Bankers who torpedoed the economy are set to get away with it after all

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Andrew Green QC, Andy Hornby, bank, banker, Banking Standards, Coalition, Conservative, crisis, David Cameron, Democrat, economic, economy, FCA, financial, Financial Conduct Authority, Financial Services Authority, fred goodwin, fred the shred, FSA, fund, George Osborne, government, HBOS, James Crosby, Johnny Cameron, Lib Dem, Liberal, Lord Stevenson, maxwellisation, Mike Sivier, mikesivier, Mirror, Parliamentary Commission, pension, Peter Cummings, politics, Private Eye, RBS, recession, Robert Maxwell, Royal Bank of Scotland, Tom McKillop, Tories, Tory, Vince Cable, Vox Political

Not even this many: This Economist cartoon paints a false picture of the situation. The magazine has stated: “In Britain, which had to bail out three of its biggest banks, not one senior banker has gone on trial over the failure of a bank.”

Here’s a word that should be in all our dictionaries but probably isn’t: ‘MAXWELLISATION’.

It refers to a procedure in British governance where individuals who are due to be criticised in an official report are sent details in advance and permitted to respond before publication. The process takes its name from the late newspaper owner Robert Maxwell, who fell off a yacht after stealing the Mirror Group’s pension fund.

Maxwellisation is how the irresponsible bankers who caused the economic recession, out of which some of us have just climbed according to the latest figures, are likely to get away Scot (and the word is used most definitely in reference to the land north of England) free.

Current folk wisdom has it that most of us are still unhappy about the banking crisis. We want to see heads roll.

This is a serious headache for the Coalition government, according to Private Eye (issue 1371, p33: ‘Call to inaction’) – because almost nobody involved in that fiasco is likely to suffer the slightest inconvenience.

They really are going to get away with it because the government of the day really is going to let them.

It seems that Andrew Green QC has been hired to find out whether action could and should be taken against those who bankrupted HBOS, beyond corporate lending chief Peter Cummings, who has already been banned for life from the industry and was fined half a million pounds in 2012.

That might seem a lot of money but the HBOS crash, along with that of the Royal Bank of Scotland, cost the taxpayer £60 billion (along with who-knows-how-much in interest payments).

Mr Green has also been asked why HBOS chief executives James Crosby and Andy Hornby were untouched, along with chairman Lord Stevenson.

For the facts, he need look no further than what happened with RBS, the Eye reckons.

In 2010, the Financial Services Authority – discredited forerunner to the FCA – allowed (allowed!) RBS’s top investment banker Johnny Cameron to ban himself from another senior banking job. The following year it pronounced chief executive Fred ‘The Shred’ Goodwin and chairman Sir Tom McKillop effectively blameless. Mr ‘The Shred’ was stripped of his knighthood, however.

This whitewash appears to have been an embarrassment for business secretary Vince Cable, who announced in December 2011 that he wanted to prosecute, disqualify as directors or ban from the financial sector those responsible at RBS and passed his request for disqualification up to the Scottish law officers in early 2012.

He is still awaiting an answer, it seems.

Back to HBOS, where Cable has made “similar disqualification noises”, according to the Eye, after a “highly critical” report from the Parliamentary Commission on Banking Standards last year.

Unfortunately for him, not only is HBOS also based in Scotland, so any proceedings may have to follow a similar path to those involving RBS, but also the FCA’s report into the bank’s failure is currently “unfinished”.

This is because it is being “Maxwellised” – according to the Eye, “whereby lawyers for those in the frame (if allowed) remove anything critical of their clients”.

The report continues; “With RBS, ‘Maxwellisation’ took several months and resulted in the whitewash that made any future action against those found not guilty difficult, if not impossible.

But the public wants heads to roll! Will anybody get what’s coming to them?

According to the Eye, the answer is a qualified “yes”.

Only one boss of HBOS still has links with any organisation regulated by the FCA – James Crosby is a director of the Moneybarn sub-prime car finance group and its parent, the Duncton Group. The FCA took over regulation of the consumer loan industry in April and has until December 2015 to provide full approval to the Moneybarn operation. The Eye states: “By then chairman Crosby would have to pass its ‘fit and proper’ test. He is completely unauthorised. So, a low-hanging scalp.”

Beyond that, expect “a wringing and washing of Coalition political hands, blaming legal loopholes, failures of others and it-was-all-a-long-time-ago”.

