Tag Archives: spending

Sunak’s spending review shows some common sense. But has he put enough cash into it?

Rishi Sunak looking nervous: is he being honest with us? Does he even know?

There were no surprises in the announcements that formed Chancellor Rishi Sunak’s spending review – but it did mark a major change.

Sunak has abandoned the failed “starve the beast” economic model that was favoured by George Osborne and that caused such economic havoc between 2010 and 2015.

Instead of forcing austerity on the UK by cutting investment, thereby restricting the amount of money passing through the UK economy and shrinking it, creating a spiral of steadily decreasing funds, Sunak has reverted to a tried, tested and effective model.

He has elected to borrow money and use it to pump fresh blood into the economic veins of the country. The question is: can a Tory ever put enough cash into the system?

This Writer was on Twitter during the Chancellor’s speech, and provided my own commentary throughout. I reproduce it here, along with other comments I’ve picked up:

We should all remember that announcements mean nothing; Labour has announced that it will implement all the recommendations of an EHRC review of the way the party handles anti-Semitism complaints but it seems this is because it won’t make any difference to what the party does.

So we need to watch what the Tories do, and check not only the amounts of money they hand out – but who gets it.

The so-called “chumocracy” has had far too much of our money lately and This Writer, for one, fears that they haven’t finished slurping up the blood that keeps our economy alive, vampires that they are.

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Chancellor’s Budget splurge reveals media hypocrisy


It seems Rishi Sunak has announced spending worth £640 billion in his Budget speech on Tuesday – to rapturous applause from the Tory-supporting media.

That’s £140 billion more than the £500 billion offered by Jeremy Corbyn and John McDonnell in their Labour election manifesto last year – that the same media voices ridiculed in a (successful) bid to get more people to vote for the Tories.

What has changed in less than four months, to make the Tory offer praiseworthy when Labour’s was dangerously reckless?

And where’s the money coming from, that wasn’t available before?

That’s what they’re asking on the social media:

https://twitter.com/LKTranslator/status/1238043747201568768

And doesn’t this announcement prove the truth of this comment?

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Don’t believe the Tories. THEIR spending plans are ‘reckless’ and ‘unaffordable’ – because of their Brexit

Sajid Javid: Would you trust him with your money? Really?

The Tories are spinning so hard on their spending plans, it must be making them dizzy.

The reason?

They are lying to you again. Labour’s proposals are sustainable but theirs are not.

That’s the verdict from Oxford University economist Simon Wren-Lewis, quoting the Institute for Fiscal Studies (IFS) and the Resolution Foundation (amongst others) in support.

Both parties are proposing extra spending, and the Tories are trying to scare you with the scale of Labour’s plan:

But they have miscalculated, basing their figures on false assumptions.

Let’s do the facts first:

The Tories’ spending increases are unsustainable because they are saying they will not increase tax.

Labour’s increases – large though they may be – are more sustainable than those of the Tories because Labour has said it will increase taxes – we know from the 2017 manifesto that Corporation Tax will go up, and taxes on high earners. This means Labour will stay within the rules it has set for itself; the Tories will not.

More damningly, though, the Tories cannot sustain their spending plans within the Brexit framework that they have negotiated.

The hard Tory Brexit that takes us out of the Single Market and the Customs Union means greater damage to the economy, along with lower earnings and therefore a lower tax take.

Labour will either negotiate a softer Brexit or cancel it altogether – depending on what the people decide. That means less economic damage, higher incomes, higher taxation… and therefore higher spending.

That is the conclusion of Professor Wren-Lewis, using evidence from those other organisations in support.

He also suggests that the economy – and public spending – is one area in which the Tories will most definitely not want to say this is a “Brexit” election.

They won’t want to mention Brexit at all. Because “once you factor in Brexit, the Tories extra spending is unlikely to be sustainable. They willl be forced to raise taxes or cut spending to keep to their current balance target. It will be even worse if Johnson throws in some last minute tax cuts in a desparate attempt to ensure he gets a majority. The OBR might have shown all this in its budget forecast, but the budget was conveniently postponed.”

