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

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

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

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

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

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

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

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

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

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

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

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

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

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

He is still awaiting an answer, it seems.

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

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

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

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

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

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

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

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

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

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

Are you going to let that happen?

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The ugly face of New Labour rears up again: Chris Leslie and Nita Clarke

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It seems the neoliberal Blairites of New Labour are coming out of the woodwork in an effort to ensure that nobody in their right mind supports the modern Labour Party next year.

According to the Huffington Post, shadow chief secretary to the Treasury Chris Leslie reckons that a future Labour government will not undo the Coalition’s hugely unpopular cuts but will continue to impose the austerity that has kept our economy in crisis for the last four years.

In that case, why bother voting for Labour? We’ve already got one lot of Conservatives in power; there’s no need for any more.

Just to recap what we all know already, austerity is no way out of a recession. Economies grow when an increased money supply travels through the system, making profits for businesses and creating the fiscal multiplier effect. This means more tax comes to the government and it is able to pay down its debts. Austerity cuts off that money supply, making it much more difficult for money to circulated, profit to be made and tax to be taken. Evidence shows that the only people who profit from it are those who were rich already.

Indeed, the current economic miracle (if you believe George Osborne) was engineered by government investment – rather than austerity – in a housing price bubble. It’s almost a return to Keynesian economics, but done in a cack-handed, amateurish way that will cause more problems in the long run.

Austerity is, therefore, a Conservative policy and one that should be abandoned if Labour ever comes to power. The fact that this Leslie person is promoting it shows his true-Blue colours. Perhaps someone should start a petition to have him ejected from the party.

Retaining austerity was described by the HuffPost as part of “Labour’s ‘radical’ policy plans”, but this is ridiculous. How can retaining a policy that is already causing uncounted harm be, in any way, radical? It’s just more of the same neoliberal Conservatism.

“George Osborne has had his five years to eradicate the deficit. I am determined that we finish that task on which he has failed,” said Leslie in the article. How does he propose to achieve that aim, if his methods are the same? The man just isn’t making sense.

Meanwhile, a former Blair aide named Nita Clarke has defended another pillar of neoliberalism – privatisation – by making the absurd claim that Labour should not criticise private firms when they fail to deliver public services.

Speaking at a conference by the right-wing thinktank Progress, she said: “We have to be really careful that we’re not always seen as attacking the private sector and celebrating their failures. How do you think that makes the staff who work there feel?”

How does Nita Clarke think British citizens feel about being let down on a regular basis by these profit-guzzling clowns, ever since Margaret Thatcher’s Conservatives first started letting them into places where they did not belong?

How does Nita Clarke think British citizens felt when neoliberal New Labour refused to push back the tide of privatisation?

How does Nita Clarke think British citizens should feel about the fact that privatisation is now threatening the welfare state, the National Health Service and even state pensions?

Only today, Vox Political reblogged an article warning that HM Revenue and Customs may be undergoing preparations for privatisation.

Like austerity, privatisation is a fundamental pillar of the current neoliberal agenda. It has no place in the Labour Party, if the Labour Party is serious about opposing the Conservatives at the next election.

There should be no place in Labour for Chris Leslie, Nita Clarke, or anybody who supports their views, either.

It’s a view that might be unpopular with the Blue suits that make up the current Labour leadership.

But it’s the only way Labour will ever come up with a really ‘radical’ – and workable – plan.

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Cameron’s comedy turn won’t make anybody happy

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David Cameron should be very happy that UKIP is around to make him look acceptable.

We can’t ever say he’ll look good, but in contrast to the ‘Farage wave’, the spectacle of UKIP being thrown out of the venue where it was supposed to be launching its European election campaign, and the never-ending queue of candidates who are desperate to embarrass themselves publicly – what’s the latest one? “Women should be made to wear skirts because they’re a turn-on for men”? Ye gods… – it’s easy to think that the Conservatives are mild, or at least rational.

They’re not.

But Cameron was keen to project an image of competence at the Conservatives’ campaign launch for the local council elections. This is strange because, with his record of achievement, the things he was saying seem more like stand-up comedy than serious statements of ability.

Try this, about the European Union: “I have a track record of delivery – and believe me, whatever it takes, I will deliver this in-out referendum.” A track record of delivery? Well, yes. He delivered a top-down reorganisation of the NHS that nobody wanted, leading to an inrush of private health companies into the NHS – that nobody wanted. He has delivered the lowest amount of house-building, per year, since records began. He has delivered a withered economic ‘recovery’ that arrived three years later than if he had continued with the plan of the previous, Labour, government. He has delivered all the benefits of that ‘recovery’ to the extremely rich, rather than sharing it equally with the people responsible for it. And he has delivered a new high in employment, with no economic benefit to the country, that has left workers on wages that are so low they are going into debt.

He delivered the bedroom tax.

He delivered a massive increase in the National Debt.

He delivered millions of people into poverty and food bank dependence.

Ha ha ha. Very funny, Mr Cameron.

He told us, “People said I would never veto a European treaty. In 2011 that’s exactly what I did.” Well, yes. But the rest of Europe just went right ahead and carried on without you. You marginalised Britain as a member of the EU and made us a laughing-stock in the eyes of the world.

Ha ha ha. Very funny, Mr Cameron.

“We came through the great recession together; we are building the great British revival together,” he said. But he can’t say that to the many thousands of people who used to be claiming sickness and disability benefits but aren’t anymore because they are all dead. They didn’t come through the great recession. Cameron cut off their means of survival, forcing them into situations in which their health was allowed to worsen until their conditions overwhelmed them, or their situation induced such huge bouts of depression that they took their own lives.

Ha h- no. That’s not funny, Mr Cameron.

“The job is not done. If you want to finish the job we have started, back the party with a plan,” he said. Well, no. The Conservative plan (such as it is) will destroy your employment rights, scrap the welfare state, maintain a huge underclass of unemployed people to use as fodder for work-for-your-benefit schemes (a contradiction in terms if ever there was one) to circumvent the minimum wage, and to claim credit for successes that aren’t theirs.

There is only one reason to support the Conservative Party in this – or any other election.

That is if there is only one other political party on the ballot paper – and that party is UKIP.

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The questions that Sunday Politics WON’T ask Iain Duncan Smith

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Like it or not, politics in the UK is far more nuanced today than it has been at any time in the last 100 years. How can it be anything else? All the main political parties are trying to occupy the same, narrow, centre-right ground.

Even so, one man has emerged as the pantomime villain of British politics: Iain Duncan Smith.

ConservativeHome readers regularly vote him into the top slot as the most popular cabinet minister – but it seems that anyone who has ever had dealings with his Department for Work and Pensions has the exact opposite opinion of him. He has been nicknamed IDS, but this blog calls him RTU instead – it stands for ‘Returned To Unit’, a military term for serving soldiers who have failed in officer training and have been returned in disgrace to their original unit (the implication being that his claim of a glittering military career is about as accurate as his claims to have been educated at the University of Perugia and Dunchurch College of Management).

Here at Vox Political, we believe that this man’s tenure at the DWP will go down in history as one of the greatest disasters of British political history – not just recent history, but for all time. It is our opinion that his benefit-cutting policies have done more to accelerate the impoverishment of hard-working British people than the worst recession in the last century could ever have done by itself.

We believe the assessment regime for sickness and disability benefits, over which he has presided, has resulted in so many deaths that it could be considered the worst genocide this country has faced since the Harrowing of the North, almost 1,000 years ago.

That will be his legacy.

On Sunday, he will appear on the BBC’s Sunday Politics show to answer your questions about his work. The show’s Facebook page has invited readers to submit their own questions and this seems an appropriate moment to highlight some of those that have been submitted – but are never likely to be aired; RTU is far too vain to allow hyper-critical questioning to burst his bubble.

Here is our choice of just some questions he won’t be answering:

“Why [has he] decided to cover up the number of suicides due to [his] benefit cuts?” “Why is he killing the elderly and the disabled?” “Does he have a figure (number of deaths) before he accepts a policy might not be working?”

“Universal Jobmatch, Universal Credit, WCA reforms, PIP; are there any policies and projects he has tried to implement that haven’t been a massive shambolic waste of money, causing distress and sanctions to so many people?”

“Would he like to comment on the huge amount of people wrongly sanctioned, and would he like to explain why whistleblowers from the JCP have admitted there are sanction targets?”

“Ask him if he believes a comparison can be drawn between the government’s persecution of the sick, disabled and mentally ill and the ‘Action T4’ instigated by the Nazis in 1939. I am sure the tow-the-line BBC will give him sight of the questions before he gets on the show so he will have time to look it up.”