It is possible that other directors could be offered the Johnny Cameron deal – agree not to be a director for a few years “and this will all go away quickly and cheaply with no public hearings”.

Cable – along with George Osborne, David Cameron and any other Coalition MP who claimed that they were making laws to ensure the bankers responsible would face prison sentences – will simply walk away from the whole affair and hope that you forget about it.

Are you going to let that happen?

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Tax credit debt collection is a double-edged attack on the poor

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agencies, agency, alarm, Anne Begg, avoid, bank, benefit, benefit cap, benefits, call, Coalition, collection, collector, Conservative, Customs, Dame, debt, Department, descriptor, disability, disabled, distress, donate, donation, DWP, evade, evasion, fund, George Osborne, government, harass, hmrc, letter, message, Mike Sivier, mikesivier, mobile, offshore, overpaid, overpay, Party, Pensions, people, phone, politics, Revenue, sanction, self-employed, social security, tax, tax credit, telephone, Tories, Tory, Vox Political, welfare, work

There’s more than a little of the piscine about the fact that our Conservative-led has set debt collection agencies onto poor families who have been overpaid tax credit due to errors made by HM Revenue and Customs.

Firstly, the move undermines the principle behind the tax credit system – that it is there to ensure that poorly-paid families may still enjoy a reasonable living standard. Tax credits are paid on an estimate of a person’s – or family’s – income over a tax year and the last Labour government, knowing that small variances could cause problems for Britain’s poorest, set a wide buffer of £25,000 before households had to pay anything back.

By cutting this buffer back to £5,000, the Conservatives have turned this safety net into a trap. Suddenly the tiniest overpayment can push households into a debt spiral, because their low incomes mean it is impossible to pay back what the government has arbitrarily decided they now owe.

And the sharks are circling. Instead of collecting the debt on its own behalf, HMRC has sold it on to around a dozen debt collection agencies who are harassing the families involved with constant telephone calls, mobile phone messages and letters to their homes.

In total, HMRC made 215,144 referrals to debt collectors in 2013-14. Of the working families involved, 118,000 earned less than £5,000 per year.

This takes us to our second area of concern. Remember how the Department for Work and Pensions has been encouraging people – particularly the disabled – to declare themselves as self-employed in order to avoid the hassle and harassment that now go hand in hand with any benefit claim? You know – the refusal of benefits based on arbitrary ‘descriptors’ that were originally devised by a criminal insurance company as a means to minimise payouts, and the constant threat of sanctions that would cut off access to benefits for up to three years unless claimants manage to clear increasingly difficult obstacles.

And do you remember how the DWP reported earlier this year that more than 3,000 people who were subjected to the government’s benefit cap have now found work? This blog suggested at the time that many of them may have been encouraged to declare themselves self-employed in order to escape the hardship that the cap would cause them.

Both of these circumstances are likely to lead to a verdict of overpayment by HMRC, as the self-employment reported by these people is likely to be fictional, or to provide less than required by the rules – either in terms of hours worked or income earned.

Suddenly their debt is sold to a collection agency and they are suffering government-sponsored harassment, alarm and distress (which is in fact illegal) far beyond anything they received from the DWP; debt collection agencies are not part of the government and, as Dame Anne Begg pointed out in the Independent article on this subject, “The tactics they use to collect the debt are not tactics a government should use.”

Maybe not. So why employ such tactics?

Let’s move on to our third, and final, worry. By setting sharks on the hundreds of thousands of minnows caught in the government’s trawler-net (that was formerly a safety net – and I apologise for the mixed metaphor), the Tory-led administration is creating a handy distraction from the huge, bloated, offshore-banking whales who donate heavily into Conservative Party funds and who are therefore never likely to be pursued for the billions of pounds in unpaid taxes that they owe.

The government has promised to clamp down on tax evasion and avoidance, but ministers would have to be out of their minds to attack the bankers and businesspeople who pay for their bread and butter.

George Osborne suffered huge – and entirely justified – derision last year when HMRC published a list of its top 10 tax dodgers, which revealed that public enemy number one was a hairdresser from Liverpool who had failed to pay a total of £17,000.

It seems likely that the Conservatives have decided that future announcements will involve the reclamation of far larger amounts, and from far more people…

Innocent people who were either cheated by Tory-instigated changes to the system or by Tory-instigated misleading benefit advice.

Meanwhile the guilty parties continue to go unhindered. Their only payouts will continue to be made to – who was it again?

Oh yes…

To the Conservative Party.

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Tory Democrats on Europe: Confused and negative campaigning

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alliance, block graph, Brecon, broadband, campaign, Cardiff Bay, child poverty, Coalition, Conservative, Democrat, election, Enterprise, Europe, fund, Labour, Lib Dem, Liberal, medium, Mike Sivier, mikesivier, negative, Parliament, Plaid Cymru, quality of life, Radnorshire, Roger Williams, small, SME, Sunday Times rich list, Tories, Tory, tourism, toxic, UKIP, Vox Political, Westminster, work

Negative campaigning at its worst: It’s what the Liberal – or is it Tory? – Democrats do best.

If you thought the Tory manifesto was a deceitful joke, or the row over UKIP’s policies was damaging, have you seen what the Liberal (?) Democrats have been sending around?

Here’s a letter sent to houses here in Brecon and Radnorshire. It starts with the famous Lib Dem block graph, which is a mainstay of all their election communications in places where they have won seats. Presumably they keep using it because it is effective but one has to doubt this example, as it does not feature a European election result, but that of the last UK general election in 2010.

They cannot use a block graph to show a favourable result in the last European election because they don’t have any Welsh MEPs, and the result in the last Welsh Assembly election (in 2011) showed support was already eroding away as a result of their toxic alliance with the Conservative Party in Westminster, along with some spectacularly effective campaigning by the local Labour Party.

The result is a misleading graphic that shows a massive Liberal Democrat majority, coupled with the slogan, “Only the Lib Dems can beat the Tories here”, where in fact we have two Labour MEPs, one Tory and one representing Plaid Cymru.

It hardly encourages confidence when a political letter – from one of the ruling parties in Westminster – begins with a filthy lie.

The text of the letter, by the constituency’s Liberal Democrat MP Roger Williams, asks where the reader wants to be working in five or 10 years, and suggests we will be looking for more pay, promotions and a better quality of life. He states that it is important to protect the economic recovery, but “all that hard work could be undone” if Britain pulls out of the EU “as UKIP and many Conservatives want to do”.

Thanks to the UK’s Coalition government, ordinary hard-working people are receiving far less pay than before the 2010 election, with a corresponding drop in quality of life. Child poverty, for example, is rising fast. The economic recovery has helped nobody but the very top earners (like those in the Sunday Times ‘rich list’, published last weekend) – and besides, the Tory Democrats are not the only party keen to protect Britain’s place in Europe. For that, your best bet is still Labour or (in Wales) Plaid Cymru.

The letter continues: “Across rural Wales the EU has invested £5.8 million into local businesses struggling to find funding to grow and create more jobs, this is on top of the £26 million invested in promoting tourism to Wales which is vital to our local economy.” Yes indeed – but that money was negotiated by either a Labour government in Westminster or a Labour government in Cardiff Bay. It has little to do with the Tory Democrats!

The letter ends with an exhortation to vote for the Yellow Party’s nonentity candidate, whose name is instantly forgettable.

Alongside this came a double-sided flier offering more of what the Tory Democrats do best – negative campaigning. “Don’t gamble with Welsh jobs…” it states, “Stop UKIP and the Tories from risking Wales jobs”. A box-out with a red background says, “Labour stay silent” – which is a blatant falsehood.

Flip the page and you’ve got the pro-Tory Democrat bit – but they can only say they have “helped deliver” funding for superfast broadband, funding for small-to-medium-sized enterprises, and cash to support tourism. And who did they help?

Labour!

It’s a sad little screed from an organisation in its twilight days.

The saddest part is that someone will believe it.

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‘Shoestring Army’ to battle government-imposed ‘slavery’ in the courts

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10, A Letter A Day To Number, allowance, benefit, benefits, challenge, claimant commitment, Coalition, coerce, coercion, compliance, comply, conditionality, Conservative, contract, court, crowdsource, Democrat, Department, DWP, employment, entitlement, fund, government, Human Rights Act, Iain Duncan Smith, jobseeker, JSA, Keith, legal, Liberal, Lindsay-Cameron, Lord Freud, Mike Sivier, mikesivier, Ordinary Guy, Pensions, people, police, politics, raise, responsibilities, sanction, Shoestring Army, slave, slavery, social security, Ten, Tories, Tory, unemployment, welfare, work

Energising: Keith Lindsay-Cameron prepares to take his case to the police.

An activist from Somerset is raising his own ‘Shoestring Army’ to crowdsource funds and mount a legal challenge against the government’s new Claimant Commitment for jobseekers, after police said they were unable to arrest Iain Duncan Smith and Lord Freud for breaching the Human Rights Act.