(Isn’t it interesting how anything that might reflect badly on the Tories gets postponed? The budget, the report on Russian interference in UK democracy, the inquiry into Tory Islamophobia, the investigation into whether Boris Johnson gave undue support to Jennifer Arcuri – all are on hold, so the Tories don’t look completely corrupt and incompetent, it seems to This Writer.)

And this is what we have seen on the Sunday politics TV shows.

Sajid Javid appeared on the Marr show, spouting a load of unsupported nonsense – and when Andrew Marr called him out on it, he threw his toys out of his pram:

“These are eye-watering levels of spending,” says the Chancellor representing the party that has saddled the UK with a much larger amount of debt.

Then he whines, “It will leave this country with an economic crises within months. Not years – within months.” What a big baby. Professor Wren-Lewis’s figures show it is his spending that will cause any crisis.

And I hope the fact check websites are already investigating this “costofcorbyn.com” website. It’s clearly a Tory site and it seems clear that it is fake news.

Meanwhile, Kwasi Kwarteng appeared on Sky’s Sophie Ridge on Sunday where he admitted that his own party couldn’t provide any numbers to justify its own spending plans.

“I’m not going to bandy around figures,” said clueless Mr Kwarteng. But that was exactly what he was doing. He doesn’t have Labour’s figures because his party’s claims are based on unfounded assumptions – and he didn’t have his own party’s figures because… well, why didn’t he have them?

Because they show that the Tories are the party of financial irresponsibility? And they are afraid to admit it?

Let’s face it – that’s the only conclusion to draw.

One last thought:

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Johnson’s Brexit policy means UK will be MUCH better-off under LABOUR

Valueless: Oscar Wilde said a cynic knows the price of everything and the value of nothing. Boris Johnson doesn’t even know the price of anything. Perhaps that is why he is spaffing your money up the wall like a fool.

Listen to this:

John McDonnell was referring to a report by the respected Institute of Fiscal Studies (IFS), stating that the UK will be £110 billion better-off under a Labour government than with Tory rule, by 2022.

The IFS stated that the outlook for the public finances has “worsened dramatically” since the spring and will deteriorate further if the UK leaves the European Union without a deal.

There can be few clearer statements that Boris Johnson’s leadership is a threat to the United Kingdom and everyone in it.

The report stated that the government’s current spending plans, including a £13.4 billion increase to meet Mr Johnson’s promises on police and schools (but not – notice – the NHS) mean the budget deficit was likely to be £52.3bn in 2020-21, more than double the £21bn forecast by the OBR in March.

But Mr Johnson also promised huge tax giveaways for the rich in his leadership campaign including cuts to Income Tax and National Insurance. If he goes ahead with these, he will harm the national finances even more brutally.

No doubt Mr Johnson – and his chancellor Sajid Javid – will come out with some mealy-mouthed excuse to pacify us all. It will probably involve another claim that the Conservatives are the “party of financial responsibility” and “Labour will bankrupt the country”. But it’s a funny thing – if they think Labour’s fiscal plans are so harmful, why has IFS director Paul Johnson claimed that their own current ideas are almost identical to Labour’s from 2017?

Most tellingly, of course, we know that Boris Johnson is a liar.

You cannot trust him when he says he’ll fund the police. You cannot trust him when he says he’ll fund schools. You cannot trust him when he says he’ll fund our NHS. You cannot trust him when he says he’ll cut tax. And you absolutely cannot trust him when he says the UK will be better-off after his Brexit.

He thinks you’ll vote for him in an election likely to happen before Christmas. Just remember this:

If you vote for a liar, you will only get broken promises.

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Tory post-Brexit spending plans: Strip cash from the poor and give it to the rich

Westminster’s shame: Theresa May promised a ‘shared prosperity fund’ to replace EU grants – but it seems she wasn’t going to share it with anyone who wasn’t already rich. None of the Tory leadership candidates have said a word about it.