“People are now waiting months for their appeals to be heard and the meantime their benefits are stopped. What does he expect them to live on? Why [are] he and his Department pursuing this deliberate war against some of our most poor and vulnerable people?”

“Could he comment on the massive amount of money written off due to failures with the Universal Credit?”

“Why are we paying private companies to test disabled and sick people when one phone call to their consultant or GP would provide all relevant details they need?”

“[Does] he have any intention of putting his money where his mouth is, [living] on £53/week, and how does he square that with the £39 on expenses he claimed for breakfast? Half a million people signed the call for him to do so.”

“Why are full time carers who look after loved ones only paid £59.75 a week? Less than JSA, indeed less than any other benefit! they save the tax payers millions, and yet have still been hammered by the changes in housing benefit, council tax benefit and of course the hated bedroom tax.”

“Ask him about the Universal Jobsearch website and the fake jobs on the site. As a jobseeker, this site need[s] better monitoring.”

“Ask him if the bedroom tax was really just a deceitful way to remove all social housing and force people into private rentals for the rich to claim housing benefits paid to claimants.”

“Does he think that paying subsidies to supermarkets and other private companies via welfare benefits because they do not pay well enough is what government should be doing?”

Some of the questioners address Mr… Smith directly:

“Why do you keep testing people with incurable progressive illnesses? Once found unfit to work, [they] never will get any better so to retest is stressful, cruel, and not needed.”

“Why are you telling Jobcentre Plus staff to get ESA claimants and JSA claimants to declare themselves self-employed, then reeling them in with the promise of an extra £20 per week? Is this why the unemployment rate fell last quarter?”

“You say you want the sick off what you call the scrap heap but with few jobs out there, do you mean off the scrap heap into the destitute gutter?”

“Do you feel remotely guilty for the lives you’ve ruined? the lies you’ve told? The dead people on your hands? Do you feel any shame at all that you’ve done all this and more? Do you sleep well at night knowing there are people who can’t feed their children because of you?”

“As a committed Roman Catholic, how does your conscience deal with you supporting and advantaging privileged millionaires while you personally and systematically further impoverish the poor and disadvantaged?”

“Does he feel ashamed to have caused so much suffering, because he flipping well should!”

There were many more questions that were not appropriate for repetition.

To see what he does have to say for himself, tune in to Sunday Politics on BBC1, starting at 11am on March 9 (which is, as you might have guessed, Sunday).

Just don’t get your hopes up.

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The end of free speech and free protest in the UK

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It’s farewell to your centuries-old right to free speech today, after your Conservative and Liberal Democrat MPs won their bid to get the Gagging Bill passed by the House of Lords. It won’t go back to the Commons because the Lords made no amendments.

While you, personally, will be allowed to continue complaining about anything you want, you will no longer have the ability to link up with others to protest government actions in any meaningful way as such action may breach Liberal Democrat and Tory government-imposed spending limits. Your personal complaints will be deemed unrepresentative of the people.

You will still be able to have your e-petition on the government’s website – if you win enough signatures to have it debated in Parliament – ignored by the Tories and Liberal Democrats in the House of Commons.

The Liberal Democrats and Tories have even managed to rub salt into the wound by creating a register of all the corporate lackeys who will still be able to influence their policies – freelance lobbyists employed by large companies for the specific purpose of swaying government policy. Lobbyists who are company employees will not be listed as the government says their purposes for meeting MPs should be obvious.

This means the new law will do nothing to restrict the power of corporations to write government policy or prevent lobbying scandals such as those involving former Tory MP Patrick Mercer, along with Tories Peter Cruddas and Liam Fox.

The new law protects in-house corporate lobbying operations from official scrutiny, while preventing the public from enjoying the same privileges of access to the government. That is what your Conservative and Liberal Democrat MPs have fought so assiduously to obtain, over the eight months or so that this legislation, “one of the worst… any government produce[d] in a very long time”, has spent being digested by Parliament.

In a Commons debate in September, Glenda Jackson MP warned that her constituents “know that the Bill… would prevent democratic voices from being heard”.

In response, Andrew Lansley – the Conservative who gave us the hated Health and Social Care Act 2012, another incredibly poor piece of legislation – said; “I look forward to the Honourable Lady having an opportunity… to go back to her constituents, to tell them that the things they are alarmed about will not happen.”

