Friday 27 January 2012

There is an alternative

François Hollande vows to tax the rich to pay off French deficit

Leftwing frontrunner in presidential race launches manifesto

François Hollande, the leftwing frontrunner in the French presidential race, has vowed to make the rich pay the highest price to help drag France out of its economic crisis, while promising to pump more money into schools and state-assisted jobs.

The Socialist rural MP, who recently declared "my real adversary in this campaign is the world of finance", launched his manifesto on Thursday, a road map of how the left would deal with the financial crisis. Hollande said he would raise taxes for banks and big companies as well as France's richest people, and use the money to help wipe out the nation's crippling public deficit.

By scrapping some €29bn (£24bn) worth of tax breaks for wealthier people introduced under Nicolas Sarkozy, he said he could find €20bn to deal with the corrosion of French society: record unemployment, soaring youth jobless figures and an education system that has been shamed as one of the most unequal in Europe, where one in six children leave with no qualifications.

Read more here:http://www.guardian.co.uk/world/2012/jan/26/francois-hollande-french-presidential-manifesto

It is a pity we have no party in this country that will tackle the inequality, the tax and pension breaks for the richest and the wealth divide that characterise our society.

Ministry of Defence to cut further 3,000 civilian jobs

Defence secretary will be forced to admit MoD has miscalculated how many staff it can afford, Guardian learns

Another 3,000 civilians are to be axed from the Ministry of Defence to help it bring down an estimated 2bn overspend in its budget.
Philip Hammond will be forced to make the embarrassing admission in the coming days amid fresh concern within the MoD about how to balance its budget.

This anxiety has led the defence secretary to order the army, Royal Navy and RAF to go through all their key contracts and equipment programmes to ensure they are in line with their targets.

According to sources, the department still has a £2bn-3bn overspend and ministers fear this figure will rise, not fall, unless further action is taken.

The admission over the number of civilian job losses - which may have come from miscalculations in the money for civilians - is likely to put the department under even more strain, and force a rethink about where redundancies will come from.

The strategic defence and security review (SDSR) included a pledge to axe 25,000 civilian jobs from the MoD before 2015.

This is the baseline figure that the department and the unions have been working with since September 2010.

That has now been revised to 28,000. It is understood MoD finance officials have realised that the money set aside for civilians in the SDSR won't be enough to support the workforce they wanted – so more redundancies are needed.

In addition, the MoD will lose another 7,000 civilian posts between 2015 and 2020. It means the department's civilian workforce will have been cut from 75,000 to 40,000 within nine years.
Union leaders have asked for an immediate meeting with Hammond to explain the discrepancy, and are demanding to know why civilians are paying for the mistake.

They suspect the department lost track of how many people it employed at the time of the SDSR, which might have contributed to the accounting errors.

Steve Jary, national secretary of the Prospect union, said: "The truth is that cuts to civilian specialists in the department far outnumber cuts to the armed forces. Over 10,000 civilians left the MoD last year and it plans to cut another 10,000 in 2012. The department is already struggling to cope with its day-to-day business, and come the summer, will face a moment of truth. This is a disaster waiting to happen."

He added: "It just doesn't make sense. The armed forces needs both the skills and specialisms of those in the civil service coupled with the military capacity provided by our soldiers."
Though civil service cuts are considered more palatable politically, unions have warned the loss of core skills has already forced the department to buy in consultants on expensive, short-term contracts.

In December, the Guardian revealed that the department had spent nearly £600m over two years hiring outside consultants because it did not have enough in-house expertise.
A confidential internal report on the spending highlighted numerous flaws and rule-breaking, and warned that control of the MoD purse appeared to be "poorly developed or non-existent".

Earlier this week the MoD was strongly criticised by MPs on the defence select committee who said it was "grotesque" that the armed forces were being subjected to compulsory redundancies while no civil servants have yet been asked to leave against their will.

The committee dismissed explanations given by ministers and senior officials, describing the different treatment meted out to military personnel and civil servants as shocking.

The MoD defended the position, saying: "Reductions to the civilian workforce have had to be made to help tackle the financial black hole the government inherited in the MoD. Civilians receive considerably less in compensation than the average soldier; where a sergeant receives an average payoff of around £65,000, a civilian receives around £30,000 on average. The MoD civilian workforce is reducing by around 33% compared to a reduction of 17.5% in military manpower."

