Austerity applesauce

Any new Mayor of Bristol will have very hard budget choices forced on them it seems, given that, 'One of the first jobs facing Bristol's incoming elected mayor will be to cut an extra £25 million from the city councils budget. The authority has revealed it faces making deeper cuts than first anticipated as funding from central government is reduced.' (see here). However, that should not stop whoever the Mayor is from giving voice to the growing numbers of people who see the complete folly of cuts and austerity economics.

Govt borrowing is up AND we've had savage cuts. In fact Govt borrowing is up in part BECAUSE we've had savage cuts. Cuts are depressing economic activity. Austerity policies, pronouncements, plans and actions have reduced confidence, reduced spending, reduced investment, increased costs to govt, reduced govt income...and have been a big help (!) in causing and then lengthening the recession we are still in (thanks to Dave, George, Nick, Vince and co). I support the case against austerity and cuts and for a Keynsian stimulus for our economy to get out of recession and going in a sustainable direction.

Budget below the belt

Wouldn't it have been fairer, more just and better economics to keep the 50% tax rate and bring in additional measures to make sure that people could not avoid paying it so easily, if that's what is happening on a large scale? I thought we had debts to pay off and that the Govt needed the money for this.

There will be many well-off high rate tax payers who have circumstances such that they wont be liable to pay the additional wealth taxes in the budget, who will thus get a large net tax cut. Its a budget that George Osbourne's mates will like and benefit from I'm sure.

More on the budget here and here.

Autumn Statement: visionless

George Osbourne's Autumn Statement could have been used as an opportunity to put our economy on the right road. This chance was wasted. It could have been used to set us on the road away from the unequal, unfair, wasteful and polluting rat race we have – it did not. It could have helped create a way of life we can afford in both economic, social and environmental terms – it did not. It could have helped create the jobs that need people, by building on the resources of the people – it did not.

It could have helped to build a more self-reliant and stable economy – instead we are still reliant on a system of international finance which cannot last much longer. It could have started to establish an economy which can be sustained into the future, without killing our environment and exploiting the people – it did not. Instead the Chancellor produced a statement totally lacking is any vision of a better society at all. Actually pretty much par for the course as far as such statements - and budgets - go.


http://www.bbc.co.uk/news/uk-politics-15937446

South Bristol link road bulldozed through (along with many others)

The Treasury neatly side-stepped a year's work by experts, campaigners and civil servants on 45 local transport projects in the DfT's 'development pool'...as the Chancellor announced he was providing funding for all 45 schemes and gave the go-ahead to the Kingskerswell Bypass and the South Bristol Link Road to grab headlines...

...As well as the Kingskerswell Bypass and the South Bristol Link Road, the go-ahead was also given to the Lincoln Eastern Bypass, the A164 Humber Bridge to Beverley, and the A43 Corby Link Road...

We are all justifiably angry as ourselves, the Kingskerswell Alliance and Transport for Greater Bristol had hired consultants to produce an evidence-based response to the funding bids showing major flaws in the plans. Instead it appears the schemes have been bulldozed through to allow the Chancellor to do some headline grabbing posturing today.

Analysis of the Kingskerswell Bypass showed that it would simply move traffic jams further down the road. It would also be environmentally devastating, trashing the habitats of rare bats, birds and newts. The South Bristol Link Road will at best shave just 2 minutes off journey times, and passes through Common Land and the green belt.

This is unlikely to be the end of the road for the campaigns as there are grounds for legal challenges now, and later there will most likely be protests.

Roads blog Campaign for Better Transport

Proper planning prevents poor performance

Proper, prior, preparation and planning prevents poor performance. Pity the coalition government intends to take us even further away from a proper planning system then - they talk of sustainable development but yet again we have a government that empowers development without sustainability. See this excellent piece by George Monbiot:

This wrecking ball is Osborne's version of sustainable development
Economic growth is not the purpose of a planning system. It should meet human needs while the environment is protected

Impervious to experience, strangers to reason: the communities secretary, Eric Pickles, and the chancellor, George Osborne, have learned nothing from the economic crisis. They claim that laxer town planning "is key to our economic recovery". But the European countries hit hardest by the economic crisis – Greece, Italy, Spain and Ireland – have weak planning controls and urban sprawl. The nations that have proved most resilient have tougher laws and compact settlements.

Strong planning is one of many factors, but it is symptomatic of a political culture that puts the national interest above the self-interest of the rich and the long view above the quick buck. Pickles and Osborne are seeking to rip up England's planning system for the same reasons that they want to drop the proposed new banking rules: corporate power, cronyism and plutocracy, the forces that got us into this mess.

Weak planning exacerbates economic problems because capital is diverted from productive uses into speculative ventures; cities decline as they hollow out; and badly sited businesses, disaggregated settlements and long travel times drag down economic efficiency...

http://www.guardian.co.uk/commentisfree/2011/sep/05/george-osborne-motorway-sustainable-development

Budget for growth - for whom? how? at what costs?

I'm watching as Chancellor George Osborne is 'setting out plans to kick start Britain's stalled economy in what he says is a "Budget for growth".' Er...growth for whom, how and at what costs? Will growth enable: current and future needs to be met; a fairer more equal society and world; a less wasteful society; a more renewable society; less polluted environments; improving health and general wellbeing? Will it make local communities stronger and more self-reliant? If George's growth does enable these things then we will genuinely have made real progress - but I'm afraid they dont even enter his head and he's not even assessing and measuring them properly. Such is his fixation with GDP growth that his only interest is more money flow through the economy.

Senator Robert F Kennedy's words on growth as measured by GNP:

"The Gross National Product includes air pollution and advertising for cigarettes and ambulances to clear our highways of carnage. It counts special locks for our doors and jails for the people who break them. GNP includes the destruction of the redwoods and the death of Lake Superior. It grows with the production of napalm, missiles and nuclear warheads.

And if GNP includes all this, there is much that it does not comprehend. It does not allow for the health of our families, the quality of their education or the joy of their play. It is indifferent to the decency of our factories and the safety of our streets alike. It does not include the beauty of our poetry, the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. GNP measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country…"

Part of the solution to our problems is to assess and measure the right factors in our society and economy, as long as we dont at the same time get obsessed with and tied in to a rigid, narrow approach to measurement. Progress should be assessed in terms of: efficiency; renewability; respecting environmental limits; stronger local communities; meeting needs now and in the future; local and global fairness; health, wellbeing and quality of life; and the interconnection between these. An evidence-based, reasoned, systems-thinking approach needs to be taken.

http://vowlesthegreen.blogspot.com/2007/11/sustainability-reconciling-economy-with.html

http://vowlesthegreen.blogspot.com/2008/01/what-sorts-of-economic-growth-are-good.html

BBC News - Poorest pupils '55 times less likely to go to Oxbridge'

No surprise at all that there is huge inequality and unfairness in our education system (and beyond) but this study puts figures on it. Shows the abject failure of the Blair and Brown Labour Governments, despite claims that their aim was a more equal society. Coalition Govt policies are likely to be inadequate and ineffective at tackling this issue despite claims of being 'radical' - they may even make the problem worse! Do you trust former members of the socially exclusive Oxford University student dining club* like PM David Cameron, London Mayor Boris Johnson and Chancellor George Osbourne to cut inequality? See the Bullingdon Club* photos - inequality goes right through to the Cabinet!

Pupils on free school meals are 55 times less likely to go to Cambridge or Oxford than those from private schools, the Sutton Trust has said.
The charity said it feared rising fees and the axing of a support programme would make it harder for poor students to get into England's top universities.
It also raised concerns about proposed measures to widen participation...

BBC News - Poorest pupils '55 times less likely to go to Oxbridge'

Liar, Liar for Xmas No.1

Captain Ska's anti-cuts, anti-coalition government song Liar Liar is out on sale this week with ambitions to make it to Christmas number one. Clips of George Osborne, David Cameron and Nick Clegg saying 'we are all in this together' are mixed onto a ska backing claiming "he’s a liar, liar, you can’t trust him, no, no, no."

Proceeds from the single will go to causes helping those affected by the cuts, including the homeless charity Crisis, Disability Alliance, Women's Health Matters and False Economy - a cuts campaign site supported by UNISON.

Liar Liar is the number one reggae song on iTunes, at number 59 in the downloads chart - and it might just knock Simon Cowell off the top of the charts.

From 79p to download from: iTunes Tesco entertainment Shockhound Mog.com also: eMusic Napster Thumbplay

Ask your friends and colleagues to download it too – just send them a link to this page, or share it via email, facebook, or twitter: action.unison.org.uk/xmasno1

UNISON News The public service union Liar, Liar for Xmas No.1

House of cards economics

Work on the economy continues at the Treasury, in Ireland, in the EU, at the IMF and in many other places around the globe. There's little stability in a house of cards however.

Poor suffer most from spending review cuts

Deputy PM Nick Clegg is very unwise and unmeasured indeed to launch such an outspoken attack on the Institute for Fiscal Studies (IFS) - using words like 'frightening people' and 'airbrushing' - because it is very widely respected for its expertise, independence and authority. This is not good leadership and in fact both Nick Clegg and Chancellor George Osbourne praised the IFS highly during the summer general election! Take a look at why the IFS regard the spending review as on the whole affecting poorer people more than richer people here. For me it makes very good sense to conclude that the poor will suffer most because they are the ones most reliant on the public services and benefits that have been savagely cut - and even the government's own figures (see image), calculated in their own way, show that the bottom 10% are hit hard. Government attempts at making the cuts 'fair' are far too small.

