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A UK recession and economic competence

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A UK recession and economic competence


For the past eleven years we have heard nothing else but, how Gordon Brown was going to put an end to “boom and bust”, how he was an iron chancellor, and how New Labour were beyond reproach in terms of economic competence. How does this correlate with a UK recession that, by all accounts, only those outside government could see coming?

How could so many British people be so naive as to believe that a government that increased taxes and borrowing during a period of significant growth and wealth creation could sustain this? Why did we allow a government to dupe us in terms of its true financial position, with the off-balance sheet PFI initiatives that leave us owing some £170bn, which must be paid off between now and 2032? Government pension deficits of £790bn and so on? All of this on top of the “official” debt figure of a tad under £500bn.

Gordon Brown and his government have been caught out in the lie that has become the legacy of their time in office. They have left this country vulnerable, with high taxes, high debt, long term financial commitment and, above all, lacking leadership. New Labour has become synonymous with spin and its ability to consistently dupe the public and manipulate the press. Inevitably, we will all have to pay for their incompetence. Tony Blair was a prime architect and whilst he may be basking in the fruits of his former position of PM, giving lectures and writing books, he shares responsibility with Gordon Brown. Alistair Darling is just cannot fodder, he knows it, we know it, he is just the fall guy for Gordon Brown.

True leaders show their ability it times of crisis, not the good times and as this government moves from crisis to crisis, relying on a sticking plaster to fix things, it is just going to get worse. True leaders know when their time is up and those with integrity and pride, will step aside and let someone else in. However, there are two large problems here, firstly, a new leader of the Labour Party will not make any difference, given they are clearly a spent force, who have substituted the so called Tory sleaze, with a programme of lies and inept ministers. The second problem is where do we go from here?

David Cameron’s conservative party has still not told us what it is they stand for, what their policies are and what they are about. Yes, Cameron has come up with some quaint new soundbites, such as a ‘broken society’, but so far, it is just rhetoric. This is not backed up by new ideas, proposals, policies or answers. So we still have no idea what they would do if they were in government, so why would the electorate entertain such a party? We could simply be going from the frying pan, into the fire. As for the LibDems, well do we know who they are? Clegg says some sensible things, but this is a party that a year or so ago proposed higher taxes, how many governments have been voted in with a promise of higher taxes? Vince Cable is very knowledgeable, but the party sidelined him, because they felt he was too old, so what does that say about them?

The future does not look so bright! There is no obvious choice, unless Cameron can start to convince us that his party has original ideas and, above all, people that are capable of delivering on them. The main parties have 550 or so MP’s between them, but how many of us could name more than 10 or 20? What does that say about the way the political party’s are run. Even if we can name them, how many would we trust, if any, to lead us through this mess and do we know what they stand for?

As we enter this uncertain time, perhaps it is also a period for reflection, we need to consider whether our political system is truly representative. For example, how many ordinary people have a realistic opportunity to get elected as an MP, if they are not already aligned with one of the principal parties? The Labour and the Conservative party select their candidates based on many things, which often includes, but is not limited to, race, gender and loyalty. Why shouldn’t they advertise to get the best candidate? Yes this is simplistic, but the best ideas often are, surely the electorate is entitled to the best man or woman for the job, not those that are already part of the ‘club’ that is party politics right now?

Over the past 11 years, we have witnessed an obsession with government control, from the 4.2m CCTV cameras, through to the right to detain for up to 42 days without charge. We have been told that we must have ID cards to help protect us from the threat of terrorism, yet the government are trying to include so much biometric data that it is difficult to comprehend the true justification. It is claimed that the UK government and its agencies have more access to our private details than virtually any other country including Russia and China. This obsession with state control is worrying in isolation, but when this is coupled with a dishonest government, self-obsessed ministers, weak members of parliament and a virtually non-existent alternative party, we must start to worry.

There is no sense in kidding ourselves that we have choice or that we live in a democracy, if our choice of ‘elected’ representative is limited to the whim of party leaders. This country was quick to criticise China for primarily limiting their choice to existing members of National Peoples Congress. What is the difference, surely it is only scale?

We need change in this country, we need to review our whole political system and above all, we need to look at the way much of the news media sets the agenda. British Politics expands on this argument.

Posted in Conservatives, General, Labour, Lib Dems | Comments (12)

Gordon Brown you are seriously, seriously deluded

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Gordon Brown you are seriously, seriously deluded


In a recent statement, Gordon Brown said, “We are showing that,unlike previous governments that could not manage a way through these difficulties successfully… we are resilient in the way we are dealing with these problems.” What an arrogant, self-serving and belligerent remark from this man. He is passing judgment on previous government initiatives with the benefit of hindsight, whilst arrogantly assuming that his measures will succeed. Why, because he says so?

