Category Archives: Economy

Bad decisions by government 37 – third runway at Heathrow

 

UK aviation policy is primarily predicated on the requirements of airport operators, major airlines and the Treasury – the needs of passengers come last says Steve Beauchampé in The Birmingham Press. 

The governments long-awaited – and unsurprising – decision to proceed with construction of a third runway at London Heathrow is fundamentally flawed, supported with redundant arguments and highly questionable financial assessments. If the UK had a comprehensive and comprehensible national aviation strategy Heathrow would not be operating at anything like 95% of capacity.

That it does so is the result of a system that essentially forces millions of UK passengers per annum to travel long distances, often in arduous and stressful conditions, to use both Heathrow and London’s two other main airports (Gatwick and Stansted) at great cost both to themselves and the environment. rather than utilising their local airports, many of which are working to a fraction of their capability.

Birmingham International Airport handled 12.9m passengers in 2017 but could cope with around double that number. Meanwhile, Nottingham East Midlands welcomed a paltry 4.88m whilst major population centres such as in the North East, South West, South Wales and along the south coast are all but bereft of decent flight choices. This is not only down to the London-centric approach which blights so many activities in the UK, but the failure of successive governments to challenge and take on the vested interests of London airports and the major airlines.

Two key arguments put forward in favour of a third runway at Heathrow are particularly fallacious

The first is that Heathrow must continue developing as a ‘hub’ airport, competing for passengers not with Birmingham, Manchester or even Gatwick, Stansted and Luton, but with Amsterdam, Frankfurt and Dublin and increasingly Dubai!

So a third (and later probably fourth and fifth) runway at Heathrow is essentially required to allow the airport’s operator Heathrow Airport Holdings to attract passengers who will never leave the airport environs but whose visit is solely to transfer from one aeroplane to another, Great news for HAH, who enjoy increased landing fees as a result, and good news for the Treasury, who collect airport tax each time that a passenger takes a flight.

But it is hardly good news for UK travellers who are not being provided with flights from their local airports to the locations that they want and at a time when they want to fly. Indeed the hub strategy encourages those in the north of England, Northern Island and Scotland to take domestic flights to Heathrow and then transfer planes to reach their ultimate destination.

Yet hub airports may soon be an outdated concept, with technological improvements meaning that modern aeroplanes will be able to fly further (and faster) without the need to refuel (its already possible to fly non-stop from London to Sydney). Point-to-point flying seems more likely to be the way ahead. 

The second argument in favour of Heathrow runway expansion is that many airlines do not want to fly out of the UK’s ‘regional’ airports (with the possible exception of Manchester, which handled 27.7m passengers in 2017) and would be unwilling to give up valuable landing slots at Heathrow.

But this argument is unacceptable. We would not tolerate train operators refusing to serve smaller stations nor bus companies running services only on main routes. To combat this attitude the number of slots available at Heathrow needs to be limited rather than endlessly expanded, whilst the national airport strategy that Conservative MP and anti-Heathrow Runway 3 campaigner Justine Greening called for earlier this week should focus on ways to create an environment which encourages airlines to relocate services outside of London and the South East.

This is particularly apposite given that both Birmingham and Manchester airports will be stops on the HS2 network by 2030. And whilst there is a real risk that limiting slots at Heathrow will result in some airlines pulling routes and services out of the UK altogether, the country is a large enough aviation market to offer sufficient paths to profit that most such withdrawals will likely be less than crucial and, in some cases, perhaps temporary.

In agreeing to support Heathrow’s third runway the government have committed to paying £2.6bn in compensation to those communities near to the airport that will be destroyed or significantly affected by the project. To which can be added an estimated £10bn in public funding for the new infrastructure and environmental measures required to support the expansion.

How much better to invest this money throughout the UK to create a national airport infrastructure to meet the needs of the travelling public, and one befitting the worlds fifth largest economy.

 

 

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Broken Britain 18: captured by corporate interests?

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George Monbiot recently pointed out that the Commons report on the Carillion fiasco is one of the most damning assessments of corporate behaviour parliament has ever published. It trounces the company’s executives and board and laments the weakness of the regulators.

But, as Prem Sikka said in his April article, it scarcely touches the structural causes that make gluttony a perennial feature of corporate life.

Both agree that the problem begins with an issue the report does not once mention: the extreme nature of limited liability. Sikka points out that this system, under which executives are only financially accountable for the value of their investment, has also benefited frauds and led to the self-enrichment of executives at the expense of workers, consumers, creditors, pensioners and citizens.

Monbiot adds that the current model of limited liability allowed the directors and executives of Carillion to rack up a pension deficit of £2.6 billion, leaving the 27,000 members of its schemes to be rescued by the state fund (which is financed by a levy on your pension – if you have one). The owners of the company were permitted to walk away from the £2 billion owed to its suppliers and subcontractors. (Left: the former Carillion chief executive Keith Cochrane in Westminster after appearing before the Commons work and pensions select committee)

Monbiot continues: “There is no way that fossil fuel companies could pay for the climate breakdown they cause. There is no way that car companies could meet the health costs of air pollution. Their business models rely on dumping their costs on other people. Were they not protected by the extreme form of limited liability that prevails today, they would be obliged to switch to clean technologies”.

So what is to be done?

Prem Sikka (right) proposes that the bearers of unlimited risks and liabilities should be given rights to control the day-to-day governance and direction of companies.

He advocates including employees and citizen/consumers on company boards – because both ultimately have to bear the financial, health, social and psychological costs associated with environmental damage, pollution, poor products, industrial accidents, loss of jobs, pensions and savings. Through seats on company boards, they could secure a fairer distribution of income, challenge discrimination, curb asset-stripping and influence investment, training and innovation.

Across the 28 European Union countries (plus Norway), most have a statutory requirement for employee representation on company boards – unlike the UK, Belgium, Bulgaria, Cyprus, Estonia, Italy, Latvia, Malta and Romania.

George Monbiot proposes a radical reassessment of limited liability.

He points out that a recent paper by the US law professor Michael Simkovic proposes that companies should pay a fee for this indemnity, calibrated to the level of risk they impose on society. He adds, significantly, that as numerous leaks show, companies tend to be far more aware of the risks they inflict than either governments or the rest of society. Various estimates put the cost that businesses dump on society at somewhere between 4% and 20% of GDP

His own ‘tentative’ and ingenious proposal is that any manager earning more than a certain amount – say £200,000 – would have half their total remuneration placed in an escrow account, which is controlled not by the company but by an external agency. The deferred half of their income would not become payable until the agency judged that the company had met the targets it set on pension provision, workers’ pay, the treatment of suppliers and contractors and wider social and environmental performance. This judgement should draw on mandatory social and environmental reporting, assessed by independent auditors.

If they miss their targets, the executives would lose part or all of the deferred sum. In other words, they would pay for any disasters they impose on others. To ensure it isn’t captured by corporate interests, the agency would be funded by the income it confiscates.

Monbiot then says “I know that, at best, they address only part of the problem” and asks, “Are these the right solutions?

  • support them,
  • oppose them
  • or suggest better ideas.

He ends: “Should corporations in their current form exist at all? Is capitalism compatible with life on earth?”

 

 

 

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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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Political action in the rural areas of India and Northern Ireland (UK)

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For many years international agencies have promoted a school of thought that says it is cheaper to import food than to grow it within the country, comments Devinder Sharma (below, right).

In December he told Rediff.com’s Syed Firdaus Ashraf:

“Rural Gujarat has voted against the influential ruling BJP. During the 2014 elections, Prime Minister Narendra D Modi had promised that if elected his government would give 50% profit over the cost of production as recommended by the (M S) Swaminathan committee and rural India voted conclusively for the BJP – but farmers are still waiting for the promise to be delivered”.

“The Reserve Bank of India’s governor used to say that the biggest reforms would be when farmers are moved out from the villages into the cities, because cities are need of cheaper labour. Cheaper labour is required for infrastructure, real estate and highways. In other words, agriculture is being sacrificed to keep economic reforms alive”.

Farmers need a fair price: cost of production plus

An article by Lancashire farmer, Kathleen Calvert, issued as a press release by local business, Dugdale Nutrition, stressed: 

“Maintaining viable dairy farms not only protects livelihoods of farming families and others directly involved, it also makes a major contribution to local economies and the future of businesses, jobs, and families in the locality”.

Ruth and Richard Burrows, Devonshire farmers, assembled suppliers representing 3000 others whose livelihoods depend on them and other farmers. A photograph was published (right, faded newsprint, The web of rural ruin, Richard Price, Daily Mail, 23.9.99) with notes giving the names and roles of the people pictured.  Mrs Burrows said: “They are living proof of the importance of the spending power of the farmer and how enormously important agriculture is in terms of the entire economic structure around here. The rural communities of Britain tick over on a system of mutual dependency of which the farm forms the hub. If it goes to the wall, dozens of ancillary trades in both town and countryside suffer”. Read more here.

Farmers organise politically in UK

As talks are under way at Stormont, William Taylor, speaks for Northern Ireland Farm Groups, which represents several food production sectors – now including the National Beef Association – and is concerned about the future of 25,000 SME family farmer businesses.

Northern Ireland Farm Groups’ meeting

A bill, written by Daniel Greenberg, a barrister who specialises in legislation and is Editor of OUP’s Statute Law Review, is to be taken forward.

It proposes that farmgate prices in NI return to farmers a minimum of the cost of production, plus a margin inflation linked, that would give 20,000+ new jobs and prosperity across the province in towns, cities and countryside alike.

Their proposals have been well-received by several parties and unions, and Claire Sugden from Coleraine, Independent (the Justice Minister in the former assembly) told the farm groups that ‘she was of a mind to take legislation on farm gate prices forward’.

Legislation on farmgate prices for Northern Ireland according to the Gosling Report, would return 10-20,000 jobs+, save Stormont £280million+ in welfare costs and bring prosperity back to Northern Ireland. 

In both countries, as Sharma comments, “What farmers need is income, a profit over the cost of production. To keep food inflation in control, successive government have denied farmers their rightful income”.

 

 

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Carillion provokes MP’s broadside: “taxpayer-funded services should be conducted in an ethos of public service rather than for private advantage”

Major banks and credit insurers are calling on the government to ‘step in’, as Carillion’s debts soar and ‘huge write-downs’ are announced on the value of several old contracts.

Some – according to the Financial Times – are seeking a taxpayer guarantee for the company’s debt and assurances that Carillion will be allowed to compete for future contracts, despite the company’s troubled state. Oliver Dowden, newly promoted to the frontbench, says that the government is making contingency plans for Carillion folding.

If Carillion goes under, writes MP Jon Trickett, “We would effectively be paying for these services twice. This government has socialised the risk but privatised years’ worth of profit for shareholders . . . it is allowing firms with public contracts to pay millions to private shareholders as the public suffers from cuts to disability benefits, schools and the NHS”. He adds:

“They are in debt to the tune of £1.5bn, while being valued at less than £100m and are being investigated by the Financial Conduct Authority over financial statements issued in the run-up to July’s profit warning . . .and if they fold, Britain could face a huge bailout so that our schools, hospitals and train lines keep running”.

Will the 99% bail Carillion out?

The government now relies on this contractor for a wide range of services. The Financial Times lists Carillion’s major contracts in the transport, defence/security and health sectors and points out that Labour’s Shadow Business Secretary has asked why ministers continued to sign off major contracts with the company even after it issued a profit warning in July 2017.

Theresa May’s new Cabinet ministers have – nevertheless – confirmed that they still intend to continue with the privatisation and outsourcing of public services to private firms which then make a profit at the expense of the taxpayer.

Some politicians and party members have, through directorships, shareholdings or the employment of family and friends, a vested interest in these companies, many of which donate to Conservative party funds, hoping to ensure another Conservative government.

MP Jon Trickett, shadow minister for the cabinet office, whose principled political life is outlined here, presents the view of ‘Corbyn Labour’, that taxpayer-funded services should be conducted in an ethos of public service rather than for private advantage: “Whether that’s to run welfare payments to those receiving universal credit, running hospitals or administrating schools in huge academy chains . . . “

He points out that when these firms cannot make good on their obligations under these contracts the British public picks up the bill, citing the termination of Virgin’s contracts on the East Coast main line.

The MP adds: “I represent a former mining area, which hasn’t seen meaningful private investment in decades, and little public investment since the 2010 election. Some of the poorest people in the country, with some of the worst prospects due to years of Tory government, live there. They have seen private firms make profit out of their benefits, their schools and crisis-stricken NHS services”. He ends by giving an assurance:

“Labour would reverse the presumption in favour of outsourcing and provide more cost-effective services, treating workers better by running many services in-house”.

Jon Trickett’s article: https://labourlist.org/2018/01/jon-trickett-crisis-at-carillion-reveals-the-risks-in-tory-outsourcing-dogma/

 

 

 

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FT: Populism is failing, but it is too soon to cheer: tame it and regain control!

The Financial Times’ Philip Stephens focusses on what he calls ‘populism’. He deplores the ‘electoral insurgency’ of the past few years leading to far-left and far-right parties winning significant vote shares across Europe.

After highlighting the failures and inconsistencies of the Trump government and the Brexit negotiations he warns the ‘hardliners’ in Mrs May’s cabinet that their choice is between:

  • swallowing a softer version of Brexit
  • or breaking with the prime minister
  • so risking a general election and a victory for Jeremy Corbyn’s Labour Party.

Adding “It is just possible that Brexit may prove too difficult to actually happen”

Last year Business Insider reported that the former head of the British civil service, Gus O’Donnell, told an LSE event that politicians need to focus on voters’ feelings of wellbeing to counter the rise of populism and win elections.

Linked to http://uk.businessinsider.com/gus-odonnell-focus-on-wellbeing-to-counter-populism-2016-12

His Times colleague, Gideon Rachman adds:The belief that the economic system is unjust has stoked the rise of rightwing and leftwing populism across the west”.

He continued by saying that until the shocks of 2008, centrist politicians in the west were able to offer a morally coherent view of the economy: a free-market economy would reward effort and spread opportunity. The creation of the global market system was reducing inequality and poverty across the world.

After the financial crisis, however, the “globalists” (to use a Trumpian term) began to lose the moral arguments and – Rachman continued – the fact that banks were bailed out as living standards stagnated, offended many voters’ idea of natural justice.

Stephens’ advice: centrist parties will win back support only when they separate populist leaders from their supporters — when they recognise that those voting for extremists are not by and large the “deplorables” described by Hillary Clinton and – belatedly – he admits those voters have real grievances — economic, social and cultural and offers a strategy to win back their lost support:

“Map an alternative route for society’s left-behinds”, not to do them justice, but because it is expedient:

Long-discarded notions should be disinterred:

  • progressive taxation,
  • active competition policy
  • and social equity

He ended lamely by asking: “And what, after all, was actually wrong with the social market economy?”

 

 

 

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Jeremy Corbyn’s ‘well-received’ address at the CBI’s annual conference

The Financial Times reported on Jeremy Corbyn’s ‘well-received’ address at the CBI’s annual conference in London on Monday.

Mr Corbyn said to the 1,300 delegates that there was “common ground” between business and the Labour party on the threat a “no deal” on Brexit posed to the economy. Guarantees are needed now to stop firms cutting the UK out of their business models. He continued:

“Many of you feel no closer to having the clarity about the direction of travel you so desperately need [than a year ago]” – the cause: “chaos and confusion at the heart of government”.

He added that time is running out and guarantees are needed now to stop firms cutting the UK out of their business models. He said a transitional arrangement was needed immediately “so that businesses know they won’t face a cliff-edge Brexit when the two year negotiating period is up” and that EU citizens working in the UK should be unilaterally guaranteed full rights to remain: “We agree on the need to signal that the UK remains open to the rest of the world, that Europe is not the enemy,” he said.

The FT’s view is that delegates at the conference appeared impressed by Mr Corbyn’s pro-business tone. Consultant Dina Medland said on Twitter that watching Mr Corbyn address the conference was like “switching from a soap suddenly to a hard news story about human issues — extraordinary delivery”.

Others applauded the confidence of his delivery.

Carolyn Fairbairn, CBI director-general, said: “Labour are right that agreeing a transition deal as soon as possible is mission critical to maintain business confidence. There is cross-party agreement on this now and so this is the time for urgent action.”

