This Budget is about ideology as much as fiscal responsibility

It was Maggie Thatcher who stole milk from schoolchildren. Now this government will take money from

The Budget showed that, for the Conservatives, the problem facing the country is one of government rather than of the market. The Tories believe that the problem lies with the state, the size of which should be reduced, and not with the banks which collapsed.

That much is clear from how the burden of the Budget will fall: of the £40bn additional fiscal tightening being proposed, it looks as though £13bn will be achieved by raising VAT and £11bn by an attack on welfare. In contrast, £2bn is being raised by the banking levy. This reveals the priorities of this Conservative-led coalition.

The burden of the changes introduced will fall particularly heavily on the poorest and on working people more generally. The Chancellor said that he had a choice between raising income tax or VAT. About £1 of every £7 that poor people spend goes on VAT, while for the rich, the figure is about £1 in every £25. It is highly regressive and that it was increased reflects the right-wing agenda being elaborated by this government.

People have reason to fear other elements of the Budget. It was Margaret Thatcher who stole milk from schoolchildren. Now this government will take money from poorer mothers.

According to the TUC, the announcements made show that poorer mothers will lose about £1,200 a year. This may not affect the 22 millionaires sitting around the cabinet, but it can make a difference to many children and families. Whatever my differences with them, I do not believe people joined the Liberal Democrat party to attack poorer mothers, but that is what this Budget does.

It would not be my priority at this time to go for further fiscal tightening, given the fragility of the economy and the lack of demand elsewhere in the world. This view has been expressed by others, including President Barack Obama in his letter to the G20. The chief economist at KPMG, Andrew Smith, has described the Budget as a "kill or cure" plan, and went on to say:

The aim is to eliminate the structural deficit over this parliament, but it risks choking off the recovery. There is no guarantee that private demand will rebound just because the government retrenches.

Paul Krugman, the Nobel Prize-winning economist, asked how hard it could be to understand that governments can save economies rather than destroy them. Yet, as he said: "politicians seem determined to do the reverse. They're eager to short-change the economy when it needs help."

We are taking a huge risk with the future of our economy. Two million private-sector employees work for companies that are dependent on government contracts. Further damage will inevitably be done to the private sector by cuts aimed at the public sector.

When we look at the performance of the private sector, we see that it, rather than the public sector, has brought about the reduction in GDP, especially in investment. People may not like to use the word, but if there is a strike going on at the moment: an investment strike in the private sector. We can understand why it happened, but nonetheless, £6 of every £10 of the reduction in GDP is down to the decline in private-sector investment.

It is not clear to me how cuts now will suddenly lead to growth in private-sector investment. Furthermore, the Budget shows a decline in public-sector investment from £47bn in 2008-2009 to £21bn by 2014.

The underlying economic philosophy of the Budget is that, by reducing the state, the private sector will flourish. The reverse is true, as we know from J M Keynes and from what happened in the Great Depression of the 1930s. Roosevelt's New Deal rebuilt the American infrastructure and economy. The private sector was able to revive through expenditure, not cuts.

The May election gave no legitimacy for the course the government has set. Inevitably, there will be resistance both in parliament and outside. It is for the Labour Party to reflect carefully on how we respond. It will want to react responsibly, but we should place ourselves alongside people and communities who are resisting the cuts.

Jon Trickett is the Labour Party MP for Hemsworth.

Jon Trickett is the shadow minister without portfolio, Labour deputy chair and MP for Hemsworth.

Steve Garry
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The footie is back. Three weeks in and what have we learned so far?

Barcleys, boots and big names... the Prem is back.

Another season, another reason for making whoopee cushions and giving them to Spurs fans to cheer them up during the long winter afternoons ahead. What have we learned so far?

Big names are vital. Just ask the manager of the Man United shop. The arrival of Schneiderlin and Schweinsteiger has done wonders for the sale of repro tops and they’ve run out of letters. Benedict Cumberbatch, please join Carlisle United. They’re desperate for some extra income.

Beards are still in. The whole Prem is bristling with them, the skinniest, weediest player convinced he’s Andrea Pirlo. Even my young friend and neighbour Ed Miliband has grown a beard, according to his holiday snaps. Sign him.

Boots Not always had my best specs on, but here and abroad I detect a new form of bootee creeping in – slightly higher on the ankle, not heavy-plated as in the old days but very light, probably made from the bums of newborn babies.

Barclays Still driving me mad. Now it’s screaming from the perimeter boards that it’s “Championing the true Spirit of the Game”. What the hell does that mean? Thank God this is its last season as proud sponsor of the Prem.

Pitches Some groundsmen have clearly been on the weeds. How else can you explain the Stoke pitch suddenly having concentric circles, while Southampton and Portsmouth have acquired tartan stripes? Go easy on the mowers, chaps. Footballers find it hard enough to pass in straight lines.

Strips Have you seen the Everton third kit top? Like a cheap market-stall T-shirt, but the colour, my dears, the colour is gorgeous – it’s Thames green. Yes, the very same we painted our front door back in the Seventies. The whole street copied, then le toot middle classes everywhere.

Scott Spedding Which international team do you think he plays for? I switched on the telly to find it was rugby, heard his name and thought, goodo, must be Scotland, come on, Scotland. Turned out to be the England-France game. Hmm, must be a member of that famous Cumbrian family, the Speddings from Mirehouse, where Tennyson imagined King Arthur’s Excalibur coming out the lake. Blow me, Scott Spedding turns out to be a Frenchman. Though he only acquired French citizenship last year, having been born and bred in South Africa. What’s in a name, eh?

Footballers are just so last season. Wayne Rooney and Harry Kane can’t score. The really good ones won’t come here – all we get is the crocks, the elderly, the bench-warmers, yet still we look to them to be our saviour. Oh my God, let’s hope we sign Falcao, he’s a genius, will make all the difference, so prayed all the Man United fans. Hold on: Chelsea fans. I’ve forgotten now where he went. They seek him here, they seek him there, is he alive or on the stairs, who feckin’ cares?

John Stones of Everton – brilliant season so far, now he is a genius, the solution to all of Chelsea’s problems, the heir to John Terry, captain of England for decades. Once he gets out of short trousers and learns to tie his own laces . . .

Managers are the real interest. So refreshing to have three young British managers in the Prem – Alex Neil at Norwich (34), Eddie Howe at Bournemouth (37) and that old hand at Swansea, Garry Monk, (36). Young Master Howe looks like a ball boy. Or a tea boy.

Mourinho is, of course, the main attraction. He has given us the best start to any of his seasons on this planet. Can you ever take your eyes off him? That handsome hooded look, that sarcastic sneer, the imperious hand in the air – and in his hair – all those languages, he’s so clearly brilliant, and yet, like many clever people, often lacking in common sense. How could he come down so heavily on Eva Carneiro, his Chelsea doctor? Just because you’re losing? Yes, José has been the best fun so far – plus Chelsea’s poor start. God, please don’t let him fall out with Abramovich. José, we need you.

Hunter Davies is a journalist, broadcaster and profilic author perhaps best known for writing about the Beatles. He is an ardent Tottenham fan and writes a regular column on football for the New Statesman.

This article first appeared in the 27 August 2015 issue of the New Statesman, Isis and the new barbarism