Monday, June 17, 2024

UK
‘Victory will be short-lived unless Labour fixes broken services with proper funding and public ownership’

The country is broken. NHS waiting lists spiralling out of control. Energy bills rising so fast they’ve sparked an inflation crisis. Rivers and seas full of sewage. Letters undelivered for days. Buses and trains that never turn up. Essential public services and natural monopolies working for a handful of mostly overseas investors.

Since 2010, we’ve lost at least 200 museums, 244 courts and tribunals, 279 school playing fields, 451 homeless services, 600 police stations, 673 public toilets, 750 youth centres, 793 playgrounds, 800 libraries, 926 football pitches, 1086 swimming pools, 1416 SureStart children’s centres, 8000 bus routes and 25,000 NHS beds. And now, our councils are declaring themselves bankrupt.

Labour’s manifesto says it wants to “turn the page decisively on the Conservative ideas that have caused the chaos”. Promisingly, it suggests a “final and total rejection of the toxic idea that economic growth is gifted from the few to the many”. But then weakly it concludes that the Conservatives have failed to “face the future”.

READ MORE: ‘Labour manifesto shows a new centrism – with the state key to driving growth’

Here’s what has happened. Conservative asset stripping, which began 40 years ago, has been turbocharged in the past 14 years of criminal cuts and privatisation. They have sold off and destroyed precious public institutions, handing out crony contracts while ordinary people suffered. Austerity has killed hundreds of thousands. From backdoor PPE deals to allowing record energy profits, government stole from the people it should have served.

There has never been a better time for Labour to tell the truth and set the stage for the next few terms of government. Alongside an honest political reckoning that gives Labour political space, what is needed is serious investment.

But despite that word being mentioned 59 times in the manifesto, very little is promised to reverse drastic cuts. The promise of a National Wealth Fund is good. But zero investment for taking back assets into public ownership, which would save huge amounts of money on shareholder dividends and debt.

Labour public ownership plans almost feel like an accident

The public ownership that Labour has committed to in this manifesto feels almost like an accident.

Yes, rail franchises will be brought into public ownership as they expire. Yes, buses in public control and ownership, following successful experiments in mayoral regions. Yes, Great British Energy will be a newly created publicly owned company. Yes, the manifesto is right to point out that the Conservative party is ideologically opposed to using the role of the state. But it doesn’t offer a coherent alternative plan from Labour.

“Energy prices have risen faster here than in any other country in Western Europe,” it says.

Because of privatisation. Labour could offer fairer and cheaper bills directly to households by buying back British Gas to provide the retail wing of Great British Energy, for around £1 billion. Publicly owned supply is normal in France, Germany, Italy and the US.

“The national grid has become the single biggest obstacle to the deployment of cheap, clean power generation,” it reads.

Because of privatisation. Even this Conservative government has been forced to quietly nationalise part of National Grid for net zero planning.

“Not a single reservoir has been built in the last 30 years.”

Because of privatisation. £78bn has flowed out of England to mostly overseas investors. Labour could bring the country’s largest water company, Thames Water into public hands for free, making it cheaper and quicker to solve the sewage crisis and putting river action groups on the company board.

“Labour will also explore new business and governance models for Royal Mail.”

Good, because privatisation has failed. Buying back 500-year-old Royal Mail would cost very little for huge economic benefits.

Will Labour still embark on a once-in-a-generation insourcing drive?

The manifesto doesn’t mention “the biggest wave of insourcing in a generation”, settling instead for an attack on “wasteful competitive bidding”, management consultants and clawing back pandemic profits.

And although Labour seems to draw a dividing line between insourcing of contracts (which Labour will sometimes promise) and buying back assets (which Starmer and Reeves don’t want to do) even this distinction is not applied consistently.

94% of private contracts in the NHS come up for renewal in what would be Labour’s first term of office. Yet Wes Streeting hasn’t committed to bringing these back into the NHS, despite the wastefulness of outsourcing and Oxford University linking this policy with unnecessary patient deaths.

Streeting insists on emphasising the role of the private sector, which has itself admitted it can’t fix the problem. Britain’s largest private hospital chain treats in a whole year the same number of patients the NHS treats in just 36 hours.

READ MORE: UK general election poll tracker: Daily roundup on how polls look for Labour

Meanwhile an NHS hospital in Ilford has just opened two new operating theatres for treating only waiting list patients – Labour should promise more of this instead.

The situation is too desperate for a middle-of-the-road offering

The situation is far too desperate for a manifesto intended as a middle-of-the-road offering. If Starmer wants Tony Blair-era levels of growth, with things only getting better, it will take direct investment into the public services that make people and communities healthy. And it won’t make sense to let shareholders keep raking in profits.

If all that requires taxing people with fortunes of £10 million or more, Labour should do it. Stick with wealth creation as a goal and call it a multimillionaire tax or decamill tax.

The country is broken. We know who broke it, who benefited, at whose expense. Country first is right. The issues on the doorstep won’t be solved with regulation, timid amounts of funding and legal tweaks. They require well-funded public services, accountable to the public, working for people not profit.

Otherwise, in 2029, voters in towns like Grimsby will be pointing to the same issues — NHS waiting lists, impossible energy bills, sewage in the rivers, the desperate state of the economy. And Labour’s victory will be short lived.


Socialist Health Association warns Labour under-funding risks NHS ‘decline’


Credit: Ascannio/Shutterstock.com

Labour’s caution on tax hikes and borrowing “condemns the NHS to continued fragmentation and decline,”, the party’s affiliated health group has warned.

The Socialist Health Association (SHA) has also voiced concerns about a ‘lack of detail’ in the Labour manifesto on health, but praised some aspects of the policy document.

Labour’s manifesto pledges on health included doubling the number of cancer scanners, training thousands more GPs and midwives and 40,000 more appointments per week to cut waiting times.

Keir Starmer said in his speech launching the manifesto: “We don’t have a magic wand. But what we do have – what this manifesto represents, is a credible long-term plan.

“A plan built on stable foundations, with clear first steps, tough spending rules that will keep taxes and inflation low. NHS waiting times cut – with 40,000 extra appointments every week.”

But an SHA spokesperson said: “The NHS needs investment. There is no way around it. The refusal to raise taxes or borrow combined with the continued commitment to outsourcing condemns the NHS to continued fragmentation and decline.

“It seems from recent research that a high percentage of outsourcing and PFI contracts are due to end during the next five years. We need a commitment to bring this back in house.”

READ MORE: Labour manifesto 2024: What are the party’s NHS and health policies?

The SHA spoke more positively about many of the specific policies in the manifesto, including the pledges to bring down waiting lists, bring in new state-of-the-art scanners, and public health measures to stem rates of smoking, obesity and gambling.

However, other pledges were more luke-warmly received – such as recruiting 8,500 new staff over five years to treat mental health problems in children and adults, which was described as a “very modest proposal”.

They added: “The manifesto is not detailed and is, at times, unclear: is the NHS just a commissioning organisation or is it the provider of healthcare?

“If it buys services from private providers there will be less healthcare to go around because they will take a cut for shareholder profit and they will need to use largely NHS trained staff.

“And we know that the use of outsourced services deepens inequalities.”

READ MORE: ‘The Labour manifesto’s health policies demonstrate little-noticed radicalism’

Chief executive of The King’s Fund Sarah Woolnough also sounded a note of caution.

She said: “New stats released just this morning show the waiting list for planned NHS care has increased on the previous month and now stands at 7.6 million.

“Long waits for care have been brought down before, but it takes time. Labour’s aim to clear the backlog within five years will take real effort and absolute focus, and may mean the big, transformational reforms set out in this manifesto such as healthcare closer to home will be slower to realise.”

Labour was not immediately available for comment.

UK

2024 manifesto versus 1997: ‘There are big similarities, but big differences’

Photo: @Keir_Starmer

Since the first polls of the official election campaign came out earlier this month, there has been talk of Labour repeating its 1997 landslide.

And now we have Labour’s 2024 manifesto, further similarities are in evidence. Like Tony Blair’s 1997 New Labour manifesto, Keir Starmer’s document makes education and health the central policy priorities. Both manifestos promise to be tough on crime, abolish hereditary peers in the House of Lords and devolve more powers to the regions.

There are also some important differences. Chief among these is that 2024 Labour is promising less spending than 1997 Labour, and yet more state intervention. This divergence shows a significant development in the party’s approach to economic growth. It is a welcome departure from the Conservative and New Labour, market-led, neoliberal consensus on economic growth.

Both manifestos promise to improve the quality of education for school children, expand pre-school learning, expand lifelong education, improve pupil-teacher ratios and reform tertiary education. However, Blair promised, in nominal terms, twice as much spending in education in 1997 than Starmer is promising in 2024 (£3 billion against £1.5bn).

Both manifestos promise to invest in the NHS and to cut waiting lists. Both manifestos promise to introduce a living wage. The minimum wage was a Labour electoral promise and they introduced it in 1999. In 2024 Labour is promising to legislate a minimum wage that is a real living wage.

Both manifestos state that Labour are not big spenders, but wise spenders. In both manifestos, the party is very careful to distance itself from its “tax and spend” image.

In both manifestos, the party promises not to raise income tax. As in 1997, the party defends this choice on the grounds that average working families already face a high tax burden. Here, one might also find a similarity between 1997 and 2024 in what the manifestos do not explicitly say.

In 1997, the Labour manifesto attacked the Conservatives for cutting capital gains tax, without making a specific pledge in either direction. In 2024 Starmer and his future chancellor of the exchequer haven’t promised they won’t raise capital gains tax.

Spotting the change

So, in many ways, Starmer has taken Labour back to Tony Blair’s third way social democracy. This is not surprising as he, like his predecessor, is trying to build the winning middle and upper middle class coalition that will bring the party to power.

But I believe the 2024 manifesto does actually contain some radical policy proposals. Blair and New Labour were very much tied to the neoliberal dogma of free markets, where economic growth is primarily driven by the private sector. Housebuilders and investors were facilitated with predictable and favourable tax policies while the government helped them further with its own investments in human capital (education and health).

Starmer’s Labour party goes further. The 2024 Labour manifesto promises to create Great British Energy, a state-owned energy company that will invest in green energy. This is a significant departure from providing incentives to private companies; it is a recognition that the state has a significant, independent role to play in energy transition.

It also promises to create a national wealth fund that will invest in public infrastructure, such as ports and hydrogen technology. Once more, this is a considerably more statist approach to public investment than we have seen in the UK. Both these policy promises depart significantly from the 1997 New Labour manifesto and economic growth plan. They are bolder at endorsing state-led growth initiatives.

Why is it here that divergence with New Labour becomes apparent? There are probably a few reasons, including the failure of the private sector to invest in infrastructure and increase productivity.

But the 2024 Labour manifesto should primarily be understood as representing Labour’s electoral coalition – of working and middle class voters. Yet, unlike in 1997, it is not a coalition solely bound by cheap credit and ever rising asset and property price rises, but by a need for the state to intervene to bring back growth via a centrally planned industrial strategy.

Since the early 1980s and Thather’s right to buy scheme, Conservative and Labour governments, alike, have deregulated the banking and financial sector making mortgages more accessible and cheaper. This credit-led, house price inflation benefits landlords and the better-off middle class and widens inequality.

The unaffordability of housing feeds political polarisation making New Labour’s 1997 coalition hard to repeat. Starmer and Labour are being called upon to offer a new working and middle class coalition that cannot be driven by consumption. It can only be driven by investment, higher skills and higher wages.

