Category Archives: Economy
Jeremy Corbyn spoke at Labour’s conference in Llandudno on 22nd April and received a huge standing ovation, in spite of the relentless media efforts to portray him negatively while often ignoring or even covering up the disarray on the government’s front benches.
A transcript is not available but his 2017 speech is well worth revisiting: http://jeremycorbyn.org.uk/articles/jeremy-corbyns-speech-to-the-welsh-labour-conference/
What Labour in Wales has achieved:
A health service free from unnecessary top-down reorganisations and privatisation where your hospitals are not struggling with record deficits due to the legacy of PFI. The NHS in Wales is treating more people than ever before and 90% say they received good treatment
- Free prescriptions for all
- A new treatment fund setup for life threatening illnesses
- On cancer waiting times, Wales is doing better than England and cancer survival rates in Wales are improving faster than anywhere in Britain
- You’ve protected the social care budget which has been slashed in England
- and there are good industrial relations in Wales: no strikes provoked and no operations cancelled unnecessarily
We strongly support the doctors who don’t want patient safety to be put at risk. Last week I had the privilege of spending a couple of hours with a group of junior doctors. Let’s be clear, they are not “junior” they are dedicated, highly qualified people on whom we all depend. They are alarmed at the direction the NHS is taking.
As a parting gift they gave me this book “How to dismantle the NHS in 10 easy steps” which starts with an internal market and ends with an aim of introducing universal private health insurance.
As Nye Bevan said: “Illness is a misfortune, the cost of which should be shared by the community”.
In Wales you have built an education system that has just delivered the best ever GCSE results
- new schools are being built
- primary school pupils get a free breakfast
- the poorest college students still get the education maintenance allowance (EMA)
- And where Welsh students aren’t shackled by mountainous debt and where grants are being maintained.
English students leave university with an average £22,000 more in debt than Welsh students; that is a shocking burden that shackles young people as they start in life. It is no surprise that home ownership has collapsed.
Jobs Growth Wales has helped 15,000 young people into work
- The Young Entrepreneurs Bursary has helped young people to setup over 400 businesses in Wales and your plans to deliver 100,000 quality apprenticeships.
- the Bay Campus at Swansea is already reaping the benefits of high tech jobs in the area.
The Institute for Fiscal Studies says that tax and benefit changes in the last five years have left the average Welsh household £560 a year worse off.
Tax cuts for the few, the super-rich and big business public service cuts and welfare cuts for the many. We have gratuitous inequality in this country the average pay of the top chief executives compared with the average worker has risen from 47 times in 1998 to 183 times last year.
For too many people in the UK who aren’t the super-rich elite and there are quite a few of them, life is wracked by insecurity, at work and at home, Labour believes that we only succeed if we all succeed together.
The impact of this insecurity on people’s lives can be huge, it affects people’s physical and mental health.
The Tories have failed to invest in modernising the economy, we are way behind other countries on our digital infrastructure, our transport, our energy system and our housing.
70 Labour councils have committed to eliminate all carbon emissions by 2050 – including major cities like Edinburgh, Manchester, Newcastle, and Liverpool and here in Wales in Swansea, Torfaen and Caerphilly. And Labour in Wales has set out a clear energy policy, Energy Wales: A Low Carbon Transition and is supporting decentralised energy production through the Local Energy Service.
The Conservative government continues to fail to invest in renewable energy cut subsidies for the nascent solar industry but increased them for fracking and for diesel generators.
If our investment in flood defences had been continued, retaining the senior staff employed to make decisions in these emergencies and protecting the emergency services who responded to save lives and homes during those difficult days and weeks, we would not have seen the level of destruction and flood damage that caused such anguish to so many people as their homes were damaged and their belongings ruined.
Transport infrastructure is absolutely crucial to industrial development and growth. I praise the Welsh government in its support in re-opening and improving valley railway lines, the plans for the improved metro links in the south west of Wales and the crucial need to improve the North Wales line and road links.
We have already challenged the government and won on many important issues:
- We forced them to take a U-turn on cuts to working tax credits meaning 3 million families will no longer be hit this April with a £1,000 cut to their family income
- We made them backtrack on plans to further cut police numbers in their Autumn statement
- And we stood against the horrendous proposal that the UK would run Saudi Arabia’s prison system for them
Our party is one of social justice every child deserves a good education every student the option to study at college or university everyone deserves a decent and secure home to live in nobody should ever be left destitute the grotesque levels of inequality are unjustifiable and must go.
