Tag: IFS

Conservatives in disarray as Osborne signals raid on Duncan Smith’s Universal Credit funds

Chancellor George Osborne

George Osborne and Iain Duncan Smith have clashed over the chancellor’s plans to soften the impact of tax credit cuts by raiding the budget for Universal Credit.

The Centre for Social Justice (CSJ), which was founded by Iain Duncan Smith, insists that the Chancellor could use this month’s Autumn Statement to ease the impact of the controversial changes without risking his drive for a budget surplus.

In a critical report, the thinktank warned against taking money from Duncan Smith’s flagship Universal Credit scheme to sweeten the tax credit pill. Duncan Smith said that he’s concerned that the raid will serve to “undermine people’s incentive to work.”

The CSJ said in their report that the UC reforms meant by 2020 only 9% of those currently getting tax credits would still be receiving them.

Instead, it was suggested that the Government could “help people to work more hours” or introduce a transitional fund for those hardest hit.

But Osborne is nonetheless preparing to fund plans to soften the impact of tax credit cuts by making people claiming Universal Credit forgo as much as 75p of every extra pound they earn. At present Universal Credit recipients lose 65p for every extra pound they earn. Osborne is thought to be examining plans to increase the figure, known as the “taper”, to 75p.

The most expensive course of action would be to only impose the tax credit cuts on new claimants – but the authors note that it would have the “least social and political cost”.

The chief executive of the Centre for Social Justice, Baroness Stroud, who is a former special adviser to the Work and Pensions Secretary said:

“There are no easy choices, but these are the options the Chancellor has. What he should not do is raid Universal Credit to pay for any transitional changes or he will be recreating the same problem there.

“The projected savings through changes to tax credits is £4.4 billion, the Government plans to turn a surplus of £10 billion in 2019-20 and of 11.6 billion in 2020-21.

“Why have a surplus if we can’t protect those on the lowest pay, doing the right thing by taking work?

“The Chancellor can protect these workers and have a surplus by 2020.

“This Government is set to achieve its historic aim to make sure work always pays more than welfare, we shouldn’t put that at risk.”

Paul Johnson, the Director of the respected Institute for Fiscal Studies, questioned whether the move would raise enough to limit the impact of tax credits. He said: “If you are also increasing the taper rate then you are losing quite a lot of the key design of Universal Credit.”

Both the Treasury and the Deparment for Work and Pensions have declined to comment, but Conservative Tim Montgomerie, a columnist for The Times and founder of the Conservative Home website, said he believed George Osborne “could be forced to resign” over his tax credit omnishambles, and he warned that the chancellor faces a “massive rebellion” from his own party because the policy  is “terrible politics”.

“You cannot fight an election saying you are standing up for hard-working families then you cut benefits for hard-working families,” he said.

Perhaps it is time for the Conservatives to recognise that policies are not an ideological tool designed to ensure the government gets its own way in exercising traditional Tory prejudices towards the working and non-working poor.

However, in fairness there has been a series of right-wing backbenchers that have aired their disquiet at the cuts, although that unease may have be motivated by a pragmatic rather than an any ethical objection. The proposed tax credit cuts do make a mockery of the Tory claims to ensuring that “work always pays,”and presents the public with an incoherent narrative that has now lost any credibilty.

Montgomerie said:

“I don’t think George Osborne will tweak,” he said. “If he does just try to get away with this, he will not just be defeated in the Lords, he will be defeated in the Commons.”

539627_450600381676162_486601053_n (2)Courtesy of Robert Livingstone

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This post was written for Welfare Weekly, which is a socially responsible and ethical news provider, specialising in social welfare related news and opinion.

Osborne’s tax credit cuts omnishambles

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The Chancellor, George Osborne, has recently announced that the Conservatives are a true “workers party”  – claiming that his opponents, the Labour Party, represent the unemployed. But the Conservatives are attempting to re-write history: the Labour Party grew from the Trade Union Movement, and have a strong tradition of supporting worker’s rights and fair wages, and of course the Unions have retained close institutional links with the Labour Party.

Osborne has argued, somewhat absurdly, that reducing tax credit payments to people in low paid jobs would give them “economic security” by reducing the Government’s spending deficit. Labour argues that the richest should pay to cut the deficit, and has identified cuts to tax avoidance and corporate subsidies that could replace cuts to the lowest paid. Osborne’s priorities reflect a traditional Conservative ideology.