It is the ultimate case of a “supply-side” social democratic strategy that aims to reconcile two things – the demand for higher wages and quality of life among the working and middle classes and the fiscal frugality demanded by capital holders and higher income earners.

As political scientist Carles Boix argued in his seminal work, this coalition is best forged through wise investment in human and physical capital and macroeconomic stability. The key questions for Starmer at this stage are whether this coalition is a lasting one, and whether his team can achieve the much sought-after economic growth that will bring this plan to realisation.

This article is republished from The Conversation under a Creative Commons license. Read the original article on the site here.


‘A troubled history: Leaders and their manifestos, from MacDonald to Wilson’



Steven Fielding 
 15th June, 2024
© Allan Warren/CC BY-SA 3.0:

“Labour policy is directed to the creation of a humane and civilised society.” So announced Labour’s Appeal to the Nation, the party’s 1923 manifesto.

This was the one on which it fought the general election that saw Ramsay MacDonald become Prime Minister and form in January 1924 the first Labour government, inaugurating what the party recently described as its Century of Achievement.

A document of little more than 1,000 words, it was very different to Labour’s 23,000- word long manifesto which this week was launched across all media platforms. The 1923 manifesto was a wonderfully vague document with hand-waving references to Labour’s commitment to the scientific organisation of industry, the abolition of slum housing and equality between men and women.

It even concluded with an appeal to voters ‘to oppose the squalid materialism that dominates the world today’. If this suited the windy rhetoric of Labour’s leader the manifesto still promised the party would nationalise the coal, rail and electricity industries as well as impose a wealth tax on fortunes in excess of £5,000 (the equivalent of £400,000 today).

MacDonald signed off on these commitments, which pleased many in his party, expecting to see the return of Stanley Baldwin’s Conservatives to government.

MacDonald saw the manifesto like the Greens do today

Just like the Green Party leadership today he saw the election as a propaganda opportunity, to build up the party vote and win a few more seats. Just like everybody else MacDonald was shocked to find himself, thanks to the vagaries of three-party competition under first past the post, forming a minority administration.

The alacrity with which MacDonald set aside the most eye-catching policies in the manifesto was criticised by the Labour left some of whom urged him to present it in full to the Commons and dare Liberal and Conservative MPs to vote it down.

That, they inevitable would have done, after which the left wanted MacDonald to call another election thinking it would mobilise more support for their idea of socialism.

READ MORE: ‘No surprises, but fear not: Labour manifesto is the start, not the end’

Instead, hoping to demonstrate they could be trusted to hold the reins of government, MacDonald and his Cabinet followed a more cautious course, trying to win support in the Commons for a variety of more modest reforms the most notable of which was the 1924 Housing Act. This provided central government funds to subsidise the building of over half a million council homes until it was repealed in 1933.

The legislation had not even been thought of when the manifesto had been written. As a result of MacDonald’s fast-and-loose attitude to the manifesto Labour increased its vote at the December 1924 election by nearly 25 per cent although it still lost office.

Wilson had no intention of delivering manifesto wealth tax pledge

Since then, Labour leaders coming from opposition into government have had a variable and complicated relationship with their party’s manifesto. At one extreme was Clement Attlee whose government more than lived up to the promises of Let Us Face the Future in 1945 – although much of that programme had already been put into practice during the Second World War.

At the other end of the spectrum was Harold Wilson. Labour’s February 1974 manifesto promised to introduce a wealth tax as part of ‘a fundamental and irreversible shift in the balance of power and wealth in favour of working people and their families’. This Wilson had absolutely no intention of delivering.

READ MORE: ‘Labour manifesto shows a new centrism – with the state key to driving growth’

Like MacDonald, Wilson was taken aback when he found himself unexpectedly at the head of a minority government even though Edward Heath’s Conservatives had won more votes. Even after winning a modest Commons majority in October Wilson set his face against the platform on which he had ostensibly won power.

For this ‘betrayal’ Wilson and his successor Jim Callaghan was not forgiven by the Labour left, which took its revenge after Labour lost in 1979, blaming defeat on the failure of the Parliamentary leadership to live up to the manifesto’s socialist ambition. Labour’s manifesto this time round has been written with the intention of providing Keir Starmer with a relatively ‘serious’ and ‘fully-costed’ programme for government.

Could Labour still opt for a wealth tax?

Evoking Labour’s 1997 manifesto – and not just in how heavily it features pictures of the Labour leader – it falls short of what many in the party would like to see. But it makes concrete if modest commitments, the success of which can subsequently be measured by a sceptical electorate.

There is certainly no talk of a wealth tax this time as part of Starmer’s attempt to avoid any hostages to fortune this side of the election that might still be exploited by the Conservatives and its many allies in the media.

READ MORE: ‘The manifesto’s not perfect, but at the launch you could feel change is coming’

In the eyes of some of the left that’s because Starmer has got in his ‘betrayal’ early by setting aside many of the ten pledges he made to win the leadership in 2020 and abandoning the commitment to spend £28 billion annually on green projects.

It is also a reaction to the much-criticised ‘over-loaded’ 2019 Corbynite manifesto which looked incredible to many of those voters the party wants to recapture in 2024. The one benefit of this under-loaded manifesto is what it promises it will likely do – Labour will be in deep trouble if not – and by under-promising it could over-deliver.

Who knows maybe there will – at long last – be wealth tax of sorts in Rachel Reeves’ first Budget?

Find out more through our wider  2024 Labour party manifesto coverage so far…

OVERVIEW:

Manifesto launch: Highlights, reaction and analysis as it happened

UK
BMA takes apart Rishi Sunak’s claim that strikes are to blame for NHS waiting lists with a single fact

13 June, 2024 

“Rishi Sunak seems confused about his pay dispute with doctors."    



