scotland

Reform Scotland’s corporation tax proposals are an exercise in promoting tax avoidance

Published by Anonymous (not verified) on Fri, 06/12/2019 - 12:00am in

A think tank called Reform Scotland has issued a report this morning entitled ‘Growing Up: A Corporation Tax For Scotland’.

There are things you need to know about Reform Scotland. The first is that it appears to be heavily influenced by the finance sector in Scotland. The second is that it very clearly has close associations with Charlotte Street Partners, which will ring alarm bells with those familiar with Scottish independence politics.

The new report shows both influences, combining the usual economic incoherence of the finance industry when it comes to tax with the type of economic policy for Scotland that those familiar with the Growth Commission might expect. What it suggests is that Scotland should (and I quote in full before discussing quite how inappropriate these policies are):

Create a corporation tax policy designed to encourage the creation of more businesses and which contributes towards a policy environment aimed at growing the number of entrepreneurs and higher earners in Scotland.

Once the tax has been devolved, the opportunity should be taken to design a policy that can attract more entrepreneurs, new businesses and, ultimately, more top rate taxpayers to Scotland.

One scheme that could be considered is to offer a zero rate of corporation tax for new businesses setting up in Scotland for a set period after they begin to earn profits.

Corporation tax is charged on profits (revenue less costs) and many new businesses may not make any profits to begin with, but a zero rate could be offered for a period once profits are being made. Such a policy would have no cost because it is applied only to new businesses setting up in Scotland. However, it is important to recognise that although a business may not pay corporation tax for a period, it contributes in other ways to public revenue, particularly through employment.

Such a policy would send a clear message that Scotland is open and a place to do business, as well as encouraging innovators to set up here and lay roots for the longer term. Further, policies could be designed to aid particular sectors, as well as to help grow existing businesses.

I have read the report. It is a very strange document.

First of all it is paranoid about the fact that Scotland has a high level of social security payments, without ever asking why.

Second, it is as paranoid about the lower number of businesses per head of population in Scotland when compared with the rest of the UK without ever asking why England's data is so heavily distorted by the machinations of the finance industry that generates vast quantities of apparent businesses that are just mechanisms for regulatory abuse.

Third, it thinks that government spending is directly financed by tax, when as a matter of fact this is not true as all serious economists now agree.

Fourth, it does not stop for a moment to wonder why Scotland might be so much better off without the income and wealth disparities that now blight so many countries, including England.

Fifth, it thinks that without more higher paid people (presumably in the financial services sector) there will not be the chance for Scotland to progress.

Sixth, it does not note that independence would be the solution to this, since Scotland could then have its own financial services centre and genuine civil service and other  such activities, now almost all lost to London.

In summary then, the economic underpinning of the report reflects deeply flawed logic in almost all it says before ever bgetting to the issue of corporation tax.

On that issue the report assumes that because Northern Ireland has devolved corporation  tax powers (albeit that it has never used them and cannot until Stormont sits again) so too should Scotland. This is a false comparison. If there was a justification for devolved corporation tax powers to Northern Ireland (and I have argued for a decade that there is not) it was to remove a border with Ireland, constant with the Good Friday Agreement. No such argument applies to Scotland. So the argument fails all logic tests.

Reform Scotland, however, clearly believe that tax at 19% (which is the UK corporation tax rate) is a major impediment to small business development. There is not a shred of evidence to support this. But they want it anyway.

And, what is more, they claim this is ‘costless’ bevcause they say it would only apply to new small businesses. At this point it is reasonable to ask how much they know about tax.

That is because the evidence is that when the whole of the UK offered a 0% starting rate of corporation tax it encouraged a wave of small business incorporation. I stress, these were new business incorporations, they were not new small businesses. The reality is that the vast majority of genuine small businesses not already set up for tax abuse purposes (as so many so called consultancies that disguise the reality of an employment  are) are in fact unincorporated. This pays in all sorts of ways for most genuine small enterprises. But if they’re offered a 0% tax rate you can be sure they’ll incorporate in droves. And they’ll be new companies. So they will qualify for the new rate. And they will avoid income tax as a result.

I can’t tell you how much this will cost precisely, because no one knows. I can assure you that there will be a significant cost. It is already thought tax motivated incorporation costs the UK as a whole about £3 billion a year now, meaning £200 million is likely in Scotland. It is reasonable to think a loss considerably in excess of this would result from the Reform Scotland plan.

So what Reform Scotland are actually doing is promoting a giant tax avoidance scheme that will be profoundly costly and will have to be rapidly unwound as the UK scheme from Gordon Brown has to be within a couple of years as it was such a mistake.

I have recommendations for Reform Scotland

First learn about economic realities.

Second learn about how tax really works.

Third do your research.

Fourth, don’t promote tax abuse: it really does not look good.

As proposals go, anywhere, in this election period this has to be one of the worst so far. This so called think tank really does need to think again.

An independent review of public procurement is badly needed

Published by Anonymous (not verified) on Thu, 05/12/2019 - 7:32pm in

For all those who think all is rosy in SNP Scotland, I hate to disillusion you. It isn't. I share this from CommonWeal's Ben Wray, published this morning, as evidence:

The decision of Calmac, a Scottish Government owned public company, to sue the Scottish Government over it's awarding of a ferry contract to outsourcing giant Serco is stunning, and should lead to big questions being asked about the procurement process, and how fit for purpose it is.

The contract, on publicly subsidised routes in the North between Aberdeen and Lerwick and Kirkwall, and from Scrabster to Stromness, is at least six-years long and worth £450 million. So in ferrying terms, it's a big deal. For the Scottish Government to choose to reject a bid that was more competitive on price from a public sector bidder which is already running ferry services on the west coast, and instead accept one from Serco, a company engulfed in scandal, the latest of which is making asylum seekers intentionally homeless in Glasgow as temperatures plummet, is bizarre. When you add in to the equation that the bidding process weights bids 65 per cent on price and 35 per cent on bid quality, then it does start to smell a bit fishy.

Hopefully the court case will reveal exactly why Serco was given the contract. But this fiasco should lead to bigger questions being asked about the procurement process. Why, for example, is the track record of the bidder not apparently considered? What about terms and conditions for the workforce? What about climate emissions?

Then there is a strategic question that should surely be considered. The Scottish Government should be looking to build up its own assets, and one of its assets is Calmac. Choosing to support and subsidise a multi-national that has no long term interest in Scottish ferrying beyond how much zero's it adds to its profits is nonsensical. An independent review of public procurement is badly needed.

The question is, of course, of broader importance. This election is about who should be running public services, amongst other things. And it should also be about how we choose outsourcers when that is necessary. And what this decision highlights is that the considerable opacity around this process at present leads to very odd outcomes, at the very least.

I agree with Ben: an independent review of public procurement is badly needed.

Private Eye’s Demolition of Cameron’s Book about His Government

Way back at the beginning of October, our former comedy Prime Minister, David Cameron, decided to give us all the benefit of his view of his time in No. 10 with the publication of his book, For The Record by William Collins. The review of it in Private Eye was not kind. Reading it, it appears that Cameron was deeply concerned to present a rosy, highly optimistic view of his years as Prime Minister. His was a government that gave Britain prosperity and growth, and had improved conditions in the NHS. The current, wretched economic and political situation is all due to everyone else, not him. It’s entirely false, as the Eye’s review made abundantly clear, citing Cameron’s book again and again as it he tries to claim success in tackling an issue, only to show the present grim reality and how Johnson actually made it all worse with Brexit.

The review, titled ‘Shed tears’, in the magazine’s issue for 4th – 17th October, runs

John Wilkes Booth’s assassination of Abraham Lincoln at a Washington theatre inspired the quip: “Apart from that, Mrs, Lincoln, how did you enjoy the play?” David Cameron’s autobiography leaves the reader asking: “Apart from Brexit, Mr Cameron, how did you enjoy being prime minister?”

“I liked it,” he declares, and so should we. At 800 pages, this account of his generally tedious career – apart from Brexit – is only 200 pages shorter than Churchill’s Second World War memoirs. Indeed, Dave may have originally matched Winston, for the Mail reported his publishers cut 100,000 words from the manuscript.

The verbose special pleading William Collins so sadistically allowed to survive tries to anesthetise readers into accepting that – apart from Brexit – they should applaud his playing at being prime minister too.

When Cameron stood for leader of the Conservative Party in 2005, he recalls, “Everyone said that I was too young. That I had no ministerial experience.” Instead of worrying that a gentleman amateur would lead the country to perdition, we should have rejoiced. “However new and inexperienced” he was, young Cameron saw himself “inheriting the mantle of great leaders like Peel, Disraeli, Salisbury and Baldwin.”

In 2010, with the world in crisis, he followed his illustrious predecessors and produced one of the “most stable and I would argue, most successful governments anywhere in Europe”. That Brexit has subsequently produced a paralysed parliament, culture war without end in England, the highest support for Welsh independence ever recorded, a revitalised Scottish National Party and a clear and present danger to the peace in Ireland must be someone else’s fault.

Only Ukraine is a less stable European country now. Not that Cameron can admit it. The Brexit referendum was “a sore confronted”, he says, as if he were a doctor who had healed wounds rather than a quack who had opened them. His greatest regret is for himself, not his country. “I lament my political career ending so fast,” he sighs. Brexit ensured that he went from private citizen to national leader to private citizen again in 15 years. “I was a former prime minister and a retired MP at the age of 49.”

He shouldn’t despair. His work experience on the British now completed, Cameron could be ready to hold down a real job should one come his way.

As for his supposed successes, in his own terms he would have a point – were it not for Brexit. “When I became prime minister my central task was turn the economy around,” he says. Now the British Chambers of Commerce reports that companies are living through the longest decline in investment in 17 years. He left Downing Street in 2016 “with the economy growing faster than any other in the G7”, Cameron continues, showing that whatever else he learnt at Eton, it wasn’t humility. The UK is now bottom of the G7 growth table, while the governor of the Bank of England is warning a crash out could shrink GDP by 5.5 per cent.

By the time Brexit forced his resignation, “hospital infections, mixed-sex wards and year-long waits for operations were off the front pages.” In the very week his book appeared, patients were preparing as best they could for a no deal Brexit cutting off drug supplies, while NHS trusts were wondering what would happen to the 8 percent of health and social care staff they recruit from the EU.

“It was clear to me that reasserting Britain’s global status would be one of our biggest missions in government,” Cameron says of the premiership, while failing to add that the Britain he left was both a warning and laughing stock to the rest of the world.