We are living through an era of the most grotesque deepening inequality in Britain and the West. The cynics say that inevitably the next generation will be worse of that this, I say this is not inevitable and not necessary as socialist our duty is to expand the wealth but crucially to share it so the next generation is better off than this one, and our grandchildren will be better off than our children.
Today, at the Manufacturing Organisation EEF’s conference, in the questions session following his well-received address, Jeremy Corbyn broke silence on the claim by the Sun and the Daily Mail that he had been collaborating with a Czech spy – which had been debunked yesterday in a BBC interview with a Czech intelligence archivist.
He responded to a lamely delivered question from a Daily Mail representative and was warmly applauded by the audience. A video clip on the Skwawkbox site is well worth seeing.
Appreciation also to inews who gives the speech in full here
It has been placed with Mr Corbyn’s other addresses on this website.
Did it provoke the multi-pronged attack the next day in The Times?
Labour leadership candidate Jeremy Corbyn outside the Tyne Theatre and Opera House, Newcastle
In August 2015, the undersigned wrote:
“This is a moment of opportunity for the Labour party and the country.
“A new movement is emerging in British politics; party membership is growing rapidly, particularly among young people who had increasingly given up on politics and politicians.
“There is a possibility that academics who have always felt that their research – whether on social policy, public health, economics, sociology or other disciplines – was ignored by policymakers may now be more in tune with the leadership of the Labour party.
“And rather than a backward-looking “old Labour” approach to politics, this is about recognising the inspiring possibilities for a fairer and more equal society offered by an information economy in an interdependent world.
“We endorse Jeremy Corbyn’s candidature for leadership of the Labour party”.
Richard Wilkinson Emeritus professor, University of Nottingham
Kate Pickett Professor, University of York
Steve Keen Professor, Kingston University
Elizabeth Dore Emeritus professor, University of Southampton
John Weeks Emeritus professor, Soas, University of London
Prem Sikka Professor, University of Essex
Alfredo Saad Filho Professor, Soas, University of London
Guy Standing Professor, Soas, University of London
Ozlem Onaran Professor, University of Greenwich
Christopher Cramer Professor, Soas, University of London
Jeff Powell Senior lecturer, University of Greenwich
Christine Cooper Professor, University of Strathclyde
Lawrence King Professor, University of Cambridge
Marjorie Mayo Emeritus professor, Goldsmiths, University of London
Hugo Radice Life fellow, University of Leeds
Susan Newman Senior lecturer, University of the West of England
Elizabeth Wilson Professor emeritus, London Metropolitan University
Malcolm Sawyer Emeritus professor, University of Leeds
Jo Michell Senior lecturer, University of the West of England
Susan Himmelweit Emeritus professor, Open University
Simon Mohun Emeritus professor, Queen Mary, University of London
Diane Reay Professor, University of Cambridge
Andrew Cumbers Professor, Glasgow University
Simon Deakin Professor, University of Cambridge
Roger Seifert Professor, University of Wolverhampton
George Irvin Professor, Soas, University of London
Engelbert Stockhammer Professor of economics, Kingston University
And thoughtful contributions from readers:
Whoever wins the Labour leadership must not disappoint the thousands of party members, affiliates and supporters who have been energised and motivated by the election debate. There is a hunger for change within the party not just for a new vision for the future of the country but for a transformation of the way the party is organised and connects with its members and the electorate. The new leader should re-establish democracy within the party and build trust between members and the PLP. The party is strong when it operates as a community that shares ideas and builds policy from the ground up based on a full understanding of the issues that face all sections of society. There has never been a better opportunity to tap into the energy of new members and supporters and build a strong and successful political force. A leader who reverts back to the top-down focus group-tested soundbite politics of the Blair years will quickly find that the support they had will disappear and supporters will lose faith in politics.
There are two crucial points that your editorial (14 August) ignores. First, Jeremy Corbyn will prove to be an extremely popular and effective opponent of a government that most voters opposed. People will respect his straightforward, honest and principled exposure of Tory policies in practice. Second, unlike anyone who’s had power in the Labour party since Tony Blair, Corbyn is a true democrat. He’s not going to impose his policies on anyone. For the first time in decades members will be able to propose, debate, challenge and refine the party’s policies. And of course, “Events, dear boy, events” will play a major role in what transpires. If Corbyn can lead this collaboration of MPs and members, and withstand the onslaught from the media and from within the party, and if he still wants to be prime minister in 2020, the party will have strong policies and be electable. If he decides he shouldn’t be PM, another leader will emerge with policies that have been forged in the furnace of democratic debate by the membership. A better prospect, either way, than certain failure under any of the other three (unelectable) candidates.
With Blair and the rest of the Labour establishment yet again urging the membership to play catch up with the Tories, is it any wonder that members are flocking to support Jeremy Corbyn? At long, long last, they are being offered a real choice.
Vice-chair, Labour CND
Polls show that most UK voters reject Trident, not just in Scotland. Corbyn is the only leadership candidate to represent this majority view. As Labour leader, Corbyn’s firm anti-Trident stance would win support in Scotland – and in the rest of the country too. He can promise voters to scrap Trident and spend the £100bn on reversing some of the cuts. He’d be backed by the TUC, Unison and many other unions who oppose Trident. Corbyn represents the public’s view on Trident, just as he stood with the public on Iraq. Corbyn has the policies and qualities to win a general election.
The critics of Jeremy Corbyn in the Labour leadership election and, now, the Guardian (8 August), have argued that a leftwing programme, when Michael Foot was leader, led Labour in 1983 to “its worst result since universal franchise”. This is totally false.
In January 1981 Labour under Michael Foot was 13% ahead in the opinion polls and it was the launch of the Social Democratic party on 27 March 1981 by Roy Jenkins and three colleagues, followed by desertion by a section of rightwing Labour MPs, which destroyed Labour’s electoral lead. The behaviour of the left may not always have been faultless, but it was the disloyalty of a section of the right which was primarily responsible for our heavy defeat in 1983.
As for Gerald Kaufman’s smear at the 1983 Labour manifesto as “the longest suicide note in history”, it might be apposite for the critics to read it. It proposed “much closer control over bank lending” through the then publicly owned Bank of England, the need for which stood out in the 2008 crisis. It also proposed a plan to boost industry, improve training, enhance women’s rights, tackle the housing crisis and the balance of payments problem etc, etc. Was this wrong?
As one who lost my seat in the House of Commons in 1983, I am well attuned to the facts. If Jeremy is elected leader, as I hope, the lesson to be learned from the 1980s is that all sections of the Labour party should support him in that role.
Branch secretary of Bassa 1998-2012, Southampton
Labour supporting friends are perplexed why I should be voting for Jeremy Corbyn. Yes, it is conceivably true that “annihilation” could happen, but is the Labour party of today worth saving?
Just over five years ago I was one of the leaders of the British Airways cabin crew union (Bassa) which fought a truly bitter dispute with our employer. We were not seeking more money or better terms, just trying to hold on to certain conditions that made our jobs worthwhile. Under the leadership of Willie Walsh, strikers were sacked by BA (myself included, after 35 years), suspended and stripped of promotion. I was interviewed under caution by Heathrow police. It was a very foreboding time to lead a union in a dispute with a blue-chip company.
Against this backdrop, the usual suspects in the media blackened the reputations of union representatives, with lurid and exaggerated front-page stories to ensure, publicly, we had very few friends. It was a lonely place. There was also the 2010 general election looming, when you would have expected, or at least hoped, Labour leaders to keep a low profile, but far from it. In the days leading up to the first batch of strikes (which had been called on an 92% majority, with a massive turnout), I sat in the office of Tony Woodley, then leader of Unite, as he fielded – and to his credit rejected – a series of increasingly desperate phone calls from Labour to call off the dispute.
Perhaps naively, I was shocked at what the Labour party had become. So intent on middle-road power that they would even step on, or over, the very people they were created to protect and represent. There were a few Labour MPs who actively supported us, including, not surprisingly, John McDonnell and yes, Jeremy Corbyn. I will now gladly reciprocate that support given to us in our moment of need.
Do I care if the leader’s election destroys what the Labour party stands for in 2015, in its moribund, forgotten-its-roots, middle-ground-hugging persona? No, not any more. I backed Kinnock when he cleansed the party of its militancy, I supported Blair in those heady days of the late 90s, but any semblance of a decent, caring honourable party that caters for the underprivileged, has long been swallowed up by the unseemly, even sickening quest for power, irrespective of who gets trampled underfoot, on the way.
In spite of Labour’s General Election surge and its continued polling strength – not to mention more than thirty u-turns Labour under Corbyn had already forced from the Conservatives before the election – the line persists in some quarters that Labour is not an effective opposition.
That line tends to be spouted either by those who think defeating Brexit is the only important task for the opposition – or by those who talk like it for factional purposes – ignoring the fact that Corbyn’s handling of the issue has been intelligent, nuanced and politically skilful.
So, as it’s the time of year for round-ups, here is a non-exhaustive list of sixteen u-turns that the Conservatives have been forced to make because there is an opposition party willing and able to stand for something different.
And for those who think Brexit is the only vital issue, the first three are Brexit-related:
- Brexit deal vote u-turn
- Brexit impact assessment u-turn
- European Court of Human Rights u-turn
- Dementia Tax u-turn (unprecedentedly dropped from the manifesto before the GE)
- Pensions triple lock u-turn
- Housing benefit cap for supported housing u-turn
- Self-employed National Insurance increase u-turn
- School meals cost u-turn
- NHS Professionals sell-off u-turn
- Police funding u-turn
- Fire safety in schools u-turn
- Grammar schools u-turn
- Abortion for Northern Irish women u-turn
- Winter fuel payments u-turn
- Universal Credit 7-day waiting period u-turn
- Universal Credit freephone u-turn
- Fox-hunting u-turn
- Diesel tax u-turn
- Manchester terror attack costs u-turn
- Prisoner vote u-turn
The government has been weakened by Corbyn’s Labour taking a clear, firm stand – and the Labour surge resulting from the party presenting a genuine alternative.
2017 has been a historic year for Labour and much of that can be attributed to Corbyn’s vision, leadership and his strength in standing firm against an unprecedented media onslaught – and it’s been a better year for millions of UK people as a result of Labour’s effective opposition.
The FT reports that senior executives at several of the largest US banks have privately told the Trump administration they feared the prospect of a Labour victory if Britain were forced into new elections.
It then referred to a report by analysts at Morgan Stanley arguing that a Corbyn government would mark the “most significant political shift in the UK” since Margaret Thatcher’s election and may represent a “bigger risk than Brexit” to the British economy. It predicted snap elections next year, arguing that the prospect of a return to the polls “is much more scary from an equity perspective than Brexit”.
Jeremy Corbyn gave ‘a clear response’ to Morgan Stanley in a video (left) published on social media reflecting anti-Wall Street rhetoric from some mainstream politicians in the US and Europe, saying: “These are the same speculators and gamblers who crashed our economy in 2008 . . . could anyone refute the headline claim that bankers are indeed glorified gamblers playing with the fate of our nation?”
He warned global banks that operate out of the City of London that he would indeed be a “threat” to their business if he became prime minister.
He singled out Morgan Stanley, the US investment bank, for particular criticism, arguing that James Gorman, its chief executive, was paying himself a salary of millions of pounds as ordinary British workers are “finding it harder to get by”.
Corbyn blamed the “greed” of the big banks and said the financial crisis they caused had led to a “crisis” in the public services: “because the Tories used the aftermath of the financial crisis to push through unnecessary and deeply damaging austerity”.
The FT points out that donors linked to Morgan Stanley had given £350,000 to the Tory party since 2006 and Philip Hammond, the chancellor, had met the bank four times, most recently in April 2017. The bank also had strong ties to New Labour: “Alistair Darling, a Labour chancellor until 2010, has served on the bank’s board since 2015. Jeremy Heywood, head of Britain’s civil service, was a managing director at Morgan Stanley, including as co-head of UK investment banking, before returning to public service in 2007”.
A step forward?
In a December article the FT pointed out that the UK lacks the kind of community banks or Sparkassen that are the bedrock of small business lending in many other countries adding: “When Labour’s John McDonnell, the shadow chancellor, calls for a network of regional banks, he is calling attention to a real issue”. And an FT reader commented, “The single most important ethos change required is this: publish everyone’s tax returns”:
- In Norway, you can walk into your local library or central council office and see how much tax your boss paid, how much tax your councillor paid, how much tax your politician paid.
- This means major tax avoidance, complex schemes, major offshoring, etc, is almost impossible, because it combines morality and social morals with ethics and taxation.
- We need to minimise this offshoring and tax avoidance; but the people in control of the information media flow, plus the politicians, rely on exactly these methods to increase their cash reserves.
But first give hope to many by electing a truly social democratic party.
Is the rainbow suggesting a new party logo?
Earlier this month, the FT noted that – as the latest national opinion polls show Labour eight points ahead of the Conservatives (though Yougov shows a far closer score) – some investors and business leaders are increasingly worried about the prospect of a leftwing UK government overturning decades of economic orthodoxy.
One of these, Ajit Nedungadi, a managing partner at TA Associates, a Massachusetts-based private equity group said. “Corbyn will be bad news for the industry. It’s black and white. There is no question. How can it be good news?”
Not everyone in the financial community views a Corbyn government in such grave terms.
Dean Turner, an economist in the UK investment office at UBS Wealth Management, believes investors have exaggerated the threat posed by Mr Corbyn, saying a government led by the Labour leader would not turn Britain into “Venezuela overnight”.
“Taxation as a share of gross domestic product would be at 1985 levels, and spending as a share of GDP at 1984 levels,”
After agreeing that it would be a “dramatic shift from where we have been for the last 30 years”, Mr Turner pointed out that many of Mr Corbyn’s policy proposals, such as renationalisation of the railways, would be seen as mainstream in other EU countries.
He also said that Mr Corbyn’s pledge to reverse cuts in corporation tax — raising the headline corporation tax rate from 19 to 26 per cent — was also relatively conventional.
Even under Mr Corbyn’s plan, for example, the UK would still have the lowest corporate tax rate in the G7.
Mr Turner also dismissed speculation about a run on the pound and the imposition of capital controls, even after Mr McDonnell said that Labour would have to prepare for both possibilities. “If we do see a weaker pound, the change would be gradual,” Mr Turner said.
“I doubt we would see the kind of falls we saw post-Brexit vote.”
A growing number are urging Government to move support from the Trident project and arms export industry to other sectors that meet real needs and use highly skilled workers for constructive purposes, designing emission-free rail, road and waterway vehicles, advancing renewable energy, particularly wave and tidal energy, engineering low emission new-build housing and retrofitting much of the housing stock.
- On the Lucas Plan website, following its 40th anniversary, we read that one of Labour Leader Jeremy Corbyn’s excellent reports, released during his 2015 election campaign, has put arms conversion firmly back on the political agenda.
- Following this, Steve Schofield, who is arguably the country’s leading authority on arms conversion, wrote “Defence Diversification or Arms Conversion? Why Labour needs a programme for nuclear and conventional disarmament“.
- The Campaign Against Arms Trade’s 2015 case study “Arms industry in the Clyde and renewable energy options” examined an arms dependent area in depth.
- The Unite trade union, withits dual commitment to world peace and disarmament and to the protection of its members’ jobs published “Defence Diversification Revisited” in March 2016. This looks at the history of “defence diversification” in the UK and elsewhere. At its July policy conference Unite committed itself to campaigning for a serious government approach to “defence diversification”, condemning the failure of successive governments to grapple with the issue after the Cold War.
- In 2016, MEP Molly Scott Cato commissioned a report “Devonport: Trident alternatives”, an overview of green employment potential.
In October this year, Andrew Smith cited a report from the Stockholm International Peace Research Institute which put the cost to tax payers of government support for the arms trade at more than £100m a year, adding, “This is to say nothing of the huge levels of political and logistical support that the arms companies are offered”.
Widely accepted figures from the Campaign Against Arms Trade (CAAT) are that arms exports only count for 0.2% of UK jobs and around 1% of exports. According to the MoD, 65,000 British jobs depend on arms exports and as the total number of jobs in the UK is just over 30 million the arms trade accounts for a tiny fraction of total employment.
And this manufacturing sector is not flourishing – the ‘defence’ industry now represents only 10% of all manufacturing.
A range of housing has been built on the Royal Ordnance site in Euxton, where the land is so contaminated that vegetable growing is forbidden. Last month, BAE, major employers in the area, announced that it will be cutting up to 750 jobs Warton and Samlesbury plants in Lancashire and up to 400 people will be made redundant in Brough, East Yorkshire.
The Trades Union Congress, passed a motion in October calling for the Labour Party to set up a shadow defence diversification agency to engage with plant representatives, trades unions representing arms industry workers, and local authorities. The agency would listen to their ideas, so that practical plans can be drawn up for arms conversion while protecting skilled employment and pay levels.
GND: “At the high skilled end (engineering and electronic) design; though to medium and unskilled work making every building energy tight, and fitting more efficient energy systems in homes, offices and factories . . . putting in place a new regional grid system, ranging from large-scale wind, wave and tidal electricity to decentralised energy systems that increase domestic and local energy production”.
We add to their recommendations the designing of emission-free rail, road and waterway vehicles and of advances in tidal and wave power, which have enormous potential but are currently lagging far behind solar, wind and hydropower technologies.
As Matthew Lynn wrote in The Spectator: “There might be a case for maintaining a modest, specialised arms industry to support our own army. But anyone who thinks an export-driven defence industry is important to the economy should stop kidding themselves”.