Labour

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There is going to be no growth in the UK. Welcome to a world of Labour austerity and the resulting downward spiral of gloom and failure.

Published by Anonymous (not verified) on Thu, 02/05/2024 - 6:14pm in

As the Guardian notes this morning:

The UK’s economic outlook has worsened this year as high interest rates and the lingering effects of last year’s surge in inflation take a bigger toll on growth than previously expected, according to the Organisation for Economic Cooperation and Development (OECD).

It added:

In a downbeat assessment of the potential for the economy to expand in 2024, the Paris-based thinktank downgraded its forecast for UK growth this year from last November’s forecast of 0.7% to 0.4%.

It predicts a modest bounce back in 2025 with growth of 1% – a rate of growth half that projected by the Treasury’s independent forecaster, the Office for Budget Responsibility (OBR).

Three things. First, the OECD economics department is currently headed by a profoundly neoliberal ex-UK Treasury person who is headed soon to be a deputy governor at the Bank of England. If they could find a downside now, especially on the impact of UK wage rises, they could - and claim they have. Apparently giving people the power to spend more reduces growth according to this analysis, which is a very weird claim.

Second, if this is true, the whole basis for Labour’s plans is shot through. There will be no growth of any significance, it is claimed. In that case Labour will claim there can be no additional government spending if its iron-clad fiscal rules are to be followed.

Third, we are locked in a downward economic death spiral in that case.

And all of that is because the people in charge are dedicated to an outdated economic mantra that demands that the world must be adapted to behave in accordance with their thinking, rather than believing that economic thinking should be adapted so that it can work out real world solutions for the people of this country and planet.

As definitions of intellectual failure go, that is unambiguous.

Would you like to see your GP, or know that the government is restricting your access using cast-iron fiscal rules?

Published by Anonymous (not verified) on Thu, 02/05/2024 - 5:15pm in

One of the greatest source of disquiets about the NHS is not that there are long hospital waiting lists - although no-one is overly chuffed by that - but that people cannot get to see their GP.

The idea being put around by politicians is that there is a shortage of GPs in the UK.

The claim is being made that this requires that we train assistant practitioners - who are not, by a very long way, comprehensively medically trained - to take the place of the GPs we cannot get.

But this is not true. As the GP Online news service from the British Medical Association reported last month:

The BMA has warned that thousands of GPs are currently 'underemployed' because practices can't afford to hire them - and GPonline has reported in recent weeks on locum GPs turning to foodbanks and one GP working as an Uber driver because they were unable to find a job in general practice.

This report is not made in isolation. This letter in the GP newspaper - Pulse - provides personal evidence of the fact that this significant level of unemployment amongst GPs is now happening.

So what is going on? Three things are, I think.

First of all, the government is deliberately making the NHS crisis worse. The goal, presumably, is to encourage private medicine as an alternative.

Secondly, it is also doing that to promote the 'cheap' option of assistant practitioners - even though horror stories resulting from their lack of broadly based knowledge because they are only trained in specific fields (at best) when medicine is necessarily a holistic subject, are now becoming commonplace. The aim is to break the role of the doctor.

Third, the Treasury has said we can no longer afford to provide people with the medical care that we need, even though we know that the trained people who could provide it are available and the multiplier effect of that spending is considerable, all because they want to do nothing more than balance their spreadsheets, whatever the cost to real people might be.

And what is Labour saying about this? Nothing at all, as far as I can see.

So why isn't Labour saying they will find a job for all trained GPs who want to work? That's all down to Rachel Reeves' iron-clad fiscal rules, I am sure. She would much rather people die than spend what is needed to help them.

And that might be one of the tests for a new Labour government. Will they end GP unemployment, or would they rather people suffer?

Labour Party? Pull the other one….

Published by Anonymous (not verified) on Wed, 01/05/2024 - 6:18pm in

It is, of course, May Day. Or Workers Day. And so, the FT reports this morning that:

Sir Keir Starmer’s Labour party is set to unveil a weakened package of workers’ rights in the coming weeks in its latest softening of radical policies ahead of the upcoming general election, the Financial Times has learnt.

