Thursday 16 September 2010

The cuts....

Well, we all knew it was coming sooner or later; news on the cuts. We get the full picture on 20 October. Details have been flowing out since the June budget, definite Government plans, so we've been told. These, and then non-stop speculation and conjecture from the written press and broadcast media outlets.

I've been expecting grim news for ages but that didn't stop me being furious on seeing George Osborne's pasty face on the BBC six o'clock news Thursday evening (9 September). He was telling us about an extra £4 billion in cuts to the welfare budget - I was seething. And then there's the look of utter distaste on his face as he patiently explains to the interviewer (Nick Robinson) why this situation just "cannot be allowed to continue". Apparently, he didn't even have the good manners to inform Ian Duncan Smith of what he was going to say. (Bear in mind that it's Duncan Smith's department that his latest announcement affects.)

He's making £4 billion in further cuts to welfare, in addition to the £11 billion announced in the June Budget. These are huge sums of money to cut from the poorest sector of our society.

The dole office always gives you a sheet of A4 saying "we have worked out how much money the law says you need to live on" so how come we all of a sudden need less? Is this bloke for real? How would some millionaire posh-boy have the faintest idea what it's like to get by on benefit? And then he's got the brass neck to say we're making a lifestyle choice!

Sure I can credit that some people will steer clear of shitty jobs being paid the minimum wage - it's a living wage that people need. In London the minimum wage is £5.80 per hour. The Living Wage Campaign have suggested £7.85. This has been set by the Greater London Authority. Were one to work a 40-hour week, the difference that makes to one's weekly pay is £82 gross.

It's just a fallacy that the feckless workshy have somehow bankrupted the country so therefore we must somehow claw back the money from them to prevent them making this "lifestyle choice".

So what's the Treasury doing to save money? I read in the Standard that they're getting smaller desks, so that they can squeeze more staff in - genius. "This is typical of the sort of savings we are looking for in other departments," a Treasury source told the London paper. In the same paper Nick Clegg further reassures us (Thurs 9-9) there is "no sword of Damocles that's going to come down straight away". This remains to be seen.

On the morning of 10 September it seems there were a few dissenting voices emerging after Mr Osbourne's appearance on the previous evening's news. The DWP said no agreement had been reached. In fact, Ian Duncan Smith was quoted on Newsnight on 15 September as saying he did not recognise the £4 billion cuts. Three Liberal-Democrat MPs crawled out of the woodwork vowing to vote against them and Bob Russell went on record as saying the Chancellor "was unethical". He went on, "it would be ethical to show an equal determination to tackle the cheats who avoid and evade tax".

This all seems a little late in the day, the saying; if you lay down with dogs you get up with fleas seems apt. George Osborne was unrepentant; "the welfare system is broken, we have to accept the welfare bill has got completely out of control."

Now, this statement baffles me. This man clearly has no idea how one goes about claiming benefits. He cannot know how many conditions one has to fulfil and prove umpteen times over to receive any benefit at all. I fail to understand how, when the rules are so stringent for every benefit one applies for, how it can get out of control.

Perhaps the figures are a little unpalatable to the Chancellor, but getting money out of the state in the form of benefits that one is entitled to is no mean feat. I think Mr Money-Bags Osborne should choose his words more carefully. Perhaps the phrase should have been: look this Government really doesn't like giving the state's money to the poor and needy and picking on them is a whole lot easier than getting big business to pay the tax that they owe us when they've got accountants and lawyers and stuff.

Google - a company so huge it has become a verb in the English language - doesn't like paying tax in England. They quite legitimately have managed to base their head office in Dublin specifically for the purpose of avoiding paying tax to the British Government. But I haven't heard George Osbourne on the telly telling us the tax system is broken. Vodafone, another company so proud about its connection to this country they used to sponsor both the English rugby union and cricket national sides, apparently owes £6 billion in tax. Question Time (23rd September) queried what Vince Cable was going to do about this.

The very morning that George Osborne was sticking the boot in to the poor, and the sick, and the elderly - again - there was someone on the Today Programme talking about tax. This person, who requested anonymity, worked for HM Revenues and Customs and was begging the Government to resource their department so that it would be able to do its job. Ie, to collect the tax, maybe not all, but so much more than they were able to at present. They iterated what I have said in my previous blog; that estimates of uncollected tax were upwards of £30 billion. And George Osborne wants £15 billion off the poorest! I only got an O level in Maths in 1981 so perhaps that's why none of this adds up to me.

I'm old enough, and perhaps old school enough, to believe in big government. I'm happy for the public sector to employ lots of taxpayers. It's an illusion that the private sector, (the Tories' beloved free market) is going to fill this upcoming gap in employment figures that will be directly caused by these "essential" cuts. (Let's face it, it's a moot point as to how much and how soon). And it's crass pronouncements like those from the Chancellor that inevitably raise class hackles.

1 comment:

  1. Hi 'In My Shoes', I've noticed that you haven't received any comments in response to your blog yet but for what it's worth, I think you write very well.
    Keep it up.
    FFT

    ReplyDelete