Monday, 30 October 2017

While the government will want to clear up its messy year of Finance Bills with an orderly status quo Budget, it needs to be bolder and start investing

Next month is Chancellor Philip Hammond's first Autumn Budget. Yet the pomp for the event might be diminished by the fact that the previous finance bill will only just reach it's third reading this Tuesday.

The Chancellor's Spring Budget had been one for pluggling holes. There were Reliefs for those affected by business rate changes. A tax rise for the self-employed (on which he later u-turned). And there was spending - in the millions rather than billions - across key areas like health and social care, construction and education.

All of these came as the clearance of the debt and deficit, and restoration of growth - the long term promises of the Conservatives - remained a long way from being a achieved.

With the truncated Parliamentary session, the Finance Bill reappeared in the Summer once the new MPs took their seats. It has a been a messy and confusing year that will have left many in confusion as to what is and isn't in the Treasury's plans.

The first obstacle the government must navigate is the amendments to the Finance Bill. Labour and Cooperative backbencher Stella Creasy put forward a series of amendments that press the government to action on tax evasion and the exploitative gains made by those corporations who engaged in PFI, private-public investment schemes under Blair and Brown.

These are yet more subjects on which the Tories are divided. And Labour pressure, with Conservative backbench support has ensured that changes will need to be made to the Universal Credit rollout come the Autumn Budget. 

That will have to mean another government U-turn - a term that is coming to be the lasting testament to how ineffective Conservative government has been. They promised stability and only produce confusion.

To that end, the instincts of Hammond and the government will surely be for this messy year of Finance Bills to be tied off with a clean, efficient budget that gets everyone on the same page. To resist change. Status quo may well be the order of the day.

And yet, action is needed. Globalisation continues to reek havoc on communities, as outside of the rich bubbles were technology and advantage and money clusters, investment is dire.

As Mariana Mazzucato stresses, the big private players do not take risks and will not redress this balance themselves. The state needs to invest and create markets, to be the pioneer that the private sector simply isn't.

The 2017 budget has to tackle the lack of opportunities, the need for innovative new industry with the training to staff them, and the cost of living that suppresses and excludes so many. Government can only achieve these things if the public sector steps out in front and takes the lead.

Monday, 23 October 2017

The reality of austerity Britain: work and life are now poor, precarious and uncertain

People gather in Manchester to march against austerity past the Conservative Party Conference 2017.
The reality of the Tories' austerity Britain was exposed in the figures released last week. Those figures revealed that wage growth remains poor at 2.2%, barely above pre-crash levels and falling behind consumer prices rises, with inflation now at 2.9%.

But what do these figures tell us about the big picture of austerity Britain?

Consider Theresa May's response when confronted on issues like poor wages - unemployment is falling. Whenever the PM is confronted, she turns to the unemployment/employment figures. The trouble is, you can't just say that employment is in itself a fix.

Especially when it evidentially isn't the case. Britain might have it's highest recorded employment and lowest unemployment, but what do we know about the quality of life that is providing? What we know, is that working poverty is now very high.

There is no essential truth that employment fixes people's problems or empowers them. Work can only bring liberty under certain conditions.

And austerity Britain is a land of precarity, where social security has been replaced with - or perhaps, outsourced to - uncertain and scarce low paid work. All of which is now threatened by automation, and pits ordinary people against each other in long applicant lists.

This is only heightened by the flaming wreckage of the welfare system. People in need are left without support, and in mounting arrears, for a month and a half when claim out of work support - a situation the government are struggling to even convince there own party to support.

Inevitably, Brexit comes into this. It is important that the ideological case behind leaving the European Union was never made clear. But it's argument for 'freer trade' and less regulation, is a pitch to go further down the road on which we currently travel - to a place of permanently less surety or stability.

But why would those who have campaigned so hard for Brexit want this?

Pete North, Editor of LeaveHQ, blogged how - what he himself described as - the long, painful years of austerity still to come, will in fact be a price worth paying (by ordinary people whose lives would be left in tatters) to accomplish a kind of vague social change, that displayed for more ignorance about young people than any comprehensive thought on the subject.

The governments of David Cameron and Theresa May have pledged a more compassionate conservatism, that takes care of those most in need, while being responsible with the public finances. They have been failures on both fronts.

None of their measures have delivered on even one of these aims. The debt continues to climb. Meeting deficit targets is still delayed. All the pain of austerity and ordinary lives dropped in uncertainty, and the government has nothing to show for it - neither in the public finances or in producing a compassionate society.

Seven years of Conservative government has been a diastrous experiment. It's time to get off this road and find a new way forward.

Monday, 16 October 2017

Labour and the Basic Income: To make automation work for people, first the relationships between people and society, work and welfare, must be reframed

To tackle the problems of the future, first we need to rethink our approach to work and welfare. Photograph: Job Centre Plus by Andrew Writer (License) (Cropped)
In the passed few weeks, the Labour Party has been talking up it's determination to make technological advances work for ordinary people, rather than disenfranchise them.

For the party leader Jeremy Corbyn, the focus has been on the workplace. Corbyn has raised the question of how to use cooperative collective ownership of businesses by workers to put automation in the hands of people - rather than let automation be their replacement in the hands of their bosses.

Meanwhile, Shadow Chancellor John McDonnell has focused on the state role. McDonnell, talking at a Manchester anti-austerity event, spoke of a renewed drive for public investment as the first step to anchoring technology to people and their interests.

It was left to the Labour National Youth Conference to contribute the third integral component, with the future of the Labour Party backing a motion in support of the universal basic income.

The motion acknowledged both the problems with Britain's welfare system and the concerns for the future being raised by the rise of automation. To answer these, the LNYC motion presented the basic income.

The basic income is a universal form of welfare, a payment received - with very little bureaucracy - by all citizens. It is designed to cover the basic essentials of life, so as to end poverty and it's coercive power over how people choose to live.

Labour usually falls in with the same basic conceit, shared by most right wing liberal groups, social democrats and worker's parties: that life begins and ends with work - or rather, with wage labour. That work of this sort is a fundamental component and an axiom in the building of any social model.

Work, to 'earn' the right to live in exchange, is treated as a value. As a moral component essential to any social contract. But for progressives, this cannot be the last word.

If we are to have true social progress, we must start first with a base of no poverty and no homelessness. We must begin with the right to live. If we care about choice, about liberty and justice, we must not let coercion remain the starting point for engaging with society.

For the Labour Party in particular, embrace of that wage labour conceit verges on hypocrisy - the party of workers buying into the 'moral value' of 'working for a living'.

There has not been nearly enough scepticism of it, or recognition that it is a value of limited scope. Restricted to the specific benefits it delivers within a specific social system. A system in which even certain forms of work are prioritised above others, and were these forms of work are made nearly mandatory.

Right now there is a crisis in welfare - but not the way the Conservatives think. The crisis in welfare is one of dignity. Conservative cuts have strangled Britain's social security safety net.

That has left vulnerable people at the hands of an exploitative market and put through probing, demoralising, assessments by organisations with weak ethical codes and goals that run counter to the wellbeing of people who desperately need support.

If Labour are really going to reform this country, to tackle these kinds of injustice, they first need to get the foundations right. By no means is basic income a panacea. But it is a fairer and less coercive starting point for a society.

As more and more work becomes automated, as paid work becomes more scarce, we need that fairer starting point as a basis upon which to build a new kind of relationship between people and society - one that acknowledges, from the start, their basic right to live.