All posts tagged Gordon Brown

Labour Manifesto is misleading the British Public

Today Ed Miliband formally launched the Labour Election Manifesto 2015. See the summary at the BBC.

David Cameron has called it a con trick. (Hattip Conservative Home)

This con trick claim can be substantiated by reading the Manifesto. Here are a few snippets.

 

The Economy

On the Economy, Labour realize they have an uphill struggle. A couple of examples

“We will cut the deficit every year with a surplus on the current budget..”

The current budget deficit is the difference between tax revenue and current spending. To get the total deficit you need to add in (what used to be called) capital expenditure.

Remember Gordon Brown’s Golden Rule of only borrowing to invest?

Ed Miliband will return Britain to the days of 2001-2008, when Labour built a structural deficit of £50-£70bn. It is this reason that there is still a huge deficit, not the credit crunch. Labour still do not understand the public sector capital investment does not provide financial returns. New roads, schools and hospitals are not constructed to generate revenue like in a business but to provide social returns. Properly spent, overall welfare is increased, despite capital spending creating additional financial burdens in terms of staffing and maintenance.

“There is not a single policy in this manifesto that is funded by additional borrowing.”

This is grossly misleading. Labour are committed to at least maintaining current spending levels. When there is a deficit that means new additional borrowing is required, adding to the total debt. What Labour mean is that additional spending will be funded by additional taxes.

 

Discouraging entrepreneurship, jobs and growth

There is a subsection headed “We will back our entrepreneurs and businesses”

The measures are tiny. Instead here are a scattering of policy initiatives which will likely damage British businesses and help undermine economic growth.

  1. “We will reverse the Government’s top-rate tax cut.“

    British Entrepreneurs will be discouraged from investing in Britain. They will go elsewhere.

     

  2. “We will abolish the non-dom rules…”

    Ed Balls in January said

    “I think if you abolish the whole (nom-dom) status then probably it ends up costing Britain money”

    There on a lot of people who rely on the non-doms for jobs. Many invest money in Britain.

     

  3. “We will close tax loopholes that cost the public billions of pounds a year,”

    The tax system will become even more complex, especially for small businesses. This could reduce revenues.

     

  4. “We will end unfair tax breaks used by hedge funds and others“

    A major part of Britain’s exports come from the financial services sector. Labour’s antipathy to this sector threatens hundreds of thousands of jobs and may demote the City of London to a second tier financial sector.

     

  5. “We will increase the National Minimum Wage

    We will ban exploitative zero-hours contracts

    We will promote the Living Wage”

    The cost of employing people will rise. Businesses who do not toe the official line on the living wage might be unable to sell to the State Sector. Start-up businesses will be reduced and small businesses will not expand as inflexible employment laws will increase the risks of taking people on. The unemployed will become locked out of jobs. Youth unemployment will rise.

     

  6. “We will freeze gas and electricity prices until 2017“

    Prices have been rising because of the Climate Change Act 2008 that Ed Miliband was responsible for steering through Parliament. There is huge investment needed in new sources of electricity. That ain’t going to happen if profit rates fall. This is a policy to ensure the lights go out in a couple of winters time.

     

  7. “We will introduce a fairer deal for renters“

    This will be at the expense of landlords, many of whom rent as a business.

     

  8. “We will expand free childcare from 15 to 25 hours per week for parents of three- and four-year-olds, paid for with an increase in the bank levy.”

    See point 4 on the City of London

I am really concerned that a Labour Government will jeopardize the prosperity of this country, and my children’s future. Rather than learning from past Labour continue to deceive themselves through spin. Rather than and admitting that they got things wrong Labour blame others.

Kevin Marshall

by manicbeancounter on 13/04/2015  •  Permalink
Posted in Government Spending, Socialism
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Posted by manicbeancounter on 13/04/2015

https://manicbeancounter.com/2015/04/13/labour-manifesto-is-misleading-the-british-public/

Cameron gets the message on the Legacy of Labour

David Cameron yesterday started blaming the current deficit problems on the last Labour Government.  Benedict Brogan on his Telegraph Blog quotes Cameron

 “I think people understand by now that the debt crisis is the legacy of the last government. But exactly the same applies to the action we will need to take to deal with it. If there are cuts – they are part of that legacy.”

I have been thinking along the same lines for a while now. See for instance.

https://manicbeancounter.wordpress.com/2010/03/21/the-impact-of-labour-on-the-current-crisis/

https://manicbeancounter.wordpress.com/2010/03/22/the-economic-legacy-of-labour-a-summary-for-the-tories/

https://manicbeancounter.wordpress.com/2010/03/24/the-golden-rule-has-lead-to-economic-ruin/

https://manicbeancounter.wordpress.com/2010/04/04/labour-bashing-business-to-save-facing-their-awful-reality/

I believe it is as important for the future to understand the political element of how Labour went so wrong. The Golden Rule and the denial of the problem until it was too late have made a serious recession into a painful period of painful cuts in expenditure and large tax rises. This nation will be poorer for a generation as a result.

by manicbeancounter on 08/06/2010  •  Permalink
Posted in Conservative Party, Gordon Brown, Government Spending, Labour in Opposition, Spin (Propaganda)
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Posted by manicbeancounter on 08/06/2010

https://manicbeancounter.com/2010/06/08/cameron-gets-the-message-on-the-legacy-of-labour/

Please Pray for Gordon Brown

After the events of last week (see here, here and here), I feel quite sorry for there appears to be a divergence between the public and private face of Gordon Brown. Christians attempt to reconcile these differences in their own lives through prayer, studying the bible, public worship and seeking God’s unconditional forgiveness for when they have made mistakes, or erred in the smallest way. The Labour doctrine of spin, I would suggest, tries to fudge, evade and deliberately obscure anything that contradicts their message. When there are is strong underlying growth and charismatic leaders to promote populist policies, then this spin doctrine can carry people along. But when the main thrust of future policy is recognized to be inflicting hardship then it becomes quite difficult to constantly put out positive messages. Instead Labour have chosen to maintain the upper ground by a constant barrage of negative, exaggerated or misleading statements about their major rivals.

            Whilst many would recognise the impact the slogan of “Labour Investment verses Tory Cuts” has had on delaying recognition of the crisis in the public finances many months, what is not recognised is the impact on those in the party. If they put a slant on policy that is fundamentally at odds with what they believe – genuine public service – it will eventually be personally damaging. Maybe some, like Ed Balls and Peter Mandleson, who are more thick-skinned and less ideologically-motivated, the conflict between the good of the party and the greater good of the nation does not seriously trouble them. But Gordon Brown is committed to serving the country and has always believed he is the most able to lead it. Until the downturn this justified his ruthlessness in the pursuit of the top job. He is also astute enough to realise that not only did he get bank regulation wrong, but that his justification of structural deficits (see here) has left the government finances in their most wretched state for over 30 years. In so doing he knows that public services will have to be cut and then constrained for a generation.

            So when you hear of Gordon Brown’s throwing Nokias, or calling a straight-talking pensioner a bigot under his breath, please pray for him. Pray that he may know Christ’s love and forgiveness, and turn away from the lust for power and the love of spin. Most of all pray that he may have time for rest and reflection.

by manicbeancounter on 03/05/2010  •  Permalink
Posted in Christianity, General Election 2010, Gordon Brown, Spin (Propaganda)
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Posted by manicbeancounter on 03/05/2010

https://manicbeancounter.com/2010/05/03/please-pray-for-gordon-brown/

Conservative bloody battle imagery is self-defeating

Centre-Right’s “Labour is down, and its throat is exposed. Finish it.” imagery is quite wrong – it will just drive people away from politics altogether, Much like Foot’s “Thatcher-Tebbitism speech”.

In the final days it is worth emphasising the negatives of the Labour Party and after the election bringing people into a positive image of the challenges ahead.

THE NEGATIVES.

1. The Raiding of Pensions.

2. Creating a Structural deficit in the Boom years – This is the bit of the deficit that now needs to be cut. Labour has betrayed its core voters.

3. The selling of Gold reserves shows poor judgement.

4. The fact that Labour has only tiny positive things to say, and a huge amount of venom.

5. The poisoning of the civil service, by partisan decision-making and political appointees.

THE POSITIVES

1. Cuts in services must be prioritised.

2. Old-fashioned value-for-money needs to be the core.

3. Government should Serve the people, not the interests of party.

4. Diversity in provision should be encouraged to make the best use of everyone’s talents. (As opposed to constant initiatives from a few inexperienced spin-doctors).

The Conservatives final dash for power should lay the foundation for removing the divisiveness and nastiness of the Brown Premiership, along with sorting the parlous state of the finances created under the Brown Chancellorship. This will only happen if the supporters of this era are encouraged and able to join in a better way.

by manicbeancounter on 01/05/2010  •  Permalink
Posted in Conservative Party, General Election 2010, Gordon Brown
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Posted by manicbeancounter on 01/05/2010

https://manicbeancounter.com/2010/05/01/conservative-bloody-battle-imagery-is-self-defeating/

The Two Faces of Labour

The gaffe and very humble apology later by Gordon Brown may have a significant impact on the General Election. But, as I wrote on John Redwood’s blog, there is a deeper public v private face to the Labour campaign.

In recent years our politics has become too like those of the countries that have defaulted in the past – like Brazil, Argentina and like Greece has become now. It has become about presenting a public face of concern and competency, whilst privately just wanting power and prestige. It is also about defending of that image by denigrating the opposition and distorting the reality of events to an extent that George Orwell would not have imagined.

 As a result, we had a structural deficit built up in the boom years and a refusal to recognize that growing debt was an issue. We have delay upon delay about tackling the issue, or even recognizing the problem. Now every minor proposal to tackle it is met with cries of destroying public services and ruined lives.

 The false face of the boom years and the delayed recognition means we have a much bigger problem. It will mean more painful cuts and more growth-damaging tax rises. However, like with personal debt problems, being open and honest there is a severe problem is the first step to solving it. Then you prioritize what is most important, both by area and within each area. That priority should be based on meeting needs – on serving the public – and not on maintaining jobs.

 As part of that recognition, we should divide the deficit between the structural part (using OECD guidelines) and the cyclical part.

 Like with a financial plan for families who have got into debt, we can see, year-by-year, how that deficit is reducing. It should not be enshrined in law, but at least will show how the pain of narrowing the deficit is bringing the nation back to financial health. Then we can also explain how targets are not being met – e.g. through growth faltering, or failing to meet targets.

We need, as a nation, to admit to the false face that all put on. We should now shun the spin, and recognise the poor state of the public finances so that we can repair the damage with the minimum of adverse consequences.

by manicbeancounter on 28/04/2010  •  Permalink
Posted in General Election 2010, Gordon Brown, Government Spending, Labour in Opposition
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Posted by manicbeancounter on 28/04/2010

https://manicbeancounter.com/2010/04/28/the-two-faces-of-labour/

Why Labour has not the Courage to cut Public Expenditure

18 months ago, I voted on the Congestion Charge. I went into the ballot box having been promised  

 ‘There’s no Plan B. If we vote NO in December the money goes back to Government, all £3 billion of it.’

  See wevoteyes facts 09 Nov 08

I was one of the 812,815 who voted against, a staggering 78.8% of the votes cast.

Depite this promise, six  months later Manchester gets the Metro extensions – the big ticket item. Costing £1.4bn. South Manchester Reporter had the story here.

 

We now have a huge deficit to tackle. If Gordon Brown cannot keep to a firm promise in the face of strong opposition, how resolute will he be on the unspecified commitments to cut the deficit?

 NB the pdf is from wevoteyes.co.uk. This website has now been taken down. For the full story see http://en.wikipedia.org/wiki/Greater_Manchester_congestion_charge

by manicbeancounter on 27/04/2010  •  Permalink
Posted in General Election 2010, Gordon Brown, Government Spending, Manchester Congestion Charge, Uncategorized
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Posted by manicbeancounter on 27/04/2010

https://manicbeancounter.com/2010/04/27/why-labour-has-not-the-courage-to-cut-public-expenditure/

Iceland’s Volcanic Eruption in Perspective

A couple of days ago I wrote on John Redwood’s blog

“Nowadays we appear to be too risk averse. The two examples of aircraft suffering from engine failure as a result of flying through an volcanic ash clouds were both (most probably) within a few miles of the volcano. The current volcanic particles could be bigger, but the density of the clouds will be lower a thousand miles or more from the volcano. The risk to an engine going down is very small, especially if the more concentrated areas are avoided.”

In today’s Times, under “Government ‘too cautious’ over ash cloud, Adonis admits” we have the following:-

“Britain was among the last European countries to lift flying restrictions as the first flight touched down at Heathrow just before 10pm yesterday.”

Last night the Civil Aviation Authority accepted evidence from airlines and manufacturers that flights could pass through low-density ash cloud without risking passengers’ safety”

“Mr Brown said: “You have got to make sure that people are safe and secure.”

“We would never be forgiven if we had let planes fly and there was a real danger to people’s lives.”

 

I am not a scientist, merely an accountant who tries to put things in perspective. What drives Gordon Brown’s thinking is not to be perceived to be taking risks. This has cost us dearly in the reaction to terrorist attacks (even incompetent ones like the shoe-bomber and someone setting fire to their underpants); the reaction to swine flu and the reaction to climate change. Good decision-making is not a matter of how it will be perceived, or waiting until the evidence all goes one-way. Good decision-making through assessing the magnitude of risks with limited information.

by manicbeancounter on 21/04/2010  •  Permalink
Posted in Climate Change, General Election 2010, Gordon Brown
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Posted by manicbeancounter on 21/04/2010

https://manicbeancounter.com/2010/04/21/491/

The Golden Rule has lead to Economic Ruin

The current financial debt crisis can be laid at the door of the Golden Rule and its interpretations. It states

“The Golden Rule states that over the economic cycle, the Government will borrow only to invest and not to fund current spending.

Therefore, over the economic cycle the current budget (ie, net of investment) must balance or be brought into surplus.”

This gave two consequences for the UK.

1. For a number of years there was a deficit to finance the creation of assets which would give non-monetary returns.

2. This deficit increased the nominal National Debt faster than the nominal growth in GDP.

That is the new assets were either in the category of having no significant financial returns (such as schools or hospitals) or had financial returns that would never cover the capital cost.

In terms of level of public services, the country is probably benefitting. But we entered the severest downturn in 60 years with a structural deficit. Yet these assets created liabilities as well. There are the running costs of the new assets and there is the interest on the debt. Furthermore, there are a huge number projects financed by Public Finance Initiatives (PFI). That is the Private Sector meeting the initial capital cost and charging for the flow of services.

The consequence is the UK entered the severest downturn in 60 years with a structural deficit. This was for the financing of “investment”. Further, each addition to the capital stock added to the Nation’s liabilities. For a new school or hospital to deliver its’ stream of benefits requires staff and maintenance.

The Golden Rule turns out to be far from Prudent, because it was not for investment in the accounting sense. That is assets acquired with expectation of a future stream of revenue generation or cost savings. Rather, the acquisitions were liabilities. Under Labour, we have acquired extra debt to pay out extra money year after year. Gordon Brown took a gamble with the Nation’s finances, by failing to understand the term “investment”. It should not come as a shock that in the long term it would unravel.

For clarity, here is a simple analogy.

1. Someone sets up as a plumber. They acquire a van to transport themselves, tools and equipment to places of work. The van has running costs, and also there is a loan to repay. But it enables chargeable work to be undertaken. It therefore enables or augments an income stream by an amount that is expected to exceed the cost.

2. Someone owns a basic low-cost reliable car, acquires a new 4×4, partly financed by a loan. The fuel, servicing and insurance all go up, along with the finance cost. It may increase their standard of living, but substantially increases that person’s outgoings.

Most Government “investment” is in the second category. It may provide services that people individually could not afford, but increases the sense of well-being. However, if debt financed, will just result in extra costs.

by manicbeancounter on 24/03/2010  •  Permalink
Posted in Economics, Gordon Brown, Government Spending, Spin (Propaganda)
Tagged , ,

Posted by manicbeancounter on 24/03/2010

https://manicbeancounter.com/2010/03/24/the-golden-rule-has-lead-to-economic-ruin/