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Showing posts with label skiver. Show all posts
Showing posts with label skiver. Show all posts

Tuesday 13 September 2016

Britain’s bosses fat and lazy? For once, Liam Fox has a point

Aditya Chakrabortty in The Guardian

Liam Fox ranks among the chief fantasists behind Brexit, deplores gay marriage as “social engineering”, and thinks nothing of claiming 3p from taxpayers for a car journey of less than 100m. But even a snake-oil salesman sometimes speaks the truth and in criticising British business as “too lazy and too fat on our successes”, he has a point.

I know, I know. Why defend a Tory headbanger who otherwise thirsts for cuts to the NHS budget and the slashing of taxes upon the rich? Why entertain lectures from someone whose only attempt at job creation was the boondoggle he shamelessly awarded his former best man?

Yet when the international trade secretary says, “If you want to share in the prosperity of our country, you have a duty to contribute to the prosperity of our country”, I fail to muster up the outrage. I share neither Fox’s views on the causes nor his suggestions on the solution. But he is on to something.

For the past six years, the Tory party has barely paused from laying into British workers. From Iain Duncan Smith to George Osborne, senior ministers wrote off a sizeable chunk of this country as “skivers”. The screws were twisted so hard that jobseekers who decline zero-hours contracts are now penalised with benefit sanctions.

And the Tories did all this with the simpering connivance of Nick Clegg’s LibDems. If you think that era ended with David Cameron, remember that Theresa May’s cabinet boasts luminaries who wrote a report stating: “Too many people in Britain … prefer a lie-in to hard work. Once they enter the workplace, the British are among the worst idlers in the world.”

Ever since 2010, the Tories have tried to pin the blame for economic sluggishness on the shirking Brits. At the same time, their ministers have boasted, with all the regularity of a cuckoo clock, about how the number of British people in work is now at a record high. As a matter of logic, both things cannot be true. The British cannot be both workshy and working more than ever before. The Tories have been fibbing – and at last one of their number has come out and said as much.

The real problem in Britain isn’t its workers: it’s the bosses. By this, I’m not getting at the poor old line managers. I mean those right at the top of big business who have got away with paying themselves too much and investing too little in their workers, their businesses and their society.

Consider pay. While the average British worker is barely better off than in 2008, wages for those at the top of British business have just kept soaring. Researchers at the High Pay Centre recently went through the accounts of the FTSE 100 largest companies. They found that chief executives raked in an average of £5.5m in 2015, up 10% from the year before.

Bung in the lavish pension arrangements and generous bonuses and the average chief executive now earns the same as 129 of their employees. There is no justification for such a wide disparity: no one is as productive as 129 other people. We have gone beyond “Because I’m Worth It” to “Because I Said So” (and my mates on the remuneration committee backed me up). Even when shareholders revolt, as happened at BP over the £14m handed out to its chief executive despite huge losses, they are roundly ignored.

The TUC has just crunched the numbers on how much investment the private sector makes in this country. Of the 29 leading industrialised countries, the UK comes in at 27. Businesses in Estonia, the Czech Republic, Poland: all invest more in plants, equipment and the rest. The only countries that do worse are Greece and Iceland.

We have the same calamitous showing in spending on research and development. A few years ago, the Sheffield University physicist Prof Richard Jones went through the figures. He wrote: “In 1979 the UK was one of the most research-intensive economies in the world. Now, among advanced industrial economies, it is one of the least.” All of our competitors – the US, Japan, France and Germany – have maintained or increased their spending on research. South Korea and China are breathing down our necks. But the British capitalist class prefers the safe bets, the quick bucks – and the mega handouts to the senior executives and the shareholders.

Vice chairman of Stronger In campaign calls off Liam Fox after saying is Britain ‘fat and lazy’
Friday afternoons on the golf course? Fox may have watched one too many episodes of Terry and June. But what’s clear is that Britain’s bosses pay themselves far more than is justified either by comparison with their workers or on their performance. They have spent years relying on taxpayers to top up poverty pay and on the regulators to allow pensions holidays – just so they could hand out more money to shareholders.

They take what academic Kevin Farnsworth estimates at £93bn a year in corporate welfare – cash handouts and subsidies. But they react with horror to the notion of decent wages or chipping in for apprenticeships, rather than treating them as the normal overheads of doing business in a developed country. If that’s not fat and lazy, I don’t know what is.

Of course there are good and non-greedy bosses. But I have spent six years hearing the view that the British are lazy spongers with barely a demurral from most of the media or the political classes. It is high time to push the pendulum back a little.

Fox sees the answer to all this as more slash and burn: of taxes, of red tape, of public spending. That is delusional. Britain has spent 40 years making the burden on business easier, and the results have been to create a capitalist class so sluggish and short-term that it now threatens the continuation of capitalism.

Better, by far, to have a more honest capitalism: in which the responsibilities of business – on taxes, on pay and on investment – are laid out alongside their rights.

Wednesday 18 September 2013

JK Rowling attacks government as out of touch with poor people


Harry Potter author criticises 'skivers v strivers' rhetoric and calls on coalition to help people into work instead of imposing cuts
JK Rowling
JK Rowling – a struggling single mother when she wrote the first Harry Potter book – called for investment to help single parents work their way out of poverty. Photograph: Lefteris Pitarakis/AP
JK Rowling has said the government is out of touch with poor people and should focus on helping them into work rather than stigmatising them and hitting them with more cuts.
Writing in her role as president of the single parent support group Gingerbread, the Harry Potter author criticised the coalition's welfare reforms and the characterisation of people as either strivers or skivers.
"The government mantra that work is the best route out of poverty is ringing increasingly hollow, with nearly one in three children whose single parent works part-time still growing up in poverty," she said. "Rather than focusing on ever more austerity measures, it's investment in single parent employment that will allow single parents to work their own way out of poverty and secure real savings from the welfare bill."
The attack by Rowling comes almost five years to the day that she donated £1m to Labour on the eve of its 2008 annual conference, criticising the Tory message that "a childless, dual-income, but married couple is more deserving of a financial pat on the head than those struggling, as I once was, to keep their families afloat in difficult times". It follows the announcement that the Tories will unveil plans for a tax break for married couples in this year's autumn statement.
The award-winning author was herself a single mother struggling to make ends meet when she wrote the first of her best-selling books in the 1990s. She said that her self-esteem was tested at the time and that single parents were still being stigmatised.
"I find the language of 'skivers versus strivers' particularly offensive when it comes to single parents, who are already working around the clock to care for their children," she wrote on the Gingerbread website. "Such rhetoric drains confidence and self-esteem from those who desperately want, as I did, to get back into the job market."
Rowling wrote that to help single parents back into work, the government should focus on affordable childcare and training, make employers embrace flexible hours and take "a long, hard look at low pay".
Referring to a comment by the welfare minister and former investment banker Lord Freud last year that "people who are poorer should be prepared to take the biggest risks – they've got least to lose", Rowling wrote that it showed "a profound disconnect with people struggling to keep their heads above water".
She said more single parent families would lose than gain under the government's flagship universal credit payment, including many in work, because of gaps in childcare provision for many of the poorest families and a loss of support for single parents under 25.
The current benefits system takes into account whether you have a child in determining your personal allowance but under the reforms a single parent under 25 will receive the same rate of allowance as an under-25 without any children.