Spending review: Clegg attacks "nonsense" IFS warning - Channel4 News

More on this issue from:
http://www.bbc.co.uk/news/business-11598234

http://www.spectator.co.uk/coffeehouse/6397563/ifs-the-spending-review-was-regressive-sorta.thtml

http://news.bbc.co.uk/today/hi/today/newsid_9113000/9113265.stm

http://www.jrf.org.uk/blog/2010/10/spending-review-progressive-or-regressive

Green view on today's spending review

Budget to destroy a million jobs

Green Party leader Caroline Lucas MP has called George Osborne's comprehensive spending review a "budget to destroy a million jobs" - and has again argued that the worst cuts could have been avoided by an alternative policy based on a fairer tax regime.

Caroline Lucas said immediately after the budget statement:

"This is a budget to destroy half a million jobs in the public sector, according to the government's own estimates. And the knock-on effects will be at least as many jobs lost in the private sector."

The Brighton Pavilion MP added:

"When those public sector workers find themselves out of work they will, along with disabled people, feel the full force of the additional £7 billion worth of cuts in welfare spending, on top of the £11 billion of cuts announced in June. The housing benefit regime will become much more harsh, risking a rise in homelessness.

"They will also find that the loss of public services that this budget represents will massively disadvantage them, and all the most vulnerable people in society who rely on those services."

She asked:

"Where's the fairness in a budget that lets vital public services go to the wall, hitting the poorest hardest?"

Britain's first Green Party MP concluded:

"This was a budget of false economies, undermining the economy and hitting the most vulnerable - and all, incredibly, under the banner of fairness."

Capitalist ideology dominates cuts decisions

Excellent piece by George Monbiot (see quote below). The spending cuts process is dominated by Tory capitalist ideology more than practical necessity. The Lib Dems are backing the Tories to the hilt - so much for Vince Cable's concerns about capitalism (this never did have substance anyway especially given that he is privatising the Royal Mail and backs the establishment of a free market in tuition fees...ie he is extending capitalism!! More on this issue soon.).

Monbiot.com » Britain’s Shock Doctrine

...Public bodies whose purpose is to hold corporations to account are being swept away. Public bodies whose purpose is to help boost corporate profits, regardless of the consequences for people and the environment, have sailed through unharmed. What the two lists suggest is that the economic crisis is the disaster the Conservatives have been praying for. The government’s programme of cuts looks like a classic example of disaster capitalism: using a crisis to re-shape the economy in the interests of business....

BBC News - Budget hits the poorest hardest, says IFS

BBC News - Budget hits the poorest hardest, says IFS

Note what the Treasury and Coalition Government say their budget was all about, summarised in this picture. Remember that they have said that we are all in it together or words to that effect. Then read what an independent analysis by the Institute of Fiscal Studies (IFS) says (extract below, more detail via link):

The coalition government's first Budget has hit the poorest families hardest, a leading economic think tank has said.

The Institute for Fiscal Studies (IFS) said the measures announced in the Budget in June were "regressive".

Its analysis suggests that low income families with children are set to lose the most as a percentage of net income due to benefit cuts announced in the Budget.

No to cuts in services

Just signed this 38 Degrees petition against premature cuts in public spending:
http://www.38degrees.org.uk/page/s/dontriskrecovery#petition. Here's some background from their website:

In the Financial Times, over 50 senior economists have written a letter demanding that Alistair Darling, Chancellor of the Exchequer and George Osborne, Shadow Chancellor, do not make premature cuts to public spending. The world-class economists believe that the deficit should be financed until the economy is more stable and that if spending cuts are made at this point, the UK could spiral into a disastrous 'double-dip' recession.

The financial crisis has already terrible consequences for people all over the UK. Jobs have been lost, businesses closed and homes respossessed. Unemployment has risen to around 2.5 million and, as the letter-writers point out, the UK economy 'is not yet on a secure recovery path'.

It's vital that our leaders don't play politics with our recovery in an election year. 'Consolidation', or cuts in our public services, are too dangerous to be used as an election bargaining chip. Darling and Osborne should both publicly commit themselves to not making damanging cuts before its clear that the economy really has turned the corner towards recovery. Sign the petition to the Chancellor and Shadow Chancellor.
______________________________________________


Also see: http://www.neweconomics.org/publications/cuts-wont-work