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Pre-Budget report

The key points from this year's crucial pre-Budget report delivered to MPs in the House of Commons.

  • 1530 GMT Alistair Darling is invited by the Speaker to deliver his pre-Budget report.

  • Darling said he wanted to take fair and responsible steps to support people and businesses and put Britain in position to take of advantage of the recovery.

  • He wanted to ensure sound public finances in the medium term to ensure Britain lives within its means

  • The chancellor gave an assessment of the state of the global economy

  • "This is an unprecedented global crisis," he told MPs. The root of the problem was a failure in the global financial system. Restoring financial stability was crucial - and that had to be done internationally

  • Internationally and domestically regulation had to be improved

  • In Britain unemployment was still 2m below the levels of the 1990s when the Tories were in power

  • "We did fix the many roofs that needed fixing - the roofs of hospitals and schools throughout the United Kingdom," Darling said

  • The chancellor said inflation was expected to continue to fall allowing the Bank of England to cut interest rates to a 50 year low

  • Darling then turned to the economic forecasts

  • UK GDP contracted by half a percent in the three months to September. It will contract further next year and output would continue to fall for the first two quarters of 2009 before beginning to recover

  • Britain would have between one and half and two percent growth in 2010, the chancellor predicted

  • The government believed there was a choice - the sink or swim approach [of the Tories] or Labour's way which was to table a package of measures to support people through these difficult times. The pre-Budget report represented a substantial fiscal loosening, Darling said

  • Britain was experiencing significantly lower tax revenues because of the downturn - as was happening in the rest of the world. Tax take on stamp duty alone was down 40 per cent

  • Borrowing would rise to 8 per cent of GDP before falling back down again. By 2016 Britain would be again only borrowing to invest

  • Britain's debt would still be lower than other countries, the chancellor insisted

  • Allowing borrowing to rise was right for Britain

  • Darling said investment in public services would continue

  • £3bn of capital spending for 2010/11 would be brought forward to this year to renovate infrastructure, improve schools and put people people to work

  • The temporary £120 allowance for people who lost out as a result of ending the 10 per cent income tax rate would be made permanent

  • Darling said he would cut VAT from 17.5 per cent to 15 per cent from December 1, 2008 until the beginning of 2010. Equivalent to a 12.5 per cent boost shot in the arm of the economy

  • The chancellor said from there would be an increase in half of a per cent on National Insurance - but the threshold would be raised. No-one earning under £20,000 would pay any more

  • There would be a new higher rate of tax - 45 per cent on those earning more than £150,000

  • Those earning between £100,000 and 140,000 would have their personal allowance reduced, and it would be abolished for those earning more than £140,000

  • There were a number of measures that were targeted at small and medium-sized firms

  • Darling said he was monitoring commitments by banks to ensure they treated businesses fairly

  • The government was offering credit through a small business finance scheme to help with short term cash flow problems

  • Companies would be allowed to offset current losses of up to £50,000 against taxes paid in the past three years - tax would be repaid

  • Air passenger duty would be reformed into a new four band system whereby those travelling further would pay more

  • The chancellor said the most pressing problem for many families was in meeting their energy bills. Unjustified discrepancies in different billing methods would be tackled, said the chancellor

  • The government was going to keep the pressure on energy companies to produce a proportion of their power from renewable sources

  • Steps were being looked at to help ensure the availability of more mortgage products

  • Repossession should be a last resort, families worried about finances should be able to get free debt advice and the chancellor announced a number of measures including new mortgage support for people in work

  • The chancellor also announced new cash to build social housing

  • The chancellor said he would phase in new duty rates for cars

  • In a bid to encourage saving a savings gateway would be set up where the government would add 50p to every £1 saved by low wage earners

  • Pensioners on modest incomes - pension credit would go up from £124 to £130 a week

  • Every pensioner would get a payment of £60 on top of the annual £10 pounds bonus - £70 that would also go to disabled children.

  • Mr Darling finished his statement at 1620

  • Responding Shadow Chancellor George Osborne said Mr Darling was going to double the national debt to £1 trillion an "unexploded tax bombshell". The lie that boom and bust had ended had been comprehensively nailed the Tory politician argued.

    "In the end all Labour chancellors run out of money. All Labour governments bring the country to the verge of bankruptcy," he said

  • Fiscal stimulus only worked when there were strong public finances

  • The pre-Budget report was the greatest failure of public policy in a generation, Osborne said.

