Early in his Autumn Statement to Parliament on 17th November, the Chancellor, Jeremy Hunt, announced two new fiscal rules: “…I also confirm two new fiscal rules. The first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period. The second is that public sector borrowing over … Continue reading Fiscal Rules – A Scam To Justify Austerity — Editorial
National Debt
The Non-Existent UK Fiscal Black Hole— Editorial 2
The story we are being told about UK government finances by virtually every main stream media (MSM) commentator goes something like this. The government wants to spend more than it is raising in taxes. This means that it will have to borrow from the private sector. The private sector may choose not to lend to the government. In … Continue reading The Non-Existent UK Fiscal Black Hole— Editorial 2
The Budget Debate
Discussion of the Budget in Parliament https://hansard.parliament.uk/Commons/2022-11-17/debates/97DB3122-0068-46CD-B026-F757C8DF39AF/details#contribution-7F63EF1C-81E2-485B-8F3E-D9C47C284CB5 The main issue arising from the budget is the one outlined in the editorial: the anti-working class new fiscal rules that limit public spending and favour the private sector. Only one MP refers to this (see below) and he’s not Labour. The other worrying factor is Hunt’s professed admiration for … Continue reading The Budget Debate
The Kwarteng Budget
Kwasi Kwarteng’s Budget Adventure. Dave Gardner Did the then Chancellor of the Exchequer Kwarteng mention the need for extra borrowing when he presented his tax cutting plans to the House of Commons on 23 September? The answer is NO he didn't - although opposition speakers (including Rachel Reeves) did assert that substantial extra borrowing would … Continue reading The Kwarteng Budget
Animal Spirits, Taxing and Borrowing — Editorial
Kwasi Kwarteng is clearly a believer in animal spirits, or more specifically, the animal spirits of the UK private sector. The term ‘animal spirits’ was used by the economist J. M. Keynes to describe the spontaneous forces of vitality that drive human action. Apparently these animal spirits have been held back by too much taxing and … Continue reading Animal Spirits, Taxing and Borrowing — Editorial
Let’s Avoid a 1970s Rerun
The TUC have called for a large demonstration in London on June 18th in the face of the cost of living crisis. “Working people have had enough. Everything’s going up but our wages. Join the trade union movement in London to tell this government: we DEMAND better!” reads the TUC blurb. They are right and a massive … Continue reading Let’s Avoid a 1970s Rerun
On Interest Rates and Mini-Budgets
Interest Rates and Mini-Budgets Martina Seale On May 4th the Bank of England (BoE) decided to raise the Bank interest rate by 0.25% to 1%. The stated purpose of the increase is to help fight inflation. The logic that the BoE is following is really quite simple. Inflation is caused by demand for products being greater that the … Continue reading On Interest Rates and Mini-Budgets
Sanctions and Rubles
Martin Seale The members of NATO have imposed sanctions on Russia following its Special Military Operation in Ukraine which began on 24th February. NATO would clearly like these sanctions to severely damage Russia. It is unlikely that they will for two main reasons. Firstly, Russia is a currency creating state and does not therefore have financial constraints. Secondly, Russia is … Continue reading Sanctions and Rubles
Rishi Sunak’s Financial Statement
Editorial 1 Early on in his dismal Financial Statement Rishi Sunak said: “At a time when the OBR has said that our fiscal headroom could be “wiped out by relatively small changes to the economic outlook,” it is right that the central fiscal judgement I am making today is to meet our fiscal rules with a … Continue reading Rishi Sunak’s Financial Statement
Levelling up or Covering up?
Levelling Up or Covering Up? The government White Paper on levelling up. By Dave Gardner In 2019 the Tories won a general election largely on the basis of capturing seats that have traditionally sent a Labour MP to Westminster. These are for the most part seats in the Midlands and the North of England that … Continue reading Levelling up or Covering up?
How to Pay For It — Q & A
How to Pay for it - 150,000 new council dwelling per year at social rents. By Michal Lerner To win the next general election, Labour must give bold answers to the question ‘How will you pay for it?’. Let us therefore imagine an interview between an interviewer (I) and a member of the Shadow Cabinet (L) and suggest … Continue reading How to Pay For It — Q & A
Labour and Housing
Labour and Housing – Part 6. The financial implications of the Right to Buy scheme By Eamon Dyas The Thatcher legacy that began as practical policies in 1979 and which continues to permeate British politics was based on a strategy consisting of three components. Firstly, the oft-repeated mantra of the need to roll back the … Continue reading Labour and Housing
What Shall I Do Next?
What Am I Going to do Next? Part 12 Where will the money come from? Dave Gardner Funding for universities through student loans: why this is a nonsense In a previous article I noted the inequality in funding between universities and vocational education. Universities get roughly five times as much money per student as do … Continue reading What Shall I Do Next?
Sunak’s Agenda is Labour’s Opportunity
Editorial The party which wins the next general election will be the party which presents to the electorate, in the clearest and most convincing way, a view of the role of the state in the society. No one knows what the position of the Labour Party is on the role and size of the state. Keir … Continue reading Sunak’s Agenda is Labour’s Opportunity
Transformative Socialist Economics
IT'S TIME FOR TRANSFORMATIVE SOCIALIST ECONOMICS: AN OCCASIONAL SHORT READING AND VIEWING GUIDE Michael Murray (1) The problem stated: "The Labour Party believes that a Labour government can only spend what it has levied in taxation, or borrowed from the private sector. But it also wants to be a party of low taxation and low national … Continue reading Transformative Socialist Economics
How to pay for it. The case of Universal Credit
By Michal Lerner To win the next general election, Labour must give bold answers to the question ‘How will you pay for it?’. Let us therefore imagine an interview between an interviewer (I) and a member of the Shadow Cabinet (L) and suggest how the dreaded question should be dealt with in the context of … Continue reading How to pay for it. The case of Universal Credit
Editorial 1 — Labour Must Exploit Tory Divisions
The most important political battle in British politics is currently taking place in the Conservative party. There is, of course, also a political battle taking place in the Labour Party, but it is of a different kind. In the Labour Party, the party machine is being used to suppress the discussion of any radical ideas. In contrast, in … Continue reading Editorial 1 — Labour Must Exploit Tory Divisions
The Levellers — Editorial 1
Keir Starmer repeats, at every opportunity, that his main objective is to win the next general election. This is a welcome change of objective. In 2019 Starmer seemed determined to lose that general election. Labour lost the 2019 general election because they attempted to reverse the result of the 2016 Brexit referendum. Starmer was the main architect of … Continue reading The Levellers — Editorial 1
Labour Affairs 