Conservatives in chaos over food bank stance

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benefit, benefits, Channel 4 News, charity, Chris Mould, Conservative, David Cameron, David Gauke, debt, Department, DWP, food, food bank, government, Health Service, hunger, Mike Sivier, mikesivier, NHS, package, packet, parcel, Pensions, people, police, politics, poverty, public sector, referral, signpost, social security, Social Services, starvation, supplies, supply, The Observer, Tories, Tory, Trussell Trust, voucher, Vox Political, welfare, work

Credit where it’s due: The vast majority of reasons for people being referred to food banks are attributable to the Department for Work and Pensions. Could that be why the DWP is so desperate to silence the food bank charities?

Tories – what are they like?

The answer is, of course, even they don’t know – as evidenced by their current confusion over food banks.

David Cameron has enthusiastically backed their work at a Christian faith group’s Easter reception (and so he should, having sent so much of it their way), and Treasury minister David Gauke also praised them in an interview on Channel 4 News last week.

But the DWP says leading food bank provider the Trussell Trust is guilty of “misleading and emotionally manipulative publicity seeking”, with the rise in food bank use being the result of the charity’s leaders “aggressively marketing their services” and “effectively running a business”.

At least one commenter on this blog has been completely taken in by the DWP’s prattling, claiming that demand for food banks has not risen at all since Cameron came to office. No, it’s clear to this demented individual that opening a food bank anywhere is like opening a supermarket – if there isn’t one nearby already, people will flock through your doors.

This, of course, completely misconstrues the way food banks are used and assumes that anyone can walk through their doors, claim food poverty and take away a packet of supplies whenever they want. It doesn’t work like that.

Food banks operate on a referral system. As Trussell Trust chairman Chris Mould put it in an Observer report: “You can’t get free food from the Trussell Trust by walking through the door and asking for it; you must have a voucher. More than 24,000 professionals – half of whom work in the public sector and health service, the police, and in social services – ask us to give this food to clients of theirs because they’ve made the decision that this individual or family is in dire straits and needs help. We’re not drumming up demand.”

This is absolutely correct and no amount of negative campaigning by the DWP can change it. In fact, Mr Gauke spent some time crowing about the fact the DWP rules have been altered to allow “signposting” to food banks by Job Centre advisors, in his Channel 4 News interview (although claiming credit for government employees sending people to someone else, rather than providing help themselves, is in itself a mean-spirited shot in the foot).

Once again, the Conservatives are getting stuck in the mire while trying to claim the moral high ground.

Not only have they created a poverty-driven starvation threat that organisations like the Trussell Trust have been forced to step in and fight, but the Tories have also tried to vilify those good people for laying the blame where it belongs.

It is a situation so twisted, there can be no wonder the Tories are tying themselves in knots.

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

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advertiser, agencies, agency, autumn statement, BBC, benefit, Big Brother Watch, budget, Coalition, companies, company, complaint fatigue, confidential, Conservative, contract, credit rating, Customs, data, David Gauke, disabled, discrimination, Dun & Bradstreet, Emma Carr, Equifax, Experian, firm, government, hm, hmrc, identification, identify, medical record, Mike Sivier, mikesivier, multinational, NHS, out, outcry, politics, price, privacy, private, private sector, pseudonymise, public, retailer, Revenue, risk, sweetheard deal, tax, The Guardian, Tories, Tory, Treasury, Vox Political, work

[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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Britain’s starvation crisis won’t bother our new millionaires at all

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bedroom tax, benefit, cost of living, cut, David Cameron, David Gauke, delay, disease, economy, Eddie Izzard, election, employment, exploit, food bank, industry, life expectancy, malnourishment, Mike Sivier, mikesivier, millionaire, National Health Service, neoliberal, NHS, pay, pay freeze, pension, people, politics, poverty, privatisation, privatise, recovery, rickets, salary, sanction, Scarlet Fever, social security, starvation, starve, sweetheart deal, tax, third world, Trussell Trust, tuberculosis, vote, Vox Political, wage, welfare, zero hours

Britain’s shame: The front page of yesterday’s Daily Mirror.