Rishi Sunak is continuing to face a backlash for his claim during the leaders debate on Sky News yesterday that doctors’ strikes were to blame for high NHS waiting lists.

The Prime Minister was forced to admit by Sky’s Beth Rigby yesterday that he had failed on his pledge to reduce the waiting lists.

“Yes it has”, Sunak said about waiting lists rising, however he insisted it was going down, but not before taking a dig at striking NHS doctors.

“It’s now going down, the plan is working, we’ve resolved the industrial action,” Sunak said.

He went on to say: “You had a question from a junior doctor earlier.. I think everyone knows the impact the industrial action has had”.

His answer led to boos from the audience and the backlash to his comments has continued.

The British Medical Association (BMA), has also condemned Sunak, pointing out crucially that waiting lists were already at a record high before any strikes started.

The BMA posted on X: “Rishi Sunak seems confused about his pay dispute with doctors.

“Strikes are NOT to blame for waiting lists, which were already at a record high before any strikes started.

“And junior doctors are NOT the only group in dispute, as he’s already been reminded.”

Basit Mahmood is editor of Left Foot Forward

Leaders Debate: Audience boos Rishi Sunak as he blames striking NHS workers for waiting list rises
12 June, 2024 
Left Foot Forward 

Excruciating exchange as Sunak is confronted over rising NHS waiting lists


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Rishi Sunak was grilled by Beth Rigby about the Tory Party’s dire record on NHS waiting lists and, in an excruciating exchange, he was forced to confront the fact that he failed on his pledge to reduce the waiting lists.

“Yes it has”, Sunak said about waiting lists rising, however he insisted it was going down, but not before taking a dig at striking NHS doctors.

“It’s now going down, the plan is working, we’ve resolved the industrial action,” Sunak said.

He went on to say: “You had a question from a junior doctor earlier.. I think everyone knows the impact the industrial action has had”.

Following this statement audible groans and loud boos could be heard from the audience.

“So it’s the doctor’s fault,” Rigby said.

Rishi Sunak looked uncomfortable however went on to double down on his statement, saying that since resolving most of the industrial disputes, “what you’re now seeing is numbers coming down”.

To which Rigby replied: “I might have not done brilliantly at maths at school but I know that 7.2m to 7.5m is going up.”

Her response received laughter and applause from the audience.



“An NHS for people not profit” – Green Party co-leader rails against NHS privatisation in leaders’ debate

13 June, 2024 
 Left Foot Forward

Carla Denyer also called for more investment in the NHS


The first question of the second seven-way televised general election debate focussed on how political parties are planning to fix Britain’s creaking NHS and public services.

During the debate, the Green Party’s co-leader Carla Denyer criticised the role of privatisation in the health service and made the case for a publicly owned NHS.

Responding to the question, Denyer said: “The NHS is in crisis. And the Conservatives’ answer of a workforce plan doesn’t help when they’re refusing to pay healthcare workers properly. They’re pouring water into a leaky bucket because people are leaving the service for better pay and better conditions elsewhere.

“It also doesn’t help what Labour are proposing – opening the door to more privatisation in our health service. The answer is investment, and that’s why the Green Party is clear that we would make transformative investment into not only the NHS, but also social care which helps to take pressure off the NHS.

“The Green Party will always stand for an NHS for people not profit.”

The debate is being broadcast on ITV.
UK    

 Election debate: These are the four parties that said they want to cut immigration
13 June, 2024 
Left Foot Forward


They were asked to raise their hands if they think 
legal migration should fall




Representatives of Britain’s seven biggest parties have been participating in a general election debate on ITV. In one of the major moments of the debate, they were each asked whether they wanted to see migration to the UK fall.

The debate’s moderator – Julie Etchingham – said to the panel: “Please raise your hand if you think the net level of legal migration – that is the additional number of people coming to the country to work and live – needs to fall.

Labour’s deputy leader Angela Rayner, the Liberal Democrats’ deputy leader Daisy Cooper raised her hand, the Tories’ leader of the House of Commons Penny Mordaunt, and Reform UK leader all raised their hand.

The Green Party’s Carla Denyer, the SNP’s Stephen Flynn, and Plaid Cymru’s Rhun ap Iorwerth did not.


Following the exercise, Flynn branded the position of Labour, the Tories, the Lib Dems and Reform UK as reflecting “the Westminster status quo”.

Chris Jarvis is head of strategy at Left Foot Forward
UK
How trade unions reacted to Labour’s manifesto


14 June, 2024 
Left Foot Forward


Labour’s pledges received praise, but also warnings that it hasn’t gone far enough for some leading unions  




Unions have taken Labour’s manifesto as a welcome change to 14 years of Conservative ‘destruction’ and attacks on workers’ rights, however it comes amid warnings that the party’s pledges must go further to address shortfalls in its offer to public services.

The GMB union said the manifesto “offers a vision of hope” referring to the New Deal for Working People as a “once in a generation chance to completely transform the lives of working people.”

Labour has committed to implement a New Deal for Working People, introducing legislation within 100 days, which would represent a massive change to employment law in the UK, if implemented fully.

Critics have pointed out that there is no mention of repealing anti-union legislation in the manifesto, although it’s a prominent commitment in the New Deal plan. The document is however a watered down version of the original 2021 document which has angered trade unions.

Labour affiliated union Usdaw, which represents retail workers, also welcomed the manifesto saying the “pro-business, pro-worker” document will deliver ‘desperately needed’ change.

But Unite’s General Secretary Sharon Graham has said Labour’s proposals are “not likely to be enough”.

Unite was the only affiliated union not to endorse Labour’s manifesto. It said ‘red lines’ were broken, specifically on Labour’s revision to promises on workers’ rights and banning new licences for oil and gas exploration in the North Sea without having a concrete plan for jobs.

“To fix Britain after years of Tory neglect is going to need more money and there are clear choices to be made. Whilst we all want growth and Labour’s proposed changes may move the dial somewhat – that alone is not likely to be enough,” said Graham.

However the UK’s largest union UNISON was more hopeful, with General Secretary Christina McAnea saying the manifesto offers a “clear plan for the future”.

She said it was “gimmick-free and “full of costed measures designed to make a real difference to people’s lives at work, at school or at home”. McAnea highlighted the manifesto promise for a fair pay agreement in social care and the pledge to create a national care service.

The Royal College of Nursing has praised the manifesto for making “strong commitments” to repealing anti-trade union legislation and improving workers’ rights, however the union said it didn’t go far enough in terms of investment in the nursing profession and services.

The RCN said it would seek negotiations ‘immediately’ this summer (if Labour win) to get greater reassurance on plans to retain NHS staff and for fairer pay.

On schools, the National Education Union welcomed the party’s commitment to education and securing economic growth, however it warned that there was “no indication.. that current cuts to education will be reversed”.

The union also noted that tackling child poverty should be a central concern for the next government and, while it welcomed Labour’s commitment to introduce free school breakfast clubs for primary school children, it urged the party to commit to removing the two-child benefit cap.

Promising to “hold Labour’s feet to the fire” over its commitment to strengthening workers’ rights, the Fire Brigades Union said “it will be our duty to ensure a new Labour government makes good on these promises within the first 100 days of taking power”.

Hannah Davenport is news reporter at Left Foot Forward

Sunday, June 16, 2024

UK
Why the conspiracy of silence from our political parties when it comes to corporate greed?


14 June, 2024 

Political parties stigmatise people for claiming welfare support but pay no attention of the spiralling cost of corporate welfare which is enriching shareholders and company executives

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Election manifestos of all political parties are out as the battle for votes intensifies.

Just like the Conservatives, Labour is planning to squeeze the sick, disabled and poor by cutting benefits though it is dressed-up in vague words. There is no plan to reverse the two-child benefit cap and lift children out of poverty. There is a commitment to “reviewing Universal Credit”, plan “to support more disabled people and those with health conditions into work” and allusions to new “Work Capability Assessments”. Labour has shunned new taxes on the rich or corporations and committed to reduced borrowing, the self-imposed fiscal rules will inevitably squeeze welfare spending. The Resolution Foundation estimates that Labour will need to impose spending cuts of £18bn on unprotected departments such as transport, justice and the Home Office. The real value of welfare payments won’t be maintained.

Of course, any political party can (re)examine public spending and consider welfare reforms but the consequence for individuals and households are not spelled out. All major parties are united in silence on the size of the corporate welfare programme, its effect on the public purse, taxes, household budgets, inflation and more. There is no plan to review subsidies, grants and handouts or protect households from profiteering by companies exploiting their dominant market position.

Big business funds political parties, hands consultancy jobs to legislators and its interests are deeply embedded into the political system. Ever since the 1980s, under the influence of business-funded think-tanks the state has been reconstructed. Instead of directly investing in new industries, such as information technology, biotechnology and aerospace, it has become a guarantor of corporate profits. Numerous publicly-owned entities, such as water, rail, mail, oil, gas and care homes, have been privatised at knock-down prices and eventually sold to foreign investors. This has been accompanied by outsourcing of public services, the private finance initiative (PFI) and corporate bailouts.

Banks are a classic example. At the height of the 2007-08 financial crash, the state suddenly found £1,162bn of cash and guarantees (£133bn cash + £1,029bn of guarantees) to bail out ailing banks. To assist capital markets and speculators it also conjured up £895bn of quantitative easing. In 2022, compensation of £120m was handed to investors in London Capital and Finance. Finance industry profits remain privatised and the cap on bankers’ bonus, which was designed to curb reckless risk-taking, has been scrapped. The economy is yet to fully recover from the bailouts.

Between 2015 and 2023 renewable energy sector received £60bn in public subsidies. Fossil fuel companies for the same period received £80bn. In return, the people don’t own anything. Companies keep the resulting assets and income streams.

In 2022-23, the energy price spike threatened to increase fuel poverty and bad debts of energy companies. The government could have acted to reduce profit margins of energy companies, but didn’t. It instead handed over £78bn to energy companies. British Gas increased its profits ten-fold. BP and shell more than doubled their profits. Under public pressure £39.9bn was recouped through windfall taxes on energy producers. The state is still committed to footing some £24bn of the cost of decommissioning oil and gas rigs through a variety of tax reliefs. Drax burns wood from forests to produce electricity and is contracted to receive subsidy of £10.4bn for the period 2012-2027. Oil giant Equinor could receive subsidies of £3.75bn.

The state routinely hands out hard cash to businesses which were privatised. Avanti West Coast managers famously referred to this as “free money” and “too good to be true”. In the last decade, privatised train companies have received subsidy of over £75.2bn. Labour’s manifesto promises to bring rail companies into public ownership. However that commitment only applies to passenger operating companies and excludes lucrative freight and rolling stock companies.

The government has given £500m to Jaguar and Land Rover for production of batteries for electric vehicles. £500m has been handed to Tata Steel and another £500m to Jingye Steel. The government has provided £5bn subsidy to telecom companies to persuade them to provide internet services to rural areas.

Bailouts, cash, grants and subsidies are not the only avenues of corporate welfare. There are 1,180 tax reliefs, but just 365 have official costings. Many are given to corporations to achieve some economic or social objectives but there is little monitoring. The Chancellor stated that Research and Development (R&D) tax reliefs had been subject to “abuse and fraud. In 2020-21, R&D losses due to error and fraud were £1.13bn. A former head of HMRC urged the government to scrap the “entrepreneurs’ relief”, costing £2bn a year, because it provided “no incentive for real entrepreneurship”.