The MoD said the extra 3,000 civilian cuts were part of the annual planning round.

"Each year, we review our plans to take account of changes over the previous 12 months and to ensure that we have the right equipment and manning levels to meet the future needs of our armed forces as agreed in the Strategic Defence and Security Review. Final decisions have yet to be taken but this annual process rightly considers the status of all our key programmes to ensure the continued coherence and balance of the whole programme."

Wednesday 25 January 2012

UK state debt is not £1 trillion – it is only £725 billion

Stories abound on the fact that the UK supposedly has state debt of £1 trillion for the first time. (We published a story to that effect yesterday) This however is not true according to Richard Murphy at Taxresearch.

Over the last few years the UK has issued debt as shown below totalling about £560 billion.
I have based all my data on the national accounts for the third quarter of 2011 unless otherwise noted. It’s the borrowing since 2008 that has supposedly given rise to the debt of £1 trillion.

(To see the detailed figures please visit: http://www.taxresearch.org.uk/Blog/2012/01/25/uk-state-debt-is-not-1-trillion-it-is-only-725-billion/ )

However, it should be noted that the government has done something else at least as significant. Through the quantitative easing programme the Bank of England has repurchased or will be soon repurchasing near enough £275 billion of that debt (I’ve shown the last £75 billion as happening in Q3 of 2011 as that’s near enough when it was authorised).

Now the Bank of England is owned by the UK government so if, in accounting terms, a consolidated set of accounts were to be prepared the £275bn owed by the Treasury to the Bank of England would simply be crossed out, or ignored. The actual debt would only be £725 billion.

And in this case that would be absolutely the right point of view. There is no hope at all that this debt will ever be sold back into the markets: there’s enough new debt to sell to meet all market demand for UK debt without ever re-selling this stuff. So it’s absolutely right to say this debt does not exist and should not therefore be in the statistics at all because for all practical purposes it has already been written off. And as important, the interest paid on that £275 billion should not be considered government spending justifying cuts either: that interest is paid straight back to the government.

Then note what this does to the narrative on average borrowing. OK, this data misses quarter 4 of 2011 as the information is not yet available, but over 6.75 years the average borrowing is near enough just over £42 billion and that’s a remarkably consistent sum over time and is only 3% or so of current GDP; and that’s within the Maastricht limits, let it be noted.

Nor is there any hint now of this QE causing inflation, all of which can safely be said to have had other causes, not least because as Government accounts also show, the M3 measure of money supply has fallen steadily since 2009, meaning there is no prospect of inflation in the future either as a consequence of this process.

So we have no debt crisis. We just have misinformation about how big the debt is and about how much we’re borrowing. Tell the truth, as I have here, and you get a very different picture indeed. And that would also lead to very different economic policies too. Because tell this story and the focus need not be on cuts that we do not need but on growth that we do need. False accounting is forcing the national political agenda in a direction in which it need not go.

It’s all a matter of getting the story right and on this occasion it takes an accountant to do that.
So shall we stop all the other nonsense, now and get on with the real issue, which is we have low net borrowing that we can afford, lower interest costs than the government claims and the basis for sustainable recovery already in place. All we need to do is grab the opportunity.

So, why the interest in beach volleyball, Minister?

Government claims it is a coincidence MPs 'bought DOUBLE the number of tickets for 'skimpy outfit sport'

Arguably, it is an Olympic sport that would be equally at home on a Baywatch film set as it will be at the Games.

Yet the Government has insisted it is pure ‘coincidence’ that ministers have bought double the number of tickets for beach volleyball – famous for its skimpy outfits – as they have for athletics.

Former Labour sports minister Gerry Sutcliffe asked if it was just an ‘oddity’ that ministers bought 410 tickets, worth £26,000, compared with 246 for athletics.

Read more: http://www.dailymail.co.uk/news/article-2091350/MPs-bought-DOUBLE-number-tickets-London-2012-volleyball.html#ixzz1kSfh60SW

Tuesday 24 January 2012

Harrier sale consultants net £1.1m

The Ministry of Defence paid consultants over £1.1m for their part in the sale of the UK's Harrier jump jet fleet to the United States, it has been revealed.

Defence Equipment, Support and Technology minister Peter Luff revealed the figure in the House of Commons following a question from Madeleine Moon MP.

The US paid around £110m for 72 Harriers, meaning that consultants netted around 1 per cent of the final value of the deal. The payments are understood to be part of a wider consultancy deal with Alix Partners, which drew criticism last year when it was revealed that their consultants were being paid around £3,950 a day for their work as savings consultants.Luff said that the MoD paid no other external bodies during the trade deal, which was announced in late November 2011."

No external legal or currency brokerage costs were incurred by the Ministry of Defence for the retirement of the Harrier fleet or for the sale to the US Government," said Luff. "The external consultancy costs for these two activities were £0.7m and £0.4m respectively. We do not expect to incur any further costs relating to the retirement and sale to the US Government of the Harrier fleet."

The value of the sale is $180m (around £110m). This figure includes 72 Harrier airframes, spares and associated support equipment. The MoD will receive monetary payment from the US government for the full value of the Harrier sale before 1 April 2012. Overall £1bn will be saved from removing the Harrier from service."Luff said that the money from the sale would be retained by the Ministry of Defence so that it could be reinvested in "key priorities".Shadow Defence Secretary Jim Murphy said the £1.1m cost was "extraordinary".

"Ministers must explain why others are profiting from decisions which have seen thousands made redundant and Britain left without an aircraft carrier with aircraft for a decade. Surely this money could be better spent to help preserve jobs or important capabilities," he said."

It's plain wrong for a consultant to be paid more in a week than many of our soldiers receive in a year. David Cameron and his Ministers are losing all credibility on defence."Madeleine Moon told The London Evening Standard she was "appalled" at the consultancy bill for the sale.

MoD redundancy payoffs cost £75m

The Ministry of Defence has paid out more than £75m to civilian staff who have been made redundant in the last three months, it has been revealed.

Around 2,500 of the ministry's staff received an average payout of around £30,000, official figures published in The Guardian show.

Over 25,000 civilian redundancies were called for by 2015 in 2010's Strategic Defence and Security Review. With an average payout cost of £30,000, the SDSR-related redundancies could cost the Ministry £750m, although savings in the salary bill over time will be significantly higher, helping the MoD tackle its budgetary 'black hole'.

A Ministry of Defence spokesman said that the average civilian member of staff had received "considerably" less in their redundancy payouts than military personnel."Where a sergeant receives an average payoff of around £65,000, a civilian receives around £30,000 on average," the spokesman said."

The MoD civilian workforce is reducing by around 33 per cent compared to a reduction of 17.5 per cent in military manpower.

"Shadow defence secretary Jim Murphy said the figures showed government's priorities were wrong."David Cameron is culling the army in their thousands while spending millions on civil service payoffs," said Murphy. "He needs to get his priorities straight. People worried about the impact of the cuts on families and the front line will be angry at this news."

UK debt passes £1 trillion for the first time

UK public debt has passed the £1 trillion mark for the first time, as the Government borrowed nearly £14bn last month despite its continued austerity drive. (The Telegraph)

Public sector net debt excluding financial interventions, such as bank bail-outs, rose to £1.004 trillion in December, the highest since records began in 1993.

The Office for National Statistics (ONS) said it expected the figure to ease back in January due to tax inflows, but to rise again in February.

However, borrowing in December came in lower than expected, putting Chancellor George Osborne further ahead of a target set by the Office for Budget Responsibility (OBR) to bring borrowing down by £10bn to £127bn this financial year.

The ONS said that public sector net borrowing, excluding financial interventions fell to £13.7bn in December, down from £15.9bn in the same period in 2010.

Sterling slipped slightly against the euro following the news, after falling close to a four-week low on the back of better-than-expected eurozone PMI surveys. The pound also fell a quarter of a cent against the dollar, to $1.5534.

Vicky Redwood, senior economist at Capital Economics, said that the £1 trillion figure was "a reminder of the enormity of the challenge that still lies ahead to get the public finances back on a sustainable footing."

She added: "We expect weaker growth than the OBR is forecasting to make its future borrowing forecasts much harder to meet. Indeed, so far, it has been weaker spending growth helping borrowing to fall, whereas tax receipts are falling short of the fiscal forecasts."

Stalling growth saw the Chancellor revise UK borrowing forecasts in last year's Autumn Statement. Borrowing is now expected to be £5bn more this financial year than originally forecast, £19bn higher next year and £30bn higher in 2013-14.

The OBR also said in November that downward revisions to its growth forecasts meant that the deficit would also shrink less quickly over the next five years.

Most economists expect official GDP figures released on Wednesday to show the UK economy contracted during the final quarter of 2011.

Growth is expected to have fallen 0.1pc in the three months to December according to a Bloomberg poll, compared with a 0.6pc rise during the third quarter.

The International Labour Organisation (ILO) warned on Monday that Britain risks falling back into recession because of an "unabated" weakening of the jobs market, while the Ernst & Young ITEM Club and the Centre for Economics and Business Research believe that the UK is already in recession.

Europe's top judge: Cameron is wrong about human rights

Europe's most senior judge launches an attack on David Cameron today, accusing the British Government of pandering to the tabloid press in its criticism of the European Court of Human Rights.

Writing in The Independent on the eve of the Prime Minister's visit to Strasbourg, where the court is based, its president, Sir Nicolas Bratza, says "senior British politicians" have betrayed their ignorance of the institution's history and legal position by joining the clamour for its reform.

Sir Nicolas's highly unusual intervention comes as the Prime Minister prepares to deliver a speech calling for sweeping changes to the court's operation. Mr Cameron will call for a "filtering system" to prevent cases properly resolved in national courts from being referred to Strasbourg and for an overhaul of how judges are appointed.

Ministers are angry that the court – which was set up in the aftermath of the Second World War – last week blocked the deportation of the radical preacher Abu Qatada to Jordon, where he is wanted on terrorist charges. The Government – backed by opposition parties – is also wrangling with the court over whether prisoners should be given the right to vote. Mr Cameron is under pressure from Tory backbenchers to withdraw completely from the court.

But Sir Nicolas, Britain's nominee to the court, insists the institution's influence on human rights in Britain has been "overwhelmingly positive". Writing in The Independent today, he defends the court's record, citing "landmark rulings" that lifted the ban on homosexuals serving in the armed forces, allowed the media to challenge restrictions in reporting the Thalidomide case and ensured child criminals were not tried in adult courts.

He directly addresses Mr Cameron's charge that the court has allowed too large a backlog of cases to build up, saying the numbers of states signing up to the European Convention on Human Rights has led to a "massive increase in its caseload".

Sir Nicolas also hits back at the Government's accusation that the court interferes too often in domestic cases, saying: "The criticism relating to interference is simply not borne out by the facts."

The Strasbourg court has been "particularly respectful of decisions" in Britain since the Human Rights Act, which enshrined the Convention in British law, because of the "very high quality of those decisions", he says. Sir Nicolas says the court has streamlined its procedures to help it deal with "repetitive cases".

He says: "Against this background, it is disappointing to hear senior British politicians lending their voices to criticisms more frequently heard in the popular press, often based on a misunderstanding of the court's role and history, and of the legal issues at stake.
"It is particularly unfortunate that a single judgment of the court on a case relating to UK prisoners' voting rights, which was delivered in 2005 and has still not been implemented, has been used as the springboard for a sustained attack on the court and has led to repeated calls for the granting of powers of Parliament to override judgments of the court against the UK, and even for the withdrawal of the UK from the Convention."

His comments reflect growing frustration in Strasbourg at the rhetoric directed at the court from Britain. Earlier this month, Tory MPs claimed that the UK loses three out of four cases it fights in the court.

But the real figure is 61 per cent, one of the lowest "violation rates" of any European country. France, Germany, Italy and Norway all lose a significantly larger proportion of cases. Britain's real violation rate is actually closer to 2 per cent because 97 per cent of British cases that come before the court are thrown out altogether.

Case study

Chris Morris, a 32-year-old lifestyle coach, was just 16 when he and other teenagers went to the European Court of Human Rights to challenge Britain's age-of-consent rules. They won, resulting in legislation that eventually equalised the age of consent for both gay and straight people.

"In my specific case, the European Court of Human Rights was vital. There was such public confusion over the age of consent. Politicians didn't want to take sides. But as soon as it became clear that the court was going to make a decision anyway, the politicians suddenly aligned themselves behind what was going to happen. It's unbelievable to think how recent the campaign was. Sometimes I look at young gay people now and think, wow, it really is a different world for them. What the court did was make it a much higher-profile cause and a clear human-rights issue. It sent out the message that this is what a civilised country should be doing. I could no longer be put in prison for what my straight friends were doing."

