Yesterday, in Birmingham, David Cameron announced that public sector funding levels would not be restored once the budget deficit has been addressed. This will, hopefully, spell the end of any pretence that these cuts are anything but ideological in nature.
Most people out there agree that reducing the deficit is a necessity at this time, where the political parties differed was on how deep and fast to cut, with Labour choosing to wait before cutting, while the Tories were keen to wield the axe as soon as they had taken their shoes off in Number 10. The Lib Dems said they would wait but once in government Clegg said he had changed his mind. Who knew?! (This is all, by the way, ignoring those small numbers of people who do not see the deficit as a massive problem and something that would have been dealt with when the economy picked up.)
By stating that public sector funding will be expected to continue at the levels forced upon departments, councils and other organisations by the economic downturn and the coalition government’s unwillingness to continue funding the deficit, Cameron has stated that regardless of how the economy (and therefore Treasury take from tax revenue) improves nothing will encourage him to spend more.
Furthermore, a big issue is made of how much of the deficit is made up of interest payments – some £43bn this year alone out of a budget deficit of approximately £150bn. But hang on, if you successfully reduce the deficit, you are no longer paying that interest and therefore is it not free money which could be reinvested by the government? Oh wait, I forgot about Cameron’s comments yesterday!
All of this begs the question, if the Treasury are taking in more tax through a recovered economy, and have an extra £43bn freed up by not having to make those interest payments, what does the coalition government plan to do with the extra cash? My guess would be bring taxes down, something that would disproportionately benefit the wealthy, purely by how much they pay in taxation, while the poor will suffer from the decreased investment in public services they rely on.
We are now starting to see Cameron’s true colours seeping out.
P
Wednesday, 4 August 2010
Tuesday, 3 August 2010
End of term report - Labour
Having lost the reins of power and a leader (albeit a less than popular one) in such a short space of time, the Labour party could be forgiven for going through a period of introspection, after all the Conservative party had one lasting six or seven years after their defeat in 1997. They have, however, managed the rather difficult job of conducting the leadership campaign at the same time as doing rather a good job of holding the new government to account. All of this while avoiding the traditional Labour post-election defeat activity of consuming itself in a damaging internecine conflict.
Admittedly, the Conservatives and particularly the Lib Dems have made this rather easier than it might have been, but as Yakubu will tell you it is still possible to miss an open goal! Ed Balls has not gotten enough credit in my eyes, for holding Michael Gove to account for the numerous slip ups since he took over at the Department for Education. Harriet Harman and Jack Straw, although not the most polished of performers at the Dispatch Box, have done credibly well against David Cameron and Nick Clegg, who have found the transition from asking the questions to answering them rather trickier than they anticipated.
Others getting honourable mentions include David Miliband for his response to Cameron’s recent foreign policy rhetoric and Andy Burnham for his campaigning against Andrew Lansley’s health ‘reforms.’ Overall, the impression the voters are getting is one of a party with some renewed vigour, if not as of yet some sparkly new policy ideas. They will (hopefully) come, however, when a new leader is elected and the direction of the party is set.
And the polls seem to be heading in the right direction for the party. Up around seven or eight points since the election, they are now in the strange position of being capable of being the largest party in the Commons after a general election, while still a few points behind the Conservatives. This, as well as the rise in the Tory numbers, is probably a result of the those on the left and right fringes of the Lib Dems peeling off, either in protest at the coalition or deciding to support the (obviously) more senior partner.
As Ed Balls says in today’s times, though ‘...while we must win back voters lost to the Lib Dems, we must be not let the Tories off the hook.’
P
Admittedly, the Conservatives and particularly the Lib Dems have made this rather easier than it might have been, but as Yakubu will tell you it is still possible to miss an open goal! Ed Balls has not gotten enough credit in my eyes, for holding Michael Gove to account for the numerous slip ups since he took over at the Department for Education. Harriet Harman and Jack Straw, although not the most polished of performers at the Dispatch Box, have done credibly well against David Cameron and Nick Clegg, who have found the transition from asking the questions to answering them rather trickier than they anticipated.
Others getting honourable mentions include David Miliband for his response to Cameron’s recent foreign policy rhetoric and Andy Burnham for his campaigning against Andrew Lansley’s health ‘reforms.’ Overall, the impression the voters are getting is one of a party with some renewed vigour, if not as of yet some sparkly new policy ideas. They will (hopefully) come, however, when a new leader is elected and the direction of the party is set.
And the polls seem to be heading in the right direction for the party. Up around seven or eight points since the election, they are now in the strange position of being capable of being the largest party in the Commons after a general election, while still a few points behind the Conservatives. This, as well as the rise in the Tory numbers, is probably a result of the those on the left and right fringes of the Lib Dems peeling off, either in protest at the coalition or deciding to support the (obviously) more senior partner.
As Ed Balls says in today’s times, though ‘...while we must win back voters lost to the Lib Dems, we must be not let the Tories off the hook.’
P
Monday, 2 August 2010
End of term report - Conservatives
As previously stated, David Cameron has done a good job of holding things together in government since the election. It is to his great credit that the Conservatives, previously so bolshie in opposition, have been able to keep any disquiet largely under wraps, despite a disappointing election result and having to make room at the Cabinet Table for several players who before May 5th were ‘enemies!’
The government has hit the ground running, forced in part through the Emergency Budget and (the government claims) the necessity to find massive savings right away. Consultations have been thrown out left, right and centre and all have contributed to the feeling, no doubt, that we finally have a government who are doing things! In any case, recent polling data would suggest that the public are responding, offering the tantalising prospect that, should Cameron wish, he could easily throw off the need for his coalition partners if the polls are replicated across the country.
There have been, however, a number of gaffes and headaches that have meant it has not all been plain sailing for Cameron. Michael Gove is developing quite a nice reputation for being an able and quick-witted lieutenant in opposition, but something of a liability in government. The haste with which the fast-track academy bill went through the Commons has been shown up to have been unnecessary and the fiasco surrounding the Building Schools for the Future announcement is something Gove and Cameron would sooner forget.
Liam Fox and his handling of the Defence portfolio is also proving to be something of a landmine that risks blowing up in Cameron’s face. Having criticised the previous government mercilessly for undermining the military covenant, it now seems Cameron and George Osborne are happy for them to force the MoD to find the cost of Trident replacement out of its existing budget. What will Dr Fox have to cut to find the cash for that boondoggle?! And finally, there is Cameron’s junior partner in government, Nick Clegg, who cannot even answer a few simple questions at the Dispatch Box without forcing Number 10 to issues unbelievable statements claiming he was not speaking for the government. It begs the question, what was he doing at the Dispatch Box if he does not?!
Still, none of this is making much impact with the electorate who, as stated above, have been getting happier with the Tories since the election. Still, Labour have been growing in popularity too, suggesting that much of the growth in support for both parties has come at the expense of the Lib Dems and other parties. Labour have done it all without a permanent leader, however as well as the distraction of a leadership contest. Food for thought for Cameron indeed!
P
The government has hit the ground running, forced in part through the Emergency Budget and (the government claims) the necessity to find massive savings right away. Consultations have been thrown out left, right and centre and all have contributed to the feeling, no doubt, that we finally have a government who are doing things! In any case, recent polling data would suggest that the public are responding, offering the tantalising prospect that, should Cameron wish, he could easily throw off the need for his coalition partners if the polls are replicated across the country.
There have been, however, a number of gaffes and headaches that have meant it has not all been plain sailing for Cameron. Michael Gove is developing quite a nice reputation for being an able and quick-witted lieutenant in opposition, but something of a liability in government. The haste with which the fast-track academy bill went through the Commons has been shown up to have been unnecessary and the fiasco surrounding the Building Schools for the Future announcement is something Gove and Cameron would sooner forget.
Liam Fox and his handling of the Defence portfolio is also proving to be something of a landmine that risks blowing up in Cameron’s face. Having criticised the previous government mercilessly for undermining the military covenant, it now seems Cameron and George Osborne are happy for them to force the MoD to find the cost of Trident replacement out of its existing budget. What will Dr Fox have to cut to find the cash for that boondoggle?! And finally, there is Cameron’s junior partner in government, Nick Clegg, who cannot even answer a few simple questions at the Dispatch Box without forcing Number 10 to issues unbelievable statements claiming he was not speaking for the government. It begs the question, what was he doing at the Dispatch Box if he does not?!
Still, none of this is making much impact with the electorate who, as stated above, have been getting happier with the Tories since the election. Still, Labour have been growing in popularity too, suggesting that much of the growth in support for both parties has come at the expense of the Lib Dems and other parties. Labour have done it all without a permanent leader, however as well as the distraction of a leadership contest. Food for thought for Cameron indeed!
P
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