While the candidates in the Tory leadership contest try to bribe their voters with castle-in-the-air promises, they are all plotting to take funding away from areas of genuine need and give it to the richest.

It is shocking, but it is also exactly what we should expect from a government that is little more than a gang of bandits.

A study by a coalition of community leaders and charities called Communities in Charge has shown that Tory plans for post-Brexit Britain would withdraw huge amounts of funding from the poorest areas, including Wales, the southwest and northeast of England.

The money would be used in rich areas – London and the southeast.

This means, according to The Independent: “That would see Wales stripped of £2.3bn over the six years from 2021, with other big losses in the southwest (£1bn), the northeast (£480m), Northern Ireland (£230m) and the West Midlands (£225m).

“In stark contrast, London would gain a staggering £19bn over six years, with the southeast (£1.2bn), Scotland (£795m) and the east of England (£583m) also set to benefit.”

The change has been likened to taking £700 from every single human being in Wales, in order to give £200 to every Londoner.

It makes a mockery of Theresa May’s promise of a “shared prosperity fund” to replace the EU structural funds that will be lost post-Brexit.

The Conservative government claimed in January that it was making great progress on the fund.

Five months later, we may conclude that this fund will only share prosperity among rich Tories.

Source: Tory spending plans will strip billions from poorest areas after Brexit and give cash to richest regions, study finds | The Independent

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Tory corruption: They’re planning a law to allow MPs to break electoral spending limits

MPs, election candidates and party officials will be able to break election spending limits with impunity if the Tories pass a new proposed law.

The intention is to create a new “test of authorisation” – a buffer between candidates and the current law that would stop them being accountable for funds donated by outside bodies such as national parties.

This would, of course, also let Nigel Farage’s Brexit Party off the hook over the funds it may be receiving from foreign organisations intent on perverting the course of UK elections.

But the Tories won’t care about that.

They reckon they can still count on receiving more money in donations from their rich cronies than any other party, and apparently want to use that money – so electoral law must be subverted.

In This Writer’s opinion, it is utterly corrupt. What do you think?

Conservative ministers are drawing up a law to protect MPs and party officials from prosecution if their national parties overspend during elections, leaked documents have shown.

The move follows the conviction in January of Marion Little, a Tory party organiser from head office, and the acquittal of the MP Craig Mackinlay after they were accused of breaking electoral law as the party fought off a challenge from Nigel Farage in Thanet South.

In an email sent three weeks ago to Theresa May and the cabinet secretary, Mark Sedwill, the government outlined plans for a new “test of authorisation” so MPs and election agents were no longer held automatically responsible for resources donated by outside bodies, such as national parties.

Transparency campaigners have said they believe the move is an attempt to avoid future prosecutions and would overturn a ruling by the supreme court.

Alexandra Runswick, the director of Unlock Democracy, said a “test of authorisation” would give candidates and party officials another level of defence from prosecution. “Such a move would not appear to be about reinforcing and strengthening electoral law. This would instead protect party candidates and open up the possibility of outspending rivals.”

Source: Tories draft electoral law to protect MPs if parties overspend | Politics | The Guardian

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The staggering decline of government spending on your child’s education

This is self-explanatory, from the ever-brilliant Peter Stefanovic:

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UK government spending watchdog confirms what we already knew: There really is NO BREXIT DIVIDEND

The Leave campaign infamously claimed Brexit would result in a £350m a week dividend for the UK.

This is not news.

We’ve been saying this ever since the stupid ‘Brexit bus’, with its lie that £350 million per week would become available for the NHS, was first rolled out.

And the Institute for Fiscal Studies made it clear that there is no ‘Brexit dividend’, exactly one month ago – as reported by This Site here.

It isn’t even news that known liar Theresa May has used the Leave campaign’s lying ‘Brexit dividend’ claim to lie to the country again. What else are we to expect from a liar?