They have happened already. Within 24 hours of the Lords agreeing the Bill in its current form, at least one parody account on Twitter, that was critical of Coalition policies, was closed down: @UKJCP – a satirical account parodying the DWP.

@UKJCP immediately resurrected itself as @DeadParrotJCP and @Director_UKJCP. We’ll see how long they last.

Let us not forget, also, that the third part of this law cracks down on trade unions, enforcing strict rules on membership records to ensure, it seems, that it is possible to ‘blacklist’ any trade unionist who finds him- or herself seeking work.

With free speech flushed away, you may still resort to public protest – but the Association of Chief Police Officers (ACPO) has that covered.

ACPO, which is funded by the Home Office, is lobbying the government for permission to use water cannons on the streets of the UK. This would be of no use at all in quelling violent criminal activities like the riots in 2011 – the police chiefs have already admitted that water cannons would have been ineffective in halting the “fast, agile disorder” and “dynamic looting” that took place during August 2011.

ACPO is an organisation that has tried to put ‘agent provocateurs’ into legitimate protest groups and promoted ‘kettling’ to stop peaceful protests (as used in the student protests early in the current Parliament), among many other reprehensible activities.

Considering its track record, it seems clear that ACPO wants to use water cannons against legitimate political protests, on the assumption that the increasing imposition of ideologically-imposed austerity on the country by the Liberal Democrats and the Conservatives will lead to more political protests, as people across the UK finally realise that the Tories and their corporate lobbyist friends are actually working against the wider population.

ACPO’s report on water cannons makes it clear that “it would be fair to assume that the ongoing and potential future austerity measures are likely to lead to continued protest” and “the mere presence of water cannon can have a deterrent effect”.

The Home Office response? “We are keen to ensure forces have the tools and powers they need to maintain order on our streets. We are currently providing advice to the police on the authorisation process as they build the case for the use of water cannon.”

So there you have it. Take to the streets in peaceful protest and your police service will assault you with water cannons, with the blessing of your government.

There remains one option open to you – your vote. You could get rid of the Conservatives and the Liberal Democrats at the next general election in 2015.

But that leads us to ask why the government has launched its attack on free speech and free protest.

Perhaps it wants to control the information you receive, on which you base your voting intentions?

We already know the unelected Conservative and Liberal Democrat government is using the predominantly right-wing media for this purpose. For example: George Osborne made a great deal of fuss earlier this week, alleging a huge resurgence in the British economy. With help from Tory mouthpiece the BBC, he was able to put out the headline figure that the economy grew by 1.9 per cent in 2013 – its strongest rate since 2007.

Osborne also claimed that Britain is doing better than all comparable economies in the Organisation for Economic Co-operation and Development, and that the upturn is due to his imbecilic “expansionary fiscal contraction” policy, otherwise known as austerity.

All of these claims are false, or intended to create a false impression.

Firstly, his 1.9 per cent of growth started at a much lower level of output than would have been the case if Osborne had not imposed austerity on us all and stopped the 2010 recovery dead. GDP would now be 20 per cent higher than its current levels if not for this single act of stupidity from the stupidest Chancellor in British history.

Secondly: The US economy recovered from an eight per cent fall after 2008 to a five per cent rise above its previous peak by the third quarter of 2013. Germany is the only major European country to enjoy growth of two per cent or higher, after an initial recovery based on increased public expenditure – not austerity. Even France has nearly reached its pre-crisis peak. The UK remains two per cent below its previous economic peak.

Finally, Osborne did not even get to this miserable excuse for a recovery by imposing austerity. He quietly adopted a stimulus policy to avoid going back into recession. What do you think ‘Funding for Lending’ is? Or his mortgage guarantee scheme?

All this is clarified by Michael Meacher MP in his own blog.

If George Osborne, Home Secretary Theresa May, ACPO and the Conservative-Liberal Democrat Coalition in Parliament had their way, you would not have access to any of these facts.

You would be led to believe that the governments policies are working, exactly the way the government says they are working.

You would not have any reason to believe that the government is lying to you on a daily basis.

You would be tranquillised.

Anaesthetised.

Compliant.

Would you vote against a government that tells you such wonderful things, even when your own circumstances might not reflect that story (real wages fell by seven per cent in the private sector and five per cent in the public sector between 2007-13)?

David Cameron is betting his career that you won’t.

He wants you to be a good little sheep.

Is that what you are?

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The State of Osborne: a visitor’s guide

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

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

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

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

They’re probably trying too hard.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What a shame Osborne did not follow her advice.

 

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If the economy is in recovery, why does it still feel like recession?

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Path to prosperity? If the economy has been growing for the last nine months, why has food bank use almost tripled during the last year?

No doubt Gideon George Osborne will spend the next few days (if not weeks and months) crowing about the figures from the Office for National Statistics that say the British economy has grown for a third successive quarter.

He has already tweeted, “This shows that Britain’s hard work is paying off & the country is on the path to prosperity.”

The construction industry has grown by 2.5 per cent on the previous quarter, with house builders buoyed up by Gideon’s Help to Buy scheme, which offers (unsupported) mortgage guarantees to buyers and lenders. He has promised to divert £12 million to this, but has not said where he will find the money.

Critics have warned that this is simply creating another housing-fuelled debt bubble that will burst in a couple of years’ time, leaving even more people in debt than after the financial crisis hit us all.

Has this growth generated work for electricians, plumbers, plasterers, roofers? If so, are they being paid fairly? These are the people who will take their disposable income back into the wider economy, for the benefit of other businesses.

Production (including manufacturing) and services are both on the up as well. The BBC report says nothing about retail. But if this good news is true, why is the Department for Work and Pensions determined to expand its Workfare scheme, as laid out in a Conservative conference announcement and by an article reblogged here.

Shadow Chancellor Ed Balls welcomed the signs of growth in the ONS report but warned: “For millions of people across the country still seeing prices rising faster than their wages, this is no recovery at all.”

He is right, of course. Look at the rise and rise of food banks, which have seen a massive rise in attendances from even working people – whose wages simply don’t cover the cost of living. Benefits are, of course, being cut back by our “compassionate” Conservative-led government.

They say there’s no money for it but – if the economy is surging back into growth – where are all the tax receipts from the big corporates that are profiting?

Oh yes – they’re safely closeted in the tax havens that Mr Osborne kindly opened up for them. Ordinary, working, and poor people have to use their own limited funds to pay off a Conservative-run national deficit, presumably because Tories think the rich, who caused the problem, shouldn’t have to pay for services they don’t use.

And the Institute of Directors’ chief economist, Graeme Leach, warned that there are “strong headwinds” restricting the possibility of further growth, including “debt and inflation” which are “rising faster than earnings”.

That’s right. Only yesterday, Yr Obdt Srvt was talking with a gentleman who – despite having a full-time job – has fallen so severely into debt that he has had to cut his expenditure down to nothing but taxes, the vital utility bills (water but not heating), and rent. He has no budget for food and faces the possibility of having his belongings, such as his car, repossessed – and even eviction.

Is he on the path to prosperity, Mr Osborne? Of course not. This report is merely further proof that you were lying when you said, “We’re all in it together” – as you did (again) at the Conservative conference.

It’s prosperity for the greedy few, and austerity for the rest of us.

Maybe you have a different opinion, but ask any average worker on the street and they will tell you that continued wage depression and price inflation, the expansion of the Workfare regime that gives free employment to firms that don’t need it while the workers themselves have to survive on benefits, massive growth in food bank use, and the threat faced by thousands of eviction and the repossession of their belongings are not milestones on the path to prosperity.

Revealed: ConDem ‘vendetta’ against citizens it believes are livestock

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“Fascist Britain, 2013. Everybody knows you can’t beat the system. Everybody but…?”

It has been rumoured that V for Vendetta ‘Guy Fawkes’ masks are to be banned from large-scale public demonstrations in the UK.

They have already been banned in Bahrain and Saudi Arabia.

The masks were adopted by the loosely-affiliated protesters Anonymous as a clear indication of members’ feelings towards a Conservative/Liberal Democrat Coalition government whose actions, they believe, have been increasingly fascist.

These people have a point.

Has anyone read V for Vendetta lately? An early chapter, ‘Victims’, provides the historical background to the fascist Britain of the story – and provides very disturbing parallels with the current government and its policies.

In the story, there is a recession and a nuclear war. Fortunately, in real life we have managed to avoid the war (so far) but the recession of 2007 onwards has caused severe hardship for many, with average wages cut by nine per cent (in real terms) due to government policies.

In the story, the line “Everybody was waiting for the government to do something” is notable. Isn’t that just about as British as you can get? As a nation, we seem unwilling to take the initiative; we just wait for someone else to do something. We queue up. And then we complain when we don’t find exactly what we wanted at the end of the queue. But then it’s too late.

Does the government “do something”? Well, no – not in the story, because there isn’t any government worth mentioning at this point. But then… “It was all the fascist groups. The right-wingers. They’d all got together with some of the big corporations…”

Here’s another parallel. How many corporations are enjoying the fruits of the Conservative-led (right-wing) government’s privatisation drive?

Look at my IDS (I Believe) video on YouTube – which features only a tiny minority of those firms.

The NHS carve-up signified huge opportunities for firms like Circle Health and Virgin, and Bain Capital (who bought our blood plasma supplies). Care UK, the firm that famously sponsored Andrew Lansley while he was working on the regressive changes to the health service that eventually became the Health and Social Care Act 2012, no doubt also has fingers in the pie.

The Treasury is receiving help – if you can call it that – from the ‘big four’ accountancy firms – PricewaterhouseCoopers, Deloitte, Ernst & Young and KPMG. They have written the law on tax avoidance. By no coincidence at all, these are the firms that run the major tax avoidance schemes that have been taken up by businesses and rich individuals who are resident in the UK. For more information on the government’s attitude to taxing the rich, see Michael Meacher’s recent blog entry.

The Department for Work and Pensions has employed many private firms; this is the reason that department is haemorrhaging money. There are the work programme provider firms who, as has been revealed in previous blog entries, provide absolutely no useful training and are less likely to find anyone a job than if they carried on by themselves; there are the IT firms currently working on Universal Credit, about which Secretary of State Iain Duncan Smith lied to Parliament when he said he was having to write off £34 million of expenditure – the true figure was later revealed to be closer to £161 million, almost five times as much; there are Atos and Capita, and probably other firms that have been hired to carry out so-called ‘work capability assessments’ of people claiming sickness, incapacity and disability benefits, according to a plan that intentionally ignores factual medical evidence and places emphasis on a bogus, tick-box test designed to find ways to cut off their support; and there is Unum Insurance, the criminal American corporation that designed that test, in order to push British workers into buying its bogus insurance policies that work on exactly the same principle – this is theft on a grand scale.

So we have a government in cahoots with big business, and treating the citizens – the voters – like cattle. We’ll see more of this as we go on.

“Then they started taking people away… All the black people and the Pakistanis…” All right, these social groups have not been, specifically, targeted (yet) – but we have seen evidence that our government would like to do so. Remember those advertising vans the Home Office funded, that drove around London with a message that we were told was for illegal immgrants: “Go home”?

“That is a term long-associated with knuckle-dragging racists,” said Owen Jones on the BBC’s Any Questions.

“We’re seeing spot-checks and racial profiling of people at tube stations. We have a woman on the news… she was born in Britain; she was told she was stopped because she ‘didn’t sound British’. And we have the official Home Office [Twitter] account being used to send gleeful tweets which show people being thrown into vans with a hashtag, ‘#immigrationoffenders’.

“Is this the sort of country you want to live in, where the Conservatives use taxpayers’ money to inflame people’s fears and prejudices in order to win political advantage? Because I don’t think most people do want that to happen.”

This blog’s article on the subject added that not only this, but other governments (like that in Greece) had created an opportunity to start rounding up anybody deemed “undesirable” by the state. “Greece is already rounding up people of unorthodox sexuality, drug addicts, prostitutes, immigrants and the poor and transferring them to internment and labour camps,” it stated.

Note also the government’s response to criticism from UN special rapporteur on adequate housing Raquel Rolnik. Grant Shapps and Iain Duncan Smith and their little friends tried to say that she had not done her job properly but, when this was exposed as a lie, they reverted to type and attacked her for her racial origin, national background, and beliefs – political and personal. You can read the lot in this despicable Daily Mail smear piece.

Back to V for Vendetta, where the narrative continues: “White people too. All the radicals and the men who, you know, liked other men. The homosexuals. I don’t know what they did with them all.” Well, we know what Greece is doing with them all, and in the story, such people also ended up in internment and labour camps. We’ll come back to that.

“They made me go and work in a factory with a lot of other kids. We were putting matches into boxes. I lived in a hostel. It was cold and dirty…”

Last month this blog commented on government plans for ‘residential Workfare for the disabled’, rounding up people with disabilities and putting them into modern-day workhouses where someone else would profit from their work while they receive benefits alone – and where the potential for abuse was huge. If that happens, how long will it be before every other jobseeker ends up in a similar institution?

A while ago, a friend in the cafe I visit said that a Tory government will always see every class of people other than its own as “livestock”. That’s the word he used – “livestock”. From the above, with descriptions of people being treated like cattle, or being herded into the workhouse for someone else to profit from their work, it seems he has a very strong case.

So let’s go back to these internment and labour camps – in V for Vendetta they’re called “resettlement” camps. A later chapter – The Vortex – reveals that inmates at such camps are subjected to unethical medical experimentation. The doctor carrying out the trials notes in her diary that the camp commandant “promised to show me my research stock… they’re a poor bunch.”

Her research stock are human beings who have been subjected to conditions similar to those of the Nazi concentration camps. Notice the language – this doctor considers the other human beings taking part to be her property. And they are “research stock” – in other words, she does not see them as other human beings but as livestock – exactly as the friend in the cafe stated.

And jobseekers in today’s UK are being coerced into experimental drug trials, disguised as job opportunities, according to the latest reports.

V for Vendetta‘s tagline – the blurb that set the scene – was: “Fascist Britain, 1997”. It seems the only part that its author, Alan Moore, actually got wrong was the date.

Lord Young – a talking example of why working people should never vote Conservative

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Unrepentant: Ignorant old Tories like Lord Young cannot see anything wrong with starving workers – and, through lack of tax revenue, the benefit budget – to make fat profits for greedy business bosses. The families of all those who have died because of these policies might have a different point of view.

Apparently we are living in an excellent time for businesses to boost their profits – because labour is cheap.

That is what Lord Young, who advises David Cameron on enterprise, told the cabinet yesterday (May 11). His words make it crystal clear that working people who vote Conservative are classic examples of turkeys voting for Christmas. They beg to be exploited.

He said low wage levels in a recession made larger financial returns easier to achieve – in other words, he actually admitted that bosses could use the current state of the UK economy, as caused by his own government (not the previous Labour administration, for reasons we’ve covered in the past), to push workers’ wages down and keep more moolah for themselves.

Vox Political has accused the Conservatives of exactly this behaviour in the past, but we never expected to see a member of the government admit it so brazenly.

Perhaps this is more of the government’s pet ‘nudge’ theory at work. We have seen that benefit increases have been lowered in order to instil fear of destitution in the jobless, and in those who have low-paid jobs. Now, businesses are being urged to capitalise on this, exploiting their workforces with the obvious threat: “There are plenty of other people out there who’ll do it for less!”

Let’s just back this up with some statistics, courtesy of The Guardian , shall we? UK employees’ average hourly earnings have fallen by 8.5 per cent, in real terms, since 2009. That’s adjusting for inflation, and the newspaper got its figure from the Office for National Statistics.

Meanwhile, the 1,000 richest people in the UK are now worth more than £414 billion – up more than £155 billion in the three years to December 2012. And in April, the Tory-led government gave those people a £100,000 per year tax cut.

Lord Young is not to be confused with Sir George Young, the Tory Chief Whip who once famously said “the homeless are what you step over when you come out of the opera” – but he is cut from the same cloth.

He had to apologise after telling the Daily Telegraph that “for the vast majority of people in the country today, they have never had it so good, ever since this recession – this so-called recession – started”.

For this reason it is easy to suggest that he would have stepped over the body of Stephanie Bottrill, had he been the first to find it.

Oh – do you think that statement goes too far? Please, reserve your judgement until I have explained my reasoning.

Like so many members of the Tory government, this is a man who absolutely point-blank refuses to understand the relationship between the decisions he makes and the conditions in which the majority of us are forced to live.

This former advisor to the Prime Minister on health and safety laws has advocated relaxing them, ignoring the fact that this will increase the likelihood of work-related injury that makes it impossible for people who need the money to go to work.

This enterprise advisor was asked to conduct a “brutal” review of the relationship of government to small firms, presumably with a view to cutting off as much public assistance for small businesses as possible.

This former chairman of the Manpower Services Commission advised the late Baroness Thatcher on unemployment, and we may take it that it is due to this advice that joblessness skyrocketed during the Thatcher years.

