Tag Archive | "economy"

Tory leadership crisis, David Cameron lost at sea

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Tory leadership crisis, David Cameron lost at sea


Okay, okay, so this statement would be typical of New Labour, an attention grabbing headline and little of real substance below the line. But I will try and make up for it!

For the past 6 or 8 weeks and more specifically in the last two weeks, this country has faced one of its greatest challenges in a generation or perhaps more. The present Government has been further weakened by internal feuds and the leader looks as if he is on another planet, in fact, when he speaks, it serves only to confirm this notion. In this turbulent period, the government has shown no leadership and provided and there has been little or no suggestion that they event know what is going on, least of all how to steer this country through the maze.

There is increasing evidence that the people of this country are far more politically savvy than a decade or so ago and they are being far more vocal and expressive about there feelings. With the ban on smoking in the pubs and clubs around this country and the reduction in the cost of broadband, more and more people are expressing their views online. The people are saying, get it together man, you have failed, us, redeem yourself, show us leadership, confidence, depth and honesty. The leader, Gordon Brown, and his cabinet have scurried around at a great rate of knots but achieved nothing.  

The government even resorted to their old tricks of ’smoke and mirror’ soundbites with the promise of help for all, on energy saving measures. But when the announcement was unravelled, it turned out that the nearly every penny was being put up by the energy companies and even then, they clearly had not agreed, because the government was threatening legislation if the energy companies did not comply. Worse still, the government sought no assurance that we would not pay for these programmes through higher future bills and they put less into the overall initiative than they deducted off the Warm Front budget. Evidently this is a government in turmoil, a rudderless ship, but with no other captain on board.

So what better time for the leader of the opposition, David Cameron to ride to the rescue, to show himself and offer up creative, tangible solutions and ideas? But the amazing ‘invisible man’ is nowhere to be seen. Here was a prime opportunity to set politics aside and come up with proposals, new ideas and the people to drive these initiatives forward. Programmes that could offered all party support, a united front at a time of crisis, after all, this country is at war, albeit of a different type to the conventional description. A self-deprecating speech, accepting that whilst New Labour was the primary entity responsible for our current predicament, he felt that all members of parliament should share in that responsibility.

So, here was a perfect opportunity for David Cameron to demonstrate true leadership and maturity, by offering to assist the government in any way he could, by coming up with alternative ideas, initiatives, programmes and interventions. Rather than using the opportunity to kick a man whilst he was down, the British public just don’t like that, he could have offered a helping hand. Allowed, the British public to see that he wasn’t simply a silver spooned, old Etonian, but a person with substance, initiative, depth and commonsense. A person ready to help when needed, to unite under the flag and tackle the issues head on for the sake of the British public. The so called ‘leader’ of the opposition has shown no such skills, he has become the amazing invisible man and in doing so has demonstrated political cowardice, something that is unforgivable in the current climate.

He is so worried about dropping in the polls, that he has said virtually nothing, he is so scared of getting it wrong, he hides in the corner and he is so petrified of New Labour stealing his ideas, that he prefers to see this country suffer, rather than affect his poll results. This suggests a shallow man, one that lacks the maturity and gravitas to lead this country and above all, one that is driven by polls, rather than actions. Well, the latest polls indicate that his strategy is failing, he has fallen in the polls and the LibDems have picked up the slack and quite right to. Those guilty of political cowardice should not be rewarded. Perhaps we should all be grateful that we found out early enough to do something about it.

Cameron might argue that he is keeping his powder dry for the Conservative party conference, perhaps, but this is akin to a life saver watching a drowning man struggle, whilst he puts his swimming cap on, to ensure that his carefully crafted hairstyle does not get wet! History tells us, that in a crisis, it is often the most unlikely people that end up being our saviours, with those that talk to the talk, rarely proving that they can walk the walk. Because a guy is relatively young and talks posh, does not mean he will be a good leader or for that matter prime minister. In fact, most of our better leaders have not been oil painting, so pretty boy needs to think on!

David Cameron, you need to come out of hiding, show yourself, stand up and be counted. Whatever the polls say at the moment, when the time comes, we will either remember your political cowardice, or the other parties will remind us, so when you need the British public the most, they may just desert the coward. I have always considered the Conservative party to be something of a powerhouse, but now, all I see is a quivering wreck.

Posted in Conservatives, General | Comments (6)

Gordon Brown: UK has strong underlying fundamentals, Really?

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Gordon Brown: UK has strong underlying fundamentals, Really?


If you have heard him say it once, you have heard him repeat it 100 times. Gordon Brown keeps telling is that the UK economic fundamentals are strong. Now I am no economist and that will become self-evident when reading this blog, but I am blessed with a little commonsense and logic. My conclusion, the so called fundamentals don’t look so great from where I am sitting, so common Gordon enlighten us.

At the CBI Scotland Annual Dinner, Gordon Brown outlines what he considered those fundamentals to be, they are;

“First, Bank of England independence has given us low interest rates founded on sound macroeconomic management and so despite increases in the prices of food and fuel - and I understand the impact this is having on families and businesses - the sound framework for monetary policy which we have established means inflation remains far below the double-digit levels we saw in the earlier decades. And this will help ensure that interest rates remain similarly low by historical standards.

Second, the most flexible labour market in Europe means that even though unemployment has risen in recent months, employment remains close to record highs - and wage pressures are subdued, led by our own responsible decisions on public sector pay. And with the investment in the New Deal and our latest welfare reforms there is more support than ever before to help people back into work and to fill the 600,000 vacancies still in our economy. And a balanced approach to migration allows businesses to benefit from the specific skills that economic migrants can bring to our country and improves the responsiveness of our labour market to fluctuating demand.

Third - the underlying financial strength of British business reflects its improved efficiency - driven by your hard work in achieving the fastest growth in average productivity in the past decade across the whole of the G7. Britain remains a magnet for overseas investment and our export performance is improving, with our manufacturing productivity growth strong.

Fourth, low debt. The significant debt repayments we made since 1997 mean we have cut public debt as a share of national income from 43 per cent in 1997 to today’s 37.3 per cent. This means that, unlike in earlier economic slowdowns, we can sustain our ongoing commitment to investment in fixed capital infrastructure - up 58 per cent in real terms in the last decade. In 1997 we invested £144.5 billion. Today it is £229 billion. Even after inflation a 58 per cent rise.

And - while  no government can hope to protect people from the full impact of the global credit crunch or the worldwide spike  in commodity prices - I am determined that we should do what we reasonably can to help families and businesses through this difficult period of adjustment. So we will back up our investment commitments with careful interventions designed to provide targeted support for hard-pressed families - such as this week’s home-owners’ support package and the £120 a year tax cut for basic rate taxpayers that will start to feed into pay packets later this month.

Fifth – we are making all the long term decisions, difficult as they are, to boost our competitiveness; on energy, planning, transport, housing, digital technology, science and skills. And the 2002 Enterprise Act has given us one of the most robust, independent competition regimes anywhere in the world. The support for British enterprise - strengthened over the last decade with the launch of Enterprise Capital Funds, the Small Firms Loan Guarantee and administrative burden reduction targets. Britain today has four and a half million businesses - more than ever before. And the OECD says Britain has the lowest barriers to entrepreneurship of any OECD country. ”

Now lets have layman’s take on this, as I said, I am no expert on economics, but I am one of the people that is expected to understand what the government is telling us.

Fundamental One

One of the primary movers in determining interest rates is inflation and as we have seen over the past few months, Gordon Brown is limited in what he can do to control inflation. Yes he can keep public sector wage deals low, but he cannot control commodity prices such as fuel and food, which can have, as we have seen, a significant impact on inflation. Furthermore, government borrowing can also affect inflation, but Gordon Brown’s fancy footwork has managed to keep long term debt such as the PFI initiatives off the government balance sheet. This may have the affect of massaging government borrowings, thereby providing a knock-on affect in terms of lower interest rates.

Fundamental Two

Gordon Brown goes on to lecture us that the second part of the fundamentals is a flexible workforce, low unemployment, low wage settlements, economic migrants and welfare reforms. Really? Firstly, there is no explanation of what a flexible workforce is, but whatever it is, the government cannot claim the credit for it. The low unemployment figure doesn’t stand up to close scrutiny either. There are now 1.7, people out of work and on top of that those claiming disability benefits have risen to 2.5m, many of which, under the old system, would have been classed as unemployed. So, once again, this would appear to be a deliberate manipulation of the true jobless total.

