The welfare debate and the end of reason

The way in which the entire debate on benefits seems to be taking place entirely outside the realms of logic seems unprecedented, says Alex Andreou.

I am quite frightened. There have always been some unreasonable people in politics. However, the way in which the entire debate on benefits seems to be taking place entirely outside the realms of logic, seems unprecedented. The way in which evidence is openly sneered at, is nothing short of medieval. The End of Reason.

People going to work early in the morning were stopped outside a London tube station and "vox-popped" by Channel 4 News.

"What do you think about the proposed cap on benefits?", they were asked. "If I have to get up and go to work, I don't see why they shouldn't have to", said one person. "I think it's fair," said another. Challenged by the reporter on whether it's fair on someone who has just been made redundant and has been paying tax and NI for years, she added "well, obviously not them".

The debate earlier in the House of Commons displayed equal levels of Daily Mail common sense. A hissing Kris Hopkins MP suggested that unemployment was "a lifestyle choice". Aidan Burley MP - you know, the one that thinks Nazis are an appropriate theme for a party - read out a letter from an unnamed constituent, relating how she had heard from an unnamed friend, that she was claiming five hundred pounds a week in benefits.

Asked about trial schemes today, Chris Grayling - the dude in charge of Justice, no less - said: “The last Government was obsessed with pilots. Sometimes you just have to believe in something and do it.” That's right. None of your namby-pamby, pinko-leftie evidence rubbish. YEAH. We just think of stuff and do it. And, as the last budget proved, then hastily undo it.

And so it goes, the End of Reason.

A national debate, orchestrated from the top down, which cares not a jot for facts or evidence. Facilitated by the poison pumped daily through our television set, which has seeped so deep into our national muscle memory that we are no longer able to distinguish between Jeremy Kyle guests, chosen because they make for good voyeurism, and ordinary decent people. Our reaction as considered as that of a patellar ligament to a doctor's reflex hammer.

So, how do we fight it? Anger may well provide the energy, but it is not the whole answer. Reason, logic, truth are - and have always been - the precision instruments for dissecting hysterical phobias.

The Conservatives will continue to speak the language of fear. It suits them; it is all they know. They released this image yesterday.

Look at that little arrow. You're only getting that now. Look at that BIG ARROW. Someone else is getting that. Look at what all that scrounger waste can win you. Iain, show the contestants what is behind door number 1. Doctors! And behind door number 2? Teachers! And let's open door number 3. A tax cut of ONE HUNDRED AND FIFTY POUNDS!

How exciting. So, what are we getting for sentencing two million innocent children to hunger? Well,  in fact, none of the above. NHS frontline staff numbers are declining, education is being hung, drawn and privatised and the tax burden on the majority of the electorate is higher than when the coalition took over.

But at least my arrow will get bigger, right?

Guess again. Quite contrary to the rhetoric of "making work pay" this measure does absolutely nothing to improve what work pays. As a matter of fact, making the 9 unemployed people chasing every 1 vacancy that much more desperate, is likely to have a deflationary effect on your wages. Your arrow is shrinking.

But at least this will get people back to work - the government keeps saying that. That's true, isn't it?

Wrong again. This bill does not create a single job. Indeed, the IMF recently admitted that cutting of precisely this sort has a disproportionately negative effect on growth. Essentially, by reducing the spending power of people who spend all their income on necessary goods and services (rather than those who squirrel it away in tropical island tax havens), local businesses sell less and the economy contracts.

What's that, Channel-4-News-lady-outside-the-tube-station? You work in a shop? Not for long. Soon, you will get your wish fulfilment. In a way. You won't have to resent those who don't get up to go to work. You will join them; with the added bonus of having the government that made you unemployed call you vermin. It may not be economic growth, but it is an opportunity for personal growth, don't you think?

So, what does it actually do, this bill? The short version: it attempts to plug a hole in the Government's forecasts, which keep getting revised down and down and further down, as if calculated by an over-enthusiastic limbo dancer. Only the savings are small, the hole is massive and their policies (including this one) are making it bigger. So, it's more like throwing a single shrimp into a shark's gaping mouth. Bad news for the shrimp, little effect on your chances of survival.

The added bonus is that nobody seems to be talking about huge multinationals paying no tax in this country, about which everybody seemed to be talking a month ago.

The End of Reason.

Several coalition MPs even suggested a link between rises in tax credits and the financial crisis. "Is there a direct correlation between the time that tax credits started," asked Marcus Jones MP, and "the start of the financial crisis"?

I would love to tell you that Hansard recorded the response: "Which crisis? The global one? The one that started in Iceland in financial institutions, spread to US  financial institutions and eventually reached the financial institutions of the UK? Of course there is no correlation, direct or indirect, you fucking numpty."

Sadly, the response by Alun Cairns MP was: "My Hon. Friend makes an excellent point". Pretty much any point is an excellent point, when you are witnessing the End of Reason.

