Tag Archives: money

Spring Budget: Tory – and Labour – economics are nonsense

Jeremy Hunt: he’s trying to gaslight us into thinking we need to save money. We don’t.

The Conservatives want to cut the civil service again, for no very good reason. But the important part of Jeremy Hunt’s comment on the subject is that he thinks we can have better public services without spending money on them.

Liam Thorp is absolutely right:

Cutting funding for public services has not improved them. In fact, they are considerably inferior – across the board – to their efficiency in 2010.

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And it seems clear that taking the money away from this useful purpose hasn’t stopped the Tories from spending money like it was going out of fashion:

Only £100 billion? Gary Stevenson reckons it’s eight times as much.

And with the Budget coming up, Hunt also made another outrageous claim that should be blown away as soon as possible:

In fact, as the article states:

in the last four years, five different Tory chancellors have pledged to bring taxes down – only for them to rise to a historic level.

In fact, the current tax burden in the UK is the highest since World War 2.

The problem is that the Tories are trying to gaslight us into thinking that national finances are like household budgets – and they aren’t.

Sadly, this thinking appears to have become contagious as Labour’s Shadow Chancellor, Rachel Reeves, is coming out with the same nonsense:

Oh, and the media are keen to echo the lie, too – but some of us are debunking it:

Bear this in mind:

The simple fact is that money never runs short in an economy like that of the UK, where the government can create as much as it needs.

Money is simply a tool – the lubricant that allows the economy to work by making it easy for us to buy and sell the goods and services that we need.

Government creates money to fund projects that it believes the country needs – or at least, it should. In recent years, the Tories have simply given hundreds of billions of pounds to their rich friends for no good reason at all.

As a result, those rich people have bought up the nation’s assets, making everything more expensive for the rest of us – those least able to afford them. The majority of the people of the UK have been priced out of their own market.

So we now live in a country where everything is phenomenally expensive, and we’re being taxed more than in living memory for services that are rubbish.

And neither the Tories nor Labour intend to do anything about it.

You would have to be insane to give your vote to either of them.


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MPs give themselves £48k pay rise to defend against a threat that doesn’t exist

Backhander: politicians in Westminster have found another way to bleed public funds into their own hands – a fund to defend against a claimed threat of violence against them… that does not exist.

UK Home Secretary James Cleverly has announced Parliament’s response to claims that MPs are being threatened by “Islamists” or “Muslims” or “pro-Palestine protesters” or whoever the bogeyman is today.

It’s £31 million, to be divided between MPs so they can pay for extra security, which comes to almost £48,000 per MP – although it seems likely to be used to help other politicians too:

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People have drawn the obvious conclusion:

With no clear evidence against any individual or organisation, we are seeing MPs diverting public money away from public services and the good of the nation and towards themselves – for no reason.

And take careful note of the comment about Diane Abbott – who has received more abuse and threats than every other MP in Parliament combined, but was never offered any publicly-funded protection before now. Is it because she doesn’t kowtow to the rich and powerful?

The conclusion – about the Tory and Labour MPs who made this possible – is painfully clear:

They are lining their own pockets while they can.


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There is more money in the UK economy than ever before. Who’s got it?

Money, money, money: Rishi Sunak says there’s hardly any available for public services but there is more of it in the UK economy than ever before – more than three times as much as when the Tories came into office in 2010. Why doesn’t he use some of that, rather than leaving it in the hands of people who didn’t deserve to be given it in the first place?

Who is hoarding all the cash?

There is currently around £2.7 trillion washing around the UK economy somewhere. It’s not debt, as your mainstream Establishment politicians keep telling you, because the system needs to have money in order to work. It’s the blood that keeps the body alive; the oil that keeps the engine working. This Writer demonstrated as much in a previous article.

In a population of 68 million people, £2.7 trillion comes out as around £40,000 per person – easily enough for us to be able to pay for top-level public services and have enough left over to treat ourselves.

But we are constantly being told – most recently by Keir Starmer – that there is not enough money to provide the public services that we need; to re-nationalise our national utilities that are mostly making profit for firms owned by foreign governments, to restore our rotting water and sewage network that greedy private shareholders have allowed to fall into ruin while they took our bill payments for themselves, to invest in environmentally-friendly power and technology, to provide cheap housing… the list goes on and on.

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So where is all the cash? It must have gone somewhere, right?

The answer is that it has been given to extremely rich people who don’t need it, mostly (for example, in the case of the Covid-19 PPE scandals) in return for goods and/or services that didn’t actually work.

If you believe people like Gary Stevenson (and I tend to), these people have then hoarded that wealth, using it only to buy assets – property or businesses, in order to make them too expensive for the rest of us to be able to afford.