He refuses to see that his attitude is causing the problem: By ensuring that Britain’s labour market remains “flexible” (read “low-wage”), he ensures that the national tax take remains far lower than it should be; low-paid workers form the overwhelming majority of the workforce. In turn, the low tax take means the government cannot pay off its debts and provides it with an excuse to cut public spending – especially on benefit payments.

Stephanie Bottrill had an auto-immune system deficiency, Myasthenia gravis, which meant she was permanently weak and needed constant medication. Doctors said she was too ill to hold a job, but she never qualified for disability benefits.

She committed suicide because she could not afford the cost of living after the Bedroom Tax was forced on her, and it has been said by others that she died for want of £20 per week.

It is the attitude of Tories like Lord Young that has deprived her of that money – and ultimately, of her life.

GDP figures due – will Gideon have anything to show for his austerity idiocy?

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Triple-dip breakfast: Will we all be dining on the sour cereal of recession again, when GDP figures are published on Thursday morning?

Thursday will be another ‘crunch’ day for our part-time Chancellor of the Exchequer – he’s having quite a lot of those lately, isn’t he?

Only last week, the academic justification for his austerity policy was disproven by an American student (oh, the shame!), and then his former allies at the International Monetary Fund distanced themselves from him (oh, the betrayal!) saying he should calm down a bit.

That’s the best advice this columnist has ever heard the IMF provide; if not for his own health, then for the nation’s.

Thursday, though, is a really big day. On Thursday, GDP figures for the first quarter of 2013 will be published.

It is a sign of how low expectations have fallen, that all the economic commentators are saying the best we can expect is to have kept out of a triple-dip recession – with falls in output due to the weather, among other things, making that unprecedented outcome more likely.

There is a problem with all of these predictions, which should be obvious to those of us living in the real world: Short-termism.

It’s all about how the UK managed in the last quarter, how it will manage in the next; what the situation is today. What about six months from now? What about next year? What about 2015, when we’re all expecting an election and the chance to banish this nightmare? What about 2017-18, when 0sborne still reckons he’ll have eliminated the budget deficit (fat chance)?

The fact is that the only options open to a Chancellor in the current climate are unpalatable to the Boy.

He could boost investment in infrastructure, in a bid to make this country a better place to open – and carry out – business. The trouble is, this tends to be a long-term project and he no longer has the time. His chances would have been better if he had started this in 2010, but his government cancelled as many such projects as they could back then, claiming it was more important to cut public spending in order to balance the books.

That was a vain hope. Without new investment, the country has lost revenue.

But if that is unpalatable, the other alternative is likely to make him choke on his pate de foie gras (or whatever it is these posh boys ingest): Increase the spending power of the poor.

It is known that the ‘trickle-down effect’ is a myth – giving all of a country’s money to the very rich, in the belief that they will spend it, boosting the economy and the income of the poor, is nonsense. What they actually do is bank it – in offshore tax havens, most likely. That is what 0sborne has been doing; it is another reason the economy has bombed.

It is also a rock-solid fact that poor people do spend their money – or as much as they can get their hands on. When you are constantly struggling to make ends meet, it’s very hard to keep cash in the bank – you have to spend it on food, clothes, rent, heat, light, water… the list is endless, because it constantly repeats.

When you don’t have much cash, as Edmund Blackadder once said, you feel like a pelican. Everywhere you turn, there’s a large bill in front of you.

That money does work for society. It reinvigorates the economy as it filters through different hands. And it brings with it the extra joy of fiscal multipliers – every pound that gets put into the economy is worth more after it has been through.

The trouble is, Gideon shut off that money supply. He raised VAT, making it harder for working-class people and those on benefits to buy certain economy-boosting products, and then he and Iain Duncan Smith spent the last few years on their project to depress wages.

(For clarity, it goes like this: The DWP makes the benefit system so difficult to navigate that people in receipt have to do their utmost to get off-benefit as soon as possible. This means they are constantly looking for jobs, which in turn makes it possible for employers to refuse pay rises for their workforce, with the classic line that “there are plenty of other people who’d be happy to have your job, you know!” You didn’t really think the benefit cap was about making work pay, did you?)

Say what you like about Labour, but they’ve got the right idea when it comes to the money supply. Ed Balls wants to cut VAT; he wants to bring back the 10 per cent tax rate for the lowest-paid; he wants to bring in a National Insurance holiday for companies that agree to take on new employees.

These are measures that will help.

What is Gideon going to do?