Case histories: what the Court of Human Rights has done for us

1972 Tyrer vs UK
Anthony Tyrer was 15 years old when he was legally flogged by police officers on the Isle of Man for assaulting a fellow schoolboy. The case went to Strasbourg where judges ruled that such punishment was "inhuman or degrading". At the time the decision was met with outrage yet one would be hard pressed to find European law enforcement agencies that still advocate judicially sanctioned beatings for criminals.

1979 The Sunday Times vs UK
Were it not for the European Court of Human Rights the true extent of the thalidomide scandal might never have been uncovered. Marketed as a cure for morning sickness, thalidomide caused thousands of children to be born with shortened limbs – the drug had never been tested properly.

The Sunday Times newspaper wanted to publish an investigative expose of the scandal but was halted by an injunction from the House of Lords because the makers of thalidomide were still being sued by its victims at the time. The ECHR later ruled that the injunction was a breach of Article 10 – the right to freedom of expression – because it was disproportionate and unnecessary. The decision directly led to a radical reworking of Britain's contempt of court laws.

2009 FT and others vs UK
Protection of sources is a cornerstone of journalism. But governments and businesses often go to extreme lengths to try and force reporters to reveal the identities of whistleblowers. In 2001 The Financial Times and four other media organisations – including The Independent – were taken to court by the Belgian company Interbrew and ordered to hand over documents concerning a confidential takeover bid. The British courts repeatedly sided with Interbrew. The case eventually wound its way to Strasbourg where – eight years later – judges ruled that giving up a source would breach the right to freedom of expression.

1996 Sutherland and Moore vs UK
In 1996 the ECHR ruled that it was discriminatory to have a different age of consent for gay men and women. Previous attempts to challenge such discrimination had failed until gay activists Euan Sutherland and Chris Moore challenged Britain's laws which insisted homosexuals wait until 18 before they could legally have sex compared to 16 for straight men and women.

2011 Abu Qatada vs UK
Last week a ruling that radical Islamist cleric Abu Qatada could not be deported to Jordan was met with howls of derision by the popular press and politicians. Yet Qatada's deportation was not halted because judges feared he would be mistreated by the Jordanians – the judges, in fact, accepted that Britain had obtained diplomatic assurances that he would be unharmed. What they could not allow was the deportation of a man who would be tried by the Jordanians using evidence that had undoubtedly been obtained through torture. Given Britain's commitment to neither practising nor encouraging torture, the court ruled that any deportation of Qatada would result in a trial that would be "not only immoral and illegal, but also entirely unreliable in its outcome".

2011 Bamber & others vs UK
On the same day the court ruled on Abu Qatada, Strasbourg published an equally significant verdict in which judges insisted that Britain was able to impose life tariffs that meant life. Three convicted murderers – Jeremy Bamber, Douglas Vinter and Peter Moore – tried to argue that life sentences with no hope of release constituted inhumane or degrading treatment. The judges disagreed saying that as long as the convictions were safe and the crimes grave enough, there was no reason why some prisoners should not be held behind bars for the rest of their lives.

Jerome Taylor, The Independent

Thursday 12 January 2012

PCS to call TUC for more walkouts over pensions

Public and Commercial Services union motion unlikely to succeed and could result in breakaway group taking action (reports The Guardian)


The largest civil service union will call for more public sector walkouts at a TUC meeting on Thursday after confirming its opposition to pension changes.


However, the call by the Public and Commercial Services union is unlikely to succeed and could result in a breakaway group of unions taking further industrial action.


Mark Serwotka, the PCS general secretary, said another bout of "co-ordinated strike action" was needed following a meeting of the union's executive, with teachers' unions and Unite among the organisations harbouring similar concerns.


A union source said the TUC meeting of public sector unionswill update senior figures on progress in pension talks but will not be used to set new strike dates.

Wednesday 11 January 2012

We're all desperate for welfare reform, Mr. Cameron, but hiding the truth is not the way to achieve it

The Mail, 10th January, by Sonia Poulton

I believe that there comes a point in the life of any Prime Minister when the electorate is entitled to ask - and loudly - does this person actually know what they are doing?

So it is that I have just posed this question of our current PM and the answer to come back has greatly alarmed me.

David Cameron is lost in his role as PM. That much is apparent. Like a toddler at big school he has no true understanding of the issues before him and blunders in apparently unaware of danger or the need to tread carefully.

I can only conclude that being out of his depth is the problem because I can't, for the life of me, fathom some of his policies. They make no sense to me on any level, human or otherwise.

His current big idea - the Welfare Reform Bill - may yet prove to be his Margaret Thatcher - Milk Snatcher moment. The point when people will look back and shudder at the sheer callousness of it.

My problem is that I was hoping for too much from him when it comes to the sensitivity and understanding of the UK's disabled community.

Foolishly I believed that he, of all prime ministers, would be acutely aware and therefore appropriately empathetic of the difficulties that disability bring to the day to day existence of people.

Who can forget the national sorrow and compassion we all felt for him, regardless of our political persuasion - when he and his wife, Samantha, experienced the loss of their disabled son Ivan?

Given David Cameron's painful, yet remarkable, insight into disability - and the wide and diverse range of needs that disabled people have - there was a general feeling that this would be a PM who would enable our country's disabled population to lead as full and secure a life as possible.
And this would occur without feeling humiliated to ask for assistance because, after all, the care of it's vulnerable should be a priority for any decent society.

So it is that I am barely shocked, but no less disappointed, to discover that when it comes to Welfare Reform - and disabled people in particular - David Cameron has been less than straightforward.I refer to the Coalition's plans for Disability Living Allowance (DLA) and the proposed - and vast £9.2bn in cuts to services and benefits.

A great deal of opposition has been registered to these cuts but the chances are you won't have heard about them seeing as the Government has worked incredibly hard to keep it quiet.
Well, its an unpopular proposal for starters - and they've already had their fair share of those in less than two years in the job - so they can ill-afford any more initiatives that appear to have been conceived during a midnight feast on a dorm in Eton.

Do I need to recall the recent idea of having a taskforce show up on the doorstep of trauanting children/drug addicts of a morning and marching them off to their destination? Course not. We all remember that and some of us are still laughing.

But now they are more mean-spirited than ever - proving that when it comes to politics, David Cameron's Conservatives retain their place as 'the nasty party'.

Let me clue you up. For those of us fortunate enough not to need Disability Living Allowance, we would have remained in sweet ignorance about the untenable pressure and stress that is currently being applied to some of the most inordinately vulnerable members of society: our disabled.

That was until the Spartacus report published this week which blows the lid off the Government's plans and makes abundantly clear the true level of opposition to the intended reforms - and this includes the extent to which the Government misled MPs and Peers over the hostility to disability benefit reform.

Oh me, oh my. Surely Dave and his boys wouldn't only give us the information that they would want us to know about, would they? Apparently so.

Despite conducting a public consultation, the Department for Work and Pensions - whose arm DLA falls under - have chosen to blanket ignore the opinions of their respondents.

The unexpurgated version of the consultation goes something like this:

98 per cent of respondents objected to the qualifying period for benefits being raised from three months to six months. 99 per cent also objected to DLA no longer being used as a qualification for other benefits. And just to seal off the 90 percent-ers, 92 per cent of people opposed removing the lowest rate of support for disabled people.

In real terms what we are talking about here is less money in the disabled benefit pot and to the tune of billions. Yet despite the opposition to these intended cuts - and even Mayor of London Boris Johnson opposing the proposals so worried was he about how this would impact the disabled citizens of our capital city - no one knew about this.

It was kept away from public dissection and would've remained so had it not been for researchers using the Freedom of Information Act to obtain more than 500 responses to the consultation that were submitted by disabled people’s organisations, disability charities and other groups.

That was when the true scale of the deception became clear. And the alarm to these proposals - backed up by their iffy statistics - can be heard from Scunthorpe to Southend as thousands of disabled people come to terms with the fact that if the Welfare Reform Bill goes through then there is a very real chance that DLA will be abolished completely and replaced with a benefit that looks suspiciously like the Employment and Support Allowance (ESA) and utilises a number of flawed tests to ascertain eligibility.

The upshot is that 3.2 million people will be transferred to a system that will include yet more assessments and a cutting of existing claims by 20 per cent.

