A touch of reality

boom and bustoverspendJohn Glen 22/23 June 2013


But back in Sept 2007 (while in opposition):   Conservatives will match Labour on spending for the next three years: “I can confirm for the first time that a Conservative Government will adopt [the Government’s] spending totals. Total government spending will rise by 2 per cent a year in real terms, from £615 billion next year to £674 billion in the year 2010-11. Like Labour, we will review the final year’s total in a spending review in 2009. The result of adopting these spending totals is that under a Conservative Government there will be real increases in spending on public services, year after year.”   George Osborne Sept 2007
Source: http://conservativehome.blogs.com/torydiary/2007/09/tories-will-mat.html

So George didn’t spot the financial crisis just weeks before it started or see anything wrong with Labour’s ‘overspend’. In fact he promised “real increases in spending on public services, year after year.”


Some  Quotes on bank regulation:

“I fear that much of this regulation has been burdensome, complex and makes cross-border market penetration more difficult.

“This is exactly the wrong direction in which Europe should be heading and it threatens the global competitiveness of the City of London.”

– George Osborne, 2006


“In an age of greater choice, he offers more overbearing control; in an age of greater freedom, he gives us more interference…

“In short, in an age that demands a light touch, he [Gordon Brown] offers that clunking fist.”

– George Osborne, 2006


“I want to give you [The City] lower taxes and less regulation.”

– David Cameron, 2006


“Light-touch… regulation is in the interests of the sector globally and the government need to send that message more strongly.”

– Mark Hoban, 2006


And finally, more recently, George Osborne (millionaire from birth) answers questions on current government debt plus bonus questions on child allowance and housing:


So Mr Glen, Labour were less “prudent” than they should have been considering the “boom” was clearly unsustainable. But they did invest much of that money for our future, in the NHS, schools etc.  They made some mistakes as do all governments and I fear some of that money was not spent as wisely as it should have been.  But it is now time to move on.

It remains an indisputable  fact that the cause of the crisis we are in was the near collapse and bail out of our financial system.  Every bank and financial institution in the western world owes its current existence to tax payers, many of whom are now suffering real hardship as a consequence. What those people want is for our politicians to stop the ya-boo politics and get on with sorting out the longest slump in UK history. That requires reason, rational debate, cooperation, wisdom, facts and evidence, not blind adherence to a discredited ideology.

The more the real incomes, working and living conditions and confidence of ordinary working people deteriorates, the less demand there will be and hence the longer the recession.

The longer we leave it before we reform our financial system for real, rather than the pretend reforms we have had so far, the worse it will be when the next financial crisis hits us because by then there will be no money left to bail out the banks.

My son’s rent for one room in a shared terraced house in London has just gone up to £1000 per month. He has always done the ‘right’ thing, has never been unemployed but his income will not cover this rent – what is he supposed to do????

So come on John – you are all we’ve got! Please forget the spin and concentrate on reality.  (How about actually building some real houses – it would be a win win policy? No need to borrow, just get Amazon, Google etc to pay their fair share of UK taxes like the rest of us.)

UPDATE  (25th June) Ex Bank of England Governor, Mervyn King ‘backs me up’: http://www.telegraph.co.uk/news/politics/10140948/George-Osborne-accused-of-lobbying-on-behalf-of-banks-for-weaker-regulation.html

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