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UKIP uncovered: More hidden policies revealed (part one of a possible series)

13 Tuesday May 2014

Posted by Mike Sivier in Housing, Immigration

≈ 26 Comments

Tags

bank, Bank of England, Bristol Airport, economy, election, general, Gordon Brown, Green Belt, Green Party, house, housing, image, immigration, local, manifesto, meme, Mike Sivier, mikesivier, Nigel Farage, policies, policy, politics, regulation, The Yorker, UKIP, University of York, Vox Political


[Image: alecshelbrookeblog.com]

[Image: alecshelbrookeblog.com]

Yesterday’s article (UKIP: They don’t like it up ’em) delved into the facts behind a controversial meme that has been doing the rounds on the social media.

The image claims to be publicising UKIP policies, and seven out of the 10 policies claimed for the party have been verified, as demonstrated in the VP article.

Vox Political has been doing a little digging into the others.

The claim that UKIP wants to cancel all planned house-building on Green Belt land appears to have been based on the party’s 2010 general election and 2013 local election manifestos, which are no longer available to the public. Party members have stated many times, recently, that Nigel Farage has rubbished the 2010 document and its contents are not to be taken as UKIP policy. The party’s attitude to its manifesto from last year is less clear.

The relevant line, as quoted in this Property Newshound blog, is: “by controlling immigration, large areas of British countryside will not need to be destroyed by house building.” The rest of the article is well worth reading too.

UKIP’s South Buckinghamshire website discusses plans to build on the Green Belt, with a reply to a summary document by the Conservative Party:

“Conservatives say: ‘So we need to find places to build more homes…’ (page 2)

“UKIP reply: Not on green belt land!”

The strange thing is that preventing development of Green Belt land should not be a controversial issue, yet I have just – as I have been writing this blog – received a comment from a UKIP supporter stating: “Every bullet point [on the meme] is a fiction, written by a Green Party activist.”

Where does that leave UKIP policy? Does the party now want to build on Green Belt land, because the Green Party (apparently) opposes it?

Personally, I’m against that. My former home in Bristol was on the edge of the city, next to Green Belt land which became threatened by the South Western regional assembly (whatever it was called). Residents had a terrible time fighting off the proposed development, which seemed to be motivated solely by a desire to build a new road to Bristol Airport, enabling faster journeys from it to the city and back.

Building on the Green Belt – of any kind other than what is absolutely necessary for agricultural purposes – should be banned, in the opinion of this writer. It is land that has been set aside in the national interest, and proposals to develop it should be seen for what they are – money-grubbing by disinterested corporates who live in mansions on estates that will never be disturbed by such environmentally-damaging raids.

The claim that UKIP wants to cancel bank regulations “to make banks safer” was a commitment on the party’s policy website, according to this article in The Yorker (which is simply the first I found in a Google search). The Yorker is a student-run media site, based at the University of York, which claims no political affiliations at all.

It states: “According to their policy website UKIP… wants [to] further de-regulate the city… Indeed their primary reasons for leaving the EU relate to the need to cut such rights and regulations in the name of The City and big business.”

This would appear to be corroborated by Nigel Farage himself, who wrote in an Independent article in January this year: “And let’s look closer to home for where the fault lies with the banking crisis. I know it might still be trendy to “bash the bankers” but this crash was entirely predictable. It was Gordon Brown handing over regulation of the banking industry from the Bank of England who, since 1694 has done a pretty good job, and handed it over to the tick-box bureaucrats in Canary Wharf.”

It seems the case for UKIP wanting bank deregulation is also proven.

Unlike the Green Belt issue, bank deregulation would be a huge mistake for the UK. Farage is wrong in his claim that Gordon Brown was at fault for re-introducing regulation to the banking sector; it is the fact that he didn’t introduce enough regulation that let us down. The banks all told him that they were perfectly capable of policing themselves, and he took them at face value. Meanwhile the Conservatives, who have been blaming Labour for being too loose with regulation ever since they got back into office, despite doing nothing about the issue themselves, were calling for even less regulation at the time of the banking crash.

The UK requires more banking regulation, not less. Less regulation would encourage further abuses of the banking system and would inevitably lead to another disaster. This time the consequences could be appalling, for millions of low-paid British citizens. Farage does not clarify why he wants to court this.

More revelations may follow.

Follow me on Twitter: @MidWalesMike

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Labour must turn and fight now – or give up its electoral hopes altogether

24 Monday Mar 2014

Posted by Mike Sivier in Labour Party, Politics, UK

≈ 25 Comments

Tags

adviser, apathy, argument, backbencher, backhander, Bank of England, BBC, benefit, cap, carnage, Coalition, concede, Conservative, cut, Dan Hodges, David Miliband, deselect, difference, disabled, disillusion, Ed Balls, Ed Miliband, elect, frame, George Osborne, Gordon Brown, Guardian, hidden agenda, investment, John Mann, Labour, lobby, manifesto, Marxist, Mike Sivier, mikesivier, miniscule, Nazi, neoliberal, New Labour, Opposition, oxford, partnership, pensioner, perception, policies, policy, poor, PPE, public, Rachel Reeves, Red Tory, reference, senior citizen, sick, small, social security, special, spin, squeezed middle, surplus, Telegraph, thinktank, Tony Blair, Tories, Tory, trade, transatlantic, Tristram Hunt, TTIP, Vox Political, welfare, yvette cooper


Struggling to make an impact: Ed Miliband must reject the Tory Party's narrative about the need for austerity and bring forward a vision for the future that really does make us 'One Nation' again, rather than hanging on David Cameron's neoliberal coat-tails, as many former Labour voters believe.

Struggling to make an impact: Ed Miliband must reject the Tory Party’s narrative about the need for austerity and bring forward a vision for the future that really does make us ‘One Nation’ again, rather than hanging on David Cameron’s neoliberal coat-tails, as many former Labour voters believe.

The political debate is all about the Labour Party again today – as it has been since the Budget.

The newspapers and websites are full of advice for the party, which is now clearly seen to be struggling to gain any kind of a foothold with electors who have become disillusioned at what might best be called the Party of Very Little Opposition.

Labour “must adopt new principles” according to an alliance of thinktanks and party intellectuals who have written to The Guardian; Ed Miliband has been told “don’t play safe” with the party’s manifesto according to an article on the same paper’s site.

The BBC News site has words from left-wing MP John Mann, calling on his party leader to stop trying to be “too clever” and be “much clearer” in setting out his policies.

We can probably discount the Telegraph article by Dan Hodges, claiming that Labour is “closed for business”. It plays to right-wing readers’ prejudices just a little too much.

Will Ed pay any attention to these pleas? Evidence suggests he will not.

I should clarify from the outset that, as a Labour member, I want the Party to win in 2015 (and also to gain the lion’s share of the vote in May’s European elections).

But Miliband seems to be living in a world of his own, insulated from the rest of the Labour Party – not to mention supporters of Labour ideals who are not members – by a small group of (not-so-special) advisers who, it’s claimed, intercept any decent ideas before they get to the party leader and spin them until they turn to drivel. Whether this is true or not seems immaterial as this is the perception of the general public.

And perception is everything.

As I write this article I have just received a comment stating that “Miliband’s strategy for the next election seems to be a) to accept the Tory frame of reference for any given argument and b) to then concede the field of battle on that issue, whatever it is, without a shot being fired.” This is a common complaint, and Labour has no answer to it.

Why do Miliband, Balls, Tristram Hunt (notably), Rachel Reeves (lamentably) and all the other Labour frontbenchers blithely accept the Coalition’s terms of reference on any issue, against the wishes of their own backbenchers, their party as a whole and the public at large?

Are they really just a gang of greedy moneygrubbers, determined to screw the country for whatever they can get? That in itself would be a betrayal of Labour Party ideals and their constituency parties should deselect them if members believed that to be the case for one moment.

Are they a gang of neoliberals, their political philosophy so close to that of the Conservatives that you can’t get a credit card between them? This rings threateningly true in the cases of Oxford PPE graduats Ed Balls and Yvette Cooper, ex-Bank of England employee Rachel Reeves and Tristram Hunt. But Ed Miliband is (famously) the son of a Marxist. He, above all, should know better.

The trouble is, David Miliband is the son of the same Marxist and he was as much a part of the neoliberal New Labour Red Tory deception as Tony Blair and Gordon Brown.

Oh look – another comment has just arrived. “More people don’t bother to vote because they feel that we as a people have moved on and all we really want is people who will represent us honestly, by majority and with no hidden agendas, backhanders or lobbyists pulling the strings. I don’t see any evidence that the present government or the Labour Party are capable or willing to do just that… They should have the courage to change and become the voice of the people.”

Become the voice of the people. The meaning is clear – Labour is not currently representing anybody at all.

Is this true? Let’s look at some of the other comments on my (left-leaning, let’s not forget) blog. These are from people who are generally sympathetic to Socialism and who should, therefore, see Labour as the natural home of their vote. What do they say?

“[Is it] any wonder [that] 1. People don’t vote because they are seen as “all the bloody same”? and 2. The perceived differences have become so minuscule?”

“Until Labour wakes up and realises it is the welfare cuts that are a major concern to most of us and to anyone who has a conscience, they will lose the next election due to apathy.”

“Labour have to do something different to what they have up to now but they don’t seem to want to. Are they scared of being in government over a country in the state it is?”

“Labour have had four years to do something – anything – to fight against the welfare cuts, and to help the people they are supposed to be the party for! They’ve really done nothing when all is said and done.”

If Ed Miliband was reading this, I would be asking if he was getting the message yet (are you, Ed?) and what he proposes to do about it. You think not? Let’s have some more comments from people who should be supporting Labour – I’ve got plenty of them!

“There has been absolutely no fight in this opposition and I am ashamed of them.”

“People need a reason to apply their votes to Labour and Miliband-Balls are not providing them with one. They are sleepwalking into another hung Parliament and a very real risk of the Tories teaming up with UKIP. Then we’ll really see Nazism grip this country.”

“The would-be voters demand change and need bold new policies to blunt the Tory cutters. If the Labour Party cannot come up with policies which are radical then they don’t deserve to be in power at the next election, or ever.”

“Ed Balls worries me because he seems intent on copycatting Osborne. For example Osborne says he will run a surplus by the end of the next Parliament and Balls promises the same. Osborne say he will be introducing a Benefit Cap on social security spending on working age benefits (which could have devastating effects and lead to real terms cuts in benefits for years on end) and Balls says that Labour will vote with the Coalition to introduce it.”

“Surely we need some clear red water between Labour and the Tories? Surely Labour needs to differentiate itself more from the policies of the Coalition?”

“I sent an email to the Labour Party asking for its policy on TTIP (the rightly-feared Transatlantic Trade and Investment Partnership that will force employment standards down to third-world levels, or below), amongst other things. They were decidedly equivocal and I felt no reassurance at all. I think it’s about we faced facts, Labour aren’t being coy in a pre-election year to avoid frightening the horses, they really are just another pack of neoliberals.”

This is how left-wing voters (and the squeezed-middle waverers to whom Ed Miliband keeps trying to pander) see the modern Labour Party: Carbon-copy Tories with no fresh ideas who aren’t worth the effort of voting.

If any of Ed’s shadow cabinet is okay with that description, he needs to sack them and bring in someone with a clue. And he needed to do it last year.

If the Conservatives win in 2015, it seems clear that responsibility will lie as much with Labour’s failure to provide any clearly-visible alternative.

We have already seen carnage inflicted on the poor, the sick and disabled, and a Conservative-only government (or in collaboration withUKIP) would increase that bloodshed tenfold (senior citizens take note: the bribe you were given last week was a trick and if you vote Conservative, many of you will not live to rectify your error at another election).

Unless Ed Miliband sorts out his party – pronto – that blood will be on his hands as well, and the people will not forgive him.

Note that I did not say they won’t forgive Labour. I said they won’t forgive Ed Miliband.

Words cannot describe the way people feel at what has been done to them by the Coalition. If Labour reveals even the slightest element of complicity, I wouldn’t give a farthing for Miliband’s safety.

That goes for the rest of the shadow cabinet too.

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Peter Oborne is right to support the 50p tax rate

27 Monday Jan 2014

Posted by Mike Sivier in Benefits, Business, Conservative Party, Cost of living, Employment, People, Politics, Poverty, Tax, UK, unemployment

≈ 7 Comments

Tags

50 per cent, 50p, abuse, ambulance, assurance, banker, basic pay, benefit, bonus, checks and balances, claim, Coalition, compulsory, Conservative, corporate, corporation, Daily Telegraph, dependency, depress, dividend, Ed Balls, employer subsidy, George Osborne, Gordon Brown, government, housing benefit, incentive, job guarantee, jobseeker, Labour, Landlord Subsidy, living standard, living wage, low, Mike Sivier, mikesivier, minority interest, neoliberal, Peter Oborne, politics, poor, result, salary, sanction, shareholder, social security, super rich, target, tax credit, tax rate, taxpayer, top, Tories, Tory, underwriter, very rich, Vox Political, wage, Wales, welfare, welfare state, Welsh


140127oborne

… but wrong about many, many other matters.

The Torygraph‘s chief political commentator was right to come out as a supporter of Ed Balls’s pledge to raise the top tax rate back to 50p in the pound.

He was right to say it was “profoundly shaming and offensive” for Conservative voters – especially those who are not super-rich – when George Osborne lowered the top rate to 45p, two years ago.

He was right when he wrote that “to make the rich richer at the same time as making the poor poorer – what George Osborne has been doing – is simply squalid, immoral and disgusting.

“Any decent human being must surely feel sick in the stomach that he is taking this action at the same time as cutting the amount of tax paid by people earning more than £150,000.”

To that, let’s add a point about the kind of people who are benefiting from the lower tax rate – the kind of people who take home around £1 million a year in basic pay, who are promised bonuses of up to twice those yearly salaries, and who caused the financial crisis that has allowed Osborne to pursue his policy of impoverishing the poor.

That’s right: George Osborne’s 45p tax rate is a £100,000 extra bonus, every year – in gratitude for all their help, one must presume – for bankers.

Oborne is also right to say that Labour’s decision in the 1970s, to impose a top tax rate of 83p in the pound, was a huge mistake – for whatever reasons. It genuinely drove people out of the country, whereas at 50p they just grumble and threaten to go.

All of the above being said, Oborne continues to espouse some utterly wrong-headed nonsense. He claims that “the Conservative Party is not an interest group which represents only the very rich” when all of its actions since getting into office in 2010 demonstrate ample proof that a minority group representing only the very rich is exactly what it is.

Oborne actually puts in print: “The Coalition government has devoted a great deal of effort to lowering the living standards of the poor. I support this project.”

It’s great to see a Tory voter actually admitting this, but imbecilic behaviour for a columnist who (one presumes) wants people to respect his point of view.

He goes on: “I believe that Gordon Brown’s welfare state forced some people into a life of dependency… There have been many people on welfare who need much more of an incentive to return to work.”

Wrong, wrong, wrong.

The reason many people are without jobs and claiming benefit is, there are almost five jobseekers for every job. This is a situation created by the Tory-led government in order to keep wages low; with so many people clamouring for jobs, people who do have work but are on the bottom rung of the employment ladder can’t ask for a raise – they would be jettisoned and replaced by a jobseeker (most likely on lower basic pay than the original holder of the job).

Nobody was forced into a life of dependency by Gordon Brown; the vast majority of unemployed people genuinely want to improve their situation with a job that allows them to avoid claiming benefits – and it is good that the Labour Party, if returned to office next year, will work hard to bring the Living Wage into force for all working people.

You see, Mr Oborne and his ilk conveniently forget that the vast majority of people whose living standards have been hit by the Tory war on the poor are in work. They are so poorly-paid by George Osborne’s corporate friends that they have to claim tax credits – or, as I like to call them, Employer Subsidy – and housing benefit – otherwise known as Landlord Subsidy.

That’s improper use of our tax money. We should not be subsidising fat corporates with our hard-earned taxes, so they can deliver ever more swollen dividends to their shareholders; and we should not be subsidising greedy landlords who charge multiples of what their properties are worth to tenants who have nowhere else to go if they want to keep their pittance-paying job.

It is valid to criticise Gordon Brown for allowing this to happen, but who knows? Maybe this figurehead of neoliberal New Labour was using tax credits as a stop-gap, intending to persuade corporate bosses round to the Living Wage in good time. We’ll never know for sure.

There remains a strong argument that government schemes to get people into work should have checks and balances. As underwriters of these schemes, we taxpayers need assurances that the firms taking part will not abuse their position of power, using jobseekers until the government subsidy runs out and then ditching good workers for more of the unemployed in order to keep the cash coming. That is not a worthwhile use of our cash.

We also need assurances that participants won’t drop out, just because life on the dole is easier. I was the victim of several personal attacks last week when I came out in support of Labour’s compulsory job guarantee, because they hated its use of sanctions. I think those sanctions are necessary; there should be a penalty for dropping out without a good reason.

In a properly-run scheme, those sanctions should never be put into effect, though. That means that any government job scheme needs to be driven, not by targets but by results.

Look at the Welsh Ambulance Service. Targets imposed by the Welsh Government mean that ambulances are supposed to arrive at the scene of an emergency within eight minutes – even if they are 20 minutes’ fast drive away, on the wrong side of a busy city like Cardiff, when they get the call. This means the Welsh Ambulance Service faces constant attack for failure to meet targets.

But what kind of results does the service achieve? Are huge numbers of Welsh patients dying, or failing to receive timely treatment because an ambulance arrives a minute or so after its target time? No. There will, of course, be some such occasions but those will most likely be the result of many contributory factors.

So: Results-driven schemes will put people into jobs and improve the economy; there is no need to impoverish the poor; the very rich never deserved their tax cut; and Ed Balls is right to want to re-impose the 50p rate.

The Conservatives are wrong to attack poor people; there is no need to impose further cuts on social security as part of Osborne’s failed austerity policy; and these things show very clearly that the Tories are a minority-interest party supporting only the extremely rich.

In the end, I find myself agreeing with one more comment by Mr Oborne; Ed Balls really has “given ordinary, decent people a serious reason for voting Labour at the coming election”.

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Divisions in Coalition as MPs demand independent inquiry on poverty

14 Tuesday Jan 2014

Posted by Mike Sivier in Bedroom Tax, Benefits, Children, Cost of living, Democracy, Economy, Employment, European Union, Food Banks, Health, Housing, People, Politics, Poverty, Public services, Tax, UK, Workfare

≈ 60 Comments

Tags

absolute, allowance, austerity, authorities, authority, avoid, bank, bed, bedroom tax, benefit cap, breakfast, capital gains, Chancellor, child, children, Coalition, commission, Conservative, council tax, cut, Daily Mail, David Nuttal, David Taylor-Robinson, David TC Davies, debt, deficit, delay, Democrat, Department, dependency, destitute, domestic, DWP, eastern, economy, electricity, employment, ESA, EU, Europe, european union, evade, evasion, export, families, family, food bank, gas, George Osborne, Gordon Brown, growth, health, homeless, housing benefit, Iain Duncan Smith, immigration, income, industry, infrastructure, inquiry, interview, investment, Jacob Rees-Mogg, Jeremy LeFroy, job, Jobseekers, John Hemming, John Major, joseph rowntree foundation, JSA, Labour, Lib Dem, Liberal, local, malnutrition, Margaret Thatcher, Michael Meacher, minimum wage, mistake, payment, Pensions, poverty, public, Red Cross, regulation, retired, Ronnie Campbell, rule, sanction, Sir Peter Bottomley, social security, spending, Steve Rotheram, Sunday Times, support, tax, Tony Blair, Tories, Tory, Trussell Trust, utility, violence, welfare, work, Work Programme, Workfare, workless


130617childpoverty

Calls for a ‘commission of inquiry’ into the impact of the government’s changes to social security entitlements on poverty have won overwhelming support from Parliament.

The motion by Labour’s Michael Meacher was passed with a massive majority of 123 votes; only two people – David Nuttall and Jacob Rees-Mogg – voted against it.

The debate enjoyed cross-party support, having been secured by Mr Meacher with Sir Peter Bottomley (Conservative) and John Hemming (Liberal Democrat).

Introducing the motion, Mr Meacher said: “It is clear that something terrible is happening across the face of Britain. We are seeing the return of absolute poverty, which has not existed in this country since the Victorian age more than a century ago. Absolute poverty is when people do not have the money to pay for even their most basic needs.”

He said the evidence was all around:

  • There are at least 345 food banks and, according to the Trussell Trust, emergency food aid was given to 350,000 households for at least three days in the last year.
  • The Red Cross is setting up centres to help the destitute, just as it does in developing countries.
  • Even in prosperous areas like London, more than a quarter of the population is living in poverty.
  • According to the Joseph Rowntree Foundation, for the first time, the number of people in working families who are living in poverty, at 6.7 million, is greater than the number of people in workless and retired families who are living in poverty, at 6.3 million.
  • Child poverty will rise from 2.5 million to 3.2 million during this Parliament, around 24 per cent of children in the UK. By 2020, if the rise is not stopped, it will increase to four million – around 30 per cent of children in the UK.
  • The use of sanctions depriving people of all their benefits for several weeks at a time, had increased by 126 per cent since 2010 and 120 disabled people who had been receiving jobseeker’s allowance had been given a three-year fixed duration sanction in the previous year.
  • There are now more than 2,000 families who have been placed in emergency bed-and-breakfast accommodation after losing their homes.
  • The per cent rise in the overall homelessness figures last year included nearly 9,000 families with children, which is the equivalent of one family losing their home every 15 minutes.
  • A third of families spent less than £20 a week on food and that the average spend on food per person per day was precisely £2.10. That is a third less than those families were able to afford three months before that.
  • The proportion of households that had to make debt repayments of more than £40 a week had doubled and the average level of debt was £2,250.
  • A third of families had council tax debt.
  • 2.7 million people had lost out through the Government’s changes to council tax benefit – many of them disabled people, veterans and some of the most vulnerable in our communities.
  • Households were having to spend 16 per cent more on gas and electricity.
  • There are 2.5 million people who have been unemployed for the best part of two years, and there were 562,000 vacancies when the debate took place (Monday), so four out of five of those who are unemployed simply cannot get a job whatever they do.
  • Cuts to local authorities mean many home care visits are limited to 15 minutes.
  • The 10 per cent of local authorities that are the most deprived in the country face cuts six times higher than those faced by the 10 per cent that are the most affluent.
  • 60 per cent of benefit cuts fall on those who are in work.

Mr Meacher said the biggest cause of absolute poverty was the huge rise in sanctioning, often for trivial reasons such as turning up five minutes late for a job interview or the Work Programme:

  • A dyslexic person lost his Jobseekers Allowance because his condition meant that in one fortnightly period he applied for nine jobs, not 10. He was trying to pay his way and already had work, but it provided only an extremely low income.
  • The jobcentre didn’t record that a claimant had informed them that he was in hospital when he was due to attend an appointment and he was sanctioned.
  • A claimant went to a job interview instead of signing on at the jobcentre because the appointments clashed – and was sanctioned.
  • A claimant had to look after their mother who was severely disabled and very ill – and was sanctioned.
  • A Job Centre sent the letter informing a claimant of an interview to their previous address, despite having been told about the move. The claimant was sanctioned.
  • A claimant was refused a job because she was in a women’s refuge, fleeing domestic violence and in the process of relocating, but I was still sanctioned.

Mr Meacher also quoted what he called a classic: “I didn’t do enough to find work in between finding work and starting the job.”

The latest DWP figures suggest that more than one million people have been sanctioned in the past 15 months and deprived of all benefit and all income. “Given that the penalties are out of all proportion to the triviality of many of the infringements, and given that, as I have said, four out of five people cannot get a job whatever they do, the use of sanctioning on this scale, with the result of utter destitution, is — one struggles for words — brutalising and profoundly unjust,” said Mr Meacher.

Other reasons for the rise in absolute poverty included:

  • Delays in benefit payments.
  • The fact that it is impossible for many poor and vulnerable people to comply with new rules – for example a jobseeker who asked to downsize to a smaller flat who was told he must pay two weeks’ full rent upfront before getting housing benefit. He does not have the funds to do so and is stuck in a situation where his benefits will not cover his outgoings due to the Bedroom Tax.
  • The Bedroom Tax, which applies to around 667,000 households, and two-thirds of those affected are disabled. More than 90 per cent of those affected do not have smaller social housing to move into.
  • The Benefit Cap, imposed on a further 33,000 households.
  • Mistakes by the authorities; up to 40,000 working-age tenants in social housing may have been improperly subjected to the Bedroom Tax because of DWP error (although Iain Duncan Smith claims a maximum of 5,000).

Mr Meacher said: “The Chancellor’s policy of keeping 2.5 million people unemployed makes it impossible for them to find work, even if there were employers who would be willing to take them, and the 40 per cent success rate of appeals shows how unfair the whole process is.”

Responding to a comment from David TC Davies (Conservative) that those who are not looking for work must realise there will be consequences, particularly when a million people have been able to come to the UK from eastern Europe and find work, Mr Meacher said, “Those who come to this country are more likely to be employed and take out less in benefits than many of the indigenous population.”

He asked: “Is all this brutality towards the poor really necessary? Is there any justification in intensifying the misery, as the Chancellor clearly intends, by winding up the social fund and, particularly, by imposing another £25 billion of cuts in the next Parliament, half of that from working-age benefits?

“After £80 billion of public spending cuts, with about £23 billion of cuts in this Parliament so far, the deficit has been reduced only at a glacial pace, from £118 billion in 2011 to £115 billion in 2012 and £111 billion in 2013. Frankly, the Chancellor is like one of those first world war generals who urged his men forward, over the top, in order to recover 300 yards of bombed-out ground, but lost 20,000 men in the process. How can it be justified to carry on imposing abject and unnecessary destitution on such a huge scale when the benefits in terms of deficit reduction are so small as to be almost derisory?”

Suggested alternatives to the punitive austerity programme of cuts came thick and fast during the debate. Challenged to explain what Labour’s Front Bench meant by saying they would be tougher on welfare than the Tories, Mr Meacher said: “As the shadow Chancellor has made clear on many occasions, is that we need public investment. We need to get jobs and growth. That is the alternative way: public investment in jobs, industry, infrastructure and exports to grow the real economy, not the financial froth, because that would cut the deficit far faster than the Chancellor’s beloved austerity.”

He asked: “How about the ultra-rich — Britain’s 1,000 richest citizens — contributing just a bit? Their current remuneration — I am talking about a fraction of the top 1 per cent — is £86,000 a week, which is 185 times the average wage. They received a windfall of more than £2,000 a week from the five per cent cut in the higher rate of income tax, and their wealth was recently estimated by The Sunday Times at nearly half a trillion pounds. Let us remember that we are talking about 1,000 people. Their asset gains since the 2009 crash have been calculated by the same source at about £190 billion.

“These persons, loaded with the riches of Midas, might perhaps be prevailed upon to contribute a minute fraction of their wealth in an acute national emergency, when one-sixth of the workforce earns less than the living wage and when one million people who cannot get a job are being deprived of all income by sanctioning and thereby being left utterly destitute.

“Charging the ultra-rich’s asset gains since 2009 to capital gains tax would raise more than the £25 billion that the Chancellor purports to need. I submit that it would introduce some semblance of democracy and social justice in this country if the Chancellor paid attention to this debate and thought deeply about what he is doing to our country and its people.”

Ronnie Campbell (Blyth Valley, Lab) suggested that the Government might save a lot more if its members “showed the same energy and enthusiasm for getting those who evade their taxes and run to tax havens as they do for going after the poor, the sick and people on the dole”.

Against this, David TC Davies offered insults and distortions of the facts, quoting the Daily Mail as though it provided an accurate account of current events: “Members of the shadow Cabinet might need a boxing referee to sort out their disputes at the moment, as we read today in the Daily Mail.”

He said: “We took office with a deficit of £160 billion and a debt that was rising rapidly to £1 trillion. That was after years of overspending in good times, as well as in bad, by Labour, a cheap money supply and lax banking regulation under the former Government.” Labour’s spending, up until the financial crisis, was always less than that of the previous Conservative administration; Gordon Brown and Tony Blair both ran a lower deficit than John Major and Margaret Thatcher, and at one point actually achieved a surplus, which is something that the Conservatives had not managed in the previous 18 years. While Mr Davies here complained about the “lax banking regulation”, Conservatives supported it at the time and in fact demanded more DE-regulation, which would have made the financial crisis worse when it happened.

“We had disastrous economic decisions, such as that to sell gold at a fraction of its real rate,” said Mr Davies. Yes – the UK lost around £9 billion. But compare that with the disastrous economic decision by George Osborne to impose more than £80 billion worth of cuts to achieve a £7 billion cut in the national deficit. The UK has lost £73 billion there, over a three-year period.

And Mr Davies said: “Worst of all and most seriously, we had a welfare system that allowed people to get into a trap of welfare dependency, leaving them on the dole for many years, but at the same time filling the consequent gap in employment by allowing mass and uncontrolled immigration into this country, which completely undercut British workers.” The first assertion is simply untrue; the second is a legacy of previous Conservative administrations that agreed to the free movement of EU member citizens, meaning that, when the eastern European countries joined in 2004, citizens migrated to the UK in the hope of a better life. Labour has admitted it should have negotiated for a delay in free movement until the economies of those countries had improved, making such migration less likely, but the situation was created before Labour took office.

Challenged on the Coalition’s record, Mr Davies fell back on the Tories’ current trick question, which is to counter any criticism by asking: “Is he suggesting that we are not doing enough to pay down the national debt? Is he suggesting that we should cut further and faster? If so, and if we had the support of other Opposition Members, that is exactly what the Government could do and, indeed, possibly should do. I look forward to seeing that support for getting the deficit down.” This disingenuous nonsense was batted away by Labour’s Hugh Bayley, who said “investing in the economy, creating jobs and thereby getting people off welfare and into work” was the way forward.

Mr Davies’ Conservative colleague Jeremy Lefroy took a different view, agreeing that increasing numbers of people are finding it impossible to make ends meet, and that job creation and apprenticeships were a better way out of poverty than changing the social security system alone. He agreed that sanctions were applied to his constituents “in a rather arbitrary manner”. He spoke against George Osborne’s suggested plan to remove housing benefits from people aged under 25, saying this “would have a drastic impact on young people who need to live away from home and who have no support from their families”. He spoke in favour of councils increasing their housing stock. And he admitted that disabled people faced severe problems when unfairly transferred from ESA to JSA: “A lady in my constituency says, ‘I am simply not fit for work, but by signing on for JSA I have to say that I am available and fit for work.’ She does not want to tell a lie.”

Steve Rotheram (Liverpool Walton, Labour) spoke powerfully about the effect of being on benefits: “Lots of people in my city are on benefits for the very first time. Far from being in clover — it beggars belief what we read in the right-wing press — they are struggling to make ends meet, and the problem that thousands of Liverpudlians are facing is new to them. For many, the idea that they might miss a rent payment is totally alien. They have not done that in the past 20 years, but since May 2010, their individual household incomes have been on such a downward trajectory that they now find themselves in rent arrears, seeking advice on debt management and unable to afford the daily cost of travel, food and energy. Figures suggest that 40 per cent of the adult population in Liverpool are struggling with serious debt problems.”

And he said poverty had health implications, too: “David Taylor-Robinson of the University of Liverpool and his fellow academics have highlighted the doubling of malnutrition-related hospital admissions nationally since 2008.”

John Hemming (Birmingham Yardley, LD) raised concerns about “the interrelationship between the welfare cap and victims of domestic violence, and whether there are situations that need more attention. I believe that people can get discretionary housing payment to leave a violent home, but it is important that we ensure that there is a route out of domestic violence for women. I am worried about that issue, just as I am about some wrongful sanctioning that I have seen. That does not help at all, because it undermines the whole process.” He also called for “a substantial increase in the minimum wage, because as the economy is improving the Government should look at that, rather than maintain things as they are”.

The vote gave huge endorsement to the call for an independent inquiry into poverty under the Coalition.

But with an election just 15 months away, how long will we have to wait for it to report?

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Who is the fool who chose Grant Shapps to question BBC trustworthiness?

27 Sunday Oct 2013

Posted by Mike Sivier in Business, Conservative Party, Corruption, Media, Politics, Public services, Television, UK

≈ 19 Comments

Tags

BBC, bias, chairman, Chuck Champion, Conservative, David Cameron, Ed Miliband, education, executive, fair, Freedom of Information, Gordon Brown, Grant Shapps, Howtocorp, Jeremy Hunt, Jimmy Savile, licence fee, Martin Rowson, Michael Gove, Michael Green, Mike Sivier, mikesivier, national audit office, NHS, payout, politics, report, right-wing, Sebastian Fox, share, Stuart Hall, Tories, Tory, trust, trustworthiness, trustworthy, Vox Political


Shapps v BBC: Take a look at the name on his tag and ask yourself who you think is more trustworthy.

Shapps v BBC: Take a look at the name on his tag and ask yourself who you think is more trustworthy.

Sometimes you have to wonder if the Conservatives are just having a laugh. Admittedly, the jokes would be sick, but it seems the only logical explanation for some of their decisions.

Take the latest attack on the BBC. A Conservative spokesman has said the Corporation should face a cut in its licence fee or be forced to share it with other broadcasters unless it rebuilds public trust after receiving bad publicity over payouts to top executives and the way it handled the Jimmy Savile scandal.

Unfortunately, the spokesman himself is Tory Chairman Grant Shapps, a man who has his own issues in the same area and who is known to have used at least two false identities for shady reasons.

As ‘Michael Green’, in the run-up to the 2005 election and afterwards, he “charged clients £183 an hour for advice on how to make money from the web as well as offering tips on how to beat the recession blues, including splashing out on a jet-ski or learning to play the guitar,” according to the Daily Mail. Apparently he said his use of the name was to keep his business interests separate from his future political work, but he ended his involvement with that business in 2009, four years after he entered Parliament.

‘Sebastian Fox’ was another alias he used on Howtocorp, the web publishing company he created in 2000.

The two aliases were enough for people to make a connection with ‘Chuck Champion’ of a website called Howtopickupwomennow – but the evidence suggests it is unlikely that this is yet another pseudonym. Besides, the two we already had were enough to make the point that the BBC has no need to accept lectures about trust from Grant Shapps.

Of the BBC (and on the BBC News website) Mr Shapps/Green/Fox said: “They have ended up working in this culture which is buried in the last century, which is ‘we are the BBC, we do what we like, we don’t have to be too accountable’.

“But they are raising £3.6bn through the licence fee, which is a tax, and, quite rightly, the public wants to have sight of how the money is spent. Things like the pay-offs have really caused concern, as have, obviously, things like Savile and [Stuart] Hall [currently in prison for sex offences against young girls) and the culture that goes around that. I think it is one of too much secrecy,” said the man who hid his own business affairs behind false names for the first four years of his Parliamentary career.

Shapps said the BBC should open its books to inspection by the National Audit Office, and open itself up to Freedom of Information requests. He added that there was a “question of credibility” for the BBC over whether it applied “fairness” to its reporting of politics.

How interesting that last point is.

Regarding the bulk of the Shapps complaints, the BBC was quick to point out that the NAO already has full access to the BBC, except for its editorial decisions, and that in 2012 the Corporation responded to more than 1,600 FoI requests and volunteered information on hundreds more subjects.

Then we come to that interesting last point. The BBC spokesman said: “Mr Shapps is right that transparency is key to the future of the BBC. So is its freedom from political pressure.” (Italics mine)

It seems bizarre that the chairman of the Conservative Party should be complaining about the fairness of BBC political reporting. He can only be doing this to imply that the BBC is biased against the Conservatives – but we know that this has already been investigated and the opposite was found to be true.

As reported by this blog in August: “The BBC has a broadly right-wing bias. The study showed that the government of the day generally gets more airtime than anyone else (natural considering it is making policy and actually carrying out the business of government) but in reporting of immigration, the EU and religion, in 2007 Gordon Brown’s appearances on the BBC outnumbered David Cameron’s by less than two to one, while in 2012, Cameron’s outnumbered Ed Miliband’s by around four to one. The same ratios occurred for other prominent members of each party. When reporting of all topics is taken into account, Conservative politicians were featured more than 50 per cent more often than those from Labour in both 2007 AND 2012.”

So now the real motive behind the Shapps attack becomes clear. He wants to coerce the BBC into an even more slavish adherence to the Conservative Party line than it has already, with the threat of losing its monopoly of the licence fee hanging over it.

And he wants to get the public on-side by pushing the discredited claim that the BBC is a den of Lefties.

You’ll have noticed, Dear Reader, that Shapps has not referred directly to any individual news stories. Are we to take it that he opposes the BBC’s failure to report the anti-Tory demonstration outside the Conservative Party conference on September 29? More than three times as many people turned up for that (50,000) as there were delegates in the conference, if I recall correctly.

The Shapps intervention has already received the lack of respect it deserves on the social media. “I see Grant Shapps now loudly slagging off the BBC so we’re all diverted from Hunt’n’Gove systematically destroying the NHS and Education,” Tweeted one member of the Great British public. See recent Vox Political articles for the facts behind those words.

And cartoonist Martin Rowson put the whole affair in context: “Does everyone know that unbelievably fatuous poltroon @grantshapps is Cousin of Mick Jones of The Clash? Weird, huh? Though not as weird as this meretricious delusional oaf thinking anyone ever takes anything he’s ever said ever more seriously than a pool of puppy sick.”

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

13 Sunday Oct 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Cost of living, Economy, Employment, Health, Labour Party, Law, Liberal Democrats, People, Politics, Poverty, Tax, UK, unemployment

≈ 35 Comments

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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.

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.

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Why listen to naysayers when Labour has so many reasons to be cheerful?

26 Monday Aug 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Corruption, Disability, Economy, Employment, European Union, Health, Housing, Immigration, Justice, Labour Party, Law, Liberal Democrats, Media, People, Politics, Poverty, Public services, Television, UK, unemployment

≈ 22 Comments

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A strong hand: Ed Miliband has plenty of ammunition with which to hammer the Conservative-led Coalition this autumn - but using it would mean a break from his recent policy direction. Does he have the stomach for it or will he continue to ignore the majority of Labour supporters and favour an inner circle of advisers who have, so far, served him poorly?

A strong hand: Ed Miliband has plenty of ammunition with which to hammer the Conservative-led Coalition this autumn – but using it would mean a break from his recent policy direction. Does he have the stomach for it or will he continue to ignore the majority of Labour supporters and favour an inner circle of advisers who have, so far, served him poorly?

Vox Political reblogged a post on the Skwawkbox blog yesterday, identifying a commonplace tactic used by members and supporters of the Coalition government.

It works like this: You make an assertion in the media that will harm your opponents, even though you have no evidence to back it up. You argue your case vehemently, refusing to accept any alternatives to what you are saying. And when the evidence comes in and it’s against you, you say it is a stitch-up and continue claiming both the moral and factual victory.

This is what the Conservative Party has been doing, loudly and continually. Look at its record on the NHS and on social security reforms and you’ll see that this assertion is supported by fact. Now, more factual evidence has arrived to undermine other Tory claims.

In spite of this, the Labour Party presents the appearance of an organisation torn by inner disagreement, after several high-profile figures broke ranks to criticise the leadership for failing to go on the attack during the summer, when the Conservative-led Coalition was vulnerable on any number of levels.

The BBC ran a story in which Labour’s Tessa Jowell warned that public criticism of Labour leader Ed Miliband by party colleagues creates an “unappealing sense of toxic disunity”.

We’ll come back to the BBC shortly, but for now it is enough to say the story quoted an article by Dame Tessa in the Observer, claiming that “disloyalty” of this kind risked handing the next election to the Tories.

She wrote: “There is… nothing constructive in publicly delivering ‘helpful advice’ that could be much better delivered quietly in private,” but for all we know, Mr Miliband’s critics had already done this, only for him to turn a deaf ear.

She is wrong, of course. Those people spoke up because they believed that their leader has been ignoring the mountain of evidence piling up against the Coalition – evidence that he could use to pummel David Cameron and Nick Clegg into the dust long before the next election; that Mr Miliband is unaccountably trying to avoid criticism from the likes of the Daily Mail and the Daily Express, in an attempt to court the right-wing readership of those papers; and that he would get more respect from those people – and win back disenchanted Labour voters – if he acknowledged and supported the evidence against the Coalition’s policies and set out opposing plans that mapped out a different course for the UK, one that might actually have a chance of success.

There are so many ways to strike against the web of so-called ‘myths’ (in fact outright lies) spread by the Conservatives since they came into office with the Liberal Democrats that it is hard to know where to start.

Let’s begin with the report by the international doctors’ organisation Medecins Du Monde (Doctors of the World), stating very clearly that the claim, by Health Secretary Jeremy Hunt, that health tourism is rife in the UK, is nonsense.

In a policy briefing, the organisation stated: “Seven years of data… shows that service users had, on average, been living in the UK for three years before they tried to access healthcare. Only 1.6 per cent of people using the service had left their country of origin for personal health reasons.”

Concentrating on one particular illness, “Research carried out by Terrence Higgins Trust and George House Trust found that people living with HIV using their services had been resident in England for between 12-18 months before testing positive for HIV. If access to HIV drugs had been their motivation for coming to England, they would have been unlikely to wait so long to become eligible for life-saving treatments.”

Therefore, “Research by Doctors of the World’s European network indicates no correlation between accessibility of healthcare to migrants and migration patterns.”

The government has made health tourism a major part of its anti-immigration campaign, claiming that it costs the taxpayer a fortune, but even this was rubbished by the professionals: “Current estimates vary greatly, although last year the NHS estimates it spent £33 million treating foreign nationals and wrote off £12 million of this sum. This represents about 0.01 per cent of the £107 billion NHS budget. These sums are considerably less than the net contribution made to the UK by migrants of 1.02 per cent of GDP, or £16.3 billion, according to the OECD.”

Just 0.01 per cent of the NHS budget is lost treating foreign nationals who do not pay – even less than the 0.7 per cent of the social security budget that is lost to fraud, according to DWP figures. But the government talks up these comparatively tiny amounts as though they will topple us all into bankruptcy (impossible).

One might almost believe there was an intention to distract us from something else. Remember, the Conservatives are well-practised at ‘bait-and-switch’ fraud, as mentioned in an earlier article. Perhaps they don’t want us examining their lackadaisical attempts at pretending to counter corporate tax avoidance that costs up to £120 billion per year? Or maybe they don’t want us thinking about what could have been done to restore respectability to our bankers after the financial crisis they caused.

Meanwhile, Tory claims that the Bedroom Tax – I said the BEDROOM TAX – would cut the Housing Benefit bill by £480 million have been destroyed after Labour MP Karen Buck retrieved figures from the House of Commons library, showing that the cost will in fact increase by £1.5 billion this year – and still further over the next three years.

The Mirror reported that this is because more than 40,000 more people have claimed HB since this time last year, with the biggest pressure coming from working people who need help with housing costs because their wages no longer cover them, especially since private landlords have increased rents by an inflation-busting three per cent over the last 12 months.

Meanwhile, councils have been forced to rehouse victims of the Bedroom Tax from cheaper social housing into more expensive private rented properties, creating more unwanted extra costs.

It was previously reported that larger social housing is going empty because people do not want to move in and then fall foul of the Bedroom Tax. I can’t currently find the reference for that, but if anyone can help out, please send in a comment with the link.

The SPeye blog has filed an alternative take on Housing Benefit, which claims that the current amount paid by the taxpayer on HB, at £23.77 billion, is £5.77 billion more than George Osborne predicted in 2010 when he said his changes to HB meant it would be “controlled and reduced” from £20 billion in that financial year to £18 billion by 2014-15.

This blog is highly critical of Labour’s reasoning, as reported in the Mirror story, but then comes up with an even greater loss to the taxpayer, caused by the Conservatives’ changes.

Back to the NHS now, where the Coalition government has spent £1.4 billion on redundancy payoffs, rather than care, since it came to power. This can be added to more than £3 billion that was spent on the pointless and unnecessary top-down reorganisation that David Cameron promised, prior to the 2010 election, would not take place.

The government has claimed that the redundancies will save £1.5 billion per year, which will be reinvested in patient care – but this will only bring annual spending back up to just above where it was when Labour left office, as it was revealed at the end of 2012 that annual spending on the NHS has dropped by nearly £1 billion. The government has stated that spending will have increased by £12.7 billion by 2014-15 which, in financial terms, is next year.

The Coalition lied when it said changes to the planning system would protect the Green Belt. This land, “intended to provide countryside access for urban dwellers and ensure conservation of nature, as well as maintaining agriculture and forestry” according to a BBC website article, is being eroded away with the help of new rules introduced by the Coalition, with planning applications on Green Belt land in England almost doubling from 81,000 homes in 2012 to 150,000 this year.

The government said protection was being maintained but the Council for the Protection of Rural England said the Green Belt was under threat. Who do you believe?

The announcement that the UK economy grew by 0.7 per cent, rather than 0.6, has been greeted rapturously by the Coalition, whose representatives have claimed that it shows the economy has moved “from rescue to recovery”. This is, of course, utterly ludicrous. There is no way an improvement of this kind – after years of economic flatlining thanks to Coalition policies – can be claimed as either evidence of a sustained recovery or evidence that Coalition policies are responsible for the improvement. The weakness of the upturn suggests the change brought on by conditions that would have arisen, whether the Coalition had tinkered with the economy or not.

Thankfully Michael Meacher has returned, after a brief holiday from blogging, to give us chapter and verse. “Today’s announcement by the ONS that its initial 0.6 per cent growth estimate for the second quarter of this year has now been upgraded to 0.7 per cent is insignificant when put into perspective against the recoveries of the five other UK recessions in the previous 100 years,” he writes.

“This time the economy still remains 3.3 per cent below its pre-crash level in 2008, while at the same stage of cycle (ie five years on from the crash) it was nearly FIVE per cent above the pre-crash level in the early 1980s, SIX per cent above pre-crash in the 1920s, SIX per cent above pre-crash again in the early 1930s, SEVEN per cent above pre-crash in the early 1970s, and nearly 10 PER CENT above pre-crash in the 1990s.” (Caps and italics mine)

“Come on, at this stage 0.7 per cent is to be apologised for – both historically and in comparison with other other economies emerging from recession this time round – Britain still three per cent down, but France one per cent down, Germany two per cent up, the US four per cent up and Canada six per cent up.”

The above stories emerged over the past couple of days. Look back over the rest of August and we have:

  • The revelation that the upcoming Lobbying Bill will do nothing to prevent professional lobbyists from influencing Parliament unduly, but will attack your right to campaign politically in “an outrageous attack on freedom of speech”.
  • The revelation that a ‘top ten’ list of benefit fraudsters, reported by right-wing newspapers, does not exist.
  • Information that the government may be corruptly supporting fracking because several of its members have stakes in fracking firms.
  • Home Office vans stirring up racism in London.
  • Conservative plans to abolish the human rights of everybody in the UK, in order to inflict a dangerous and exploitative regime on working people that will amount to slavery.
  • The revelation that recent attacks on the NHS for causing needless deaths have been blown out of proportion in order to make public opinion more receptive to further privatisation.
  • The revelation that the DWP is spending £1.3 million on extra staff who have been calculating the government’s flagship benefits cap – perhaps its only popular policy – because the computer system needed to do the job has not yet been built. Ministers had no intention of admitting this and the information only became public after it was discovered by somebody else.
  • And then there’s the fact that the fundamental claim of the Coalition government – that the financial crisis of five years ago happened because Labour overspent massively and mishandled the economy – was absolute and total groundless fabrication. Labour in fact handled the economy responsibly, even when the financial crisis hit.

That has to total more than 10 ways in which Labour could undermine the Coalition. All Mr Miliband has to do is open his mouth and tell people about them in ways that will be reported by the media.

And on that subject: If and when he does, and it is reported by the BBC, we can all be certain that right-wing commentators will claim that this is because the BBC is full of pinko left-wingers who support Labour. Let’s put that myth to rest as well.