These things may then be rented or sold back to us at a price so high that we need to go into debt (think how much a mortgage costs these days) and spend the rest of our lives trying to pay the money back to them, with interest, so they can sit back on their fat backsides, eating lotus or whatever it is the idle rich do.

Remember: the inflated prices they ask us to pay are entirely arbitrary. They don’t have to charge us the Earth for anything because they are already rich and don’t need the cash to support them; a far lower price would be enough for them to get by.

So (again) if that’s where the cash has gone and what it is doing there, why is this happening?

The answer can only be: to keep the rest of us down. By denying us properly-funded public services, they force us to pay for expensive private schemes that don’t work because of profiteering, and this keeps us poor. Because we are poor, we have to work like slaves to try to make ends meet.

And this is the logical conclusion of all the neoliberal politics of the last 40-50 years: the creation of a new slave state, toiling in the dirt to keep a tiny group of elite citizens in absolute luxury.

Am I mistaken?

If you think so, then ask yourself: Where is my £40,000?


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How money goes from the poor to the rich – Gary’s Economics

Rent, profit and interest are all the same, according to economist Gary Stevenson.

Not literally – they work in different ways – but they are all payments from poor people to rich people.

Here’s Gary to explain:

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So you have to pay money to the owners of the resources, in all three situations – you have to work for that money, in order to let these people have it for no effort. They can then use the money to buy more assets.

We know that those of us who pay mortgages are only able to do it later in life, because it takes longer to accumulate the money to even think about a down-payment. This means that, by the time we’re 40, whereas our grandparents may have been nearly finished paying off their mortgage, and our parents around halfway through, we might have just started paying – and the amount we’re paying is more, plus interest.

This feeds in to Gary’s claim that each generation is getting progressively poorer than the last.

You can read more about that here.


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What happened to the £350k taken by Sunak’s wife’s now-liquidated firm?

Akshata Murty and her husband, UK prime minister Rishi Sunak: her firm took money from his government and then went into liquidation. Will she tell us what she has done with our cash?

Take a look at this:

A company owned by the prime minister’s wife Akshata Murty, which received almost £350,000 of UK grant money, is now being mysteriously wound up, it has been revealed.

Murty’s investment company, Catamaran Ventures, is being liquidated, it was announced on the London Gazette, the official public record, published on December 28.

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The move has raised a number of questions, with Carol Vorderman posting on X: “NEWS

Has non-dom, tax avoiding, Mrs @RishiSunak, Akshata Murthy, just rung up a home removals firm? #SunakHomeRemovals

“She applied to wind up her controversial company Catamaran Ventures on Dec 21st – 2 wks ago. I will post later about the many times the fund benefited from the public purse.”

Ms Murty’s company made headlines in May last year, when it was revealed by the Sunday Times that it held shares in Study Hall, an education start-up which had received almost £350,000 of UK grant money.

It was also reported in September that Catamaran Ventures UK was being wound down. A number of the startups that the fund backed received cash injections through taxpayer-backed schemes, including the upmarket furniture firm, New Craftsmen, which collapsed into liquidation in November 2022 after receiving £300,000 in taxpayer-funded loans.

So this firm, owned by Rishi Sunak’s wife, took £350,000 of government money and then went bust?

What happened to the cash? If there’s money invested in Study Hall, and that hasn’t gone under, then wasn’t there a possible return to come from that? Otherwise, why invest in it at all? To whom would that money return if Catamaran doesn’t exist any more?

If firms are given money by the government, aren’t they expected to tell the government what they have done with it and how it is fulfilling the purpose for which it is given? How is that happening?

This is not a simple case of a firm running out of money and going into liquidation. The money it has squandered – if it has – is public money, for which Ms Murty must account. Personally, This Writer would like the Treasury to have that money back, if it hasn’t been used as intended.

Am I right?

Source: Company owned by Sunak’s wife that received £350k in grant money gets liquidated – Left Foot Forward: Leading the UK’s progressive debate


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This video shows everything that’s wrong with Tory money policies

The clip in the tweet below was made for an election – but it doesn’t matter which, because it is just as relevant now.

It’s an attack on “trickle-down” politics that demonstrates the difference between putting money into the economy where it is needed, and draining it out by giving it to the already-rich who will do nothing with it.

The “trickle-down” argument has long since been demolished but the Tories haven’t changed their policy; they just changed the argument so it now relies on dubious morality.

But if you spread this video around a bit, fewer people will be fooled.


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Spendthrift Suella: Braverman wastes cash on herself – and on cruelty to refugees

Benefits Braverman: how the Mirror reported the way the Home Secretary has been fiddling the system.

Is this what you call value for money?

Suella Braverman – like the rest of the UK’s current Tory government – seems to be adapt at playing the system to secure what she wants for herself and her Home Office. Apparently the same rule seems to apply to both:

The cost to the public doesn’t matter.

