Showing posts with label public sector cuts. Show all posts
Showing posts with label public sector cuts. Show all posts
Friday, 11 January 2013
London to loose 12 fire stations with over 500 jobs going, fight all cuts!
Its been reported today that London is due to loose 12 Fire stations and over 500 workers as a result of these huge cuts recommended by the London Fire Commissioner.
This will have a devastating impact on London and the Fire services ability to deal with large scale fires and disasters if and when they occur.
This wills not only put people at risk it will also risk many people’s homes and business’s which need protecting too.
Boris Johnson who is slowly ripping into London’s public sector jobs and services in his second term of office cannot hide from these eye watering cuts these are his cuts and his cuts alone.
It will be interesting to hear the Labour party and what they have to say on this no doubt they will oppose these cuts in words but in actions what will they do?
A petition her and there will not keep a fire station open I’m afraid.
The Fire Brigades Union lead by Matt Wrack a good fighting socialist need to lead this battle bringing on board anti cuts campaigners, local community members and the local residents who will loose these Fire stations. Other stations not affected need to link up with those under threat saying to Boris Johnson and his Tory chums no to all closures we wont accept closure of one for keeping another open that’s divide and rule and something the Labour party are very good at we should campaign for no to all cuts in the Fire service and for a investment in the Fire service keeping all services and jobs in the public sector with good levels of pay.
This is a service we cannot do without if god forbids there was a major fire in London again loosing this many fire stations would be crippling to the city. We cannot allow these cuts to happen and every possible tactic and strategy must be considered including the threat of mass strike action over these cuts.
As I’ve blogged before unions have many reasons of which to call national strike action on this is just another one to add to this list.
Save our fire stations, no to divide and rule and for a fully funded publically accountable fire service that benefits the many.
Friday, 30 November 2012
Today is the anniversary of N30…TUC name the date for a 24 hour general strike!
Yes…today, it will be 12 months ago to the day when over 2 million public sector workers went on strike to defend their pensions. It may have been just a year ago but how many have forgotten about that day? The biggest single day of strike action this country has seen for possibly 85 years, since the general strike of 1926. But we believe that when you close your eyes and remember how great a day that was or look at the photos you took or the videos on YouTube, you’ll realise that it really did happen and it IS possible for workers to take action in their millions. Because that’s what happened on N30 2011.
It wasn’t just a strike, it was a mobilisation of working people. The streets were full in London, Glasgow, Belfast and Cardiff but also Taunton, Brighton, Newcastle and almost every town and city throughout the country. We’ve no doubt that it was the sights and sounds of workers and their unions on the march again that has led to the countless disputes this year, including victories like the Sparks, London buses and the Sova recycling workers in Sheffield.
N30 should have been the beginning of a programme of co-ordinated action that could have defeated this government. But some of the union leaders settled and killed the momentum, despite the best efforts of those like PCS, POA, RMT, Unite, ISU, NIPSA and UCU who tried to salvage the dispute this May. But N30 showed that our demand that the TUC co-ordinate a 24-hour general strike against the billions of pounds of cuts we’ve had and the 80% to come isn’t a pipedream but necessary and possible. If a strike of the proportions of N30 was organised with the time for unions to prepare properly and co-ordinate ballots and live disputes, how many other workplaces would see it as the chance to raise their grievances against their employer – to strike together in maximum strength?
N30 2012 will be like most days are this year – a day of strikes and protests. PCS members in the Department of Transport will be on strike and all other PCS branches will holding protests and to build for their national strike ballot in the New Year on pay and to fight attacks on terms and conditions and union facility time. Low-paid cleaners in RMT will be on the 2nd day of a 48 hour strike for a decent wage.
We’ll be supporting these workers but imagine what we could achieve, if we went on strike together? The NSSN has called a lobby of the TUC General Council on Tuesday December 11th – now from 8.30am. It’s outside TUC HQ in Great Russell Street, London WC1B 3LS. We took up to a 1000 union activists to Brighton to lobby the TUC conference in September to successfully build support for the POA motion calling for the unions to “consider the practicalities of a general strike”. Come to the lobby on December 11th and let the union leaders know how “practical” and absolutely vital it is!
Wednesday, 25 April 2012
Britain back in recession austerity not working fight back against capitalism needed
Today it has been confirmed that Britain in the last quarter contracted by 0.2 % GDP meaning that two back to back negative growth figures lands us back in recession. A light one at present but still a recession none the less. Too many this has been on the cards for sometime and to the poorest in society may argue it never felt like we left recession with the misery of cutbacks and tax hikes and inflation all mounting to mean a huge strain on people’s lives and living standards.
The Tories and lib dem government has been in power for two years now and their plan of the phoenix of the private sector rising from the ash’s has simply not happened. We were told we must cut the public sector spending to allow the private sector to grow this hasn’t happened either if anything the public sector borrowing has goes up not down and our deficit is increasing.
The old phrase of its hurting but its not working is very apt here.
Even reformist measures here of investing in jobs socially useful jobs and a mass house building programme would go someway to helping this. But the con-dem government look focused on reducing the deficit the most painful of ways and still may not actually work for them. If anything this is a cocktail of cuts tax’s and inflation which will send us spiralling into endless austerity.
It was always said the definition of insanity was continuing to do what has been proven not to work. So the Tories and labours idea that if cuts don’t work we’ll have some more cuts is just barmy.
A serious shift is needed a ramping up of the tax’s on the very richest in society is needed a wealth tax with other tax’s preventing the rich getting away with not paying for the mistakes of the bankers who were the ones who got us into the position.
What is also needed is a nationalisation programme bringing in the major 150 companies into public ownership properly run democratically by the workers with all of the profits made ploughed back into the public purse to invest in more jobs, services and the things that people need to live. Not just for the benefit of a rich minority.
Its time the argument on austerity is won once and for all and a major shift to change society for the benefit of the many is fought.
The Tories and lib dem government has been in power for two years now and their plan of the phoenix of the private sector rising from the ash’s has simply not happened. We were told we must cut the public sector spending to allow the private sector to grow this hasn’t happened either if anything the public sector borrowing has goes up not down and our deficit is increasing.
The old phrase of its hurting but its not working is very apt here.
Even reformist measures here of investing in jobs socially useful jobs and a mass house building programme would go someway to helping this. But the con-dem government look focused on reducing the deficit the most painful of ways and still may not actually work for them. If anything this is a cocktail of cuts tax’s and inflation which will send us spiralling into endless austerity.
It was always said the definition of insanity was continuing to do what has been proven not to work. So the Tories and labours idea that if cuts don’t work we’ll have some more cuts is just barmy.
A serious shift is needed a ramping up of the tax’s on the very richest in society is needed a wealth tax with other tax’s preventing the rich getting away with not paying for the mistakes of the bankers who were the ones who got us into the position.
What is also needed is a nationalisation programme bringing in the major 150 companies into public ownership properly run democratically by the workers with all of the profits made ploughed back into the public purse to invest in more jobs, services and the things that people need to live. Not just for the benefit of a rich minority.
Its time the argument on austerity is won once and for all and a major shift to change society for the benefit of the many is fought.
Monday, 26 March 2012
March 26th a year on, where is the anti cuts movement heading?
A year ago today we were heading to London from all over the country to descend on what we’d hoped to be one of the biggest predominantly working class demonstrations for many years. We were not disappointed an estimated 750,000 working class people and anti cut protesters out on the streets of London. Almost as many who are set to lose their jobs in the public sector due to the con-dem government cuts agenda.
A year on this feels a very long time ago this demonstration I thought I’d look at what has happened since then and the fight back that has or has not ensued.
To even get a national demonstration was incredibly hard work the good comrades at the NSSN were up in Manchester the September before demanding and lobbying the TUC to call a mass national demonstration. They were eventually dragged kicking and screaming to call one. It just goes to show what can be achieved when the TUC lift their little finger.
But the day itself was fantastic many great moments and speech’s and lots of calls to arms. One of the best and well received speech’s came from the PCS general secretary Mark Serwotka who proclaimed today we have marched together tomorrow we must strike together.
This was one of the main messages to come out of the day I felt where we go from here. The NSSN and the socialist party made a terrific intervention on that day giving out thousands of leaflets and selling almost as many papers. A special edition was printed for that day giving a very agitation message to workers picking up our paper for the first time that these cuts can be defeated if we take the right choices.
As we have seen over the last year possibly some of those choices haven’t been taken and a reluctance to fight on the behalf of some in our movement has held us back.
The socialist party has been impeccable in its stance against all cuts be them carried out by Tories, lib dems or labour councils. This has not been widely taken up with some on the left still till this day defending labour councils who pass on Tory cuts unfortunately.
One man who was on the march last year Ed Miliband has himself confirmed that any future labour government will not reverse any of the Tory cuts and instead add a further pay freeze to public sector pay as a bonus. Some anti cuts mood ay?
SO we cannot put our faith in the labour party they have shown themselves to be defenders of the capitalist system and a defender of cuts. This is not acceptable in the anti cuts movement and should not be in the labour movement either. The disgraceful selling out of trade union leaders over the pension dispute in the public sector is evidence of this treachery and a fear of upsetting a labour party who seem to want to curb the unions even further still by weakening their link even further.
March 26th 2011 will go down in history as one of the biggest working class demonstrations ever but unfortunately the response since then has been slow in coming and hard work. November the 30th last year was huge and very impressive but bigger and more concerted efforts by the trade unions is needed. I am not sure whether another national demonstration like March 26th would be beneficial. Certainly for the NHS it could be vital to raise people’s morale that the NHS can be saved. On the question of cuts I think workers are turning to other means including standing in local elections. TUSC again as I have blogged about on here countless times will be standing widely once again hoping to catch the mood of workers when they shift in consciousness.
