The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.
It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.
Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”
He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.
He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.
Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.
The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.
A step forward?
In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:
- In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
- This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
- We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.
But first give hope to many by electing a truly social democratic party.
Is the rainbow suggesting a new party logo?
Theresa May: “the government wants people to be able to manage their own (universal credit) budgets”
Yet again, the vulnerable suffer. Due to successive governments many now in need have been ill-educated, ill-nourished and under stress because they could not find work. In similar circumstances Mrs May and few of her colleagues would be managing their budgets well.
The introduction of universally paying housing benefit direct to landlord (stopped in 2008) was extremely helpful to those not able (or willing) to budget. It has been retained under universal credit and actually adds to the problems of landlords and tenants alike.
Quoting from a letter circulated by GAP Property during PMQs, Jeremy Corbyn said: “Will the prime minister pause universal credit so it can be fixed? Or does she think it is right to put thousands of families through Christmas in the trauma of knowing they are about to be evicted because they are in rent arrears because of universal credit?”
GAP Property said the introduction of universal credit would affect the vast majority of its tenants and it needed to take action to avoid a slew of rent arrears, which could put it out of business.
The company’s owner, Guy Piggott, said the letter was not intended to be threatening and he was pleased it had been highlighted by Corbyn at Prime Minister’s Questions on Wednesday.
“We are not planning to throw people out, but the prime minister should read this and recognise the problems . . . the majority of his tenants were on an average household income of about £17,000 a year. “People are already living hand to mouth . . . At best, if they need to wait six weeks to be paid, it will be the end of February before it comes, and by then they might have spent the money they had on feeding their families or heating their homes”.
Paragraphs from a snapshot of the letter:
Piggott said many landlords would soon refuse to take people who were on universal credit. “A lot of landlords are now saying enough is enough”.
Jeremy Corbyn said: “Will the prime minister pause universal credit so it can be fixed? Or does she think it is right to put thousands of families through Christmas in the trauma of knowing they are about to be evicted because they are in rent arrears because of universal credit?”
Mrs May replied that she wanted to “look at the issue of this particular case” but said the government wanted people to be able to manage their own budgets and expressed less than impressive hopes that the government could act next week to cut the six-week wait for payments to five.
Today The Times reports that the chancellor is considering slashing the annual tuition fee universities can charge to £7,500, in this autumn’s budget, after young voters swung behind Jeremy Corbyn when he pledged to abolish fees if in government.
In 2008 student loans were removed from protective legislation, by Section 8 of the Sale of Student Loans Act and the Conservative-led coalition increased fees to a maximum of £9,000 a year from the 2012/13 academic year. Fees charged by English universities are now capped at £9,250 but can rise with inflation from this year.
The political/public argument
At the time, minister Alan Johnson said “There is nothing progressive about working people, many of whom will get nowhere near a university, cross-subsidising mainly middle-class students to have a completely free higher education.”
The political/corporate argument
As the FT’s Miranda Green and Alice Hancock report, since the first graduate contribution the UK has stayed high up the international university rankings, with a ‘lucrative higher education export business’, as imposing new buildings spring up on campuses, student flats proliferate and vice chancellors receive average pay packets of £277,834.
Alongside this boom in construction and salaries however, doubts are being raised about the quality of tuition and the content of many degrees now being offered. A comparatively mild one came from Alice Hancock: “In all the discussion over price, there has been little talk of product. I’m happy to make my monthly donation towards my education: it led me to a better job. But I attended a university where I received an average of 15 hours of tuition each week, much of it one-on-one. This is far from commonplace”.
To pay for this expansion, interest rates on student loans are now three percentage points above the retail prices index of inflation; from this autumn they will carry 6.1% interest – more, as Estelle Clarke, Advisory board member of the Intergenerational Foundation points out in the FT: the Student Loans Company ‘hidden in the small print’, charges a monthly compound interest rate of 6.1% . . .
“It ensnares many student/graduate borrowers in a debt trap. . . Less well-off students suffer twice as much with these punitive costs if they have maintenance loans as well as tuition fee loans. For, instead of having loans of roughly £30,000 (tuition fees), their loans will be roughly £60,000 (tuition fees and maintenance loans). Imagine the monthly compounding interest cost on that at 6.1%!”
She adds: “I believe that if more understood what education costs our graduates, monthly compounding rates would have been confined to the dustbin of immoral exploitation. Were student loans regulated, neither punitive compounding interest rates nor inadequate explanations by the SLC would be tolerated”.
Jeremy Corbyn’s £11bn pledge has proved appealing but the FT journalists fear that if he were to act on it in power, a booming, world-class higher education sector would be plunged into financial crisis.
As it is the 99% will pay for government’s corporate-friendly decisions
If, as the Higher Education Policy Institute projects, 71% of students will never repay loans, who will eventually repay the costs of the campus buildings and student flats? The Telegraph quotes Nick Hillman, director of the institute refers to this as a “very substantial” subsidy from future taxpayers to higher education which is “concealed in the system”.
The Institute of Fiscal Studies’ report explains that if graduate earnings are 2 percentage points lower than expected, the long-run government contribution increases by 50%. It calculates that in the long term the government (the taxpayer) will foot the bill for unpaid student loans, which are written off after 30 years: “the expected long-run cost to the taxpayer of HE for the 2017 cohort is £5.9 billion”.