So the United Kingdom now houses more millionaires than ever before – but at the huge cost of forcing hundreds of thousands of people to seek help from food banks or starve.

This is David Cameron’s gamble: That enough people will profit from the misery of the huge underclass he has created to vote him back into office in 2015, to continue his attack on anybody who takes home less than £100,000 pay per year.

Are you really that selfish?

Do you think this is any way for a civilised, First-World society to order itself?

No – it’s more like the description of the Third World that became prevalent towards the end of the 1960s: A country with low economic development, low life expectancy, high rates of poverty, and rampant disease. They are also countries where a wealthy ruling class is free to exploit the population at large who, without money or force of arms, are powerless to stop them.

Let’s see now… The UK definitely has low economic development. Neoliberal governments since 1979 have decimated our industrial base and the so-called recovery we are currently enjoying has yet to show any worthwhile results, despite the dubious rises in employment and wages that are making headlines this week.

Low life expectancy? Yes, we have that. People in lower-class residential areas are expected to live only a few years into their retirement, if they make it that far, while those in rich areas may continue into their late eighties. Sharp readers will recognise that, although we all pay the same amount into the state pension, the rich get more from it as they live long enough to receive larger amounts.

High rates of poverty? According to the Trussell Trust, the number of food parcels it handed out per year tripled from 346,992 in 2012 to 913,138 last year, with 330,205 going to children. Another 182,000 were provided by 45 independent food banks. The government says poverty is falling but bases its figures on a proportion of the median wage, which has been dropping for the last six years. This means government claims that worker wages are rising must also be lies.

Rampant disease? Perhaps we should not go as far as to suggest this is happening – but the British Isles have witnessed the return of diseases long-thought banished from these shores, like Rickets and Scarlet Fever, along with an increase in Tuberculosis. These are all poverty-related, as they are caused by malnourishment. You can thank your Tory government for forcing so many people out of work and diverting so much NHS funding into privatisation.

As for a wealthy working class exploiting the population – the evidence is all around us.

Look at the reasons people are being driven to food banks, according to the Daily Mirror article from which I quoted the food bank figures: “Benefits cuts and delays, the rising cost of living and pay freezes are forcing more and more people into food banks, experts have long warned.” All of these are the result of Tory government policy.

The government is, of course, unrepentant. I had the misfortune to see Treasury minister David Gauke – who found infamy when he signed off on huge “sweetheart deals” letting multinational firms off paying billions of pounds of income tax they owed us – saying he was not ashamed of the huge food bank uptake. He said they were doing a valuable job and he was glad that the government was signposting people to them. Nobody seemed to want to ask him: In the country with the world’s sixth-largest economy, why are food banks needed at all?

Of course, I’m not likely to persuade anyone to change their political allegiance over this. You all know where I stand and, besides, this blog is simply not big enough to make a difference.

So I’ll leave you with the words of someone who is far more popular: Eddie Izzard, writing in (again) the Mirror:

“A million food parcels. How did our Britain get to be so hungry? Our country, where even after the Second World War, we still had the ambition to feed our poorest people and build a better country.

“This government said it wanted to reform the British welfare system. Instead, it has broken it. The proof is here in the desperate families who have had to turn to their GP, not for medicine, but for vouchers to be able to eat.

“Instead of supporting the most vulnerable people in Britain during the recession this government has hit them with a wave of cruel cuts and punishments – sanctions, Bedroom Tax, welfare cuts.

“The zero hours economy it champions is not enough to put food on tables. It’s done nothing to tackle food and fuel costs.

“No wonder that today, 600 faith leaders, dozens of charities and 40 bishops are telling David Cameron he is failing the country’s poorest people.”

Perhaps you are not affected, like all those new millionaires on whom the Tories are relying. Do you think that makes it all right for this to be happening here?

You can use your vote to share your opinion.

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Sort out the tax dodgers, Labour, then the benefit bill won’t be a problem

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accountancy, accountant, Arcadia, avoid, Bank of England, benefit, Big Four, Capital Gains Tax, chief secretary, Conservative, Corporation Tax, David Gauke, Denis Healey, dividend, economist, evasion, exempt, fraud, Gordon Brown, HM Revenue and Customs, hmrc, Interest, jobs guarantee, Labour, Mike Sivier, mikesivier, Monaco, multinational, offshore, overseas, part-time, Pensions, Philip Green, Rachel Reeves, sanction, shadow, subsidiary, tax, tax gap, tax haven, Tina Green, Tories, Tory, tough, Treasury, Vox Political, work, zero hours

Off-message: If Rachel Reeves had promised to get as tough on tax avoidance in her previous job as she is promising to be on benefits now, Labour might have had more credibility.

A lot of people have been getting their knickers in a knot about Rachel Reeves’ interview in today’s Observer – and rightly so.

In it, she tells us (wrongly), “We are not in an environment where there is more money around,” and says that Labour will be tougher than the Tories when it comes to slashing the benefits bill. She stressed that she wanted to explode the “myth” that Labour is soft on benefit costs.

There are a few myths feeding into these statements. Firstly, the myth that millions upon millions of British citizens are living a life of luxury on benefits, which is, quite frankly, infantile nonsense. Benefits do not pay the ordinary claimant enough to afford huge luxuries and never did. They were always intended to cover the cost of survival while the recipient looked for something better. Anything else is a lie concocted by unscrupulous politicians, that you would be a fool to believe.

Then there’s the myth that the British taxpayer is being defrauded out of a fortune by benefit cheats who are (again) living a life of luxury at our expense. One look at the figures dispels that idea! The fact is that only seven people in every thousand commit benefit fraud – at a consequently small cost to the overall budget – and the amount they receive simply would not support the lifestyle our politicians are suggesting for them.

Let’s move up to a bigger myth – that people prefer to live on benefits than get a job. We’ve now moved from infantile nonsense to dangerous nonsense. The current situation, engineered by the conservatives in both Coalition parties, means there are very few jobs available – around 500,000 at any one time, with 2.5 million people chasing them.

And what kind of jobs are they? How many are zero-hours contracts? How many are part-time? These jobs do not pay more than benefits (“Making Work Pay” – another Tory lie) so anyone taking them will be out-of-pocket.

Meanwhile, the Tories in power have rigged the system so that anyone who does not spend the entire working week pestering local businesses for jobs that they aren’t offering will be sanctioned and will lose their benefit for a period of up to three years! It is entirely disproportionate, considering the state of the economy, and may cost jobseekers a lot more than a few quid a week in the long run.

But this is how the benefits bill will be slashed – by the Conservatives and by Labour, if Rachel Reeves is to be believed. Ministers of any party, living in the la-la land of made-up statistics, will sanction people for failing to work hard enough at securing jobs that don’t exist!

Ms Reeves says Labour’s jobs guarantee will ensure that those jobs do exist but we don’t know that for sure. We do know that she intends to continue Tory policy on sanctions – blindly.

Finally, we have the biggest myth of all – that there isn’t enough money. HM Revenue and Customs just released estimates for the last-but-one tax year (2011-12), suggesting that it failed to collect £35 billion in evaded or avoided tax during that year.

That’s seven times more than the national bill for JSA, and more than 29 times the estimated cost of all benefit fraud. But wait – it gets better! This is only an estimate and it has long been believed that the true cost of the so-called “tax gap” is £120 billion – equal to each year’s national deficit, 24 times the cost of JSA or 100 times the cost of benefit fraud.

Why isn’t our government going after these criminals? Why hasn’t Labour promised to go after them if the Tories won’t?

Simple: Both main parties have been re-writing tax law to make it easier for rich individuals and large corporations to avoid paying tax, and ignoring flaws in tax laws that make avoidance possible.

So for example: In the late 1990s, the then-Labour government removed the tax on dividends that meant companies had to pay tax on profits if they wanted to pay them out to the owners. So for example Arcadia boss Philip Green’s wife Tina, who is technically the owner of the company and lives in Monaco, received a tax-free £1.2 billion dividend in 2005; if this tax had been in place, £300 million of that would have gone to the UK Treasury.

Gordon Brown slashed Capital Gains Tax from 40 per cent to 10 per cent in 2000, meaning income that his friends in private equity managed to engineer into capital gains would be taxed at a lower rate than was paid by their cleaners. Not the finest hour for the Party of the Worker!

And towards the end of its term, New Labour started dismantling the rules that guarded against industrial-scale tax avoidance by British multinationals, meaning profits returned to the UK from overseas subsidiaries would be exempt from tax. This created a substantial incentive for firms to send their income offshore.

Before the 2010 election, our old friend David Gauke made a lot of noise about stopping the limitless tax deductibility of interest payments, that had been used by Boots (the chemist) to slash its tax bill. Six months after the election, when he was in a position to do something about it, he was telling everybody the rules would not be altered because business considered them a competitive advantage.

The Coalition brought in tax exemptions for companies’ tax haven branches and for profits parked in tax haven subsidiary companies. Meanwhile, tax breaks for the cost of funding these offshore set-ups, from the UK, are also provided.

Corporation Tax will drop to 21 per cent by 2014, even though there is no evidence that cutting the rate will make the UK any more competitive in world business.

The Treasury’s mission is now to adjust the framework of tax laws to suit big business. The ‘Big Four’ accountancy firms are now well-entrenched in writing our tax laws for us – and they run the most popular tax avoidance schemes. Consultations have descended into a process of agreeing laws demanded by big businesses.

There are clear and irrefutable arguments that reversing these legislative idiocies and closing every other tax avoidance loophole will do far more for the economy than flogging the unemployed to death, looking for jobs that don’t exist.

But I don’t think former Bank of England economist Rachel Reeves will be interested in that. In 1975, an appalled taxpayer wrote to then-Chancellor Denis Healey, complaining that an employee of the Bank (which is supposed to work on preventing tax avoidance) had been giving advice on how to avoid tax. “I wonder if this is really part of the Bank of England’s duties,” the correspondent wrote.

The behaviour of Ms Reeves, the former Shadow Chief Secretary to the Treasury, suggests that she believes it is.

Gauke’s attack should be a rallying cry for Labour

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Another fool who doesn’t think before speaking: David Gauke, pictured here with jaws clamped shut in a desperate attempt to prevent his foot from leaping into his mouth. It would serve him right if his ill-judged attack on a Labour MP brings the entire party and all its supporters together for a concerted attack on the Conservative-led coalition’s silly and baseless policies.

Tory Treasury tax-avoidance fan and whistleblower-basher David Gauke’s attack on the Labour Party is yet another shot in the foot for the Government That Can Do Nothing Right.

His ill-judged, ill-timed remark that Labour MPs were “turning on each other” is more likely to galvanise Her Majesty’s Opposition into more co-ordinated and powerful attacks on Coalition ideology and incompetence – especially after we learned the Tory claim that they inherited an economic mess from the last Labour government was nothing more than a blatant lie.

“They don’t really have anything to say and they’re now turning on each other and I think their own backbenchers are beginning to realise that the Labour leadership haven’t really got a voice,” Gauke told the BBC in response to a piece by Labour’s Swansea West MP, Geraint Davies, in The Independent.

In doing so, it seems Gauke was trying to distract attention from what Mr Davies was actually saying – which is worth repeating here, because it is likely he speaks for a huge majority of Labour members who are becoming increasingly frustrated by the contradictory and self-defeating behaviour of their leaders.

So what does Mr Davies say?

First: “The electorate doesn’t yet see a clear choice between the parties on cuts vs growth.” This is because Labour has promised not to reverse Conservative-led ideological cuts and to keep spending at Tory-set levels for 2015-16, if returned to office at the general election – even though the Conservatives have decisively lost the argument on austerity. It simply isn’t necessary.

Second: “The Tories have been relentless in asserting that Labour messed up the economy. Not rebutting this charge makes us look like a shamefaced schoolboy admitting responsibility by omission.” Mr Davies makes a second good point here – more so because, as William Keegan reported in Sunday’s Observer, the spring issue of the Oxford Review of Economic Policy exonerates the last Labour government of any economic wrong-doing. Gordon Brown and Alistair Darling did the right thing – and it is worth reminding everybody that the Conservatives, at the time, supported their actions. That was when the Tories were led by – who’d have thought it? – David Cameron and George Osborne, just as they are now!

The Observer article went on to note that US Treasury Secretary Jack Lew has also endorsed the Labour government’s actions in his recognition that demand in our economies must be stimulated. Conservative-led Coalition policy has drained demand away. This is why the smart commentators are pointing out that the unforeseen upturn in the UK economy in recent months has nothing to do with government policy; it’s just that things had to get better, sooner or later.

Third: He puts up his opinion – that a Labour government should boost the UK’s productive capacity “by linking industry, universities and councils. We need a sharper focus on the growing export opportunities to China, India, Brazil and Russia. We must invest in homes and transport, use public procurement as an engine to grow small and medium-sized firms…. We need to continue a journey towards jobs and growth, not to be diverted into a cul-de-sac of more cuts.”

The last comment dovetails perfectly with the attack launched by Labour this week on the Coalition’s record – which claims the average worker will have lost £6,600 in real terms between the 2010 election and that due to take place in 2015.

Paraphrasing former Tory PM Harold Macmillan, Labour said many workers had “never had it so bad”, pointing out that David Cameron has presided over a more sustained period of falling real wages since 2010 than any other prime minister in the past 50 years.

The Tories’ only response has been to repeat the lie that the Coalition was clearing up a “mess” that we all now know for certain Labour neither created nor left.

Conservative business minister Matthew Hancock was the one voicing it this time, so voters in his West Suffolk constituency please note: This man is a liar. You must not trust him.

And of course David Gauke weighed in as well. He’s the minister in charge of tax – who was revealed to have worked for a firm specialising in tax avoidance. Do you trust him? He’s also the minister who reportedly green-lit a plan to discredit Osita Mba, a solicitor with HM Revenue and Customs, after he blew the whistle on the notorious Goldman Sachs “sweetheart” deal that wrote off millions of pounds in interest charges on tax owed to the UK Treasury by the multinational corporation. A trustworthy man?

David Gauke is the MP for South West Hertfordshire. Voters there may wish to reconsider their opinion of him.

What these chuckleheads are missing is the fact that Mr Davies is not a lone voice in the wilderness; his article expressed the opinions of a wide majority of Labour members and voters.

And it cannot be coincidence that only a day after his Observer article appeared, veteran Labour MP Michael Meacher weighed in on his blog with a few opinions of his own about what Labour’s leaders should be saying.

“Will the Labour party declare it is opposed to zero hours contracts and will end them?” he wrote (perhaps after reading the Vox Political article on that subject).

“Will it show it is opposed to blacklisting by making it an imprisonable offence, prosecuting the 44 companies who indulged in it if convicted, and making it sure that all the 3,213 building workers secretly subject to blacklisting are informed of the cause of their up to 20 years’ joblessness and fully compensated? Will it say loud and clear that a decade of pay cuts for those on the lowest incomes is flagrantly unjust when the 0.01 per cent richest have not only not paid any price, but have seen their wealth continue to grow untouched?”

