Now the Tories want to sell your tax details to private firms

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[Image: The Guardian.]

Not happy with its attempt to sell your health details to private companies, the moneygrubbing Conservative-led Coalition wants to sell off your personal tax data to companies, researchers and public bodies.

The government is considering how much to charge for the information, and claims that all data accessed by third parties will be “confidential”.

But the public has already been stung once by the Coalition’s incompetent attempts to go commercial. The proposed initiative to share NHS medical records with the private sector had to be suspended after a public outcry over “pseudonymised” data – a process by which medical records were said to be anonymous but it was in fact possible to trace exactly whose they were.

The plans for HM Revenue and Customs to share its data are, apparently, being overseen by Treasury minister David Gauke, whose relaxed attitude towards private firms led him to sign off on the infamous “sweetheart deals” that allowed multinational companies to keep billions of pounds of tax that they owed to the Treasury but didn’t want to pay.

Worse still, it turns out the government has already allowed private firms access to our data.

The government has strict rules about what can be released outside HMRC, with a near total ban on data sharing unless it is beneficial for the organisation’s internal work. But according to The Guardian, despite the restrictions, HMRC has quietly launched a pilot programme that has released data about VAT registration for research purposes to three private credit ratings agencies: Experian, Equifax and Dun & Bradstreet.

To comply with the law, the private ratings agencies, which determine credit scores for millions of people and businesses, have been contracted to act on behalf of HMRC and are “therefore treated as part of the department” – giving them access to tax data about businesses that would otherwise be confidential.

The government’s plans to change the law to allow the sale of anonymised individual tax data and release of the VAT register were buried in documents as part of the autumn statement and recent budget.

An HMRC spokesman told the BBC: “HMRC would only share data where this would generate clear public benefits, and where there are robust safeguards in place.

“Last year’s consultation made it very clear that there would be a rigorous accreditation process for anyone wanting access to the data and that any access would take place in a secure environment.

“Those accessing data would be subject to the same confidentiality provisions as HMRC staff, including a criminal sanction for unlawful disclosure of taxpayer information.”

So there. Do you feel better now?

Emma Carr, deputy director of civil rights campaign group, Big Brother Watch, doesn’t. She said: “The ongoing claims about anonymous data overlook the serious risks to privacy of individual level data being vulnerable to re-identification.

“Given the huge uproar about similar plans for medical records, you would have hoped HMRC would have learned that trying to sneak plans like this under the radar is not the way to build trust or develop good policy.”

Ross Anderson, a professor of security engineering at Cambridge University, told The Guardian the information could be highly useful to credit rating agencies, advertisers, and retailers wanting to practise price discrimination.

“This is going to be a big battleground,” he said. “If they were to make HMRC information more available, there’s an awful lot of people who would like to get their hands on it. Anonymisation is something about which they lied to us over medical data … If the same thing is about to be done by HMRC, there should be a much greater public debate about this.”

It seems the Conservatives in the Coalition are determined to sell information that doesn’t belong to them, and intend to grind us down with a relentless bombardment of initiatives and plans until they succeed.

They seem to by relying on the possibility that we will get ‘complaint fatigue’ and give up any protests. This is how they have beaten disabled people into submission to the draconian system for withdrawing state benefits from them; the system for appealing is drawn-out and convoluted, and many people with illnesses are too tired or weak to go through the process.

Also, this is another way of contracting-out government work to private firms, as evidenced by the VAT “research” that has been handed over to credit ratings agencies.

You can be sure of two things: Your data is not safe in their hands, and they won’t stop trying to sell it until they have been pushed out of government.

What are you going to do?

UPDATE: Campaigner Patrick Olszowski has responded to my challenge by launching a petition on the Change.org website. Please visit and sign!

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‘Unpaid taxes’ retrieval power – good or bad?

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budget, Coalition, Conservative, Customs, George Osborne, government, hm, hmrc, Huffington Post, Mike Sivier, mikesivier, Parliament, people, politics, retrieval, retrieve, Revenue, tax, Tories, Tory, unpaid, Vox Political

Don’t you hate it when people avoid telling you things you ought to know?

George Osborne’s budget speech never mentioned the new power granted to HM Revenue and Customs, allowing it “to delve into Britons’ bank accounts for money that officials think is owed in unpaid taxes, in a move which critics have warned leave officials ‘a law unto themselves’,” according to the Huffington Post.

The trouble is, I’m not sure whether this is really a bad thing, or a useful tool in the battle against corporate and mega-rich tax avoiders/evaders.

Here’s what the HuffPost had to say:

“The Chancellor slipped details of the move out in the Budget’s Red Book, which stated that HMRC will be able to take money from people who owe officials over £1,000 in tax.

“Officials will only be able to use the power for Britons who have been asked ‘multiple times’ by debt collection officials to pay, and must leave at least £5,000 in the account.

“‘This brings the UK in line with many other tax authorities which already have the power to recover debts directly from an individual’s account, such as France and the US,’ the Budget reads.

“Once HMRC takes the money, the taxpayer will have 14 days to get in touch and set up a payment plan, otherwise officials will keep what they have taken.

“Osborne’s Budget also gave HMRC the power to take money from those they suspect of unfairly avoiding tax, with money only handed back – with interest – if the taxpayer wins a legal challenge in the courts.”

What do you think?

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‘The Budget that confirms Britain is worse-off under the Tories’

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Mr Os-bean: As Ed Miliband gave his response to the Budget, George Osborne had a gormless smile on his face that made him look like Mr Bean. This is not him – but it’s the closest image I could find at short notice. [Image as credited]

If a Conservative government is returned to office after the 2015 election, there will be yet more spending cuts and service cuts afflicting hard-working, low-paid families.

That was the message for most people in George Osborne’s latest attempt at a Budget speech today.

There were plenty of groan-worthy moments as the part-time chancellor trotted out the Coalition’s catchphrases: “We will fix the roof while the sun is shining” (groan. The job is taking so long, one has to question whether the contractor is Con-ning the client). “We are all in this together” (groan). Oh really?

Benefit spending is to be capped at £119 billion per year, albeit rising with inflation; public sector pay “restraint” will continue for the foreseeable future. This is from the government whose Prime Minister was confirmed, only minutes previously, as having approved 40 per cent pay rises for his special advisors!

Most significant is the fact that Osborne avoided mentioning ordinary working people for most of his speech; this was a budget for businesses, with the benefits reserved for fatcat bosses.

No major advanced economy in the World is growing faster than the UK, said Mr Osborne; more people are in work. This appears to be borne out by current employment figures (although it should be noted that this is due to a vast and questionable boom in self-employment – the number of employees has dropped by 60,000).

Where is the benefit to the British economy? Why has the deficit not been eliminated? Osborne said it stood at £157 billion in the year he came to office, and would be £108 billion this year, but in fact £39 billion was removed due to measures brought in by the previous Labour chancellor, Alistair Darling. He has cut government spending by something like £80 billion so far, but the deficit has dropped by – possibly – £10 billion. Not a good start to his speech.

There will be further investment in high-speed rail, even though there is no way of predicting whether this hugely costly investment in making train journeys 20 minutes faster will create any economic improvement.

There will be money to fund new centres for medical research – but will these be absorbed by private health firms after the public purse has paid for them?

There will be investment in faster extraction of oil from the North Sea – aiming to get as much as possible out before the Scottish referendum, in order to impoverish the Scots if they decide to go for independence?

And there will be investment in low-cost energy (finally killing the highly questionable green agenda) – meaning money for shale gas companies, and to hell with the environmental cost.

All this investment will go into businesses whose main contribution to the Treasury – Corporation Tax – has already dropped by a quarter (from 28 per cent to 21 per cent) and will go down to 20 per cent this year. This is less than the lowest level of Income Tax.

Up go the profits – down go the tax payments. Who benefits?

Council tax in England remains frozen, meaning fewer public services.

The personal tax allowance is to rise, so people may earn £10,500 before paying tax. This is nowhere near enough to offset the massive drop in living standards that has been caused by the Tory-led Coalition. The cost of living has risen for 44 out of the 45 months of this Parliament – for the whole period, if the earnings of high-paid bankers are removed from the calculation.

The threshold for payment of the 40p tax rate is to rise, so fewer people will pay the higher rate.

Savers are to be helped but – again – this is not a boost for the poor. Most working and unemployed families don’t have any spare money to put into the banks. How does it help them to know they would not pay any tax on savings up to £15,000 in an ISA, when they cannot afford to open one?

And there is a new Pensioner Bond for rich senior citizens (poorer pensioners don’t live long enough to benefit).

As Ed Miliband said in his scathing response, the Coalition can afford to give a tax cut of £200,000 per year to bankers who earn £5 million – but can’t afford £250 per year extra for nurses.

Mr Miliband said the Budget speech was more significant in what it hid than in what it actually said.

Working people are suffering under the Bedroom Tax, under cuts to their tax credits, and they are having to visit food banks if they want to eat.

This is a government that gives with one hand, but takes back much more with the other.

And the Conservatives have the bare-faced cheek to call themselves “The Workers’ Party”.

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Budget fever grows but is Gideon up to the task?

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Cart crash: In line with the theme explored in this article, not only is it likely that George Osborne won’t even have the right vehicle to carry his budget – he’ll probably crash it, too.

Part-time Chancellor Gideon George Osborne will be having another go at delivering a budget next week; while we can all hope he does better than the last four wrecks, experience – and a voodoo poll on the ConservativeHome website – suggests the opposite.

The poll asks readers to prioritise possible policies on a scale of one to 10, where one is “low” and 10 is “high”. The policies themselves?

“Cut spending further, so that the deficit can be reduced faster”. Clearly this is nonsense. Osborne’s massive spending cuts have, so far, delivered tiny reduction in the national deficit of only £7 billion – from £118 billion to £111 billion. In four years. Clearly, he needs to change his ways.

Other possibilities include cutting the higher rates of tax (or raising the threshold for them) – helping the very rich; extending National Insurance cuts for employers taking on young workers – helping employers; cutting business rates – helping businesspeople; and privatising more state assets, such as roads – helping rich investors and penalising the poor.

Other ideas intended to harm the poor include regionalising public sector pay, extending the freeze on public sector pay rises or cutting public sector pay, lowering the benefit cap to less than the current £26,000 per family and lowering a cap on broader social security spending that is yet to be introduced (it is scheduled for 2015).

All of the measures mentioned in the above two paragraphs will harm the British economy, rather than helping it. If Osborne includes any of them, he will deserve censure (if not prosecution, although it might be hard to find an offence on which to charge him after five years of Tory/Tory Democrat tinkering with the legal system).

By now, dear readers, some of you will be sitting with your blood boiling at this insolent blogger who’s telling you your prized policy ideas won’t work. You’re probably itching to demand what I would do to address the challenge.

I would have examined the economy from a different angle. Let’s look at it metaphorically.

Imagine the British economy is a haulage lorry or, better yet, a horse and cart. Tories are pushing us back towards pre-industrialism so we might as well get used to the idea. Either way, the job in hand is to take provisions to different parts of the locality that will allow the people there to prosper – and return with a share of that prosperity, to be distributed equally for the benefit of everyone.

Firstly, you need fuel. This is where we can prove that Osborne’s austerity is completely useless. How far can a lorry travel with an empty fuel tank? How far will a horse pull a cart if you don’t feed it? Not very far at all.

Then you need to make sure you’re providing the right kind of fuel. A diesel lorry won’t go far on petrol or vegetable oil before it starts to complain; give a horse the wrong kind of food and it will develop who-knows-what kind of digestion-related illness and keel over. This is what happens to an economy that is over-reliant on – for example – a single economy sector such as finance, or an economic ‘bubble’ like the housing growth triggered by Help to Buy (although this scheme could work well with the correct controls, in the same way you can probably keep a horse working with the correct medicine).

The result in both cases – no fuel or wrong fuel – is the same: Your supplies don’t get out to your people and they suffer as a result. The last four years of Tory/Tory Democrat rule has proved this.

In non-metaphorical terms: There must be investment, and it must be the right kind.

Then, of course, there is the question of what you have in the back of your lorry (or on the cart). You must be providing your people with what they need, otherwise there’s no point in making the journey and the fuel/food in which you have invested – in fact, the whole journey – will have been wasted (like Osborne’s last four budget attempts). Your choice of supplies will depend on what your people are doing – what crops they are growing or products they are making – and on whether these can be traded with your neighbours. If they have been misled into producing wares that can’t be traded, what good is that?

Get it right and you’ll be able to make a return trip laden with goods and supplies that will – with a bit of wise distribution and trade – help build up your society, meaning that the load might not be so great on the next trip. This means less fuel/horse feed will be needed and there won’t be as large a load in goods to be redistributed on the return journey (although an expanding economy means there might be farther to travel, so this must be recognised in the amount of fuel to be used).

That’s about as simple a metaphor as I can devise at the moment.

If I had to predict what will happen on Wednesday, though, I would probably expect Osborne to be demanding that we leave the lorry in the garage (or the horse in the yard), and struggle out on foot with all our burdens on our own back.

Not so much “all in it together” as “everyone for themselves” – and that’s how we’ll all be ruined.

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Patsy Burstow and the next great NHS betrayal

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Patsy n A person regarded as open to victimisation or manipulation; a person upon whom the blame for something falls.

Burstow n A patsy.

It seems a familiar story: The Tories plan legislation that is clearly no good at all – in this case, a legal clause to allow the closure of successful hospitals to prop up failing NHS trusts (Clause 119 of the Care Bill). The Liberal Democrats object and threaten to rebel. The Tories then offer concessions to make it seem less likely that this will happen and the Lib Dems withdraw their objections.

All seems well until the new rules are put to the test. Coalition MPs voiced disquiet at the powers being granted to allow a trust special administrator (TSA) to force through changes at a neighbouring hospital if they consider it necessary to save one that is failing. This power is considered likely to be used to save hospitals run under the Private Finance Initiative (PFI), which are therefore saddled with huge unnecessary interest bills on the money invested by private companies.

We are told there will be some form of public consultation. Great. Here in Mid Wales, Powys County Council consulted constituents on its plans to cut £20 million from its budget for 2014-15. After the answers came back, the council’s cabinet ignored every single word of the responses and pressed on with its plan. Changes were only brought in after the rest of the council made it clear that they weren’t putting up with those shenanigans.

So much for consultation.

The minute a hospital is closed to prop up the PFI place next door, the Tories will blame Patsy – sorry, Paul – Burstow. They’ll say he had a chance to do something about it but didn’t.

What makes it worse for him is that Labour weren’t going to put up with his shenanigans and forced a vote on his amendment – which would have completely neutered the offending clause. Burstow voted against it – that’s right, against his own amendment, helping the government to a narrow 47-vote victory.

So much for him.

One politician who does seem to have the good of our hospitals at heart is Shadow Health Secretary Andy Burnham. What did he have to say about all this, during the debate yesterday (March 11)?

“What we have seen … from the right hon. Member for Sutton and Cheam (Paul Burstow), who positioned himself as though he was going to make a stand for local involvement in the NHS, is the worst kind of collusion and sell-out of our national health service.

“Just as the Liberal Democrats voted for the Health and Social Care Act, again they have backed … the break-up of the NHS.”

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Church v (Secretary-in-a-) State over social ‘reform’

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Cardinal-designate Vincent Nichols, who has attacked fellow Catholic Iain Duncan Smith’s benefit cuts as a “disgrace”. [Image: Liverpool Echo]

Does anybody else have the feeling that Vincent Nichols, the Roman Catholic Archbishop of Westminster, was only waiting for the Pope to name him a Cardinal-designate before sinking his teeth into the UK’s Conservative-led Coalition government?

One gets the impression he feels secure that the new position means his words now carry sufficient weight – and they are weighty words indeed.

“People do understand that we do need to tighten our belts and be much more responsible and careful in public expenditure,” said the Archbishop to the Telegraph.

“But I think what is happening is two things: one is that the basic safety net that was there to guarantee that people would not be left in hunger or in destitution has actually been torn apart.

“It no longer exists and that is a real, real dramatic crisis.

“And the second is that, in this context, the administration of social assistance, I am told, has become more and more punitive.

“So if applicants don’t get it right then they have to wait for 10 days, for two weeks with nothing – with nothing.

“For a country of our affluence, that quite frankly is a disgrace.”

“Hunger”, “destitution”, “crisis” – “a disgrace”. You cannot accuse this man of mincing his words!

They come almost a year after the (Anglican) Archbishop of Canterbury, the Most Reverend Justin Welby, together with the Archbishop of York and 43 bishops, launched their own attack on changes to social security, saying they would have a “deeply disproportionate” effect on children and families.

Mr Welby had himself only recently taken the Church of England’s most senior office.

Speaking to the Telegraph on March 9 last year, 12 days before his enthronement, he said: “As a civilised society, we have a duty to support those among us who are vulnerable and in need. When times are hard, that duty should be felt more than ever, not disappear or diminish.

“It is essential that we have a welfare system that responds to need and recognises the rising costs of food, fuel and housing.

“These changes will mean it is children and families who will pay the price … rather than the Government.”

The Department for Work and Pensions laughed off Mr Welby’s concerns.

But Iain Duncan Smith, the Secretary of (or “in a”) State for Work and Pensions, is – or is at least supposed to be – a devout Catholic. How could he ignore such harsh criticism from the most senior member of his Church in the United Kingdom?

Very easily, it seems.

Iain Duncan Smith has not deigned to respond. Perhaps he has a belief – he does seem to rely on them a lot, now, doesn’t he? – that he is doing more for the people of this country than the Archbishops. There’s a word for this condition that’s slipping my mind for a moment… no – I’ve got it.

A ‘Messiah’ complex – a state of mind in which an individual holds a belief that they are, or are destined to become, a saviour.

‘Messiah’ trumps ‘Archbishop’ so IDS has chosen to ascend above the debate, leaving its resolution to his trusty DWP spokesperson, who came out with the usual lies.

“Our welfare reforms will transform the lives of some of the poorest families in our communities with Universal Credit making three million households better off and lifting hundreds of thousands of children out of poverty,” wittered the spokesperson.

To disprove these words, let’s turn to the Joseph Rowntree Foundation, the social policy research charity that seeks to understand the causes of social problems, identify ways of overcoming them, and show how social needs can be met. This organisation has stated – repeatedly – that Universal Credit in its current form will create “increased risks of budgeting problems, debt, arrears and ultimately financial exclusion”.

The same organisation quotes research from the Institute of Fiscal Studies (IFS) which states that, under current Coalition government policies, rather than hundreds of thousands of children being lifted out of poverty, by 2020 more than one million more children will be in poverty than when the Conservatives and Liberal Democrats slithered into office by the back door in 2010.

So who do you believe? Come to that, what does Iain Duncan Smith really believe?

The DWP spokesperson said: “It’s wrong to talk of removing a safety net when we’re spending 94bn a year on working age benefits and the welfare system supports millions of people who are on low incomes or unemployed so they can meet their basic needs.”

But we know that Iain Duncan Smith has inflicted £28 billion of cuts on people receiving benefits from his Department for Work and Pensions. If another IFS statement – that this represents only two-fifths of the Coalition’s cuts plan – is accurate, then the total amount he’ll want to cut is a staggering £70 billion.

And he wants his people to talk about the money he’s spending, rather than the effect he’s having. So, what does he believe?

He believes in Mammon.

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Coalition drags out the pain with promise of many more cuts

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The BBC has reported findings by the Institute for Fiscal Studies, showing that the Coalition government will be less than halfway through its planned spending cuts by the end of the current financial year (March 31).

The organisation said 60 per cent of the cuts were still to come.

This raises a few urgent questions. Firstly: This government was formed on the promise that it would balance the books by 2015, which presupposes that its entire plan for doing so would be in place long before then. We know that this ambitious claim was dismissed after years of failure, but part of the reason for this failure was that George Osborne stopped a recovery that was already taking place, and which would have led to economic growth of 20 per cent by now, if it had been allowed to continue (according to Michael Meacher MP). My question, therefore, is: Have the Conservatives been working to ensure that they would have an excuse to make more cuts, rather than to restore the economy and balance the deficit?

Secondly: We may presume that these further cuts will be inflicted over a period of years (as even the Tories know it is important to enact change gradually, rather than inflict sudden shocks on the economy that could create entirely unforeseen consequences). Are the Coalition parties assuming that they will be re-elected next year, and is it not supremely arrogant of them to believe this, considering the harm they have caused so far?

Thirdly: If the Coalition parties do want to be re-elected, it is clear that they will need to try to bring a majority of voters back on-side. Therefore we may reasonably expect to see all sorts of gifts coming our way over the next year – tax breaks or whatever else they can devise – aimed at increasing the amount of money in our pockets. However, knowing that 60 per cent of the Tory/Lib Dem cuts process is still to come, this means they will want to make even more cuts if they are returned to office. Why would we want to give them our vote, in return for presents they’ll grab back as soon as they’ve got what they want?

Fourthly: Iain Duncan Smith has inflicted £28 billion of cuts on people receiving benefits from his Department for Work and Pensions. If the IFS statement is accurate, then the total amount he’ll want to cut is a staggering £70 billion. If we consider that the amount spent on pensions (more than £100 billion) is safe, this leaves only tiny amounts for all the other benefits supplied by the DWP. Are people currently on Jobseekers’ Allowance to get nothing in the future? What about disabled people getting DLA or PIP? How about all the many, many people on Employment and Support Allowance, including those currently going through the appeal process because of wrong decisions? Mr… Smith might claim that all these benefits are being rolled into Universal Credit, but that won’t happen until 2016 or 2017 according to his own estimates, and the rest of us know that it’s not going to happen at all. Will we have any benefit system left if these cuts continue – or will the Tories try to trick us into buying duff health and employment insurance policies from their friends at Unum instead?

The BBC report said George Osborne wants a budget surplus by 2018-19, but “additional spending, population growth and extra demands on the NHS meant more cuts were needed”. This statement is not supported by any source material and we may take it this is a further sign of BBC right-wing bias.

The additional spending was made necessary because of unintended consequences of the cuts – the Tories got their sums wrong. Population growth, if due to the EU immigration that everyone complains about, will have led to a net growth in the economy as it has been proved that migrant workers from the European Union contribute more to the Treasury than they ever take out – so this is not a cause of increased spending. If the indigenous British population has been growing faster than expected, let us remember that Child Benefit is to be restricted to the first two children in a family (Cameron has denied it so it must be true) and therefore any further growth in individual families will have no bearing on the government’s bank balance. Extra demands on the NHS are a thorny subject as the Coalition promised to inject billions of pounds into the health service but no evidence has yet appeared to show that it has. Since this money was promised many years ago, it should have been included in national budgets and should not be a burden now.

The IFS also reports that there is no evidence of a housing bubble in the UK, as a result of Osborne’s ‘Help To Buy’ scheme. This was introduced last year, when Osborne realised that his austerity programme had failed and resorted to a Keynesian ‘pump-priming’ scheme to boost the housing market. Fears that this would lead to a debt-fuelled ‘bubble’ made commenters like myself cautious about the plan.

However, if there are no signs of a debt-fuelled bubble, then we should consider this to be proof that Keynesian economics was always the way forward and austerity has led us up an economic dead-end for the past four years.

This means none of Osborne’s ridiculous cuts were necessary (barring a few to eliminate waste and corruption – but under a Conservative-led regime we have no evidence that these took place and every reason to believe the opposite to be true. Look at the current ‘cronyism’ row over the appointment of Conservative ‘yes’-people to senior quango posts).

It also means the government and the right-wing media have been lying to you for four long years – and will continue doing so in self-justifying stridence for another 14 months to come.

Let them talk.

But don’t ever let them convince you their cuts are necessary.

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Osborne wants a ‘year of hard truths’. Here’s one: He’s HIDING the truth

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Swivel-eyed loon: This is the kind of man who listens to George Osborne’s comments about the economy. [Picture: Left Foot Forward]

It must be panto season because the Conservative Party’s very own Ugly Sisters have just wheeled themselves out to deliver another helping of hilarious family fun:

Even more cuts are needed, worth billions of pounds, and there are still huge underlying problems with the economy, said Sister George, even though he knows that cuts are not the answer.

The small upturn he managed to engineer last year came from a natural upswing in the economy and the artificial housing boom that he created by Keynesian means and was nothing to do with austerity cuts. As for the economy, he’s had three and a half years to fix it! It seems clear that if there is an underlying problem, its surname is Osborne.

We may also extract some bitter humour from his words. Only days ago, his cabinet colleague Michael Gove attacked TV comedy Blackadder Goes Forth for claiming that our leaders in World War One never learnt from their mistakes but merely repeated them, over and over again, at huge cost in the lives of the working-class people who had to suffer the consequences of their decisions.

Now here’s George, telling us that he’s following up his failed austerity cuts with… more austerity cuts.

So we will see another £25 billion cut out of the British economy after the next election if the Conservatives win, including £12 billion from social security, he told us, providing everybody with an income lower than £50,000 per year with a perfect reason not to vote Conservative in 2015.

Come to think of it, why do working-class people ever vote for clowns like him?

He’ll cut departmental budgets by £13 billion, starving already wafer-thin public services and paving the way for their takeover by the private sector – on the long-disproved premise that profit-making businesses can do a better job for less money.

He’ll cut housing benefit for young people (under-25) who are just trying to get started in work – but he won’t force under-paying firms to boost their wages in order to offer a decent standard of living!

He also said – no, wait, that’s all he had to offer.

George justified his plan by trotting out the now-classic justification line of this Parliament – that the deficit was down by a third since 2010. He has been saying this for the last two years, and in all that time, the deficit hasn’t dropped at all! Last year the difference was a fraction of one per cent.

This is because the drop was achieved by cutting capital projects and there aren’t any more to cut. Taking billions out of the economy with benefit cuts and investment cuts actually harms the economy – there is less money moving through the system and therefore less opportunity for the fiscal multiplier effect to take place, for profit to be made and for taxes to be taken.

George has always had a bit of a blind spot there.

Sister George said he supported universal benefits for the elderly as they will only save around £10 million – but Sister David has suggested cutting free TV licences, bus passes and winter fuel allowances. Pensions are also taking a battering – never mind what they’re saying about the triple-lock.

David also said he wanted to cut taxes for the poor before the wealthy – but planned to do so by raising the threshold at which they begin to pay tax. This means they will not pay National Insurance either, and will have to find a higher-paying job before they can expect to contribute to their own pension fund. This means some people may never qualify for the state pension.

So they’re starting 2014 by promising austerity cuts that will harm the economy, cuts in benefits for the elderly that will save a comparatively negligible amount but will cause misery, and cuts in government budgets that will open the way to further privatisation and corporatisation of the state.

Those are the real hard truths – but you won’t hear these two characters admitting them.

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Our entertainers give us facts while our politicians have nothing to say

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Speaking their mind: Rufus Hound and Kate Nash had the courage to voice their opinions about the NHS and education – but they don’t have enough influence to change government policy. What will it take to make that happen?

This could have been designed to follow my rant about politics being about perception: In response to a news report that NHS doctors’ surgeries have been found to be filthy, radio listeners were treated to a lengthy monologue on why the media are running down the health service to make it easier for the government to sell it out from under us.

This lesson was delivered, not by an eminent politician, but by the comedian Rufus Hound. He was speaking on Radio 4’s The News Quiz.

And he said: “Does this not scare anyone, though?

“There are a lot of stories coming out at the moment about all the ways that the NHS is failing. At the same time there is privatisation by stealth. Now, if you’re a conspiracy theorist, maybe those two things just resolve themselves. If you’re a normal person, you’ve got to become a conspiracy theorist, haven’t you?

“The number of contracts being put out to private companies has gone up through the roof. All of the pre-election promises of no privatisation of the NHS, and that the budget would be ring-fenced – it was ring-fenced but not in real terms, so it is a cut in the truest sense…

“The NHS is being sold out from under us, and yet all the stories that come out from the powerful oligarchs who run the media are either about how it’s failing and how much better off we’d be if it was privatised, or why privatisation can’t happen quickly enough for any one of a number of other reasons.

“The reason those surgeries are filthy is, there’s not enough investment to keep them clean and tidy. The argument isn’t ‘privatise’; the argument is ‘invest more’.

“In the Olympics, there was that big moment where they had ‘NHS’ and everybody stood up and applauded, and I think it was Norman Lamont who said, ‘The nearest thing the British people have to a religion is the NHS’ – and we’re just letting it go.

“People should be on the streets.

“And I realise that, for this to make the edit, it should have a punchline.”

He knew, you see. He knew that this great speech was in danger of being lost if it wasn’t sufficiently entertaining.

Thank goodness producer Sam Michell kept it in, but it should not be up to an entertainer like Rufus to tell us these things. Such matters are the province of politicians. The simple fact that our representatives aren’t “on the streets” with us about this says everything we need to know about them.

Here’s another example: Education. I was in the unfortunate position of having to sit through Andrew Neil’s This Week on Thursday evening. I’m not a fan of that show, but it meant I was lucky enough to see former pop starlet Kate Nash, there to talk about her film (The Powder Room) and modern manners, slip in a quick observation about education that undermines everything ever said by Michael ‘rote-learning-is-the-only-way’ Gove.

She said, “There are certain things we need to be addressing, that are being completely missed – and that’s to do with education being inspiring and interesting for young people, rather than just about purely passing tests and pressure.”

She hit the nail on the head without even looking; Gove couldn’t find it with a map and a guide.

Again, she is an entertainer; she should not be having to say these things, but we should be glad that she did. The moment was glossed over entirely in the BBC News website report of the debate. Perhaps we should be happy that they didn’t edit the comment out altogether (it starts around two minutes, 15 seconds into the video clip).

We are left with politicians who refuse to do their duty and defend our services from those who would destroy them, and celebrities who are left to pick up the slack – if, with a biased media, they can find a way to keep their words from ending up on the cutting-room floor.

What hope can we possibly have that anyone with any clout will defend our beloved, but beleaguered, taxpayer-funded services?

Worst of all is the fact that it falls to people like myself to even write about these matters, and we all have lives of our own. Rufus and Kate made their speeches on Thursday; it is now Sunday, and I could not have written this article any sooner.

We’ve all heard that a lie can travel around the world several times before the truth has got its boots on. This is because the liars own the media, and those of us who are interested in the truth have small voices, are easily ignored, or can be dismissed because “it’s only entertainment”.

At least high-profile figures have a better chance of being heard. There will be those telling Rufus and Kate and who knows who else to get back in their box and shut up, but I won’t be one of them. I think we should be “on the streets” with them.

I’m wondering if any more members of ‘The Great And The Good’ will have the bottle to speak their mind.

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The State of Osborne: a visitor’s guide

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A moment of crisis for David Cameron as he realises it is unlikely that George Osborne has the faintest idea what the Autumn Statement means.

If anybody else had prattled on for 50 minutes while hardly uttering a single sensible word, they would have been consigned to a mental hospital forthwith.

But this is Coalition Britain, and the speaker was George Osborne, the man who likes to tell us all that he is in charge of the nation’s finances. Thanks to his government’s Department for Work and Pensions, nobody is allowed to have mental illnesses anymore; after this speech, it seems likely we all have an idea about the reason for that.

A 50-minute speech is a lot of verbiage, and it is certain that worthier journalists across Britain – if not the world – have already analysed it to exhaustion. Allow me to let you into a secret:

They’re probably trying too hard.

Most of the speech was about putting Labour down. The Opposition has made all the headway over the past few weeks, and we all knew Osborne was under orders to change the mood music of the nation in time for Christmas.

Did he manage it? Not really. His speeches always come across as strained events, where he’s making an effort to be clever without ever achieving it. As a result, the message gets lost. We can therefore discount the Labour-bashing.

That leaves us with what he actually said. Even here, his meaning was at times opaque. What follows is an attempt to provide a handy guide to George-speak, for anyone unfortunate enough to have heard him yesterday.

Osborne: “We have held our nerve while those who predicted there would be no growth until we turned the spending taps back on have been proved comprehensively wrong.”/Meaning: “I am lying. Austerity failed miserably and the economy flatlined. A few months ago I realised that we would have nothing to show at election time so I turned the spending taps back on, with Help To Buy and Funding For Lending. I know that these are exactly the sort of Keynesian economic levers that I preached against for three years but I’m hoping that nobody noticed.”

The hard work of the British people is paying off, and we will not squander their efforts./Osborne appears to be celebrating his three years of stagnation. He inherited growth and decided to trash it. (MagsNews on Twitter)

There was no double-dip recession./“Phew! Lucky escape there!”

At the time of the Budget in March, the Office of Budget Responsibility forecast that growth this year would be 0.6 per cent. Today, it more than doubles that forecast and the estimate for growth will be 1.4 per cent./“Please God don’t let anybody remember that three years ago, the forecast for this year was 2.9 per cent.”

Today in Britain, employment is at an all-time high… We have the lowest proportion of workless households for 17 years./These jobs have increased the numbers of the working poor. Too few are full-time; too many are part-time, zero-hours or self-employed, serving up no National Insurance contributions from employers, no holiday or sick pay, or making contractors work long hours for less than the minimum wage.

The number of people claiming unemployment benefit has fallen by more than 200,000 in the past six months—the largest such fall for 16 years./“And we have imposed sanctions on more people on Jobseekers’ Allowance than ever before, in order to produce that figure.”

By 2018-19, on this measure, the OBR does not expect a deficit at all. Instead, it expects Britain to run a small surplus. These numbers mean that the Government will meet their fiscal mandate to bring the structural current budget into balance and meet it one year early./Although of course the books were initially supposed to be balanced by 2015. (Huffington Post live blog)

This year, we will borrow £111 billion, which is £9 billion less than was feared in March./…and £41 billion more than forecast in 2010.

We will cap overall welfare spending./But this will not include the state pension (half the social security budget) or the most cyclical jobseeker benefits./”A living wage would mean less dosh on in-work benefits; letting councils build would mean less subsidies for private landlords.” (Owen Jones on Twitter)

Pensioners will be more than £800 better off every year./But as usual he’s ignoring the VAT elephant in the room. (Mark Ferguson on Twitter)

We think that a fair principle is that, as now, people should expect to spend up to a third of their adult lives in retirement. Based on the latest life expectancy figures, applying that principle would mean an increase in the state pension age to 68 in the mid-2030s and to 69 in the late 2040s./But life expectancy depends on where you live and how much money you have, meaning the poor continue to pay more towards the pensions of the rich./”Current pensioners better off – future pensioners paying for it. What was that about “making our kids pay for current spending” George?” (Mark Ferguson of LabourList on Twitter)

Most wealthy people pay their taxes and make a huge contribution to funding our public services; the latest figures show that 30 per cent of all income tax is paid by just one per cent of taxpayers./Estimates of the amount of tax that is not collected range between £25-£120 billion per year and it is not the poor who aren’t paying up.

This year the rich pay a greater share of the nation’s income taxes than was the case in any year under the last Labour Government./Because they now have more income. Simple really. (Tom Clark of The Guardian, on Twitter)

Today we set out in detail the largest package of measures to tackle tax avoidance, tax evasion, fraud and error so far this Parliament. Together it will raise over £9 billion over the next five years./Including capital gains tax for foreign investors on sales of UK property, which has nothing to do with tax avoidance/evasion, fraud or error.

We must confront this simple truth: if we want more people to own a home, we have to build more homes… The latest survey data showed residential construction growing at its fastest rate for a decade./The rate of house building is at its lowest peacetime level since the 1920s

This autumn statement has found the financial resources to fund the expansion of free school meals to all school children in reception, year 1 and year 2, announced by the Deputy Prime Minister and supported by me./On Wednesday, the Lib Dems and Michael Gove’s education department argued over who had to pay for it.

Extra funding will be provided to science, technology, and engineering courses [in universities]. The new loans will be financed by selling the old student loan book, allowing thousands more to achieve their potential./And pushing thousands into the hands of debt collectors.

The best way to help business is by lowering the burden of tax. KPMG’s report last week confirmed for the second year running that Britain has the most competitive business tax system in the world./KPMG would know – it writes the tax system and also runs some of the larger tax avoidance schemes.

From April 2015 we will introduce a new transferable tax allowance for married couples… Four million families will benefit, many of them among the poorest working families in our country./Osborne says the Tories are backing British Families – but only ones who are married it seems. (Mark Ferguson on Twitter)/While the new tax arrangements bribe families to marry, the benefit cap will bribe big families to split up. (Tom Clark on Twitter)

We are all in this together./The biggest lie of this Parliament.

We are also helping families with their energy bills./Commence the cutting of the “green crap”. This from the “Greenest government ever”. (Mark Ferguson on Twitter)

Next year’s fuel duty rise will be cancelled./This is a cut in a tax that was never imposed in the first place.

We are going to abolish the jobs tax on young people under the age of 21. Employer national insurance contributions will be removed altogether on a million and a half jobs for young people./Young people will therefore have less chance to get contribution-based benefit. National Insurance assures people their pension contributions – except when it isn’t paid. So they will have no contributions to show for any years they worked before 21 and will have to work until their late 60s.

The cost for a business of employing a young person on a salary of £12,000 will fall by over £500./This is a bonus for businesses, not employees.

“Jobs tax” – it’s ludicrous, isn’t it? National Insurance has been a respected part of British life for more than 100 years but Osborne, living as he does in a mythical Victorian-era golden age that never actually existed, thinks it is a “jobs tax”. Either that or he’s still bruised by the fact that Labour’s labelling of the under-occupation charge as a Bedroom Tax caught on with the public.

Shadow Chancellor Ed Balls got on his feet and immediately attacked Osborne’s “breathtaking complacency” for denying the drop in living standards faced by everyone in the country, with families already £1,600 per year worse off. Osborne laughed. He thought that was funny.

The Shadow Chancellor pointed out that we are enduring the slowest recovery in a century, and that average real wages will have dropped by 5.8 per cent by the end of the Parliament (except for fatcat business bosses).

He was having a hard time getting his points across, however, because Tory MPs were heckling him very loudly. Owen Jones tweeted, appositely, “Do the Tories think that a bunch of braying MPs dripping with privilege, while ordinary people’s living standards crash, is good TV?”

Maybe they did. Maybe they thought they had the public on their side.

Let’s have a look at a few comments from the public – courtesy of the Huffington Post:

“Planning to kill more people, George?” (Robin Stacey)

“Spend more you wet lipped monkey.” (Will Moriarty)

“No one has an ounce of faith in anything you say, you parasitic pool of curdled warthog’s puke.” (Anthony Nicholas)

And finally: “Hope you end the speech with your resignation x” (Joanne Wood – and yes, she did mean to end with a kiss).

What a shame Osborne did not follow her advice.

 

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