Nick Macpherson, who was for some time the permanent secretary (or civil service boss) at the UK Treasury, has an article in the FT today, saying:
This weekend the Treasury and Bank of England will be breathing a collective sigh of relief.
Officials no longer have to worry about the prospect of a tax-cutting mini-Budget in the autumn. The Bank of England no longer has to worry about politics clashing with monetary policy decisions.
The rest of the article is about the importance of having a sound fiscal plan, rather than an excellent fiscal rule, but the real giveaway in what Macpherson (who I have never had much time for) has to say is in those opening comments.
They say that the Treasury and Bank of England think they are back in charge, and you can be sure that Macpherson knows this.
In other words, whatever the electorate thinks or does, and whatever the potential politicians due to arrive at the Treasury soon might suggest now, those who want to maintain the profound bias within the UK fiscal establishment in favour of wealth and austerity are safe in the knowledge that this is the outcome they are going to get.
No wonder wise people think two things.
One is that the Bank of England's independence has to end.
The other is that the power of the Treasury has to be broken up. A ministry of government accounting, another of tax, and a third of economic development are required. But the perpetuation of the power that the Treasury now has is the last thing that this country needs.
Starmer will not, of course, make any such change. Rachel Reeves wants that power very badly.
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I agree with the analysis. This is an extract from a leaflet for independents.:
“A previous section described how taxes can control inflation. The other way to do this is to use interest rates. These are set by the BoE. Both main political parties make a big deal of “Bank of England independence”. What this means in practise is that a bunch of very highly paid unelected bureaucrats make decisions on interest rates that will affect you. Their decisions are, for the most part based on out-dated beliefs that have no connection whatsoever to the real world”
The Brexit narrative was about freeing the Uk from rules set by unelected bureacrats in Brussels. What about the unelected bureaucrats in the BoE and the Treasury who regard Reeves (& thus Starmer) as pawns? Sauce for the goose etc. But as observed – Reeves wants to be Chancellor – so…
On a related note, Tory voters regard Starmer as a cross between the Tin Man in the wizard of Oz and Frank Spencer in “Some Mothers do ‘av em”. Wooden and stupid?
One other thing that puzzles me: why is it that so many LINOs are adenoidal when they speak? Is there something wrong with them?
Rational people in the West tend to think there are only two monsters in the world communism and fascism. Particularly with the advent of global warming they are starting to realise there’s a third and that’s the Neoliberalism monster. They are starting to see that in chasing market power capitalism also has to chase political power. Market Fundamentalist ideology (inspired by Libertarianism) is therefore not a stand alone ideology! I say starting because Starmer is clearly a Neoliberalism monster who breaks promises at a drop of a hat and stiffles party dissent to do so. Unfortunately the Tory Neoliberalism monster has blinded many to become rid of it without seeing the other one in the wings waiting to takeover.
Neat idea in there
This new book looks interesting: “The Invisible Doctrine: The Secret History of Neoliberalism (& How It Came to Control Your Life)” by George Monbiot and Peter Hutchison. (16 May 2024). https://amzn.eu/d/5VtSBso
Reviewed here: “Neoliberalism: time for a new story of hope”, Yorkshire Bylines, https://yorkshirebylines.co.uk/business/economy/time-for-a-new-story-of-hope/
There must be something in it, as it is dismissed in a review in The Spectator “Western economies are failing – but capitalism isn’t the problem” (25 May 2024), The Spectator, https://www.spectator.co.uk/article/western-economies-are-failing-but-capitalism-isnt-the-problem/
Agreed
@Mike Parr: “why is it that so many LINOs are adenoidal when they speak? Is there something wrong with them?”
I also wonder why!
Maybe there’s some central party speech trainer who homogenises everyone to their particular mode, thinking that it’s clear (?!) or somehow makes them sound ‘more like ordinary, hardworking people’ (the classic phrase!)?
Or simply they’re all from the same stable (whatever their origins): metropolitan elites, Oxbridge neoliberal, BoE or business schooled…?
Whatever they actually say, it doesn’t endear them to me At least Mrs T had a good voice coach!
It’s probably as far as they dare go in the direction of what they imagine the common man sounds like, approaching Estuary English rather than embracing the full Cockernee, innit bruv?
We know anyway much of the BoE’s supposed independence is largely cosmetic thanks to the BoE Act 1998 and its not nearly famous enough passage “(1) The Treasury, after consultation with the Governor of the Bank, may by order give the Bank directions with respect to monetary policy if they are satisfied that the directions are required in the public interest and by extreme economic circumstances.” true, a statutory instrument has to be laid etc but the existence of the threat means it wouldn’t need to be used so ipso facto the BoE only does what it does with Treasury/Chancellor/Governmental approval.
Such is my understanding. Why aren’t we seeing more clear direction from Parliament about money creation as necessary a la Covid response then, I wonder? Can’t be because of EU rules, so why? Mind, if our political leaders don’t care about the Palestinians, as they make obvious, no reason for them to care about us either. That might explain it.
I agree with your reading on this
As soon as you see the words ‘statutory instrument’ you know democracy is being by-passed, they are up to something fishy, and the result will be a public comprehensively scammed by their own government,without even being aware it ever happened. And that doesn’t exhaust government’s capacity to bury what you do not know about what they do to you. The he ay armaments are buried in Crown Prerogative. Endless resource to scam you there.