Archive

Posts Tagged ‘Austerity’

Public outcry over Grenfell may ensure prosecutions, but the root causes of public sector indifference are cultural and injustices are destined to continue

July 24, 2017 1 comment

Residents of Kensington and Chelsea are right to be very concerned about the conduct of the local Council in their handling of events leading up to, during and after the Grenfell Tower tragedy. Yet we should all be concerned with the reality sitting beyond and concerning the state of the whole Public Sector, which leaves Grenfell unique only because of the size and obvious impact of this horrific event, which has captured the public imagination for all the wrong reasons.

It would be difficult for anyone not to picture the horror of the event and to at very least attempt to consider just how significant the impact of an experience of this nature would be. But the race to apportion blame and the politicisation of this disaster for purposes which reach way beyond those of helping or supporting the people directly involved are diversionary at best, and belie the indirect culpability which lies at the feet of politicians of all backgrounds and officers alike, who are operating and making decisions within a system which might appear fine beyond without the presence of Austerity, but is otherwise quietly failing us all miserably.

Yes, the criminal inquiry which the Police are now working on may well identify individuals who will be charged and subsequently found guilty of having some kind or level of criminal liability. Just as the Judge-led inquiry into the technical aspects of the event, construction and renovation of Grenfell Tower may identify problems with wider policy which will then be used to inform changes which will be intended to make structural development safer for users.

But as I have written before when then Prime Minister David Cameron was talking up Jail-terms for the individuals responsible for the failures of the Local Council and Public Sector in Rotherham, there are cultural issues present right the way through local government and the public sector which make incidents that continue to disadvantage the public all but inevitable at all levels, and in many ways that people outside of Government may never become aware of.

Did anyone get jailed over Rotherham? Has anything changed since then? Have any of the parliamentary political parties demonstrated even the slightest hint that they are in touch with the greater problems caused not by Austerity alone, which persist far more significantly in the background and way beyond?

No being the answer to these questions is of course a travesty in itself. Yet even worse is the misleading direction that this whole debate will be taken if sound bites and labels such as ‘social murder’ continue to be taken literally by followers of the media who rely on news mediums – rightly or wrongly as it may be – to provide them with an accurate view of what is really going on, when all they are really getting is very little fact and one hell of a distorted view.

If the complexity of the issues which make our public services arguably unfit for purpose in all but name are not understood by the very people who hold the responsibility to lead us at all levels of Government, how can anyone who does not even have the slightest experience of the inner workings of the public sector be expected to have even a remote idea of what is really going on?

If they did, we would surely be now looking for names for a whole range of crimes either carried out or instigated without intent otherwise known criminally as corruption, embezzlement and fraud, to name just a few.

Some might like that idea greatly. But the very regrettable reality is that the problem spanning the public sector is culturally embedded and the result of many issues which to address will take political leadership of a kind that we have long since seen on offer.

Ultimately, an embedded problem of this kind must be addressed by action taken at the very top and this is why I previously asked if the last Prime Minister should himself be the one facing the jail term.

Until there is an acceptance and willingness on the part of politicians from all political parties to address the greater problems which sit behind not only events with the level of notoriety of the Grenfell Tower disaster and Rotherham, but also the ‘unintended’ injustices of all kinds which are visited upon taxpayers daily, we remain destined to have future events of this kind continuing to unfold.

This is at best unjust and it is a very long way from what we should all be able to expect from any form of government which actually works for the people it is supposed to serve.

Explaining the Deficit: Let’s call it the Overspend instead…

December 22, 2014 Leave a comment

Red-HerringYou are probably feeling quite fed up with politics, politicians and all the talk of May 2015. If not, the chances are you may be one of those planning to run in the General Election.

Wherever you look, the Parties are sounding off in what they are calling the ‘long campaign’ which runs from now until April, and the Deficit is something we are already hearing a lot about.

But when a Westminster politician starts talking about Deficit reduction, or making statements that indicate they ‘plan’ to reduce the Deficit to zero by the year XYZ, you may be one of the many people left wondering what they are actually talking about and what it really means.

You might not be sure what the Deficit is. You may not understand the difference between the Deficit and the National Debt. But whatever question you may have, don’t worry. Even MP’s have struggled to explain the difference when they have been asked to do so.

Giving new names to existing products, services or methods of working isn’t a new idea. In fact, it’s not just Westminster politicians who use new names to sell their ideas and many of the new products you buy will just be a re-hash of an old idea using new words to describe something differently; just so it sounds like something better.

Selling is one thing. Misleading us another. The term Deficit is perhaps one of the biggest red herrings that Westminster has created, and especially so when they use it to draw attention away from the spiraling National Debt.

So what is the Deficit?

Perhaps the easiest way to picture the Deficit is to think about the Government as a person. A person who earns money and then spends that money on house-keeping and all the things that it might need.

Where we might run a home, the Government’s house is the whole of the UK.

Where we might spend our money on food, the mortgage or rent, clothes, transport, paying back loans and maybe going out, the Government’s housekeeping bill is public services such as the NHS, the Police, Armed Forces, Education, Transport and Local Government.

Whereas we would do a ‘job’ to earn a salary or perhaps an hourly rate of pay, the Government ‘earns’ its money through Income Tax (PAYE), National Insurance, VAT and all the other types of Taxation which we all pay.

Whilst most of us can only earn what our employer agrees to pay us, every year, the Government sets itself a Budget for all the money it will spend on public services. The Budget should ideally not be more that what the Government has ‘earned’ or will ‘earn’ from Taxes during the year that the money will be spent.

When a Government decides that it wants to spend more in a Budget for a year than it will ‘earn’, it has two choices. The Government can raise Taxes so that it has more income than it did before, or it can borrow on top of what it has earned and ‘overspend’ – even though we are normally told that they are spending within Budget.

The difference, value or balance between what the Government ‘earns’ and what it has planned or does actually spend in its Budget, is what Westminster politicians call the Deficit.

Each Budget Deficit – or the Deficit for that year, is what we would call a loan*.

The Government pays interest on that loan*, and this interest – and the money which has to be paid back each year is then added to the housekeeping bill for the term or lifetime of the loan.

When the outstanding balance of the loan* and interest for the year isn’t paid off, it becomes the National Debt and every unpaid Deficit or overspend for each year is added to this.

Surplus

Another term you may hear used by Westminster politicians in the coming months as one of their ‘aims’ is ‘Budget surplus’ or just ‘surplus’.

A surplus in this sense would be the sum of money left over if the Government did not use all of the money it ‘earned’ from Taxes in a year and then had some left over.

Reaching a surplus would be the only point that the Government could then begin reducing the National Debt.

The Conservative Chancellor, George Osborne is suggesting that this will be achieved by 2020 if the Conservative Party are elected with the majority of seats in Parliament in May. Being in Government with a majority and not as part of a Coalition as they have been since 2010, will allow them to make even more cuts to public services than they have so far and this is how the Conservatives plan to reach a point where they have a surplus.

Whether you support the plans that any of the Political Parties have or not, the fact is that this Coalition Government and the Labour Government before it have both had an annual Deficit or have overspent each and every year for a long time.

We wouldn’t be able or allowed to spend money like this ourselves unless we had savings to fall back on, and neither would the Westminster politicians if they were dealing with their own finances.

 

* The way that the Government ‘borrows’ money is not normally the same as going to a bank and asking for a loan. To borrow money or ‘raise funds’, the Government usually sells bonds, which banks, other financial organizations and sometimes even other Countries buy on the basis that they will get the value of the bond returned to them at the end of the lifetime of the bond – probably 3 or 4 years, and that they will receive a fee or fixed amount of interest on top of that for the period too.

When a bond comes to the end of its lifetime and the Government is unable to pay off the balance or value of that bond and its interest because there is not a Budget surplus, the Government then sells more bonds to cover the cost of doing so.

 Image: Source unknown

 

A General Strike will be little more than terrorism in a sanitised form

The saying ‘everything is relative’ is perhaps the most polite way to tell someone that they are being insular; focused only upon the impacts of a wider issue on themselves, or simply failing to grasp that each and every one of us has a different viewpoint and that they could perhaps do well to look at things a different way.

Whilst the possibility has been grumbling in the background for some time, this week has seen the first clear indication that the Unite Union is seeking to take a lead in initiating a General Strike, of the like this Country has not witnessed since 1926. But is this throw-back to an age when Unions may have still possessed some form of genuine purpose actually going to help anybody?

The excuse given for a level of action which is more likely to destroy support for Union Members rather than be of any benefit to it, is of course the measures of ‘austerity’ that the Coalition Government has apparently been taking. It is indeed no secret that these measures are resulting in the loss of jobs and Benefits; but it has also brought an end to the seemingly ceaseless momentum behind enhancement of conditions for professions which are most likely to yield Union Membership.

Even as a former business owner and politician elected on a Conservative ‘ticket’, I myself can see that there was a time when the rights and welfare of workers needed much greater consideration so that exploitation became the exception, rather than a rule in any sense at all.

But we live in very different times and the rights, conditions and systems of support which now exist at every level of business and Government for staff are already far beyond that which the Strikers of the Twenties would have ever dared to have imagined – even in their wildest dreams.

Few businesses would survive today for very long without paying wages that the market can sensibly sustain, or by providing conditions which do not genuinely reflect the value of any role within a business. Therefore, the question that we should now be asking is not whether business and Government should be forcefully coerced into paying more money in wages because of the threat of strike action from Unions, but rather if we as a Nation are already overburdened with Legislation affecting employers and their ability to create new jobs?

I consider myself as being fortunate to know and socialise with people from all walks of life and count many of them as friends. However, it has become increasingly clear that nobody has been insulated against the affects of our age of ‘austerity’, which itself has far more to do with the spiralling rises in the true cost of living for us all, rather than it does the efforts of a lacklustre Government tinkering around the edges of policy, covering cuts with band-aids when the breaks in our whole Society are so very much more profound.

Ironically, it is the very same failure on the part of Politicians to consider the full impact and self-serving nature of their actions (or lack of them) upon others and ultimately themselves that the Unions are now displaying – even by just talking-up the potential of a General Strike. Sadly, the similarities do not end there.

The horrible truth in all this is that neither the Government nor the Unions hold any genuine level of moral currency either in the way that our times of economic hardship have come into being, or by how either would act in their contributions to ultimately attempt to resolve it.

No group that is politically motivated, other than one which is truly and comprehensively people-centric will ever be ethically and morally sound. Until that time, the Unions would do well to remember that even the poorest of our Governments have been elected democratically and by majority votes.

However frustrated any of us feel, there are many more people suffering financial hardship beyond the realms of just those with Union Membership and there are far more appropriate and reasoned pathways to bring about the change that we all now need.

%d bloggers like this: