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Westlake Legal Group > Posts tagged "David Blanchflower"

Peter Taylor: Labour’s Austerity 1) How Brown’s Government planned £94 billion of cuts

Phil Taylor is a Conservative activist in Ealing.

Tomorrow will be the tenth anniversary of the 2010 general election which saw the formation of the coalition government by the Conservative and Liberal Democrat parties.

It went on to govern the UK for five years. Most on the Left would ignore the LibDem involvement in the coalition, not least most LibDems, and blame “the Tories” for 10 years of “austerity”. Take your pick of adjectives to tag on the front:

These left-wing voices refuse to acknowledge that the Labour Party, under Gordon Brown and chancellor Alistair Darling, had already put in place a comprehensive austerity regime almost as tough as that carried through by the coalition. This piece lays out the details of that regime.

Labour has done a very good job of whitewashing its own record, and I have to say that the Conservatives have consistently failed to nail Labour on its own policies. For ten years, we have heard about austerity being a uniquely Tory vice, and not the consensus response to the 2008 financial crisis that it was at the time.

There were three main planks to the Labour austerity regime:

  • Labour cut £28 billion a year out of the capital programme (eg roads, railways, schools, etc). Net public net investment peaked at £50 billion in 2009/10. In his December 2009 pre-budget report, Alistair Darling savaged the capital spending programme, reducing it to £22 billion in 2013/14. £28 billion a year of spending was taken out of the economy. This was the capital programme that Labour went to the country with at the 2010 general election.
  • At that election, Labour promised to carry out the Nicholson Challenge, a programme to find £20 billion a year of “savings” in the NHS by 2014. This programme was in the Labour 2010 election manifesto on page 4:3.
  • Finally, in his March 2010 budget Alistair Darling promised “we will cut deeper than Margaret Thatcher”. The Institue of Financial Studies calculated that the fiscal envelope set out in the budget implied real terms cuts of £46 billion a year by 2014.

Added together, these three programmes aimed to cut around £94 billion a year from government spending – the equivalent of 14 per cent of all government spending in 2010 or six per cent of 2010 GDP.

In 2010, there was little to choose between the fiscal programmes offered by the three main parties. Indeed the Institute of Fiscal Sudies quantified the difference as £10 billion (more tax for Labour, more spending cuts for the Conservatives):

“The overall picture is that, ultimately, Labour looks set to implement the largest discretionary net tax rise (1.7% of national income, or £24 billion in 2010–11 terms) and the smallest discretionary net spending cut (3.2% of national income, or £47 billion). The Conservatives look set to do the smallest discretionary net tax rise (0.9% of national income, or £14 billion) and the largest discretionary net spending cut (3.9% of national income, or £57 billion). The Liberal Democrats’ plans are in the middle: a net tax rise of 1.4% of national income and a net spending cut of 3.5% of national income (£20 billion and £51 billion, respectively).”

In the context of Labour already planning £94 billion of cuts, £10 billion is not a lot. All three parties were broadly in the same place as this IFS chart shows.

Westlake Legal Group Screen-Shot-2020-05-05-at-10.11.33 Peter Taylor: Labour’s Austerity 1) How Brown’s Government planned £94 billion of cuts ToryDiary The Coalition Tax and Spending State Spending Richard Burgon MP Public Spending Philip Alston Margaret Thatcher Liberal Democrats Labour Jeremy Corbyn MP Institute for Fiscal Studies Gordon Brown MP Economy Economic policy David Blanchflower Daily Mirror Conservatives Alistair Darling 2010 General Election  Labour’s 10 years of moral indignation is based on the notion that £94 billion of cuts is fine but if you go £10 billion further you are a monster. It is nonsense.

This article originally appeared on Phil Taylor’s blog.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Potemkin legislation

Westlake Legal Group Screen-Shot-2019-04-17-at-07.25.35 Potemkin legislation Work Women and equality Women wages Treasury ToryDiary Stella Creasy MP sport Sam Coates (The Times) Sajid Javid MP rent Public Sector Northern Ireland NHS Local government and local elections Local Elections (general) Liz Truss MP Julian Assange jobs James Brokenshire MP immigration housing Home and family Highlights healthcare Health football Family and relationships exports employment Elizabeth Truss MP Economy DUP divorce disability Diane Abbott MP David Gauke MP David Blanchflower Conservatives Abortion

The ten most recent subjects covered by the Conservative Party’s Twitter feed are as follows: record employment, the provision of free sanitary products in primary schools, Conservative councils recycling more than Labour ones, more statistics about work and wages, record women’s employment, workers’ rights, an exports increase, more disabled people in employment, an end to no fault evictions, Conservative councils fixing more potholes than Labour ones, banning upskirting, funding more toilets at motorway service areas to help people living with complex disabilities, Sajid Javid criticising Diane Abbott over Julian Assange, kicking out racism in football, and a new law to protect service animals.