This is the sort of fire Labour members and voters want to see from the leaders. There is nothing to fear from tissue paper-thin Tory arguments and outright lies. It is time to stand up for Labour principles, damn the Tories for their evil, damn the Liberal Democrats as fools and dupes, and set out a plan to get the ship of state off the rocks and into calmer waters.

If Ed Miliband, Ed Balls, and the rest of the Labour front bench have any sense, they’ll realise that continuing with the course they have set will put them in a tiny minority that cannot possibly hope to win the next election. Alignment with Geraint Davies, Michael Meacher and the millions like them should ensure an overwhelming victory.

It isn’t even a choice, is it?

Gauke, Osborne and Goldman Sachs: The Treasury’s corrupt tax avoidance conspiracy

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Amyas Morse, Andrew Parks, blower, Customs, Dave Hartnett, David Gauke, deal, Enterprise and Regulatory Reform Bill, George, Gideon, Goldman Sachs, Guardian, High Court, hmrc, judge, Macfarlanes, Margaret Hodge, Mike Sivier, mikesivier, national audit office, Osborne, Osita Mba, Parliament, Revenue, smear, sweetheart, tax avoidance, Treasury, UK Uncut, Vox Political, whistle

Rumbled: David Gauke, the ugly face of Treasury-approved tax avoidance. This man is one reason the poor are being made to pay so heavily for the foolishness of the very rich.

You know something is wrong in the Treasury when the minister in charge of tax is revealed to have worked for a firm specialising in tax avoidance.

The wrongdoing goes off the scale when it is revealed that the same minister has been actively trying to gag a whistleblower who uncovered a “sweetheart” deal to write off a huge amount of tax owed to the UK by a private company.

That is precisely what we have learned today, thanks to The Guardian.

It seems that David Gauke, the exchequer secretary to the Treasury, green-lit a plan to discredit testimony from Osita Mba, a solicitor with HM Revenue and Customs, after he took the notorious Goldman Sachs “sweetheart” deal to the public.

For those who don’t know about this, the deal with Goldman Sachs was worth up to £20 million, and was part of a series of four such settlements, with large companies, that netted £4.5 billion for the Treasury. That might seem like a lot of money.

But it begs the question, asked by Margaret Hodge MP, who chairs Parliament’s public accounts committee: How much did we not get?

One person who might know the answer is Mr Mba, who told two parliamentary committees that the then-head of tax, Dave Hartnett, had agreed a deal allowing Goldman Sachs, a US bank, to escape £20 million in interest charges, payable to the UK. He claimed Mr Hartnett had done this without following proper procedures.

Disciplinary proceedings were launched against Mr Mba within HMRC, meaning he was suspended from work, and an emailed exchange between an HMRC press officer and Gauke’s private secretary strongly suggest that the minister wanted to discredit the whistleblower with a media smear campaign.

From here, matters get very dodgy indeed.

The National Audit Office was asked to investigate the Goldman Sachs case, along with four others, and although Judge Andrew Parks’ report was not publicly released, the head of the NAO, Amyas Morse, told MPs that the deals had been cleared. Morse’s role was later questioned after a leaked document showed that he had told Hartnett the inquiry would find “nothing of substance” – before it began.

And it was revealed last Thursday – again by The Guardian, which appears to be living up to its name – that the deal with Goldman Sachs had been arranged partly to save our part-time Chancellor of the Exchequer, Gideon 0sborne, from embarrassment.

It seems that the dispute with Goldman Sachs was settled hastily after the bank threatened to pull out of a new tax framework, a week after 0sborne had announced that the bank had signed up to it.

The revelation was made at the High Court last Wednesday, where UK Uncut was calling for a judgement to declare that the 2010 settlement between the bank and HMRC was unlawful. The court heard that Hartnett had personally overruled legal advice, the HMRC’s own guidelines and its internal review board over the issue (confirming Mr Mba’s claim).

So it was a cover-up, in order to allow a company to escape paying the UK a huge amount of money, with the blessing of ministers including 0sborne and Gauke.

In Gauke’s case, of course, this is unsurprising. It has long been known – as can be seen by this entry on the right-wing Guido Fawkes blog – that the minister has not only avoided paying tax himself but also worked for Macfarlanes, a top city law firm that specialises in helping the wealthy avoid paying tax.

The Enterprise and Regulatory Reform Bill, which has been passing through Parliament recently, includes a section intended to introduce greater protection for individuals from harassment when they blow the whistle at work.

In the light of the treatment of Mr Mba, by members of the government that has introduced this bill, it remains to be seen whether this measure was ever intended to succeed.

Government borrowing: Insanity, explained with nonsense

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austerity, Bank of England, benefits, BoE, British Chambers of Commerce, Coalition, Conservative, Conservative-led, Corporation Tax, crisis, David Cameron, David Gauke, debt, deficit, economic, economy, Eurozone, GDP, George Osborne, government, government borrowing, Gross Domestic Product, Guardian, income, inflation, Mike Sivier, mikesivier, national, OBR, Office for Budget Responsibility, Office for National Statistics, offshore, ONS, Parliament, people, politics, Royal Mail, Sir Mervyn King, tax, tax avoidance, tax haven, Tories, Tory, Tory-led, Treasury, Vox Political

The Coalition government has no intention of reducing the UK’s debt burden as it provides an excuse to cut spending on public services and shrink the state. Messrs Cameron, Osborne et al know that, when the public becomes sick of all the nonsense they have been spouting about it, they can hand the mess over to the next government and laugh all the way to the (offshore) bank.

Government borrowing figures for August have been released and the Treasury has been talking nonsense about them. Again.

Let’s start with the facts: UK public sector net borrowing was £14.4bn in August – slightly higher than the same month last year, and therefore the biggest deficit for the month since records began. Corporation tax receipts fell by 2.1 per cent; benefit payments rose by 4.9 per cent.

Barring the effects of one-off transactions like the raid on the Royal Mail Pension Plan that I mentioned last month, borrowing from April to August increased by £12.9bn, or 22 per cent, on the same period last year – to £61.3bn.

The British Chambers of Commerce reckon that at this rate, total borrowing for 2012-13 will be £20bn+ more than estimated by the misnamed Office for Budget Responsibility at the time of the last budget.

Public sector net debt stood at £1.04 trillion at the end of August 2012, equivalent to 66.1 per cent of gross domestic product (GDP) – that’s up from 1.032tr at the end of July, or 65.7 per cent of GDP.

The BBC, reporting on its website, has stated that the figures make it more likely the government will fail to wipe out the structural budget deficit by its deadline – and I think it won’t make a difference whether that’s 2015 (already long-abandoned) or 2017.

The Treasury, on the other hand, is still telling us it is getting the deficit down. Exchequer secretary to the Treasury David Gauke said new figures showing borrowing for 2011-12 came it at £119bn, rather than the OBR’s forecast of £126bn meant the government was dealing with its debts.

This is particularly rich, coming from him. Everybody now knows that the best way for the government to pay down its debts is to tax all the rich Brits who have stashed their cash in offshore tax-havens. Mr Gauke used to work for a tax avoidance firm and his wife is a tax avoidance lawyer. He is exactly the wrong man to lecture us on getting the deficit – the difference between government spending and tax receipts – down.

Some, like Sir Mervyn King, governor of the Bank of England, are now saying that overshooting the deficit reduction target would be acceptable if the reason was slower economic growth across the world, and the government has been happy to play its ‘Eurozone Strife’ card many times in the past.

But I’m not convinced. I tend to agree with The Guardian’s summary of the Coalition’s non-achievements so far, which states: UK exports to the EU have been growing, at least until early 2012; the deepening Eurozone crisis was mainly due to the same austerity policies employed in the UK; therefore austerity should have been cut back and demand revived.

What we’re left with should be no surprise to anyone: Numbers that don’t add up and explanations that don’t make sense.