Category Archives: Cuts

Is it ‘a myth’ that the ‘left behind’ have been neglected?

 

Today, Times columnist Clare Foges, a former member of Boris Johnson’s mayoral team and then David Cameron’s speech writer, challenges the narrative that Brexit is down, in large part, to a high-handed and callous establishment’s neglect of the “left behind”, deploring the belief that:

”Those in poor northern constituencies and bleak coastal towns were left trailing in the gold-flecked dust thrown up by the golden chariots that bore the wealthy, the Londoners, the elite onwards — throwing back their heads to laugh heartily and pour some more Bolly down their gullets while failing to give a monkey’s about those in their wake”.

Truly, those in poor northern constituencies and bleak coastal towns were and are left trailing – but the elite do not spend time laughing at them – those people are neglected because they are simply of no interest.

She asserts that the deindustrialised towns have suffered because of globalisation or automation, not because those in government sat on their hands.

But the elite constructed, fostered and continue to be enriched by globalisation and automation – the system which impoverishes many is necessary to their lifestyle. Clare admits that “When you know that you are on the lower rungs of a socio-economic ladder that reaches, at its heights, into the realm of millionaires and sports cars and Maldivian holidays, you may well feel resentful. It must be profoundly demoralising to see swathes of your countrymen and women enjoying seemingly easy success while you struggle”.

She also concedes, “Of course there is serious poverty and inequality in our country, but over the past 20 years in particular governments have tried a thousand different policies to reduce them” but fails to mention the ways – under recent Conservative governments – in which people on low incomes and those in poor health have been harassed, ‘sanctioned’ and deprived of their due allowances, in order to make derisory savings. She adds:

“I don’t deny that the Brexit vote may have been driven in part by resentment. Yet here is the crucial point: just because people have felt cruelly neglected by the powers that be, it doesn’t mean that they actually were . . .  Let us not mistake a failure to revive left-behind areas with wilful neglect. For the most part the much-traduced “establishment” has been well-meaning and hardworking in pursuit of a fairer country.”

Yes, wilful neglect does imply a degree of awareness – the correct term is indifference; ‘left-behind’ people are simply not on the radar of the affluent, preoccupied by “sports cars and Maldivian holidays”. She ends with more burlesque:

“With a more benign and interventionist establishment at the helm, the taxes of rich people could be spread thickly all over the country with no fear that wealth will flee; billions could be borrowed for major infrastructure projects with no damage to our economy; the streets of Grimsby and Oldham would be paved with gold. By giving this impression, we are inviting people to vote for Jeremy Corbyn and his fantasy economics”.

But would those in government circles – who benefit from corporate sinecures, stock exchange speculation and commodity trading – be willing to change the globalised system for one in which government invests in strengthening the economy through regional production and supply chains? Or will they oppose such changes with all their might, to maintain their current privileges?

 

 

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Surprised? Rich and poor in England receive different levels of service from the NHS

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Frequently reported differences in health outcomes are generally ascribed to factors beyond the control of the health service, such as unhealthy lifestyles or poor living conditions. However, research has disclosed that there is a difference in the level of service received by poorer communities.

Though the NHS’s funding formula is designed to provide more money to the neediest areas, an FT article reported last week that – according to data analysed by the Nuffield Trust for the Financial Timessome poorer communities being “left behind” when accessing GP services.

Sarah Neville, Global Pharmaceuticals Editor, summarising the data, reports that rich and poor people in England receive different standards of care from the UK’s universal free health service.

Despite the higher burden of ill health in lower socio-economic groups, there are markedly fewer GPs per head in poorer areas of England than in richer areas

There was an average of 1,869 patients on GP lists for each doctor in the most affluent clinical commissioning groups, compared with 2,125 in the most deprived, according to Nuffield researchers. One in seven people in the poorest areas was unable to get a GP appointment, compared with one in 10 in the richest areas.

As GPs act as the crucial “gatekeeper” to other health services, a delay in seeing a doctor can lead to delays in securing other appropriate treatment. Emergency admissions were nearly 30% higher in the most deprived fifth of CCGs, compared with the least deprived fifth, which could point to delays in securing — or seeking — the right treatment. (See references to Sandwell here)

Nigel Edwards, chief executive of the Nuffield Trust, said that the new analysis showed there were “concerning discrepancies between the standards of care rich and poor receive from some NHS services”.

NHS England, “more medical treatment isn’t by itself the only answer”:

“ (T)he NHS long-term plan will be setting out new action to tackle inequalities including in access to primary care. But with the root cause of ill health lying in factors such as diet, smoking and exercise, income security, housing, air pollution and social connection, more medical treatment isn’t by itself the only answer.”

Ms Neville concludes that the findings raise questions about how well the 70-year-old National Health Service is meeting its founding principles of equity. They increase pressure on the NHS to outline plans to reduce health inequalities when it publishes its long-awaited spending plan next month.

 

 

Universal credit is NOT an incentive to work for the single able-bodied: 63p of every pound earned is clawed back

Focussing on undue delays causing hardship, highlighted on this site, The Times and the FT in 2017 asked ‘is universal credit – to date – a disaster?’

The FT today says “Universal credit is a plum example of how not to reform public services. The theory was broadly sound: the simplicity and real time data of the universal credit would ensure people were always better off in work. The reality, however, has proved calamitous”.

Conservative and Labour politicians, such as Jacob Rees-Mogg, Johnny Mercer, Gordon Brown and Frank Field, are now demanding that the government reconsiders the national rollout.

John Major has warned that UC could lead to a repeat of the poll tax debacle of the early 1990s, which saw riots against the then Conservative government.

A reader with a postgraduate degree was asked to look at these sections on a government-recommended benefits calculations site:

Work allowance for Universal Credit (Ed: able-bodied & childless need not apply)

If you/and or your partner are in paid work, you might be able to earn a certain amount before your Universal Credit is affected, this is called the work allowance. Your work allowance will depend on whether you are single or part of a couple and whether your Universal Credit includes amounts for housing costs, children and/or limited capability for work. The table below shows the different levels of monthly work allowance.

Universal Credit earnings taper rate

The Universal Credit earnings taper is a reduction to your Universal Credit based on your earned income. The taper rate sets the amount of benefits a claimant loses for each pound they earn. The earnings taper rate is currently 63%. This means for every pound you earn over your work allowance your Universal Credit will be reduced by 63 pence. To work out the earnings taper that applies to your award:

  1. Take your total monthly earnings figure after tax, National Insurance and relevant pension contributions have been taken off
  2. Deduct your monthly work allowance, which is the amount you can earn without your benefit being affected (if you are eligible for one)
  3. Apply the taper rate by multiplying the remaining earnings by 0.63

This is the amount that will be taken from your Universal Credit maximum amount when calculating your award.

Even the post-graduate reader found these instructions ‘far from simple’ and in no way producing a simpler and more effective system.

Esther McVey, the work and pensions secretary in charge of the scheme, confirmed last week that families will be poorer under UC. She did not deny reports that millions of families could be up to £200 a month worse off when it is fully rolled out.

The chairman of the Commons work and pensions select committee has described the project – running well behind schedule – as a “shambles, leaving a trail of destruction” and in its assessment this year, the National Audit Office doubted whether the system would ever deliver value for money.

Last year Leigh Richards commented on last November’s news: “ Even Scrooge might have balked at Universal Credit”.

The current Universal Credit system is NOT ‘fit for purpose’

 

 

 

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A final nail in the coffin of successive governments’ love affair with PFI?

Keep Our NHS Public Birmingham (KONP) says, “It looks like we’ve won our campaign for a publicly-funded (non-PFI) Midland  Metropolitan Hospital in Smethwick/West Birmingham!”

The construction of the Midland Metropolitan Hospital in Smethwick collapsed after Carillion crashed spectacularly in Jan 2018 leaving the hospital half built. Then the bankers behind the ‘private finance initiative’ pulled the plug on the deal.

KONP Birmingham immediately organised a protest outside the hospital site demanding that the Treasury, health ministers and the Government should fully fund the hospital and run it properly under government and NHS control! Supporters included Birmingham TUC (BTUC), Unite the Union West Midlands, Unite the Community Birmingham, West Midlands Pensioners Convention and Birmingham Against the Cuts.

A month later, the Sandwell and West Birmingham Hospitals Trust Board voted to tell the Government that the only viable option for the completion was direct government funding, a full vindication of the KONP Birmingham campaign argument.

The Government and Hospital Trust has now reached an agreement to finish construction work with the Government providing funding for the remainder of the building work at Midland Metropolitan Hospital – which will see the new hospital built by 2022.

Birmingham Against The Cuts (BATC) says: “We believe that the Midland Met fiasco is a final nail in the coffin of successive governments’ love affair with PFI /2”

BATC gives a very cautious welcome for a publicly funded Midland Met Hospital in Smethwick/West B’ham (no PFI!) and expresses its  continuing concerns:

Firstly, there is a delay in starting completion until early summer 2019, partly because the half built hospital was rotting away without any protection for 6 months and an additional £20m worth of work will have to be done from this September.

Additionally, the Hospital’s Trust Board Chief Executive has been dropping in phrases to his announcements such as “making cost improvement programmes above national norms”, “limited reconfigurations”, etc, which reflect the concern in Dr John Lister’s 2016 review (right) of the privately financed hospital published by KONPB and BTUC when the Midland Met was first mooted.

Keep Our NHS Public Birmingham Secretariat will continue campaigning to defend the NHS and BATC will share news of government cuts, the implications and alternatives.

 

 

 

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Media 88: mainstream silent as the Church of England fails to bless the bomb

Survivors of the Nagasaki bomb walk through the destruction as fire rages in the background.

The third clause in the Bishop of Chelmsford’s motion at the General Synod Debate on the UN Treaty to Prohibit Nuclear Weapons:

(c) commit the Church of England to work with its Anglican Communion and ecumenical partners in addressing the regional and international security concerns which drive nations to possess and seek nuclear weapons and to work towards achieving a genuine peace through their elimination.

It was passed 260 for, 26 against, 21 abstentions.

The first six pages of an online search found no reference to this decision in any member of the mainstream media (MSM) secular press. Only one entry – from the Defence Journal – recorded the event.

Will MSM cloak today’s Anglican news with silence?

Political damage is being done by social media’s highlighting of the austerity-excused trials and deprivations of the poorest and most disabled. Today it has been announced that the church is now reaching out ‘primarily to people under 40-years-of-age who have no current connection with a church’ – on pioneering café-style premises in in coastal areas, market towns and outer urban housing estates.

Threatening? If the basic tenets of Christianity are taken to heart, enormous damage will be done to the sales of:

  • armaments,
  • pornography
  • illegal drugs,
  • junk food,
  • many TV programmes,
  • gambling offers
  • and some sections of the film industry.

And the legal profession’s earnings will slump.

President and former General Eisenhower would have approved of the Synod’s decision. He said : “Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together” (farewell address)

 

 

 

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New Fleet Solid Support ships: cash-strapped MoD should look at the total cost-benefit of building in Britain

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Jeremy Corbyn is in Glasgow today, where – reversing New Labour policy – he will call for Navy shipbuilding contracts to stay in the UK.

The contract could lead to over 6,500 jobs in the UK, 1,800 of those in shipyards: “Our proposal would both sustain existing shipbuilding and supply chain jobs and create new ones – right here in Scotland and also across the UK.”

The MOD, which is alleged to have ‘lost controls of costs’, hopes for a cheaper option. Its spokesman added: “We are launching a competition for three new Fleet Solid Support ships this year and strongly encourage British yards to take part”.

“Until the new Fleet Solid Support Ships (FSS) arrive, these hardy veterans must stagger on into the mid-2020s” 

STRN points out that the need for these important ships was first stated in 2015 – and it is feared that the first ship will probably not be ready for sea until around 2025.

The three currently supporting ships supply ammunition, food and spares are “antiques built in the late 1970s and saw action in the Falklands War”. Corbyn warns:

“By refusing to help our industry thrive, the Conservatives are continuing their historic trend of hollowing out and closing down British industry. Over the course of the 1980s under the Tories, 75,000 jobs were lost in UK shipyards, leaving just 32,000 remaining.

“Our shipyards used to produce half of all new ships worldwide. Our current market share is now less than half a per cent. The Tories seem hell-bent on accelerating and deepening this industrial decline.”

SNP MSP for Glasgow Anniesland, Bill Kidd, is sceptical, saying: “Workers on the Clyde and people across Scotland haven’t forgotten Labour’s betrayal of the industry in 2014.

 

 

 

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Broken Britain 16: HMRC refuses to investigate money-laundering and tax fraud charges by largest Conservative donor

Three classes of British looting: which is the most culpable?

Professor Prem Sikka, Professor of Accounting at University of Sheffield and Emeritus Professor of Accounting at University of Essex, draws attention to the case of the UK telecoms giant Lycamobile, the biggest donor to the Conservative Party, which has accepted £2.2m in donations since 2011.

Her Majesty’s Revenue and Customs (HMRC) has refused to assist the French authorities and raid Lycamobile’s UK premises in order to investigate suspected money laundering and tax fraud.

Economia, the publication for members of the Institute of Chartered Accountants in England and Wales (ICAEW) which covers news and analysis on the essential issues in business, finance and accountancy, reports:

Following an initial denial (left, Financial Times), Economia confirmed that in an official response to the French government dated 30 March 2017,  a HMRC official noted that Lycamobile is “a large multinational company” with “vast assets at their disposal” and would be “extremely unlikely to agree to having their premises searched”, said the report.

