Home > Coronavirus > Neither the Public or Business can service debt without income. The Chancellor’s Coronavirus ‘help’ is yo-yo politics that flashes in the face but simply doesn’t go that far

Neither the Public or Business can service debt without income. The Chancellor’s Coronavirus ‘help’ is yo-yo politics that flashes in the face but simply doesn’t go that far

img_5330The ineptitude of our politicians is stunning.

The problem that millions of people and businesses right across our country are facing is that their income has already stopped, soon will do, or at best is going to be severely reduced.

So what does the Chancellor do?

He sets them up with a loan.

And that’s for the specific people he has actually identified – certainly a long way from being them all.

We don’t know how long the Coronavirus Crisis will take to complete its course. We don’t know when ‘business as usual’ for any industry or occupation will be able to resume. We certainly don’t know if trading levels for any company will then have even the remotest possibility of returning overnight.

So when faced with losing either your wage or your business losing at least some, if not all of its trade, the last thing you need is a loan – even without interest – that is open ended in its value because you don’t know how long you will need it for; loans that will already be unaffordable to pretty much everyone because it’s not something that you have either made allowance in your monthly domestic outgoings or business income vs expenditure budgeting for.

img_5329For a Chancellor of the Exchequer – and a Conservative one at that – to not understand the implications of what would be no more than a cynical headline-grabbing plan in normal times would itself be very profound. For him to do it at a time of National Crisis, when people and business need genuine help to survive, whatever the duration, and then be able to return to their own normality at some point in the future whenever that might be is profoundly ridiculous at very best.

Whilst the Tory troops are lauding the whole effort and shouting plaudits suggesting that this is the best Chancellor we’ve ever seen, the reality is dawning on many people that the measures he has announced is little more than yo-yo politics, where what appears to be given to those in need at speed will just as quickly return to the hand of the giver on what is a deliberately transparent, yet firmly fixed string.

Regrettably, the approach that the Johnson government is employing in the handling of the Coronavirus crisis is akin to something that would fit right into the conspiracy theorists playbook.

Talk of confining the public to their homes for many months on end; the shutting down of public events, gatherings, and pubs and now a series of financial measures dressed in the rhetoric of being there to help and support us, whilst in its cold and hard reality does anything but.

At best, it all points to a disproportionate level of control being levied upon the public at large by an inept Government living in fear of its own responsibilities and driven by the interests of a very close cadre of financial and business interests that it feels unceasingly obliged to prioritise and serve.

God help us all in a few weeks if the Public become tired of what may well quickly prove be a misdirected overkill and people then take to the streets. Because all of this ineptitude on the part of a Government that thinks that with an 80 seat majority it can do no wrong, really will give currency to the words and actions of those who will prove themselves to be far more dangerous than fruitcakes and loons.

The Government has a level of power and the responsibility to use it at a time of National Crisis like this that it never has before.

We may not be at War. But the circumstances are potentially as severe nonetheless.

This means that the Government and in particular both the Chancellor and the Prime Minister have an incredible opportunity to step beyond the restrictions and shibboleths of so-called peacetime protocols and carry out the real functions of the Offices of State that they are there for.

But to do this they must lead and not be led.

No civil servant, no adviser, no specialist, no expert has the knowledge, training or experience to come up with the comprehensive solutions that will factor in everything that needs to be considered.

They certainly have no way to know if what they do suggest, advise or contribute will turn out being right.

That means listening to ALL of the advisors, specialists and representatives whilst keeping in mind that all of them will have their own bias and self interest in the solutions that they offer. But that even when the solution they offer might appear to work, it wont work for the many if it prioritises financial or other benefits to the few.

In the first instance, to be equitable and to be fair to EVERYONE and not just the usual suspects and same old few, our Leaders MUST instruct the Civil Service, Industry and the Financial Sector what the solution will be and not make it voluntary for them to support or options that they can choose on the basis of it being like advice.

Breaking completely new ground it might be, but if Boris wants to go down in history as the PM who saw this thing through the right way and got the job done, this talk of £300 Billion in the underwriting of loans and grants needs to be scrapped immediately and replaced with radical Standstill Legislation with key points like these addressed fully in clear and unhindered view:

What the Country needs:-

  • People and businesses don’t need debt relief or loans for the duration of the crisis. They need the payments to completely STOP.
  • We ALL need payments for non-essential services and items to STOP.
  • People who have been laid off need surety that their jobs will continue to exist.
  • Interest payments of any kind need to STOP.
  • People who are self-employed or working in the gig economy need the same basic income as everyone else affected too.
  • HMRC needs to go on holiday and open the VAT window for collections to at least 6 months from 3 or even more – WITHOUT levelling interest.
  • People who have been laid off or have had their wages reduced need the surety of a basic income just to pay for food.
  • We need the Government to step in takeover every service that was formally in public hands so that essential utilities and services can be provided to EVERYONE who cannot work, trade or keep going as normal for the duration of the crisis FOR FREE – Not paying the retail bill for every household and business, but by taking over and underwriting the whole supply chain so that there is no profit taking at any level remaining involved.

What we don’t need:-

  • A Government unable to look beyond the restrictions of what advisors advisors tell it is possible, what it has done, or what history tells us that it can do.
  • The same pockets being lined with profit now during this crisis as they are in normal times

Above all, the solution that will work now and for the future must be applied on a blanket basis.

By taking over and underwriting essential services and ensuring that EVERYONE has at least a basic income that will cover the cost of a weeks food, the Country and everyone not working within it will be in the best place during the crisis to financially survive and then thrive once this terrible chapter has ended and is over.

The benefit for those who continue working in roles like the emergency services and in our hospitals, the benefit in kind will be that they receive a payment holiday whilst they are working. That’s a sensible and fair bonus for doing their bit for community whilst we all do our bit for each other to ensure to survive.

 

images thanks to dreamstime.com

 

 

 

 

 

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