Wednesday 26 June 2013

Generation Y: why young voters are backing the Conservatives

 Young people are supposed to be left-leaning idealists, but polls tell us that today's under-34s don't believe in handouts and high taxes – and they're voting for David Cameron
David Cameron Speaks At A Campaign Event In Bury
David Cameron at a secondary school in Bury in 2010. Photograph: Oli Scarff/Getty Images
If you want a good idea of where Britain might be headed, go to Peterborough. The city centre is smattered with the usual high-street names, and scores of empty shops (51, at the last count). Plenty of people complain about youth unemployment. The area of the city around a thoroughfare called Lincoln Road is a little Poland, smattered with businesses that also see to the needs of people from Portugal, the Baltic states, and more. Mention immigration, and you tend to get two kinds of response: tributes from recently arrived people to the kind of life that's possible in the UK, and angry, sullen opinions from locals who think advantages and opportunity are flowing in the wrong direction.
I spent a few days in and around the city a couple of months ago, and as well as all those issues, I was reminded of another very modern syndrome: the fact that as you progress down the age range, opinions about the job market and welfare state tend to harden, to the point that droves of twentysomethings sound like devout Thatcherites. In my regular trips around Britain for the Guardian's Anywhere But Westminster series, this has become almost a given. Quiz people under 30, in short, and you're more than likely to hear echoes of the kind of on-yer-bike, sink-or-swim values that decisively embedded themselves in British life when they were mere toddlers.
So it was in Peterborough, where I stopped for a chat with a young woman – born and raised in Cambridgeshire, it seemed – who was selling subscriptions to LoveFilm, next to a row of empty retail outlets and a branch of Caffe Nero. "British people are rubbish," she said. "Lads especially need to be pushed into jobs more."
"I think they need to stop letting people into the country, to start with," she went on, and then paused. "And stop jobseeker's, as well. I don't think it's right."
This was a reference to jobseeker's allowance, the benefit that pays unemployed people under 25 the princely sum of £56.80 a week. "There are hardly any people that are willing to go and get any job that's out there, just to say: 'I've earned that money'," she continued. "They want the best, don't they?"
At this point, my lefty, bleeding-heart soul could take no more, and I blurted out a riposte. Don't they just want to be paid seven or eight quid an hour and be treated with some respect?
"I was on £6.55 in my last job," she said. "If you don't want to go to college, start at the bottom and work your way up."
Such are the prevailing opinions of what pollsters call Generation Y, the millions of people born between 1980 and 2000, who have grown up in a country in which postwar collectivism is increasingly but a distant memory, and the free-market worldview handed on from Thatcher, to Major to Blair and Brown and now Cameron, is seemingly as ordinary and immovable as the weather. I have heard much the same stuff in Manchester, Birmingham, Swansea, Brighton and beyond. This is not a view of things, moreover, solely borne out by random vox pops: careful, long-term research highlights exactly the same things, in spades.
Earlier this year, the polling company Ipsos MORI began to publish the fruits of its work on 17 years' worth of polling results, spread across four generations, starting with those born in 1945 or before, and ending with Generation Y. Among the most striking examples of a yawning gap between the generations was their respective responses to the claim that "the government should spend more money on welfare benefits for the poor, even if it leads to higher taxes" – a signifier for the principle of redistribution, support for which has fallen among all generations over the past 20 or so years. Here, though, is the remarkable thing: whereas around 40% of those born in 1945 or before still agree, the numbers tumble as you move down the age range, reaching around half that figure among those aged 33 and under. Similarly, among Gen Y, the claim that "the creation of the welfare state is one of Britain's proudest achievements" is now supported by around 20% of people; when it comes to the prewar cohort, the figure always hovered at around 70%.

Adele  Adele said her tax bill made her: 'ready to go and buy a gun and randomly open fire'. Photograph: Jason Merritt/Getty Images

