Cameron's aim is to make it ever harder to challenge unfair cuts

The implications of the PM's plan to abolish equality impact assessments and restrict judicial review.

What lies behind David Cameron's latest bonfire of the regulations? One of the main, if largely unspoken, aims is to allow the government to introduce unfair spending cuts - and to ensure that they can't be challenged. Under equality law, the government is currently required to assess "the likely or actual effects of policies or services on people in respect of disability, gender and racial equality". But in his speech to the CBI's annual conference, Cameron announced that equality impact assessments, established after the Macpherson report into the murder of Stephen Lawrence, would be scrapped on the grounds that since there are "smart people in Whitehall who consider equalities issues while they’re making the policy", we don't need "all this extra tick-box stuff." Thus, ministers will no longer have to prove that they have taken into account the effect of policies on the disabled, women, and ethnic minorities - you'll just have to take their word for it.

In some respects, Cameron's announcement is merely a formalisation of existing practice. Since coming to power, the government has regularly flouted equality law and refused to carry out impact assessments. In August 2010, the Fawcett Society brought a legal challenge against George Osborne's emergency Budget after the government failed to assess whether its measures would increase inequality between women and men. Of the £8bn of cuts announced in the Budget, £5.8bn fell on women.

Earlier this year, the Equality and Human Rights Commission criticised the government for not considering the impact the benefits cap would have on women, the impact cuts to bus fare subsidies would have on disabled people, and the impact the abolition of the Education Maintenance Allowance would have on ethnic minorities (almost half of children from ethnic minorities live in low-income households).

At present, any groups disproportionately effected by government cuts, are able to seek a judicial review (as the Fawcett Society did). But Cameron intends to make it ever harder for them to do so. In his speech today, the PM announced that he would reduce the time limit for people to bring cases, charge more for reviews, and halve the number of possible appeals from four to two.

So, not only has Cameron increased the scope for discriminatory cuts, he has acted pre-emptively to ensure that there's even less we can do about it. As ever, one wonders, where are the Lib Dems?

smart people in Whitehall who consider equalities issues while they're making the policy. We don't need all this extra tick-box stuff.

Read more: http://www.belfasttelegraph.co.uk/news/local-national/uk/cameron-pledge-on-equality-rules-16239455.html#ixzz2CfZZKGdo

smart people in Whitehall who consider equalities issues while they're making the policy. We don't need all this extra tick-box stuff.

Read more: http://www.belfasttelegraph.co.uk/news/local-national/uk/cameron-pledge-on-equality-rules-16239455.html#ixzz2CfZS2EHh

smart people in Whitehall who consider equalities issues while they're making the policy. We don't need all this extra tick-box stuff.

Read more: http://www.belfasttelegraph.co.uk/news/local-national/uk/cameron-pledge-on-equality-rules-16239455.html#ixzz2CfZS2EHh

David Cameron addresses delegates at the annual Confederation of British Industry (CBI) conference. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump