Chancellor of the Exchequer Rachel Reeves during a press conference following her statement to the House of Commons on the findings of the Treasury audit into the state of the public finances, July 29, 2024.
RACHEL REEVES is having us on. She is not prolonging austerity for the reasons pretended.
The Chancellor claims that it is imperative to balance the books to avoid a collapse in international money market confidence in the British economy. The ghosts of Liz Truss and Kwasi Kwarteng are conjured to underline the point.
It is for this reason that pensioners are to shiver in unheated homes this winter as their fuel allowance is cut, and it is for this that hundreds of thousands of children are to remain in poverty, thanks to the maintenance of the two-child benefit cap.
But even in its own terms — and this column would argue that the speculators should be faced down rather than pandered to under any circumstances — the argument is bogus.
The City itself, no less, has blown the whistle on Reeves and other Cabinet members who have echoed her line, including Commons leader Lucy Powell. Powell told the media that the new austerity was vital to stop a run on the pound.
A what? The Financial Times quotes a Paul Dale at Capital Economics as saying: “If there was a risk of a run on the pound I completely missed it.”
Image of the Green Party’s Carla Denyer on BBC Question Time.
“People can see through these pre-election tax bribes that will have to be paid for by cuts to our NHS and other vital public services,” says Green Party co-leader Carla Denyer.
Denyer said:
“People are crying out for investment in social care, in our NHS and in dentistry. We needed a ‘care full’ Budget but have ended up with a careless, reckless Budget.
“Chancellor Jeremy Hunt is attempting to bribe the electorate through tax cuts, which can only mean more pain for public services that are already on their knees.
“People won’t be richer, healthier or happier because of this Budget. People know a con when they see one.
“Councils are going bust up and down the country, NHS waits are getting longer, dentists can’t be found, while anyone travelling by train or bus, or visiting our town centres feels the lack of investment all around them.
“These headline tax cuts will do nothing to reverse the decade-long, real-terms wage freeze most workers have faced under successive Conservative governments.
“There is wealth in the UK, but it is distributed unfairly. Our economy is failing because our wealth, rather than circulating and benefiting everybody, is held in the stagnant assets of the super-rich.
“So, we needed a Budget that released the money available from a wealth tax to invest in the green jobs of the future, to cut NHS queues and restore nature and the places we live and work.
“That would have provided the vital public investment our country is crying out for.
“Now we have Labour huffing and puffing but offering no real alternative to being locked into a Conservative-forged cuts straitjacket.
“Thankfully, a General Election is coming where people can vote Green for the real change that will lead to a fairer, healthier and more caring country.”