An estate in Rochdale, named the most deprived area in the UK. Photo: Getty

Greek-born, Alex Andreou has a background in law and economics. He runs the Sturdy Beggars Theatre Company and blogs here You can find him on twitter @sturdyalex

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Should London leave the UK?

Almost 60 per cent of Londoners voted to stay in the EU. Is it time for the city to say good by to Brexit Britain and go it alone?

Amid the shocked dismay of Brexit on Friday morning, there was some small, vindictive consolation to be had from the discomfort of Boris Johnson as he left his handsome home in EU-loving Islington to cat-calls from inflamed north London europhiles. They weren’t alone in their displeasure at the result. Soon, a petition calling for “Londependence” had gathered tens of thousands of names and Sadiq Khan, Johnson’s successor as London mayor, was being urged to declare the capital a separate city-state that would defiantly remain in the EU.

Well, he did have a mandate of a kind: almost 60 per cent of Londoners thought the UK would be Stronger In. It was the largest Remain margin in England – even larger than the hefty one of 14 per cent by which Khan defeated Tory eurosceptic Zac Goldsmith to become mayor in May – and not much smaller than Scotland’s. Khan’s response was to stress the importance of retaining access to the single market and to describe as “crucial” London having an input into the renegotiation of the UK’s relationship with the EU, alongside Scotland and Northern Ireland.

It’s possible to take a dim view of all this. Why should London have a special say in the terms on which the UK withdraws from the EU when it ended up on the wrong side of the people’s will? Calling for London to formally uncouple from the rest of the UK, even as a joke to cheer gloomy Inners up, might be seen as vindicating small-town Outer resentment of the metropolis and its smug elites. In any case, it isn’t going to happen. No, really. There will be no sovereign Greater London nation with its own passport, flag and wraparound border with Home Counties England any time soon.

Imagine the practicalities. Currency wouldn’t be a problem, as the newborn city-state would convert to the euro in a trice, but there would be immediate secessionist agitation in the five London boroughs of 32 that wanted Out: Cheam would assert its historic links with Surrey; stallholders in Romford market would raise the flag of Essex County Council. Then there is the Queen to think about. Plainly, Buckingham Palace could no longer be the HQ of a foreign head of state, but given the monarch’s age would it be fair to turf her out?

Step away from the fun-filled fantasy though, and see that Brexit has underlined just how dependent the UK is on London’s economic power and the case for that power to be protected and even enhanced. Greater London contains 13 per cent of the UK’s population, yet generates 23 per cent of its economic output. Much of the tax raised in London is spent on the rest of the country – 20 per cent by some calculations – largely because it contains more business and higher earners. The capital has long subsidised the rest the UK, just as the EU has funded attempts to regenerate its poorer regions.

Like it or not, foreign capital and foreign labour have been integral to the burgeoning of the “world city” from which even the most europhobic corners of the island nation benefit in terms of public spending. If Leaver mentality outside the capital was partly about resentment of “rich London”, with its bankers and big businesses – handy targets for Nigel Farage – and fuelled by a fear of an alien internationalism London might symbolise, then it may prove to have been sadly self-defeating.

Ensuring that London maintains the economic resilience it has shown since the mid-Nineties must now be a priority for national government, (once it decides to reappear). Pessimists predict a loss of jobs, disinvestment and a decrease in cultural energy. Some have mooted a special post-Brexit deal for the capital that might suit the interests of EU member states too – London’s economy is, after all, larger than that of Denmark, not to mention larger than that of Scotland, Wales and Northern Ireland combined – though what that might be and how that could happen remain obscure.

There is, though, no real barrier to greater devolution of powers to London other than the political will of central government. Allowing more decisions about how taxes raised in the capital are spent in the capital, both at mayoral and borough level, would strengthen the city in terms of managing its own growth, addressing its (often forgotten) poverty and enhancing the skills of its workforce.

Handing down control over the spending of property taxes, as set out in an influential 2013 report by the London Finance Commission set up by Mayor Johnson, would be a logical place to start. Mayor Khan’s manifesto pledged to campaign for strategic powers over further education and health service co-ordination, so that these can be better tailored to London’s needs. Since Brexit, he has underlined the value of London securing greater command of its own destiny.

This isn’t just a London thing, and neither should it be. Plans are already in place for other English cities and city regions to enjoy more autonomy under the auspices of directly elected “metro mayors”, notably for Greater Manchester and Liverpool and its environs. One of the lessons of Brexit for the UK is that many people have felt that decisions about their futures have been taken at too great a distance from them and with too little regard for what they want and how they feel.

That lesson holds for London too – 40 per cent is a large minority. Boris Johnson was an advocate of devolution to London when he was its mayor and secured some, thanks to the more progressive side of Tory localism. If he becomes prime minister, it would be good for London and for the country as a whole if he remembered that.  

Dave Hill writes the Guardian’s On London column. Find him on Twitter as @DaveHill.