austerity

Jeremy Corbyn on Austerity

For many people, this is no recovery at all

George-Osborne_2352896b

George Osborne was in self-congratulatory mood in the House of Commons this morning as he delivered his Autumn Statement. Growth has returned to the economy; borrowing is falling; we are on the road to recovery. Yet the complacent Chancellor failed to recognise the cost-of-living crisis that is engulfing hard-working people in Birmingham and across the country. For many people, whose wages remain low while prices soar, this is no recovery at all.

Osborne remains convinced that his economic strategy is working, and reeled off statistic after statistic that seemed to prove his point. The reality, however, is that despite growth returning, the economy is still under-performing – growth is significantly lower than it was forecast to be in 2010, and the deficit will still be £79 billion in 2015, after we were promised it would be eliminated by then. Three years of stagnation means that Osborne has missed all of his economic targets, and people are suffering as a result; for 98% of the time his government has been in office, prices have risen faster than wages. This is not a recipe for economic success. The plan has been hurting, but it has not been working. While those right at the top continue to  enjoy their tax cuts, everybody else has to contend with bills becoming more unaffordable and stagnating wages, leaving people up to £1,600 a year worse off under the Tory-led government.

Busy patting himself on the back, the Chancellor offered little to those whose living standards are suffering the most. On energy costs, he stopped short of matching Labour’s promise to freeze prices, meaning people in our city will be forced to choose between heating and eating this winter and next; there are more welfare cuts to come, plunging vulnerable people further into difficulty; there remains no commitment to introducing a living wage, or even a substantial increase in the minimum wage. Every time Osborne has the chance to make life easier for ordinary people, he makes things worse. There were some token measures such as the cancellation of the planned rise in fuel duty, but really this was an Autumn Statement that did nothing substantial to help ordinary people. Even if the economy continues to grow, Birmingham residents will rightly have little faith in a plan that does nothing to improve their lives.

Today’s statement did not change anything. The government continues to allow those at the top to get richer while ignoring the declining living standards of the majority of people. The economy may finally be growing again, but George Osborne is still doing nothing to ensure that the recovery reaches everybody. For many people in Birmingham and in Britain, this is no recovery at all.

Why we need to talk about welfare

The true depth of the Tory policies that make the lives of those poorest, more wretched become clearer on a daily basis.

You will have seen my video highlighting the need to campaign for a fair deal for Birmingham, and within it, details touching upon those groups beginning to feel the real bite.

In ‘wake up and smell the roses‘ I reflect on research published by the Financial Times that uncovers the continuing divide between rich and poor, and the way in which the Tory led welfare reforms are impacting harder on the North than on the leafy suburbs in the South. We have seen this unfairness in the cut of £149 per person in Birmingham compared to just £19 in Berkshire.

Cameron’s outright attack on the poorer parts of society is vicious and vindictive, turning neighbour on neighbour and communities on communities. As an answer to the economical crisis it offers no credibility.

The right wing ideology being purported is dangerous and might easily play into the hands of fascist groups preying on the vulnerabilities of both those struggling to survive and those who feel others are getting more than they deserve.

The Telegraph today report that free school meals could soon be scrapped and people paid to look after elderly neighbours as councils take desperate measures to deliver a “tidal wave” of spending cuts. All councils face desperate decisions about the services that people value and rely on with the unfair cuts being imposed by central Government.

Hilary Wainwright writes for CLASS and argues that “we are facing government policies of such inhumanity that if they are allowed to be carried through, we will look back in years to come with deep horror and shame. From the attacks on disability benefits to the bedroom tax, these measures return us to the kind of society where poverty was blamed on the poor and gross inequality was accepted as an economic inevitability.”

The Myths of Welfare has just been released and as Wainwright argues, “it exposes the tall tales used to disguise the ideological dogma of government attempts to replace our welfare state with US-style residual ‘relief’  for the poor”… it is well worth a read and provides hard alternatives to the war on welfare that Cameron dictates.

Birmingham, as a result of Cameron’s welfare reforms are facing a total annual impact of £419m with the total annual impact on each working age adult being £607. Social housing tenants in Birmingham face cuts to housing allowances totalling £10.15m, reductions in tax credits of £92m, in disability benefits of £30m and to incapacity benefit of a whopping £92m.

We are not all in this together and never forget it.