This is a prime example of a man that is deluded, one that believes he can do no wrong and one that is undoubtedly surrounded by ‘yes’ men constantly telling him how brilliant he is. Any decent leader will surround himself with people that will challenge him, test him and guide him. This ensures that the ‘leader’ keeps his feet firmly on the ground and does not start to believe his own spin, it is a dangerous cocooned world. Smart people recognise this; clearly some politicians and cabinet ministers do not. But it is the difference between leaders and truly great leaders. Take a look at Gordon Brown’s ‘inner circle’ can you see anyone that is likely to challenge him on policy without being crushed?

If this wasn’t enough, Gordon Brown has, once again said, “There are unique circumstances with the trebling of oil prices. That has not happened previously - and of course with the credit crunch”. In other words, it’s not my fault guv, I have done everything right; it is everyone else that is at fault. If your ministers and advisors don’t have the balls to tell you what you have done wrong, maybe it is left the public?

  • You have hiked our taxes through a series of stealth taxes, to the extent that you have nowhere else to go, you have little or no room for any further tax increases.
  • You have raised £billions in national insurance contributions and then recklessly spent this money on quick fixes rather than long term investments in the health service.
  • You have allowed government departments to squander £billions of taxpayers money on projects that have been curtailed, scrapped or changed.
  • You defied repeated warnings from your own officials in terms of the time bomb you would create by scrapping tax relief on dividends paid into pension schemes. As a consequence of your actions, you have devastated the lives of hundreds of thousands of pensioners and what do we have to show for the estimated £100bn you have scored from their misery? As a result of your meddling, many final salary pension funds have been scrapped….and some companies have had to find £millions to top up the funds.
  • It is estimated that you cost this country close to £2bn when you decided to sell our gold reserves at the wrong time. On this occasion, you ignored the advice of the, Bank of England.  

Whilst the last conservative government may have introduced the Private Finance Initiative (PFI), you made it into a major instrument for the provision of public facilities and services, effectively forcing public bodies to use the PFI model. As a consequence, public bodies are committed to paying a total of £170 billion to contractors in more than 800 PFI schemes up to 2031-2032…not surprisingly; this figure is growing every year.

Of course, we know why you did it, because PFI debt is not usually treated as public borrowing for accounting purposes and therefore doesn’t contribute to the Public Sector Borrowing Requirement (PSBR).  In other words, PFI debt is usually “off balance sheet”, even though the state is ultimately responsible for
repaying it. 

I agree you are resilient, there are not many people that could make so many mistakes, so consistently and still claim to be the leading architect of the success of this country. We have succeeded in spite of you, not because of you and one day the electorate and the newspaper editors will wake up to this fact. If you had been genuinely prudent, we would not have the level of public sector borrowing that we have, we would not be in a position where there in no money in the piggybank to allow us to weather the storm of this current downturn. And, we would not all feel so much pain as a direct consequence of your massive tax take from our current earnings, as well as the reduction in value of our pension funds affecting our retirement plans.

Let me remind you, that £400m was spent on ‘cost control’ for the Olympics, how can you honestly justify that level of expenditure with a straight face? Would a “prudent” chancellor allow expenditure of over £16 million on the creation and upkeep of VIP lounges in Heathrow and Gatwick despite the fact they are not government-owned?

You cannot abdicate responsibility by blaming Blair for the first 10 years either, because we know that, the Treasury, under your tenure, became the principal originator of government policy, rather than an evaluator of policy. Your personal obsession with micromanagement has lead to the introduction of thousands of targets aimed at directing policy; it also determined exactly each the departments should meet their targets. So when a department was or is failing, it is impossible to tell whether the cause is the policy itself or its implementation. This has made it virtually impossible for the Treasury to judge poor performance. Another tidbit for you, during your tenure, the Treasury was one of the largest spending departments, with a budget of £20bn. Is that prudence?

Let me remind you of some of the things you have achieved. Following your introduction of complicated tax credits, it is estimated that the taxpayer (no not the government, it is our loss, our money) loses £2bn every year through fraud and errors. In spite of your micromanagement, it is estimated that the planned NHS computer system will cost £6bn more than originally planned. 

I could go on, but it would take me weeks to list Gordon Brown’s “achievements”. Far from being a prudent chancellor, I am convinced that in years to come, we will look back at both his chancellorship and his period as prime minister and have a completely different take on this so-called iron chancellor. I am further convinced that we and our children will be spending the next 30 or 40 years paying for the mistakes of this government, the former chancellor, the former prime minister and the current prime minister. Gordon Brown should consider his words carefully, because they will surely come back and haunt him, no doubt at a
time when he is not surrounded by yes men telling him how brilliant he is.

 

 

 

 

Posted in General, Labour | Comments (1)

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