This, says Ipsos MORI's accompanying blurb, "clearly raises important questions about the future of the welfare state". It certainly does, and the point is fleshed out by poll after poll. In research done by ICM in March, for example, the idea that most unemployed people receiving benefits were "for the most part unlucky rather than lazy" was rejected by 48% of 18- to 24-year-olds, and 46% of 25- to 34-year-olds, who apparently agreed with what we now know as the striver/skiver divide.
Look at the polling data relating to other issues and one thing becomes clear. In many ways, Gen Y is admirably socially enlightened: its support for gender equality and gay rights is overwhelming, and on such ideas as the wearing of traditional dress in state schools, its live-and-let-live mores tower over those of older generations. Moreover, among its younger members, the fusty, nostalgic politics of Ukip seems to have very limited appeal: when the party scored its highest ever ICM poll rating back in May, though its support among the 25-34s stood at 21%, the figure for the 18-24s was a comparatively paltry 8%.
A large share of Generation Y seems to build its opinions around a liberalism that is both social and, crucially, economic. This, conveniently, also forms the core of the modern Toryism espoused by David Cameron and George Osborne.
Which brings us to the next revelation, which reached the media last week. Though the under-34s are less keen on the idea of political loyalty than older cohorts, latter-day Tories have apparently managed to speak to a creditable swath of Gen Y, and pull off an amazing political feat. When Cameron took over the Tory leadership in 2005, the party's support among Generation Y stood at 10%. It has since more than doubled, to 20.5%: when Osborne gets up to deliver his latest spending review and serve further notice that the state must be hacked back, and the economy must somehow be rebalanced between private and public, large numbers of young people will apparently be in full agreement.
One recent YouGov poll put support for the Tories among the 18-24s at 31%, with Labour trailing at 27%. By way of a contrast, Tory support among those aged 40-59 was at 29%, with Labour on 40%. In other words, the time-worn wisdom about politics and the young may be in the process of being turned on its head. Welcome, then, to yet another element of the New Normal, and a sobering fact: when it comes to questions about the welfare state, work and the like, the younger you are, the more rightwing you're likely to be.
At which point, some caveats. I'm a comparatively ancient 43, and it has always seemed to me that my own generation – X, the pollsters call it – has been something of a washout. We seemed to be rendered punch-drunk by Thatcherism, holding on to a vague affection for the postwar welfare state – we could get the dole with no questions asked, after all – and being stunned into silence by the social and political revolution that began in our childhood, and was firmly embedded by the time we reached our 20s. For a time, many of us switched off from politics altogether. On that score, I have always liked a sentence written by that eminent Gen X-er Zadie Smith: "I saw the best minds of my generation accept jobs on the fringes of the entertainment industry."
At least part of Generation Y, by contrast, seems to be not just angry with the ever-rightward drift of politics, but more than prepared to take the kind of action at which most of my lot would have balked. It seems outraged by such issues as the marketisation of higher education, the position of the super-rich, and the all-pervasive effects of austerity. If you doubt this, consider the events of November 2010, when all those students laid siege to the Conservative party's HQ at Millbank, and trashed it, along the way spurning the kind of tepid politics espoused by the leadership of the NUS. Note also the fired-up voices who have given Generation Y a huge political visibility: the columnist and author Owen Jones, the left-feminist Laurie Penny, the people who have clustered around such brilliantly trailblazing groups as UK FeministaPeople and Planet and UK Uncut.
And yet, and yet. Might the true views of Gen Y have been better summed up by 23-year-old Adele Adkins, whose response to the brief era of a 50% top rate of tax oozed the stuff of post-Thatcher individualism? Just to recap: "I'm mortified to have to pay 50%. I use the NHS, I can't use public transport any more. Trains are always late, most state schools are shit, and I've got to give you, like, four million quid – are you having a laugh? When I got my tax bill in from [the album] 19, I was ready to go and buy a gun and randomly open fire." Lovely. 
Not that one should set huge store by the often frazzled views of mere pop stars and celebs, but it may also be worth noting that Harry Styles (19) issued a mournful tweet about the death of Margaret Thatcher, and that the Marx-like oracle Rylan Clark (24) described her as a "legend" before affecting to think better of it. At the upper end of the Gen Y age range, consider also the infamous views of Frank Turner, the 31-year-old old-Etonian singer who apparently thinks that when it comes to the relationship between government and the individual, there should be an emphasis on "minimising the impact on ordinary people's lives … allow[ing] them to get on with their lives and not be bothered by the state. Then you've suddenly got a range of things to talk about that are achievable. Like everything from not having ID cards and trying to dismantle the surveillance system we've put together in this country on the one hand, trying to remove government from people's lives, social services. Letting people be freer, health and safety, whatever it might be." On the face of it, that all chimes brilliantly with the aforementioned polling.
But never mind pop stars and singer-songwriters. In the real world, what's often most remarkable about the Gen Y worldview is the way it extends even to people who, on the face of it, might have very good reason to think that economic liberalism and hostility to the welfare state have done them very few favours at all.
Last year, I went to Warrington, the sprawling Cheshire town that shares with Peterborough the sense of somehow being modern Britain incarnate. I was there to have a look at the local version of the Work Programme, the government initiative that aims to get people suffering long-term unemployment back into work, apparently by convincing them that joblessness is usually the result of character failings rather than the state of the economy.
There, I met a 27-year-old man who had just managed to re-enter the world of work, though the only thing he could find was a temporary contract delivering sofas. Around us were shelves peppered with self-help books; the people in charge assured me that even if work seemed thin on the ground, the people they supervised could always look for "hidden jobs". So I wondered: did he think that the fact he was unemployed was his fault?
His reply was just this side of heartbreaking. "Yeah," he said. "I do. I think I should have applied for more. I should have picked myself up in the morning, got out, come to a place like this – tried more. When you're feeling down, you start blaming the world for your mistakes – you feel the world owes you. And it doesn't. You owe the world: you have to motivate yourself, and get out there, and try."
There it was again: the up-by-the-bootstraps Conservatism of Norman Tebbit and Margaret Thatcher, largely unchallenged during the New Labour years, and now built into millions of young lives as a simple matter of fact. Oh, Generation Y. Why? 

Saturday 26 January 2013

A Telling Silence



The issues politicians do not discuss are as telling and decisive as those they do. And the loudest silence surrounds the issue of property taxes.



You can learn as much about a country from its silences as you can from its obsessions. The issues politicians do not discuss are as telling and decisive as those they do. While the government’s cuts beggar the vulnerable and gut public services, it’s time to talk about the turns not taken, the opportunities foregone: the taxes which could have spared us every turn of the screw.

The extent of the forgetting is extraordinary. Take, for example, capital gains tax. Before the election, the Liberal Democrats promised to raise it from 18% to “the same rates as income” (in other words a top rate of 50%), to ensure that private equity bosses were no longer paying lower rates of tax than their office cleaners (1). It made sense, as it would have removed the bosses’ incentive to collect their earnings as capital. Despite a powerful economic case, the government refused to raise the top rate above 28%. The Lib Dems protested for a day or two (2), and have remained silent ever since. In the parliamentary debate about cuts to social security, this missed opportunity wasn’t mentioned once (3).

But at least that tax has risen. In just two and half years, the government has cut corporation tax three times. It will fall from 28% in 2010 to 21% in 2014 (4,5). George Osborne, the chancellor, boasted last month that this “is the lowest rate of any major western economy”(6): he is consciously setting up a destructive competition with other nations, creating new excuses further to reduce the UK rate.

Labour’s near-silence on this issue is easily explained. Under Tony Blair and Gordon Brown, who were often as keen as the Conservatives to appease corporate power, the rate was reduced from 33% to 28%. Prefiguring Osborne’s boast, in 1999 Brown bragged that the rate he had set was “the lowest rate of any major industrialised country anywhere, including Japan and the United States.” (7) What a legacy for a Labour government.

As for a Robin Hood tax on financial transactions, after an initial flutter of interest you are now more likely to hear the call of the jubjub bird in the House of Commons. According to the Institute for Public Policy Research, a tax rate of just 0.01% would raise £25bn a year, rendering many of the chamber’s earnest debates about the devastating cuts void (8). Silence also surrounds the notion of a windfall tax on extreme wealth. And to say that Professor Greg Philo’s arresting idea of transferring the national debt to those who possess assets worth £1m or more has failed to ignite the flame of passion in parliament would not overstate the case(9).

But the loudest silence surrounds the issue of property taxes. The most expensive flat in that favourite haunt of the international super-rich, One Hyde Park, cost £135m. The owner pays £1,369 in council tax, or 0.001% of its value(10). Last year the Independent revealed that the Sultan of Brunei pays only £32 a month more for his pleasure dome in Kensington Palace Gardens than some of the poorest people in the same borough (11). A mansion tax – slapped down by David Cameron in October (12) – is only the beginning of what the owners of such places should pay. For the simplest, fairest and least avoidable levy is one which the major parties simply will not contemplate. It’s called land value tax.

The term is a misnomer. It’s not really a tax. It’s a return to the public of the benefits we have donated to the landlords. When land rises in value, the government and the people deliver a great unearned gift to those who happen to own it.

In 1909 a dangerous subversive explained the issue thus. “Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still. Every one of those improvements is effected by the labor and cost of other people and the taxpayers. To not one of those improvements does the land monopolist, as a land monopolist, contribute, and yet by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived. … the unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done.” (13)

Who was this firebrand? Winston Churchill.
As Churchill, Adam Smith (14) and many others have pointed out, those who own the land skim wealth from everyone else, without exertion or enterprise. They “levy a toll upon all other forms of wealth and every form of industry.”(15) Land value tax recoups this toll.

It has a number of other benefits (16). It stops the speculative land hoarding that prevents homes from being built. It ensures that the most valuable real estate – in city centres – is developed first, discouraging urban sprawl. It prevents speculative property bubbles, of the kind that have recently trashed the economies of Ireland, Spain and other nations and which make rents and first homes so hard to afford. Because it does not affect the supply of land (they stopped making it some time ago), it cannot cause the rents that people must pay to the landlords to be raised. It is easy to calculate and hard to avoid: you can’t hide your land in London in a secret account in the Cayman Islands. And it could probably discharge the entire deficit.

It is altogether remarkable, in these straitened and inequitable times, that land value tax is not at the heart of the current political debate. Perhaps it is a sign of how powerful the rent-seeking class in Britain has become. While the silence surrounding this obvious solution exposes Labour’s limitations, it also exposes the contradiction at heart of the Conservative Party. The Conservatives claim, in David Cameron’s words, to be “the party of enterprise”(17). But those who benefit most from its policies are those who are rich already. It is, in reality, the party of rent.

This is where the debate about workers and shirkers, strivers and skivers should have led. The skivers and shirkers sucking the money out of your pockets are not the recipients of social security demonised by the Daily Mail and the Conservative Party, the overwhelming majority of whom are honest claimants. We are being parasitised from above, not below, and the tax system should reflect this.