‘Tis the Conference Season – Labour first …

 

 

‘Conference Season’ has arrived. The Libdems cancelled theirs because of the Queen’s death, so it’s Labour out of the starting blocks and by God, they’re at it, aptly supported by economic correspondents and ‘Teh Markets’. It’s all about the economy, the taxes, and the £ Sterling. This morning’s dead tree press went with those tax cuts, parroting Labour BigWigs who declared them ‘immoral’, and reporting that Starmer would reintroduce that top 45% income tax rate (link). 

In the online editions we read that the ££ fell to its lowest level against the $$ since 1971 when markets in Asia opened (e.g. here). Not headline-worthy is the news that the €€ also fell to a 20-year low or that

“The Swedish krona has fallen even further against the dollar since January than sterling. So has the Japanese yen and the Korean won. The dollar index (DXY) is close to the extreme levels of the mid-1980s.” (paywalled link)

Of course that isn’t newsworthy because the only reason for the fall in ££ has to be yon tax cuts announced in Kwarteng’s Mini-Budget. Perhaps the markets reacted to Starmer’s announcement that he’d reverse those tax cuts? Perhaps some Asian traders even reacted to the announcements by other Labour bigwigs? For example, Andy Burnham, Mayor of Greater Manchester, said that:

”[…] even that cut [the 1% cut to 19%] was “not a fair measure because the rich benefited more”. The mayor said the mini-budget was “obscene, immoral, awful”, putting himself at odds with the party leader. “I personally think we should reject the entire package that Kwarteng put forward on Friday, the whole of it,” he said.” (link, paywalled)

Cutting taxes, even the meagre 1% cut benefiting those on lower incomes is immoral because ‘Teh Rich’ also benefit? I’m flabbergasted! Perhaps Burnham was listening to the speech by one of the trade union bosses threatened “to bring Britain ‘to its knees’ and lead ‘millions’ on strike” (paywalled link) because of ‘pay disputes’. After all, public servants need to be paid, and that means tax cuts are, ahem, unwelcome:

“Mark Serwotka, the general secretary of the Public and Commercial Services Union (PCS), said a coordinated mass walkout could cause “chaos” and succeed in driving the Conservatives out of government. Speaking in Liverpool at a fringe event of Left-wing MPs, Mr Serwotka said industrial action by civil servants – who his union represents – would lead to cancelled driving tests, huge border queues and problems collecting taxes. “We are balloting for sustained action in targeted areas, and I’m going to say it, to cause chaos, to put pressure on the government,” (paywalled link)

Clearly, it’s not about gaining better pay for their members but about ‘driving the Tories out’. Moreover, this call for strikes is preemptive, fuelled by this statement by Kwarteng:

“The Chancellor last week announced new legislation that will force unions to put pay offers to a member vote – ensuring strikes can only be called after negotiations have “genuinely” broken down. The Government also plans to press ahead with minimum service levels, similar to those in other European countries, that would stop unions from closing down transport networks during industrial action.” (paywalled link)

Terrible, innit! Labour has to fight this and never mind that this might become a repeat of the Winter of Discontent, with blackouts and rubbish heaps everywhere, and the political consequence: Mrs thatcher. How such strikes will help Labour with their latest, fantastic plan to help the economy is another question. See this:

“Labour will announce today a proposal to set up an £8 billion sovereign wealth fund to kick-start green investment in clean steel and hydrogen. Rachel Reeves, the shadow chancellor, will lay out plans to invest in strategically important industries over the next decade and to act as a catalyst for finance from the private sector. Labour says the move is based on sovereign wealth funds in countries such as Norway, Singapore and the Gulf that have used government reserves to provide stable investment returns. The proposal, however, will involve borrowed money as part of a £28 billion-a-year green prosperity plan to invest in transition to net zero.” (link, paywalled)

Awww – how green! Note that Labour will borrow money to set up such plan, unlike e.g. Norway which uses the income generated from their oil- and gas fields – money they have already earned. But it’s ‘green’, innit, and it won’t touch the sacrosanct Net Zero. No, don’t ask how this can possibly work out: it’s a Labour proposal so therefore proper economic facts don’t apply, like borrowing in order to save. 

Meanwhile, back in the real world, there are reports that ordinary Brits have been raiding their savings accounts already, even before the expected exorbitant home energy bills land on our doormats:

“Households’ savings have more than halved since the start of the year as the soaring cost of living forces people to tap into their rainy-day funds. The cost of essential goods such as food, energy and mortgage repayments has risen by £145.50 a month this year for the average household, according to research by KPMG, the accounting firm. As a result, households are expected to be nearly £1,800 worse off on average by the end of the year, with many facing an even steeper increase in their regular bills.” (link, paywalled)

These must be ‘Teh Rich’, according to Labour, because what properly poor person could have a savings account! That’s immoral, so the must be taxed! The DM also reports on people raiding their savings and that many, especially the young, have cut back on going out, on streaming services and holidays (link).

Meanwhile, Kwarteng is untroubled by Labour’s cries about tax cuts being immoral. According to the DM, he is “drawing up plans for a fresh round of tax cuts to help families struggling with the cost of living”, having launched “a review of all tax rates ahead of a formal Budget that is expected next year.”(link).  What’s wrong with that? Moreover, what’s wrong with this statement by Kwarteng:

“You don’t deal with people’s rising cost of living by taking more of their money in tax,”[…] “This was a totally perverse argument. No other G7 country is lifting up taxes while dealing with the cost of living.” (link, paywalled)

I leave you with another Labour ‘initiative. Once in No 10, according to Ms Yvette Cooper, they will ‘crack down on knife sales’ by ‘punishing bosses of amazon’ and other BigTech companies for ‘hosting knife sales’ on their sites (link, paywalled). Well, that got her into the headlines …

Perhaps she and her colleagues ought to demand that Labour Mayors such as the Khans and Burnhams firstly ought to get their police forces to crack down on people walking their streets armed with knives? Or would that be racist?

There are two good news items even though so far they’re only predictions. One is that “Tumbling gas prices on track to slash £60bn cost of energy bailout – Successful efforts to fill gas storage could halve prices by early next year” (paywalled link). Hope springs eternal, but I believe it when I see my gas bill being reduced.

The other is the news that, to the horror of Brussels and our MSM, Ms Meloni looks to have won the elections in Italy:

”As polls in Italy’s snap general election closed at 11pm, exit polls showed Meloni’s hard-right coalition in the lead with between 41 and 45 per cent of the vote, enough to give it control of both houses of parliament.” (link, paywalled)

Will our lefty bigwigs with villas in Tuscany now refrain from visiting Italy? Will Brits stop travelling to Italy altogether because of that ‘hard extreme far right’ government rather than because they cannot afford to travel altogether?

Will Brits even be able to have holidays in the UK? After all, affordable hotels in the UK are filled by those dinghy-drivers. Travelling elsewhere is of course so very un-green, and who can afford it anyway. Pity those poor ‘travel and holiday’ correspondents … 

Meanwhile, we’ll have to survive the next days of Labour Conference. Expect more exhortations about the immorality of tax cuts . Expect more ‘justification’ for creating a nice, cold winter of discontent. Does Labour actually learn from their own history?