There is an alternative out there and TUSC offers this in the London GLA elections and right across the country. If you don’t have a TUSC candidate standing in your area why not join in and stand yourself. If you are against all cuts and privatisation and agree with our basic programme you can stand for TUSC too in the coming may 3rd elections.
National demonstrations are good but not enough in their own we pointed this out at the time industrial action on a co-ordinated determined level is needed. We have started that and the working class has re emerged onto the battle scene but far more is needed and I am sure as this period develops we will see more strikes, occupations and demonstrations. Will it be enough to bring this government down.....? Only time will tell
A year on this feels a very long time ago this demonstration I thought I’d look at what has happened since then and the fight back that has or has not ensued.
To even get a national demonstration was incredibly hard work the good comrades at the NSSN were up in Manchester the September before demanding and lobbying the TUC to call a mass national demonstration. They were eventually dragged kicking and screaming to call one. It just goes to show what can be achieved when the TUC lift their little finger.
But the day itself was fantastic many great moments and speech’s and lots of calls to arms. One of the best and well received speech’s came from the PCS general secretary Mark Serwotka who proclaimed today we have marched together tomorrow we must strike together.
This was one of the main messages to come out of the day I felt where we go from here. The NSSN and the socialist party made a terrific intervention on that day giving out thousands of leaflets and selling almost as many papers. A special edition was printed for that day giving a very agitation message to workers picking up our paper for the first time that these cuts can be defeated if we take the right choices.
As we have seen over the last year possibly some of those choices haven’t been taken and a reluctance to fight on the behalf of some in our movement has held us back.
The socialist party has been impeccable in its stance against all cuts be them carried out by Tories, lib dems or labour councils. This has not been widely taken up with some on the left still till this day defending labour councils who pass on Tory cuts unfortunately.
One man who was on the march last year Ed Miliband has himself confirmed that any future labour government will not reverse any of the Tory cuts and instead add a further pay freeze to public sector pay as a bonus. Some anti cuts mood ay?
SO we cannot put our faith in the labour party they have shown themselves to be defenders of the capitalist system and a defender of cuts. This is not acceptable in the anti cuts movement and should not be in the labour movement either. The disgraceful selling out of trade union leaders over the pension dispute in the public sector is evidence of this treachery and a fear of upsetting a labour party who seem to want to curb the unions even further still by weakening their link even further.
March 26th 2011 will go down in history as one of the biggest working class demonstrations ever but unfortunately the response since then has been slow in coming and hard work. November the 30th last year was huge and very impressive but bigger and more concerted efforts by the trade unions is needed. I am not sure whether another national demonstration like March 26th would be beneficial. Certainly for the NHS it could be vital to raise people’s morale that the NHS can be saved. On the question of cuts I think workers are turning to other means including standing in local elections. TUSC again as I have blogged about on here countless times will be standing widely once again hoping to catch the mood of workers when they shift in consciousness.
There is an alternative out there and TUSC offers this in the London GLA elections and right across the country. If you don’t have a TUSC candidate standing in your area why not join in and stand yourself. If you are against all cuts and privatisation and agree with our basic programme you can stand for TUSC too in the coming may 3rd elections.
National demonstrations are good but not enough in their own we pointed this out at the time industrial action on a co-ordinated determined level is needed. We have started that and the working class has re emerged onto the battle scene but far more is needed and I am sure as this period develops we will see more strikes, occupations and demonstrations. Will it be enough to bring this government down.....? Only time will tell
Sunday, 22 May 2011
The worst is yet to come
I thought i'd share a excellent article which featured in socialism today a monthly publication of more in depth look at articles from our party. I foundt his a interesting read and shows we have not seen the start of this crisis barely and it is bound to get a lot worse before getting better.
The following article is by Lynn Walsh a good comrade in the labour and trade union movement for many years now.
Lynn Walsh, Editor of Socialism Today
The Con-Dem chancellor, George Osborne, claims his budget (24 March) is the "most pro-growth budget for a generation". But the British economy is barely crawling along, and the budget will do nothing to promote growth.
The government previously predicted 2.3% growth of gross domestic product (GDP - value of the total output of goods and services) for 2011. Now, the Office for Budget Responsibility (OBR) forecasts meagre growth of 1.7% of GDP for 2011. Even that may prove to be optimistic given the scale of spending cuts and tax increases.
Consumer spending, which has been the locomotive of the British economy over recent years, is falling. This is the chilling effect of job losses, escalating prices, and fear of what is to come. The former boss of Asda supermarket, Andy Bond, warns that worse is yet to come. "You’re kidding yourself if you think the worst is over and we’ve had a consumer recession - it’s ahead of us." The bosses of big supermarkets and high street stores, like Dixons and Mothercare, are warning of reduced sales and company profits.
