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A reader comments. “The FT seems to be taking the prospect of a Labour government seriously”

Over the next week, the Financial Times will be examining the impact of a prospective Corbyn government on the UK economy as memories of the financial crisis have reinforced the public’s perception of a system rigged against them – despite the ongoing exposures of the excesses of the financial services industry.

 FT: “A Corbyn government promises a genuine revolution in the British economy”

It looks at the plans already announced, describing them as “breathtaking in scope”. These include:

  • the nationalisation of rail, water, mail and electricity distribution companies,
  • significantly higher taxes on the rich,
  • the transfer of 10% of shares in every big company to workers (with a maximum annual £500 dividend,
  • reform of tenant rights, including a “right to buy” for private tenants,
  • borrowing to fund public investment.
  • a four-day week,
  • pay caps on executives,
  • an end to City bonuses,
  • a universal basic income,
  • £250bn to fund a National Investment Bank to build 1m social homes,
  • an increase in the minimum wage,
  • higher income tax for those earning over £80,000,
  • a new “excessive pay levy”,
  • a £5bn-a-year financial transactions tax,
  • a corporation tax rise from 19p to 26p in the pound,
  • the break-up of the Big Four auditors,
  • a ban on all share options and golden handshakes,
  • curbs on the voting rights of short-term shareholders,
  • the public naming of all workers on over £150,000 a year,
  • the nationalisation of parts of the struggling steel industry,
  • opposition to the Trident nuclear deterrent and
  • delisting of companies that fail to meet environmental criteria from the London Stock Exchange.

Thatcherism reversed

Mr Corbyn’s supporters see rebalancing of control from shareholders, landlords and other vested interests to workers, consumers and tenants, “reorienting an economy that works for those at the top but not for the young, the unemployed or those struggling on zero-hours contracts” as “fairness”. But to political opponents, high-earners, business owners, investors and landlords, it is alarming.

On September 1st, the FT declared: “A Corbyn government is no longer a remote prospect. With UK politics scrambled by Brexit, the landscape is unrecognisable”.

Lord David Willetts, a former Conservative cabinet minister who now chairs the Resolution Foundation think-tank, comments: “Brexit is so radical and such a massive gamble, breaking a 40-year trading arrangement, that it’s hard for Tories to say to people ‘don’t gamble on Labour”. They just think: ‘who’s the gambler?’”

Brexit as an opportunity: in his speech to the 2018 Labour conference, Shadow Chancellor John Donnell noted: “The greater the mess we inherit, the more radical we have to be.” 

Lord Bob Kerslake, former head of the civil service, who is helping Labour to prepare for government, believes Labour’s manifesto pledges are indeed ‘radical’ but can be delivered. He realises that there are questions about how much of the Corbyn-McDonnell policy platform can be carried out if there is a minority government and stresses the need to make significant progress on it in a first term.

As the FT wrote:Polling data show that voters currently evince little enthusiasm for a Corbyn government. And yet the existential shock of Brexit, combined with his appeal to younger voters and families fatigued by nearly a decade of austerity, could still deliver the unexpected”. 

 

 

 

 

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Murdoch Times warns of a ‘revolution’ – so always keep ahold of nurse for fear of finding something worse

Today in the Sunday Times leader, the un-named author/s summarised the results of the local elections before moving on to what they called “The real story of these elections . . . the journey towards self-destruction of a once-great political party, the Tories” – opening the way for a Labour government led by Jeremy Corbyn.

The Momentum myth

They described the ‘hard-left takeover’ of what until four years ago was a moderate, centre-left party continuing. “Should it succeed in taking Mr Corbyn and John McDonnell into Downing Street, the revolution would be complete”. Pictured, so-called ‘hard-left’ revolutionaries in our second city: stable, thoughtful, courteous, concerned.

The so-called progress that has enriched Britain’s 1% since the 1980s – they forecast – would be destroyed in several ways:

  • plans to renationalise the water industry without anything like full compensation for shareholders,
  • which could easily be the template for other parts of the economy,
  • the return of state control
  • and the re-unionisation of the workforce

It could easily happen:

“The Tories and Labour were tied on 31% each in Thursday’s elections. This would be enough, in our first-past-the-post system, to give the Tories 279 Commons seats and Labour 268. Mr Corbyn, under these circumstances, could form an alliance with the Scottish National Party to govern, a prospect that would not only guarantee a swathe of left-wing policies but would also bring the break-up of the United Kingdom much closer”.

And once the Brexit Party is added to the mix, with its capacity to damage the Tories in a general election as well as the forthcoming European elections, Labour’s chances would improve immeasurably. It might just win with a low share of the vote. The Tories would have brought this about, but the whole country would be the loser:

“Mr Corbyn can still win . . . Italy may be the ‘sick man of Europe’ for now, but under Labour that title would be up for grabs again”.

Ed: The 1% might well feel sick, but the 99% would benefit enormously from having a uniquely caring, corporate-free, incorruptible prime minister.

 

 

 

 

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Media 74: MSM wades in – hours after Corbyn’s reception at NHS rally

nhs-demo

Saturday 4th March

The BBC reported that Jeremy Corbyn called for the government to provide more funding for the health service in next week’s Budget. Speaking to the protesters in Parliament Square, he said: “The NHS is in crisis because of the underfunding in social care and the people not getting the care and support they need. It is not the fault of the staff. It is the fault of a government who have made a political choice.”

The protest organisers say the government’s proposed Sustainability Transformation Plans (STPs) across the NHS in England are a “smokescreen for further cuts” and the “latest instruments of privatisation”. These proposals involve the complete closure of some hospitals and the centralising of some services such as A&E and stroke care on fewer sites.

Deputy chairman of the British Medical Association council Dr David Wrigley said the march was “a cry for help for anyone who uses the NHS” which was “in such a desperate situation. We need to highlight it. As a doctor I see day to day the serious pressures in the NHS due to the funding cuts from the government”.

Saturday 4th March: at 6pm

The Independent featured Ben Bradshaw (former minister) praising Blair and blaming Corbyn’s leadership – ‘the one issue on the doorstep’

Saturday 4th March 11pm (updated 4am on 5th)

Nine prominent Labour MPs are reported in the Daily Mail to have complained ‘that they are heading for oblivion’ ( a little earlier a tweet on OurNHS explained why):

nhs-jmd“Unlike other politicians who spend weekends with corporate lobbyists &wealthy donors, John McDonnell is out on the street 4 the #OurNHS demo”

Sunday 5th March 4am

The Sunday Express: Corbyn in crisis – and no doubt more will come

Saturday 4th March 11pm (updated 4am on 5th)

The Daily Mail usefully quotes Ken Loach explaining why these particular MPs are disgruntled: “It was their Labour Party, not Corbyn’s, that lost Scotland, lost two elections and has seen Labour’s vote shrink inexorably. Yet they retain a sense of entitlement to lead.”

Strangest of all, the Times and FT (online editions) decide not to mention the demonstration.

The Times online did not carry its usual daily onslaught on Corbyn and the Financial Times online which regularly publishes biassed articles about JC – often by Jim Pickard – has no reference, merely a bland, skimpy article by David Laws: “UK reaches socially acceptable limits of austerity . . . the NHS needs a settlement which allows for rising demand and an ageing population”.

Their carefully selected and daily shown photographs and cartoons of the Labour Party leader are not to be seen? What does this mean?