Low earners won’t thrive in Big Society
Hazel Scully
Last week, I went to Skelmersdale to talk about David Cameron’s ‘big society’ concept with council tenants Ted and Hazel Scully, and Sandra Porter. I spent time with them last year as well.
Cameron’s ‘big society’ idea is as hard to grasp as it is to buy into. It’s centered on the notions that people will volunteer to provide public services in place of the state and that residents should drive local council spending and direction. Phrases like ‘community empowerment’ and ‘people power’ guff through big society talk.
These phrases means nothing. Neither ‘community empowerment’ nor ‘people power’ will make it past rhetoric under Cameron’s administration. The realities of Tory rule in local government are vicious service cuts and a chilling detachment from people who need public services. There is no engagement. There is no consultation with poorer communities. Funding is cut and services eliminated without a word of discussion with service users and providers.
Let’s spend some time now in Skelmersdale – a working-class town in the Conservative West Lancashire borough: continue reading… »
How do we resolve our housing problem?
contribution by Michael Gun-Why
Housing Policy died around the mid-1990s. It died a slow silent death. What was once an important ministerial portfolio was subsumed into urban regeneration agendas and programmes to tackle anti-social behaviour.
In the last month, with the mild furore over the cutting of housing benefit, we have witnessed the death rattles of housing policy. Several cases in national newspapers of large unemployed families living in million pound mansions in London, make the case for cutting housing benefit simply ‘common sense’, doesn’t it? The answer is yes.
The problem for left of centre progressives is this doesn’t feel right.
continue reading… »
Conservative myths about raising taxes and “broad coalitions”
The Spectator’s Peter Hoskin doesn’t like the idea of extending the 50p top rate of tax to earnings over £100,000 (rather than £150,000) though he rather jumps the gun in suggesting that “it’s fairly probable that this will be official Labour policy in the not-too-distant”.
Hoskin suggests that Ed Miliband has joined Ed Balls and Diane Abbott in advocating this policy. In fact, he hasn’t, despite that claim erroneously appearing in one New Statesman editorial which the Coffee House blog links. What Ed Miliband has said is that he would make the 50p rate at £150,000 “permanent“, rather than temporary, but has yet to go further than that.
Hoskins’ substantive argument continues the tradition of right-of-centre media commentators warning centre-left parties not to desert the centre-ground on higher taxes at the top, when they would do so with only the company of a substantial majority of the voters as consolation.
continue reading… »
Are the two Eds aligning together on policy?
I was impressed by Ed Balls’ speech last week on economic policies, where he stressed “there is an alternative” to the Coalition’s cuts.
I’ve also been critical of Ed Miliband not saying enough on the issue.
Labour members need to know how each of the leadership contenders will approach the economy – not just in countering the narrative that harsh cuts are needed immediately, but how they would like to re-model the economy in wake of the financial crisis.
continue reading… »
Increasing benefits helps people get jobs
Right-wing think tank boss Neil O’Brien writes that:
“If you give people more benefits, they will be better off today. But if that encourages them to stay on benefits, rather than find work, they will be poorer tomorrow. “The question to ask,” as Nick Clegg wrote, “is what its dynamic effects are, particularly across the generations. How does it increase opportunities? Will it unlock the poverty trap or deepen it?”"
Let’s have a look at what these dynamic effects might be.
Between 1996 and 2009, benefits for lone parents were increased substantially. So according to the Clegg/O’Brien theory, we would expect more of them to be encouraged to stay on benefits. Over the same time period, benefits for single adults of working age decreased in real terms. The same theory would suggest that this would lead to more people finding work.
Here’s what actually happened:
In 1996, during a time of economic growth, 45% of lone parents were in work. In 2009, when Britain was in severe recession, 57% of lone parents were in work. continue reading… »
Why Nick Clegg’s attempts to redefine ‘fairness’ don’t stack up
contribution by Nicola Smith
Yesterday’s FT featured an opinion piece from Nick Clegg, where he set out his refutation of the IFS’s analysis.
The Deputy Prime Minister is now arguing that fairness is about more than a ‘purely numerical’ view, and that income distribution only tells part of the fairness story.
But, as with previous attempts, this argument does not stack up.
continue reading… »
Ed Balls slams Coalition with alternative approach to cuts
In a keynote speech today (Friday) Ed Balls will say Labour needs to urgently make the case for a credible economic alternative to the coalition’s “deflationary cuts” which risk a double-dip recession.
In his speech – which is being held at Bloomberg, where ten days ago George Osborne accused Labour of being ‘deficit deniers’ – Ed Balls will accuse David Cameron and George Osborne of being “growth deniers”.
He will say that Labour must challenge the current consensus that there is no alternative. It is a strong speech – and exactly the narrative we need to be hearing from Labour.
Finally – definitive evidence that Osborne’s budget is regressive
contribution by Nicola Smith
Today, End Child Poverty reports on new research, commissioned from the IFS, that shows definitively what many others have highlighted – the cuts announced in the Budget will hit families and the poorest the hardest.
As we showed immediately after the Budget, the Chancellor’s claim that the spending changes he announced were ‘progressive’ has always been contentious – significantly the Treasury’s modelling did not include a third of social security changes, including cuts to Housing Benefit and Disability Living Allowance, and only changes up until 2012/13 were considered.
continue reading… »
Can the eventual Labour leader deal with Coalition ‘bombardment’?
What line of attack will the eventual Labour leader use on the Coalition government once they’re elected?
What will be the key policies that define their agenda and set them apart from the opposition once Britain’s eyes are on them?
I’m not sure I’ve heard a proper answer to these questions yet from the candidates. And this is important because the Conservatives are planning a massive onslaught come late September.
continue reading… »
New studies contradict Osborne’s claim the cuts can be “progressive”
A new study by John Hills shows that the last government’s spending held back rising inequality and that cutting it is likely to be regressive.
At the same time, an evaluation of the 1990s cuts in Sweden and Canada – often cited by the coalition as an inspiration – reveals that they led to significant increases in poverty and inequality.
The first is a report on new research by Prof John Hills of the LSE – so new that, as far as I can make out, it isn’t on the LSE website yet. It looks at the increase in public spending in the first decade of the last government’s existence.
Prof Hills found that this spending boosted the incomes of the poorest more than any other group. He added that a £1,000 a year cut in services would represent 10% of the income of the poorest and 1% of the income of the richest fifth.
continue reading… »
Sir Philip Green: tax avoider gets job on the side
Put the firm in the name of the missus, set the old girl up with a nice little gaff down in Monaco, and then pay her a dividend of well over a billion quid. Tell the taxman to go swivel.
That’s essentially what Sir Philip Green did in 2005, so ensuring that not a single one of those 1,200,000,000 spons got unnecessarily spent on schools and hospitals and that sort of stuff. All 100% legit, natch.
The thing is, the Topshop boss has got an expensive lifestyle to maintain. Not only does he have to find the upkeep of the standard super-rich trimmings, like a £20m superyacht and a £27m private jet, but he has actually got a solid gold monopoly set. Pure class, that geezer.
Coalition’s cock-ups show why they’re losing popularity
contribution by Andy Slaughter MP
I was given two insights this week into why the Coalition’s honeymoon may have come to a premature end after 100 days.
Nick Clegg came to my constituency to preach the virtues of social mobility, but chose as his platform a Project for deprived children which his Coalition partners are evicting and whose grant they are taking away.
Clegg’s cock up was reported as exactly that – a gaffe.
continue reading… »
An open letter to Cameron, from an audience member he ignored
Last week David Cameron attended a ‘PM Direct’ Q&A in Manchester. Ellie O’Hagan, in the audience, got to ask a question and mentioned a friend who had “a crush” on Cameron. But she also asked a serious question of Cameron which he ignored. She was subsequently misquoted in the press and ended up trying to correct online versions.
She has now written a letter to David Cameron. Here, we publish excerpts from the letter (linked at the end) by Ellie. It is an excellent piece of work.
Dear Prime Minister,
Thank you for visiting the North West on Tuesday, 10 August 2010 and taking time to listen to the concerns of the local electorate. You may remember me as the person who mentioned her parents and her friend who has a crush on you (for which I have had to apologise profusely since).
continue reading… »
Report shows cutting road safety cameras will kill more people
In recent Cuts Watch postings we’ve reported on the rapid disappearance of road safety cameras.
Figures out yesterday revealed that the price in extra deaths and injuries will be more likely to be paid by the poor.
Philip Hammond, the Secretary of State for Transport has said that the decision to stop funding local authorities’ cameras is about more than saving cash. He says it is a good thing in itself: the government will “end the war on motorists.”
This is despite the findings of independent research funded by his own Department, which found that, at camera sites, speeds were down and excessive speeding was substantially reduced and there were 100 fewer deaths a year.
Yesterday saw the publication of the Child Casualties Report 2010 by Road Safety Analysis Ltd. This study looks at the level of risk on the roads faced by children in 2004-8, analysed by where they live.
On average, one child in 427 in Britain is injured on the roads each year, but there are huge variations from area to area – in Preston the rate is one in 206, in Kensington and Chelsea, one in 1,158.
Using postcodes, the report is able to link casualties to the Experian MOSAIC socio-demographic classification system (increasingly used by marketers). The study specifically looked at which types of community are under- and over-represented; in the table below, 100 means that a community has the same proportion of accidents as its share of the population.
A lower number means a lower risk rate, a higher number a higher rate:
Children’s relative risk of casualties, 2004-8
| Mosaic group | Risk index |
| Symbols of Success: People with rewarding careers who live in sought after locations, affording luxuries and premium quality products |
61 |
| Happy Families: Families with focus on career and home, mostly younger age groups now raising children. |
96 |
| Suburban Comfort: Families who are successfully established in comfortable, mature homes. Children are growing up and finances are easier. |
79 |
| Ties of Community: People living in close-knit inner city and manufacturing town communities, responsible workers with unsophisticated tastes. |
122 |
| Urban Intelligence: Young, single and mostly well-educated, these people are cosmopolitan in tastes and liberal in attitudes |
44 |
| Welfare Borderline: People who are struggling to achieve rewards and are mostly reliant on the council for accommodation and benefits |
118 |
| Municipal Dependency: Families on lower incomes who often live in large council estates where there is little owner-occupation |
211 |
| Blue Collar Enterprise: People who though not well-educated are practical and enterprising and may well have exercised their right to buy. |
154 |
| Twilight Subsistence: Elderly people subsisting on meagre incomes in council accommodation. |
54 |
| Grey Perspectives: Independent pensioners living in their own homes who are relatively active in their lifestyles |
51 |
| Rural Isolation: People living in rural areas where country life has not been influenced by urban consumption patterns. |
80 |
The social distribution of car ownership is different. The table below shows the proportion of households in each income quintile with access to at least one car in 2007:
Access to one or more cars, GB, 2007
| Top fifth |
90% |
| Next fifth |
90% |
| Middle fifth |
84% |
| Next fifth |
64% |
| Bottom fifth |
45% |
There is a class dimension to scrapping road safety cameras; yet again, the cuts harm the interests of groups disproportionately likely to be poor and benefit the interests of groups disproportionately likely to be better-off.
Why Alistair Darling is wrong
Alastair Darling says:
We rather lost our way. Rather than recognising that the public were rightly concerned about the level of borrowing, we got sidetracked into a debate about investment over cuts. By failing to talk openly about the deficit, and our tough plans to halve it within four years, we vacated the crucial space to make the case for the positive role government can play. “You will only convince people you’ve got the answers if they believe you know what the question is in the first place.
But..
continue reading… »
Will Cameron apologise for accusing Labour of lies over winter fuel payments?
The Telegraph is reporting today that ministers have “resolved to increase the qualifying age” for the winter fuel allowance from 60 to atleast 66. Even that may be increased.
The basic winter fuel payment will also be cut by £50 for new recipients and £100 for the oldest.
Contrast that with Cameron only in April this year
continue reading… »
We’re not “deficit deniers” Mr Osborne – we worry about how you cut spending
contribution by Tamsin Omond
“We are engaged as a Government in a collective effort [...] to create a simpler, fairer welfare system that, above all, gets people into work,” said George Osborne.
And if you don’t agree that cuts are the way to deliver a simpler, fairer welfare system then Osborne knows what to call you: “deficit-denier“. A deficit denier (despite the wording) isn’t someone who actually denies the deficit – that would be ignoring the facts in front of us.
Rather it is someone who disagrees that Osborne’s methods will give us fair and progressive cuts in public spending, or (even worse!) it is someone who’s found that cutting public spending is not the only way to save or make public money.
continue reading… »
When will the Right admit the Coalition has gone too far?
There’s a classic rhetorical trick right-wingers employ when feeling desperate: say Labour has been taken over by the ‘loony left’ and isn’t reflecting Middle-England. For Labourites still shell-shocked from the 80s and 90s this is a cue to start worrying about their electoral prospects.
But in fact the evidence right now points to the opposite.
Labour has risen about 8-9% in the polls since the election without even having a leader with one coherent message. The public overwhelmingly supports more taxes on the very rich to deal with the deficit. They overwhelmingly thought Labour was too close to bankers at the last election.
continue reading… »
A letter from the Confused British Public
Dear The Left,
Thank you for your policy suggestions, which have been passed to the relevant departments. We are very grateful for all your hard work, however it would be appreciated if you could clarify some points.
We have been listening to your theories on the deficit and we are certainly interested in your theories.
As a member of the British Public, to tell you the truth, I’ve always thought of a country’s budget like that of a household’s, but thinking about it I see you have a point and that things are more complicated than that.
continue reading… »
Labour must pledge to heal the sickness at the heart of our economy
I once worked at the bank Merrill Lynch. During the tech-boom, one of Merrill’s analysts, Henry Blodget, an expert on technology companies, would write equity research – essentially buy or sell recommendations – that the bank’s stockbrokers would use to recommend securities to their clients.
However, while he was publishing reports saying that certain securities were instant buys, he was also sending internal emails ridiculing what “dogs” they really were. Meanwhile, there was pressure from the retail banking side, which invariably wants to capture cash deposits and provide servces to businesses for large fees.
I saw this often during my time in the City.
continue reading… »
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