Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Friday, 3 July 2015

What a 21st century democracy might look like



In the last few articles on this blog I talked about some of the political problems we are facing in Britain today and how these could be addressed through a citizens convention on the constitution, which would ultimately produce the first ever written constitution of Britain. The peoples constitution. There will of course be much opposition from the political elites and others to accepting this new constitution, most of whom are very comfortable with the way things are at the moment, thank you very much. They will not just hand over their privileged positions and power because the people have come up with a better idea. I don’t know how we get around this problem, but strongly believe someone will know how we can force the hands of the political elites to carry out the will of the people.

So assuming we have found a way and the peoples constitution has been enshrined in UK law, what might this new democratic society look like? Parliament could be moved to a more central location, in an existing building that is renovated for the purpose. Westminster palace could be sold off to be developed into much needed affordable social housing. Both the House of Lords and local councils might be abolished and it’s role passed to new constituency councils that would be set up in each of the 650 existing constituencies in UK. Members of constituency councils could be made up of democratically elected local constituents. The councils would hold the balance of power on behalf of their constituents. Annual spending budgets would be prepared by council departments and voted on by the constituents. Full details of public spending would be made publicly available online and in hard copy by the constituency councils, who will also provide regular updates on local spending at their monthly meetings. Any constituent may attend and vote at any meeting of the council, to raise an issue, or hold the council to account.

MP’s could be held accountable to their constituents through the local constituency council, who will be enabled to discipline their MP as they see fit, including sacking of the MP if deemed appropriate. In circumstances where the council deems there are grounds for dismissal of their MP, all local constituents will have a vote on this. MP’s will be required to attend council meetings at least bi monthly, where they will present a report on their work in parliament. Full details of MP’s expenses will be made publicly available on the constituency councils website. MP’s will be given a salary equal to the national average wage, with the opportunity to earn an annual bonus based on performance. Constituency councils will make a recommendation on the value of the bonus and constituents will vote on whether or not to award that bonus. By attending council meetings, MP’s will be able to obtain feedback on how their constituents would wish them to vote on a particular issue. As any constituent could attend any council meeting, this would help to close the divide between MP’s and their constituents.

Control and ownership of public assets would lay with the people of Britain. In the event of parliament proposing to sell off a publicly owned asset, it would have to first produce a report outlining the reasons for this proposal, including a full cost benefit analysis of the sale. This report would then be passed to all constituency councils, who would analyse it and make a recommendation based on it’s constituents best interests. Constituents would then vote on whether or not to sell the proposed asset. This would prevent the disastrous outcomes for the taxpayer we have been seeing over the past thirty years or more, where successive governments have sold off our publicly owned companies and other assets without consulting us and at vast losses to the public purse. Too many once great British companies that were making profits and annual contributions to society through taxes have been sold for less than their true market value. This is at least a contributory factor to our falling productivity output levels.

In a new democratic society Britain would no longer pander to the ever increasing demands of multi national corporations. We the people would dictate the terms and conditions of all corporations being allowed to trade in Britain. Most fundamental I suggest, would be an agreement to pay all taxes that and when they become due. Company directors would be made personally liable for the actions of their corporation. Anyone company or individual not paying their taxes would be dealt with using the full extent of the law. The same treatment would apply trading in a way that might cause damage to our environment. Any corporation wishing to trade in Britain will be made welcome and we will support them, but along with those benefits comes the expectation that they will respect our laws and our society. The ultimate sanction for a corporation breaking our laws would be the removal of their licence to trade in Britain. Participation in full country by country reporting and a public register of corporate ownership would also be conditions of trading in a new democratic society.

Each constituency council would have responsibility for properly enforcing the national minimum wage within it’s borders. The national minimum wage would be increased to a living wage. Any employer found to be paying someone less than the national minimum wage will in the first instance be issued with a formal forming. Constituency councils will have a range of sanctions available to them, with the ultimate sanction being the removal of the employers licence to trade. The national minimum wage would apply equally to anyone entitled to work in UK, help to tackle the growing problem of people living in poverty, give workers a sense of self worth, pride and value in the work they do, increase household incomes, increase tax revenues which could be spent on public spending and eventually eliminate the need for top up benefits such as tax credits and housing benefits for low income workers. There is an estimated £85billion per year of public money being spent on subsidising big corporations that pay low wages.


Power and control would be moved away from a centralised government and into the hands of constituency councils, with British citizens holding the ultimate balance of power and control. The role of parliament might be to draft, debate and vote on new legislation as it sees fit. Bills passed by parliament would then be handed over to constituency councils for review, amendments and voting on the bill. Councils may decide to pass the bill to it’s constituents for a vote and no bill may become law without approval of at least two thirds of the constituency councils. Bills relating to matters of national interest and votes on a proposal from government to take us to war would have to go to a national referendum. This would be a truly democratic Britain, run by the people, on behalf of the people.  

Monday, 29 June 2015

It is not only “the mother of all parliaments” that is broken. Our entire political system is as well


Britain has the sixth richest economy in the world, yet 13.7million of our citizens are living in poverty and 4million of those are children. Our government are driving a counter productive, ideological program of austerity against the poorest and most vulnerable in society, while cutting the top rate of income tax and plans afoot to cut it even further from 45% to 40%. The chancellor intends to sell off our 81% shareholding in RBS, to an Abu Dhabi sovereign wealth fund, despite objections from the public that the sale will result in a £13bn loss on our initial £46bn investment. However, when inflation and interest repayments since 2008 are factored in, the actual loss to the taxpayer will be £32.6bn. A proportion of our share holding in Lloyds bank has already been sold off, but what we were not told is that it was at a loss to the taxpayer of £530million.

In 2014, an estimated £104bn in tax revenue went unpaid through tax avoidance and evasion. The independent living fund, which provides disabled people with independence and a much needed lifeline will be scrapped and the money it provides will not be replaced. In the name of austerity, all public sector workers have endured a pay freeze since 2010, while MP’s are in line for a 9.6% pay rise that will be back dated to April, which 88% of respondents to a public consultation carried out by IPSA voted against. Due to cuts in the legal aid budget, people are now being forced to defend themselves in court, against well paid and highly trained barristers & solicitors and this may be in breach of their fundamental human right to a fair trial. Despite their denial and having no public mandate to do so, successive governments have been pushing our NHS towards full privatisation.

During the election campaign, David Cameron promised us 5,000 new GP’s by 2020, but just six weeks later health minister Jeremy Hunt has been forced to admit the pledge is unachievable. Since the introduction of the Health & Social Care Act 2012, the provision of all NHS services must be put up for legal tender. But contrary to both UK & EU competition law the process is not a level playing field. As a public sector organisation, our NHS is unable to reclaim the VAT it pays on purchasing medicines, medical equipment, legal advice etc, while private corporations are able to. This means that NHS costs are always 20% higher than those for a private healthcare provider when bidding for a contract. Due to continuing under funding, a growing population, cuts to local authority funding effecting social care provision and staff leaving in their thousands, our NHS is teetering on the very edge of a cliff. Successive governments, who want to see it fall off the cliff so they can declare it is unaffordable and must be handed over to the private sector, have deliberately caused all of the current problems with our NHS.

The outcome will be a two tier health service, where world class healthcare will be available only to those who can afford it. Future governments will provide a certain amount of funding and we will all be expected to take out top up health insurance to cover the additional costs of treatment, or fund it ourselves. Those who cannot afford the top up insurance will not receive treatment. Our NHS is a national treasure and in 2014 was rated the best healthcare service in the world. No government, either past or present have had a mandate from the people for privatisation. It is our NHS, we pay for it and it is a shameful indictment of the state of democracy in Britain that our governments have been able to attack it in the ways that they have, for their own political gain. We should have been given a say in the PFI contracts that were forced upon NHS trusts, changes to the structure of our NHS through the introduction of foundation trusts, the changes made to GP contracts, the introduction of the HSCA 2012 and the way our NHS is funded. If we had, perhaps it would not be in the crisis it is in now and would not have the chronic shortage of GP’s we now have.

Successive governments have not been listening to us and despite their promises, have proven themselves both unwilling and unable to provide a better, more democratic society where we can all prosper. Britain is not a democracy and is playing dangerously close to the edge of becoming something much worse. As our governments have failed to provide the kind of democratic society we all want, it falls to us, the people of Britain to design and build it for ourselves. A society where all of it’s citizens are equal before the law, regardless of their position in society. A society where we decide the role of our government, monarchy and all other institutions. Where our politicians are truly accountable to their constituents, who will have the power to sack their politicians. The make up of government is reflective of our wishes, as expressed in general elections. A society where we set the rates of corporation tax and decide the consequences for those who do not pay what is due. We will decide the structure and funding available for our education system and our NHS. It will be for us to decide the role of our police forces and the powers with which they are entrusted.

In a democratic society, teachers will be free to teach, nurses and doctors will be free to treat patients without the added and unnecessary burden of forms and paperwork, if we so choose. We might decide that in the event of our government wanting to take us to war, a referendum will be called in order for the people to decide. It might be that we decide all government spending is made freely and publicly available, including full details of politicians expenses. All exceptional public spending will require public approval, for example in the event of another bank bailout being necessary, if we so choose. In fact all of the rules around how a new democratic Britain will work, including it’s institutions, would be decided by us, the people of Britain. This will require a mass movement of the people. A coming together of all creeds and races in the name of democracy, to build a better, more democratic and fairer British society. It would be a vast demonstration of people power and a statement to our government and institutions that we will not lay down and take their self serving creed anymore. We will not allow them to divide us. Instead we will unite and from now on we will be setting the rules.


This will be a movement of the people towards a citizens’ convention on the constitution. A constitution is basically a rule book which dictates how society operates and the role of it’s institutions. In Britain, we do not have a written constitution. The citizens’ convention will be a national event involving people from all corners of Britain. We will come together to decide the kind of democratic society we want to live in. We will decide the rules around whether we have a welfare state and how it will operate. We will decide if and when our share holding in RBS & Lloyds banks is to be sold off. We will decide if and when any of our public sector assets are to be privatised. We will decide how many foreign refugees to welcome into Britain. All of this and more, we will decide in the first ever written constitution of Britain. The peoples constitution.

Tuesday, 23 June 2015

A full frontal attack on the working poor



During the build up to the 2015 general election the conservative & labour parties jointly agreed on a further £30billion of austerity cuts from public spending. As the only two parties in our out dated and wholly undemocratic electoral system who could lead a government, it was a cast iron guarantee even before the election that the previous coalitions program of austerity was here to stay, whatever the result of the election. Sanctioned by just 24% of the electorate, we now have a conservative majority government for the next five years. While an estimated 250,000 people demonstrated in the streets of London last Saturday against the governments’ austerity measures, minister for work & pension Ian Duncan Smith announced that plans for their pre announced £12billion of cuts to the welfare bill will be produced in the chancellor’s emergency budget on 8th July. He demonstrators declared they were sending a message to David Cameron, but clearly he was not listening and in fact had a message of his own, “austerity will continue despite your demonstrations.” Leading economists, the International Monetary Fund, the Office for Budget Responsibility, members with the conservative party and others have joined a growing chorus of pleas for a rethink, but David Cameron & Co are moving forward with their plans regardless.

All we know at the moment is that the £12billion of cuts to the welfare budget will not effect pensioners income, simply because they are more likely to vote conservative at an election. There is however widespread speculation of plans to cut working tax credits and housing benefit for young people. Despite the governments’ claims that wages are rising and having created 1,000 jobs per day over the period of the last parliament, the truth is that wages are still below their pre financial crisis peak in real terms and many of those new jobs are either part time, in zero hours contracts or self employment. The resulting low household incomes, means that the vast majority are claiming some form of tax credits to top up their low wages. Those with children will also be negatively effected under the speculated plans, which include reducing child tax credit payments back to their 2003 levels. The Institute for Fiscal Studies have calculated the move would reduce entitlement for 3.7million low income families by £1,400 per year, while saving £5billion from the welfare bill. David Cameron has said that the UK should be paying out less in tax credits and that companies should pay workers higher salaries instead. I agree with him, but he should not be cutting benefits from low income families unless or until higher wages are actually being paid.

According to the campaign group End Child Poverty, there are 4million children living in poverty in Britain. That equates to 1 in 3 children and is among the highest rate in the industrialised world. If our government go ahead as planned with their cuts to in work benefits including working tax credits, there were be an additional 600,000 children living in poverty by 2020. Last week, David Cameron very publicly called on world leaders to unite in order to eradicate child poverty by 2030, but in this case actions speak louder than words. Parents are already being forced to get into more debt in order to meet the basic needs of feeding their children and keeping a roof over their heads. These planned cuts to in work benefits will effect millions more people and leading economists have already warned of increasing personal debt and the possibilities of a personal debt crisis such as the one seen in 2008. Our government, the vast right wing media and right wing think tanks such as the IFS and Taxpayers Alliance are alienating sections of our communities by attacking them and spreading their lies about the importance of reducing the budget deficit and our national debt. In truth, none of these measures are about reducing the deficit, they are an ideologically driven agenda and all out assault on the poorest, disabled people and those least able to defend themselves.

If the government did genuinely want to help and reward working people and children out of poverty, there are a number of alternatives ways to do this. Raising the national minimum wage to a living wage and properly enforcing it is one such approach and would mean that the need for in work benefits would be vastly reduced overnight. But in doing so, the government would have to make a much more concerted effort in enforcing the national minimum wage. Since the then new labour government in 1999 introduced it, there has not been a single prosecution of an employer for not paying it. An adequate system of initial financial penalty and eventual criminal prosecution must be introduced to enforce the national minimum wage. The government seems to have paid equally scant regard to the young people who will be effected by the suggestions it plans to cut their housing benefit payments. What will happen to the young people who for whatever reason cannot live with their parents and therefore need to have a place of their own, but cannot afford the rent? No consideration has been given to where these young people are going to live. The more democratic option would be for our government to enforce a cap on the outrageous rents being charged by private landlords.

Another way to reduce poverty and eventually our welfare bill would be to invest in building more social housing. Through a scheme championed by fair tax campaigner and economist Richard Murphy the chancellor could use a new program of quantative easing to build the homes we so desperately need. As was done with the banks between 2009-11, the bank of England could release perhaps up to £50billion per year into the housing economy in a huge house building program. In simple terms, quantative easing is effectively the bank of England printing free money and therefore would not increase the national debt. As Murphy suggests, we could call this program green quantative easing and make the houses being built the most environmentally possible, thereby reducing energy bills for their inhabitants and helping the government to reach it’s targets for carbon emission reductions. The new house building program would create new jobs, meaning higher household incomes, increased tax revenues for the government, better standards of living and millions of children being lifted out of poverty. People would have more disposable income, meaning more spending in the high street, which will help other businesses and the treasury from the increased spending. All of these steps would help give our economy a much needed boost.


However as David Cameron & Co demonstrated last Saturday, they are not interested in listening to calls from the those they were elected to serve and will carry on regardless with their neoliberal thinking and ideologically driven agenda regardless of what the people say. The labour party are equally committed to austerity, although a slightly lighter version than the tories and have proven themselves to be totally incapable of either holding the government to account, or offering an opposing argument in any meaningful way. While I am a strong supporter of Jeremy Corbyn’s policies and ideas, I can’t see him and his supporters being able to realise the reform of British politics that we need and bring a more democratic and fairer society to Britain. There is simply too much opposition to this kind of politics in our current system. We must tear down the British state and rebuild it from scratch and the only way I know of doing this is to create a new constitution, written by the people, for the people. Let us come together and create the kind of British society we want to live in.

Friday, 19 June 2015

A call for a new British constitution


Once upon a time we had a great British value of looking after each other. There was a real sense of comradeship and some fundamental values like we look after our own. I am involved in a political campaign at the minuite about fair taxes and the attacks, insults and vileness that I have witnessed from those who oppose our campaign has been horrendous. The insults that have been spread about Jeremy Corbyn and those who support him in the current labour leadership campaign are just toxic. What happened to the great British right to freedom of speech? What happened to mutual respect? What happened to each to his/her own opinion? But perhaps most important of all, where did this need to attack, insult and discredit anyone and anything that believes or aspires to something different that what “I” believe? To a great degree, we appear to have lost those great British values we once held and it is to the detriment of us all.

This toxicity has even become a normal part of our political system. Long gone are the days of having a debate, each putting their point of view across, while respecting that of the others and then coming to a consensus. In the recent election campaign we never got to hear what each party fundamentally stand for, or how they will fix the problems our society face. The majority of the campaigns from the main political parties was about playing the blame game, pointing the finger at someone else, nobody accepting responsibility for anything and discrediting the policies of their opposers. Our government is about to launch phase two of it’s idealistic and completely unnecessary austerity program, despite warnings from within their own party, the IMF and leading economists. A program that will unleash massive suffering on the poor, disabled and most vulnerable on our society. They claim to have a mandate of the people, but only 24% of the electorate voted for them and I doubt many of them even know the effects the governments policies will have.

Our government wonders why young Muslim men and women are leaving Britain to fight for ISIS is Syria, blaming the Muslim communities and our security forces. They do not think to look at how divided our society is and the effects of the toxic messages it spreads, or the sometimes illegal wars it has participated in around the world. Through attempts to attack our fundamental human rights, on disabled people and the vulnerable through cuts to welfare, sustained attempts to privatise our NHS, participation in wars, selling off our public assets and privatising everything we once owned, Great Britain has lost it’s greatness. We have sold off the values we once stood for, like free healthcare, taking care of the sick and elderly, public ownership of our railways and producing British products. Successive governments have sacrificed those Great British institutions and values at the altar of neo-liberalism and a free market economy. They have gone to war, not to protect our values, but to impose them on others who hold different values. Collectively, they have created a society that is not open to new ideas and beliefs, in fact we now systematically attack anyone and anything that opposes, or thinks differently to what we as individuals believe. Having sold off almost everything we own, our government is now turning us against each other through their political game playing and lies.

Our political system is broken. It is no longer fit for purpose and has all but cost us our standing as a democratic state. We need change and our current political system is unable to deliver the vast changes we need, if we want to become Great Britain again. That means we will have to scrap our current system and go back to the drawing board with a blank sheet of paper and redesign for kind of British society I believe we all want. A society that will reinstate those once Great British values of freedom of speech, mutual respect for others, the concept of real communities that share, welcome and learn from those with individual believes other than our own and we look after people, including those who are not able to look after or pay their own way for whatever reason. The kind of society where the people hold the power and make the decisions rather than big multi national corporations. Where all businesses pay their fair share in contributing to society, rather than artificially shifting their profits to an offshore tax haven. A society that upholds and protects it’s citizens fundamental human rights, rather than trying to abolish them. One that will provide jobs for everyone, in whatever sector they want to work in. Adequate housing of a decent standard could also be a basic standard of our new society. As too could a good standard of education for anyone, whatever their age. We could make our politicians truly accountable to us, with the ability to sack any politician found to be breaking the rules. In fact we could have whatever we want, that would enable us to create the kind of society we want to live in.

The way we can have it is through a new British constitution. I suggest it should become the first ever written first British constitution, enshrined in law and unbreakable. A constitution sets the rules by which the state operates and how it relates to the people. In a new constitution we could remake and rebuild the make up of the state. We could build new ones and abolish those that no longer serve our democratic purpose. We could improve or redesign the state, from the monarchy, state administration, including quangos and the bank of England, police, military, justice system, education system, health, to our political system. Britain is one of the few countries in the world that does not have a written constitution, so we could design and produce the first ever written British rule book, which would outline how we want our society to be. It would be a step towards creating a fairer and more democratic society for all.

Parliament has already demonstrated it’s inability and unwillingness to provide the change we need, through it’s refusal to reform our voting system for example. It therefore falls to us the British people to enact a new written British constitution. So I add my voice to people such as John Mc Donnell MP and organisations like Unlock Democracy who have called for a convention on the constitution. This should be a people’s convention, organised by the people, for the people. We could have keynote speakers to talk about what a constitution is, what is might look like and what it could achieve. There might then be break up groups, with each given a topic to discuss and make keynotes on. I would support the idea of one convention for the whole of Britain, where all people would be invited to come and join in the discussion. This would become a huge movement of British people, coming together to debate and discuss how we want to be government and the roles each part of the state will have in a more democratic British society.


The end result would be the first ever written British constitution. Written by the people, for the people.