As economist Alison Wolf argues in her 2016 report, many disadvantaged young people would be better served by funding one or two-year high-quality technical courses — or better early years education. But the political corporate alliance would see little profit in doing this.
The Telegraph reports that AELTC appears to anticipate ‘displays of Corbynmania’, during this year’s event.
Sharing mainstream alarm at the unprecedented scenes witnessed at last month’s Glastonbury festival, the All England Lawn Tennis Club, a private members’ club which hosts the Wimbledon Championships, hopes that warning notices, “No political slogans!”, on display at the entrance gates will be taken to heart by Corbyn’s supporters and other political activists.
This is a continuing manifestation of a threatened establishment – a general right-wing demonisation of Corbyn.
Corbyn is the norm – in tune with European heads of state
A more stable response comes from many well-informed commentators who explain that Corbyn’s ‘extremist’ ideas are actually in line with mainstream European policy and practice (above: European Socialist heads of state).
In the Financial Times, Des Freedman, Professor of Media and Communications, Goldsmiths, University of London, has remonstrated with economist Tim Harford, author of the latest two epithets, who accused Corbyn of ‘scapegoating’ and ’xenophobia’ (re requisition of empty foreign-owned property to house the Grenfell survivors).
Freedman believes that this ‘unwarranted criticism of Jeremy Corbyn’s response to the (Grenfell Tower) tragedy should be placed in the context of the 2016 FT report ‘s finding of some 9,169 vacant flats and houses in the borough of Kensington and Chelsea, adding:
“It is not “xenophobic” to suggest that these homes could be usefully occupied by those who actually need somewhere to live. It is simply common sense”.
*Des Freedman Professor of Media and Communications, Goldsmiths, University of London
Today the National Audit Office – the public spending watchdog – recommends that the government reconsider whether more nuclear plants are needed and reproves ministers for failing to consider alternative ways of the costs of the Hinkley nuclear power plant, which could have halved the overall cost to households.
The NAO found that the case for building Hinkley Point had weakened while the government negotiated the final deal, partly because alternative low-carbon sources of power, such as wind and solar, became cheaper.
The plant is under construction in Somerset and is due to open in 2025, supplying 7% of Britain’s electricity. However, the NAO report recommends that the government produce a “plan B” to fill the gap in power generation if the project is delayed or cancelled. It notes that projects using the same reactor design in France, Finland and China “have been beset by delays and cost overruns”.
Note senior politicians or members of their families lobbying for the nuclear industry
- Three former Labour Energy Ministers (John Hutton, Helen Liddell, Brian Wilson)
- Gordon Brown’s brother worked as head lobbyist for EDF
- Jack Cunningham chaired Transatlantic Nuclear Energy Forum
- Labour Minister Yvette Cooper’s dad was chair of nuclear lobbyists The Nuclear Industry Association.
- Ed Davey, Lib Dem energy minister’s brother worked for a nuclear lobbyist. When failed to be re-elected went to work for the same nuclear lobbying firm as his brother.
- Lord Clement Jones who was Nick Clegg’s General Election Party Treasurer was a nuclear industry lobbyist.
- Tory Peer Lady Maitland is board member of nuclear lobbyist Sovereign Strategy.
- • Bernard Ingham, Thatcher’s press spokesperson, has been nuclear lobbyist for over 25 years.
- Tory Peer Lord Jenkin was a paid consultant to nuclear industry.
- Tory MEP Giles Chichester is president of nuclear lobbyists EEF
Comment from a Times reader who has long held significant reservations about Corbyn and McDonnell, ”Putting aside their sixth form foreign policy, I’m just about willing to give Labour a shot. If we’re going to have somebody (botching) the public finances I’d rather they did it out of well-meaning innumeracy – with some good ideas like a National Education Service & renationalised railways . . . “
Other nuclear industry lobbyists including politicians, journalists, academics and lobbyists are listed here: http://powerbase.info/index.php/Category:Individuals_linked_to_the_push_for_nuclear
On the blue leaning Labour List website, Cllr Luke Akehurst refers to ‘entryists’: “We should continue to be intolerant of any sectarian antics from Momentum . . . We must fight to keep Labour as a broad church democratic socialist party with many traditions within it”.
Clive Efford, who leads the 75-plus Tribune group of Labour MPs relaunched last year, was one of several former critics who have heralded Corbyn’s performance in the campaign. He spoke out on the same site, calling for the existing shadow cabinet to be rewarded by keeping their jobs after Corbyn’s health spokesman, Jon Ashworth, urged the leader to “strengthen the squad”.
The shadow team were appointed in the aftermath of the summer “coup” last year, and several of the group, including Barry Gardiner, Angela Rayner, Andrew Gwynne, Emily Thornberry, Ian Lavery, Richard Burgon and Rebecca Long-Bailey proved to be effective shadow ministers. Efford said this work should now be recognised: “Jeremy has got a shadow cabinet that remained loyal and allowed him to perform extremely well during the general election.”
“We questioned whether voters would be prepared to get behind Jeremy at a general election. The opinion polls suggested we were right about that. But it has to be said that Jeremy is a brilliant campaigner and did extraordinarily well. People have had a good look at him and found that they can get behind him. They see him as a credible leader.”