Saturday 8 January 2022

There may be trouble ahead

In more way than one.

But there is talk of a revolt in Cabinet relating to the National Insurance increase, with one of the prime movers being MP for Victorian values, JRM.

I guess the question we need to ask of him, is what is his reasons?

If he thinks that NI increases are regressive taxes and taxation should be more progressive: all well and good, but I can't really imagine his saying or believing that. My guess is that he is angling for more spending cuts to make up for the funding shortfall.

Of course there is no finding shortfall, its a state of mind by people who think budgeting the nation is the same for households. The Government can issue guilts with life of decades, a literal licence to print money. If they didn't want to tax the rich, which I think we can safely say they don't.

Cutting spending is a policy choice, as it always was. Successive Conservative and coalition Governments have cut spending on the NHS, on day to day spending, on wages, on recruitment, and those spending cuts have effect in time, doubly so in time of a pandemic when there is no meat on the bone to absorb extra cases. The UK has far fewer hospital and ICU beds than most other European countries.

Again, this is a policy choice.

In 2010, when the coalition Government came in, satisfaction with the NHS in the final year of a Labour Government was at record levels. That's what correct funding and staffing does.

I am all for revolt in Cabinet, but remember the alternative could be much, much worse.

No comments: