Boris gets off the bus

As a bold act of redistribution it is hard to beat. Oh, hang on . . .

Boris Johnson will see out New Year's Eve 2009 convinced that he has made it as cheap as possible. London's official fireworks display, which under the "profligate" Ken Livingstone regime lasted ten whole minutes, will be reduced to a mere seven and a half minutes.

Free rail travel will be scrapped, and Boris will enter 2010 having scrimped several hundred thousand pounds off the mayor's budget.

This is all part of Boris's drive to "ease the burden" of City Hall on taxpayers. However, as Boris counts his pennies, the rest of the capital will wake to the largest set of multimillion-pound fare rises brought in by a London mayor.

Boris will increase single bus fares by 20 per cent, with "hard-pressed families" paying hundreds of pounds more a year. And while the average household has saved just 11p a week from Boris's tax freeze, Boris will take hundreds of millions of pounds extra in fare revenue during his term.

These rises will help close the financial black hole created by the removal of the western extension of the congestion charge, but will also go towards much-needed improvements to the Underground. They will also help fund initiatives such as his bike hire scheme.

But while some of the extra burden may be necessary, it is how Boris has chosen to share the burden that is most revealing.

Boris will protect those Londoners most able to pay by freezing the price of almost all season tickets for the year. Meanwhile, he will raise single bus fares by a third from the level he inherited. Overall, bus users will be hit hardest by the rises.

As a bold act of redistribution, it is hard to beat, with Boris asking those least able to pay to subsidise those most able to pay.

This is reportedly a worry for the Conservative leadership: David Cameron's aides are quoted as saying that Boris is "making us look bad". But although Cameron is keen not to scare off voters before an election, Boris is merely doing what most Conservatives would have expected him to do once in power.

Ken Livingstone famously had a policy of shifting people out of their own vehicles and on to public transport. For a self-proclaimed cycle- and car-loving libertarian, this was always going to be anathema.

To shift the balance, Boris plans to raise fares, halve the size of the congestion charge zone, reduce the level of bus subsidy and pour millions into making London the "electric car capital of the world".

Whether masses of Londoners will ever follow Boris's electric dreams remains to be seen.

But while the mayor can easily afford to take part in his "electric car revolution", for most Londoners the real revolution will be an ever-increasing burden from Boris in fares.

Adam Bienkov is a blogger and journalist covering London politics and the mayoralty.

 

Follow the New Statesman team on Twitter.

Adam Bienkov is a blogger and journalist covering London politics and the Mayoralty. He blogs mostly at AdamBienkov.com

Getty
Show Hide image

By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman