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Yet another Thatcher-privatised-off-shored-debt-laden industry is seeking subsidies

Most UK care homes were managed by local authorities until Margaret Thatcher ‘reformed’ the system in the 1980s; now just 8% are said to be under state control.

In April, the shadow minister for social care and mental health said, There are major concerns about the debt-driven business models of some companies in the care sector and the role of foreign private equity firms and hedge funds in deciding the future care arrangements for large numbers of vulnerable people. The real price of this instability and underfunding is now being paid by the 17,000 older people in Four Seasons care homes and their families who face an uncertain future”.

The Bracknell care home and Kingsmills care home (above) are two of more than 300 owned by Four Seasons Health Care. In May, administrators were called in by the firm which has struggled to repay its debts.

All four of Britain’s biggest care-home businesses have been up for sale in the past year and have failed to secure deals.

recent report by the Association of Directors of Adult Social Services reported that almost half of councils have seen the closure of domestic home care providers in their area in the past year and a third had seen residential care homes closed, collectively affecting more than 8,000 clients and residents.

Gill Plimmer reports an estimate by Care England, which represents the independent providers, that around £4bn is needed from the government to stabilise the sector.

In addition to sharp cuts to social care budgets due to the government’s austerity policy, private care providers have had to deal with an increase in the minimum wage and rising food costs.

Ms Plimmer comments that understanding where taxpayers’ money is going is essential if Britain is to resolve the funding crisis in elderly care, adding, “This is made difficult by the companies’ complex, multi-layered offshore private equity structures”.

Nick Hood, debt restructuring adviser at Opus, the social-care analysts, said, “We don’t know whether taxpayers’ money is going to the private equity owners or the financiers, or indeed how much is being paid in cash and how much rolled up on the debt”.

He pointed out that the care companies’ debt interest payments which average £4,800 per bed per year, contributed to overall losses at the companies of £900m from 2015 to 2017, adding:

“The figures showed that the “debt-laden model, which demands an unsustainable level of return, is completely inappropriate for social care. Hundreds of millions of pounds that could be going into improving facilities and care are being sucked out of the industry every year to fund the debt”.

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and reality

Some question the whole concept of residential care as inspections by the Care Quality Commission, which oversees provision of social care, find that some homes shamefully neglect residents – citing here an establishment owned and controlled by a US property investment group.

 

 

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Jeremy Corbyn: brutal Communist, European socialist or mainstream Scandinavian social democrat?

Corbyn smears escalate

Yesterday came a warning: “With a general election possibly afoot, we must all be alert to the orchestrated dirty tricks and the ferocity of the propaganda assault that will inevitably be launched against Jeremy Corbyn and Labour by the terrified establishment”. It was issued by Richard House, after replying to ‘absurd views’ in the Independent alleging that Jeremy Corbyn would usher in ‘a communist government’ of a brutal nature.

Articles in the Murdoch Times today bore these headlines

  • MPs launch angry revolt over leaders’ Brexit talks: Breakthrough hopes fade after May meets Corbyn
  • Brexit talks: Dark clouds gather as Theresa May and Jeremy Corbyn work out what to do next
  • The PM, as we must still call her, was numb — perhaps past caring
  • Two-party cartel would regret an election now: The electorate is more volatile than ever and many will be looking for a home beyond the Conservatives and Labour. 

Jeremy Corbyn’s popularity with Europe’s socialist leaders was highlighted some time ago with a standing ovation noted in the Financial Times:

“UK Labour leader Jeremy Corbyn was given a rapturous reception by his Socialist allies in Brussels on Thursday, as he warned that leaving the EU without a Brexit deal would be “catastrophic” for the UK economy. Mr Corbyn was met with a standing ovation by Europe’s centre-left parties as he addressed delegates at the Europe Together conference, just hours before prime minister Theresa May was scheduled to meet her EU counterparts at a European leaders’ summit”. We omit the description of Ms May’s very cool reception. 

Corbyn’s negotiating skills are appreciated by senior EU figures, including Michel Barnier.

 

EU Brexit negotiator Michel Barnier (R) and British Labour Party leader Jeremy Corbyn walk prior to a meeting on July 13, 2017 in Brussels.  

Another perspective: Jeremy Corbyn is a mainstream [Scandinavian] social democrat 

That is the view of Jonas Fossli Gjersø, a Scandinavian who has spent more than a decade living in Britain (full text here), who opens:

“From his style to his policies Mr Corbyn would, in Norway, be an unremarkably mainstream, run-of-the-mill social-democrat. His policy-platform places him squarely in the Norwegian Labour Party from which the last leader is such a widely respected establishment figure that upon resignation he became the current Secretary-General of NATO.

“Yet, here in the United Kingdom a politician who makes similar policy-proposals, indeed those that form the very bedrock of the Nordic-model, is brandished as an extremist of the hard-left and a danger to society”.

British media’s portrayal of Corbyn, and by extent his policies are somewhat exaggerated and verging on the realm of character assassination rather than objective analysis and journalism.

