I am heading for London this morning to comment on the Autumn Statement for BBC News 24 at 11, the Jeremy Vine show on Radio 2 at 1.30 and LBC at 3. Then I am in Cambridge to give a talk at 6.
I should be excited by that prospect, but I am not. That's because I think that today we will say farewell to all that made the UK a compassionate, decent, fair and civilised society. After George Osborne has had his way I have a deeply uncomfortable feeling that this country will be more brutal, unequal, divided and profoundly individualistic. Once Margaret Thatcher said there was no such thing as society. Today I feel like George Osborne is trying to prove it.
Tax is not going to be the focus of today, I suspect. It should be: if George Osborne wants to pursue the goal of a balanced budget (which has no economic merit, at all) then tackling the tax gap and cutting tax expenditures would be the obvious thing to do and that would deliver increased economic fairness and social justice. But those will not be at the heart of today.
Today is about shrinking the state. Apart from the economic illiteracy of this (at the macro level cutting government spending is the same as cutting GDP if there is spare capacity in the economy, and so the policy Osborne is pursuing makes it harder for him to achieve his goal) there is the massive social injustice that this entails to worry about.
Social inequality will increase as a result of today.
Disabled people will be worse off again.
The young will suffer disproportionately.
The education of many will be harmed.
Our long term prospects will be reduced.
Those in need of care will have less available.
Society will be more vulnerable.
And yes, some will die as a result of today. That has to be said.
Those are all choices. And none of them is necessary. The policy of austerity is a political affectation designed to increase the wealth of a few, to favour large companies and to appease bankers. It cannot work, although I think George Osborne does not realise that although the evidence is obvious. And so the question as to why it has been adopted has to be asked.
And that comes down to greed, a sense of entitlement, a lack of empathy, and a blunt indifference to others.
And that indifference is why this country will be worse off for today. For those with compassion, care and concern for others, however and why ever it is motivated, today is a day for concern and resolve to make sure that as much as possible can be done to preserve the values that underpinned the state we have lived in, for all its weaknesses. The alternative is going to be very much worse.
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I whole heartedly agree.
I’ve been watching Spike Lee’s Hurricane Katrina documentary ‘When the Levees Broke’.
It’s a glimpse into our possible future here in the UK – a warning as to what sort of state we could end up living in after Osbourne and Co have done their business.
Remember the Somerset Levels and the effect government cut backs had there?
The UK iteration of the ‘Fend for Yourself’ state is being developed right now.
I can assure you a lot of people will be pleased over Tax Credits, unfortunately this will not help when it comes to universal credits, particularly those who are lone parents and the disabled who will loose £2,500 a year. Free child care does not cover children at 5yrs and above, so lone parents find it difficult to get work to fit in with school times as that can’t afford child care, once working they will still be penalised as will may working families by £1,500
People with disability are going to be punished the most, those that can’t work have no where to go, I do think that Osbourne and Smith think they are god and have divine invention to be able to heal the sick. Why is this group being punished more then any other group, do they what them to loose their homes and beg on the street like a third world country, some may be thankful for a merciful death than suffer that indignity. What about their Human rights???
Your analysis is right
Your concern wholly appropriate
I have no idea how Osborne et al can sleep at night
I hope Mr McDonnell and Mr Corbyn have scissors handy so they can cut this out and so save themselves the trouble of writing a response to the Osborne’s statement. I’m aware that you’re not any sort of advisor to/supporter of the Labour Party but my goodness they need you!
Mr. Murphy is an advisor on economics to Messrs. Corbyn and McDonnell.
Informally
As I advise other parties
Informally
I thought Mr Murphy was the economic advisor to Jeremy Corbyn at the moment?
Excellent post. Yet so depressing that it has come to this. I could weep.
No : he borrows my ideas. Not the same thing at all
Maybe Richard should start advising the Tory party – seems to be the noly way to turn around the huge lead in the polls they have over a Labour party which is eating itself.
Yes they do need you
The labour party that is of course not the selfservatives
I’m afraid you’ve nailed it on the head yet again Richard, but, there’s no problem in finding £178 billion for war, just sod the poor. It would be a joke, except it’s not funny. Unfortunately the mass of population have been so dumbed down in believing the bullshit of the mainstream media I despair with where it all will end.
Given that you suspect, as obvious as it is, that GO hasn’t actually realised how foolish his ideas are, we don’t need to find an explanation for why he’s doing it:he’s doing it because he is a True Believer. They are the worst :/
I’m delighted that this message will be presented somewhere on the BBC today.