They added:

The package, first outlined in 2021, has been billed by Starmer as the biggest increase in workers’ rights for decades, with the Labour leader warning business chiefs in February it would “not please everyone in the room”.

But behind the scenes shadow ministers have been discussing how to tone down some of the pledges to ease employer misgivings as the party tries to boost its pro-business credentials.

So, there goes another one of the very few identifiably left of centre policies Labour was promoting, and all to appease the business community.

Labour Party? Pull the other one....

What if Labour win?

Published by Anonymous (not verified) on Wed, 01/05/2024 - 3:51pm in

Tags 

Labour, Politics

I took part in a discussion yesterday on what might happen to left of centre politics if Labour does, as expected, win this year‘s general election. The assumption was that it would do so on the basis of a profoundly right wing platform, which it appears that it has every intention of delivering when in office. Firm conclusions were not reached, but I thought it worthwhile sharing some of those thoughts that I presented.

We will, of course, know more about the likelihood of Labour having a substantial majority in the Commons after this week’s local council election in some parts of the UK. If, as seems likely, a very large majority is in the offing, my suggestion was that a number of problems will have to be faced by Labour, almost immediately.

The first is that once any post-election euphoria is over and it becomes apparent that Labour has not only no plan, but also no intention, of changing the Tory approach to government, with austerity remaining a likehood, then significant buyers’ remorse will rapidly set in amongst the population in general. This will be fuelled by a mainstream media that will be all two willing to criticise every move that Labour makes. Keir Starmer’s honeymoon period with the British public might be very short.

If, at the same time, Labour has a substantial majority (by which I mean anything on the scale of 80 or more, with that figure being deliberately picked because it was the level that Boris Johnson achieved in 2019 that has not delivered the Conservatives a basis for continuing power) then Starmer will face a very particular problem. This will come from a multitude of existing and new back benchers who are not ultra-loyalist to him, but who nonetheless think that they might have a good prospect of retaining their seats in the future, and who will, therefore, have the confidence to challenge his leadership within the constraints of the party within Parliament. They will,of course, know that nothing they do will prevent him from getting his way, but they will also simultaneously be aware that they can present alternative thinking with relative impunity in this situation. In other words, Starmer is likely to have a considerable problem with party discipline if his majority is too large.

Thirdly, political instability in Scotland will not be the blessing that many think it might be for Labour. Governing Wales has not proved easy for Labour, and they have relied upon coalition agreements there. The same might be true in Scotland if the SNP leaves government. The potential for embarrassment that this might create - especially if Labour has, as a result, to govern with the support of the Tories - might be very significant, especially when the Labour front bench team in Scotland is particularly uninspiring.

Fourthly, there will always be what Harold McMillan was reputed to have described as “events“, which by definition have the capacity to undermine the best laid plans of any politician. The particular risk is that these events might require additional spending that will prove that Rachael Reeves supposed commitment to ironclad fiscal rules is skin deep, and probably non-existent. The whole promise for government that Labour has made might be shattered in that case.

Put these factors together and although right now the realistic prospect for getting almost any of the ideas that I am currently promoting into the Labour manifesto appears decidedly limited, in reality the demand for policy alternatives, with explanations being available on the way in which they might be funded, could be very high quite soon after the general election happens.

I am old enough to be aware the politics is not a short-term game. This year’s general election does not offer me any good reasons for significant hope. But, I seriously expect that change will follow thereafter, because I cannot imagine any way in which Starmer and Reeves can succeed with the policy proposals that they have made. In that case policy options for those anywhere on the left of the political spectrum must be available.

I am living in hope.