Granted, the government can be credited with reaching low wage settlements with the public sector, although their ability to maintain these agreements may be questionable given the increasing militancy of the the public sector unions. But there is something else that Gordon Brown has omitted to include here. Many public sector employees benefit from excellent, final salary pension schemes and, even though many of these have been withdrawn in the private sector, Gordon has not had the courage to likewise in the public sector. Therefore, whether Gordon Brown likes it or not, it is an inconvenient truth that pensions are a cost of employment and it is estimated that our public sector pensions deficit is some £890bn, yet the government does not include this obligation anywhere in their figures.

So what about economic migrants, who do they benefit? Well yes, they benefit private companies that cannot or more likely, will not offer a wage sufficient to get ‘local’ workers to join their business, even though we have 1.7m unemployed. But what about the hidden cost, economic migrants can bring their families if they wish and many do, so when they are here, we must provide them with, at the very least, free education and free healthcare. So, in effect, by offering these benefits free, we, the tax payer are effectively subsidising employers looking for cheap labour. As the government knows only too well, these economic migrants could not possibly pay enough in tax and national insurance to cover the cost of these free benefits. If I was Mr Brown, I would be keeping my mouth shut, unless of course, he thinks we are all too stupid to work it out.

Fundamental Three

Gordon claims that we have the fastest growth in average productivity in the past decade across the whole of the G7. This may be true and therefore I will accept it at face value. But, can he really claim that their is an underlying financial strength in British business? Over the past few months, we have seen a high street bank have to be rescued by the tax payer, we have had a series of profit warnings from major retailers and manufacturers, we have had a number of high profile companies having to go to the stock market for more money to shore up their balance sheets and we have seen the failure of several airlines and the UK’s third largest travel companies. This doesn’t look strong.

In addition, we are now starting to see the highest level of business failures in over a decade, particularly small and medium sized businesses. Gordon Brown would do well to be remember that it is the SME market that has created many of the new jobs that he takes credit for, but also, because they cannot afford to go offshore or look at fancy methods of tax avoidance, they loyally pay their taxes. So what has he done for them?

Despite promised to the contrary, he has saddled them with a mountain of red tape, punitive fines and penalties for even the smallest misdemeanor in respect of tax or VAT returns. He has ensured through legislation that, the SME employer now has to have expensive experts on hand either as employees or consultants to advise on health and safety issues and employment issues as they have become one of the largest burdens on any small or medium sized business. In doing so, Gordon Brown, his cohorts and civil servants have demonstrated that they know nothing about running a business of this size.

Further, as a result of reduced central government funding to local authorities, business are having to pay ever higher business rates, even though they are getting less and less in return. Typically business rates now equate to 50% of the SME’s lease or rental costs. That is not business friendly, it is punishment. Far from taking credit for the business sector success, certainly in terms of the SME’s, he and his penal policies have made it increasingly difficult for them to survive as will be demonstrated over the coming months with a disproportionate number of SME business failures. You mark my words Mr Brown. This government also withdrew tapered tax relief a few short years after it was introduced to encourage entrepreneurship.

Fundamental Four

This takes the biscuit, Gordon Brown claims that government debt, as a percentage of national income has fallen from 43% in 1997, to 37.3%. As I have mentioned before, this is not a true figure, it is massaged. Mr Brown has become adept at using fancy footwork to ensure that government obligations do not end up on the government balance sheet. Now, I am not suggesting that he can’t do this, because he has, but what is the point in kidding himself, unless of course, the plan is to kid us? Between now and 2032, we will have to pay back some £170bn through the various PFI schemes used to pay for our schools, hospitals and other infrastructure projects. This doesn’t appear as a borrowing, so what is it? Then there is the debt from the failed Network Rail project and Northern Rock, as well as countless other obligations, why don’t these show up?

This man, even claimed in his speech, that he is using government intervention to assist families and business, bragging that basic rate tax payers will receive £120 a year in tax cuts. Have I missed something, this is the man that though he could rip us off using a classic trick of smoke and mirrors, got caught out and had to back down, Then he is trying to claim that it is some gift from the government. What an arrogant, deluded little man he is. 

Fundamental Five

This is really a more detailed repetition of Gordon’s ‘Fundamental Three’, but there are many more grandiose claims that do not bear scrutiny, but I haven’t got the time to analyse them one by one, so perhaps Gordon can enlighten as all be telling us how many of the 4.5m businesses he alludes to have actually been able to benefit from the Enterprise Capital Funds and the Small Firms Loan Guarantee? Precisely what red tape burdens has he removed and does this assessment include the new red tape this government has introduced.

I would also be very keen to hear precisely how this government can claim credit for boosting our competitiveness; on energy, planning, transport, housing, digital technology, science and skills. I don’t remember any of the companies operating in this sector thanking the government for their contribution. He also claims that our exports are improving, could this be anything to do with the fact that Sterling has weakened against all of the other major currencies, one of the primary reasons that our bills and inflation is rising, given we are a net importer of goods.

There are also other things that a government should be doing, such as planning. Gordon Brown makes no mention of the fact that as a direct consequence of his government’s prevaricating over nuclear power stations, there is a very real risk that we could suffer major power shortages in  3 or 4 years few years time, as the older power stations are de-commissioned and new one’s which take 10 years to build, are not ready. We could be reduced to third world levels of power shortages, with an estimated reduction of some 35%, affecting every family, every home and every business in the country. There is your legacy Mr Brown.

As I have stated at the outset, I am not a financial or economic expert, but when I analyse what Gordon Brown has said, against what had actually happened, I see a massive gulf. Therefore, this man must be deluding himself, or attempting to hoodwink the public. Either way, it is not good for us or our country. Step aside Mr Brown, before it is too late.

Posted in General, Labour | Comments (0)

Fuel Poverty and the proposed government rebates

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Fuel Poverty and the proposed government rebates


Gordon Brown is right, the rumoured proposal that the government provide rebates or vouchers to those in ‘fuel poverty’ is simply not sustainable. With an estimated 4.5m homes in fuel poverty by the end of the year, this problem is of a scale that no government can realistically resolve without placing a massive burden on the public purse. Worst still, the problem will still be there in a year’s time, possibly even worse and those recipients will expect the government to step in again.

The government is right, investment needs to be placed into a long term solution, that both encourages and helps people use less energy. This is part education and part investment. It is estimated that home insulation and other energy saving measures can reduce energy bills by as much as a third. However, the government recently reduced the money available to Warm Front by a third, this does not provide much evidence that the government is practicising what it preaches. No doubt Gordon Brown will reverse this decision and then suggest that it is “new money”.

Whilst there are an estimated 4.5m people in fuel poverty, it is worth noting that everyone is suffering, irrespective of whether they have been labeled as such. Those that are not currently in fuel poverty are also having to contend with higher fuel bills, higher food bills and in some cases, higher mortgage costs. Many who are actually working have had to seek part-time jobs. If the government provides subsidies to those in fuel poverty, the truth is, everyone else will have to foot the bill, either through higher taxes or higher fuel bills. The government need to be creative rather than simply shifting the burden, not least because those that are in work have consistently, under this government, been expected to take up the slack and pay for those that are not prepared to look for part-time work.

The government should increase the amount of money available for energy saving measures such as insulation and low energy bulbs. They should persuade, rather than attempt to threaten, the existing energy companies to meet this additional investment on a pound for pound basis. It must be remembered that these energy companies will have to invest billions of pounds over the next 10 years to secure our energy resources for the next generation. They must stop talking about a windfall tax, but instead, use the carbon trading scheme to maximum affect to encourage the investment in UK based energy saving measures rather than those of third world countries.

There is no doubt that the energy companies have taken advantage of the current turmoil to increase their profits and therefore the dividend payments received by their shareholders. The government must provide the regulator with teeth, in order that the regulator can control and approve energy increases. If the regulator is not in place to keep a handle on such matters, then what is it there for? [Can Parliament control Energy Prices]

Another, perhaps more controversial solution, is to allow those in fuel poverty to seek part-time jobs. Yes, I am talking about lone parents, pensioners, the unemployed and the 2.5m in receipt of long term disability payments. There will be some that are genuinely not capable of work, even light work, but the vast majority could do something, stacking shelves, cleaning, washing cars etc. If those in work have to help themselves to keep their heads above water, then why not the unemployed, lone parents, pensioners and long term disabled? Many won’t because they have to declare the money they earn and so, for every pound they earn, they lose it in benefit. So in a way, their view is understandable, given it is a disincentive to help themselves.

Instead of just giving them another handout, which only encourages them to expect a bailout everytime they are in trouble, the government should give them a tax free allowance, that would allow them to earn, for example, up to £150 per month without having to pay tax or national insurance. Yes, we wouldn’t get any tax revenues from these earnings, but neither would the rest of us have to pay out a cash subsidy in full. Better still, it encourages them to stand on their own two feet, to stop looking at the state, or more accurately their working neighbours, friends and relations to subsidise their living expenses. There may be a special case for pensioners, but they, of course, do receive additional fuel allowances and many would work part-time if it were not for the complicated process of paperwork and tax they must endure at the hands of this bureaucracy obsessed government. Those in receipt of ‘tax credits’ could be provided with a special ‘work credit’ that would allow them, or their partner to earn a specified amount of money which would not be subject to tax or national insurance. This could be removed, if necessary, at a leter date as the economy improves.

Any allowances should be very carefully targeted at those that simply cannot help themselves, genuine cases, not the workshy. Those in receipt of benefits would have no excuse not to do what everyone else must do when things are tight, to go and get a part-time job, to help themselves. You reap what you sow.

A creative approache to government always has its critics, because there will always be those that believe it is wrong to expect people to help themselves, or it is just not the way things are done in the UK. Who cares, our greatest leaders have had original thought and a desire to deliver. But, desperate times require desperate measures. A government bereft of original thought, needs to be more radical, a government that believes throwing money rather than opportunity in the direction of the so called poor, needs to look at alternatives.

This government needs to look at its income much the same as the average family. In difficult times, the family will look at ways to economise, ways in which they can generate additional income and ways in which they can reduce or minimise the cost of their borrowings. Government needs to adopt a similar approach. There are countless examples of this government’s waste, excess and abuse of taxpayers money. They need to reign this in now. Government needs to look, not at borrowing their way out of this mess, or just dipping into the pockets of the hardworking taxpayers once again. They must be creative in their thinking, radical in their approach and understand that if it was not for the taxpayers of this country, the poor would be desolate, starving and homeless. But there is a limit to just how much you can redistribute wealth and most taxpayers have had enough.

The pound is low, which makes exports much cheaper, this government should have their best ’salespeople’ lobbying leaders of other countries to buy our products, to improve our exports. It doesn’t matter whether it is the trade department or the ambassador, everyone should be put to work to help this country. Taxpayers funds, as the government has finally discovered, are not the bottomless pit they once believed. Be creative, be bold and stop worrying about your seats at the next election. This government must start to demonstrate respect, not contempt for the ‘have’s’ that have subsidised and supported the ‘have not’s’ and allowed you to spread our money around as if it were your own or an automatic entitlement. Above all, remember, there are 650 of you that have been entrusted with the future of this country, earn that trust by doing your jobs!

A good start would be to suspend or dramatically reduce our overseas aid budget. This could provide up to £5bn to invest in energy saving measures. Charity, as the saying goes, begins at home. This government ignores that at it’s peril.

Posted in General, Labour | Comments (9)

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)

Housing Crisis, what they don’t want us to know

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Housing Crisis, what they don’t want us to know


I am no economist, nor am I a banker, but I invite those that are to pick holes in my assertion or put my mind to rest. I have never been a great advocate of government intervention, but I believe they need to do far more and now, before we reach a genuine crisis driven by the falling property market.

Many people have suggested that the property market is long overdue for a “correction”, but just how far should this be allowed to go? If we assume that a bank has secured its lending against an asset, which subsequently falls, surely at some stage the banks will be required to write down the difference, just like any other business? If this is the case, they could, theoretically, breach their covenants in terms of their reserves.

Banks have very strict rules in relation to their reserves and many may end up having to go cap in hand to the market in an effort to raise money to shore up their capitol reserves. In a nervous market, this is going to be very tough, particularly if there are several banks trying to do this at the same time. The affect of a major bank failing could have catastrophic consequences for the city, Sterling and the UK economy. This would almost certainly lead to some form of government bailout, which would very costly indeed at no doubt lead to the breaking of our own fiscal rules in terms of borrowing.

Therefore, surely the government would be better advised to intervene now, invest what is required to stablise the property market and avoid a banking crisis. The government must know the risks, they pay hundreds of millions of pounds to expert advisors every year. Now, they may want to keep this information from the public, but they simply can’t afford to ignore it.

Posted in General, Labour | Comments (2)

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.

 

 

 

 

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Alistair Darling, is honesty the best policy?

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Alistair Darling, is honesty the best policy?


So, Alistair Darling finally tells everyone what we already knew, that the economy is in dire straits and our government hasn’t got a clue how to deal with it. In fact, in the interview, he goes on to suggest that the party needs to re-gain its “zeal” if they are to win a fourth term in office. Is honesty the best policy in politics?

Wake up Alistair, if the economy is in such a mess, your party must take its share of the responsibility, after all, your boss has been claiming all of the credit for the past 10 years of growth, which he has conveniently been forgotten as the legacy that was passed on to him by the previous conservative government. Your first priority must be to get us out of the mess that you and your party of government sauntered into. You and your party have been in denial for too long.

What saddens me, is whilst it would appear that Alistair Darling is actually quite an honest sincere sort of chap, who doesn’t want to kid the public anymore, experience suggests that this is more likely to be a cynical approach to the whole debacle. If he tells us what we must expect, then he can’t be accused of hiding the truth from us all, if he paints a particularly bleak picture and it turns out not as bad as he predicted, then he can claim the credit for saving the day. Or, perhaps, if he tells us what pressure he and his government are under, we will all feel sorry for them and provide them with a sympathy vote.

What may have been a genuine heartfelt interview with the Guardian newspaper (also described as a “gaffe”) has, however, been undermined by the fact that he has since come out and insisted that the problems we are facing as “worldwide problems”, which by implication means it cannot his fault, his predecessors or the governments. This is ludicrous in the extreme. Yes there is a general downturn, but we are suffering more than most. Why? Because his predecessor spent the last decade spending an increasing amount of money, through borrowing, stealth taxes and higher general taxes as a consequence of more employment and higher company profits. But honestly, what do we have to show for it, not much?

France and Germany were more prudent. Gordon Brown used to delight in comparing our growth figures with theirs, true, France and Germany did take longer to recover from a downturn. But unlike us, they put a little away for a rainy day, we haven’t. So the government can only “help” us through higher taxes, higher borrowings or, most likely, a combination of the two. However, they won’t help the majority, no; they will help traditional Labour supporters, by offering grants, tax credits, hand-outs and so on, which the rest of us will have to pay for. I don’t know about this government having to find its zeal, maybe someone has confused this description and what they actually meant was the government had to regain its ability to steal from the majority, to support the ‘minority’, or a more accurate description may be the core labour voters rather than the minority.

As an act of contrition for the damage they have caused, this government should step aside and let the electorate decide who they trust to take this country forward. Let us take the responsibility. If the Labour party gain their fourth turn, then so be it, if not, then they will have to accept that we have all had enough of false promises and the abdication of responsibility that has been the Labour party mantra for anything negative.

The Labour party cannot expect to get away with taking the credit through the so called good times and then blaming everyone else when things start to go wrong. Winning the next election has nothing to do with “zeal”. Alistair, your party of government has an unelected prime minister, you lied to the electorate about a referendum on the EU constitution, you have consistently increased our taxes through dishonest stealth taxes rather than a more honest increase in the standard rates, you have squandered the billions of pounds raised through the increase in national insurance contributions, you have plundered peoples pension funds, whilst retained a ‘gold-plated’ pension plan for yourselves, you have taxed us for every single ‘benefit in kind’ whilst ignoring such rules for members of parliament, you have placed this country in jeopardy by failing to plan ahead in terms of energy independence….

I could go on, but what would be the point? Alistair, don’t just be honest about the current economic state of the country, take an objective look back at your party’s so called “achievements”, consider the promises you made and whether you ever really delivered on them, the money you have spent and whether you received value for money for the taxes and, of course, New Labour’s values and whether you remained true to them. You don’t have to look far to see that your government is finished, you should do the honourable thing and call an early election, so that someone can be given a mandate from the people of this country to clear up your mess.

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