"The economy," comments the Financial Times (6 April), "has been much weaker over the past six months than almost any economist expected." It was "practically stagnant over the past two quarters even before the impact of higher inflation and deeper spending cuts, according to a respected economics research group [National Institute of Economic and Social Research]."
As bad as they are, the Con-Dem cuts have so far merely been nibbling at public services: "The deeper cuts will bite with increased severity over the coming years." (Financial Times editorial, 25 March) Osborne’s fraudulent ’expansionary austerity’ is going to be austerity, austerity, austerity.
Squeezed incomes
Living standards have already been severely hit by inflation and squeezed wages. Prices are rising by 5.1% a year, according to the RPI (retail prices index, which includes housing costs).
At the same time, wages are only increasing by 2%, which means a 3% fall in real (inflation-adjusted) wages. Every 1% fall in real wages means a loss of £250 a year. This has resulted in the first fall in disposable income for over three decades, and there is likely to be a further fall in 2011.
The BBC Panorama programme recently carried out a survey of actual take-home pay (BBC News, 28 March). This showed that, on average, workers are taking home £1,088 less a year than two years ago. Their real pay has fallen by 5% since the beginning of 2009, which was half way through the recession.
The sharpest drop in real pay was in the construction industry, where it was £99 a month less. In the public sector, average pay was £45 a month less, while in the retail sector it was £41 a month less.
Privatising debt
One of the most alarming predictions for the next few years is for a huge rise in household debt. The Con-Dem government is aiming to cut public debt by £43 billion. At the same time, the OBR estimates that private-household debt (including mortgages and credit card debt) will rise by a staggering £245 billion. With increased unemployment, squeezed wages, higher prices and taxes, people will borrow more simply to survive.
In effect, this is the privatisation of the state debt, a huge share of which came from the nationalisation of bank losses. Now, spending cuts and tax increases will push millions deeper into debt, throwing a huge burden onto working class families.
By 2015, according to the OBR, debt as a percentage of household income will increase from the current 160% to 175%. In hard figures, this means a rise from an average of £58,000 debt to £66,291 by 2015.
Petrol tax
Faced with explosive public anger over the soaring price of petrol and diesel, Osborne cut fuel duty by 1p a litre and postponed a further 3p rise until January 2012. Undoubtedly, the government fears the possibility of another fuel price protest on the lines of September 2000, when lorry drivers and farmers blockaded oil refineries and jammed motorways. At that time, protests were encouraged by the Tory opposition, but new protests would now pose a threat to the Con-Dem government.
However, the 20% VAT on fuel will remain, and pump prices will no doubt continue to rise as a result of the rise in world oil prices, due to the crisis in the Middle East and North Africa.
To pay for the fuel duty cut, Osborne has raised taxes on oil production. The windfall profits tax on UK oil and gas production will increase from 20% to 32%, which is expected to bring in an additional £2 billion. Despite their increased profits from the 35% increase in oil prices over the last five months, the oil companies are screaming about this very limited tax increase, peanuts to these giant corporations. Malcolm Webb, chief executive of Oil and Gas UK, said: "This change in the tax regime will decrease investment, increase imports and drive UK jobs to other areas of the world."
This is a barely disguised threat of a ’strike of capital’ if the government increases its tax on oil production. They are unlikely to carry this out, at this time, however, because of the immensely profitable reserves that remain in the North Sea, especially given the fact that oil has now risen to around $120 a barrel.
Nevertheless, it is an indication of the likely reaction of big business, like the banks, to the threat of a ’Robin Hood tax’ proposed by the TUC. Without measures to take control of big business and mobilise mass support for such measures, big business will attempt to sabotage any such steps through withholding investment, etc.
Heading for disaster
The Con-Dem government’s leading economic policy guru, Oliver Letwin, has revealed the private discussions of Con-Dem ministers. "Leading up to the recent budget, we took the view collectively in cabinet that we faced an immediate national crisis in the form of less growth and jobs than we needed." (The Guardian, 31 March) Nothing in Osborne’s budget will overcome this crisis, which will deepen in the coming months.
In response to the budget’s supposedly pro-growth measures, the ’independent’ OBR concluded: "We do not believe there is sufficiently strong evidence to justify changing our trend growth assumption in light of policy measures announced in budget 2011."
It is predicting a mere 1.7% growth in GDP for 2011. At the same time, unemployment is projected to continue to an appalling 2.52 million or 8.2% of the workforce. This includes over a million unemployed young people.
The Con-Dem government’s aim is to reduce the government’s budget deficit to near zero by 2014-15. This is an unrealistic objective even from the point of view of big business and their system - and is likely to prove counter-productive. It is a doctrinaire policy dictated by the interests of the big banks and wealthy speculators, who manipulate bond markets in search of speculative profits.
Wiping out the budget deficit depends on faster economic growth, which is why Osborne continually claims he is promoting "expansionary austerity" through pro-growth measures.
His budget, however, did not impress the financial markets that much. The rating agency, Moodys, which assesses the credit status of borrowers, including governments, warned that "slower growth combined with weaker-than-expected fiscal consolidation could cause the UK’s debt metrics to deteriorate to a point that would be inconsistent with a AAA rating."