Guardian believes in MMT shock…

Published by Anonymous (not verified) on Mon, 29/04/2024 - 9:09pm in

A remarkable editorial from yesterday’s Observer and so on the Guardian website, suggests that the so – called dismal science of economics actually provides much less a solution to our woes than being the cause of them. …the reason is that mainstream economics is proving incapable of giving sensible answers to important questions. Whether it... Read more

The biggest threat to the UK’s borders comes from climate change

Published by Anonymous (not verified) on Sun, 28/04/2024 - 7:14pm in

Rishi Sunak was interviewed by Trevor Phillips on Sky News this morning. He was petulant, pedantic, defensive of his record and simultaneously aggressive towards Phillips, whilst also being inappropriate and evasive. Apart from that, the interview went well.

I do, however, wish to ignore all those points and pick up an issue which he did not, of course highlight. Nor did Phillips.

Sunak’s claim was that we have to increase defence spending in the UK as part of our programme of defending our borders. It’s all very Trumpian.

Simultaneously, he was adamant that we have to ‘stop the boats’, and that those words should be interpreted in accordance with their plain meaning. In other words, he was saying that there should be no more of what he describes as illegal immigration, even though the vast majority of people crossing the Channel do so legally, meaning he entirely misdescribes the problem.

In all this Sunak downgrades the significance of any measures to tackle climate change. He has no interest in doing that. Trump does not believe climate change is real, so nor can Rishi. In doing so he does, however, miss the glaringly obvious point, which is that the biggest threat to our borders comes from climate change.

We face the threat of serious inundation of large parts of the country from floodwater, whilst anyone who pretends that climate change will not create refugees in record numbers is straightforwardly in denial of a glaringly obvious truth that is staring us in the face.

That is what Sunak is now doing.

Unfortunately, it seems to be what Labour is doing as well.

We have a particular problem there seem to be no grown-up thinkers in UK politics right now who can look at the underlying long-term causes of the issues that we face and base policy upon addressing those issues so that we might anticipate and even prevent problems arising. They prefer short-term posturing instead.

It would really help if we could have politicians who could think beyond their need for instant gratification right now, but Labour and the Tories (at least) do not seem capable of providing them.

Dan Poulter MP’s defection to Labour looks like self preservation, cynical manoeuvring and keeping some doors just a little bit open

Published by Anonymous (not verified) on Sun, 28/04/2024 - 6:44pm in

Dan Poulter MP has resigned from the Tories, crossed the floor of the Commons, and joined Labour.

Once upon a time this might have taken courage.  It might have also delivered a particular political message. I do not think either of these is true in the case of the little known Poulter, who is not seeking a return to the Commons when he leaves Parliament at his own choice at the forthcoming general election.

Poulter, who is MP for North Ipswich and Central Suffolk, is also a hospital consultant. He says he is quitting because only Labour now believes in the NHS. If I might be polite, I think he is quitting so that he has at least some credibility with colleagues when he returns to full time work in the NHS later this year. To have been a Tory MP and find anyone to talk to would, I suspect, have been nigh on impossible if he had not quit the Tories now. By quitting now he might just find someone willing to have coffee with, if he’s lucky, on his return. I think the politics involved in this are no more complicated than that.

Please forgive my cynicism, but being a former Tory MP is not going to look good on the CVs of a lot of redundant former members fairly soon. At least Poulter might have a job to go to. But he also wants people to talk to.

Let me add another, necessary, cynical note. Moving from being a Tory MP for the last 14 years - who has held office and who has no doubt voted many times to impose untold harm on the very people whom he will no doubt soon be seeing as patients - to Labour is really not so very hard these days. Labour is almost certainly to the political right now of where Poulter might have thought himself to be when he was first elected to parliament in 2010. I should think he feels quite at home with Wes Streeting. A job as a junior Labour health minister in the Lords might well be on offer, I would have thought.

So is this a move of any political significance? No, not really. This is about self preservation, cynical manoeuvring and keeping some doors just a little bit open as far as I can see. Might we be spared a by further analysis?

Labour’s plan for rail nationalisation make sense – but do not go far enough

Published by Anonymous (not verified) on Sat, 27/04/2024 - 4:57pm in

I posted this video on YouTube this morning. It is a particularly current topic. Railways are an issue in which I have particular interest. I first read a textbook on the economics of the nationalised rail industry in 1975. I still have it somewhere. And I have never changed my opinion about the importance of state control of our railways. In that case Labour’s plans appeal to me, but I have reservations. Watch on….

The transcript is:

Labour's plans for renationalising our railways make sense as far as they go, but they don't go far enough.

Let's talk about the basics of this. The basic fact is that railways should never have been privatised. As long ago as a century ago, in 1923, Winston Churchill and others realised that the idea that private companies could run railways was really rather bizarre because that imposed enormous cost and did not create competition, simply because there's rarely going to be more than one set of tracks between two places in the country. Sometimes, but rarely.

And so it made sense to bring companies under common control. Now in 1923, they backed off nationalisation and instead went for something called ‘the grouping’. There were four large companies in the UK. That didn't really work. Frankly, it didn't produce the benefits they wanted. So, in 1948 we got British Railways.

That worked until the era of the 1970s when a lack of finances, or what the Labour Party and the Tories of that period thought were a lack of finances, undermined the delivery of a combined new rail network, because of underinvestment in the main. And then we limped towards privatisation, which was meant to bring in vast amounts of new private capital to transform our railways.

Let me give you some numbers. In the last year, 2022-23 - that's the last one we've got data for - we know that the government subsidised the UK railway system by nearly £20 billion in a year. Now that was much higher than before Covid, but that's the total cost. The total amount of private capital that was brought in by the railway operating companies was just 4 percent of that total.

So let's not pretend we have an effective privatisation model of railways right now. We haven't. We've got a nationalised system of railways already, and we need that system because it will deliver efficiencies.

I bet you, if you travel regularly on railways like I do, you have suffered the problem of arriving in a station to see the connection that you were hoping to make disappearing because it's run by another train operating company than the one that you came in on and they are not required to coordinate with each other.

If we have an integrated railway, which is what I hope Labour will try to deliver, then such things shouldn't happen. The customer, and not the profits of the operating company, should come first. So, if Labour do that, we should get benefit.

And they will be able to fund benefit, because nationalised railways are cheaper to run.

Why? Because there's vastly less accounting to do. Nobody has to agree who's responsible for a train running late. It doesn't matter whether it's the operator, RailTrack, or somebody else. It's late, and the compensation is due. Hundreds of people have to work that out at present.

There's also no problem with ticketing. If I move from where I am in East Anglia to, say, Lancashire, I'll go through several railway operating companies to get the journey completed. They have to agree how they split the ticket. Now you can say there's a formula to do that, but setting the formula still takes time.

And the point is, all those costs will be saved. Everything should work better as a nationalised railway.

But one thing - and this is where Labour's plans don't go far enough - Labour needs to have its own train leasing company, because right now all the trains run on all the British railways are leased by three companies to the railway operating companies, and those leasing companies make a fortune.

They make around 25 percent of what they charge to the railway companies a year - probably a billion in profit. That's excessive, unnecessary, inappropriate, call it what you will. Labour has to invest in its own trains for the future.

The average train in the UK is 16 years old. We now need new investment. We need to maintain the ability to make trains in the UK. We need to do so persistently. Labour has to also fund it with government because that will be cheaper than the option of using private finance. We know that. Labour has to genuinely believe in nationalisation.

Its claim that it's not interested in dogma when it comes to this issue is ridiculous. It should be interested in economics and the economics of this demand a nationalised railway service.

Labour, stop prevaricating. Deliver what this country needs. And that is a nationalised railway service.

Nationalised rail – but don’t mention the banks

Published by Anonymous (not verified) on Sat, 27/04/2024 - 7:52am in

It is not often I link to the Morning Star – which is now a journalist’s co-operative rather than a USSR tool! They are spot on about the alleged rail nationalisation from Labour – it completely leaves out the rail leasing companies – operated by banks, usually using ‘tax efficient’ offshore operations… They state: It’s... Read more

Without providing safe routes for potential refugees Keir Starmer has no way of stopping the boats

Published by Anonymous (not verified) on Wed, 24/04/2024 - 4:37pm in

I watched Keir Starmer talking on a news bulletin last night and heard him say, in words that echo those of Rishi Sunak, that we “have to stop the boats“.

He was, of course, referring to the inflatable craft being used by those seeking asylum in the UK to cross the English Channel when no other route is available to them before they can make an application to live in this country.

Starmer’s reasoning for this claim was that these boats are evidence that we have lost control of our borders. There was no hint of humanitarian concern. There was no suggestion in what was clipped as to how he would deal with the issue. There was no expression of interest in the broader issues that this crisis raises, whether for this country, for others, or for the future flows of migration that are inevitably going to increase as climate change becomes more severe. Instead, only the expression was that of a bureaucrat offended by action that upsets the routine that they desire, which is how it seems that he views this activity.

I am not naive. I am, of course, well aware that some of those who might cross the English Channel do so because they are being trafficked. However, in that case, they deserve protection from those abusing them.

I am equally aware that some of those who might be taking this perilous route do so simply because they are economically desperate, and not because they are at genuine risk in the countries from which they come. There is, in that case, obvious need for some mechanisms to sort those who are really refugees, from those who are seeking what is illegal entry.

However, what we do know is that a substantial majority of those who make this crossing do succeed with their asylum claim, despite the existence of a system which stacks the odds against them. In other words it would be wise to presume that those who have reached the English Channel have done so as a consequence of a state of genuine desperation. The willingness to go through the trauma of this process will, in a great many cases, be the clearest indication of that.

So, if Starmer is to provide an alternative, and this will no doubt become his responsibility, what should he do?

Firstly, there should be an assumption that those claiming refugee status probably have it. I am not suggesting that this means that they be given an automatic right of entry into the UK. Both politically and practically that is not plausible or viable. There must, in that case, be a filtering process to determine which applications succeed, and which fail, That necessary process must, however, be undertaken humanely, with a degree of sympathy for the likely refugees plight, and with the assistance provided so that those with a proper case can be identified, assisting in the process the identification of those acting inappropriately.

Secondly, as so many with expertise in this area have suggested, this process could take place in France. At the very least, initial vetting should be possible there, with mutual cooperation between the UK and France to make this possible. I am aware of all the inconvenience to France that those seeking entry to the UK creates, but given that they have no choice but face this issue, redirecting funds away from creating criminality towards assistance, speedy decision making, and facilitation of rapid transit if that is the right outcome, would be in everyone’s best interests. It might also cost considerably less than current attempts to address this problem.

Thirdly, and most obviously, this then provide the opportunity to stop the boats. Those able to cross the Channel could then do so using safe routes , like ferries, with tickets provided, and buses to ensure their appropriate onward transport.

Fourthly, if despite this, there were then to still be small boat traffic the likelihood that it would involve those with a limited chance of a right entry is high. In that case a changed approach towards policing of that activity could take place on both sides of the Channel, whilst still requiring a continued open-mind on the need to protect those who might be trafficked.

I am not sure why it is so hard for Keir Starmer to explain such a potential policy. At the heart of any solution to this problem there has to be a method that differentiating those who are likely to have a legitimate claim of entry to the UK under international law from those who have not got that right. Until that happens, the prospect of successfully persuading France, or any other country, to treat what is happening as an illegal activity is low, which is why I understand their reluctance to overly deter this traffic. They know that legitimate refugees are those most commonly to be found amongst those on the beaches of Northern France. Do they have to stop them in that case? Until that changes - which it is only in our power to do - why should they?

Only when those in small boats are those most likely to not have a good claim for entry into the UK can successful action against this traffic begin. I would have thought Keir Starmer would understand that. I would have hoped that he would want to. I would equally hope that he will want to make sure that we act humanely and with sympathy to those in a desperate situation. But perhaps I am naive, after all, in believing that this is what he might think.

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