One might pick out three main themes, local election campaigning aside.

The first is the vibrancy of Britain’s jobs market and the country’s robust recent record on employment.  The aftermath of the Crash and the Coalition’s slowing of public spending growth, a.k.aa “austerity”, didn’t bring the five million unemployed that David Blanchflower believed possible.  The Government has to keep shouting about our employment rates because people have got used to them.  A generation is growing up that cannot remember the mass unemployment of the 1980s.

Then there are a battery of announcements aimed disproportionately at younger women voters, who were more likely to switch to Labour at the last election.  Those of a certain disposition will argue that some of these are trivial, and that women and men both want government to get on with addressing big issues: Brexit, health, the economy, immigration, education and so on.  But part of the point of banning upskirting, say, or providing more free sanitary products is gaining “permission to be heard”, in order to make some voters, in this case younger female ones, more receptive to what Conservatives are doing more broadly and widely.

Which takes us, third, to law-making – not admitttedly the only means, or even necessarily the main one, by which government can act, but indispensable none the less.  Under which category we find a new law to protect service animals and the proposed end to no fault evictions, about which James Brokenshire wrote on this site recently.  The two may seem to have nothing in common but, on closer inspection, tell part of the same story.

Namely that, as Sam Coates keeps pointing out, the Government can’t get any plan which is remotely contentious through the Commons.  Only the most uncontested ideas, such as providing police and other service dogs with more protections, can make it through the House. And this new service animals measure isn’t even Government leglislation.  It came about through a Private Members Bill tabled by Oliver Heald and then backed by Ministers.

Meanwhile, the proposal to end no fault evictions isn’t contained in a Bill at all.  The headline on gov.uk about the plan refers to an “end to unfair evictions” and “the biggest change to the private rental sector for a generation”.  But the text of the announcement refers to “plans to consult on new legislation” and refers to an earlier consultation, on Overcoming the barriers to longer tenancies in the private rented sector, to which it has now published a response.

As with housing, so with divorce.  On ConservativeHome today, Frank Young makes the point, in his article on the Government’s plans to ensure that no fault divorce can take place more frequently, that “it remains to be seen if the Justice Department’s enthusiasm for new legislation will be matched by government business managers and the ability of the current government to get any legislation through”.  For David Gauke has unfurled not a new Bill, but a White Paper.

Ditto Liz Truss’s announcment on a £95,000 cap on exit payments when public sector workers leave their jobs. “Six-figure taxpayer-funded public sector exit payments to end,” gov.uk’s headline declares.  The sub-heading is more candid than the one beneath the housing headline.  “A consultation has been launched outlining how the government will introduce a £95,000 cap to stop huge exit payments when public sector workers leave their jobs,” it says.  The Treasury confirms that legislation will be required.

Now think on.  As Sam goes on to say, Theresa May’s successor may take against these ideas or indeed all of them.  In which case, they will doubtless be quietly put to sleep.  And that successor may be in place soon.  (Regretfully, we have to add: as soon as possible after European Parliament elections, assuming these happen, please.)

Conservative MPs don’t want a general election.  Nor do we.  But the more one ponders the state of this Parliament, the more one sees why one is the natural solution to this impasse – and would be knocking on the door, were it not for the Fixed Terms Parliament Act.  These recent announcements are Potemkin Legislation.  They cannot be put to the Commons without risk of them being amended out of their original intention.

Nor can the Government legislate easily elsewhere.  Consider any proposals affecting women – to take us back to near where we started.  Up would pop Stella Creasy, looking for a means of changing the abortion laws in Northern Ireland.  Which would further strain the Conservatives’ relationship with the DUP, such as it is.  Prepare, when Brexit isn’t before the Commons, for many more Opposition Days.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Potemkin legislation

Westlake Legal Group Screen-Shot-2019-04-17-at-07.25.35 Potemkin legislation Work Women and equality Women wages Treasury ToryDiary Stella Creasy MP sport Sam Coates (The Times) Sajid Javid MP rent Public Sector Northern Ireland NHS Local government and local elections Local Elections (general) Liz Truss MP Julian Assange jobs James Brokenshire MP immigration housing Home and family Highlights healthcare Health football Family and relationships exports employment Elizabeth Truss MP Economy DUP divorce disability Diane Abbott MP David Gauke MP David Blanchflower Conservatives Abortion

The ten most recent subjects covered by the Conservative Party’s Twitter feed are as follows: record employment, the provision of free sanitary products in primary schools, Conservative councils recycling more than Labour ones, more statistics about work and wages, record women’s employment, workers’ rights, an exports increase, more disabled people in employment, an end to no fault evictions, Conservative councils fixing more potholes than Labour ones, banning upskirting, funding more toilets at motorway service areas to help people living with complex disabilities, Sajid Javid criticising Diane Abbott over Julian Assange, kicking out racism in football, and a new law to protect service animals.

One might pick out three main themes, local election campaigning aside.

The first is the vibrancy of Britain’s jobs market and the country’s robust recent record on employment.  The aftermath of the Crash and the Coalition’s slowing of public spending growth, a.k.aa “austerity”, didn’t bring the five million unemployed that David Blanchflower believed possible.  The Government has to keep shouting about our employment rates because people have got used to them.  A generation is growing up that cannot remember the mass unemployment of the 1980s.

Then there are a battery of announcements aimed disproportionately at younger women voters, who were more likely to switch to Labour at the last election.  Those of a certain disposition will argue that some of these are trivial, and that women and men both want government to get on with addressing big issues: Brexit, health, the economy, immigration, education and so on.  But part of the point of banning upskirting, say, or providing more free sanitary products is gaining “permission to be heard”, in order to make some voters, in this case younger female ones, more receptive to what Conservatives are doing more broadly and widely.

Which takes us, third, to law-making – not admitttedly the only means, or even necessarily the main one, by which government can act, but indispensable none the less.  Under which category we find a new law to protect service animals and the proposed end to no fault evictions, about which James Brokenshire wrote on this site recently.  The two may seem to have nothing in common but, on closer inspection, tell part of the same story.

Namely that, as Sam Coates keeps pointing out, the Government can’t get any plan which is remotely contentious through the Commons.  Only the most uncontested ideas, such as providing police and other service dogs with more protections, can make it through the House. And this new service animals measure isn’t even Government leglislation.  It came about through a Private Members Bill tabled by Oliver Heald and then backed by Ministers.

Meanwhile, the proposal to end no fault evictions isn’t contained in a Bill at all.  The headline on gov.uk about the plan refers to an “end to unfair evictions” and “the biggest change to the private rental sector for a generation”.  But the text of the announcement refers to “plans to consult on new legislation” and refers to an earlier consultation, on Overcoming the barriers to longer tenancies in the private rented sector, to which it has now published a response.

As with housing, so with divorce.  On ConservativeHome today, Frank Young makes the point, in his article on the Government’s plans to ensure that no fault divorce can take place more frequently, that “it remains to be seen if the Justice Department’s enthusiasm for new legislation will be matched by government business managers and the ability of the current government to get any legislation through”.  For David Gauke has unfurled not a new Bill, but a White Paper.

Ditto Liz Truss’s announcment on a £95,000 cap on exit payments when public sector workers leave their jobs. “Six-figure taxpayer-funded public sector exit payments to end,” gov.uk’s headline declares.  The sub-heading is more candid than the one beneath the housing headline.  “A consultation has been launched outlining how the government will introduce a £95,000 cap to stop huge exit payments when public sector workers leave their jobs,” it says.  The Treasury confirms that legislation will be required.

Now think on.  As Sam goes on to say, Theresa May’s successor may take against these ideas or indeed all of them.  In which case, they will doubtless be quietly put to sleep.  And that successor may be in place soon.  (Regretfully, we have to add: as soon as possible after European Parliament elections, assuming these happen, please.)

Conservative MPs don’t want a general election.  Nor do we.  But the more one ponders the state of this Parliament, the more one sees why one is the natural solution to this impasse – and would be knocking on the door, were it not for the Fixed Terms Parliament Act.  These recent announcements are Potemkin Legislation.  They cannot be put to the Commons without risk of them being amended out of their original intention.

Nor can the Government legislate easily elsewhere.  Consider any proposals affecting women – to take us back to near where we started.  Up would pop Stella Creasy, looking for a means of changing the abortion laws in Northern Ireland.  Which would further strain the Conservatives’ relationship with the DUP, such as it is.  Prepare, when Brexit isn’t before the Commons, for many more Opposition Days.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com