Regrets? Come off it. “One of the core ideas of my politics,” Cameron tells those readers who survive the long march through his pages,m “is that our best days are ahead of us and not behind us, I don’t think Brexit should alter it.” The bloody fool does not realise his best days are behind him  and he (and the rest of us) have nothing to show for them – apart from Brexit.

It’s not the comprehensive demolition that Cameron’s mendacious book deserves. It hasn’t just been Brexit that’s caused mass poverty, starvation, despair and misery to Britain. It was the policies he and his government both inherited from New Labour, and ramped up and added a few of their own. He continued the Thatcherite policy of the destruction of the welfare state and the privatisation of the NHS, as well as the wage freeze and pushing zero-hours and short term contracts. As well as allowing firms to make their workers nominally self-employed, so they don’t have to give them things like sick pay, holidays or maternity leave. Thanks to his policies, as continued by Tweezer and then Boris, a quarter of a million people have to rely on food banks for their daily bread, 14 million people are in poverty and an estimated number of 130,000 people have died after being found ‘fit for work’ by the DWP.

As for the tone of lofty self-assurance with which Cameron makes his assertions, that can only come from someone, who has enjoyed immense privilege throughout his life, and never suffered uncertainty due to the advantages bestowed by his background. He got a job at Buckingham Palace, remember, because they actually rang him up and asked for him. Thatcher’s former Personal Private Secretary, Matthew Parris, in his book Great Parliamentary Scandals observes that MPs, contrary to received wisdom, are not polished all rounders. Rather they are more likely to be the lonely boy at school. They have huge, but fragile egos due to the respect the public gives them tempered with the humiliation they receive at the hands of the whips and the awareness of how little power they really have. All the decisions are made by the Prime Minister. Parris’ own career as a cabinet minister came to a sharp end when he sent a rude reply to a letter sent to the former Prime Minister. Clearly, Cameron himself has never suffered, or appears not to have, from any kind of personal or professional uncertainty. He’s always been supremely confident in his own ability, choices and decisions. It’s this arrogance that has caused so much suffering to the country and its working people. But he certainly hasn’t suffered the consequences. Instead of trying to do something about the mess he created with Brexit, he left it for others to do so. And we’re still grappling with that problem nearly four years later.

Cameron’s was the start of a series of Tory governments that have actually left this country far worse than Tony Blair’s administration. Blair was determined to sell off the NHS, but he kept it well funded and he had some success in tackling poverty. It was the Tories who massively expanded the use of food banks instead of giving the disabled, unemployed and poor the state support they needed.

Cameron’s book is therefore one mass of self-delusion and lies. As have all the statements about how well the country is doing from his successors. Don’t vote for them. Vote for Corbyn instead.

 

Scots Tories Remove Candidate for Anti-Semitism

More on the hidden racism and bigotry seething away under the surface of the Tory party. A week or so ago, Mates Jacob got tired of James Cleverly’s decision not to do anything about the rampant islamophobia in the Tory party, and published his extensive dossier on it. Zelo Street put up the details of ten of the Tory politicos caught expressing bigoted views about Muslims. They happened to be local councillors, and had made the usual rants about Muslims being ‘barbarians’ and invaders, who forced their views on others through war and conquest. One also thought that immigration from Africa should be stopped, and famine was just nature’s way of dealing with overpopulation. Another was angry that the Muslim journalist Yasmin Alibhai-Brown was still in Britain. Which shows how perverse their bigotry is. Alibhai-Brown’s a committed anti-racist, but she’s no friend of Islamism and has criticised extremist Islam for its bigotry and repressive attitudes. Just as she’s also criticism anti-White racism, as well as that directed at Blacks, Asians and Muslims.

Mates Jacob stated that his dossier of 25 Tory islamophobes showed that the party was a hostile environment for Muslims. Miqdaad Versi of the Muslim Council of Britain commented

“Islamophobia is truly endemic within the Conservative Party & yet they still do nothing and ignore the problem … The scale of Islamophobia in the Conservative Party continues to be ignored by the mainstream political commentariat, with little scrutiny or accountability despite the Party’s total inaction & despite the depth of Islamophobia across all levels of the Party”.

Faced with its publication, the Tories were forced to act and suspend the 25, pending an investigation. A spokeswoman declared that the swiftness with which they were suspended show the seriousness with which the party took racism and discrimination, which they would not tolerate in any form. As Zelo Street drily commented, ‘Cue hollow laughter all round’.

And the blog concluded

‘Sadly, the reality of the situation is that it is only the Guardian and Mirror showing a willingness to follow up Mates Jacob’s work, and the impending election, that has spurred the Tories into pulling their fingers out. Moreover, there has been no action, and most likely will not be, against Jacob Rees Mogg, Priti Patel, and Michael “Oiky” Gove over their recent veering across the anti-Semitism line. Which leads to just one conclusion.

The Tory Party is institutionally racist from top to bottom. I’ll just leave that one there.’

See: https://zelo-street.blogspot.com/2019/11/tory-racism-bursts-into-open.html

Following this, Mates Jacob reported that he had uncovered a Tory Jew-hater. He’d been going through the alphabet, starting at ‘A’, and got as far as Aberdeen North before he found one.

This was Ryan Houghton, who the Scottish National reported had been suspended from the Tories because of comments he had a made several years previously. What were those views? Apparently, they were about gays as well as Jews, as well as Holocaust denial. The paper reported that

“Houghton said the National newspaper had taken a ‘selective look’ at comments he made in discussions about terrorism, LGBT rights and anti-Semitism and vowed to clear his name. He said that in the discussions seven years ago, when he was 20, he referenced the views of discredited historian and Holocaust denier David Irving but had made clear in subsequent posts that he was not defending them”.

Houghton tried to hang on as the prospective candidate by apologising unreservedly to the Jewish community, and saying that he was in contact with them. Put the Scots Tories didn’t accept it, declared his blogs about these issues were unacceptable, and suspended him.

Zelo Street notes that he wasn’t the only Tory to be suspended for anti-Semitism. Amjad Bashir, the Tory candidate for Leeds North East, had described British Jews returning from Israel as ‘brainwashed extremists’, He also accused the chair of the European Parliament’s Foreign Affairs committee of also being an apologist for Israel. Leeds has a large Jewish population, and that constituency was represented for years by Keith Joseph. The Tories really had no choice if they wished to retain the seat. They had to get rid of him.

Zelo Street also reminds its readers in this article that the Tories have made some very anti-Semitic remarks using coded language. Suella Braverman had ranted about ‘cultural Marxism’, a term that goes all the way back to the Nazis, and which has been used to refer to left-wing Jewish intellectuals. The smirking Priti Patel praised Viktor Orban, the anti-Semitic far right president of Hungary. Michael Gove confused Israel and Jews, which is a mark of anti-Semitism according to the definition of the International Holocaust Remembrance Alliance. But Benjamin Netanyahu has passed a law in Israel stating they’re one and the same, so he got a pass. And then there was Jacob Rees-Mogg calling Oliver Letwin and John Bercow ‘illuminati’, from the far right conspiracy theory about Freemasons, Jews and Satanists trying to take over the world. He also claimed that George Soros was behing the Remain campaign, which follows the Nazi conspiracy theories about Jewish bankers.

https://zelo-street.blogspot.com/2019/11/tory-anti-semitism-candidates-busted.html

As Jewish bloggers like David Rosenberg and Tony Greenstein have pointed out, anti-Semitism has always been far more prevalent on the right than on the left. Conservatives value tradition, and Jews have been seen as an invasive threat to traditional social structures, ideologies and values. In the 1930s the membership of the various British pro-Nazi organisations was largely made up of upper and upper middle class Tories. The Daily Heil is notorious for its support of Oswald Mosley and Adolf Hitler in this period. And certain sections of the Tory party had such a reputation for Jew hatred that in 1970 the Monday Club opened its membership books to the Board of Deputies of British Jews in order to show them that it didn’t contain any anti-Semites or Fascists. That didn’t stop the Monday’s Club’s deserved reputation for racism, stemming from its intense hostile to Black and Asian immigration. It’s reputation was so toxic that when David Cameron became leader of the Tory party, he made a great show of cutting the party’s ties with it as part of his campaign to clean out racists from the party. It doesn’t seem to have worked.

The Nazis and racists were still there throughout the 70s and 80s. I can remember the uproar during Thatcher’s tenure of No. 10 when the Union of Conservative Students decided to support racial nationalism as their explicit ideology. That’s the same one as the BNP and former National Front: you’re only British if you’re White. This provoked a crackdown by Norman Fowler, who was forced to merge them with the Young Conservatives to produce Conservative Future, a new youth organisation. The overlap between the Tories’ membership and that of far-right organisations was so great, that Panorama was going to screen a documentary about it, ‘Maggie’s Militant Tendency’. But that was never broadcast due to pressure from the PM in an act of explicit state censorship.

Despite their claims to the contrary, the Tories are still a deeply racist party, but this is overlooked by a Conservative press and media establishment, which shares and promotes their bigotry and hatred. And so it’s silent about the vicious racism within the Tory ranks, while hypocritically doing all it can to present Labour as an institutionally anti-Semitic party.

Mates Jacob Publishes His Dossier of Tory Islamophobia

Last Friday, Zelo Street put up a very informative piece about Mates Jacob’s decision to publish his dossier about the rampant islamophobia in the Tory party. Mates Jacob is the internet personality, who published details of the racism, anti-Semitism and islamophobia he found on Twitter and other internet groups for supporters of Boris Johnson and Jacob Rees-Mogg. And it was a very nasty, seething mass of bigotry and hate he uncovered. They demanded the usual stop to immigration before moving on to deportation and even assault and murder against Blacks and Asians, and particularly against Muslim politicians like Sadiq Khan.

Zelo Street reports that Mates Jacob had refrained from publishing his dossier on islamophobia in the wider Tory party in the hope that chairman James Cleverly would do something about it. Well, Cleverly and they had their chance, and they blew it. This is going to be another inquiry the Tories will hold after the election. So Mates Jacob has published it. And Zelo Street has in its turn blogged about a selection of Tory politicos in the dossier, and their vile views. They are:

Councillor Roger Taylor of Calderdale council,

Councillor Beverley Dunlop of Bournemouth, Christchurch and Poole council,

Councillor Christopher Newbury of Wiltshire council,

Councillor Danny Scott of Blackpool council,

Councillor Vera Walters of Walsall council,

Councillor Duane Farr of Bournemouth Council,

Councillor Alistair Redman of Argyle and Brute council,

Councillor Malcolm Griffiths of Redcar and Cleve Council,

Councillor Paul Marks of Kettering council,

Councillor Nick Colbert of South Somerset council.