So we see that at home, she has exploited a loophole allowing her to claim £25,000 that she doesn’t need:

The Mirror article states:

She has claimed nearly £25,000 in five years for her London house, while living rent-free with her parents when not there.

Such handouts are designed to prevent MPs who live outside London from being out of pocket because they have to run two homes – but a Mirror investigation suggests Ms Braverman uses them to pay the household bills on her £1.2million family pad in Bushey, Herts.

It is within the rules but not “in the spirit” of them, one MP said.

Her expenses claims are all within the rules, but the hardline Tory, who earns £67,505 on top of her MP salary of £84,144, has been accused of exploiting a loophole in the system.

Ms Braverman, who recently railed against a “Benefits Street culture”, told watchdogs she “fully funds” the home she stays at in Fareham, Hants.

But she failed to mention it is her parents’ house and so costs her nothing in rent.

And at work, she has refused to roll out an accommodation scheme for people who have come to the UK to claim asylum that would cut costs in half – apparently because it is not cruel enough:

According to the Graun,

 a Home Office-funded scheme in Bedfordshire … cut the cost of accommodating refugees and migrants by more than half when compared with placing them in detention. The savings came through housing people and giving legal and welfare support.

This week, the UNHCR (the [UN] refugee agency that helps the UK government improve its asylum system) will praise [the system].

The home secretary, however, is intent on overseeing a huge increase in the Home Office’s detention estate, which experts estimate will take billions to fund… The Home Office is also paying more than £5m a day to house asylum seekers in hotels.

Meanwhile, the illegal migration act will, says the Refugee Council, lead to “tens of thousands”’ of refugees being detained, with internal government projections indicating costs could top £3bn over the next two years. A report this week by IPPR thinktank is expected to warn that the law will only worsen the chaos.

The UNHCR’s evaluation of the Home Office-funded pilot is expected to praise the Bedfordshire scheme because it was “more humane” and treated refugees and migrants with civility. Critics say it is this aspect that has seen the scheme effectively abandoned by the Home Office, whose bill gives the home secretary a legal duty to detain and remove anyone deemed to be entering the UK illegally.

Sources with knowledge of the scheme said: “The findings fly in the face of the illegal migration act. They certainly contradict the Home Office narrative and rhetoric of ‘invasion’ and ‘scary migrants.’” Shortly after she was reappointed as home secretary by Rishi Sunak, Braverman told the Commons last October that refugees and migrants crossing the Channel in small boats were “the invasion on our southern coast”.

The report stated that “The King’s Arm Project, based in Bedford, has since August 2020 supported 75 vulnerable migrants of 23 nationalities, offering them legal advice, clothing, mental health support, English language learning and GP registration while in the community.

“The pilot was more cost-effective than detention and led to better outcomes, such as settled status. Fewer than half of those held in immigration detention centres are deported.”

The demands of the new Act of Parliament should not have been relevant to the pilot scheme in Bedford, as its findings were made available to the Home Office last summer. It is not even the only “alternative to detention” scheme to be wound up by the home office – one in Newcastle was ended in 2021.

Instead, her latest development is a plan to spend £306 million creating three new “migrant detention centres” to house a total of 1,020 people.

The logical conclusion is clear: Braverman wants to inflict as much unnecessary cruelty on people seeking asylum here as she possibly can, and she doesn’t care how much the country has to pay for it.


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Hey, kids! Oldies in suits just made everything you want more expensive!

Rishi Sunak: the richest man in the UK is the UK’s prime minister. He isn’t affected by inflation or interest rate rises – but he, his government, the Bank of England and businesses are all determined to make sure that you are. How long are you going to sit there and let them mess with you, because you’re “not interested in politics”?

Now do you get why politics should matter to you?

Today (June 21, 2023), we’re all being told that inflation has remained high despite promises from the rich old folk in suits that it would plummet down to more manageable levels.

The reason for this is being touted as high food prices, according to mainstream news outlets like the BBC (UK inflation shock as food costs keep cost of living high) – but this isn’t true. The real reasons are corporate greed and Brexit.

(I know it doesn’t help that the mainstream media keep misleading you. Their job is to distract you away from what’s really happening, of course.)

So the utility firms (energy and water) and the supermarkets are fleecing you by charging whatever they want for goods that they’re actually buying far more cheaply, and this is offsetting the increased costs of importing goods that was caused by Brexit (and the war in Ukraine, although that is a secondary issue now).

The response from the government and the Bank of England is to make everything even more expensive by increasing the cost of money. If you don’t understand how they do this, it’s by raising interest rates on borrowing.

Businesses borrow habitually – for investment, or to finance temporary deficits during hard times, or (as we have learned about the privatised water firms recently) because they are diverting all the money they make into dividends for their shareholders and top executives.