  • For the Lib Dems, Vince Cable welcomed some of the chancellor's measures. A serious tax cut concentrated on the low paid was needed. Rather than cutting VAT there should be a cut on income tax for the least well off

  • He added the government was big on rhetoric but not on action

Ben Davies trained as a journalist after taking most of the 1990s off. Prior to joining the New Statesman he spent five years working as a politics reporter for the BBC News website. He lives in North London.
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The age of loneliness

Profound changes in technology, work and community are transforming our ultrasocial species into a population of loners.

Our dominant ideology is based on a lie. A series of lies, in fact, but I’ll focus on just one. This is the claim that we are, above all else, self-interested – that we seek to enhance our own wealth and power with little regard for the impact on others.

Some economists use a term to describe this presumed state of being – Homo economicus, or self-maximising man. The concept was formulated, by J S Mill and others, as a thought experiment. Soon it became a modelling tool. Then it became an ideal. Then it evolved into a description of who we really are.

It could not be further from the truth. To study human behaviour is to become aware of how weird we are. Many species will go to great lengths to help and protect their close kin. One or two will show occasional altruism towards unrelated members of their kind. But no species possesses a capacity for general altruism that is anywhere close to our own.

With the possible exception of naked mole-rats, we have the most social minds of all mammals. These minds evolved as an essential means of survival. Slow, weak, armed with rounded teeth and flimsy nails in a world of fangs and claws and horns and tusks, we survived through co-operation, reciprocity and mutual defence, all of which developed to a remarkable degree.

A review paper in the journal Frontiers in Psychology observes that Homo economicus  might be a reasonable description of chimpanzees. “Outsiders . . . would not expect to receive offers of food or solicitude; rather, they would be fiercely attacked . . . food is shared only under harassment; even mothers will not voluntarily offer novel foods to their own infants unless the infants beg for them.” But it is an unreasonable description of human beings.

How many of your friends, colleagues and neighbours behave like chimpanzees? A few, perhaps. If so, are they respected or reviled? Some people do appear to act as if they have no interests but their own – Philip Green and Mike Ashley strike me as possible examples – but their behaviour ­attracts general revulsion. The news is filled with spectacular instances of human viciousness: although psychopaths are rare, their deeds fill the papers. Daily acts of kindness are seldom reported, because they are everywhere.

Every day, I see people helping others with luggage, offering to cede their place in a queue, giving money to the homeless, setting aside time for others, volunteering for causes that offer no material reward. Alongside these quotidian instances are extreme and stunning cases. I think of my Dutch mother-in-law, whose family took in a six-year-old Jewish boy – a stranger – and hid him in their house for two years during the German occupation of the Netherlands. Had he been discovered, they would all have been sent to a concentration camp.

Studies suggest that altruistic tendencies are innate: from the age of 14 months, children try to help each other, attempting to hand over objects another child can’t reach. At the age of two, they start to share valued possessions. By the time they are three, they begin to protest against other people’s violation of moral norms.

Perhaps because we are told by the media, think tanks and politicians that competition and self-interest are the defining norms of human life, we disastrously mischaracterise the way in which other people behave. A survey commissioned by the Common Cause Foundation reported that 78 per cent of respondents believe others to be more selfish than they really are.

I do not wish to suggest that this mythology of selfishness is the sole or even principal cause of the epidemic of loneliness now sweeping the world. But it is likely to contribute to the plague by breeding suspicion and a sense of threat. It also appears to provide a doctrine of justification for those afflicted by isolation, a doctrine that sees individualism as a higher state of existence than community. Perhaps it is hardly surprising that Britain, the European nation in which neoliberalism is most advanced, is, according to government figures, the loneliness capital of Europe.

There are several possible reasons for the atomisation now suffered by the supremely social mammal. Work, which used to bring us together, now disperses us: many people have neither fixed workplaces nor regular colleagues and regular hours. Our leisure time has undergone a similar transformation: cinema replaced by television, sport by computer games, time with friends by time on Facebook.

Social media seems to cut both ways: it brings us together and sets us apart. It helps us to stay in touch, but also cultivates a tendency that surely enhances other people’s sense of isolation: a determination to persuade your followers that you’re having a great time. FOMO – fear of missing out – seems, at least in my mind, to be closely ­associated with loneliness.

Children’s lives in particular have been transformed: since the 1970s, their unaccompanied home range (in other words, the area they roam without adult supervision) has declined in Britain by almost 90 per cent. Not only does this remove them from contact with the natural world, but it limits their contact with other children. When kids played out on the street or in the woods, they quickly formed their own tribes, learning the social skills that would see them through life.