Even more savage are those disability cuts that will result in as much as 50 per cent of weekly benefit deducted. When you are receiving little more than seventy pound, as it is, then reducing the income by half is a frightening and shocking amount. People are already dying through lack of food and heat and it will surely only increase. Remind me. We are living in a privileged country in 2011, yes?

This Coalition love to talk about our 'shameless' generation but we are led by a shameless government. One that runs regular 'Sweetheart Deals' with multi-nationals and allow them to get away without paying billions - yes, that's right billions - of pounds in taxes and yet turn on the very people we need to protect.

My screen saver, taken from a popular poster, reads: 'Put politicians on minimum wage - and watch how fast things change.' I believe there is a great deal of truth in that.

Our MP's are entirely out of touch because they are not living hand to mouth like too many of us.
There's an absolute feeling now - and I certainly have it - that our politicians are nothing but self-serving egomaniacs. Across all parties there are reprehensible examples of people behaving in manners unbefitting of elected members of parliament.

Like their fatcat mates in The City - who they protected again last week when David Cameron vetoed a financial transaction tax for business - this Coalition is symbolic of the 'me, first' era.
Interestingly, four days after they voted to keep their city friends in the luxury to which they are accustomed, the House of Lords also voted to reduce top-up payments for disabled children

Translated that means they will reduce some disabled benefits to less than $30 per week. Roughly the amount, no doubt, that David Cameron spends on toothpicks for a weekend party for his Chipping Norton set of elite friends.

The thing about disability or illness is they are not always visible. My fifty-something brother had a kidney transplant and has had a casebook of illnesses ever since - ranging from cancer to diabetes and depression - and yet, on a good day, he can walk for 10 or 15 minutes at a time with me. Admittedly, it's not very far but he can physically move.

Anyone seeing him may deduce that he is one of those fabled characters 'the benefit scrounger' but the reality couldn't be further from the truth. He requires literally hundreds of tablets each week, and daily injections, to keep him alive.

Like so many others now in receipt of disability benefits, my brother worked for decades, paid into the system and then found himself on the receiving end of detestable and diabolical behaviour when it comes to getting some support back.

He endured a year of utter misery at the hands of the Department for Work and Pensions who shuffled his claim back and forth and treated him with indifference on the one hand and belligerence on the other .

At one stage I worried for his mental health so severe was his depression when his DLA application was rejected, subject to several - and costly - appeals and then finally re-instated.
Disabled or sick people have more than enough to cope with without having to put out the begging bowl to be helped when they are entitled to be and should not be treated as a leper when they need it.

Regardless of whether this Coalition is determined to take us to hell in a handbasket we should really ask if we want to be represented in such a callous and coldhearted manner. And then when we've decided - we should make that clear by standing up and being counted.

That's not a country that represents me or, indeed, any of the decent and fair-minded people of my acquaintance. We want to know that should the worst happen and people need help and support that it is available for them without making them despair or feel humiliated.

To reprise a slogan, Mr. Cameron, one that was dreamt up when your predecessor, Tony Blair, was conducting his own dodgy dossier so that he, too, could push for action that few others agreed with - when it comes to your proposed welfare cuts, the ones you seek to change but by giving us only half the story in which to make up our minds, I say this: not in my name.

It is salutary to note that this article appears in what is a Tory supporting right wing paper.

Tuesday 10 January 2012

Blair's company paid just £315,000 tax on income of more than £12m

When you have already spent half a million pounds on rent, £300,000 on furniture and £2.3m paying your staff, an extra £8m on unexplained “administrative expenses” might seem to be stretching credulity, but that is what Tony Blair has told Her Majesty's Revenue and Customs, which as a consequence has received a rather smaller cheque from the former Prime Minister than it might have expected.

Records sent to Companies House reveal a substantial leap in Tony Blair's income in the year ending March 2011, but such a rise has not been passed on to the taxman. One of his many companies and partnerships, Windrush Ventures, declared a turnover of £12m, up from £8.5m the year before. But Mr Blair's accounts claim that just over £1m of this is profit, the rest written off as "administrative expenses", with no further explanation given for some £7.74m of the total. With the corporate tax rate at 28 per cent, this left Mr Blair with a tax liability of only £315,000.

Read more here: http://www.independent.co.uk/news/uk/politics/blairs-company-paid-just-315000-tax-on-income-of-more-than-12m-6287001.html

Immigration does not cause unemployment

There is no link between rising immigration and rising unemployment, independent economists have found – contradicting persistent claims from anti-immigration activists and politicians that an influx of foreign nationals into the UK in recent years has led to more British-born workers on the dole.

The respected National Institute of Economic and Social Research found that there was "no association" between higher immigration and joblessness – even at times of recession or low growth of the sort that Britain is experiencing at the moment.

In fact, the Institute's researchers suggested that the opposite might be the case and that immigration acts as an economic stimulus, pushing total employment levels higher and dole claimant numbers lower than they would otherwise have been.

"Perhaps surprisingly," their economists said, "the interaction between migrant inflows and GDP emerges as positive, indicating that during periods of lower growth, migrant inflows are associated with ... slower [dole] claimant growth than would otherwise have occurred." The researchers did concede that the stimulating effects of migration on the overall labour market at a time of recession are likely to be small.

Read more here: http://www.independent.co.uk/news/uk/home-news/immigration-does-not-cause-unemployment-6287404.html

Thursday 5 January 2012

Robert Peston says our pensions still "gold plated"!

The increase in the normal retirement age from 60 to 67 for public sector workers has not led to significant savings in the cost of public-sector pensions for taxpayers, a leading pensions consultant calculates. (on BBC News today)

Analysis by John Ralfe shows that the improvements in the benefits given to civil servants, teachers and healthworkers at the higher retirement age offset the reduction in costs for the Exchequer from forcing them to work an extra seven years.

"The total cost of the more generous but later pension is the same as the cost of the current less generous but earlier pension", Mr Ralfe says. This doesn't meant there have been no savings at all from the contentious pension reforms pushed through by the coalition government.

Separate reforms to force millions of public sector workers to pay an additional 3.2% of salaries towards their pensions and to switch the uprating of pensions from RPI inflation to the normally lower CPI measure of inflation are expected to significantly reduce the long-term cost of public-sector pensions.

But those reforms were already forced through before the strike by public employees in the autumn; they were not seen as the major source of acrimony between ministers and trade unions.

Complicated calculations

It was the lifting of the pensionable age and complicated changes to the way that pension entitlements are earned that was at the centre of the industrial dispute.

Mr Ralfe calculates that the new cost for taxpayers of pensions is 31% of a typical teacher's salary, 32% of an NHS employee's salary and 26% of a civil servant's salary - compared with 31% across the board before the reforms.

On that basis, he says the pensions are as generous as they were before, and significantly more generous than almost any pension available in the private sector.
For teachers, health workers and civil servants on average or lower salaries, there's likely to be a significant boost in the pensions they receive in retirement - though they may object to having to work seven extra years for that bigger pension.

The important point is that the rate at which pensions are accrued - the rate at which benefits are earned - has been improved by the reforms.

The numbers

Before the changes, which were finally agreed before Christmas, public-sector workers accrued pension entitlements at the rate of 1/80 of salary per annum, plus a cash lump sum on retirement of 3/80 of salary, which was equivalent to an accrual rate of 1/70.

For teachers the new accrual rate is 1/57 of salary per annum, for healthworkers it is 1/54 and for civil servants it is 1/44 - which is significantly more generous than the old arrangements.
That said, it's no longer the final salary which determines the pension paid in retirement.

Instead, the accrual rate applies to existing salary and is then uprated by CPI inflation for civil servants or a bit better than that for teachers and NHS staff.

Halving the cost

All of which probably sounds terribly technical and impenetrable. But what it broadly means is that those whose salaries are unlikely to rise very much do relatively better out of the new system than under the older system: the new pensions system is more egalitarian in that sense, with high-flyers scooping lower rewards than in the past, and those on lower salaries doing rather better (especially since the government is sheltering those on lower pay from the increased pension contributions).

I put the analysis to the Treasury, which did not dispute the thrust of Mr Ralfe's analysis - other than to argue that it would be wrong to see the increase in the pensionable age in isolation.
A Treasury official said the reforms had to be seen as a package, and that the increase in employees' contributions and the switch from RPI to CPI uprating would help to halve the cost of public-sector pensions as a share of GDP over the longer term.

Mr Ralfe based his calculations on what a typical 40 year-old public sector worker would expect to receive in pensions in retirement under the older system and under the new system.