Mr Corbyn’s policy-platform, particularly in regard to his domestic policies are largely identical with the Norwegian Labour Party manifesto. They enjoy near universal support among the Norwegian electorate and, in fact, they are so mainstream that not even the most right-wing of Norwegian political parties would challenge them. They include:

  • railway nationalisation,
  • partial or full state ownership of key companies or sectors,
  • universal healthcare provisions,
  • state-funded house-building,
  • no tuition fee education,
  • education grants and loans

Jonas (right) adds that such policies have been integral to the social-democratic post-war consensus in all the Nordic countries, which. enjoy some of the world’s highest living standards and presumably should be a model to be emulated rather than avoided, and continues:

The whole controversy surrounding Mr Corbyn probably betrays more about Britain’s class divisions and how far the UK’s political spectrum has shifted to the right since the early-1980s, than it does of the practicality of his policy-proposals.

Reflecting this is British media whose ownership is highly concentrated: 70% of national newspapers are owned by just three companies and a third are owned by Rupert Murdoch’s News UK . . . the British media has focused its reporting on the personal characteristics of Mr Corbyn, usually in rather unflattering terms, and shown scant or shallow regard to his policy-agenda.

He notes that a direct comparison of Britain with other similar European states would reveal both the dire condition of British living-standards for populations, particularly outside London and how conventionally social-democratic are Mr Corbyn’s policies.

Jonas Fossli Gjersø ends: “You might agree or disagree with his political position, but it is still far too early to discount Mr Corbyn’s potential success at the next general election – particularly if he manages to mobilise support from the circa 40% of the electorate who regularly fail to cast their ballot in elections…

“(J)ust as few recognised the socio-economic and ideological structural changes which converged to underpin Margaret Thatcher’s meteoric rise in the early-1980s, we cannot exclude the possibility that we are witnessing the social-democratic mirror image of that process today, with a prevailing wind from the left rather than the right”.

 

 

 

 

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Conservative commentator: ‘Cosying up to big donors’ is not a ‘good look’: many a true word spoken in jest

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In the Times today, Tim Montgomerie,  co-founder of the Centre for Social Justice and creator of the Conservative Home website warns: “Tories must beware cosying up to big donors . . . the dependence of the party on chief executive chequebooks is bad politics and makes it vulnerable to populist entryism”

He cites the persistence of Jeremy Corbyn’s support despite the media onslaught, commenting that voters who are desperate for a new economic settlement seem (bewilderingly) willing to forgive or at least overlook (alleged) weaknesses that would have been electorally fatal until recently.

He points out the surge in revenue from Labour’s half a million or so members, which means that the party is getting almost as much money from individuals as it receives from the unions and continues: “The Tories enjoy no such diverse spread of funding”.

While “Corbyn’s coffers” were filled with £16 million of funds from individual supporters, the 124,000 Tory members contributed less than £1 million to their party’s treasury. Over £7 million came from ‘high-net-worth donors’ and big gifts came from dining clubs, at which rich individuals are able to sit down with Mrs May and other cabinet ministers. Montgomerie continues:

“Chasing high rollers has at times led the party to become entangled with former associates of Vladimir Putin. That is not a good look”.

Mrs May’s successor and the nation’s prime minister will be chosen by party members but Montgomerie sees the danger of ‘entryism’. Arron Banks, the businessman who financed Nigel Farage’s Brexit campaign has launched a drive to recruit 50,000 Ukip-inclined supporters to join the Tories.

The support for capitalism is not what it was and deservedly so

Montgomerie advocates building a broad and diverse membership which understands that things are different from the 1980s, when Margaret Thatcher reaped great political rewards from being close to the nation’s wealth-creators:

  • The banks have paid an estimated £71 billion in fines, legal fees and compensation since the 2008 crash.
  • Inflated house prices owe much to the power of a few major builders to restrict the supply of new homes.
  • The service of some privatised railway companies is poor.
  • The pay awards enjoyed by many leading chief executives are unjustifiable.

He adds that the Tory mission today should be the protection of the “little guy” from any concentration of power, whether in commerce, media or the state

He comments “There are some signs that the government gets this”; the apprenticeship levy for example, which is attempting to address “the decades-long failure of British industry to invest in the skills of their workforces”.

Montgomerie concludes that British politics is not corrupt but distorted

By accepting funding and spending so much time with donors from the City and with property developers, the Tories are in danger of being held back from building an agenda that is less southern and more focused on consumer empowerment than producer privilege.

He and his ilk are incapable of understanding the persistence of Jeremy Corbyn’s support despite the media onslaught. Those voters who are ‘desperate for a new economic settlement’ also recognise the character of the man, whose policies are based on justice, not perceived electoral advantage.

The last word is given to Andrew Scattergood (FBU) who sees more clearly than Montomerie: “Jeremy Corbyn has, since first elected as leader, established himself as by far Labour’s best leader, perhaps since Keir Hardie, representing the aims and values of the vast majority of the party membership”.

 

 

 

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Time for change: junk the Anglo-Saxon model* in 2018

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?

*the Anglo-Saxon model

 

 

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Devil’s advocate? Henry Chu pretends to be puzzled by the support for Jeremy Corbyn

henry chuWe are indebted to investigative journalist Felicity Arbuthnot for this link to a refreshingly lighthearted article in the Los Angeles Times by Henry Chu, born in Indianapolis, raised in Southern California, served as bureau chief in Beijing from 1998 to 2003, Rio de Janeiro from 2004 to 2005 and New Delhi from 2006 to 2008 before locating to London in 2009.

His subject is Jeremy Corbyn, an ‘unabashed’ left-winger, not quite sure why he could have needed to be ‘embarrassed, disconcerted, or ashamed’ of his eminently sensible and public-spirited policy proposals, but there it is.

Chu opens: “Jeremy Corbyn says ordinary workers didn’t cause the 2008 financial crisis but are paying for it through austerity cuts” but nevertheless finds that support for him “is surprisingly on the rise in British politics “ – surely cause and effect?

22-year old Aisling Gallagher, speaking at the Robin Hood demonstration pictured below, values the Islington North MP’s position against austerity – something other leadership candidates lack. “Governmental economic policies (ie cuts and “reforms”) have a hugely devastating impact on women and even more so on black women, migrant women, disabled women and so on”, she says.

robin hood style supporters

To those who once revelled in Robin Hood films, the comparison of this newly emerging hero with a legendary one is quite pleasing, and indeed Nottingham, where lives one of many gifted Corbyn allies – former Labour MP and environmentalist, Alan Simpson – already has much to be proud of, including:

  • its exemplary public transport system,
  • its coalfield regeneration,
  • and now its Robin Hood Energy Company, first council-taxpayer owned energy firm to operate on that basis since market was nationalised in 1948

Corbyn, for the common good

Jeremy Corbyn tells ‘hundreds of merry men and women’ – actually well over a thousand and merry/happy indeed – at the North Circus Street venue and the overflow in the courtyard behind Nottingham Playhouse , that the government needs to stop concentrating wealth in the hands of the have-a-lots and start investing in public services and welfare benefits for the have-nots. After all, he continues, single parents, nurses and other ordinary workers didn’t cause the 2008 financial crisis; bankers bent on “grotesque” profits did. Yet the rest of society is paying the price as the state slashes spending after doling out billions to rescue the banks.

Unelectable: scruffy, rumpled and non-telegenic?

casual corbyn

That’s debatable, one could instead describe his appearance as casual, relaxed and confident – decide for yourself. Chu describes Corbyn’s three rivals: “younger, slicker and, so far, fairly hopeless at firing up the public imagination” and their well-groomed youth is not of interest to Corbyn’s newly hopeful support base.

formal corbynAnd if so moved he will spruce up, wearing the totally pointless necktie and suit. See – and hear – the 2013 Oxford Union debate.

“He steps outside of the paradigm,” says Nottingham cafe owner Tres Gretton-Roche. “There’s something that feels very different. The whole thing that surrounded Blair was spin; there was something unreal about it. But what Jeremy Corbyn has is a real rhetoric, a real connection.”

Corbyn ‘clings to’ (Chu’s expression) – or rather is faithful to – causes such as nuclear disarmament. Would Chu value him more if he trimmed with the wind like most other politicians? I suspect not. He is also said to cling to a proposal to re-nationalise the country’s energy sector – for obvious reasons as the 99% are exploited and profits fly abroad.

Chu notes that Corbyn favours Britain’s withdrawal from the North Atlantic Treaty Organization – no so outlandish: several eminent commentators have said that NATO has outlived its purpose and exceeded its original mandate – see US army Lt. Col. Robert L. Bateman, Nick Witney, Senior Policy Fellow at the European Council on Foreign Relations, formerly the European Defence Agency’s first Chief Executive and others. The thousands who protested at the NATO summit in Cardiff last year obviously agree.

Chu’s reference to Margaret Thatcher is a great cue for tomorrow’s post – a comparison of the two politicians, also lighthearted, which would indeed encourage Corbyn if he ever finds time to read it.

Soapbox 499 – John Tyrrell on Margaret Thatcher

 

99-3

In the Soapbox for the 99%, John Tyrrell writes:

Ed Miliband made a revealing statement in his effusive tribute to Margaret Thatcher whose policies shaped Cameron, Clegg and himself.

It’s certainly true of New Labour which took Thatcherism to new heights in privatisation and allowing market forces to reign supreme.

Why in all the tributes  this is seen as “success” for Britain when all is falling about, as austerity dominates the proclaimed policies of all political parties, is hard to see. The only way it can be proclaimed so is through the perceptions of a ruling and wealthy elite who have used the ideology to feather their own nests. For the 1% it is a triumph maybe but for everyone else it spells disaster. So while the elite prepare for a now down-graded but still lavish funeral others are partying.

I am suggesting that while the lady may have gone her policies haven’t and for these reasons I won’t be joining in. Following reports of her death, the news clearly shows a hugely divided nation north/south where regions blighted by the end of manufacturing industry have fallen into decline with unemployment, drug and alcohol abuse – the Thatcher legacy.

Source: Thatcherism isn’t dead when all parties are locked into it.

Linked via The Brummie: http://www.thebrummie.net/birmingham