Tory

You won’t hear the Chancellor boasting about the biggest drop in living standards since the war

Posted on Updated on

You won’t hear the Chancellor boasting about the biggest drop in living standards since the war

The young have been hurt the most by the recession. They don’t vote Tory and can’t buy a house, so who cares?

Last week I appeared on Iain Dale’s LBC radio show to discuss an interview he had just conducted with the Chancellor George Osborne on a trip to the South-west. Iain managed to get Osborne to repeat the dumbest statement that I have ever heard from a Chancellor – that is ‘four years ago the country was close to bankruptcy’. Such a claim that the country was broke is unequivocally false. A big fat pork pie.

In the quarter the Coalition took office in 2010 the economy grew by 1 per cent, which is the fastest quarter of growth since 2007. The economy grew by an average of 0.6 per cent a quarter from the final three months of 2009 to the third quarter of 2010 compared with an average of only half of that in the fourteen quarters since then. The UK – with its own central bank and currency – has been able to borrow at historically low rates throughout the recession under both Labour and coalition governments and was never anywhere close to being insolvent. Imagine if the chief executive of any of the biggest 500 companies in Britain declared that their company was close to bankruptcy when it wasn’t – or even if it was – they would be relieved of their duties.

As I have frequently predicted in these columns, real wages continue to plunge. The latest ONS data showed that. Average weekly earnings were £478 a week, down from £479 in December 2013 and exactly the same as observed in April. Pay was up 0.3 per cent over the last twelve months, which is the lowest ever, and exactly zero in the five months that we have data for since the start of 2014. We have now had monthly estimates of £478 in January, February, April and May and one of £476 in March so there isn’t much growth there. In contrast the Retail Price Index grew 2.6 per cent over the last year, so real wages are currently falling at more than 2 per cent per annum. The AWE is up by 6.5 per cent since May 2010 while the RPI is up 14.6 per cent. So real wages are now down 8 per cent and that drop has no chance of being restored by election time. I do recall the Bank of England’s ex-chief economist Spencer Dale explaining at the last inflation report press conference that the MPC was fully expecting real wage growth in the second half of 2014, a claim recently repeated by Governor Carney who is headed back to the drawing board.

Elsewhere the news is little better. There was new evidence from a recent study published by the Department for Work and Pensions* showing how Iain Duncan Smith’s much hated bedroom tax had further hurt living standards of the vulnerable. The study found there was widespread concern that those who were paying the tax were making cuts to other household essentials or incurring other debts in order to pay the rent. More than half reported cutting back on household essentials and a third on non-essentials in order to pay their shortfall. A quarter said they had borrowed money, mostly from family and friends.

The UK’s younger workforce is struggling as well. The unemployment rate of those age 16-24 was 18 per cent compared with 5 per cent for those ages 25-49 and 4 per cent for those 50 and over. A report by the Institute of Fiscal Studies** confirmed that the young have been hurt the most by the Great Recession. They don’t vote Tory and have little or no chance of buying a house. So who cares? Actually, I do. I went back to Cardiff University to accept a Fellowship at the Business School graduation last week; my MSc thesis there in 1981 was about the scourge of youth unemployment.

More here

Millions of taxpayers’ cash spent on venture capital fund run by #Tory donor: The #Conservative Paymasters #Derbyuk #Derbyshire

Posted on

Millions of taxpayers’ cash spent on venture capital fund run by Tory donor

Adrian Beecroft is the latest member of the Conservatives’ Leader’s Group to face questions
Millions of pounds of taxpayers’ money is being spent on a venture capital fund overseen by one of the Conservative Party’s biggest donors, The Independent on Sunday can reveal.

The British Business Bank, which is run by the Department for Business, has committed £7.8m to the Dawn Capital II investment fund, Whitehall documents show. Dawn Capital II’s parent company is Dawn Capital, whose chairman is Adrian Beecroft. Mr Beecroft has donated more than £700,000 to the Conservative Party, making him eligible for David Cameron’s “Leader’s Group” of top donors who are granted exclusive access to the Prime Minister.

Dawn Capital has in the past invested in Wonga.com, the payday lender which last month was criticised by the Financial Conduct Authority for sending fake lawyers’ letters to its customers who owed money. While Dawn Capital’s investment in Wonga.com is separate to Dawn Capital II, which is receiving public funding, the Labour MP Stella Creasy, who has campaigned against payday lenders, said the link was nevertheless of concern. She also questioned why public money was being invested in a fund with links to a high-profile Conservative donor.

Read more here

The Lib Dems – Yellow by Name, Yellow by Nature

Posted on

John Wight  Huffington Post  Writer                    People's_Assembly_logo

Confirmation that the Lib Dems are the political equivalent of something you’d rather not get on your shoes came with their opposition to Labour’s parliamentary motion against the Bedroom Tax earlier this week.