The Government’s official and independent spending watchdog has confirmed that there will be no “brexit dividend” for the UK, despite the claims of ministers.

Theresa May said last month that the extra £20bn a year pledged to fund the health service would be partially paid for by UK money no longer being sent to the European Union.

That claim was universally slammed by economists as grossly misleading, since the Government’s own projections suggest Brexit is already weakening the public finances, rather than strengthening them and that any fiscal gains from zero EU payments will be wiped out by feebler tax revenues.

The Government has also already earmarked much of those net £13.3bn a year EU budget payments for other major spending items such as support for farmers and science.

And on Tuesday the Office for Budget Responsibility, established in 2010 to provide authoritative and independent fiscal forecasts for the Government, confirmed that no Brexit boost for the public finances is expected.

“Our provisional analysis suggests Brexit is more likely to weaken than strengthen the public finances overall,” the OBR said in its latest Fiscal Sustainability Report.

Source: ‘Brexit dividend’ for health service a myth, Government’s official spending watchdog confirms | The Independent

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THIS is why the NHS is struggling


Read it and weep:

[Image: Dr Jacky Davis, co-editor of NHS:SOS.]

Any questions?


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Nobody believes Theresa May: NHS funding is a Tory joke at OUR expense

Theresa May is covering herself in denial – if only for the public. In fact, she knows perfectly well that her deliberate policies have sent people to their deaths. She just doesn’t care.

The problem here is that facts can say whatever people want them to.

The BBC’s evening news yesterday (Sunday) referred to real-terms increases in NHS funding since the Conservatives came into office in 2010 of 1.2 per cent, rising to 2.25 per cent in 2016-17.

But the average since the NHS was founded is four per cent, so the Tories have lagged far behind.

You can see the difference in spending choices in the following graph:

The Tories have increased spending, sure – but by a miniscule amount compared with the previous Labour government.

But that’s not the whole story. As a percentage of GDP – the total amount of money made by the UK every year – spending on the NHS has suffered a sustained reduction – its largest ever – since the Tories arrived in 2010.

This is a deliberate attack on the healthcare available to the nation, at a time when demands on the service are increasing – partly due to other Conservative Party policies.

Cash-strapped citizens are eating unhealthily, adding to the possibility of health problems. Benefit claimants are being subjected to huge psychological stress by the Department for Work and Pensions, increasing the chances that they will suffer serious health issues. Working people, forced to try to survive while their pay is cut, in real terms, year on year, are also heading for health disasters. There are other government-related health issues.

And what is the result of these changes, forced on us by the Conservatives?

Theresa May has said the Tories have provided the NHS the amount of money they thought it needed – tacitly admitting that they have been underfunding the service badly:

But then, as one prominent doctor has pointed out:

No. We would have to have seen a plan to solve the issues that have caused the recent deaths, and we have seen nothing of the sort. Instead, Theresa May is planning to reward the Health Secretary who has enacted the policies that caused the deaths.

Oh really?

This takedown by Peter Stefanovic is excellent because it answers flannel with fact:

Some have suggested that Mrs May and Jeremy Hunt are simply refusing to accept the facts – that they believe their line that the NHS is better-prepared for what Mrs May calls “winter pressures” (she’s refusing to admit it’s a crisis). This is not accurate:

And the media are trying to stir up support for private health:

Let’s just remember that we already pay for the NHS. It takes nearly 30 per cent of public spending (although a large amount of that now goes into the bank accounts of private health corporation board members, thanks to Conservative changes introduced by Andrew Lansley and David Cameron for no reason at all).

This is the best possible way of paying for the health of the nation, although the amount of public money being spent on it, and the uses to which that money is put, are varied depending on who is running the government. Clearly the current, Tory, model is one of mismanagement and waste.

Clive Peedell has the right idea:

But then, he’s a doctor, not a businessman. The Tories would never be interested in anything he has to say.


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