A lecturer at Cardiff University has checked the facts and found that the BBC has a broadly right-wing bias. The study showed that the government of the day generally gets more airtime than anyone else (natural considering it is making policy and actually carrying out the business of government) but in reporting of immigration, the EU and religion, in 2007 Gordon Brown’s appearances on the BBC outnumbered David Cameron’s by less than two to one, while in 2012, Cameron’s outnumbered Ed Miliband’s by around four to one. The same ratios occurred for other prominent members of each party. When reporting of all topics is taken into account, Conservative politicians were featured more than 50 per cent more often than those from Labour in both 2007 AND 2012.

Going into the autumn Parliamentary session, Ed Miliband has a strong hand to play – if he has the stomach for it. And if any of the media try to suppress his arguments, he can just point to the evidence of right-wing bias and tell them they need to clean up their act just as much as the Coalition.

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Gauke’s attack should be a rallying cry for Labour

06 Tuesday Aug 2013

Posted by Mike Sivier in Conservative Party, Economy, Labour Party, People, Politics, Poverty, UK

≈ 13 Comments

Tags

alistair darling, attack, austerity, BBC, blacklist, Coalition, Conservative, cuts, David Cameron, David Gauke, Democrat, economy, Ed Balls, Ed Miliband, fall, George Osborne, Geraint Davies, Gordon Brown, Jack Lew, Labour, Liberal, lie, Matthew Hancock, mess, Michael Meacher, Mike Sivier, mikesivier, myth, never had it so bad, observer, Oxford Journal of Economic Policy, pay cut, spending, tax avoidance, The Independent, Tories, Tory, Treasury Secretary, Vox Political, wages, whistleblower, William Keegan, zero hours


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.

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?

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Iain Duncan Smith’s most shocking statistical lie yet: Child poverty

17 Monday Jun 2013

Posted by Mike Sivier in Benefits, Conservative Party, Economy, People, Politics, Poverty, UK, unemployment

≈ 18 Comments

Tags

average, Barnardo's, benefit, benefit cap, benefits, child, Child Poverty Act, Coalition, congress, Conservative, Department, Department for Work and Pensions, DWP, economy, families, family, Gingerbread, Gordon Brown, government, Huffington Post, Iain Duncan Smith, income, Jobseeker's Allowance, JSA, Metro, Mike Sivier, mikesivier, Oxfam, Parliament, Pensions, people, politics, poverty, social security, Tories, Tory, trade, TUC, unemployment, union, Vox Political, wage, welfare, work, workless


Still poor despite the statistics: IDS and his DWP spin-doctors need to get something clear - children haven't stopped becoming poor, just because of a skewed set of statistics. Incomes have dropped - meaning MORE children are in poverty than before.

Still poor despite the statistics: IDS and his DWP spin-doctors need to get something clear – children haven’t stopped becoming poor, just because of a skewed set of statistics. Incomes have dropped – meaning MORE children are in poverty than before.

According to a TUC report, average wages have dropped by 7.5 per cent since the Coalition came into office. This has a direct impact on child poverty statistics, which the government has conveniently ignored in its latest, Iain Duncan Smith-endorsed, child poverty figures.

Child poverty is calculated in relation to median incomes – the average income earned by people in the UK. If incomes drop, so does the number of children deemed to be in poverty, even though – in fact – more families are struggling to make ends meet with less money to do so.

This is why the Department for Work and Pensions has been able to trumpet an announcement that child poverty in workless families has dropped, even though we can all see that this is nonsense. As average incomes drop, the amount received by workless families – taken as an average of what’s left – appears to rise, even though, as we know, the increase is not even keeping up with inflation any more.

The problem lies in proving it.

Let’s do a rough calculation. In 2007-8, Jobseekers’ Allowance for a couple with at least one person over 18 was £92.80 per week (£4,839 per year). It is now £111.45 per week (5,811 per year) – an increase of 20 per cent in real money (not inflation-adjusted). In the same period, average earnings for those in employment rose from £26,020 per year (according to the Office for National Statistics’ Annual Survey of Hours and Earnings (ASHE)) to £26,500 – the figure we all know from the government’s calculation of its benefit cap). That’s an increase of just 1.8 per cent.

This doesn’t mean unemployed people are receiving too much – it means wages are being pushed down, as the TUC report shows. They are only ‘scratch’ figures – accurate data was impossible to find on the Internet this morning – but they show that JSA as a percentage of average wages has risen from 18.6 per cent to 21.9 per cent (roughly).

So workless income has risen in relation to the national average, meaning that child poverty in this sector appears to have dropped.

Alternatively, you could just use your common sense: People on benefit are not well-off, especially under a Conservative or Tory-led government.

The government’s figures don’t take 2007-8 – the year incomes began to drop – as their baseline figure. “To keep the absolute measure more in line with contemporary living standards” they use 2010-11 as the baseline. Incomes had already begun to drop by then, meaning the figures are misleading. In fairness, the press release does state that “you cannot compare this year’s published figure with last year’s” because of that change.

What this means is that the DWP’s press release about child poverty is utterly worthless. Let’s look at it anyway. It says:

“New annual poverty statistics (households below average income) out today, show how the number of children in workless poor families has reduced by 100,000 children over the past year (a two percentage point reduction).” While correct within its frame of reference, in comparison with previous income averages, this must be wrong.

“The statistics for relative poverty – the most commonly used poverty line – also show that the most vulnerable groups have been protected as pensioner poverty fell by 100,000, disability poverty by 100,000 and child poverty stayed the same.” Wrong.

“The number of children in absolute child poverty has increased by 300,000.” Wrong.

“Work remains the best route out poverty – these statistics show how children in workless households are around three times more likely to be in poverty than those in working families.” Absolutely wrong!

How can the last claim be correct? If the number of children in workless poor families has dropped by 100,000 but the total in poverty has risen by 300,000, that’s an extra 400,000 children belonging to working families who have fallen into poverty – by this government’s own figures!

Out comes Iain Duncan Smith with his latest lie: “We have successfully protected the poorest from falling behind and seen a reduction of 100,000 children in workless poor families.” Shockingly wrong!

Let’s get some sanity from the Huffington Post and Metro: “Some 2.3 million children were recorded as living in relative poverty between 2011 and 2012, in official government statistics,” the HuffPost reported. Interestingly, this compares with a Metro report claiming 3.8 million were in ‘absolute’ poverty (which is a statistical measurement, not a statement about how poor they actually are). Metro goes on to say this means more than one in six children are in relative poverty.

“Two out of three children living in poverty, 66 per cent, are now from working families. This has risen from 43 per cent in 1996-1997 and and amounts to 1.5 million children, according to analysis of the figures by the Resolution Foundation,” says the HuffPost.

“The proportion of children in poverty from working families has risen sharply since the start of the financial crisis in 2008.” In other words, Iain Duncan Smith and the DWP have lied again.

“Poverty is calculated by households living with less than 60 per cent of median average disposable income, compiled by the Department for Work and Pensions. But statistics have been skewed because of the fall in wages. If the number was calculated using average household income from the previous year, the number of children in poverty rises by 300,000.” This confirms the argument I am putting forward.

Oxfam and Barnardo’s have both criticised the government over the figures.

And Fiona Weir, chief executive of single-parent charity Gingerbread, said in the HuffPost: “Government claims that work is the best route out of poverty are simply not ringing true.”

The Government has a legal responsibility, under the Child Poverty Act of 2010 (passed by Gordon Brown’s Labour government), to reduce relative child poverty to below 10 per cent by 2020.

While Iain Duncan Smith has expressed frustration with the current method of defining poverty, it seems his government is determined to achieve that target by reducing incomes so much that nobody will be in ‘relative’ poverty…

… but across the nation’s working people, real poverty will be absolute.

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Reasons to be fearful for a warm Summer’s day

09 Sunday Jun 2013

Posted by Mike Sivier in Benefits, Business, Conservative Party, Disability, Economy, Health, Housing, Justice, Labour Party, Law, People, Politics, Public services, UK, unemployment

≈ 21 Comments

Tags

A&E, accident, Any Questions, bank, BBC, bed, bedroom tax, benefit, benefits, breakfast, CAB, Chris Grayling, Citizens Advice Bureau, climate change, Coalition, committee, Conservative, council, crisis, cut, debt, deficit, economic, economy, Ed Miliband, Eddie Stobart, emergency, energy, environment, food, Gordon Brown, government, Guardian, health, housing, Iain Duncan Smith, Jeremy Hunt, John Finnemore, Justice, Labour, legal aid, Machynlleth, Mark Prisk, Mike Sivier, mikesivier, NHS, Owen Paterson, Parliament, Patrick Mercer, people, Peter Hain, politics, regulation, rural affairs, scandal, social security, speech, tax, Tesco, The Now Show, Tim Yeo. lobbying, Tories, Tory, unemployment, Vox Political, welfare


Hero of the week: Peter Hain put the record straight about the cause of the UK's current economic woes (bankers) and the Conservatives' attitude to bank regulation (they wanted less of it before the crash). At long last, the facts came out on a national media outlet!

Hero of the week: Peter Hain put the record straight about the cause of the UK’s current economic woes (bankers) and the Conservatives’ attitude to bank regulation (they wanted less of it before the crash). At long last, the facts came out on a national media outlet!

There are a lot of potential topics for discussion but yr obdt srvt (that’s me) is very short of time on this sunny Sunday, so today’s article is going to have to be a quick run through of Things You Need to Know.

First up, following yesterday’s feature on how the Tories are blaming the civil service for the problems they have been creating, here are a couple more examples: The Guardian tells us that housing ministers are ordering councils to help families stay in their homes, rather than re-housing them in expensive bed & breakfasts for longer than the maximum period. Apparently this breaks the law. Minister Mark Prisk said he had created a £2 million fund to help councils currently breaking the rules.

Nice one. Shame it won’t scratch the surface of the £2 billion that has been spent by UK councils on temp accommodation since 2009 – that’s an average of £500 million per year; 250 times the puny amount Mr Prisk is offering, to alleviate problems his government has created with (for example) the Bedroom Tax.

Meanwhile, The Telegraph tells us that Jeremy Hunt has ordered the NHS to find a solution to the crisis in Accident & Emergency departments – that he and other Tory ministers have created – by next April.

These are further examples of the current Conservative ‘Create a Crisis and Blame Someone Else’ strategy we saw outlined in yesterday’s Vox Political article.

The BBC and many others have reported that Tim Yeo has joined the growing ranks of Tory MPs involved in ‘lobbying’ scandals, alongside Patrick Mercer from last week. Unlike Mercer, the allegation does not involve taking money to raise an issue (paid advocacy) – instead it is alleged that he coached an organisation, telling representatives what to say to the Commons’ Energy and Climate Change committee. It’s still corruption, and it’s staggering that these people are being allowed to continue as MPs while investigations go on, and possibly even afterwards, if they are found guilty. Should we really have people who have been proven to be dishonest, helping to make decisions on the future of our country?

Should we, Mr Cameron? Mr Shapps? Mr… Smith? Mr Hunt?

As some of us predicted long ago, Iain (Duncan) Smith’s benefit cuts (you mustn’t call them ‘reforms’ – that only encourages him) have led to a 40 per cent rise in the number of people seeking help from the Citizens Advice Bureau.

It’s just a shame that funding for the CAB (much of it from the government or statutory authorities) is declining, isn’t it? It’s almost as if somebody planned it that way, to make it even harder for poor people to get any justice. (I write as the vice-chair of a Welsh CAB so, believe me, I know my facts).

On the subject of justice, did anyone hear John Finnemore on The Now Show, laying into inJustice Secretary Chris Grayling’s ‘reform’ (there’s that word again) of the Legal Aid system that will make it impossible for anyone in that system to get justice, unless – you guessed it – they’re rich.

“Legal Aid will have a financial eligibility threshold. To be fair, this doesn’t seem like the worst idea in the world,” he said. “And I can be confident about that, because right there next to it – as if deliberately placed there for purposes of comparison – are two of the worst ideas in the world.

“One – defendants will no longer have the right to choose their own lawyer; two – legal aid contracts will be awarded on the basis of price-competitive tender, i.e. who’s cheapest, to private companies – like Tesco and Eddie Stobart. You know, the lorry guy.

“You might almost wonder whether this might affect the quality of the representation in some way but Chris Grayling, Minister of Justice and dispenser of none, assures us it will not… Even though everywhere else, the government is obsessed with getting us to choose… when it comes to poor people who’ve been arrested, suddenly Daddy knows best.

“The bargain-basement Eddie Stobart Legal Aid lawyers will be paid a flat fee, regardless of results and, best of all, regardless of whether the client pleads guilty – which is quick and cheap – or not guilty, which is not. Yes, Chris Grayling has actually created a system where privately-run Legal Aid firms have a direct financial incentive to persuade their clients to plead guilty, while simultaneously being under enormous pressure to slash costs to the bone in order to put in a tender low enough to keep the contract.

“Meanwhile, the career crims… tend to trust their regular solicitor and take their advice if they suggest they’d be better-off pleading guilty, but they’re certainly not going to take that advice from Eddie McTesco in his ‘My First Lawyer’ costume. So they’re going to start pleading not guilty to everything.

“Well done, Mr Grayling, you’ve pulled off the double – innocent people encouraged to plead guilty; guilty people to plead not guilty. What a merry, madcap world of misrule you have created, Mr Grayling, you absolute tit!”

Finally, still on the radio, did everyone hear Peter Hain on Any Questions, putting the record straight on the reasons for the economic crisis and the facts about bank regulation – two subjects about which the Conservatives have been hugely vocal in their lies for many years.

He was talking about the announcements last week by Labour’s leaders, on their future plans for welfare. He’s critical (which is a relief), but he said it would not be right to make promises about things that Labour can’t deliver.

“We can’t deliver because this economic policy of the Tory-Lib Dem government is failing on a spectacular scale,” he said. “They’re doing all these things, all these cuts, in order to bring borrowing down, the deficit down, debt down.

“What’s happening? Borrowing is £245 billion higher than they said it would be in 2010 when they began this cuts programme. The national debt is £309 billion higher – and the deficit is £78 billion higher.

“It’s because cutting and cutting and cutting is a way to putting people out of work, destroying businesses, they don’t pay taxes, you don’t get government revenues and everybody goes on benefit – that’s why this is a spectacular catastrophe and we’re going to have to rescue the country from that, and we’ve got to do it responsibly and honestly.”

Hear, hear.

Owen Paterson, the Secretary of State for Environment, Food and Rural Affairs, went on the attack with the usual rubbish about Labour overspending but didn’t get very far before Hain put him straight: “It was the banks that destroyed the economy, not the Labour government – it was the international banking system!”

Uproarious applause from the studio audience in Machynlleth (just up the road from me) where the broadcast was taking place. They – like most of the British population – had clearly been waiting years for someone to come out with that simple fact on a national media outlet: The banks caused the current economic situation, not Labour.

Let’s just repeat it: The banks caused the current economic situation, not Labour.

Anyone suggesting otherwise is just plain wrong.

Paterson riposted weakly, “Because Gordon Brown didn’t regulate them”. But Hain had his answer for that ready, as well.

“You wanted lighter regulation. Come on, remember – you wanted lighter regulation!”

And that was also true.

Paterson went further into idiocy by prattling about breaking the national credit card – the kind of stuff that we all now know is nonsense and that has been disproved irrefutably on this blog and in many other places – and about the private sector creating 1.25 million new jobs, which we know it hasn’t done, for example, because 200,000 were education jobs that the government redefined from public to private, probably in order to create another made-up statistic.

In other words, the Conservatives have no arguments for what they’re doing. No arguments about the economy. No arguments about the cuts they have been making.

I’ve met Peter Hain a couple of times, and I’ve had a few differences of opinion with him – but in this instance he was right on the button and far more effective in putting forward an argument for supporting Labour than anything Ed Miliband said in his “we’re supporting Tory policies because we think pretending to be Tories will win us votes” speech last week.

It was one of the worst speeches a Labour leader could have made, but if it prompts more Labour representatives, like Peter Hain, to stand up for the party and present a proper case for opposition to this hateful, incompetent, evil shower – the Coalition – then it might do some good in spite of itself.

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