Keith Lindsay-Cameron, of Peasedown St John, near Bath, was advised to obtain the services of a solicitor and raise a legal challenge in the courts after he made his complaint at Bath police station on Friday (May 2).

He said the conditionality regime that is part of the new Claimant Commitment will re-cast the relationship between the citizen and the State – from one centred on ‘entitlement’ to one centred on a contractual concept in which the government provides a range of support only if a claimant meets an explicit set of responsibilities, with a sanctions regime to enforce compliance.

According to Mr Lindsay-Cameron, this amounts to the reintroduction of slavery. Forced compliance – through the sanctions regime – means people will be denied the means of survival if they fail to meet the conditions imposed on them. Deprivation of the means of survival, he claims, also breaches the act’s guarantee that everybody has the right to life and should not be deprived of it.

“The civilian desk receptionist asked my business and I gave her a verbal breakdown – that I had come to accuse Iain Duncan Smith and Lord Freud of crimes under the Human Rights Act 1998,” said Mr Lindsay-Cameron, who is better-known to thousands of readers as the author of the A Letter A Day To Number 10 internet blog.

“The Claimant Commitment contract means the loss of access to any benefits if one refused to sign, and benefit sanctions if one was considered to be in breach of the signed contract. Either way, this amounts to forced labour and therefore slavery.

“I was asked for more details and explained that a sanction – loss of benefits – meant the loss of the means of survival. I said we had not come to ridicule the police or to challenge them, but that they existed as our – ordinary folks’ – doorway to justice and that what I was doing there was asking for their help and that I was personally in the system and that we all needed help.”

But a police inspector told the activist, and the small group who attended to show their support, that officers at his station could not deal with the matter.

“I explained the situation and what the coercion of sanctions meant and that this did not constitute anything normal as a civic obligation under the human rights act – and I pointed out that if he made a mistake, he would not face a loss of a month’s income, nor three months’ for a second error or three years’ loss of income for a third infraction,” said the campaigner.

“He explained to me that, under the law, Iain Duncan Smith and Lord Freud were upholding the laws that they had made and that – whatever I felt about that – they had no case to answer and that his job as a police officer was to enforce the law.

“He said that I would need to obtain the services of a solicitor and raise a challenge in the courts for a judge to decide whether the actions of Duncan Smith and Freud were a breach of human rights.”

He said this process was already under way. The group has bought the internet domain name theshoestringarmy.com and will now start the process of a challenge.

Mr Lindsay-Cameron added that his visit to Bath Police Station was delayed when he stopped to meet a group of homeless people in the churchyard next door, while police were trying to move them on.

“It gave us a bizarre sense of what we were about to embark on,” he said.

“Where do people go, having nothing and welcome nowhere, in the land of the growing dispossessed?”

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How can a company that has discriminated against the disabled be ‘DisabilityConfident’?

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Access to Work, business, Coalition, company, confident, Conservative, David Cameron, disability, disabled, discriminate, discrimination, Easyjet, electric, entrepreneur, firm, fund, government, grant, job, Mike Sivier, mikesivier, muscular dystrophy, Paralympics, permanent, placement, presenter, self-employment, Sophie Morgan, start-up, Stelios Haji-Ioannou, support, temporary, Tories, Tory, Vox Political, wheelchair

Here’s a mixed message:

The Conservative-led Coalition government wants us all to believe that the number of disabled people getting support to get or keep a job is rocketing.

But the businessman it is using to front its PR campaign founded a company that has been convicted of discrimination against the disabled in the recent past.

According to the government’s press release, Sir Stelios Haji-Ioannou, the founder of Easyjet, said: “Already over 100,000 disabled entrepreneurs employ an equivalent number of people in their business start-ups.

“I encourage disabled people out there who have a germ of an idea for a business, but are unsure of how to go about it, to take advantage of the support the government has on offer to help you make your business fly.”

But in 2011, EasyJet told a boy with muscular dystrophy that he could not fly – because his electric wheelchair was too heavy for baggage handlers.

And in 2012, Paralympics presenter Sophie Morgan received similar treatment.

It seems, if you are disabled, EasyJet’s business has been to keep you on the ground.

The government reckons the number of people using its Access to Work scheme has risen by more than 10 per cent, to 31,230 – and has claimed that disabled people are moving into jobs, training or work placements at a rate of more than 100 every working day.

But the press release does not elaborate on how many of these jobs are permanent, how many are merely temporary placements, how many are self-employment start-ups that will receive funding for a short period and will fold when the grants run out, and so on.

Apparently it is all part of a campaign launched by David Cameron last year, called DisabilityConfident.

From what’s on show here, it seems disabled people have precious little reason to be confident.

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Free’s a crowd in Tory-run NHS hospitals

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accident, ambulance, bed, block, care, Conservative, emergency, fund, health, long term, Mike Sivier, mikesivier, National Health Service, NHS, opeation, people, pit, politics, sick, snake, surgeon, Tories, Tory, Vox Political, Wales, Westminster

Free’s a crowd (as far as your Tory government is concerned): Our hospital wards don’t yet look like this (it’s a ward in India during a Malaria outbreak) but it’s just a matter of time.

Today, yr obdt srvt spent the morning at Breconshire War Memorial Hospital, where Mrs Mike underwent a few tests before being booked in for an operation at the end of the month.

We didn’t wait long to be seen. The surgeon made his checks, asked “When would you like to have the operation?” and booked it for the very first opportunity available.

We get freedom of choice in the Welsh NHS, you see.

I couldn’t help but comment: “NHS Wales is a mess, says Westminster.”

Conversation ensued, with us all (including the nurse) agreeing that the Tories in government don’t have a clue what they’re talking about – and in any case they don’t have a right to complain because they have withdrawn a disproportionate amount of funding from the NHS in Wales. The surgeon actually compared our politicians to a pit of snakes.

The conversation followed on very well from one I had with a friend last night, about those problems the service is known to be experiencing in Accident and Emergency. They aren’t any different from those affecting the health service in England, and have less to do with the quality of care than they have to do with bed-blocking.

Put simply: Wards are full of people with long-term care needs who have nowhere to go, because they have no family or friends who are willing to take them in and look after them. This means people admitted to A&E cannot be moved into the wards, so their places cannot be taken by new admissions – and this means ambulances start backing up outside the hospitals. Then there are no ambulances available for new emergency calls, because they are still carrying the patients they picked up at the last call.

That’s overly simplistic, but hopefully the point is made.

The Conservative-led Coalition government is perfectly content to let this go on because “Free’s a crowd” in the Tory health system.

Back in the 1970s, when my own grandmother started to get too old and infirm to live on her own, my parents took her into our house. They got the benefit of an extra pair of eyes to look after myself and my brother (Beastrabban), and the household was boosted by the addition of her pension (or rather, the part of it that she agreed to pay for her keep).

It was a very good arrangement.

And it begs the question: Are people now so selfish – so determined to avoid the responsibilities incurred by looking after the people who once looked after them – that they are actively trying to avoid the benefits that can be gained from such an arrangement?

Or (to mess up a metaphor) are we a nation so schizoid that we think cutting off our nose will improve our face?

That’s an attitude that started back in the Tory-dominated 1980s, if my memory serves me correctly.

It occurs to me that (and again, I am oversimplifying) the crisis in A&E is the price we all pay for that kind of behaviour.

It won’t be solved with money.

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Were the winter floods really that bad – or were they a distraction?

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Coalition, Conservative, cut, David Cameron, distract, Ed Miliband, Environment Agency, Eric Pickles, flood, fund, government, Media, Mike Sivier, mikesivier, money is no object, Owen Paterson, people, politics, storm, Tories, Tory, UK, Vox Political, Wellington boots, winter

Photo opportunity: David Cameron and his posh new Wellies, talking a good fight but putting up less funds than he previously took away.

The storm of recriminations over the floods that battered the UK during the last few months appears to have been entirely disproportionate to their effect, if Vox Political‘s moles in the Environment Agency are to be believed.

Consider this: In 2007, the UK was hit by unprecedented flooding that damaged around 55,000 properties. Between December 2013 and February this year, the country was again hit by floods. Total number of properties flooded: around 5,000.

So we’ve had one-eleventh of the damage to homes, and (it seems) 11 times the fuss!

The media frenzy has given us photographs of David Cameron visiting flood-hit areas in his posh new Wellington boots, Ed Miliband being unjustifiably upbraided by a posh-voiced villager in his new Wellington boots, Eric Pickles blaming Owen Paterson, Owen Paterson blaming anyone he can, and everybody blaming the Environment Agency.

This is why Vox Political‘s EA moles are feeling ill-served; they say they have been doing the best they can under extremely difficult conditions – starved of funds, working 60-hour weeks including weekends with no extra pay (of course).

The extra cash provided by Mr “Money Is No Object” Cameron did not even equal the amount he had previously cut from the Environment Agency’s budget, meaning that the organisation was still unable to provide the service it had managed before the Conservative Party took the reigns of government in 2010.

Although funding cuts have been put on hold – for now, the Agency has no reason to believe its budget will not be hit again, as soon as the politicians find it expedient. If that is the case, what do you think will happen when the next flood hits?

This was a disaster that could have been avoided, with better planning and funding. But it wasn’t, and the government publicity machine went into overdrive while it was going on.

So our moles have been left with two questions:

Was this disaster manufactured?

If so, what was the government really doing while everyone was distracted by the constant media coverage of the storms?

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Flooding: Why is the taxpayer picking up the tab? There’s an EU fund!

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BBC, Cornwall, David Cameron, Environment Agency, Eric Pickles, EU, european union, flood, fund, government, handout, Kenneth Clarke, Kent, Levels, lynch mob, Mike Sivier, mikesivier, Owen Paterson, Oxfordshire, people, politics, Prince Charles, Question Time, Reading, Somerset, Surrey, taxpayer, Vox Political, Windsor

The Conservative response: David Cameron swans around the Somerset Levels in his wellies while local MP Ian Liddell-Grainger (second from left) tries to get a word in edgeways.

It seems that David ‘Money Is No Object’ Cameron is unnecessarily forcing British taxpayers to fork out for flood relief while European officials scratch their heads and wonder why he isn’t taking advantage of a huge EU fund that is available to us.

We should all know why the comedy Prime Minister is avoiding Europe – he doesn’t want to lose face.

Eurosceptics in the Conservative Party across the UK criticise our membership because we pay so much in and take so little out (in their perception); this argument would be defeated if Cameron actually used the fund in the manner for which it was created and he would then lose support from members of his Parliamentary party.

Also, at a time when the UK’s future in Europe is being questioned, it would be “politically sensitive” (as Reuters describes it) for Cameron to go there and ask for a handout.

But governments are judged on the way they deal with crises (as the Political Rant blog put it) – and this one has put Cameron, figuratively as well as literally, between the rock and the river.

According to Reuters: “Asked whether Britain would ask for EU money, Cameron’s official spokesman told reporters on Wednesday the government was looking at every source of possible funding, playing down the idea that there was anything political behind it.

“Under EU rules, a country has 10 weeks from the first damage caused by a natural disaster to request aid.

“A person close to Cameron said there were technical grounds to do with spending thresholds that determined when to apply for a grant. Britain had no desire to get into a war of words with Brussels on the matter, he said.”

The news agency added that the government had deployed the armed forces to evacuate residents and shore up river defences, while under fire from critics for what ministers have acknowledged was a slow initial response.

Political Rant is less diplomatic (as you might expect): “Ken Clarke said it was just a normal winter and people complaining about flood defences were just a ‘lynch mob’. Eric Pickles criticised the Environment Agency while the Environment Agency criticised government cuts and Owen Paterson criticised Eric Pickles.

“David Cameron has undertaken several jaunts in his nice clean wellies, first to Kent just after Christmas where he was harangued by people left waist-deep in water without power for a week, then Somerset which he only visited after Prince Charles had been the day before, making it look rather silly the Prime Minister hadn’t bothered, and … to Cornwall where, a friend tells me, Railtrack diverted engineers who were supposed to be fixing the washed-out rail line at Dawlish to shake hands with the PM at a rail depot.

“The same PM has talked sadly about how a power cut interrupted his viewing of The Sound of Music on New Year’s Day while staying silent about two SSE engineers who said they were diverted from reinstating the power for 11,000 people to locate his trip switch.

“When the floods recede, we are more than likely to find a few people who died.”

Yes, and they’ll be in rural areas because the increased funds Cameron has announced amount only to a slightly smaller cut than he had originally intended, and the funding formula for flood defences demands £8 of economic benefit for every £1 spent – meaning a concentration on densely-populated urban areas.

Add to that the fact that Cameron only bothered to act when Conservative-voting areas were affected – the Somerset Levels, Windsor, Reading, Oxdfordshire, Surrey, Kent – and couldn’t care less when the waters were hitting places like Scunthorpe (as revealed on the BBC’s Question Time yesterday) and Cameron has put himself in a serious political mire.

He has made it clear that his is a government that only looks after its own supporters.

Everyone else can drown.

We won’t forget that.

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The Coalition is creating serious problems and distracting you with phantoms

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Annual Survey, ASHE, Bank of England, BBC News, beauty, bedroom tax, benefit, benefit cap, BoE, breasts, bribe, Bulgaria, business, business rate, catastrophe, Child Benefit, claimant, Coalition, Conservative, council, council tax, CPI, Croatia, cure, cut, David Cameron, debt, defence, Democrat, deodorise, earning, earnings, economic, economy, false, falsify, fiddle, figure, fiscal, flood, frack, fund, George Eaton, George Osborne, government, Heathrow, hours, household, housing bubble, IFS, immigrant, Income Tax, individual, industry, inflation, Institute, interest rate, invent, Jill Filipovic, job, jobseeker, Jonathan Portes, Jonathan Wilson, Keith Vaz, Lib Dem, Liberal, low-paid, Matthew Hancock, Mike Sivier, mikesivier, National Institute, national insurance, New Statesman, NIESR, pay, Personal Allowance, politics, pretend, problem, reassessment, retail, rise, Romania, RPI, salary, sanction, self-employed, shale gas, Social Research, storm, Studies, swoob, tax credit, The Guardian, Tories, Tory, unemployment, uprating, upturn, Vox Political, wage, weather, Workfare

According to the beauty industry, women must now start deodorising under their breasts.

I kid you not – it was in The Guardian.

Columnist Jill Filipovic hit the nail on the head when she wrote: “I can already hear your objections: ‘But the area under my boobs doesn’t stink!’ or ‘What kind of marketing genius not only came up with the term “swoob,” but actually thought half the world’s population might be dumb enough to buy into it?’ or simply, ‘This is a dumb product aimed at inventing an insecurity and then claiming to cure it.’

“You would be correct on all three points.

“In fact, inventing problems with women’s bodies and then offering a cure – if you pay up – is the primary purpose of the multi-billion dollar beauty industry.”

The simple fact is that you don’t really need to worry about smells down there – a good old soapy flannel will cure any such problems.

That’s not the point, though. The aim is to get you thinking about it and devoting your energy to it, rather than to other matters.

Now let’s translate that to politics.

We already know that all the scaremongering about Romanian and Bulgarian immigrants storming the country from January 1 was a crock. That bastion of good statistics, The Now Show, told us last week that the total number of Bulgarian immigrants in the last couple of weeks was “around two dozen so far”, according to their ambassador. In the first three months after our borders were opened to Croatians, 174 turned up.

Yet the government wanted you to believe they would flood our immigration service in their millions, “taking benefits and yet simultaneously also taking all the jobs”.

My use of language such as “storming” and “flood” is not accidental. By far the more serious threat to the UK in the early days of 2014 was the weather – and, guess what, not only was the government unprepared for the ferocity of the storms that swept our islands, the Coalition was in fact in the process of cutting funding for flood defence.

This would have gone unnoticed if the weather had behaved itself, because we would all have been distracted by the single Romanian immigrant who was ensnared by Keith Vaz in a ring of TV cameras at Heathrow Airport.

Now the Tories are telling us that our take-home pay is finally on the rise for all but the top 10 per cent of earners, with the rest of us seeing our wages rise by at least 2.5 per cent.

The government made its claims (up) by taking into account only cuts to income tax and national insurance, using data leading up to April last year, according to the BBC News website.

This kind of nonsense is easily overcome – New Statesman published the above chart, showing the real effect of changes to weekly income for people in various income groups, and also provided the reason for the government’s mistake (if that’s what it was).

“The data used … takes no account of the large benefit cuts introduced by the coalition, such as the real-terms cut in child benefit, the uprating of benefits in line with CPI inflation rather than RPI, and the cuts to tax credits,” writes the Statesman‘s George Eaton.”

He also pointed out that other major cuts such as the bedroom tax, the benefit cap, and the 10 per cent cut in council tax support were introduced after April 2013 and were not included in the Coalition figures.

Once all tax and benefit changes are taken into account, the Institute for Fiscal Studies has shown that almost all families are worse off – and the Coalition also appears to have forgotten the five million low-paid workers who don’t earn enough to benefit from the increase in the personal allowance.

Skills and enterprise minister Matthew Hancock compounded the mistake in an exchange on Twitter with Jonathan Portes, director of the National Institute of Economic and Social Research (NIESR). Asked why his analysis “ignores more than four million people in work (the self-employed)”, Mr Hancock tweeted: “Analysis based on ONS ASHE survey of household earnings data”.

Wrong – as Mr Portes was quick to show: “Don’t you know the difference between household and individual earnings?”

Apparently not. ASHE (Annual Survey of Hours and Earnings) is a survey of employed individuals using their National Insurance numbers – not of households or the self-employed.

So the Coalition – and particularly the Tories – were trying to make us all feel good about the amount we earn.

That’s the distraction. What are we supposed to be ignoring?

Would it be David Cameron’s attempt to bribe councils into allowing shale gas companies to frack their land? Councils that back fracking will get to keep all the business rates collected from the schemes – rather than the usual 50 per cent.

He has also claimed that fracking can boost the economy and encourage businesses into the country, in a further bid to talk down dissent.

Or is it the growing threat of a rise in interest rates, which may be triggered when official unemployment figures – which have been fiddled by increased sanctions on jobseekers, rigged reassessments of benefit claimants, a new scheme to increase the number of people and time spent on Workfare, and the fake economic upturn created by George Osborne’s housing bubble – drop to seven per cent?

It seems possible that the government – especially the Tory part of it – would want to keep people from considering the implications of an interest rate rise that is based on false figures.

As Vox Political commenter Jonathan Wilson wrote yesterday: “If the BOE bases its decisions on incorrect manipulated data that presents a false ‘good news’ analysis then potentially it could do something based on it that would have catastrophic consequences.

“For example if its unemployment rate test is reached, and wages were going up by X per cent against a Y per cent inflation rate which predicted that an interest rate rise of Z per cent would have no general effect and not impact on house prices nor significantly increase repossessions (when X per cent is over-inflated by the top 1 per cent of earners, Y per cent is unrealistically low due to, say, the 50 quid green reduction and/or shops massively discounting to inflate purchases/turnover and not profit) and when it does, instead of tapping on the breaks lightly it slams the gears into reverse while still traveling forward… repossessions go up hugely, house prices suffer a major downward re-evaluation (due to tens of thousands of repossessions hitting the auction rooms) debt rates hit the roof, people stop buying white goods and make do with last year’s iPad/phone/tv/sofa, major retail goes tits up, Amazon goes to the wall, the delivery market and post collapses… etc etc.

“And all because the government fiddled the figures.”

Perhaps Mr Cameron doesn’t want us thinking about that when we could be deodorising our breasts instead.

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Jobseekers and the self-employment trap

Tags

benefit, bounty, budget, business, commission, Conservative, Democrat, Department, DWP, election, esther mcvey, firm, fund, general, insolvent, jobseeker, Jobseeker's Allowance, Labour, Lib Dem, Liberal, loan, Mike Sivier, mikesivier, Pensions, self employ, social security, tax relief, Tories, Tory, Vox Political, welfare, work

Yesterday’s outburst against Esther McVey and her innovative way of interpreting the benefit claimant statistics proved very popular as readers clamoured to suggest alternative reasons why people who deserve benefits are no longer getting them.

One of these deserves an article of its own, because it really is ‘The One That Got Away’ – and doesn’t deserve to. As the commenter who raised it pointed out, it could be a huge scandal.

We refer, of course, to the fact that people on Jobseekers’ Allowance are being, let’s call it, ‘persuaded’ to go self-employed and start new businesses.

How are these businesses funded? Do these people get a share of a different DWP budget? Do they get loans? Do they get tax relief to support them while they are setting up these firms?

Meanwhile, some believe the DWP officers who force jobseekers to go self-employed get a commission for doing so – an extra payment on top of their salaries. Or is it a bounty, for taking one more name off the books?

Can anyone shed light on this? Do they get paid for creating, in effect, fake jobs?

Some of these new firms will succeed. Current statistics mean around 10-20 per cent of new small businesses last more than three years. But this means at least 80 per cent will go under.

Our commenter who mentioned the issue raised fears that funding will be withdrawn, right around the time of the 2015 general election.

Wouldn’t that be shocking – if Labour took office only to be faced with headlines that the new government was sending businesses to the wall and unemployment through the roof in its first year of government?

My commenter wondered if this was “another Tory elephant-trap for Labour”. Good question.

If so, it will be time to remind everyone that, since the Coalition came into office, 52,701 firms have been declared insolvent and 379,968 individuals.

Even with ‘help’ from the Coalition, it would take a lot of effort for Labour to equal that dismal record.