Apart from Tim Farron and Andrew George, Lib Dem MPs swung behind the Tories and have thus condemned the hundreds of thousands impacted by this callous, cruel, and contemptuous Tory tax throughout the country to at least two more years of misery and despair up to the next general election in 2015.

The 31 Lib Dems who voted with the government were joined by a further 21 who avoided the issue by failing to vote. Making this latest betrayal even more staggering is that it came in defiance of their own party, which condemned the Bedroom Tax at their party conference in Glasgow in September.

What motivates a person to go into politics fuelled not by principle but rank opportunism? What is that gets such a person out of bed in the morning? Hopefully sometime in the future psychologists will explore the mindset of your average Lib Dem MP in an attempt to understand the minds of those who embrace betrayal as a virtue rather than, as with normal people, rejecting it as a vice.

Since joining with the Tories in a coalition government of the bad and mad, the Lib Dems have done politics a huge disservice, responsible for deepening people’s cynicism and disdain for the political process. Russell Brand’s recent interview with Jeremy Paxman, during which he articulated this disdain as the reason why he’s never voted, spoke to the huge gulf that exists between a growing constituency of people and those meant to represent them.

Step forward the Liberal Democrats.

Full Huffington Blog article here

For the Sake of Humanity Society Must Unleash War on the Tories

Posted on

John Wight

Writer

If nothing else, for the sake of our children and children’s children, it is time for society to unleash war on the Tories.

This, to clarify, will not be a war of aggression, it will be a war against their aggression on the part of those who understand that collectivism not individualism is what separates us from the abyss of barbarism.

The campaign of hate being waged by this government of rich, privileged, and privately educated sociopaths against the poor, the unemployed, and those who dare try to claim the benefits to which they are entitled is unparalleled in modern history. Even Thatcher in her pomp was not as malicious in her treatment of the aforementioned demographic. This was not because she didn’t wish to be more malicious than she was, it was because when she came to power we still had trade unions capable and willing to resist such an onslaught, meaning that the cost involved in even attempting to rip up the foundations of the welfare state and the collective ethos which lies at its heart would have been too damaging to her government and party to make worthwhile.

Three decades on and the fruits of Thatcherism – with the corresponding neutering of the unions and other forms of working class solidarity – have culminated in a new normal of demonisation and the near criminalisation of poverty in Britain. Austerity has been sold to the country as a policy of necessity in response to years of Labour profligacy and a bloated public sector. It is a lie so bold and barefaced that even Joseph Goebbels would blush while repeating it.

The economic crisis which began in the US and hit these shores in August/September 2007 was a consequence of an out of control international banking and finance industry – in other words private greed on the part of the rich, the very constituency favoured by and so exalted by the Tories. Britain’s public sector was neither bloated or out of control. On the contrary, under an economic system prone to volatility and unpredictable but periodic shocks, the public sector acts as a ballast of demand. If people are not spending then there is no demand for the goods and services produced by businesses, which results in a reduction in economic activity, borrowing, and investment and a concomitant rise in unemployment and government debt in order to meet the cost.

From Huffington Post read full article here

“Tory” Clegg leaves the door open to further welfare cuts

Posted on

By George Eaton Published 16 December 2013

At his monthly press conference, the Deputy PM refuses to rule out

reducing the benefit cap or limiting child benefit to two children for out-of-work families.

George Osborne has made it clear that he plans to introduce “billions” more in welfare cuts if the Tories win the next election, including a possible reduction in the £26,000 household benefit cap and new limits on child benefit, but where does Nick Clegg stand? At the Deputy PM’s final monthly press conference of the year, I asked him whether he was prepared to consider a reduction in the benefit cap in the next parliament. He told me:

It’s not something that I’m advocating at the moment because we’ve only just set this new level and it’s £26,000, which is equivalent to earning £35,000 before tax…I think we need to keep that approach, look and see how it works, see what the effects are, but not rush to start changing the goalposts before the policy has properly settled down.

The key words here are “at the moment”. While Clegg again declared that he believed the priority should be to remove universal pensioner benefits from the well-off (“you start from the top and you work down”), he was careful not rule out a cut in the level of the cap. Similarly, on the Conservative proposal to limit child benefit to the first two children for out-of-work families, while Clegg said there was “something a bit arbitrary” about “a government saying how many children the state will or will not help support”, he refused to oppose the idea in principle. He said:

Is my priority returning to child benefit, as the first port of call, no it’s not. But I’m not going to start drawing great circles around this policy or that policy. I want to look at it in the round.

From New Statesman full article here