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
budget
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 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
Political speaking before lies and propaganda
Read in this issue of Labour Affairs a speech by Winston Churchill in 1909, on taxing empty property: not only does the speech use arguments the Labour Party could deploy, but it is also a model of plain speaking (as well as witty), in the days when politicians called a spade a spade. [Tax on Capital … Continue reading Political speaking before lies and propaganda
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
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
Ditch Blair’s Legacy
Ditch Blair’s legacy — Editorial Starmer became leader of the Labour Party in May 2020 on the basis of a 10 point program that Jeremy Corbyn would have had little problem supporting. Since becoming leader he has had little to say about his 10 point program and has, instead, concentrated his energy on attacking the left wing … Continue reading Ditch Blair’s Legacy
Quantitative Easing, or “How will you pay for it?’
Parliament Notes QE, or printing money, is capitalism’s cunning plan to overcome economic and financial crises. In the massive economic crisis of the 1930s, the US state financed public works with money it hadn’t ‘earned’ from taxes. The economies of the US and Europe have practised it since to avoid the worst disasters of the 2007/8 financial … Continue reading Quantitative Easing, or “How will you pay for it?’
Parliament Notes – Budget Debate 9 March 2021
Parliament Notes - Budget Debate 9 March 2021 [This is Ed Miliband’s speech against the budget. His standpoint is Ernest Bevin’s speech in 1944 advocating full employment; this is the ‘Bevin test’. “We cannot build private sector success on the back of public sector austerity. The cuts of the last decade have made local services worse, … Continue reading Parliament Notes – Budget Debate 9 March 2021
Editorial – Budget Battle Lines
Editorial Budget Battle Lines The next UK budget is on 3rd March. We don’t know what position Sunak will take on the hugely increased fiscal deficit. Will he return to austerity policies quickly or defer for a year? Certainly the Labour Party response to Sunak’s budget will be an opportunity to clearly separate Labour from the Conservatives. There have … Continue reading Editorial – Budget Battle Lines
Labour Affairs 