemes that have become public knowledge. Many more are sure to exist. The predatory practices of major accountancy firms include creating sham transactions, phoney losses and phantom assets to enable their clients to dodge taxes.
But no accountancy firm has ever been disciplined, the UK Treasury has never sought to recover legal costs from the promoters of the schemes and, instead, the big accountancy firms continue to receive taxpayer-funded contracts.
Bankers, accountants, politicians – right up to the Prime Minister. If the proposal in my e-petition – to prevent MPs speaking or voting on legislation likely to make money for them – became law, either Osborne would not be Chancellor of the Exchequer or UK tax receipts would be much healthier than they are today.
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