06_june_2015A letter a day to number 10. No 1,108

Saturday 06 June 2015.

Dear Mr Cameron,

George Osborne’s long term economic plan is to asset strip the nation, selling off our national shares and assets leaving us with nothing for the future.

Let’s just check the national debt that the £1.5 billion that Royal Mail is worth, and “the right thing to do” to sell, will help pay off. The national debt is approximately £1.36 trillion and the interest on that debt is, according to the Telegraph, £1 billion a week. If those figures are inaccurate it’ll be because they are too low because Osborne is a bit of a lad for borrowing and not telling us. He’s a smooth talker though, coming up with this, “For as everyone knows, when it comes to living within your means, the sooner you start the smoother the ride.” Easier said than done for George who is demonstrably incapable of any such thing and our shares of Royal Mail are worth one and a half weeks of interest on the national debt assuming this won’t be another discount sale for the city.

I am not quite sure how selling off our last remaining stake in Royal Mail or the £12 billion in welfare cuts is going to pay off the national debt or even the interest on the debt, perhaps George will write to the nation and let us know.

Selling off the family jewels is a time honoured tradition for families that fall on hard times, but, as every family knows, what’s required for proper recovery is income. In national terms income to the treasury is dependent on production (GDP), wages and spending power. Production is flat lining and wages are tumbling and whilst January saw a rise in tax revenues, Osborne’s return to brutal austerity will soon see that off. Britain needs growth but that’s the last thing on Osborne’s mind.

The Council of Europe warned in January 2014 that Britain’s benefits were inadequate and that we need to raise them to meet legal requirements that Britain is signed up to in Europe, which Iain Duncan Smith predictably dismissed as “lunacy”. However, given that benefits are recycled into the economy almost in their entirety, other than what is lost to tax havens through unscrupulous landlords, then they are a rich form of revenue return, where, say, PFI, privatisation and madcap borrowing to fund privatisation are total losses.

If Osborne had a long term economic plan then the last thing he’d be doing is selling the last of our stake in Royal Mail, our housing association properties at knock down prices and certainly not selling RBS by knocking £13 billion off the asking price, thus robbing tax payers. Asset stripping is not part of any long term plan for recovery, it’s the exact opposite, it’s a scorched earth policy with the poorest and most vulnerable people the first to go.

http://www.itv.com/news/update/2015-06-04/the-government-to-sell-off-remaining-30-royal-mail-stake/

http://www.ukpublicspending.co.uk/uk_national_debt_chart.html

http://www.economicshelp.org/blog/3028/economics/interest-payments-on-uk-debt/

http://www.economicshelp.org/blog/334/uk-economy/uk-national-debt/

http://www.telegraph.co.uk/finance/economics/10849333/Interest-bill-on-UKs-1.27-trillion-debt-to-hit-1bn-a-week.html

http://www.localgov.co.uk/Osborne-reveals-230m-spending-cut-for-DCLG/38793

http://www.telegraph.co.uk/finance/economics/11566370/UK-GDP-falls-to-slowest-pace-in-three-years-with-just-nine-days-until-election.html

http://www.mirror.co.uk/news/uk-news/uk-average-salary-26500-figures-3002995

http://www.telegraph.co.uk/finance/jobs/10799816/Britons-suffer-unprecedented-fall-in-real-wages.html

https://www.markit.com/Commentary/Get/20022015-Economics-Retail-sales-fall-but-surge-in-tax-receipts-highlights-a-healthier-UK-economy

http://www.theguardian.com/society/2014/jan/29/uk-benefits-inadequate-council-of-europe

http://www.theguardian.com/politics/2015/apr/14/tory-election-manifesto-right-to-buy-housing-association-properties

http://action.sumofus.org/a/rbs-sell-off/?sub=tw

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