Fury at Reeves’s war on the poor

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https://morningstaronline.co.uk/article/fury-at-reevess-war-on-the-poor

Chancellor of the Exchequer Rachel Reeves attending the Make UK Conference at the QEII Centre in London, March 4, 2025

UNIONS, MPs and campaigners reacted with fury after the Treasury backed plans to slash billions from welfare spending in an “outrageous attack” on the poorest.

Chancellor Rachel Reeves was today urged to tax the rich instead after government sources said the cuts were necessary as the “world has changed” since her autumn budget.

The furore was sparked after an early draft of Budget watchdog the Office for Budget Responsibility’s (OBR) forecast was leaked to the BBC.

It suggests that the £9.9 billion of headroom it said she had against her self-imposed fiscal rules in October have been wiped out by lower expected economic growth and higher government borrowing costs.

Prime Sir Keir Starmer last week announced a £6bn a year rise to military spending, to 2.5 per cent of GDP by 2027.

National secretary of the People’s Assembly Ben Sellers said that Sir Keir Starmer and Ms Reeves are not interested in the alternatives to targeting the disabled and most vulnerable as they “are wedded to a pernicious and militaristic neoliberalism which is failing all over the world.”

And a Momentum spokeswoman said: “The Labour government’s decision to prioritise military spending whilst cutting welfare budgets will bring further austerity to Britain.”

SNP Westminster leader Stephen Flynn MP accused Labour of “a total betrayal of what voters were told at the election.”

Original article at https://morningstaronline.co.uk/article/fury-at-reevess-war-on-the-poor

Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.
Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.
Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.
Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.

Continue ReadingFury at Reeves’s war on the poor

The government isn’t waging a war on poverty. It’s waging a war on the poor.

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One of the many occasions climate change denier and UK Prime Minister Rishi Sunak uses a private jet.
One of the many occasions climate change denier and UK Prime Minister Rishi Sunak uses a private jet.

https://leftfootforward.org/2023/10/the-government-isnt-waging-a-war-on-poverty-its-waging-a-war-on-the-poor/

Perhaps, there was a time when governments declared war on poverty. After all, no economy can flourish whilst masses are in poverty and can’t buy the goods and services produced by businesses. Now, the British state has declared war on low and middle income families.

The squeeze on workers has reduced their share of the gross domestic product (GDP), in the form of wages and salaries, from 65.1% in 1976 to around 50% at the end of second quarter of 2023. Between1980 and 2014, real GDP growth averaged around 2.2% per year and the economy has grown sporadically since then. However, most people have seen little benefit of that growth.

One study estimates that “if wages had continued to grow as they were before the financial crash of 2008, real average weekly earnings would be around £11,000 per year higher than they currently are – a 37 per cent lost wages gap”. The real average earnings are unchanged since 2005.

The war on the poor cannot provide economic or social stability. It has destroyed lives and inhibited social development. The institutions of government need to listen to saner voices, trade unions and non-governmental organisations to build a fair and just society through redistribution, higher public investment and by freeing themselves from the shackles of neoliberal economics.

Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward.

https://leftfootforward.org/2023/10/the-government-isnt-waging-a-war-on-poverty-its-waging-a-war-on-the-poor/

Continue ReadingThe government isn’t waging a war on poverty. It’s waging a war on the poor.