An ageing population, family and community breakdown, the decline of institutions such as churches and trade unions, the switch from public transport to private, inequality, an alienating ethic of consumerism, the loss of common purpose: all these are likely to contribute to one of the most dangerous epidemics of our time.

Yes, I do mean dangerous. The stress response triggered by loneliness raises blood pressure and impairs the immune system. Loneliness enhances the risk of depression, paranoia, addiction, cognitive decline, dem­entia, heart disease, stroke, viral infection, accidents and suicide. It is as potent a cause of early death as smoking 15 cigarettes a day, and can be twice as deadly as obesity.

Perhaps because we are in thrall to the ideology that helps to cause the problem, we turn to the market to try to solve it. Over the past few weeks, the discovery of a new American profession, the people-walker (taking human beings for walks), has caused a small sensation in the media. In Japan there is a fully fledged market for friendship: you can hire friends by the hour with whom to chat and eat and watch TV; or, more disturbingly, to pose for pictures that you can post on social media. They are rented as mourners at funerals and guests at weddings. A recent article describes how a fake friend was used to replace a sister with whom the bride had fallen out. What would the bride’s mother make of it? No problem: she had been rented, too. In September we learned that similar customs have been followed in Britain for some time: an early foray into business for the Home Secretary, Amber Rudd, involved offering to lease her posh friends to underpopulated weddings.



My own experience fits the current pattern: the high incidence of loneliness suffered by people between the ages of 18 and 34. I have sometimes been lonely before and after that period, but it was during those years that I was most afflicted. The worst episode struck when I returned to Britain after six years working in West Papua, Brazil and East Africa. In those parts I sometimes felt like a ghost, drifting through societies to which I did not belong. I was often socially isolated, but I seldom felt lonely, perhaps because the issues I was investigating were so absorbing and the work so frightening that I was swept along by adrenalin and a sense of purpose.

When I came home, however, I fell into a mineshaft. My university friends, with their proper jobs, expensive mortgages and settled, prematurely aged lives, had become incomprehensible to me, and the life I had been leading seemed incomprehensible to everyone. Though feeling like a ghost abroad was in some ways liberating – a psychic decluttering that permitted an intense process of discovery – feeling like a ghost at home was terrifying. I existed, people acknowledged me, greeted me cordially, but I just could not connect. Wherever I went, I heard my own voice bouncing back at me.

Eventually I made new friends. But I still feel scarred by that time, and fearful that such desolation may recur, particularly in old age. These days, my loneliest moments come immediately after I’ve given a talk, when I’m surrounded by people congratulating me or asking questions. I often experience a falling sensation: their voices seem to recede above my head. I think it arises from the nature of the contact: because I can’t speak to anyone for more than a few seconds, it feels like social media brought to life.

The word “sullen” evolved from the Old French solain, which means “lonely”. Loneliness is associated with an enhanced perception of social threat, so one of its paradoxical consequences is a tendency to shut yourself off from strangers. When I was lonely, I felt like lashing out at the society from which I perceived myself excluded, as if the problem lay with other people. To read any comment thread is, I feel, to witness this tendency: you find people who are plainly making efforts to connect, but who do so by insulting and abusing, alienating the rest of the thread with their evident misanthropy. Perhaps some people really are rugged individualists. But others – especially online – appear to use that persona as a rationale for involuntary isolation.

Whatever the reasons might be, it is as if a spell had been cast on us, transforming this ultrasocial species into a population of loners. Like a parasite enhancing the conditions for its own survival, loneliness impedes its own cure by breeding shame and shyness. The work of groups such as Age UK, Mind, Positive Ageing and the Campaign to End Loneliness is life-saving.

When I first wrote about this subject, and the article went viral, several publishers urged me to write a book on the theme. Three years sitting at my desk, studying isolation: what’s the second prize? But I found another way of working on the issue, a way that engages me with others, rather than removing me. With the brilliant musician Ewan McLennan, I have written a concept album (I wrote the first draft of the lyrics; he refined them and wrote the music). Our aim is to use it to help break the spell, with performances of both music and the spoken word designed to bring people together –which, we hope, will end with a party at the nearest pub.

By itself, our work can make only a tiny contribution to addressing the epidemic. But I hope that, both by helping people to acknowledge it and by using the power of music to create common sentiment, we can at least begin to identify the barriers that separate us from others, and to remember that we are not the selfish, ruthless beings we are told we are.

“Breaking the Spell of Loneliness” by Ewan McLennan and George Monbiot is out now. For a full list of forthcoming gigs visit:

This article first appeared in the 20 October 2016 issue of the New Statesman, Brothers in blood