Mr Corbyn repeated calls for employers to give British workers a pay rise, and said a Labour government would raise taxes and nationalise utility companies. Ms Fairbairn responded: “Industrial strategy and Brexit must be focused on building a fair, innovative and productive UK economy where society benefits.”

Cityam focussed on Ms Fairbairn’s message highlighting the mainstream business belief that “competitive markets are the best way to improve people’s lives. Abandoning this model will hurt those who need help most and make the UK a laggard in the global race for investment”.

The Telegraph’s article said much the same as the FT and the BBC, belying its ‘fake’ headline: “Businesses reject Jeremy Corbyn’s wooing and warn he would trash Britain’s economy”.  

Judge for yourself: see the far more substantial and interesting video or transcript https://www.youtube.com/watch?v=hKNQNa_2anI 

Transcript by Press Labour: http://press.labour.org.uk republished on Watershed.

 

 

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Follow India’s lead: increase waterway freight, reduce emissions and accidents

As Anil Sasi (Indian Express) notes: “Inland waterways are a far more efficient mode of transportation than either road or rail, considering that just a single mid-sized barge has the dry-cargo capacity equivalent to 50 trucks or over 10 railcars. As a consequence, transportation of cargo over inland waterways offers the advantage of both lowering carbon dioxide emissions and curbing the rate of road accidents, where India has the dubious distinction of being among the worst in the world”. 

The Indian government passed The National Waterways Bill in March. The Statement of Objects and Reasons of the Bill states that while inland waterways are recognised as a fuel efficient, cost effective and environment friendly mode of transport, it has received far less investment than roads and railways. Large rivers and canals across the country have been designated as national waterways, to be developed to enable more movement of goods and passengers.

Britain’s Commercial Boat Operators’ Association (CBOA) agrees with its statement recommending the carriage of bulk goods on waterways. Goods in India travel by congested road and rail networks, which increases the costs of trade logistics by as much as 18% of the country’s GDP.  The government statement continues: “Although it is cheaper, more reliable and less polluting than transporting them by road or rail, India has yet to develop this cheaper and greener mode of transportation”. (Read on here: CHS-Sachetan)

In April the World Bank announced a $375 million loan to help the Inland Waterways Authority of India to put in place the  infrastructure and navigation services needed to develop National Waterway 1 as an efficient ‘logistics artery’ for northern India. The loan will enable the design and development of a new fleet of low-draft barges capable of carrying up to 2000 tonnes of cargo in these shallower depths.

Section 3 of its 322 page 2016 report: Consolidated Environmental Impact Assessment Report of National Waterways includes an assessment of inland waterway transport’s impact on climate change, concluding that this is the most efficient and environmental friendly mode of transportation, involving least CO2 generation when compared with rail & road. An estimate of the CO2 emissions from different modes of transportation for the same quantity of cargo for a similar distance is that CO2 would be reduced and a net saving of 4.54 million tonnes realised over a period of 30 years (till 2045).

A gradual expansion of waterway freight transport would reduce transport costs, road accidents and urban air pollution.

In both countries manufacturers, the construction industry and agricultural producers would be enabled to use waterway transport to reach markets at home and abroad.

 

 

 

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Farm Groups seek legislation: the AHDB quango should note their proposal

At the moment, due to imports, this country’s food security ratios are high – see map:

http://foodsecurityindex.eiu.com/Country

But 28,000 farms in England went out of business (132,400 in 2005 to 104,200 in 2015, DEFRA), many due to farmgate prices below production costs.

Meanwhile the AHDB advisers inflicted on them thrive, advertising for Sector Strategy Directors to be paid £62,000 – £76,000 for working 35hrs per week

The farmer drawing attention to this – who works far longer than 35 hours for far less return – comments “How easy it is to spend someone else’s hard earned income. An independent organisation (independent of both commercial industry and of Government)??”

A government website explains that the Agriculture and Horticulture Development Board is a non-departmental public body funded by a compulsory levy on British farmers. growers and others in the supply chain.

 

 

Independent?

It “has a role in the processes of national government and operates to a greater or lesser extent at arm’s length from ministers”.

AHDB advisers working half the hours at more than double the average farming income frequently offer sage advice: their mantra: “improve productivity”. The FT quotes reflections by Phil Bicknell, market intelligence director at the AHDB who sees only three options:

  • The most desirable: securing a free-trade deal with the EU,
  • The least: putting up protectionist barriers or
  • opening up trade to low-cost competition from around the world.

Notably absent is any sustained concern about a fair price deal for food producers and the prudence of supplying the home market first before trading any surplus.

Between 2013 and 2015, according to figures from the House of Commons library, smaller producers left the industry and during that period, milk prices fell by about 30%. 

The Gosling Report finds that for farmers in Northern Ireland the sale price for the majority of commodities they produce does not even cover the input costs; this applies equally to most other British farmers. Paul Gosling comments:

“Meanwhile, large processors, large corporate food wholesalers and corporate retailers continue to maintain their enormous unsustainable profits”.

Farmers in the rest of Britain in the same position should act with those in Northern Ireland. They require legislation similar to that submitted by Fairness for Farmers in Europe (an association of 30 farm organisations in Britain, Ireland and the EU) to the 2010/11 CAP review. This would state that farmers must be paid a minimum of the cost of production plus a margin inflation linked for their produce; if the ‘free’ market moves up the farmer will get the benefit, however, when it falls the legislation is there to provide the safety net limit of drop.

AHDB please note: as a matter of urgency with Brexit negotiations under way, all farm groups could campaign for legislation on just farmgate prices, stating that a minimum of the cost of production plus a margin inflation linked must be paid at the farmgate for all food produced in Britain.

Readers wishing to know more about NI Farms Groups’ campaign should contact:

William Taylor

56 Cashel Road, Macosquin, Coleraine, BT51 4NU

Tel. 028 703 43419 / 07909744624 

Email taylor.w@btconnect.com

 

 

 

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Austerity 7: “Governments are balancing budgets on the backs of the poor” (John Grisham)

1. State Pensions

2.6 million women born in the 1950s will ‘lose out’ because of changes to pension law: “while corporations and the richest individuals receive tax breaks”

WASPIs (Women against state pension inequality) protest outside Parliament. Their aim: to achieve fair transitional arrangements for women born in the 1950s, for whom the state pension age is being raised from 60 to 66 by 2020.Photo: WASPI Campaign/Twitter

A Bournville reader draws attention to an article in Welfare Weekly reporting the findings of a new analysis by the Labour Party which reveals that tens of thousands of Theresa May’s constituents will be adversely affected by her decision to bring forward changes to the state pension age. The state pension age for men and women will be equal at 65 at the end of 2018, before rising to 66 in 2020 and then 67 in 2028. This will then rise again to 68 between 2037 and 2039, meaning those born between 1970 and 1978 will be made to wait an extra year before becoming eligible to claim.

Data obtained by Labour from the House of Commons Library finds that nearly 37 million people in total will be affected, including 56,547 people in Theresa May’s constituency of Maidenhead. 61,753 people who are under the age of 47 will be hit by the changes in Chancellor Philip Hammond’s constituency of Runnymede and Weybridge. 59,290 people will also be affected in the Work and Pension Secretary David Gauke’s constituency of South West Hertfordshire.

A BBC video clip showed that an outline given by MP Guy Opperman (right, Work and Pensions) of government measures to assist older people back into work, including apprenticeships and retraining received a mixed reception.

Labour’s Shadow Work and Pensions Secretary, Debbie Abrahams, said: “Thanks to the Tories increasing the state pension age, 36.9m people will be forced to work longer, at the same time that evidence indicates life expectancy has stalled in some places and is reducing in others.” She called on Tory MPs to “explain to the tens of thousands of people in their constituencies why the burden of Tory austerity is being pushed on them, while corporations and the richest individuals receive tax breaks.”

Abrahams added: “Theresa May should answer her 56,547 constituents, and the 36.9m people across Britain, whose hard-earned retirements are being postponed because of her Government.”

Labour is to begin a “national state pension tour” to draw attention to how many people will be affected and voice their opposition to the policy.

 

 

 

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