In 2014, the government created the video games tax relief for games with “culturally British accreditation”. Companies adopted creative strategies to claim the relief. Games such as “Batman”, “Goat Simulator”, “Grand Theft Auto” and “Sonic the Hedgehog” could hardly be described as “culturally British” but received tax relief. James Bond films receive massive subsidies from the UK taxpayers, but the company behind it routinely declares losses and pays little or no corporation tax.

The National Audit Office noted that “there are too many examples where these reliefs either do not achieve their economic objectives or are subject to significant error and fraud, costing the Exchequer billions of pounds. … We have seen examples of tax reliefs where the costs have increased quickly … the government cannot know the cause if it has not carried out adequate compliance work to ensure only legitimate claimants received the reliefs”.

Corporate welfare programmes allow corporations to ride roughshod over workers and customers. Some 4.1m UK workers are in precarious jobs as the use of zero hour contracts and fire and rehire has proliferated. Real average wage is lower than in 2008. People use foodbanks, charity and social security benefits to make ends meet. 38% of the people on Universal Credit are in employment. Their wages are being subsidised by the public purse whilst corporate profit margins have soared.

Water companies have long been permitted to abuse customers. The pricing formula used by water regulator OFWAT guarantees real returns to companies each year. It takes no account of the quality of water or sewage dumping. Too many internet and mobile phone companies are increasing customer bills by the rate of inflation + 3.9% each year even though there is no real increase in their operating costs. It is a similar story at Royal Mail, which was privatised in 2013. At the time of privatisation, first-class postage stamp cost 60p and second-class 50p. Some 11 years later, the first-class postage has rocketed to £1.35 and second-class to 85p, an increase of 70%-125%. The frequency of mail delivery has declined. Royal Mail only meets 74.5% of its targets but that hasn’t persuaded regulators to curb price rises. The companies are effectively raising capital from consumers, whilst companies and shareholders own the resulting assets and receive returns.

The public purse is gouged by drug companies selling medicines to the NHS at inflated prices. For example, a pharmaceutical company charged the NHS £80 for a single pack of tablets that had previously cost less than £1. Another inflated the price of hydrocortisone tablets by more than 10,000% compared with the original branded version.

Companies are allowed to manufacture and sell deadly products certain to inflict disability and premature death. For example, tobacco, alcohol, ultra-processed foods and fossil fuels kill 2.7m people a year in Europe. Neither shareholders nor companies bear the social cost, which falls on society. The public purse funds social irresponsibility and effectively transfers wealth from people to companies.

The Public Accounts Committee reported that the government lost up to £28.5bn to fraud and error in procurement of personal protective equipment (PPE) due to lax checks and controls. A Treasury Minister resigned live in the Lords and accused the government of “arrogance, indolence and ignorance” in its attitude to tackling fraud. He added that banks handing out Covid loans “have been assisted by the Treasury, who appear to have no knowledge or little interest in the consequences of fraud to our economy or our society …Schoolboy errors were made: for example, allowing over 1,000 companies to receive bounce-back loans that were not even trading when Covid struck.”

Political parties stigmatise people for claiming welfare support but pay no attention of the spiralling cost of corporate welfare which is enriching shareholders and company executives. Public services are being cut to fund corporate welfare. Successive governments have failed to publish the full cost of corporate subsidies, grants and tax reliefs and there is considerable fraud. There is little monitoring to check that the handouts deliver the assumed economic objectives. As long as political parties are funded by corporations, there is little chance of critical scrutiny of corporate welfare programmes.

Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward.
UK
EXCLUSIVE: Vote share of two main parties hits historic low three weeks from polling day
14 June, 2024 
General Election
Left Foot Forward 

Compass calls on Labour to reform the voting system 'no longer fit for purpose'



The combined vote share for the two main parties has hit a historic low for this point in the election race, analysis from Compass has revealed.

The progressive, cross-party campaign group compared vote share data from three weeks before polling day in each election since 1951, and found that the vote share for Labour and the Conservatives three weeks before polling day has dropped to a historic low.

Compass said the findings reveal a “deep discontent” from voters at the binary choice and argued that the voting system is no longer fit for purpose. It has called on Labour, should the party win the election, to introduce a voting system that better represents the changing, multi-party face of democracy in the UK.

Opinion polls from the four days leading up to and including June 13th 2024 put the combined share of Labour and Conservative votes at 60.8%. It’s a significant 10% lower compared to the previous lowest figure in 2005, which had the average vote share for the two main parties three weeks ahead of polling day at 71%.

It continues a trend in the long-term decline in vote share for the two main parties. In 1955 Labour and the Conservatives held nearly 97% of the vote. While the analysis shows that this has steadily gone down ever since.

Compass has argued for an end to the First Past the Post (FPTP) system which means the main battle in elections will always be between the two major parties, and means parties can win seats with as little as 35% of the vote.

A Compass spokesperson said: “The never-ending doom loop of First Past the Post locks voters into an abusive cycle where they are constantly forced to pick between two parties they clearly don’t have any enthusiasm for. But fewer and fewer are now doing so.”

The group is campaigning to elect progressive candidates who are committed to reforming the electoral system by introducing proportional representation, which Compass said was “the key to unlocking democracy.”

This general election Compass has secured more than 30 endorsements of PR-supporting candidates with its Win As One campaign.


Hannah Davenport is news reporter at Left Foot Forward

Politicians urged to save UK grassroots music venues and libraries, by urgently investing in the arts

Gabrielle Pickard-Whitehead 
15 June, 2024 
Left Foot Forward

'There comes a point where there’s no fat left to trim.'



Ahead of the general election, politicians from all parties are being urged to take action to help save the UK’s music and library sectors from a deepening crisis.

Small music venues are being decimated in Britain. In 2023, 125 venues abandoned live music, and more than half shut entirely due to financial pressure. Soaring utility bills and an average 37.5 percent hike in rent have put the surviving 835 venues at risk. During the same period, remaining venues typically secured profits of just 0.5 percent.

These alarming figures were gathered by the Music Venues Trust (MVT), a charity which represents Grassroots Music Venues (GMVs) across the UK. Its latest annual report found that the grassroots scene remains “significantly underfunded compared to other areas of culture”, despite contributing over £500m to the economy and employing almost 30,000 people.

Separate figures from the Night Time Industries Association (NTIA) show that the UK has lost five nightclubs “every week” in 2024 so far.

Ahead of the forthcoming general election, the MVT has launched a ‘Manifesto for Grassroots Music,’ setting out steps that need to be taken to stop the closure of more GMVs, which are currently running at one per week.

The report calls for the abolition of VAT on GMV tickets and a review of the business rates paid by venues in the sector. It is also asking for a £1 grassroots investment contribution from every arena and stadium ticket sold to support grassroots music, venues, artists and promoters. The £1 levy from every arena and stadium ticket sold for events over a 5,000 capacity was suggested by the recent Culture, Media & Sport Select Committee recommendations as a potential solution to the UK’s dwindling number of small-scale music venues.

The move would mimic the French system where there is a centralised pot of about €200m (£172m) that venues, artists, and promoters can apply for, which is funded by a levy on the gross value of tickets sold at big venues.

Urging politicians to act now, Sophie Brownlee, External Affairs Manager at Music Venue Trust, said:

“The Manifesto is being delivered to every prospective MP in the country with the request that they come out in support of it as part of their campaign to be elected.

“Music communities across the country will also be asking the candidates where they stand on the future of live music in our towns and cities. The time to act is now.”

The Greater Manchester mayor, Andy Burnham has spoken out in support of the proposed plan, including the £1 levy and the VAT cut.

“Music Venue Trust has been instrumental in supporting UK grassroots venues. I’ve seen many of my favourite bands in some of these spaces, and they play a key role in the night-time economy and music scene of Greater Manchester and the wider UK.

“I fully support the recommendations published by the Culture, Media & Sport Select Committee including the introduction of a levy and a targeted VAT cut to halt the rising tide of closures. However, it’s clear that urgent action is needed to support venues and the talented artists playing them,” he added.

Alongside music venues, the fate of Britain’s libraries has also been raised as we approach the general election. Since the Conservatives came to power in 2010, council budgets have been increasingly stretched, with successive central governments cutting grant funding. Since the onset of austerity, council spending on libraries, culture, heritage and tourism, has reduced by almost £500m, as the latest review from County Councils Network (CCN) found. Facing increased financial pressure, local authorities have regularly seen libraries as an easy place to make savings. In the last 14 years, spending on libraries has fallen by almost half (47.9%) since 2010.

“For the last 10 years libraries have had to do more with less,” says James Gray, marketing and advocacy manager for the charity Libraries Connected. “There comes a point where there’s no fat left to trim.”

The challenges UK libraries face was highlighted at the Manchester City of Literature’s Festival of Libraries 2024. The annual event celebrates Greater Manchester’s 133 libraries. The five-day programme of arts, culture, information and technology is supported by Arts Council England and includes a series of talks with high-profile advocates of libraries and literacy.

Actor Christopher Eccleston was among the speakers. Addressing an audience at Stockport Central Library on June 13, Eccleston shared his passion for libraries and books and highlighted some of the challenges libraries face, including funding cuts. He noted how Britian needs to proper arts funding system in place like the French and he hoped that there will be more change of getting arts on the agenda with the new government.

“As an actor, words are the tools of my trade. When I was growing up in Salford the local library provided a vibrant lifeline to the wider world. Libraries feed people’s interests and passions and provide access leading to connections being forged,” said Eccleston.

Caroline Kelly, the festival’s Creative Director, said the objective of the festival is to let people know that libraries are free and for the people. She told Left Foot Forward:

“These vital community spaces offer so much more than just books. They provide free internet and anything from music gigs, poetry nights, drama classes, yoga sessions, murder mystery, history, business advice and access to the arts. Libraries are such an essential service that should not be cut or underfunded, especially in these times.

“Maxine Peake and Chris Eccleston, who both spoke at the festival, said they would not be where they are now with their local library whilst growing up.”

Actors Imelda Staunton and Olivia Colman have also called for urgent political support for the arts in light of research by Equity suggesting funding in the UK has dropped by 16 percent since 2017.

“I want to see all parties promising much more on the arts. They are not just a ‘nice to have’, they are essential to the thriving, confident country we all want to live in,” said Staunton.

Gabrielle Pickard-Whitehead is a contributing editor to Left Foot Forward
Almost 70,000 sign Stop Arming Israel campaign, as ministers come under increased pressure to act
Yesterday
Left Foot Forward

‘We’re supporting this important case because of the UK’s refusal to abide by its international legal obligations and suspend arms transfers to Israel.’

Newly released government figures show that between the Hamas attack on October 7 and May 31, the UK issued more than 100 arms export licences to Israel.


The figures, which were disclosed by the business department in response to heightened parliamentary scrutiny, found that out of the 108 licenses issued, 37 were classified as military and 63 as non-military, which may include telecommunications equipment intended for use by the Israel Defence Forces (IDF).


The data shows that during the period, no arms export licence application was rejected or revoked. In December, April, and May, three separate decisions were made by ministers to reject calls to suspend arms to Israel. Ministers claim that such decisions are consistent or in line with legal advice.

But multiple campaign groups and international bodies claim that Israel’s use of military equipment in Gaza, which has killed more than 36,700 Palestinians since October 7, risks breaching international humanitarian law. Two leading human rights organisations, Amnesty International and Human Rights Watch, have announced their intention to join a judicial review claim regarding arms sales. This claim has been initiated by the Global Legal Action Network and Al-Haq, a Palestinian human rights group.

Sacha Deshmukh, Amnesty International UK’s chief executive, said: “We’re supporting this important case because of the UK’s refusal to abide by its international legal obligations and suspend arms transfers to Israel.

“There’s a mountain of evidence showing that Israeli forces are committing war crime after war crime in Gaza, going back well before last October.”

Yasmine Ahmed, the director of UK Human Rights Watch, said that the right way to approach Israel’s commitment to “comply with IHL [international humanitarian law) is not by reference to Israel’s subjective interpretation of its compliance with IHL, but by an objective interpretation of what IHL actually requires.”

Oxfam has accused the UK government of being complicit in the catastrophe in Gaza by continuing to sell arms to Israel. The charity has written an open letter to the Trade Secretary and Foreign Secretary, urging the government to stop arming Israel.

“Together we are urging you to immediately halt arms licences and exports to the Government of Israel. This is just one crucial step towards helping to secure a permanent and immediate ceasefire for all Palestinians and Israelis,” the letter states.

The open letter, calling for an end to arms sales, and for an immediate, permanent ceasefire, has been signed by almost 70,000 people.

On June 3, activists dropped a banner from Westminster Bridge calling on the Labour leader Keir Starmer to commit to ending arms sales to Israel, if he becomes prime minister.

Palestine Solidarity Campaign Director, Ben Jamal, called on Starmer “to make clear if he takes international law seriously. If he does, then the course of action is clear – a Labour government would end arms sales to Israel.”

“No ethical or principled government would continue to supply arms to a genocidal state,” said Jamal.


Gabrielle Pickard-Whitehead is a contributing editor to Left Foot Forward

Opinion
This is how you can put Palestinian rights on the agenda in the general election

14 June, 2024 
LEFT FOOT FORWARD

Palestine Solidarity Campaign are asking parliamentary candidates to stand up for Palestine


Next month, people across Britain will go to the polls to elect a new parliament and government. Before they do, many will be sizing up the candidates to see who will best stand up for their values. Millions of people care deeply about human rights and the principles of freedom and justice and stand in opposition to racism and institutionalised discrimination. They expect the same standards from political representatives. An urgent new intervention launched by the Palestine Solidarity Campaign (PSC) aims to help voters to make an informed choice.

This General Election has been called at a moment when Palestinians are confronting one of the darkest moments in their history. More than 37,000 Palestinians in the Gaza Strip having been killed in what the International Court of Justice (ICJ) has accepted as a plausible case of genocide. The prosecutor of the International Criminal Court (ICC) is seeking arrest warrants for Israel’s Prime Minister and Defence Minister alongside Hamas leaders, for crimes against humanity, including the use of starvation as a weapon of war. It also comes in the wake of an unprecedented series of massive mobilisations including fifteen major marches so far in London.

This year, Palestine will be an electoral issue to an extent that Britain has never seen before. Opinion polls have consistently pointed to overwhelming support among the public for a ceasefire in Gaza, as well as meaningful actions to hold Israel to account such as a halt to arms sales. Unfortunately, public sentiment has largely been ignored in Westminster. Too many politicians still make excuses for Israel’s horrific violence. In November, the only occasion that MPs have voted on a motion calling for a ceasefire, just 125 out of 650 were prepared to insist on an end to the killing.

To address this democratic deficit, PSC is calling on its supporters to use a new online tool to write to the candidates who are standing in their constituency. In conjunction with our Palestinian partners, we have drawn up a set of concrete actions that we are asking parliamentary candidates to commit to if elected. Politicians in Britain have a moral and legal responsibility to end their complicity, take steps to prevent genocidal acts, and use their influence to bring Israel’s violence to a stop. Alongside supporting an immediate ceasefire, an arms embargo, and the restoration of British funding to the aid and refugee support agency UNRWA, we are asking prospective MPs to commit to halt all moves to enhance trade with Israel and implement an immediate ban on trade with illegal Israeli settlements. We ask that they support the work of the international courts to hold Israel to account for violations of international humanitarian law and protect our right to advocate for Palestinian rights through protest, boycotts, and divestment. We will publish candidates answers in full on our website to assist voters with their decision.

Although we expect the impact of Gaza on the election to be especially strong in some places – urban areas, university towns, and seats with a higher proportion of Palestinian, Muslim and minority ethnic voters – right across the country there has been sustained action in support of Palestinian rights in recent months.

Israel’s current campaign of genocidal violence against the Palestinian people in Gaza is built on the foundations of decades of violations of Palestinian rights by Israel in which successive British governments have been complicit. Palestinians have the inalienable right to self-determination, including the right to return to their homes, and to be free from ​​discriminatory laws and racial domination. Any suggestion that, alone among peoples facing oppression around the world, Palestinians should be singled out and denied the right to appeal to people of conscience for support is wrong and must be rejected. With the election drawing near, we are urging all parties to demonstrate support for human rights and international law.

From the huge and historic London demonstrations to the smaller protests in towns and cities, from Penzance to the Orkney Islands, hundreds of thousands – like millions around the world – have taken to the streets to call for a ceasefire and justice for the Palestinian people. Now, we are taking the demands of that movement into the heart of this election campaign. In every single one of those places there are voters who will be looking closely at how candidates respond to our questions as they make up their minds about where to put their cross on 4 July.

You can use PSC’s online tool to write to candidates in your constituency here.

Check your previous MP’s record on standing up for Palestinian rights here.

Peter Leary is Deputy Director of Palestine Solidarity Campaign

Image credit: Socialist Appeal – Creative Commons