I did hear Laura Kuenssberg on Radio 4 this morning say that one of “Labour’s advisors” had said online that this was saying good-bye to all that was good about the UK.
I suspected that it may have been you she was referring to – shame she’s not got the message about your (non) role with Labour though.
Laura reads this blog, or so she has told me
Is her economic literacy up to it -the quality of her interviewing (as I remember it) is dire and typical BBC froth.
Simon,
I understand this is known as the ‘Peter Principle.’
Wiki defines the ‘Peter Principle’:
“The Peter principle is a concept in management theory formulated by Laurence J. Peter in which the selection of a candidate for a position is based on the candidate’s performance in their current role, rather than on abilities relevant to the intended role. Thus, employees only stop being promoted once they can no longer perform effectively, and “managers rise to the level of their incompetence.”
So I agree, Dave, except a question arises about ‘intended role’-in this case the incompetence is intentional so as to (wittingly or unwittingly) assist the smoke and mirrors deception about economic choices.
Here’s another good example of the privatisation of NHS services on the cheap (and quiet)…
http://www.gazetteandherald.co.uk/news/14101687.Richard_Branson_takes_over_children_s_NHS_services_in_Wiltshire/
Superbly put, Richard. And I wholeheartedly agree (and with Alan M and Pilgrim’s comments).
Just as an illustration. BBC East Midlands News (not known at all for covering much of a political/social bent) had a feature on homelessness on Monday. They were pointing out how this has shot up (by 48% in one year I think the stat was) in Nottingham and Leicester – so I dare say the same applies in Derby. So we’re well back on the road to what we saw through the 1990s when it was commonplace to see people sleeping in doorways in Nottingham.
Ever since I first visited the US in the 1990s and then again in the mid 2000s and witnessed the appalling level of homelessness you see in large US cities I’ve always thought that homelessness is one of the most visible signs of the worst form of uncaring, predatory capitalism – as the US is. I hoped after the Thatcher era we’d banished this from the UK – though even through the Blair years it was never that far away. But I was being dumb, of course, as tucked away in those bastions of privilege – public schools and Oxbridge – was a new, even more mean and vile breed of Thatcherite. And they had an aim that was above all else to finally destroy the social democratic state that was a product of the suffering of so many millions of the citizens of this country from the first years of industrialisation, through two world wars and on into the 1950s.
Thanks to the Liberal Democrats (now rightly consigned to history as a political force) the personification of that evil (for that is what it is), Cameron, Osborne, Gove, May, Grayling, et al, were allowed to have a five year head start on that project, which leads us to where we are today: Osborne able to put the final nails in the social democratic coffin and signal the ultimate triumph for greed, extreme self interest, and a “devil take the hindmost” view of humanity.
Utterly appalling.
I cannot see how a massive wave of homelessness can be avoided over the next few years
People will simply be unable to pay rents, let alone increased mortgage costs as we return to what bankers call normality
On the QT, this is what people in the HCA also think – that homelessness will indeed go up as the supply of affordable housing to rent begins to shrink.
Some think that the HCA has no future.
No doubt there will be a palliative of sorts – a small grant fund set up to set up homeless shelters – even a juicy contract for G4S or other privateer.
The only thing is that this problem will be so visible. It will be interesting to see their reactions.
I wish people did not need to suffer before we see the reaction
But they will
Badly
I don’t see any way of avoiding it either. What is it about the Tories that seems to excite them about crucifying the poor in Britain. What makes them so cold hearted. Worse though in my opinion are the middle and lower class muppets who vote for them especially of my generation who seem to have forgotten, or failed to notice the harm Thatcher and Major caused last time the conservatives were in power.
The HCA, set against Government policy is a contradictio in adjecto as they are wreckers of communities, fragmentors of social cohesion and sowers of discord between oppressed groups.
Another case of YOYO -ism (Your On Your Own).
Richard,
As a very recent reader of your excellent thoughts I can say only one thing.
Thank goodness there are still honest men such as you.
Thank you
I assure you, it costs
BTW I just bought your book ‘the joy of tax’ (Ironically from amazon as I’m abroad atm and Kindle is my only reading device). Look forward to reading your work, as I have previously only read articles. James
I hope you enjoy it
Love the comments, today is indeed the day of reckoning, all the people that voted other than Labour, will now see the chickens come home to roost. God help us, unfetted neoliberalism is going to lead the decent working man over the cliff edge.
Eloquently and accurately put Richard.
What amazes me is that they continue unabated with their strategy despite the obvious failure.
Today Britain will lose so much of what our forebearers worked hard to achieve that it will require major effort and expense to put things right when we eventually wake up and expel these vandals.
Sadly Richard has nailed the deliberate and morally bankrupt heart of George Osborne and this Government. They have now reduced England to a don’t care, punish the poor, sell everything to their friends society. This country has lost its kindness and compassion. The spin doctors and fear mongers have won. Welcome to a semi Victorian Age of have and mostly have nots. Money rules. Society is dead. We are consumers not citizens. Corporations now rule us through our Government.
Who cares about being ‘morally bankrupt’ when you are financially anything but? As the poet Roger Woddis said,
“What shall it profit a man if he gains the whole World and loses his immortal soul?
It shall profit him exceedingly.”
Richard
Once again, we seem to be completely in a mire, that there doesn’t seem to end.I myself am.unemployed and as my wife earns just over £14000 a year, I am not eligible to go onto income based JSA,as I have had my 6 months of continuation based JSA already. So we get £90 a week from.tax credits to help us,but again no council tax benefit as she earns too much!
A recent check on my NI payments revealed I had 37 years of full class 1 contributions, but tough that’s it, how are we supposed to make ends meet on a further reduced pay from.tax credits.
I have applied for over 800+ jobs since becoming redundant at the start of 2015 and am told that we must keep on trying, at 54 years old it is laughable to say that that I haven’t tried or got qualifications coming out my ears..it’s always the same ..you’re either over qualified or your skill set isn’t quite right. .or (nor said) you’re too old and you should be retiring..I still.have bills to pay and my pension won’t amount to keeping me comfortable in my age, even though I have been paying onto it for some 40 + years, besides I want something to excerise my mind. I believe that I still have something to give.
There too was an interesting item on Look North the other day in that they said people cannot even afford to live in some parts of Lincolnshire (Grantham) as it needs a salary of £44k to afford the mortgage and the average is only £26k in these parts, so the burden on social.housing will get only worse.
I only wish that Mp’s would have to live on the NMW and see how they survive,and not on the salary plus full pension after only one term in office.
One point,why did we waste £65 million refurbishing HMS Ocean last year only to be scrapped in 2018, so we will.have 1 aircraft carrier but no aircraft to put on it- Brillant.
But he’ll ee can afford the war, but we can’t look after our own and again Foreign Aid is going to be ring fenced. We will have more people but less police and yet still some major companies will get away by paying as little tax as they can.
Make people pay for A&E treatment, if they are drunk. If you can afford to get drunk then you can afford to pay – simple as and if you a salt police or ambulance service staff then again fine them heavily.
I think that’s enough for now,otherwise I might end up writing for ever and a day?
Finally I agree with what you are saying and can only hope that things will get better.
Cheers
Mike
Mike
Good luck
I know my luck to have a job at 58
Richard
“I want something to excerise my mind. I believe that I still have something to give.”
You can still give Mike, get involved with the local initiatives, study about the absurdity of our economic system, campaign if you have the energy. Your situation is a prime example of how our economics scrap heaps people as if people aren’t the REAL wealth.
The best way of challenging the moronic duplicity of our politicians is to start educating oneself and thinking. hardly surprising that Adult Education centres started disappearing in the 80’s-an educated public (especially on economic issues) would scare the crap out of these bastards.
I’m saddened you failed to publish my contribution, yet I guess that shows the bias.
It was our ad hominem
You expect me to publish that?
Grow up
Except the cutting of government expenditure hasn’t cut GDP, has it? Last time I checked, the economy has been growing for quite a while despite fiscal retrenchment…
The comparison should be with what GDP could have been
Then it is clear by how much we have lost out
Looks like you made a serious error Richard, this spending review is brilliant, half a trillion investment in the HHS should be celebrated no matter what your party alliance. No cuts to tax credits, 50% increase in climate funding.
This is all spin
It is non deliverable
And the NHS commitment is simply a reduced level of spend against past increases
From Laura Kuenssberg on Twitter
“Responding to statements like this always v hard for Opposition, but McDonnell speech sounds like it was written before Osborne started”
Probably by this idiot. Article was hyperbole this morning, now just looks ridiculous.
First,mThe cutscare as big as expected : all the rest is spin
Second, I have not spoken to John for weeks
I was in London today and walked around with a heavy heart. I sat in Westminster Abbey and thought about the highs and lows of humanity. Reading your article in the way home has just put into words everything I was feeling. I really admire what you’re doing In bringing attention and compassion to this dark subject , and even though Osborne has ‘dropped’ his tax credit plans, I think what you’ve said is sadly as true as ever.
Richard, found your blog via a Facebook friend. Thanks for your common sense and telling the truth – so very rare these days. Hubby and I shout at the TV most evenings, as very few journalists have enough time to ask the really hard questions – or frankly, aren’t briefed well enough. We’re in a far more parlous state than 5 years ago – our dreadful Proportional Representation system doesn’t help either.
I do help people and families wherever I can. There’s 3 homeless guys camped outside Milton Keynes station, sleeping in the dreadful cold, right now. I’m going up later to see how I can help them, and do some digging to find out why they can’t get places in hostels. It makes me weep, to be honest. BUT I won’t be discouraged…….
It’s exactly the same as the refugee crisis: it’s only ‘ordinary’ kind people who help the families who are escaping horrific war – which we help perpetrate and continue with our drone strikes. And all the innocent Syrians still stuck in Raqqa being bombed to smithereens.
As one of the commentators here stated earlier today: we can find the money for war, a Trident replacement, new homes, but no social housing.
What planet are the Tories living on? People lose jobs all the time, often as a result of outsourcing or technology replacing their jobs, so they MUST have a safety net, and a place to call their own.
Unfortunately politicians are all too often more concerned with saving their own skins than doing the right thing and all but a complete fool will realise that this U turn has come about because of public outcry rather than any ‘improved forecast’. Afterall, an improved forecast is simply changing the figures in a spreadsheet to get it to say what you want. It makes not a jot of difference to the actual state of the economy in the real world.
Predicted growth and interest rates haven’t suddenly changed, what has changed is that the government has looked foolish and if they lose the vote on air strikes tomorrow, any remaining vestige of credibility will be further eroded.
It,s a disgrace what this government is doing,I think its time communities started pulling together look out for each other, check on the elderly if you can cook a meal for one you can cook for two,GO does n,t understand the meaning of being poor or the Tory party, I also think no MP should have second home,s or that we have to pay for the upkeep of any of their homes i also don,t think we should pay for their travel expenses they should pay for their own petrol and drive themselves or take the mega bus or the train which they pay for. In this day and age nobody should be going without food or money to heat their homes. I Believe our children should have free university place,s and i support our NHS. the Tory Party would sell its grannies knickers if they are not nailed down, They are a disgrace to this country our old our children our disabled our homeless our armed force our police our our beloved royal mail. They should be getting tax of their mates and corporations, I hate seeing people live in fear and have no food to eat, i think were just all collateral damage to them personally a bug to tread on. 🙁
It has been a long time coming.
https://archive.org/details/americanizationo01stea
Saw the phrase “social justice”, stopped reading there.
Well that observation tells the world everything it needs to know about the individual who made the observation.
Why does everyone have an opinion on everything that is happening to our country but no one is doing anything about it. What can we do? How can we stop this? Give us some solutions. Please.
The Joy of Tax is dedicated to them
I really do offer more than most
Suzanne-get involved, there are plenty of campaigning groups out there-if you don’t (and are able to) then YOU are part of the no-one-don’t wait for salvation from some great hero that is providing the ‘solution’ WE are the solution, though it will take time and maybe a catastrophe before change happens.
Great article Richard and needed to be said.
I follow economics (as an amateur) but have never seen the point ‘pursue the goal of a balanced budget (which has no economic merit, at all)’.
If you can explain this in a few paragraphs I would be interested to hear why this is the case.
Thanks
Let me try sometime
Hello Richard. You do know that what you describe as the actions by the government exactly describe the behavior of psychopaths. You need to study this “Without Conscience” by Robert Hare or “Mask of Sanity” by Hervey Cleckley (free pdf online) or “Political Ponerology” by Andrew Lobacziewski. Until we understand who these people are, we are unable to take measures to combat this kind of expression of greed, lack of empathy and cruelty. Please take a look at the materials.. maybe it will give you some ideas of where we go from here. We need to out this behavior as the mental condition it is.
Have a look at the book (I’m biased because some of my own correspondence with the author is used in it) ‘Wounded Leaders’ by Nick Duffel (http://woundedleaders.co.uk/) which goes into the psychology of the public school/Eton people and how bullying/callousness and indifference to the suffering of others develops from early experience of protecting oneself from vulnerability.