Tag: Dominic Raab

About the government’s claims on ‘real wages’ being ‘the highest since 2011’…


(Update: Raab has removed the original Tweet. Good job I took a screenshot of it).

 

Firstly, the graph does not show what Raab is claiming. The graph does show that after 8 years of Conservative government, real wages are lower than when the coalition took office. In fact they are lower now than they were during the Great Global Recession in 2008. This shows an appalling and shameful record.

After the global recession in 2008, consumer prices rose faster than the average wage, so the real value of wages fell. They continued to fall until 2014.

The average real wage is now actually lower than it was ten years ago.

Following the recession in 2008, average wages fell almost consistently in real terms until mid-2014. From 2014 to 2016, inflation was low and wages increased, though they’re still not back to their pre-recession levels. Now, inflation has caught up again, and real wages are levelling off a little.

Analysis by the Office for National Statistics showed that in 2014, average earnings for full-time workers grew by only 0.1%. However, the average earnings of full-time workers who had been in their job for more than a year rose by 4.1%.

So although the drop in average earnings tells us something important about the economy overall, it’s not the same as what’s happened to everybody working in the UK.

For example, the level of wages is different depending on where you live in the UK. No region’s average full-time weekly earnings is above its 2009 level.

Wages are highest in London, and the population there has also seen the biggest falls in earned income. The average full-time employee in London earned £655 a week in 2017; down from £700 in real-terms in 2009.

The smallest fall was seen in Northern Ireland, where in 2017 the average full-time weekly wage was £504 a week, down from £522 in real terms in 2009. 

People working for the public sector, such as in the NHS, state schools or the civil service, have seen pay growth being restricted in recent years as a matter of policy.

Public sector pay has grown more slowly than private sector pay for the past four years – though recently it has started to catch up, as the caps have recently started to be lifted.

But the private sector suffered large falls in pay during the post-recession years. 

To understand changes to peoples’ incomes we need to also consider tax and benefit changes as well.

Working households’ average income after taxes and benefits has fallen in real terms, from £35,100 in 2008/09 to £34,500 in 2016/17. That has been calculated by adding income to cash social security and then subtracting direct tax (e.g. income and council tax) and indirect taxes (e.g. VAT) for households where at least one person earns income from employment or self-employment. But that doesn’t include some losses such as the bedroom tax. 

The poorest fifth of households paid the most, as a proportion of their disposable income, on indirect taxes – 29.7% compared with 14.6% paid by the richest fifth of households.

Furthermore, the effects of taxes and benefits (ETB) data from the Office for National Statistics’s (ONS’s) Living Costs and Food Survey (LCF), are from a small, voluntary sample survey on which these data are calculated which comprises of around just 5,000 private households in the UK.

The ONS say themselves that the sample tends not to include the very poorest and the very wealthiest citizens. That means there is under-reporting at the top and bottom of the income distribution as well as non-response error (see The effects of taxes and benefits upon household income Quality and Methodology Information report for further details of the sources of error.

That is likely to distort the view of the extent of income inequality.

It’s also worth looking at some comparison at an international level, too.

Oh dear.

When citizens use a public service, it’s viewed as a ‘payment in kind’

‘Benefits in kind’ – education and healthcare, for example – are also added to the final amount of income that citizens are estimated to have. However, this distorts the calculation of average income levels. Citizens pay taxes and so contribute towards paying for these services, and the poorest citizens are likeliest to rely on them rather more than the wealthiest citizens.

This means that in effect, poorer citizens using public services appear to be better off than they actually are, since using public services does not increase incomes. In fact the smaller the income that citizens have, the more likely it is that they will need to use public services. That does not make them any wealthier than they are.

Consequently, the ratio of income of the richest fifth to the poorest fifth appears to fall from twelve to one, to five to one. The inclusion of indirect taxes (for example, alcohol duties, Value Added Tax (VAT) and so on) and benefits in kind (for example, education, National Health Service) further reduces this ratio to less than four to one. 

That does not present an accurate picture regarding income distribution. The poorest fifth of households received relatively larger amounts of ‘benefits in kind’ in 2017. This however, is not income. Nor is it a ‘gift’, since most people have paid into the Treasury and contributed council tax towards the services that they may need to use.

It’s almost like charging people twice for public services, which is utterly disgraceful. It would be very interesting to see the calculation of UK income distribution without this political cheat, that makes it look as though the poorest citizens are rather better off than they actually are. 

Finally, its worth remembering that despite their claims, the Conservatives inherited an economy that had escaped the impact of the global crash, and was out of recession by the last quarter of 2009. By 2011, the Conservatives put us back in recession. It’s what Conservatives do. Thatcher and Major both created recession in the UK, as did Cameron’s government. Despite pledging to keep our triple A level international Fitch and Moody credit ratings – another thing the Tories inherited – Obsorne lost them. Then in 2016, the UK was stripped of its last AAA rating as credit agency – Standard & Poor’s –  who warned of the economic, fiscal and constitutional risks the country now faces as a result of the EU referendum result.

The two-notch downgrade came with a warning that S&P could slash its rating again. It described the result of the vote as “a seminal event” that would “lead to a less predictable stable and effective policy framework in the UK”.

Yet the Conservatives claim they are the party of ‘economic competence’. You just have to laugh at that. 

Image result for a big labour boy osborne kittysjones

I’ll leave you with this comment, which made me chuckle:

Update

Wages are still worth a third less in some parts of the country than a decade ago, according to a report. Research by the Trades Union Congress (TUC) found that the average worker has lost £11,800 in real earnings since 2008.

The organisation said that the UK has suffered the worst real wage slump among leading economies

The biggest losses have been in areas including the London borough of Redbridge, Epsom and Waverley in Surrey, Selby in North Yorkshire and Anglesey in north Wales, the studyfound.

Workers have suffered real wage losses ranging from just under £5,000 in the north-east to more than £20,000 in London, said the report.

The TUC general secretary, Frances O’Grady, said: “The government has failed to tackle Britain’s cost-of-living crisis. As a result, millions of families will be worse off this Christmas than a decade ago.

“While pay packets have recovered in most leading economies, wage growth in the UK is stuck in the slow lane.

“Ministers need to wake up and get wages rising faster. This means cranking up the pressure on businesses to pay staff more, especially at a time when many companies are sitting on large profits.”

A government spokesman said: “The UK’s jobs market has never been stronger, employment is at a record high with more people in work in every region of the UK since 2010 and wages are now rising at their fastest in a decade.

“We have cut income tax for 31 million people, and through the national living wage we have helped to deliver the fastest wage growth in 20 years for over two million of the lowest-paid workers.”

Stephen Clarke, senior economic analyst at the Resolution Foundation thinktank, said: “While wages are currently growing at their fastest rate in a decade and employment is at a record high, the sobering big picture is that inflation-adjusted pay is still almost £5,000 a year lower than when Lehman Brothers was still around.

“Stronger wage growth is needed to make 2019 a better year for living standards than this one.”

A change from the government that is utterly conservative with the truth would be a good starting point.


 

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Authoritarian Brexit secretary refuses to give evidence to Parliament

Image result for Dominic Raab refuses to

The Lords European Union Committee has written to Dominic Raab MP, Secretary of State for Exiting the European Union, urging him to engage with Committees in order to facilitate scrutiny of the Withdrawal Agreement and political statement on the future UK-EU relationship.

See:

Lord Boswell, Chair of the Committee, reacted with anger to Raab’s refusal to engage and to behave in a democratically accountable manner. In a letter, he told the Brexit secretary his behaviour was ‘unacceptable.’ 

The former Conservative MP said: “Select committees have a job to do. Lack of engagement from the government, keeping us in the dark, means we can’t do that job.

He also said “Brexit was supposed to be about enhancing the role of parliament, not diminishing it – but that message doesn’t seem to have got through to ministers.”

Background

The Committee wrote the Secretary of State for Exiting the EU on 5 September 2018 inviting him to appear before the Committee as soon as possible after the October European Council, after the Secretary of State gave a Commitment in a letter of the 17 July “to give evidence on a regular basis”.

The Committee was told on Tuesday 23 October that the Secretary of State for Exiting the EU will be unable to attend or give evidence to the Committee until after a deal with the EU has been finalised. The Committee describes this as “unacceptable… [it] inhibits the Committee in fulfilling its obligations in scrutinising the progress of Brexit negotiations”.

The Committee’s letter also called on the Government to ensure that enough time is allowed between an agreement being reached and any ‘Meaningful Vote,’ so that committees can make recommendations to the two Houses. Recent reports suggest that the time allowed for committees to report on the agreement and the ‘political declaration’ on future UK-EU relations could be a little as ten days.

The letter goes on to say “…  it is imperative that both Houses—and the wider public—are able to have an informed debate. This means, among other things, that the Committees of both Houses with responsibility for scrutinising the Brexit negotiations must have an opportunity to report on the text of any agreement ahead of the ‘Meaningful Vote’—in the same way as the AFCO Committee of the European Parliament will have an opportunity to report ahead of any vote in that Parliament.

“We therefore seek your assurance that the Government will allow time for effective
Committee scrutiny of any agreement, ahead of the ‘Meaningful Vote’; and we ask you to setout your plans for engaging with Committees in order to facilitate this scrutiny.”

The Committee requested that Raab make an appearance before the end of November, saying his refusal “flies in the face of the commitment in your letter of 17 July, ‘to give evidence on a regular basis’.”

The Brexit department have been contacted for a comment. 

A little about Dominic Raab

Raab lies on the swivel eyed end of the right wing continuum. In 2017, he was branded “offensive” by then Liberal Democrat leader Tim Farron after saying “the typical user of a food bank is not someone that’s languishing in poverty, it’s someone who has a cash flow problem”. The Office For National Statistics also took issue with Raab’s claims that immigration has caused house prices to rise, demanding that he present data to back up such assertions. A document published by the Ministry of Housing, Communities and Local Government shows that the finding was based on an out-of-date model that had never been intended for this kind of analysis. 

Theresa May herself has previously spoken out against Rabb’s controversial remarks, scorning his categorization of feminists as ‘obnoxious bigots’. In an article in January 2011 on the Politics Homewebsite, Raab argued in favour of transferable paternity leave and against “the equality bandwagon” “pitting men and women against each other”. He argued in favour of a ‘consistent approach’ to sexism against men and women commenting that some feminists were “now amongst the most obnoxious bigots” and it was sexist to blame men for the recession.

He believes that the welfare state should be further reduced and his opposition to human rights and equalities is unremittingly and dangerously authoritarian. 

Raab’s opinions reflect contempt for international human rights frameworks in particular. The EU Charter of rights has not been included in the Withdrawal Bill.

Writing in the Daily Mail on prisoners votes back in 2013, Raab said: “The problem today is that the Strasbourg Court is packed with academics and politically motivated lawyers desperate to foist their ‘progressive’ agenda on the rest of Europe. The Strasbourg judges have long since given up merely interpreting the European Convention – their proper job – and are jealously usurping the power of elected lawmakers in sovereign states to create new law, inventing novel rights along the way.”

And “The Human Rights Act [UK] is bad enough. But, at least it states plainly that our courts only have to ‘take into account’ Strasbourg case-law, rather than slavishly bow to it. Yesterday, the Supreme Court shifted the goal posts, ruling that British courts must comply with Strasbourg rulings unless it involves ‘some truly fundamental principle’, or an ‘egregious oversight or misunderstanding’ of UK law.”

He also said “The wretched Human Rights Act should be replaced with a British Bill of Rights, to insulate us from the judicial onslaught from Strasbourg. And when we renegotiate the UK’s relationship with the European Union, we must shield our democracy from their ambition to impose yet another layer of European human rights law on the long-suffering British public.”

He seems to have completely missed the point of human rights. And scarily, he fails to make the connection between civil rights and democracy. 

 

Related

An introduction to Dominic Raab, the new Brexit sectarian

Government refuse to publish Brexit impact assessment. We need to ask why

The Centre for Social Justice say Brexit is ‘an opportunity’ to introduce private insurance schemes to replace contribution-based social security

European fundamental rights charter to be excluded in the EU withdrawal Bill, including protection from eugenic policy

Brexit is a zero sum neoliberal strategy


 

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An introduction to Dominic Raab, the new Brexit sectarian


Dominic Raab, the hard Brexit Sectarian Secretary  – who has replaced David Davis following his resignation last night – is a hard right libertarian and supports a hard Brexit. He’s been a fiercely loyal pro-Brexit outrider from the backbenches, and made broadcast outings more regularly than some ministers during the general election.

As a staunch neoliberal, he said in 2010 that “positive discrimination is wrong in the same way as negative discrimination. It means people are thinking in terms of social criteria and it is anti-meritocratic.”

It’s likely that May’s decision to appoint a staunch Brexiteer to the role is an olive branch to ever-restive Leave-supporting MPs who could seize on Davis’ resignation as an opportunity to launch a leadership challenge against her.

Raab was a co-founder of Change Britain, effectively a continuity wing of the Vote Leave campaign. Raab is a former lawyer for Linklaters, advising on EU and trade law and an ex-chief of staff to Davis. Linklaters has also hired Hanbury Strategy to provide the law firm with policy advice ‘in connection with the impact of Brexit on their clients’ businesses’. It also employs former foreign secretary William Hague as chair of its international advisory group. Of course, another of Hanbury Strategies’ clients is AggregateIQ Data Services Ltd.

Raab said last year that Brexit offers the UK’s legal sector “enormous” opportunities and that Britain already had a reputation as being a “global centre for business as being the best place to resolve disputes”. The legal industry employs 300,000 people — two-thirds outside London — and revenue generated by legal activities in the UK is £31.5bn, he said, adding that legal expertise is one of Britain’s unique selling points. Advising business on Brexit is certainly a lucrative role.

Raab was speaking at the Policy Exchange in London at the launch of a report by Linklaters, which explores ways of ‘ improving’ Britain’s ‘competitiveness’ after Brexit by ‘enhancing the rule of law’. The report concluded that Brexit ‘creates an opportunity to reinforce the rule of law in Britain’ and to make laws that are clear and ‘manageable’. It says one danger is that the future pressure on the government and parliament’s time after Brexit could result in “hastily drafted and poorly scrutinised laws that unintentionally subvert the rule of law.”

The Linklaters report concludes that Brexit will not allow Britain to change its laws completely but “it will provide a once in a generation opportunity to make material improvements” and says clearer legislation will help provide businesses “with the certainty and fairness they need to invest, employ and transact in the UK.”

The report says after Brexit it will be the responsibility of the UK parliament to enact laws in areas that are currently within the competency of the EU and this opportunity will require “some innovation” on the part of parliament. It urges that parliamentary processes to scrutinise new laws should be simplified and it also urges that the volume of legislation and regulation should be reduced. 

It’s kind of ironic that for all the domestic haggling and wrangling on Brexit, we risk forgetting that internationally, Britain is the place people think of as the place they would most like to come to resolve their disputes. That is a unique comparative advantage for us.” 

Raab went on: “As we seek to minimise legal risk please let’s not cower in a corner afraid of our shadow — Britain is better than that,” adding there were opportunities for post-Brexit Britain to build on its reputation as a centre for ‘legal expertise’. He sees the UK as a haven for businesses who want  a more ‘relaxed’ legal system, presumably, than elsewhere.

Despite his support for a full break with the European Union, in Raab’s constituency, Esher and Walton, citizens voted 58.4 percent to 41.6 percent to remain. He doesn’t like worker’s rights (most Tories don’t, they get in the way of exploitation and profiteering). Raab has links to an extended network of individuals and organisations pushing deregulation and climate science denial. In 2012, he wrote a piece for the Taxpayers’ Alliance demanding the government be transparent about the cost of its climate policies. 

Raab has voted against allowing a right to remain for EU nationals already in living in the UK after Brexit. He has also campaigned to change the UK’s Human Rights Act.

He was also a part of the Leave Means Leave campaign, despite his name being removed from the site recently, which was also supported by some of the UK’s most prominent climate science deniers such as former Tory MP and now Lord Peter Lilley, and Democratic Unionist Party (DUP) MP Sammy Wilson. It was also supported by libertarian Tories calling for deregulations which have previously pushed disinformation on climate change including Jacob Rees-Mogg John Redwood, Christopher Chope and Ian Paisley to name a few. The Labour Party and Trade Unions have expressed concerns about his appointment, as Raab has also advocated scaling the minimum wage back.

Rabb is a co-author of the hard-right ‘Britannia Unchained‘ manifesto in 2012, along with Kwasi Kwarteng, Priti Patel, Chris Skidmore and Liz Truss, who collectively claimed that British workers ‘prefer a lie-in to hard work’ and that British people ‘are amongst the worst idlers in the world’.

Raab is also a keen advocate and supporter of the notorious libertarian Taxpayers’ Alliance, who bleat that rich people have to pay a little back to the society they gained so much from. Back in 2011, Raab proposed, in a pamphlet published by the Centre for Policy Studies entitled ‘Escaping the Strait Jacket’, that should the UK leave the EU this should be seen as an opportunity to slash protections for workers.

Referring to David Cameron’s attempts to renegotiate Britain’s relationship with the EU, at the time, Raab wrote: “This opportunity should be seized, and used to remove some of the obstacles to British business.” 

Paul Blomfield, Labour’s Shadow Brexit Minister, said: “The new Brexit Secretary has long harboured ambitions to slash vital workplace protections and rights, and the Prime Minister has now put him in a position to do so.

“This latest blow for workers comes a few days after the Cabinet failed to rule out a race to the bottom with the EU on crucial employment protection. It’s become abundantly clear once again that this chaotic Tory Government cannot be trusted with people’s rights after Brexit.”

Tim Roache, GMB General Secretary said: “This appointment signals a promotion of a hard right figurehead who has shown contempt for working people in Britain.

“Theresa May has appointed someone who think British workers are lazy and have too many rights and he has already published plans to slash vital rights from the minimum wage to rights for agency workers.

“The hard won rights of UK workers are already under serious threat in the post-Brexit landscape – basic things like not being forced to work 60 hours a week and being able to get home to see your family.

“Dominic Raab’s appointment now poses a direct and immediate threat to working people in Britain.

At a time when we see a Tory back bencher salivating at the prospect of axing the Working Time Directive, the new Brexit Minister needs be clear where he stands on workers’ rights – the public will not accept a Brexit that makes life harder for working people.”

As a campaigning anti-unionist, Raab had also presented an ultimately unsuccessful Ten Minute Rule Bill proposing that emergency service and transport Unions should be required by law to ensure that strike votes receive 50% support of union members. Raab argued that reform was needed to prevent “militant union bosses” holding the “hard working majority” to ransom.

I guess he doesn’t get the whole idea of ‘collective bargaining’, then, unless of course, it involves big business gathering together to lobby the government for labour market deregulation and bigger profits.

In February this year, Raab advertised for an unpaid intern just ahead of a Department for Business, Energy and Industrial Strategy publication, responding to the Taylor review on insecure work. The BEIS report criticised “exploitative unpaid internships” saying “an employer cannot avoid paying someone the minimum wage simply by calling them an ‘intern’ or saying that they are doing an internship.” 

Earlier in the year while he was serving as Housing Minister, Raab courted controversy by claiming that immigration to the United Kingdom had driven up housing prices by as much as 20 percent. Raab’s claims were then challenged by the UK Statistics Authority which asked that he publish the information supporting his allegation. When produced, it transpired that the information he cited was based on modelling long-since considered discredited and out of date, leading to criticism of his performance in his ministerial role. 

In 2015, he voted against explicitly requiring an environmental permit for fracking activities and voted not to ban the exploitation of unconventional petroleum for at least 18 months and not to require a review of the impact of such exploitation on climate change.

In 2011, the self-pitying, privileged white male waged a gender war on feminists, calling them “amongst the most obnoxious bigots”. He said he feels that men get a raw deal ‘from the cradle to the grave’ because of  “anti-male discrimination in rights of maternity/paternity leave”, young boys being “educationally disadvantaged compared to girls”, and because “divorced or separated fathers are systematically ignored by the courts”. Raab clains: “Men work longer hours, die earlier, but retire later than women”.  I guess child-rearing and being burdened with a disproportionate share of household chores, which isn’t salaried, don’t count as ‘work’. 

 

Related

Brexit, law firms, PR, lobbying and the communication ‘dark arts’ political hires


 

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