Near zero growth or even a new recession would mean even higher unemployment and reduced tax revenues. The Con-Dems’ savage austerity policy could then result in an increase in the deficit, the worst of all worlds.
The so-called ’expansionary austerity’ cannot provide a way out for sickly British capitalism. The crisis referred to by Letwin can only deepen. The Con-Dem government has already been shaken by mass opposition, especially the mighty 26 March TUC demonstration in London. It has been forced to partially reverse the abolition of education maintenance allowance, and to announce a ’natural break’ on the savaging of the NHS through accelerated privatisation.
The 26 March demonstration was only a beginning. It should be the prelude to further action, especially coordinated public sector strikes against cuts, a massive weekday demonstration, and a 24-hour general strike.
Black Wednesday budget
There are 44 changes in tax and benefits in Osborne’s budget. With such a complex tax/benefit system it is very hard to calculate their exact effect. But one thing is certain: most of the changes will cut the incomes of working-class families. The government’s claim that everyone - apart from the rich - will benefit is completely false.
One organisation, Credit Action, calculates that, on average, the changes will reduce household income by at least £200 a year. The Institute for Fiscal Studies (IFS) reckons that the average family income is expected to still be lower in 2013 than it was in 2008, making it the biggest five-year drop for more than 40 years. The IFS also calculates that the typical pensioner household has seen its real annual income fall by 2.4% (£456) since 2008.
However, these estimates come before further price rises, job losses, squeezed pay levels, and benefit cuts. The Centre for Economic and Business Research reckons the higher cost of living in 2011 will mean that the average family will be £910 worse off this year - the tightest squeeze on finances since 1921.
This year’s budget, moreover, is a supplement to last year’s horrendous Con-Dem spending review which spelt out £81 billion cuts and £33 billion tax raises by 2013.
The basic personal tax allowance (the threshold below which no income tax is paid) is to rise by £1,000 to £7,475, which means around 500,000 workers will not pay income tax.
This small gain, however, will be wiped out for many by the loss of services through cuts and reduced benefits. In particular, changes in tax credits and a freezing of child allowances will mean a sharp cut for working parents.
•Many middle class families will be squeezed by the lowering of the threshold for the higher (40%) tax rate from £37,401 to £35,000, which will mean around 750,000 workers paying significantly more tax (as well as higher national insurance contributions). Osborne tried to provide some populist window dressing through a number of taxes aimed at big business and the wealthy.
•The levy on windfall bank profits (heavily subsidised by state support during the crisis) is being marginally increased. North Sea oil companies will have to pay another £2 billion on their soaring profits.
•There will be a tax on passengers in private jets, and the stamp duty on the purchase of houses over £1 million will be raised to 5%. At the same time, however, there are concessions on stamp duty for developers and landlords buying multiple properties.
•The fee paid by wealthy overseas visitors to register as ’non-doms’ will be raised to £50,000, but they will continue to enjoy the privilege of paying no UK tax on their offshore profits.
•In the small print of the budget, there is a whole series of tax allowances for big business. Big companies will be able to offset against tax investments in enterprise zones, research and development, and many forms of new capital investment.
•Above all, corporation tax, currently 28%, has been cut by 2% with the promise of further cuts to 23% in three years’ time.
•Osborne has also promised that the 50% top rate of tax on those earning over £150,000 will be reduced in the future. This highlights an important aspect of the Con-Dems’ policy. Many of the current taxes levied on big business and the wealthy minority are regarded as temporary, to be reduced in the future. On the other hand, the cuts in public spending, with the massive loss of services and public sector jobs, are regarded as part of the permanent reduction of the public sector - in other words, a permanent blow to the living standards and well-being of many millions of workers.
The following article is by Lynn Walsh a good comrade in the labour and trade union movement for many years now.
Lynn Walsh, Editor of Socialism Today
The Con-Dem chancellor, George Osborne, claims his budget (24 March) is the "most pro-growth budget for a generation". But the British economy is barely crawling along, and the budget will do nothing to promote growth.
The government previously predicted 2.3% growth of gross domestic product (GDP - value of the total output of goods and services) for 2011. Now, the Office for Budget Responsibility (OBR) forecasts meagre growth of 1.7% of GDP for 2011. Even that may prove to be optimistic given the scale of spending cuts and tax increases.
Consumer spending, which has been the locomotive of the British economy over recent years, is falling. This is the chilling effect of job losses, escalating prices, and fear of what is to come. The former boss of Asda supermarket, Andy Bond, warns that worse is yet to come. "You’re kidding yourself if you think the worst is over and we’ve had a consumer recession - it’s ahead of us." The bosses of big supermarkets and high street stores, like Dixons and Mothercare, are warning of reduced sales and company profits.
"The economy," comments the Financial Times (6 April), "has been much weaker over the past six months than almost any economist expected." It was "practically stagnant over the past two quarters even before the impact of higher inflation and deeper spending cuts, according to a respected economics research group [National Institute of Economic and Social Research]."
As bad as they are, the Con-Dem cuts have so far merely been nibbling at public services: "The deeper cuts will bite with increased severity over the coming years." (Financial Times editorial, 25 March) Osborne’s fraudulent ’expansionary austerity’ is going to be austerity, austerity, austerity.
Squeezed incomes
Living standards have already been severely hit by inflation and squeezed wages. Prices are rising by 5.1% a year, according to the RPI (retail prices index, which includes housing costs).
At the same time, wages are only increasing by 2%, which means a 3% fall in real (inflation-adjusted) wages. Every 1% fall in real wages means a loss of £250 a year. This has resulted in the first fall in disposable income for over three decades, and there is likely to be a further fall in 2011.
The BBC Panorama programme recently carried out a survey of actual take-home pay (BBC News, 28 March). This showed that, on average, workers are taking home £1,088 less a year than two years ago. Their real pay has fallen by 5% since the beginning of 2009, which was half way through the recession.
The sharpest drop in real pay was in the construction industry, where it was £99 a month less. In the public sector, average pay was £45 a month less, while in the retail sector it was £41 a month less.
Privatising debt
One of the most alarming predictions for the next few years is for a huge rise in household debt. The Con-Dem government is aiming to cut public debt by £43 billion. At the same time, the OBR estimates that private-household debt (including mortgages and credit card debt) will rise by a staggering £245 billion. With increased unemployment, squeezed wages, higher prices and taxes, people will borrow more simply to survive.
In effect, this is the privatisation of the state debt, a huge share of which came from the nationalisation of bank losses. Now, spending cuts and tax increases will push millions deeper into debt, throwing a huge burden onto working class families.
By 2015, according to the OBR, debt as a percentage of household income will increase from the current 160% to 175%. In hard figures, this means a rise from an average of £58,000 debt to £66,291 by 2015.
Petrol tax
Faced with explosive public anger over the soaring price of petrol and diesel, Osborne cut fuel duty by 1p a litre and postponed a further 3p rise until January 2012. Undoubtedly, the government fears the possibility of another fuel price protest on the lines of September 2000, when lorry drivers and farmers blockaded oil refineries and jammed motorways. At that time, protests were encouraged by the Tory opposition, but new protests would now pose a threat to the Con-Dem government.
However, the 20% VAT on fuel will remain, and pump prices will no doubt continue to rise as a result of the rise in world oil prices, due to the crisis in the Middle East and North Africa.
To pay for the fuel duty cut, Osborne has raised taxes on oil production. The windfall profits tax on UK oil and gas production will increase from 20% to 32%, which is expected to bring in an additional £2 billion. Despite their increased profits from the 35% increase in oil prices over the last five months, the oil companies are screaming about this very limited tax increase, peanuts to these giant corporations. Malcolm Webb, chief executive of Oil and Gas UK, said: "This change in the tax regime will decrease investment, increase imports and drive UK jobs to other areas of the world."
This is a barely disguised threat of a ’strike of capital’ if the government increases its tax on oil production. They are unlikely to carry this out, at this time, however, because of the immensely profitable reserves that remain in the North Sea, especially given the fact that oil has now risen to around $120 a barrel.
Nevertheless, it is an indication of the likely reaction of big business, like the banks, to the threat of a ’Robin Hood tax’ proposed by the TUC. Without measures to take control of big business and mobilise mass support for such measures, big business will attempt to sabotage any such steps through withholding investment, etc.
Heading for disaster
The Con-Dem government’s leading economic policy guru, Oliver Letwin, has revealed the private discussions of Con-Dem ministers. "Leading up to the recent budget, we took the view collectively in cabinet that we faced an immediate national crisis in the form of less growth and jobs than we needed." (The Guardian, 31 March) Nothing in Osborne’s budget will overcome this crisis, which will deepen in the coming months.
In response to the budget’s supposedly pro-growth measures, the ’independent’ OBR concluded: "We do not believe there is sufficiently strong evidence to justify changing our trend growth assumption in light of policy measures announced in budget 2011."
It is predicting a mere 1.7% growth in GDP for 2011. At the same time, unemployment is projected to continue to an appalling 2.52 million or 8.2% of the workforce. This includes over a million unemployed young people.
The Con-Dem government’s aim is to reduce the government’s budget deficit to near zero by 2014-15. This is an unrealistic objective even from the point of view of big business and their system - and is likely to prove counter-productive. It is a doctrinaire policy dictated by the interests of the big banks and wealthy speculators, who manipulate bond markets in search of speculative profits.
Wiping out the budget deficit depends on faster economic growth, which is why Osborne continually claims he is promoting "expansionary austerity" through pro-growth measures.
His budget, however, did not impress the financial markets that much. The rating agency, Moodys, which assesses the credit status of borrowers, including governments, warned that "slower growth combined with weaker-than-expected fiscal consolidation could cause the UK’s debt metrics to deteriorate to a point that would be inconsistent with a AAA rating."
Near zero growth or even a new recession would mean even higher unemployment and reduced tax revenues. The Con-Dems’ savage austerity policy could then result in an increase in the deficit, the worst of all worlds.
The so-called ’expansionary austerity’ cannot provide a way out for sickly British capitalism. The crisis referred to by Letwin can only deepen. The Con-Dem government has already been shaken by mass opposition, especially the mighty 26 March TUC demonstration in London. It has been forced to partially reverse the abolition of education maintenance allowance, and to announce a ’natural break’ on the savaging of the NHS through accelerated privatisation.
The 26 March demonstration was only a beginning. It should be the prelude to further action, especially coordinated public sector strikes against cuts, a massive weekday demonstration, and a 24-hour general strike.
Black Wednesday budget
There are 44 changes in tax and benefits in Osborne’s budget. With such a complex tax/benefit system it is very hard to calculate their exact effect. But one thing is certain: most of the changes will cut the incomes of working-class families. The government’s claim that everyone - apart from the rich - will benefit is completely false.
One organisation, Credit Action, calculates that, on average, the changes will reduce household income by at least £200 a year. The Institute for Fiscal Studies (IFS) reckons that the average family income is expected to still be lower in 2013 than it was in 2008, making it the biggest five-year drop for more than 40 years. The IFS also calculates that the typical pensioner household has seen its real annual income fall by 2.4% (£456) since 2008.
However, these estimates come before further price rises, job losses, squeezed pay levels, and benefit cuts. The Centre for Economic and Business Research reckons the higher cost of living in 2011 will mean that the average family will be £910 worse off this year - the tightest squeeze on finances since 1921.
This year’s budget, moreover, is a supplement to last year’s horrendous Con-Dem spending review which spelt out £81 billion cuts and £33 billion tax raises by 2013.
The basic personal tax allowance (the threshold below which no income tax is paid) is to rise by £1,000 to £7,475, which means around 500,000 workers will not pay income tax.
This small gain, however, will be wiped out for many by the loss of services through cuts and reduced benefits. In particular, changes in tax credits and a freezing of child allowances will mean a sharp cut for working parents.
•Many middle class families will be squeezed by the lowering of the threshold for the higher (40%) tax rate from £37,401 to £35,000, which will mean around 750,000 workers paying significantly more tax (as well as higher national insurance contributions). Osborne tried to provide some populist window dressing through a number of taxes aimed at big business and the wealthy.
•The levy on windfall bank profits (heavily subsidised by state support during the crisis) is being marginally increased. North Sea oil companies will have to pay another £2 billion on their soaring profits.
•There will be a tax on passengers in private jets, and the stamp duty on the purchase of houses over £1 million will be raised to 5%. At the same time, however, there are concessions on stamp duty for developers and landlords buying multiple properties.
•The fee paid by wealthy overseas visitors to register as ’non-doms’ will be raised to £50,000, but they will continue to enjoy the privilege of paying no UK tax on their offshore profits.
•In the small print of the budget, there is a whole series of tax allowances for big business. Big companies will be able to offset against tax investments in enterprise zones, research and development, and many forms of new capital investment.
•Above all, corporation tax, currently 28%, has been cut by 2% with the promise of further cuts to 23% in three years’ time.
•Osborne has also promised that the 50% top rate of tax on those earning over £150,000 will be reduced in the future. This highlights an important aspect of the Con-Dems’ policy. Many of the current taxes levied on big business and the wealthy minority are regarded as temporary, to be reduced in the future. On the other hand, the cuts in public spending, with the massive loss of services and public sector jobs, are regarded as part of the permanent reduction of the public sector - in other words, a permanent blow to the living standards and well-being of many millions of workers.
Thursday, 30 December 2010
the growing movement of the excellent UKuncut
I've been following the progress of a movement known on the internet on twitter and facebook called UKuncut.
They are at this website here : http://www.ukuncut.org.uk/
I was listening to a bbc radio 4 podcast on the growing movement and the excellent work they are doing so far tonight, you can listen back to it here for a limited amount of time only.
http://j.mp/i3ZYhW
Please do listen to this it offers a good arguement from both sides and includes interviews from the founders of Ukuncut and representitives of the tax payers alliance which i will come on to a bit later on.
If you havent heard of them before UKuncut are a new protest movement group set up on the internet using twitter and facebook to communicate to spread the word and highlight the fact that while public sector money is being cut hugely that on the other side to represent that we are not in fact contary to what some tories may say we are not all in this together.
Ukuncut's aim is to bring to the wider publics attention that big business's multinationals in alot of cases areavoiding and dodging huge tax bills. Whilst this is not strictly against the law it is moraley wrong in my opinion.
With Vodafone having been found to have avoided paying a estimated 6 billion pounds to the british HMRC this provoked anger with people and UKuncut took to the streets to make this point heard that there is something very wrong going on out there.
In the podcast it highlights some of the protesters inside Top shop in Oxford street in London before christmas protests of which i followed very closely on twitter live at the time. But to hear actual sound clips from the protests gives me real hope and belief that there are people out there fighting for a fairer future for all.
People such as Phillip Green who i have blogged about in the past were targetted by UKuncut. ALthough Phillip has not committed any tax evasion as far as we know his wife is a non british citizen and it is rumoured he ships a lot of his company Arcadia's profits off to Monaco where she apparently lives to avoid having to pay tax on it while in Britain.
I feel this is a outrage and for innocent hard working people in the public sector having to loose their jobs due to cuts and job loss's when no cuts wouldh ave to be made if cases's like Vodafone and Top shops owners paid their tax properly we would be ok.
What angers Ukuncut protesters even more is the absolute lack of effort being made from our present government which is conservative lead with the vast majority of the current cabinet being millinaires themselves. They feel a lot lot more could be done to plug the loop holes that these rich multinationals are exploiting for their own benifit. To me it smacks of a very unbalanced unequal system when you have hard working honest poor people paying their bit of tax which will be a lot of their weekly earnings to the government when the people who really can afford to pay tax and a hell of a lot more in my opinion do not consistently.
The tax payers alliance which i eluded to earlier in my post rear their ugly head again. They all seem to be a load of daily mail reading look after yourself type person really and feel that we will have to put up with this as it has always been this way in this country. They also feel that taxing big business's too much in the end will drive them away to other countries. To me i'd say good ridence really maybe in their place we would bring in fairer and more honest companies who want to play by the rules. We as a country need to be setting an example i feel as with a lot of things our actions are often reflected and replecated around the world. So i whole hartidly support Ukuncut and their efforts to protest and make their message heard. Also good on radio 4 for highlighting their efforts i think its about time this sort of message is heard loud and clearly and those who are not playing by the rules are named and shamed.
They are at this website here : http://www.ukuncut.org.uk/
I was listening to a bbc radio 4 podcast on the growing movement and the excellent work they are doing so far tonight, you can listen back to it here for a limited amount of time only.
http://j.mp/i3ZYhW
Please do listen to this it offers a good arguement from both sides and includes interviews from the founders of Ukuncut and representitives of the tax payers alliance which i will come on to a bit later on.
If you havent heard of them before UKuncut are a new protest movement group set up on the internet using twitter and facebook to communicate to spread the word and highlight the fact that while public sector money is being cut hugely that on the other side to represent that we are not in fact contary to what some tories may say we are not all in this together.
Ukuncut's aim is to bring to the wider publics attention that big business's multinationals in alot of cases areavoiding and dodging huge tax bills. Whilst this is not strictly against the law it is moraley wrong in my opinion.
With Vodafone having been found to have avoided paying a estimated 6 billion pounds to the british HMRC this provoked anger with people and UKuncut took to the streets to make this point heard that there is something very wrong going on out there.
In the podcast it highlights some of the protesters inside Top shop in Oxford street in London before christmas protests of which i followed very closely on twitter live at the time. But to hear actual sound clips from the protests gives me real hope and belief that there are people out there fighting for a fairer future for all.
People such as Phillip Green who i have blogged about in the past were targetted by UKuncut. ALthough Phillip has not committed any tax evasion as far as we know his wife is a non british citizen and it is rumoured he ships a lot of his company Arcadia's profits off to Monaco where she apparently lives to avoid having to pay tax on it while in Britain.
I feel this is a outrage and for innocent hard working people in the public sector having to loose their jobs due to cuts and job loss's when no cuts wouldh ave to be made if cases's like Vodafone and Top shops owners paid their tax properly we would be ok.
What angers Ukuncut protesters even more is the absolute lack of effort being made from our present government which is conservative lead with the vast majority of the current cabinet being millinaires themselves. They feel a lot lot more could be done to plug the loop holes that these rich multinationals are exploiting for their own benifit. To me it smacks of a very unbalanced unequal system when you have hard working honest poor people paying their bit of tax which will be a lot of their weekly earnings to the government when the people who really can afford to pay tax and a hell of a lot more in my opinion do not consistently.
The tax payers alliance which i eluded to earlier in my post rear their ugly head again. They all seem to be a load of daily mail reading look after yourself type person really and feel that we will have to put up with this as it has always been this way in this country. They also feel that taxing big business's too much in the end will drive them away to other countries. To me i'd say good ridence really maybe in their place we would bring in fairer and more honest companies who want to play by the rules. We as a country need to be setting an example i feel as with a lot of things our actions are often reflected and replecated around the world. So i whole hartidly support Ukuncut and their efforts to protest and make their message heard. Also good on radio 4 for highlighting their efforts i think its about time this sort of message is heard loud and clearly and those who are not playing by the rules are named and shamed.
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