As Richard Murphy, from Tax Research UK, points out:

“… the government is forcing the burden of risk bearing onto those least able to bear it in society – that is those with the lowest income. So just as we now know inequality, especially concerning wealth, is rising rapidly, insecurity is also increasing exponentially as risk is being passed from those with the capacity to bear it to those who have not.”

Osborne’s “long-term economic plan” isn’t without controversy. According to many economists, during recessions, the government can stimulate the economy by intentionally running a deficit. The budget deficit is the annual amount the government has to borrow to meet the shortfall between current receipts (tax) and government spending.

Of course, last year, serious doubts were raised regarding Osborne’s deficit targets after the treasury met a significant tax revenue shortfall. Osborne’s obsession with deficit cutting and the Conservative small-state ideology has clearly overlooked the problems created by poor pay and high living costs, which has impacted detrimentally at both a micro and macro level, creating an economic spiral of cuts and stagnation. And it has widened inequality significantly.

In order to keep his promises on further future tax cuts for higher earners, Osborne will invariably make even more cuts to public services, public sector pay and the social security safety net that are so deep they will severely damage both the economy and potentially, the fabric of our society.

The Institute for Fiscal Studies (IFS) have recently criticised George Osborne’s proposed tax credit cuts, because it is “at odds” with wider Conservative stated aims to “support hardworking families”.

Research conducted by the IFS calculated that only around quarter of money take from families through tax credit cuts would be returned by the new National “Living Wage”.

Tax credits are payments made by the Government to people on lower incomes, most of whom are in work.

It was announced today that the Work and Pensions Committee is holding an urgent evidence gathering session on the proposed reforms to the tax credit system on Monday 26 October. The Committee will question representatives of respected independent think tanks that have analysed the impact of the Conservative plans, including the IFS and the Resolution Foundation, who revealed that the planned welfare cuts will lead to an increase of 200,000 working households living in poverty by 2020, and that almost two-thirds of the cut would be borne by the poorest 30 per cent of households, whilst almost none of the cuts will fall upon the richest 40 per cent of households.

A Labour motion calling on the government to rethink the controversial tax credit cuts has been defeated in the Commons. But despite Labour losing the vote today, the debate saw a number of Tory MPs attack the proposed changes, too.

In her maiden speech today, Tory MP Heidi Allen said that her party risks betraying its values, as she voiced her opposition to tax credit cuts.

She suggested ministers were losing sight of the difficulties of working people in their “single-minded determination to achieve a [budget] surplus”. She also said that the tax credit changes do not pass the “family test”, warning that the pace of the reforms is “too hard and too fast”.

The opposition day motion called for a reversal of the policy but MPs voted against it by 317 to 295 – a government majority of just 22. Next week, the vote in the House of Lords was set to be far closer, with the very real possibility that on Monday, Peers would  vote to block the changes. Because the tax credit cut proposals were not in the Tory manifesto, it means they are not bound by the usual Salisbury convention that prevents the peers from blocking election promises.

Also, the tax credit cuts were not included in the Finance Bill, which normally enacts a Budget, and the opposition have used the opportunity to seize on the fact that a Statutory Instrument can be halted by a single House of Lords vote.

Mr Cameron effectively ruled out cutting the benefit before the election, telling a voters Question time that he “rejected” proposals to cut tax credits and did not want to do so.

The cuts are part of £12bn cuts to the social security budget that the Government is to make – the details of which the Conservatives refused to announce before the election.

However, in an unprecedented move, the Conservatives have threatened a constitutional “showdown”, and have refused to engage in dialogue with peers that want kill off the proposed Tory cuts. The government warned the House of Lords it would trigger a full-scale constitutional crisis by pressing ahead with their plans.

Despite the fact that the chancellor faces a growing rebellion against the cuts among Tory MPs, the government told the group of crossbench peers that they also “risked” a renewed push to weaken the powers of the upper house if they refused to back down.

The threats from the government that came because it was facing probable defeat on what is an extremely unpopular reform, even amongst their own party ranks, are truly remarkable, showing a contempt for democratic process and a lack of willingness to engage in transparent dialogue. They came after Lady Meacher, a crossbencher who is the former chair of the East London NHS Trust, threatened to table a “fatal motion” to kill off the cuts to tax credits.

The Tories do not have a majority in the Lords and faced defeat after Labour and the Liberal Democrats said they would support Lady Meacher.

It is understood that Meacher withdrew her fatal motion on Tuesday night and announced she would table a motion calling on the government to deliver a report responding to the warning by the Institute for Fiscal Studies that 3 million families would lose over £1,000 a year.

Meacher told the Guardian today:

My plan at the moment is to put down a motion which will prevent this regulation being approved on Monday, which will require the government to produce a report responding to the IFS analysis and consider mitigating action before bringing it back. This gives time to the House of Commons to go on doing what they are doing. There are Tory MPs horrified by this.

So we are giving the government time to think again, but the word fatal would not be appropriate. This is causing a great deal of consternation at government level and we are trying to find a way through which will ensure that the government revisits these regulations

This move will also allow time for the Work and Pensions Committee to gather further evidence to present to the government, too. The Committee have stated that they will ask representatives questions on the following topics;

  • The impact of the April 2016 tax credit cuts (in isolation and in the context of other welfare measures in the Summer Budget), and the National Living Wage
  • The winners and losers and their characteristics
  • The extent to which the National Living Wage will compensate individuals receiving lower tax credit payments
  • The distributional impact of these measures, individually and combined
  • The scale of the financial gains/losses to households and what influences this
  • The quality of the analysis produced by the Government to support their proposals
  • Other options for achieving savings from the tax credit system that will mitigate the impact on the least well off
  • The implications for work incentives and the Government’s wider objectives in welfare reform

Select Committees work in both Houses of parliament. They check and report on areas ranging from the work of government departments to economic affairs. The results of these inquiries are made public and the Government must respond to their findings.

A select committee is a cross-party group of MPs or Lords given a specific remit to investigate and report back to the House that set it up. Select committees are one of the key ways in which Parliament makes sure the Government is adequately scrutinised, held to account, and has to explain or justify what it is doing or how it is spending taxpayers’ money.

Committee findings are reported to the Commons, printed, and published on the Parliament website. The government then usually has 60 days to respond to the committee’s recommendations.

The Osborne omnishambles is far from done and dusted yet.

555114_453356604733873_1986499794_nPictures courtesy of Robert Livingstone

BBC reports unsurprisingly that Newcastle City Council has been ‘forced’ to plunder welfare funds

Newcastle Civic CentreNewcastle City Council said it would have to stop providing crisis loans to vulnerable residents

The BBC reports that a north-east council says government budget cuts are forcing it to use funding earmarked for vulnerable residents.

Newcastle City Council is using money previously ring-fenced for welfare and crisis loans on other frontline services.

Labour council deputy leader Joyce McCarty said it was facing “really tough choices”.

The government said local councils were best placed to decide priorities.

However, the government is proposing to cut a further £12bn from its annual welfare budget.

Funding for welfare grants and crisis loans was devolved to local control in 2013/14.

Ring-fencing was removed from 2015/16 and the cash now goes into the council’s central budget.

The authority said it could not prioritise discretionary loans over its statutory obligations and would only be able to allocate £120,000, compared with last year’s £229,000, for emergency welfare payments.

The Council had been forced to “make some really, really tough choices between providing frontline services and offering this level of support” to poorer residents, Ms McCarty said.

The Tees Valley Community Foundation, a private charity which helps to support those in need, said they expected more requests for help as a result.

Chief executive Hugh McGouran said he expected to see “a rapid increase” in demand.

“Twelve billion is such an eye watering figure,” he said.

“There’s going to be some significant cuts and I think people will start to turn more and more to charities to try and plug that gap.”

The government claim that nationally-run community care grants and crisis loans had been “poorly targeted and failed to help those most in need”.

“Local authorities now choose how best to support local welfare needs,” a Department for Communities and Local Government spokesman said.

“Additional money had been provided to assist authorities dealing with pressures on local welfare and health and social care,” he said.

However, I believe that this comment is little more than a platitude, intended to blur central government accountabilty. The government know precisely how much money is available to each council. How is it conceivable that local authorities have been provided with additional funding when this is offset with overall steep local authority budget cuts by the same government?

Moreover, the largest cuts have been made in the poorest areas, as the Institute for Fiscal Study (IFS) point out, with the same areas set to lose the most again over the next few years.

During the last term, local authorities in England with communities ranked in the top 20 per cent for health deprivation and disability have faced an average reduction in spending power of £205 per head – 12 times the average for places in the bottom 20 per cent.

Communities ranked in the top fifth for income deprivation affecting older people saw an average reduction in spending power of £229 per head while the average reduction for places in the bottom fifth was just £39.

Perhaps it’s worth noting that those authorities in the most deprived areas tend to be those that are predominantly Labour. This clearly indicates that the government is purposefully targeting Labour councils for dispropotionately higher cuts than Conservative ones.

The Joseph Rowntree Foundation (JRF) also point out that severe cuts to local authority budgets are having a profound effect on the services people receive. The poorest communities and residents are being hardest hit and those least able to cope with service withdrawal are bearing the brunt of the Conservative austerity drive.

It’s inconceivable that this isn’t intentional, targeted austerity on the part of the government.

The shadow Secretary of State for Communities and Local Government, Hilary Benn, said earlier this year that it was “irresponsible and unfair” for the Conservatives to have imposed the biggest reductions in local authority budgets on those communities with the highest numbers of older people living in deprived households.

“The A&E crisis in our NHS, driven in part by insufficient social care provision where it is needed, shows that the Tories can’t be trusted with vitally important health and social care services,” he said.

Sturgeon’s threats demonstrate the anti-democratic, uncooperative inflexibility of nationalism

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Thanks to Dr Éoin Clarke for the infographic

Nicola Sturgeon threatened that she would be prepared to have her MPs vote down a Labour Budget if Ed Miliband was not prepared to cut a deal with the Nationalists at Westminster. Taking part in a live televised debate in Edinburgh with the leaders of the other three main Scottish parties, Ms Sturgeon said she intended to block Labour’s first Budget before negotiating a series of amendments. The Scottish National Party (SNP) leader’s position, revealed just days ahead of Thursday’s general election, was immediately seized upon by the Conservatives as the tedious stuck record styled electioneering “evidence” yet again that a Labour government supported by Ms Sturgeon’s party would result in “absolute chaos” for the country.

Bravo, Nicola Sturgeon. She seems determined to allow a Conservatve victory because of her constant and unqualified attacks on the Labour Party, the issuing of threats like this one, and the perpetuation of nationalist myths aimed at undermining the chance of a Labour victory. It’s bad enough with the Tories’ scaremongering in the press about the prospect of a Labour/Scottish National Party coalition, without Sturgeon fueling it.

I have to add that Cameron’s claim, repeated ad nauseum, that a minority Labour government would be held hostage by the SNP is purely propagandarised tosh. The truth is that the SNP will not in reality be able to hold a minority Labour government hostage unless the Tories allow them to do so, because of course, the Tories also get to vote on things like budgets, defence and so forth, in Parliament.

Scottish Labour leader Jim Murphy said that Sturgeon had already threatened to block his party’s Queen’s Speech.

It’s worth a reminder at this point that crucially, the Scottish National Party’s spending plans imply deeper cuts than Labour’s plans entail over the next five years, as the Institute for Fiscal Studies (IFS) said in a report last month, highlighting a “considerable disconnect” between the nationalists’ rhetoric on austerity and their policies.

“The “anti-austerity rhetoric” of the Scottish National Party is not matched by its detailed spending plans and it would impose deeper cuts than Labour,” said the respected independent fiscal watchdog. The IFS also said that austerity would last longer under the SNP than under the other parties.

Furthermore, the IFS stated: “There is a considerable disconnect between this [SNP] rhetoric and their stated plans for total spending, which imply a lower level of spending by 2019–20 than Labour’s plans.”

This exposes Nicola Sturgeon’s attempt to portray Labour as “Tory-lite” on spending cuts for the outright lie that it is. Sturgeon is no longer credible on every claim she has made, parading the SNP as the only alternative to austerity. In plain language, Carl Emmerson, deputy Director of the IFS said: “There would be more spending cuts under the SNP than under Labour or the Liberal Democrats according to the numbers in the SNP manifesto.”

Shadow Scottish Secretary and Scottish Labour Glasgow East candidate Margaret Curran said: “For all the bombast and the bluster of the SNP it has now been conclusively shown that their anti-austerity posturing is nothing more than a front. Their plans would extend austerity and harm Scotland. And as is always the case the cuts would be felt by the poorest and most vulnerable in our communities. We cannot let that happen.”

She added: “The choice is now simple – continued austerity with the SNP, or an end to Tory austerity with Scottish Labour.”

Nicola Sturgeon claimed to have committed her party to kicking the Tories out of Downing Street. It might be a tad tricky for her to explain to her supporters a Commons vote which could, in theory, allow the Tories back in again. That’s why, it’s was a positive move on Miliband’s part to call her bluff.

And let’s look carefully at the details: Milband has not ruled out the possibility of discussions, consultations, or taking into consideration SNP views when framing future legislation. But he has made it clear he will not be manipulated or threatened.

The Conservative plans to eliminate the deficit implied at least £10bn a year of unspecified cuts to child benefit, tax credits, housing benefit, disability benefits and other working age benefits out of a total budget of about £100bn,” the IFS said in their report

Even if these cuts were achieved, the Tories would have to cut unprotected departments’ budgets by another 18 per cent in real terms, about the same amount again as over the past five years. These cuts are also unspecified by the Conservatives, who have chosen, undemocratically, to hide the details from the electorate. We simply cannot risk another term of devastating Tory cuts to our welfare, public services and the NHS. Especially considering that risk would be founded on misinformation and lies.

Sturgeon’s most recent revelation that the party could bring the Budget of a Labour government down came under fire from Kezia Dugdale, Labour’s deputy leader in Scotland.

Ms Dugdale said: “Many people who have trusted Nicola Sturgeon will be shocked to hear her say she will vote down a ­Labour Budget. A Budget which will bring in measures such as the mansion tax and the bankers’ bonus tax.

“This shows that the people of Scotland should not gamble with the SNP.”

Ed Miliband, a principled internationalist, said: “Nationalism never built a school. It never lifted people out of poverty. It never created a welfare state that healed the sick and protected our most vulnerable. Nationalism cannot create the jobs we need.”

“Labour believes in “the principles of sharing and solidarity”, he added, “that underpin the partnerships of four nations in the modern UK.”

He said: “If we set England against Scotland, if we set any part of our country against another, it does not help working people, it harms working people. It undermines the ability to share resources. It drives down wages and conditions in the race to the bottom.”

Mr Miliband hit back at Ms Sturgeon’s claims that if Labour “fails to work with the SNP,” this would see David Cameron win a second term as Prime Minister. He added that if the Scottish Nationalists win dozens of seats from Labour in Scotland, this would increase Tory chances of being the largest party.

Mr Miliband vowed: “I will never put the Tories into government. I have spent my entire political career fighting them.”

However Nicola Sturgeon has spent most of her career fighting the Labour Party and propagating lies about them. (See A crib sheet of responses to the crib sheet of lies about the Labour Party: Part one and Part Two.)

Sturgeon has suggested that though the SNP could be relied upon to help “lock out” the Tories from power, she would “be inclined,” if voting in England, to endorse the Greens.

Doing the latter, it should be observed, makes achieving the former rather less likely. The more Green MPs there are the fewer Labour MPs there are and the fewer Labour MPs there are the more probable it is that David Cameron somehow stumbles his way into a second term. Sturgeon has some strange logic.

Given that the IFS have said that the true scale of the gap between Labour and the Tories has been further revealed – director Paul Johnson said at the post-Budget briefing: “Our latest estimates suggest that Labour would be able to meet its fiscal targets with no cuts at all after 2015-16,” Sturgeon’s ridiculously unevidenced, pure electioneering claim that Labour are “Tory-lite” – so easily refuted – is just one of the many lies she has told, and gives us good reason not to trust her.

If the SNP remain so aggressively uncompromising, divisive, chancing manipulation instead of cooperation, they will usher in another Tory government at Westminster, and in that event, they will certainly face paying a heavy political price among their supporters – as happened in 1979. Unfortunately, the rest of the UK will also pay a heavy price.

Despite Sturgeon’s undoubted rhetoric skill, Scottish nationalism continues to be what all nationalism always has been: parochial, vicious, ugly, divisive and insular. It’s evident that this has fostered a narrow tribalism, an inability to negotiate, or to build cooperation, and an inability to understand and comprehend the rational, logic and legitimacy of differing opinions, which is very evident in the non-democratic threats that Sturgeon has issued. It’s a pity she doesn’t oppose the Conservatives, rather than attacking the only viable progressive party for the UK. Sturgeon presents a superficial progressive rhetoric with no integrity, and no grounding in reality. The SNP’s self-claimed progressive credentials don’t stand up to scrutiny. When Sturgeon was asked at her manifesto launch to name a redistributive policy enacted by the SNP in Holyrood, she was unable to cite a single example.

Sturgeon simply chats about progressive ideas to advance the regressive goal of separatism. It’s all style, with no real substance at all. Other than a clan SNP nationalist agenda.

For people living in England, NOTHING is more important than getting the Tories out. I suspect that is true for many in Scotland, too.  So please make sure that your vote is a considered, informed and responsible one. If the Tories get another term, we will lose all of the gains of our post-war settlement. We will see our Human Rights Act repealed, (Labour’s legislation, and Cameron has also pledged to leave the European Convention.) That is why we MUST ensure that the Tories don’t get the opportunity, preferably ever again.

The only sure way of defeating the Tories is with a Labour majority.

Related

The real progressive in the leader’s debate is Ed Miliband

SNP appeal to Tory voters: We are just like you

If you think the SNP are a left-wing force, think again – David Clark


 Many thanks to Robert Livingstone for his excellent memes

The BBC expose a chasm between what the Coalition plan to do and what they want to disclose

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“Traditions are not killed by facts” – George Orwell.

The Conservatives are creatures of habit rather than reason. Traditional. That is the why their policies are so stifling and anti-progressive for the majority of us. It’s why Tory policies don’t meet public needs.

There’s always an air of doom and gloom when we have a Tory government, and a largely subdued, depressed, repressed nation, carrying vague and fearful intuitions that something truly catastrophic is just around the corner.

I can remember the anxiety and creeping preternatural fear amongst young people in the eighties, and our transcendent defiance, which we carried like the banners at a Rock Against Racism march, back in the Thatcher era. We always witness the social proliferation of fascist ideals with a Tory government, too. It stems from the finger-pointing divide and rule mantra: it’s them not us, them not us. But history refutes as much as it verifies, and we learned that it’s been the Tories all along.

With a Conservative government, we are always fighting something. Poverty, social injustice: we fight for political recognition of our fundamental rights, which the Tories always circumvent. We fight despair and material hardship, caused by the rising cost of living, low wages, high unemployment and recession that is characteristic of every Tory government.

I think people often mistranslate what that something is. Because Tory rhetoric is all about othering: dividing, atomising of society into bite-sized manageable pieces by amplifying a narrative of sneaking suspicion and hate thy neighbour via the media.

The Tories are and always have been psychocrats. They insidiously intrude into people’s everyday thoughts and try to micro-manage and police them. They use Orwellian-styled rhetoric crowded with words like “market forces”, “meritocracy” “autonomy”, “incentivisation”, “democracy”, “efficient, small state”, and even “freedom”, whilst all the time they are actually extending a brutal, bullying, extremely manipulative, all-pervasive authoritarianism.

The Conservative starting point is control of the media and information. All Conservatives do this, and historically, regardless of which country they govern. (As well as following the hyperlinks (in blue) to British and Canadian media takeovers, also, see the Australian media Tory takeover via Murdoch, from last year: The political empire of the News Corp chairman.)

As we saw earlier this year when the Tories launched an attack on Oxfam, any implied or frank criticism of Conservative policies or discussion of their very often terrible social consequences is stifled, amidst the ludicrous accusations of “politically biased.”

When did concern for poverty and the welfare of citizens become the sole concern of “the left wing”? I think that casually spiteful and dismissive admission of indifference tells us all we need to know about the current government’s priorities. And no amount of right-wing propaganda will hide the fact that poverty and inequality rise under every Tory government. And how is it possible to discuss poverty meaningfully without reference to the policies that cause it? That isn’t “bias”: it’s truthful. Tory policies indicate consistently that when it comes to spending our money, the Tories are very generous towards the wealthy, and worse than parsimonious regarding the rest of us.

Then there are the Tory pre-election promises, all broken and deleted from the internet. And valid criticism of their spinner of Tory yarns and opposition smears, also deleted. This is not a democratic government that values political accountability, nor is it one that is prepared to bear any scrutiny at all.

The Conservatives are attempting to intimidate the BBC (again) into silence regarding its candid commentary regarding the autumn statement made by Osborne, exposing the vast scale of cuts to come for the British public. I’m pleased to see the BBC hitting back, for once, with a robust defence, declaring that: “We’re satisfied our coverage has been fair and balanced and we’ll continue to ask ministers the questions our audience want answered.”

It was BBC assistant political editor Norman Smith’s description of the Office for Budget Responsibility (OBR) response to the autumn statement document as “the book of the doom” and his suggestion that the UK was heading “back to the land of Road to Wigan Pier” that provoked Osborne’s outrage.

But whilst journalists are hardly unknown for hyperbole, Smith certainly can be cleared of this charge. Because many agree that the figures contained in the OBR blue book are truly remarkable and worry-provoking. Many of us have concluded the same, from the OBR and Institute of Fiscal Studies (IFS) to an army of quietly reflective bloggers, who have collectively anticipated this purely ideological outcome for some time.

The BBC are absolutely right to point out to the public that there will be severe social repercussions as a consequence of the scale of cuts that Osborne is planning, especially given that sixty percent of the cuts are yet to come.

The judgements of the OBR, which Osborne set up, and IFS, were at least as damning as the BBC’s, but it’s worth noting that the Chancellor doesn’t publicly attack either report. Because he can’t.

Instead the Conservatives have accused the BBC of “bias” and “systematic exaggeration,”  David Cameron and George Osborne launched an unprecedented attack on the coverage of the Autumn Statement. However, the Conservatives have been openly policing the media for a while. (See: Tories to closely monitor BBC for left wing bias ahead of party conference season and: Once you hear the jackboots, it’s too late.)

Senior Tory MP Andrew Bridgen suggested there was a risk that unless the BBC was “scrupulously fair” in its reporting, it may “drive voters into the arms of Labour”, adding the threat “and may even find its future funding arrangements affected.”

A blatant threat.

On Thursday, Bridgen wrote to Rona Fairhead, the BBC Trust’s chairperson, to complain “about a pattern of systematic exaggeration in the BBC’s reporting of the Autumn Statement”. It’s not his first complaint about alleged bias, either: he whined when the TUC’s senior economist Duncan Weldon became Newsnight’s new economics correspondent earlier this year.

Mr Bridgen said he wanted “to seek assurances that in the remaining six months until the general election your coverage will demonstrate the impartiality and balance that the public, and indeed the BBC charter, demand”.

He added: “Over the last four years the entire nation has pulled together to achieve something many said could not be done: we are now the fastest growing advanced economy in the developed world. The sacrifices and hard work of the British people are ill-served by pessimistic reporting which obscures our economic success with the language of fear and doom.”

I don’t think this is about “impartiality” or what best serves the British people. This is about the Conservatives not getting their own way, so they resort to bullying and  attempts to discredit people who have simply told the truth.

The Chancellor responded angrily to the references to Orwell’s The Road to Wigan Pier in the Today report on BBC Radio 4. He said: “I would have thought the BBC would have learned from the last four years that its totally hyperbolic coverage of spending cuts has not been matched by what has actually happened. I had all that when I was interviewed four years ago and has the world fallen in? No it has not.”

Well, that all depends George. For many people, the only genuine growth we’ve seen is in poverty, inequality, destitution, hunger, suffering and referrals to foodbanks. And deaths. So yes, for growing numbers, their’ world has fallen in.

A BBC spokesman said the BBC was satisfied that the Today programme’s coverage had been “fair and balanced and we gave the Chancellor plenty of opportunity to respond on the programme.”

And the comments were justified because the Office for Budget Responsibility had itself said that nominal government consumption will fall to its lowest level since 1938, the BBC said.

Both the OBR and IFS said in their responses to the autumn statement that Britain has not seen public spending reduced to this level as a proportion of GDP since the grim days of the 1930s.

The public sector spending cuts over the next five years set out in the autumn statement may force a “fundamental re-imagining of the state,” the Institute for Fiscal Studies said in their report.

The warning from the IFS – Britain’s public spending analysts – came only hours after Osborne had angrily rounded on the BBC, accusing its reporters of “totally hyperbolic” reporting about his spending plans and “conjuring up bogus images of the 1930s depression”.

The IFS confirmed that the scale of cuts to departmental budgets and local government would reduce the role of the state to a point where it would have “changed beyond recognition.” The government’s spending watchdog, the Office for Budget Responsibility (OBR), also said yesterday that Osborne’s statement indicated that with the cuts set out in Treasury assumptions, we would see the state reduced to its smallest size relative to GDP for 80 years – since the 1930s.

It was about this era, the Great Depression, against which Orwell set The Road to Wigan Pier, in his account of the bleak living conditions, social injustices, suffering and misery of the working class in the Northwest of England. Norman Smith made an apt comparison.

Scenes from the Jarrow Crusade, 1936, Marchers from Jarrow in the North East of England, walk to London where they will hand in a petition to the House of Commons in a plead for more work as the depression and starvation of the 1930's hits hard

Scenes from the Jarrow Hunger March, 1936, Marchers from Jarrow in the North East of England, walked to London where they handed a petition to the House of Commons in a plead for more work as the depression and starvation of the 1930’s hit hard

Osborne admitted to John Humphrys two hours later, that “difficult” decisions on welfare would include freezing working age benefits for two years and lowering the welfare cap on spending from £26,000 for a family each year on benefits to a maximum of £23,000. But he maintained his glib assurances that the outlook was not as grim as Smith and Humphrys were claiming.

With the cost of living rising sharply year after year, and with the catastrophic consequences of the first wave of welfare “reforms” now clearly evident, it is difficult to envisage how the outlook for the poorest can be deemed anything other than enduringly, grindingly bleak.

If any evidence was needed that the Conservatives fear the political consequences of the cuts to come, the assault on the BBC’s coverage of the autumn statement has certainly provided it. The Conservative responses are strictly about discrediting the BBC as a means of pre-election damage-limitation, and not about the accuracy or “bias” of the reporting, because Osborne had not anticipated that the real consequences of his budget plans would be shared with the public. Most people don’t, after all, read the OBR or IFS forecasts and reports. As it is, Osborne had set out to mislead the public, and was well and truly exposed.

The IFS director, Paul Johnson, said: “The chancellor is right to point out that it has proved possible to implement substantial cuts over this parliament. One cannot just look at the scale of implied cuts going forward and say they are unachievable. But it is surely incumbent upon anyone set on taking the size of the state to its smallest in many generations to tell us what that means.

It’s also worth bearing in mind that Clegg has claimed co-authorship of the budget statement. Clegg’s absence from parliament for the third Wednesday in a row suggests he is farcically trying to distance himself from David Cameron and Osborne in the run-up to the election.

However, he attempted to take credit for the central policies of the statement, including the stamp duty overhaul unveiled by Osborne, when questioned on his LBC 97.3 radio show by Ed Balls, the shadow chancellor.

“Everything in that autumn statement is there because we’ve agreed it and I fully support it,” Clegg said.

The BBC exposed the chasm between what the Tory-led Coalition plan and what they are prepared to disclose and discuss publicly. That’s because of a chasm that exists between Tory ideology and a genuine economic problem-solving approach to policy: Osborne’s autumn budget statement was entirely about political gesturing, designed to divert attention from the sheer extent of social and economic damage  wreaked by five years of strictly ideologically-prompted policy.

This is a Chancellor who rested all of his credibility on paying down the debt and has borrowed more than every Labour government combined.

It must be abundantly clear that the Tory aim of much bigger and destructive cuts after 2015 is not about deficit reduction, but the destruction of the public sector, our services and social safety nets, the undoing of a century of our the hard-won achievements of civil rights movements, and all in favour of greedy, elevated, unbridled market forces.

Conservatism is centred around the preservation of traditional social hierarchy and inequality. Tories see this, erroneously, as an essential element for expanding economic opportunity. But never equal opportunity.

Conservatives think that civilised society requires imposed order, control and clearly defined classes, with each person aware of their rigidly defined “place” in the social order. Conservatism is a gate-keeping exercise geared towards economic discrimination and preventing social mobility for the vast majority.

It is these core beliefs that fuel Osborne’s stubborn adherence to austerity policies, even though it is by now patently obvious that austerity isn’t working for the economy, and for majority of the public. It never will.

942124_214298768721179_2140233912_nThanks to Robert Livingstone for the memes.

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