Unfit To Govern

A survey of the service sector shows that it’s growth has slipped to a 13 month Low.  Many of the companies surveyed said cancelled public-sector contracts were beginning to hurt their businesses, forcing them to cut jobs.   This must cast further doubt over the private sector’s ability to provide jobs as government departments are shrunk.

The figures are worsened by the indications that there is also a slow down in consumer spending.

Thus the threat of a double-dip recession has intensified jeopardising hopes of a sustained recovery. This is exactly what Labour warned would happen if the cuts to our fragile economy were made too soon.

Source: Guardian

Today, Lloyds (41% taxpayer owned) posted a first half-year pre-tax profit of £1.6bn.  Lloyds is the 3rd bank this week to post positive news and follows Northern Rock (also taxpayer owned) and HSBC.

Part of the good news at Lloyds was due to job losses resulting in a reduction of costs by about £1bn.  Lloyds stocks are currently up 2.4% at 73.65 since opening. HSBC and RBS are down slightly.

Obviously these banks have been improving under the policies of a Labour Government. It will be interesting to see how the banks are doing this time next year (Aug 2011) after the Coalition policies have had a chance to bite.

Meanwhile RBS (Royal Bank of Scotland Group who also owns NatWest) is to sell 318 branches to Spanish banking giant Santander (I personally feel very sad about this as it’s yet a another part of British business being sold to an oversees business).

Main source: Politics.co.uk

The Centre for Social Justice accuses the government of a “blunderbuss” approach to reducing spending.  The group warned that Whitehall were in danger of applying a short sighted approach and end up axing schemes that are giving good value.

The group is suggesting a “more joined up” approach should be applied.

Some strange decisions have already been mentioned in this blog:
Government’s attempt to save £3m could cost many times this, 
Clegg’s Blunder during PMQ – ‘Illegal’ Iraq War (mention of withdrawn Forgemasters loan)

Source: BBC News:Spending cuts: Think-tank calls for joined-up approach

Born: born 23 May 1971
Where: London
Father: Sir Peter Osborne, 17th Baronet,
School: Two independent schools in west London; at Norland Place School in Holland Park and St Paul’s School in Barnes (near Hammersmith)
Further Ed: Magdalen College at the University of Oxford, where he received a 2:1 in Modern History

Osborne is the eldest son of four children and heir of Sir Peter Osborne, 17th Baronet, who co-founded the firm of fabric and wallpapers designers, Osborne & Little. Originally named Gideon, he changed his name to George when he was 13. In an interview in July 2005, Osborne said: “It was my small act of rebellion. I never liked it. When I finally told my mother she said, ‘Nor do I’. So I decided to be George after my grandfather, who was a war hero. Life was easier as a George; it was a straightforward name.”

He joined the Conservative Research Department in 1994 and became head of the Political Section. Elected as the Member of Parliament for Tatton, Cheshire, in June 2001, he succeeded the Independent MP Martin Bell, who had famously defeated the controversial former Conservative minister Neil Hamilton at the 1997 election. Osborne won with a majority of 8,611, becoming (at that time) the youngest Conservative MP in the House of Commons. At the 2005 election, he was re-elected with an increased majority.

George is married to the writer Frances Osborne. They have two young children and they live in London and Cheshire.

Following the 2005 general election, he was promoted to Shadow Chancellor of the Exchequer at the young age of 33 by the then-Conservative Party leader Michael Howard. His appointment to such a senior shadow cabinet post at such a young age surprised many Conservative MPs.

In 2009, he received criticism for the way he had handled his expenses, after he was found to have “flipped” his second  home, changing which property he designated as his second home in order to pay less capital gains tax. The Lib Dems estimated he owed £55,000 to the public purse as a result of this.

Osborne was appointed Chancellor of the Exchequer on 12 May 2010 and as per custom with Cabinet Minsters, was sworn in as a Privy Counsellor the next day.

On 24 May 2010, he outlined £6.2bn cuts. Among the bigger savings for this financial year outlined by Osborne were £683m at the Department for Transport, £780m at Communities and Local Government, £836m at Business, £670m at Education and £325m Department for Justice. Osborne said: “We simply cannot afford to increase public debt at the rate of £3bn each week. Our huge public debts threatened financial stability and if left unchecked would derail the economic recovery.” He continued saying “Public borrowing is only taxation deferred and it would be deeply irresponsible to continue to accumulate vast debts that would have to be paid off by our children, and our grand children for many decades to come.“^[

I know it’s unfair to write this in a profile but the cuts initiated in his emergency budget will have no effect on the wealth or financial status of George Osborne.

Source links: Tom Watson MP – George Osborne, Wikipedia – George Osborne, George Osbortne

The Education Secretary, Michael Gove, appears to have problems with his figures?  He rushed the ‘Academies’ Bill through Parliament on the understanding that over 1000 schools were ready to apply to be academies. However it has now been revealed that only 153 have actually applied and probably won’t get the go ahead before the start of the new academic year in September.

So what was the rush? Was this just another blunder by Michael Gove or was it more sinister, as suggested by Shadow Home Secretary and Labour Leadership Candidate, Ed Balls. As reported in the Guardian Ed Balls is quoted as saying “It seems to me that the real reason for the rush was to avoid proper scrutiny for a deeply flawed piece of legislation”.

Further reading here: Guardian  Left Foot Forward  Paul Waugh

In the climate of swinging Tory cuts we learn today that accounts released by the Electoral Commission show that the Conservatives spent £37.1m in 2009 compared with Labour’s £24.7m, an additional spend of over £12m.

The most amazing thing about it is that the Conservatives still didn’t manage to secure an overall majority despite the huge spending.  Looks like poor value for money spent.

For the record the Liberal Democrats received an income of £6.4m and spent fractionally more – £6.6m.

The commission also said that The British National party and the Christian party failed to submit their accounts.

Read the full article in The Guardian

The Coalition continues to bulldoze ahead cutting here and there without considering the consequences of their actions.  I came across this interesting blog by George Monbiot of the Guardian.  It’s worth a read as he explains how scrapping the Sustainable Development Commission (SDC) to save £3m is the definitive case of false economy.

George explains that the Commission’s latest (and last report) shows that even the modest measures that the previous government introduced to save energy and water and reduce waste have cut the state’s annual bills by £60m to £70m.  Furthermore that the Commission could have saved the public purse considerably more had it been allowed to continue.

He sums it up by writing “Scrapping the commission is stupid, irrational and counter-productive. It suggests that, for all its talk of listening and engaging, the new government can’t handle criticism and fears effective scrutiny”.

This looks like another blunder and once again causes me to ask ; “is our Government fit to govern?”.

Read George Monbiot’s whole blog post here.

Michael Gove is accused today of planning to let schools select pupils after a leaked government document questioned the future of the admissions code that stops schools favouring children they believe are more likely to produce better results.

See the full article from the Guardian here.

The BBC has reported that Lib Dem MP Tim Farron has attacked the 'toxic Tories'. He asserts that the reason David Cameron gave the Lib Dems such a good deal was "….first of all, we are providing some cover for them. The reality is that David Cameron has a toxic brand….His brand, including most of his MPs, are toxic."  He further said "Our identity is going to be potentially compromised if we are not careful."

This last point is so blindingly obvious.  Support for the Lib Dems is falling as reported in recent Polls. 

Tim Farron's comments is surely an indication that cracks in the support for the ConLib (ConDem?) coalition by the rank and file Lib Dem MPs are beginning to widen.  How long is it going to be before a significant group of Lib Dem MPs defies the Whip or defects to Labour? Nothing like this is going to happen until the Labour Party have got their leadership election out of the way in September. However, I predict that such an event will happen before the Xmas recess.

Read the full BBC News article here.

Politics UK [Paperback] by Bill Jones & Philip Norton
Paperback: 720 pages
Publisher: Longman; 7 edition (8 July 2010)

If you are interested in purchasing this book I would appreciate if you would click on the book displayed in our Books page.

Bill Jones is Professor and lecturer of Politics and History at Liverpool Hope University. He is the author of several well-known textbooks on British politics including the previous 6 editions of Politics UK, British Politics Today, and The Dictionary of British Politics. Philip Norton, Lord Norton of Louth, is Professor of Government and Director of the Centre for Legislative Studies at the University of Hull, as well as being a member of the House of Lords.  He is the author or editor of 28 books.

Politics UK  is an introduction to British politics, providing a thorough and accessible overview of the institutions and processes of British government, a good grounding in British political history, and an incisive introduction to the issues facing Britain today. With contributed chapters from respected scholars in the field and short essays on real-world politics from well-known political commentators (description provided by amazon.co.uk). This is a significant update to this book which was last published in 2006. New to this edition;

• A full new chapter covering the 2010 general election  – campaigns, contexts, and outcomes
• new chapter on 'Britain and the World'
• coverage of the banking crisis in Britain, the MPs expenses scandal and the Iraq Inquiry