They have been caught expressing such delightful opinions, like wondering why the anti-racist journalist Yasmin Alibhai-Brown is still in Britain, demanding an inquiry into Muslim rape gangs targeting White girls; worrying about Marseilles becoming Europe’s first Muslim majority city, describing Muslims as ‘barbarians’ and wondering why anyone has a problem with PEGIDA; stating that Muslims have been terrorising and seeking to dominate everyone who isn’t of their faith for over a thousand years through imperialist, colonialist wars; demanding a halt to immigration from Africa and describing famine as a natural method of depopulation; admiring the way the BNP doesn’t shy away from tackling issues others wouldn’t due to political correctness;  promoting a video from Paul Joseph Watson entitled ‘The Islamic State of Sweden’; describing the Afghan boy who attacked and injured four people on a train in Germany as ‘chopping them up’ and remarking sarcastically that it must have something to do with Brexit; and claiming that voter fraud was massive, when it’s so small it’s insignificant, and that it’s all down to women in hijabs handing over ballot papers to imams.

Now it’s true that Islam has expanded through imperialist wars, as has Christianity. But this is only part of the religion’s history, just as it is only part of Christianity’s.  And it doesn’t reflect the attitudes of all Muslims, many of whom are the victims of horrendous persecution, like the Rohingya in Burma and the Uyghurs in China.

The sage of Crewe concludes his piece by pointing out that these are only ten of many more in the Tory party, who hold similar views, and that Cleverly hasn’t done anything about them. He states

‘There is only one major political party that is institutionally racist. And it is the Conservative Party.’

See: https://zelo-street.blogspot.com/2019/11/tory-islamophobia-laid-bare.html

Well, there’s also the Brexit party and the remnants of what used to be UKIP, but it’s a fair point. The Tories have no business smearing Corbyn and Labour as anti-Semites, when there is so much more hatred and bigotry in their ranks. And they aren’t going to do anything about it, because as we’ve seen from the Hostile Environment policy and the Windrush deportations, and indeed from the contents of papers like the Mail and Depress, they use racism to promote themselves.

 

Lobster on the Economic Damage Caused by the Financial Sector

Lobster over the years has criticised the dominance of the financial sector over the British economy, and attacked the way this has actively harmed other sectors, particularly manufacturing industry. Thatcher, Major and then Tony Blair favoured banking and financial services over the industries, partly from economic illiteracy and partly from the conviction that Britain’s manufacturing sector was doomed. Thatcher believed very much in a strong pound and didn’t think it would harm the manufacturing industries. One of the few businessmen from that sector in Thatcher’s government tried to tell her otherwise, and show her that it would damage our exports by making them too expensive over our competitors. But Thatcher wouldn’t hear of it. She was convinced that it wouldn’t have any effect on manufacturing because the Germans had a strong manufacturing base, and they had a strong Deutschmark. The businessman tried to explain to her that the Mark was strong because they had a strong manufacturing base, not the other way around. But it was too much for the Leaderene’s brain and she refused to listen.

Thatcher also made it very clear that she was not going to help failing industries. What help there was, was supposed to come from the privatisation of state utilities and the operation of market forces. This was supposed to open up new forms of private investment. If they didn’t, then that company or industry was uncompetitive and doomed to fail. Meanwhile, the thinking went that the financial sector would take over from the failing manufacturing industries as a new source of wealth and employment. Thus Blair, Brown and the late Mo Mowlam opened up the ‘prawn cocktail’ campaign to win over the City of London, promising light regulation. One of the chief executives at the Bank of England, imported from America, was Deanne Julius, who said that Britain should abandon its manufacturing industries and allow them to be replaced by America’s. Instead, Britain should concentrate on the service industries.

This is another load of neoliberal economic rubbish that has been conclusively proved wrong. The Oxford economics professor, Ha-Joon Chang, in his book 23 Things They Don’t Tell You About Capitalism shows that despite Thatcherite dogma, manufacturing is still crucially important for the British economy. It only looks weaker than the other sectors, because it has grown at a slower rate.

Now Robin Ramsay in the latest update to his ‘News from the Bridge’ column in Lobster 78 has published a piece actually describing the active harm the privileged position of the financial sector has done the British economy as a whole. It’s in a piece ‘The Future of Britain’s Crisis’, which begins with a few sharp observations about the impotence of the House of Commons Security and Intelligence Committee. This is supposed to supervise Britain’s intelligence services, but its lack of effective power is demonstrated by Johnson’s suppression of the report into Russian influence in UK politics. From leaks to CNN and others, it shows that rich Russians have purchased UK citizenship and poured money into Tory coffers. He states that this is just part of the price Britain has to pay for Britain being one of the leading centres of money laundering. He continues

The idea that there is a structural conflict between the interests of the manufacturing economy and that of the City has been around since the late 1970s in my experience, and probably much longer. The conflict was rarely articulated by public figures beyond the British left but in 1980, with Bank of England base rates lifted to 14% ‘to control inflation’, Sir Terence Beckett, director-general of the Confederation of British Industry (CBI), told its annual conference that they had to ‘to take the gloves off and have a bare-knuckle fight’ with the Thatcher government. But no such fight ensued, Beckett resigned and in the following decade while the City boomed, British manufacturing shrank by about 20%.

The focus these days is less on structural conflict than on what is known as ‘over-financialisation’: roughly, that the financial sector gets to be too big for the rest of the economy. Recently a trio of economists/econometricians (from the Sheffield Political Economy Research Institute at the University of Sheffield) have tried to quantify the cost of UK over-financialisation and have concluded:

‘Our calculations suggest that the total cost of lost growth potential for the UK caused by “too much finance” between 1995 and 2015 is in the region of £4,500 billion. This total figure amounts to roughly 2.5 years of the average GDP across the period.

The data suggests that the UK economy, may have performed much better in overall growth terms if: (a) its financial sector was smaller; (b) if finance was more focused on supporting other areas of the economy, rather than trying to act as a source of wealth generation (extraction) in its own right.

This evidence also provides support for the idea that the UK suffers from a form of “finance curse”: a development trajectory of financial overdependence involving a crowding out of other sectors and a skewing of social relations, geography and politics.’ [Emphases in the original.] 

On similar lines, Grace Blakeley writes in her On Borrowed Time: Finance and
the UK’s current account deficit, that

‘Rebalancing the UK’s international position requires moderating the significance of finance within the UK economy and bringing asset price volatility under control, while nurturing non-financial exporting sectors.’

Ramsay concludes the article by remarking that it would be a difficult job convincing the political establishment of this, never mind the electorate. The failure of people working within London to understand that the capital’s influence and share of the country’s wealth is harming the rest of the country has helped the rise of the Scots and Welsh Nationalists, along with less significant movements like the Yorkshire Party, the Campaign for the North and Mebyon Kernow.

See: https://www.lobster-magazine.co.uk/free/lobster78/lob78-view-from-the-bridge.pdf

£4,500 billion lost to the British economy between 1995 and 2015! 

And never mind the millions of jobs lost, the destruction of working class communities right across the country from Cornwall to Scotland and Northern Ireland, lost skills and damaged lives!

All that simply so that Thatcher’s, Blair’s, and now Boris and Rees-Mogg and their chums in the City of London could make a tidy profit.

This is proof that we need a Corbyn government that will do something for public services and manufacturing industry, rather than more of the self-serving Tory economic policies that benefits only the City.

Ha Ha! Careless Riley Retweets Anti-Zionist Church Minister Who Heckled Corbyn

Oh ho! It appears Riley’s all-consuming hatred of the Labour leader is making her careless. Either that, or she’s stupid or hypocritical. Or both. On Thursday Mike put up a piece about a Church of Scotland minister, Reverend Richard Cameron, who heckled Jeremy Corbyn during his visit to Glasgow. The Rev. Cameron asked Corbyn if he thought that ‘the man, who’s going to be prime minister of this country should be a terrorist sympathiser?’ Yes, we’re back to the old Tory canard that Corbyn must be a terrorist sympathiser, because he wanted Britain to hold peace talks with Sinn Fein and the IRA, and wants a peaceful solution to the Palestinian problem. And that means talking to Hamas. It does not, however, mean that Corbyn supports either of those organisations. This subject has been dealt with extensively before, and shown to be false. Those involved in the Northern Irish peace talks on both sides, both Nationalist and Loyalist, have said that Corbyn was fair and not partisan. And the same has been said of his commitment to a just peace for the Palestinians in Israel. for this to happen, Israel has to hold talks with Hamas. Negotiating a peaceful settlement to anything means that you have to talk to the other side. You don’t succeed by only talking to your friends. But that simple strategy is lost on the Tories and Ultra-Zionists, who want to paint him as a friend of terrorists and murderers.

Duncan Dunlop, the CEO of Who Cares? Scotland was angered by Rev. Cameron’s question about Corbyn wearing a ‘jihadi’ scarf. In fact, it was one of the organisation’s own scarves and very definitely tartan, rather than the colours of Daesh or whoever. Corbyn was in the middle of explaining how significant the organisation and its Care Experienced people were when  Cameron interrupted.

And Rev. Cameron’s heckling has caused people to look at the minister’s own tweets, and what they found was, in the world of the Ferengi, ‘ugly. Vereeee ugleeee’. It seems that Rev. Cameron has bigoted views regarding Muslims and gays. Mike has put up a couple of these tweets, in which Cameron tells a Muslim that his religion has a problem with terrorism, and that gays ‘celebrate perversion’. And he’s also extremely anti-Zionist. For example, he tweeted a comment about Zionists stealing Arab babies to build the state of Israel. Zelo Street also reproduced a few more of his comments about Zionists. They include remarks that the ‘anti-Semitic card is overplayed these days’, accused one of his critics as spouting ‘Zionist propaganda’ and declared that he thought that Zionists had a lower IQ than normal people, and even sheep. And when asked by someone if it was possible to be a Jew and an atheist, he replied that it was perhaps possible if you were a Zionist. They don’t believe in God’s justice, according to the Minister, ‘but like the real estate deal’. He also talked about “Zionists going off at the deep end because Pope Francis uttered these 4 troubling words: ‘The State of Palestine.’”

This has led to Cameron being accused of anti-Semitism, but I don’t think that’s entirely fair. He wasn’t sneering at Jews in the above comments, or at least, not Jews as simply Jews. Nor does he sneer at Israelis, although he is certainly no fan of the Israeli state. He attacks Zionists. Zionism isn’t a race or ethnic group – it’s a political ideology. And as Tony Greenstein and David Rosenberg have shown on their blogs, along with many other Jewish bloggers critical of Israel, Zionism was very much the minority position of most European Jews before the rise of Nazism and the Holocaust. And some of Cameron’s comments are based on fact. Tony Greenstein posted up a piece a little while ago about how the early Israeli state stole babies from the indigenous Arab Jews of Palestine to give to rich Ashkenazi European immigrants because of their racist views of them. The Mizrahim were considered to be racially inferior to European Jews, and leading Israeli nationalists even called them ‘human dust’. But Cameron’s bitter remarks about Zionism are a problem for Riley and her bestie Tracy Ann Oberman, because they’re the kind of sentiments that have got people expelled from the Labour Party. Cameron’s comment about the anti-Semitism card being overplayed is the same criticism that got Labour MP Chris Williamson expelled. He complained that Labour had given in too much to accusations of anti-Semitism. The Ultra-Zionists hate and fear Corbyn not because he’s genuinely anti-Semitic – he isn’t – but because he wants a just peace with the Palestinians. That would mean abandoning Israeli expansionism into Palestinian territory and the dismantlement of the system of apartheid. It’s this which they decry as ‘anti-Semitism’, not hatred of Jews or even Israelis simply for being Jewish.

All of which puts a different complexion on Riley’s attacks on Corbyn and her support for the minister. Zelo Street comments

‘Do Rachel Riley and Tracy Ann Oberman support all of that? Probably not. The problem is that neither of them was looking before either Tweeting or endorsing. And the result of this lapse is that both end up looking even less credible than they did previously.

Rachel Riley’s Jezza bashing campaign is imploding. No outside assistance is necessary.’

And Mike concludes his piece with

When people with such obvious prejudices attack a politician like Mr Corbyn, they make it clear that it is their opinions that are at fault – not his.

Mr Corbyn walked away, showing he wants nothing to do with people like this.

I’m with him – wouldn’t you be?

See: https://voxpoliticalonline.com/2019/11/14/jeremy-corbyn-could-do-with-more-hecklers-like-this-they-make-his-case-for-him/

https://zelo-street.blogspot.com/2019/11/rachel-riley-endorses-anti-semite.html

Rev. Cameron’s bigoted views should be an embarrassment to those who see him as some kind of Conservative hero, and particularly to Riley and Oberman. If they support him, it shows that they are either careless or hypocritical. And Corbyn was entirely right to walk away from him. It wasn’t an active of cowardice, but simple pragmatism. Such bigots can’t be reasoned with, and there’s absolutely no point arguing with them.

Common Weal’s ‘Our Common Home’: the best Green New Deal plan yet?

Published by Anonymous (not verified) on Thu, 14/11/2019 - 6:48pm in

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scotland

I admit it’s one of those mornings when much blogging is hard, and it may stay that way for much of the day: there’s work to do (and yesterday also finished very late).

So let me make a recommendation for reading elsewhwere. Saw some readers will know I have long been a supporter of Common Weal, the Scottish think thank that campaigns for independence from a non-party perspective, and who embrace a radical vision for what that country might be.

Common Weal launched what they called  Our Common Home plan last weekend. I had rather hoped to be there, but family commitments intervened. Why do I think that this matters? Because, to date, I think this the best plan for a Green New Deal that I have seen. It is comprehensive, costed, and ambitious. I am aware that it has taken a great deal of work to produce. 

As Common Weal say:

We have a clear, coherent plan for structural change by transforming how we generate electricity using clean, renewable sources; by building our homes efficiently using non-polluting materials; by shortening supply chains and creating new, sustainable industries; by replanting our forests and reorganising our food production through a system of agroecology - all with the benefits of employment, prosperity and skills. This is a massive engineering project on scale with post-WWII governments level of investment and development in new systems and  infrastructure, healthcare and welfare. This is the Common Home Plan.

Yes, I know it’s about Scotland, and for many readers that seems remote from where they are. But the Green New Deal is a universal, and this plan is a ‘how to think about it’ manual for everyone else, I would suggest.

Might I suggest taking a look, and start exploring the ideas? Even buy the books. There are two. This is only about all our futures at the end of the day, after all.

Scared Johnson Now Reduced to Throwing Coarse Insults at Labour

Oo-er, Johnson must be getting scared! I have a rule of thumb that someone is winning an argument when their opponent turns to ad hominem insults or profanity. And by this standard, Johnson is losing, as today he hurled a coarse insult in Labour’s direction. Speaking at a manufacturer of electric vehicles today, our comedy prime minister was expected to make a speech referring to the ‘groundhoggery of Brexit’, the ‘horror show’ of a Corbyn government propped up by Nicola Sturgeon, and described the prospect of second referendums on Brexit and Scottish independence as ‘political onanism’. Onanism is a rather elevated term for masturbation. It comes from Onan, one of the figures in the Old Testament. ‘Groundhoggery’ simply comes from the film Groundhog Day, whose hero is condemned to relive the same day over and over until he finds some way of breaking the cycle.

The I’s Nigel Morris, in his article on the planned speech, ‘PM: I’ll pour cold water on Labhour’s Brexit ‘onanism’, said that Johnson would ‘risk accusations of resorting to crude insults’. Yes, he has. Mike put up a piece about it this morning, titled ‘Boris’ obscene insult with cement the nation’s opinion of him’.  Michael Rosen, the Children’s Poet Laureate, tweeted

Dear Dominic
Are you absolutely sure that I should drop one of these obscure obscenity bombs every few days?
Horatio pro fellatio
Boris

And the Independent commented that this wasn’t the first time Johnson had resorted to off-colour language in public. He described money spent on child abuse inquiries as ‘spaffed up the wall’, gay men as ‘tank-top wearing bum-boys’ and referred to the President of Turkey in a limerick with a word rhyming with ‘Ankara’. How statesmanlike! And I have to say, I find his smear of gay men rather bizarre. They’ve got a reputation for being rather well-turned out, otherwise we wouldn’t have the show Queer Eye for the Straight Guy, in which two gay men advise a straight bloke on how to dress better. And from what I remember, the tanktop was never an exclusively gay fashion. It appeared in the ’70s, and all kinds of men and boys wore it without any thought that it had anything to do with homosexuality. I had one. Lenny Henry had a joke about how he had one, and wondered why he couldn’t pick up women at the disco when wearing it. And it’s a bit rich for Johnson, who was educated at Eton, to make sneering remarks about homosexuals with the reputation public schools have for homosexuality.

Johnson was also expected to say that while Britain was admired and respected around the world, foreign countries would be baffled by our failure to get Brexit done. Mike concludes his piece by stating that

the leaders of those other countries that have caused Mr Johnson such concern will be even more “baffled” if he wins an election with language like this.

Boris Johnson’s obscene insult will merely cement the nation’s opinion – of him

Quite. Johnson is increasingly showing himself to be an incompetent buffoon, who can only stave off attacks on his government and conduct in office through coarse insult. And it belies the confidence the Tory press claim they have in a Conservative election victory. Today’s Times had its leading headline on the front page proclaiming that the Tories were 14 points in the lead over Labour. But yesterday’s I reported that there was confusion among politicians over the whether polls could be trusted.

Johnson’s little bit of crudity suggests he and his chief advisor, Dominic Cummins, don’t.

To paraphrase the old movie poster for the David Cronenberg remake of The Fly, they’r afraid. They’re very afraid.

Make them so and vote them out on December 12.

EL4JC Video Showing Just How Impartial the Beeb Isn’t

Mike over on Vox Political has reproduced a series of tweets showing a video produced by EL4JC. This is a graph showing the cumulative proportion of left, right and centre guests on various Beeb news and politics programmes. The columns in the graph increase as the figures for each day and programme is added to the sound of Greig’s ‘In the Hall of the Mountain King’ from the Peer Gynt suite. This ends by showing how massively biased the Beeb is in its selection of guests. Here’s a shot of the last image.

Embedded video

As you can see, the Beeb is massively biased in favour of the Right. Those guests, who are not from the Right are drawn far more from the Centre than the Left. One of those, who retweeted the image, Julie Houghton, commented

this is appalling. Retweet everyone and share. Sick of seeing right wing nutters having such a biased platform. Handed to them on a plate by the BBC & don’t get me fucking started on right wing lying newspapers, distorting the truth. Something has to change.

Yes, it does. And this analysis of Beeb bias won’t surprise anyone – not on the Left at least. Barry and Saville Kushner in their book, Who Needs the Cuts, tell how the Beeb on its news programmes always featured people supporting austerity to the exclusion of trade unionists, Labour politicos and protesters arguing otherwise. When these dissenting voices were allowed on, they were quickly silenced, or in some cases actually shouted down by the presenters. The media research departments at Glasgow, Edinburgh and Cardiff universities have also produced reports into Beeb political bias. They concluded that the Beeb is far more likely to have speaking on their programmes Conservatives and spokesmen from the City than Labour politicians and trade unionists.

But why this massive bias now? Mike also reproduces this image, containing a tweet from a former BBC newsman, Marcus Moore, and a graphic about the career of Sarah Sands, now editor of the Radio 4 Today programme.

View image on Twitter

View image on Twitter

Moore’s statement that this all follows Cameron’s decision to appoint John Browne, formerly of BP, to the government department responsible for recruiting management and senior executives from private business to reformed government departments also deserves comment. I don’t doubt that Moore’s absolutely correct in that the ultimate responsibility for all this lies with Cameron. But Tony Blair was also keen to have the BBC parrot lines spouted by New Labour. And the appointment of private business people to the heads of government departments was not only a New Labour corporatist policy, but also that of the Nazis in their promotion of private industry. Not that the Beeb wasn’t biased in favour of the Tories long before that.

So where should people go for proper information?

Mike suggests that people would be better served taking it from social media, and the independent sources that so terrify the establishment media. So much so that there are now groups like Stop Funding Fake News, who adopt a spurious concern to prevent people getting their news from extremist sources. By which they mean websites like The Canary, which supports Jeremy Corbyn, but is not ‘extremist’ nor does it retail false information. The establishment claim that people taking their information from online sites like The Canary is not only fueling extremism, it is also destroying the ideological consensus built by people all reading and watching the same newspapers and news programmes. In other words, they’re afraid that people are moving away from them and their influence is being undermined by their online competitors.

Good.

The lamestream media are all pushing, to a greater or lesser degree, the same Thatcherite policies that have done so much damage to our country, and have destroyed so many lives – of the unemployed, the poor, and the disabled. It deserves nothing but our contempt, and people are far better advised looking at excellent left-wing blogs and sites like The Canary, The Skwawkbox, Novara Media, Evolve Politics, Vox Political, Zelo Street, Another Angry Voice, the Disability News Service and so on.

But Mike’s piece also concludes with a tweet from Mike Smart, warning people only to take their anger out on Beeb news programmes. Otherwise they will play into the hands of the right-wing and corporate shills wishing to privatise the Beeb altogether.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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