Wednesday 24 June 2015

For Cameron and the Conservatives, austerity is the long term economic plan

Anti-austerity protesters out in large number on Saturday 20th June. Photograph: #EndAusterityNow March in London via photopin (license) (cropped).

If it wasn't already clear, David Cameron made sure of it at Prime Minister's Questions today: the Conservatives have no intention of austerity being just a corrective interim measure (Eaton, 2015).

Last week Cameron laid out that his intention to turn the UK from a "low-wage, high-tax, high-welfare society to a higher wage, lower tax, lower welfare society" (Mason, 2015). For those who feel this deviates from the Conservative message of prioritising debt and deficit reduction as the purpose of austerity, they're missing the bigger picture.

Tackling debt and deficits was only ever the first phase. For the Conservatives, austerity is the long term economic plan. As Cameron stressed at the Lord Mayor's Banquet in 2013:
"We are sticking to the task. But that doesn't just mean making difficult decisions on public spending. It also means something more profound. It means building a leaner, more efficient state. We need to do more with less. Not just now, but permanently."
This reaffirmation of the Conservative agenda comes in advance of the announcement of, what will likely be, enormous cuts to public sector spending by the Chancellor in July. If the Conservatives are likely to get anywhere near their stated 'spending reduction' targets, there are going to be some very painful budget cuts.

While Cameron was being challenged at the dispatch box during PMQs by Harriet Harman, Acting Labour leader, over the impact of cuts to tax credits on the poor, Parliament was invaded by protesters who were campaigning to protect welfare spending on disability allowances (BBC, 2015) - both likely Conservative targets.

Along with the anti-austerity protests of last weekend, these outbursts seem more in tune with what the data tells us. Even as of last year, the UK public stated their willingness to pay higher taxes if that was what it took to have fully funded public services (Campbell, 2015).

So why is the talk of high wages with lower taxes and little welfare, when it could be of high wages with higher taxes to fund better welfare? The answer is that the Conservatives are pursuing a long term, ideologically driven plan, to redraw the UK according to the austerian agenda.

The disparity between the Conservative majority government and the rest of the UK over austerity, with the governments mandate coming from less than a quarter of the UK, presents an opportunity - but only if Progressives can come up with a compelling alternative. At the 2015 UK general election the Liberal Democrats and the Greens both offered Tax rises, while Labour and the SNP both offered to slow cuts to allow economic growth to lessen the burden over time. They now have to find a way to bring their themes - of liberty, sustainability, justice and local self-determination - together into a coherent opposition narrative.

References

George Eaton's 'PMQs review: Harman exploits Cameron's tax credits problem'; in the New Statesman; 24 June 2015.

Rowena Mason's 'Cameron to hint at assault on tax credits in welfare speech'; in The Guardian; 22 June 2015.

Nicholas Watt's 'David Cameron makes leaner state a permanent goal' in The Guardian; 11 November 2015.

'Disability fund protest at Prime Minister's Questions'; on the BBC; 24 June 2015.

Denis Campbell's 'Half of voters happy to pay more tax to fund NHS – poll'; in The Guardian; 15 August 2014.

No comments:

Post a Comment