George Osborne: like Fernando Torres, only less effective

While the Chancellor waffled on about how “we are all in this together”, it was announced that the Queen was receiving a 16 per cent boost to her Government grant and the likes of Torres will get a staggering tax break next year. That is a lot of "spare r

 

I must admit some excitement as George Osborne declared “One of your company slogans is a very fitting catchphrase for what I want to talk about” to the assembled crowd of Morrisons employees. I was quite looking forward to discovering precisely how “STOP! Did you get the quiche?” related to our fiscal policy. Imagine my disappointment when the slogan in question turned out to be “Every Penny Matters”.

In a speech hailed by some as the Chancellor’s “man of the people” moment – presumably because he appeared to have gone to sleep Julie Andrews and woken up Dick Van Dyke – he proceeded to outline why his savage attack on the safety net that is our system of welfare was entirely justified. It says everything about this man, that welfare reforms which he resisted at the start of his tenure because of cost – so much so, that Iain Duncan Smith was rumoured to be on the verge of resignation – are now claimed as his own. What changed? They turned out to be quite popular.

According to Osborne, anyone who expresses concern about these reforms is guilty of spouting “ill-informed rubbish” and “shrill, headline-seeking nonsense”. This includes Crisis, Shelter, the National Housing Federation, the Children’s Society, Citizens Advice, Disability Rights UK, Mencap, Scope, the National Autistic Society, the Royal National Institute of Blind People, Disability Alliance and naturally, that shrill cesspit of communism, the Church of England.

“This month, nine out of ten working households will be better off as a result of the changes we are making.” At the risk of being shrill and ill-informed, what about last month? Or next month? What about non-working households, like pensioners? What about the tenth household in Osborne’s carefully chosen equation? How about some figures to support these claims? A head for detailed figures, terrifyingly, does not appear to be the Chancellor’s strong suit.

“In 2010 alone, payments to working age families cost £90bn,” he said. “That means that one in every six pounds of the tax that working people like you pay was going on working age benefits”, he continued. The written version of his speech circulated earlier, on the other hand, claimed that such payments “cost £75bn” and that this represented “one in every seven pounds”. These two versions are not even internally consistent. The first means that the relevant tax take in 2010 was £540bn (90x6). The second suggests it was £525bn (75x7). The man in charge of our economy is making up figures, give or take £15bn pounds. Let’s hope credit rating agencies were not watching too closely.

Not five minutes later, Osborne went on to mount an emotional defence of the reduction of the top rate of tax from 50p to 45p as “an economic essential”. “In a modern global economy,” he explained, “where people can move anywhere in the world, we cannot have a top rate of tax that discourages people from living here.” As always, it is when you take these arguments from the general to the specific, that their true nature is revealed.

Osborne watched Chelsea play Manchester United on Monday. He saw John Terry, Frank Lampard, Fernando Torres, Robin Van Persie, Wayne Rooney and Eden Hazard do their stuff. The combined wages of these six players are a staggering £1,035,000 per week. These six players – on their wages alone, never mind other sources of income – were handed a tax break of roughly £2.5m next year by the very Chancellor applauding them vacuously. That is roughly 110 teachers; it is roughly 120 nurses; it is roughly 15,000 “spare bedroom subsidies”.

And such premiership royalty are in very good company. While the Chancellor waffled on about how “we are all in this together”, it was announced that the Queen was receiving a 16 per cent boost to her Government grant. Not to sound unpatriotic, but being “in this together” would seem to imply we all have to make sacrifices. It is utterly obscene, at a time of economic stagnation during which the state is imposing untold misery on millions of those who can least afford it, for the person at the very top of the pile to be getting a £5m raise.

That is roughly 220 teachers; it is roughly 240 nurses; it is roughly 30,000 “spare bedroom subsidies” in exchange for the extra reward given to the council tenant with the most spare bedrooms in the country.

It seems, every one of my pennies matters; but not theirs. We’re in it, all right. Just not together.

George Osborne. Photograph: Getty Images

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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Jeremy Corbyn is not standing down - 172 people cannot drown out democracy

The Labour Party could right now be exploiting a bitter Conservative leadership contest, writes shadow chancellor John McDonnell. 

The shadow chancellor writes exclusively for The New Statesman amid one of the most turbulent weeks in politics this century.

The “coup” taking place in the Labour Party

The instability from Brexit has extended into the Parliamentary Labour Party with members of the shadow cabinet standing down. I would like to thank all of those who have participated with me for their work.

Frustratingly, this has come at the worst possible time for our country. And at a time in which we our party could have used to reset the economic narrative that the Tories planted in the public during the summer of 2010 when our party was in the midst of a leadership contest.

Our party right now could be exploiting a bitter Conservative leadership contest that’ll probably lead to electing a Tory leader who will be responsible for any economic fallout from Brexit. The Tories have peddled lies over the past six years over the management of our economy and the state of the public finance, which the decision last Thursday is sadly exposing.

I strongly believe that if some colleagues are not careful then they may cause irreparable damage to our party and the country. 

The Labour Party changed last September. Jeremy was elected with the largest mandate of any political leader in the history of our country. Our party’s values of democracy and solidarity seem to be asked of the membership and always met. Sadly not by some members of the PLP. 

There are those in our party who could not come to terms with the fact that a quarter of a million members could clearly see that the our party’s broken election model has lead to two back to back defeats and needed replacing. Like the wisdom of crowds, our membership understands that we cant keep going on doing the same thing electorally and getting the same results.

I believe that we can all still work together, but I feel some MPs need to get off their chest what they have been holding back since last Autumn. Maybe then they will hear the message that our membership sent them.

The truth is that Jeremy is not standing down. In the Labour Party our members are sovereign. There was an election held and a decision made, and 172 people cannot outweigh a quarter of a million others. 

It would risk sending the worst possible message we could send as a party to the electorate - that Labour does not respect the democratic process.

The economics of Brexit

The Leave vote delivered an immense shock to the political system creating great instability. Of immediate concern is the deteriorating economic situation. Credible economic forecasters virtually unanimously warned that leaving the European Union would be an enormous shock to the economy. 

The disagreements centred on the severity of the shock, and the long-term damage done. To that initial shock must be added the realisation that there was no plan made for a post-Brexit Britain. 

George Osborne has not secured the foundations of our economy and the market volatility reflects that missed opportunity. With turmoil continuing, and major employers already threatening redundancies, the immediate task is to stabilise markets and reassure investors and savers that financial institutions remain rock solid. 

The measures announced by Bank of England Governor Mark Carney early on Friday morning, and the later statement from the Chancellor, are to be welcomed and we have requested a briefing under Privy Council rules on the financial authorities’ contingency plans. It is also reassuring that George Osborne has now moved a threatened, post-Brexit austerity Budget until at least the Autumn. 

Nonetheless, with a recession now forecast, any attempt to push further austerity measures in response to the crisis would be an act of exceptional economic folly. The Chancellor’s own fiscal targets have long since been missed and simply redoubling the misery of spending cuts and tax rises will not bring them any closer to achievement. 

What is needed in a crisis like this is urgent government action to shore up investment, already falling before the vote. Shovel-ready projects should be brought forward, creating jobs and focused on beginning to rebuild those parts of the country currently most deprived – and where the vote to Leave was strongest. As a country we will get through this crisis, and we will do so when we no longer tolerate a situation in which too many of our people are excluded from even the chance of prosperity.

The referendum result

I have been in consultation with many economist, trade union and business leaders since the early hours of the morning when we learnt the result. I hope to give a speech this Friday going into further details of Labour’s economic response, but the result last Thursday came as a blow to many of us in the Labour Party.

All wings of the Labour movement fought hard, and two-thirds of our voters swung to Remain – the same as the SNP, and far more than the Tories, who split 60:40 for Leave. 

Labour will now be fighting to ensure whatever negotiations now take place, and whatever proposals the government chooses to bring forward, will maintain hard-won protections for working people in this country.

The new Labour leadership inherited the Labour In campaign last year. Obviously as with any campaign we will now have to reassess, but the hard work of the staff who worked on the campaign cannot be questioned. They did a fantastic job. 

Jeremy Corbyn also managed to help get out a larger number of our voters than the other main Westminster leaders across the country. 

But the sad truth is that we lost regardless. We need to learn lessons of the referendum and the General Election campaigns, and question whether the way we campaign as a party needs to be changed. 

It is clear that we cannot fight the next election using the same outdated practises and policies that were in place at the last two general elections, and the recent referendum. 

We cannot continue to do the same things in the same ways and get the same results. Those people who need a Labour government the most cannot afford it.


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