Has the UK returned to austerity? Experts give their verdict

Has the UK returned to austerity? Experts give their verdict



Posted by theipaper

15 comments

  1. [Rachel Reeves](https://inews.co.uk/topic/rachel-reeves?srsltid=AfmBOooZrQiz9MLb0v9wyVw2b6tfCfT8yd1EosEkSRhnXUZZB_sq5aPk&ico=in-line_link) has been accused by some political opponents of bringing back “austerity” as she unveiled further cuts to spending at her [Spring Statement](https://inews.co.uk/news/politics/spring-statement-rachel-reeves-live-updates-3605571?ico=in-line_link) on Wednesday.

    At the economic update, the Chancellor announced further cuts to welfare – including the freezing and reduction of some benefits – while other departments will also see a reduction in spending compared to previous plans.

    Some, including former Labour leader Jeremy Corbyn, and Reeves’ Tory opponents have accused the Government of returning to “austerity” – a term often used to describe spending cuts from the coalition and Conservative governments between 2010 and 2019.

    But do the Labour plans really [amount to austerity](https://inews.co.uk/topic/austerity?srsltid=AfmBOoovrdAI-6yyLC2LCEGReRQKOpcF6VtVEyJtuSH4lM1SOZNAJ_-S&ico=in-line_link)?

    # What is ‘austerity’?

    The definition of austerity is fairly broad: “a difficult economic situation caused by a government reducing the amount of money it spends.”

    In the UK though, the term is mainly associated with the cuts made by Chancellor George Osborne between 2010 and 2016 and his successor Philip Hammond between 2016 and 2019.

    In 2008, much of the world started feeling the effects of the financial crisis and subsequent recession.

    In the years that followed, the Government made substantial spending cuts that hit public services in an effort to cut the national deficit.

    Cuts were made across a wide range of other areas. A 2012 Welfare Reform Act led to cuts in welfare benefits while the number of civil servants was slashed, and government buildings were sold.

  3. The Chancellor is understandably adjusting public spending in response to global impacts as well as tepid growth. Spending has increased in certain areas so this can’t be austerity and has all the hallmarks of a prudent Chancellor with a steady hand on the tiller making course corrections as needed.

    I find critisism from the tories hilarious – this was the party promising huge unfunded tax cuts just before the last election. If you want austerity then imagine the stinging cuts the tories would have been making if they’d have won to pay for the tax cut bribes.

  5. To call these reprehensible, amoral pieces of human shit “lower than vermin” would be an insult to vermin; they are beneath contempt, empty, soulless, vacuous ghouls that are as lacking in intelligence as they are in empathy. Words cannot adequately describe the extent to which hate these vile fucking people, and I wished I believed in God so that I could take some comfort in the knowledge that they’ll burn for eternity in Hell for the needless suffering they are inflicting.

  6. Fucking ghouls. The OBR was very clear that cutting benefits was nothing to do with helping people into jobs. Now disabled people are planning suicide, in fact 5 have already killed themselves.

  7. Austerity for the poor and working poor, how very un-labour of them

  8. It’s been 4 hard kicks in the UK’s balls:

    Financial crisis.
    Austerity.
    Brexit.
    Covid.

  9. I don’t think we’ve ever left it. Every single person I know is struggling. My wife and I do ok regarding salaries but they’re in no way keeping up with the cost of bills rising.

  10. The Uk’s growth is at 1%. To maintain debt payments at their current proportion requires 3%.

    The only way that goes down is if we pay less, or make more. The UK public is unwilling to sacrifice for either. Before brexit, our growth was 2.2%.

    The stats don’t care abut what’s ‘fair’ or ‘right’. You either fix the problems or you don’t. This is the inevitable consequence of decades of ‘don’t’.

  11. So the UK has 28 million private sector workers. They are expected to support 9 million economically inactive working age adults, 1.5 million unemployed, 13 million state pensioners and 6 million public sector workers

    This is completely unsustainable, which is why Labour are freaking out about the spending levels (they don’t want another Liz Truss borrowing cost bomb going off again). In a globalised world we are competiting against countries which also have a modern educated population but _without_ a massive welfare state to prop up, in other words our labour costs are increasingly uncompetitive, because taxation is so high.

    That being said, labour need to **create** jobs from the money saved from welfare cuts. I.e. redirect the tens of billions saved into things that will actually grow the economy and create jobs, so things like R&D spending, capital investment, infrastructure – this is how China grows its economy so much quicker than anyone else’s by the way, their government spending is focused on expanding their productive capacity instead of welfare redistribution.

  13. There was a meeting in a community centre some time ago between Rachel Reeves and some women. The women spoke about their struggles, about trying to make ends meet, about dealing with the benefits system, food banks, benefit sanctions, the anxiety of PIP assessments, and so on – the struggles of the cost of living crisis. Rachel Reeves spoke to the women about being the first female Chancellor.

    This is what you’re dealing with.

    The notion that anyone could be struggling, and really struggling, to make ends meet is a concept that’s so alien to many of our politicians and ministers. They just cannot comprehend it. It doesn’t even register on their radar.

    God forbid they ever attempt to wrap their minds around the notion that people could be struggling not necessarily because they’re on benefits, but because the economy is so shit and badly managed right now. Lots of people who are struggling work full time and some are even self-employed. The notion that you can come off benefits and rise out of poverty might have been true 20-30 years ago when there was a large differential between the dole and wages, but this is no longer the case. Wage depression is real which is exactly why we have Universal Credit.

    See this is the thing about poverty. It spreads, usually upwards if you believe in the structural classism of working class, middle class and upper class. Poverty affects everyone in some way and all the benefit cuts achieve is that the costs get shifted away from government to others who have to pick up the costs.

    You can keep on repeating “…economic growth, economic growth, economic growth…” until you’re blue in the face, but these are the stubborn facts, poverty always spreads and everyone gets affected in some way.

    So let’s not kid ourselves into believing that there’s any economic benefit from cutting welfare benefits. There isn’t.

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