The letter from HMRC to the French government added, “It is of note that they are the biggest corporate donor to the Conservative party led by Prime Minister Theresa May and donated 1.25m Euros to the Prince Charles Trust in 2012”.

This is an ongoing saga: in 2016 Economia noted: “The Tories have come under fire for continuing to accept donations of more than £870,000 from Lycamobile since December, while it was being investigated for tax fraud and money laundering”.

In 2016 In May it emerged that KPMG’s audit of Lycamobile was limited due to the complex nature of the company’s accounts. Later, KPMG resigned saying it was unable to obtain “all the information and explanations from the company that we consider necessary for the purpose of our audit”.

HMRC: “has become a state within a state”.

Prem Sikka (right) continues, “The House of Commons Treasury Committee is demanding answers to the Lycamobile episode – but HMRC is unlikely to prove amenable”.

In recent years, the Public Accounts Committee has conducted hearings into tax avoidance by giant global corporations such as Microsoft, Amazon, Google, Starbucks, Shire and others. The hearings have not been followed by HMRC test cases.

The Public Accounts Committee has also held hearings into the role of the large accountancy firms in designing and marketing avoidance schemes and exposed their predatory culture. In a telling rebuke to PricewaterhouseCoopers, the Committee chair said: “You are offering schemes to your clients—knowingly marketing these schemes—where you have judged there is a 75% risk of it then being deemed unlawful. That is a shocking finding for me to be told by one of your tax officials.”

Despite the above and numerous court judgments declaring the tax avoidance schemes marketed by accountancy firms to be unlawful, not a single firm has been investigated, fined or prosecuted.

There are real concerns that HMRC is too sympathetic to large companies and wealthy elites.

A major reason for that is the ‘revolving door’, the colonisation of HMRC by big business and its discourses: its current board members include non-executive directors connected with British Airways, Mondi, Anglo American, Aviva, PricewaterhouseCoopers and Rolls Royce.

After a stint at HMRC many of the non-execs return to big business. Corporate sympathies are therefore not counterbalanced by the presence of ordinary taxpayers or individuals from SMEs and civil society.

Sikka ends: “In such an environment, it is all too easy to turn a Nelsonian eye on corporate abuses and shower concessions on companies and wealthy individuals”. Read more here.

 

Why should we care?

Because tax revenue pays for the services used by all except the richest, the education health, transport and social services, increasingly impoverished by funding cuts imposed by the last two British governments.

The Shadow Chancellor has twice called for more rigorous examination and tightening of processes at HMRC to ensure that corporations and wealthy individuals are free from political corruption and pay fair rates of taxes.

Will the next government elected be for the many, not the few?

 

 

 

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Austerity 5: former Conservative MP deplores the effects of austerity

Matthew Parris writes in the Times, “the cracks are showing in austerity Britain”

We don’t think enough about local government, one of whose jobs it is to mend potholes. When in our own lives our nearside front tyre is shredded, the pothole, Parris believes, represents “a momentary twitching-back of one tiny corner of a great curtain, behind which lie, no, not potholes, but a million anxious human stories, caused in part by cuts in public spending”.

He adds that accidents due to potholes are usually relatively trivial compared with cuts which for others may have meant:

  • the loss of social care in dementia,
  • no Sure Start centre for a child,
  • the closure of a small local hospital
  • or the end of a vital local bus service.

Potholes are a parable for others that matter even more. Unfilled potholes put lives at risk and have become a symbol of the damage done to every walk of life by spending cuts.

All the pressures on those who run government, local and central, are to worry about the short-term. it is usually possible to leave issues like road maintenance, decaying school buildings, rotting prisons, social care for the elderly, Britain’s military preparedness or a cash-strapped health service, to tread water for years or even decades. “They’ll get by,” say fiscal hawks, and in the short-term they’re often right.

  • Nobody’s likely to invade us;
  • the NHS is used to squeezing slightly more out of not enough;
  • cutting pre-school provision is hardly the Slaughter of the Innocents;
  • the elderly won’t all get dementia at once;
  • there’s little public sympathy for prisoners;
  • teachers can place a bucket under the hole in the roof
  • and road users can dodge potholes.

Parris continues: “But beneath the surface problems build up. The old get older, and more numerous. Potholes start breaking cyclists’ necks. Care homes start going under. The Crown Prosecution Service begins to flounder. We run out of social housing. Prisoners riot. And is there really no link between things like pre-schooling, sports and leisure centres and local outreach work, and the discouragement of knife crime?”

“When New Labour was elected in 1997 we Tories groaned as it tipper-trucked money into the NHS, school building and other public services. Thirteen years later when Labour left office the undersupply was monetary, the red ink all too visible”.

Parris asks: “Must we forever oscillate like this?

One answer: Green & Labour Party leaders would meet these needs and avoid red ink by redirecting the money raised by quantitative easing.

 

 

 

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Broken Britain 15: “Cruel, rigid bureaucracy has replaced common sense in this country”

So writes Peter Hitchens, summarising the unease felt by many in his recent article. He was focussing on the events leading up to the anger felt about the treatment of the ‘Windrush generation’, regarded now ‘by most of us . . .  as something pretty close to family’.

He speaks of ‘the real lesson of the wretched treatment of longstanding British subjects who have been deprived of medical service, threatened with deportation and generally destroyed and trampled on by callous officials . . . deprived of the most basic freedoms and of entitlements they have earned by long years of working and taxpaying.’

After tracing the political trend from New Labour measures to Theresa May’s ‘Go Home’ lorries trundling around London’ he describes increasing ‘tough’ measures as a London liberal’s idea of what might please the despised voters.

Frankly it’s hard to see how the capital could function without foreign nannies, cleaners and gardeners

In a 2009 article, Andrew Neather reviewing the New Labour policies, ‘laced with scorn for working-class people worried about the immigration revolution’, said:

‘The results in London, and especially for middle-class Londoners, have been highly positive. It’s not simply a question of foreign nannies, cleaners and gardeners – although frankly it’s hard to see how the capital could function without them. Their place certainly wouldn’t be taken by unemployed BNP voters from Barking or Burnley.’

The post-Brexit plight of EU nationals

Last year there were reports about the post-Brexit plight of EU nationals who experienced the bureaucratic maladministration and occasional cruelty from which the country’s poorest have suffered for decades.

Universal Credit system

The most recent example, reported in The Financial Times, referred to the rollout of Britain’s “Universal Credit” benefits system, challenged by more than 120 MPs saying that delayed payments are leaving poor households exposed.

Food and heating

Recently Professor Prem Sikka tweeted about 21st century Britain: He linked to a BBC report about a separate survey for the Living Wage Foundation which says that a third of working parents on low incomes have regularly gone without meals, because of a lack of money. Around a half of those families have also fallen behind with household bills.

It also quoted Citizens Advice findings that as many as 140,000 households are going without power, as they cannot afford to top up their prepayment meters. The survey conducted by Citizens Advice found, “most households that cannot afford to put money in the meter contain either children or someone with a long-term health condition. Some people are left in cold houses, or without hot water”.

Sure Start

The Coalition and later Conservative governments’ cuts largely dismantled the Sure Start network, created by Labour to support families in the early years of their children’s development.

Youth Work

Unison has been working on this for some time – its 2016 report, A Future at Risk, found that £387m had been cut since the Tories took power. That’s over 600 youth centres and 140,000 places for young people.

People with disability

One of many austerity measures reported here is the cuts to school transport for disabled children. This, and many more examples of ‘cruel, rigid bureaucracy, may be seen on the website Disability United.

Sikka summarised: “Poorest families are going without food or power. Wealth is concentrated in relatively few hands and governments shower tax cuts on corporations and wealthy elites. Inequitable distribution of income/wealth is a recipe for social instability”.

 

 

 

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Francesca Martinez: a word on the latest Corbyn ‘mural’ outrage

While we’re all debating whether Corbyn’s a spy or a Putin stooge, or an anti-semite, people are dying in NHS corridors, disabled people are starving to death, our public services are being cut, our assets are being privatised, our wages are being driven down, our environment is plundered and polluted, and wealth and power remain in the hands of the 1%.

Francesca writes:

This is, as always, about politics. If anyone needs convincing, please read about other socialist leaders around the world. They are routinely called commies, anti-semitic, insane etc. It is an age-old tactic.

Corbyn can’t be touched on policy so they have to manufacture shit-storms.
He is a life-long anti-racist campaigner with a thirty year record of standing against racism in all its forms.

He is one of only 8% of MPs to have signed the five UK parliamentary motions that condemned antisemitism.

No other MP has such a record of commitment to fighting racism and anti-semitism.

While we’re all debating whether Corbyn’s a spy or a Putin stooge, or an anti-semite, people are dying in NHS corridors, disabled people are starving to death, our public services are being cut, our assets are being privatised, our wages are being driven down, our environment is plundered and polluted, and wealth and power remain in the hands of the 1%.

Make no mistake, this is a war.

If Corbyn goes, we, the 99%, all lose.

 

We will never achieve a more equal, democratic, humane and peaceful society, if we allow the elite to destroy anyone who stands up against them.

 

 

 

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