Raising interest rates means the amount they will have to pay back to their lender of choice increases, meaning they have less spending money. Normally this creates a knock-on effect in which they stop buying the goods they need (because they can’t afford them), forcing the suppliers to reduce their prices in order to make sales. As inflation is all about price rises, this means inflation falls.

But that’s not happening at the moment because businesses are simply factoring the interest rate hikes into their pricing structures – they’re passing those rises on to you, the customer.

The result is that prices continue to rise, so inflation remains high.

The economist Richard Murphy explains what has happened in a useful Twitter thread. First, he tells us that the reasons we are being given for inflation are not true:

So inflation is not being caused by influences outside the control of the UK’s politicians and businesspeople. Mr Murphy continues:

Trade unionist Howard Beckett agrees with this, and adds to it usefully:

They’re allowed to do this because our politicians let them. The government could cap prices, but doesn’t want to. Is it because our MPs and their political parties are receiving weighty donations from the businesspeople?

Here’s Mr Murphy again:

So he agrees with This Writer (or more accurately, I agree with him – he’s the expert).

If you’re asking how this has anything to do with you, here comes the bombshell:

But…

The bottom line is that not only have you been deprived of the cash to buy the things that make life worth living (due to cuts that mean your pay is at 2005 – or even 2000 – levels while prices have surged) but you are also now expected to cover the increased prices demanded by the profiteers and the interest rate-setting banks from what is left.

Those are political choices.

Politicians whose own salaries (plus the afore-mentioned corporate donations) mean they aren’t affected by these decisions have used high inflation to take your money away from you.

The reason is simple:

They don’t want you to have any money.

Money provides security, and the lack of it means the lack of security. And an insecure person is controllable; you’ll do whatever you think you must, in order to survive. Right?

The ultimate aim – as This Site and others warned more than 10 years ago – is to put you in a permanent cycle of debt. This provides the fatcats with a population who will work like dogs for peanuts while they reap massive profits. Happy days – for them. Misery for you.

The only way to prevent this is to get rid of the people who are inflicting it on you – and that means using your vote to shift the rot out of Parliament.

Ah, but you don’t vote, do you? You can’t be bothered with politics because it doesn’t affect you.

Take a look in your wallet. Take a look at your bank account. Do you have as much in either as you did last year?

No?

Then politics does affect you. It doesn’t matter if you’re not interested in them; the oldies in the suits are definitely interested in you.

How badly are you going to let them mess up your life before you actually do something about it?


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Boris Johnson’s new lawyers may cost the public more than £1 million. Why pay them?

Money, money, money: why doesn’t Boris Johnson spend some of his own, instead of ours, for a change?

Boris Johnson has sacked the legal team selected for him by the government, after its members provided information to the Cabinet Office that led to a new criminal investigation

And now…

Taxpayers are set to be billed more than a million pounds for Boris Johnson ’s new lawyers, after he sacked the government-provided legal team defending him at the Covid-19 inquiry.

In fact, taxpayers aren’t paying for it – other than indirectly. It’s public money, and if the government wants us to pay it, it will need to tax the money back from us. That hasn’t happened yet.

That being said: I don’t see any reason for the public to continue paying for lawyers that public servants didn’t appoint.

I mean,

It doesn’t seem right, does it?

If he wants to hire his own lawyers, he should damn well pay them himself.

Source: Boris Johnson’s new lawyers set to cost taxpayers more than £1 million – Mirror Online


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The taxman has 55 BILLION items of our data from social media spying. What about data protection?

HMRC: it’s using artificial intelligence to gather information about you. But is it gathering too much?

This does not seem right:

The taxman has been using its own data system for years to snoop on taxpayers.

HMRC holds billions of our data items, including email and bank records, as part of its system used to target taxpayers for investigations.

It has revealed that there are now 55 billion items of data relating to taxpayers in its ‘Connect’ system, which was launched to tackle the growing tax gap, according to tax investigation insurance experts PfP.

The tax gap is the difference between the tax that should be paid and the amount HMRC actually collects and last year the figure stood at £32billion.

The article goes on to say that Connect has been in use since 2010 and its database has now grown to 6,100 gigabytes of taxpayer data.

The implication is that none of the information about any of us has been discarded – and it seems to me that this is in breach of the Data Protection Act.

The fifth data protection principle states that information should not be kept longer than is required for the purpose for which it was collected.

No specific time limit is given but HM Revenue & Customs’ own guidelines suggest that six years is the reasonable limit.

That means, by its own measure, HMRC may have retained seven years’ worth of information illegally.

Source: Taxman is snooping on emails and social media – and now holds 55 BILLION items of our data on its AI system in a bid to tackle tax evasion


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