Green Party leader Caroline Lucas MP – Cuts are not an economic inevitability. They are an ideological choice. Politicians of all parties are now sharpening their axes to slash public spending, forcing those on lower incomes, who depend on public services the most, to pay the highest price for the recent excesses of the bankers.

There is a choice. We should ask those best able to pay to foot the bill through fairer taxation. That’s the challenge I’m issuing: for that political choice to be made. It must be clearly asserted that we are not all in this together: that some had more responsibility for this crisis than others, and some benefited more from the boom that preceded it. Those who enjoyed the largest benefits must pay up now. For that to happen, fair taxes, not cuts, must become the new big idea to replace today’s callous and uncaring cuts fanaticism.

The UK is currently one of the most unequal societies in Europe. But the financial crisis offers us an opportunity to rebalance the tax system. We could do it, for example, by applying the 50% tax rate to incomes above £100,000, abolishing the upper limit for national insurance contributions, raising capital gains tax to the recipient’s highest income tax rate, and helping lower earners by reintroducing the 10% tax band.

Moreover, the huge extent of tax avoidance, tax evasion and unpaid tax in the UK economy is truly staggering.  HM Revenue & Customs themselves admit that tax evasion and avoidance together come to at least £40 billion a year, whilst in November 2009 they also admitted there was £28 billion of unpaid tax owing to them. Shocking as these numbers are, some experts have suggested that tax evasion – that’s deliberately breaking the law to not pay tax – might be as high as £70 billion a year, and tax avoidance – in other words, exploiting loopholes in tax law – might be £25 billion a year. That would take the total target for necessary action to collect tax due and owing to more than £100 billion a year

Whilst these appalling losses to the nation’s coffers are occurring, HM Revenue & Customs are pursuing a programme of job cuts which will ultimately reduce their own staff by 20,000 – close to one quarter of the total.(ht2 Derek Wall)

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Green Party leader Caroline Lucas MP will this week tell the coalition government there is “no good reason for any cuts in public expenditure during the life of this parliament.”

On Monday 21 June Britain’s first Green MP is to issue a new report – Cuts: the callous con trick (1) – in which she will make the case that cuts are unnecessary “because the economy could instead be rebalanced using additional tax revenues.”

The report, written jointly with tax expert Richard Murphy and Colin Hines of Finance for the Future, condemns the government “for failing to put to the electorate the option of fair tax instead of cuts,” and accuses ministers of increasing the likelihood of a double-dip recession.

Complete Report at http://www.financeforthefuture.com/TaxBriefing.pdf

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A BBC Scotland investigation found that under ESA [Employment Support Allowance], more than two thirds of claimants are being found fit to work, almost 20% more than the government had planned.

It is now the most commonly appealed benefit, with 8,000 tribunals heard every month across the UK – and 40% of decisions are being reversed.

Citizens Advice Scotland said it should never have been introduced and was unfit for purpose.

Paisley GP, Chris Johnstone, has piloted a back-to-work scheme and said he had serious concerns about the medical.

He believes the medicals are not thorough enough and they “don’t appear to cover the areas that the patients want to talk about, often mental health problems”.

Dr Johnstone added that a lot of stress and anxiety had been caused to a “vulnerable group of patients”.

The medicals are carried out by private company Atos healthcare which also conducts staff medicals for the civil service.

ME sufferer Vikki Bell was dismissed from her Department for Work and Pensions desk job she had held for 15 years, after an Atos assessment concluded she was too ill for the role, and was unlikely to return in the foreseeable future.

But just three weeks later when applying for ESA, she was told by another Atos assessor that she was fit to work and did not qualify for the benefit.

You can see BBC Scotland’s investigation – Benefits: Who’s Cheating Who? on BBC One Scotland at 2245 BST Wednesday 26th May

It should also be point out those appeals are to DWP tribunals, if they were independent and people had proper representation the 40% reversal figure would be much larger. In short the assessments are a con brewed up by government and Atos to meet a policy goal while attacking people with poor health and little money. The Disability Alliance reported in 2007-

Claimants undergoing the current PCA [Personal Capability Assessment] are assessed by Atos Origin doctors using the current PCA descriptors and the Atos-designed computer system LiMA. The same doctors then make an estimate of the claimants’ scores under the new PCA descriptors.

Records of this assessment are then considered by two technical groups in DWP. People serving on these groups have no actual contact with claimants, nor do they have full reports from health or social care professionals who know the claimant. Hence they are unable to make an accurate judgement of capability to work in each case.

In 2006 another investigation found-

Almost 80,000 sick and disabled people a year are being wrongly denied benefits…It has emerged that medical reports on people claiming some benefits are unreliable or inaccurate.

Jim Allison, a benefits adviser based in Cumbria, came across one case in which an applicant for Disability Living Allowance had had 20 alterations made to her medical report.

The corrections had the effect of invalidating her claim: only when she decided to appeal did the alterations come to light.

our investigation found inconsistencies: in the case of 11-year-old identical twins with autism, one had her Disability Living Allowance uprated while her sister – who has exactly the same level of disability – was turned down.

When this was pointed out to the DWP, the twin who had initially received the increase had it withdrawn.

The twins’ mother took the case to appeal and both children now receive the higher rate.

So years ago the errors were egregious but rather than scrap the system they are refining it and making it more vicious, the ESA PCA is another step worse as this investigation has found. As for the software Atos use-

In 2002, SchlumbergerSema, the company contracted to provide the DWP’s Medical Service (MS), began trials of a new computer system called Lima (Logic Integrated Medical Assessment), designed to facilitate the provision of medical examinations and reports for the purposes of the personal capability assessment (PCA). Lima was rolled out on a national basis during 2003 and 2004. In 2004, SchlumbergerSema was taken over by Atos Origin, an international IT company which was recently awarded a new seven-year contract to continue to provide the MS. The contract includes a commitment to reduce the PCA processing times and improve the capabilities of Lima.

Although Lima allows doctors to override the automated features, they are discouraged from doing so. The DWP’s Technical Manual on Lima for MS doctors (v2 12 October 2004) advises them to ‘use the supplied phrases whenever possible’ because Lima is unable to recognise free text when choosing appropriate descriptors. It also advises doctors to only override the automated choice of descriptors in exceptional cases.

Two other features of Lima are of questionable validity. Firstly, most of the standard phrases relating to the ‘typical day’ are couched in terms of what the claimant can (as opposed to cannot) do. As the Technical Manual states, ‘Lima works best when it has positive information about the claimant’s abilities’. This is at odds with the law, which is about incapacity and inability to carry out prescribed functions. Secondly, in the words of the Manual, ‘Lima is programmed to give more weight to observed behaviour than to either the history or the examination’. The validity of this was recently called into question by a social security commissioner

A whistleblower has said previously in a report by Amelia Gentleman in The Guardian-

Later, a healthcare professional working for the private healthcare company which carries out these assessments, wrote in indicating that there was a target that the inspection team were expected to meet. Under the username rightthewrong, he wrote:

“I probably am going to get fired tommorrow for coming on this forum, but I don’t care. I have been doing these “assessments” for some time now. It’ s rubbish, draconian to say the least and it is designed to get people off the sick benefit. It is designed so that 75% of the people who apply for ESA, come hell or high water, ‘fail’ it.”

A criminal level of abuse and incompetence is being allowed to prosper because it fits political agendas that do not care as to the extra pain, poverty and deaths that are caused. This is one -of the many- reasons why I don’t succumb to the jingoistic fantasies that we go to war to ‘help’ people in other countries, a government that has determinedly set about what in some cases could reasonably be described as bureaucratic manslaughter of its own disabled citizens, is not about to suddenly find humanity when it applies to people in far off lands whose culture they are ignorant of and who can’t even vote them out of office. But I digress… Not that we could vote out the policy anyway, all three parties sing from the same -neoliberal- hymn sheet on welfare. That New Labour hired Baron David Freud (another relative who like Edward Bernays or Mattie has hardly covered Sigmund’s legacy in glory) an investment banker to author their welfare reform policy -a man who very quickly joined the Tories and is now Parliamentary Under Secretary of State for Work and Pensions thus it did not matter who won the election, welfare was a consensus issue- tells you who this policy is designed to serve, clue: It ain’t sick or poor people. Public money, as Feud knows only too well, is just for the financiers-

A member of his own team called him the “Fraud Squad” because of his ability to heavily promote new share issues that subsequently tanked. After one particularly difficult meeting with John Prescott, in which Freud’s consortium asked for a further £1.2bn from public coffers for the Channel rail link, the deputy prime minister asked: “Are you the banker?” After admitting he was, Freud says the only “appropriate” response was to add “sorry”.

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Labour dismissed the plans which they say sound similar to £15bn of efficiency savings due to be introduced this year anyway.

Alistair Darling, the shadow chancellor, said: “The Liberal-Conservative coalition have got to come clean on the detail of what these cuts mean. Today they dodged the House of Commons, because they didn’t want to have to explain the real impact on firms and families.

“Today, George Osborne wouldn’t say how many jobs this package would cost. But it is already clear that these cuts will seriously affect support for business, mean less jobs for young people, and hit student places for this September.”

So the opposition’s argument is

  1. Same as what we were going to do, in fact less.
  2. So all the criticisms made of it would apply just as much to a New Labour administration’s cuts.
  3. But we’ll make them anyway as lazy Westminster hacks have to fill their days with something besides meals on expenses and the redundant noise of the media may still keep chumps anaesthetised.

So our choices were/are what exactly? The party leadership are glommed around the centre right like shit on a toothbrush and equally unpalatable. With two Left contenders (John McDonnell, Diane Abbott) for the leadership of a party that did once represent people hopes might be raised, although the usual New Labour /Next Labour suspects are already treating the race as one between the Milibands and Balls (does that make Burnham the taint?). As Richard Murphy shows the country is run for the benefit of a rich minority which last time I checked is not so much democracy more the oligarchy thingy. If the best a whatever Labour opposition can do is whine- Oh we were going to do that, um (remembers job of opposition, the appearance of dissent) but what you’re doing is bad- not only will logic be taking a battering for the next five years but it’ll be nothing compared to the hope of lefties in Labour and the those who live on the median income or less (or the majority who live below the average income).

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Given they both agree cuts which will entail more unemployment they are then further victimising the people they make unemployed, a searingly middle and upper class attitude that is based in the ‘scrounger’ idea that is demonstrably dishonest, they know full well their ideology depends on and creates a pool of unemployed to maintain ‘flexibility’ of labour and to lower labour costs. Nevertheless they convey through corporate media allies to condition people to think those needing welfare are ripping off taxpayers and are unwilling to work, ensuring the astronomically higher corporate and tax fraud figures of their supporters and compadres are kept out of the discourse. One can reasonably define a characteristic of neoliberalism is the scapegoating, the othering, of victims of the ideology in order to misdirect opposition from the -already rich- benefactors of neoliberalism. I have not seen anyone else focus on this part of the deal which perhaps also demonstrates the effectiveness of the ideology in informing opinions on this subject. For some people to be rich under this system it requires many others to remain poor, apparently a taboo issue for the self absorbed upwardly mobile acquisitive consumer puppets of marketing whose souls are owned by Visa.

From Conservative-Liberal Democrat coalition deal The parties agree to end all existing welfare-to-work programmes and to create a single welfare-to-work programme to help all unemployed people get back into work. We agree that jobseeker’s allowance claimants facing the most significant barriers to work should be referred to the aforementioned newly created welfare-to-work programme immediately, not after 12 months as is currently the case. We agree that jobseeker’s allowance claimants aged under 25 should be referred to the programme after a maximum of six months. The parties agree to realign contracts with welfare-to-work service providers to reflect more closely the results they achieve in getting people back into work. We agree that the funding mechanism used by government to finance welfare-to-work programmes should be reformed to reflect the fact that initial investment delivers later savings in lower benefit expenditure. We agree that receipt of benefits for those able to work should be conditional on the willingness to work.

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Fake businesses are to be used to lessen the impact of the recession on high streets in North Tyneside. With 140 empty shops in the borough, council bosses think they have come up with a unique way of ensuring shopping areas remain as vibrant as possible. The first empty shop unit to be given a makeover with a “flat pack” shop front is in Whitley Bay. North Tyneside Council said the move was cost-effective and would help to attract new investment.

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This is a slick marketing operation to make money off the poorest people, disgusting. Given how much the govt. bailed out the banks and in fact own one they could have put into place regulations that mean people on benefits get free banking, of course they didn’t which tells its own story (even as neoliberalism is being proven not to work).(ht2 The Socialist Way)

People in some of the poorest parts of the country are having benefits paid onto pre-paid cards, but many are not aware of the costs involved. An internal e-mail from the Department for Work and Pensions expresses concern at the lack of customer awareness. One benefit office has received requests to pay benefits for almost 100 people directly onto these pre-paid cards, which incur charges.

The card providers say the cards promote financial inclusion. However when staff at the Clyde and Fife Benefits Delivery Centre contacted customers before processing the requests, they found that the majority of customers were not aware of the charges.

One of the companies mentioned in the e-mail sent 46 applications to the benefit office requesting benefits to be paid on to a GO: Card. The forms were accompanied by a letter from Go Money Solutions sales director, Steve Tobin. In the letter Mr Tobin says the forms were obtained “through face to face marketing” in the local area.

A GO: Card costs £10 to buy and a £7.50 annual management fee is charged after the first month. It costs a minimum of £1.25 and a maximum of £2.50 to have each benefit loaded on to the card and the same charges apply for each cash withdrawal.

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Via Richard Murphy-

FIVE of the world’s leading weapons manufacturers have based multi-billion-euro companies in Ireland in order to avoid tax. Despite the size of these Irish-based operations, which in 2008 alone had a total of €6.34bn on their books, they have just two employees registered in Ireland.

A Sunday Tribune investigation has found that in the same year the companies had a combined turnover of €724.7m with profits amounting to €387m, but paid less than €375,000 to the Irish state, an effective tax rate of 0.09%. Ireland’s low tax regime, which charges just 12.5% in corporation tax, has made this country the ideal location for many multinationals to base themselves in order to maximise profits.

The eight Irish subsidiaries identified are shared between Boeing, BAE Systems, Thales, Raytheon and United Technologies Corporation (UTC), all major players in global weapons production. Between them they produce some of the most feared and deadly armaments available including nuclear submarines, fighter jets, helicopters, missile systems and other modern weaponry.

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