Category Archives: Austerity

Hard-hit Defra to have budget slashed further despite warnings

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Department’s finances were slashed during austerity and campaigners say more cuts will stall progress to meet nature and climate targets

Rachel Reeves has been urged not to cut the government’s environment funding in the budget as analysis shows the department’s finances were slashed at twice the rate of other departments in the austerity years.

Between 2009/10 and 2018/19, the environment department budget declined by 35% in monetary terms and 45% in real terms, according to Guardian analysis of annual reports from the Department for the Environment, Food and Rural Affairs (Defra), the Environment Agency and Natural England. By comparison, the average cut across government departments during the Conservative austerity programme was about 20%. During the first five years of austerity, it was the most cut department.

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Labour needs £25bn a year in tax rises to rebuild public services, warns IFS

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Thinktank says tax increases in budget will be necessary even if Rachel Reeves changes fiscal rules

Keir Starmer’s promise to end austerity and rebuild public services will require tax increases of £25bn a year in the coming budget even if debt rules are changed to provide scope for extra investment spending, a leading thinktank has said.

In its preview of the first Labour budget in 14 years, the Institute for Fiscal Studies said Rachel Reeves would need to raise taxes to fresh record levels to meet the government’s policy goals. The chancellor was also warned of the risk of a Liz Truss-style meltdown if the City responded badly to substantially higher borrowing.

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UK Covid-19 inquiry live: report calls for UK-wide civil emergency strategy

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Former health secretaries Jeremy Hunt and Matt Hancock criticised for their failure to better prepare the UK for the pandemic

Among the recommendations in the report are:

The leader or deputy leader of each of the four nations should chair a Cabinet level committee responsible for civil emergency preparedness.

A UK-wide pandemic response exercise should run at least every three years and a new UK-wide whole-system civil emergency strategy put in place.

External “red teams” should regularly challenge the principles, evidence and advice on emergency plans

An independent statutory body to advise the UK government and devolved administrations should be set up and consult with voluntary groups and council-based directors of public health on civil emergency preparedness and response.

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Buenos Aires metro fare jumps 360% amid Argentina’s harsh austerity measures

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Libertarian president Javier Milei has slashed public spending as he wrestles to tame hyperinflation, now at 289% annually

Commuters in Buenos Aires have been hit by an overnight 360% increase in subway fares, in one of the most dramatic price hikes in a harsh budget austerity campaign launched by Argentina’s libertarian president, Javier Milei.

After weeks of hearings, a judge on Thursday lifted an order that had temporarily blocked the scheduled increase in subway fares. That cleared the way for the change to take effect on Friday morning as office workers across Buenos Aires streamed through the turnstiles of South America’s oldest underground metro.

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NHS spending rise lags behind Tory funding pledges, IFS finds

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Thinktank says extra funding eaten up by higher inflation despite greater demand with service in poor state of repair

Spending on the NHS in England has risen less quickly than the Conservatives promised at the last election despite the extra demand created by the pandemic and record waiting lists, a leading thinktank has said.

The Institute for Fiscal Studies (IFS) said increases in funding from the government had been eaten up by higher than expected inflation and, as a result, NHS day-to-day spending had grown by 2.7% a year during the current parliament – below the 3.3% pledged by Boris Johnson in 2019.

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Real terms average pay lower in most UK local authorities than in 2008, TUC finds

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Union body says austerity is to blame for longest squeeze on wages since Napoleonic era with most ‘wage black spots’ in London

Pay packets are smaller than they were in 2008 in most local authority areas in the UK, according to analysis by the Trades Union Congress, which described the findings as a “damning indictment” of the Conservatives’ economic record.

The TUC, which includes 48 unions with more than five million members, said stagnating wages meant British workers were in the midst of the longest squeeze on wages since the Napoleonic era.

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Budget 2024: Jeremy Hunt announces 2p cut in national insurance

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Chancellor also scraps ‘non-dom’ tax breaks and slashes capital gains on property in pre-election gambit

Jeremy Hunt has announced a 2p national insurance cut in his budget as a pre-election gambit to revive flatlining opinion poll ratings and reboot Britain’s economy from recession.

In what could be the last major economic intervention before voters go to the polls, the chancellor said the government was making progress on its economic priorities and could now help hard-pressed families by permanently lowering certain taxes.

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Cash-strapped London council starts crowdfunding drive to pay for green upgrades

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Southwark asks residents to invest as little as £5 to help fund eco-projects such as cycle hangars and school upgrades

Deep cuts to government funding have led a council in south London to ask its residents to invest their own money, for a financial return, to build cycle hangars, new LED street lighting and green upgrades at schools and leisure centres.

In the midst of a financial crisis hitting town halls across England, councillors in Southwark have resorted to a crowdfunding scheme to raise £6m over the next six years to help fund climate-friendly projects.

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‘It’s on our doorstep’: Bristol’s fearful parents seek answers after three knife deaths in three weeks

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As teenage victims are mourned across the English city, some believe the return of youth centres would keep children safer

Terre Baptiste has been checking her teenage son’s whereabouts compulsively since a 16-year-old boy was fatally stabbed two weeks ago in a park a mile away from their home in the east of Bristol.

“It is very worrying,” says Baptiste, in her living room. “Bristol isn’t a perfect city. But there weren’t stabbings one after the other. It was few and far between. Now it is on our doorstep.”

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Health inequalities ‘caused 1m early deaths in England in last decade’

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Exclusive: Review by Michael Marmot decries 'shocking political failure’ behind differing life expectancies across country

More than 1 million people in England died prematurely in the decade after 2011 owing to a combination of poverty, austerity and Covid, according to “shocking” new research by one of the UK’s leading public health experts.

The figures are revealed in a study by the Institute of Health Equity at University College London led by Sir Michael Marmot. They demonstrate the extent to which stark economic and social inequalities are leading to poorer people dying early from cancer, heart problems and other diseases.

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Key Covid inquiry report creates election date headache for PM

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Heather Hallett’s first findings are to be published before the summer and will show how austerity and Brexit hit pandemic planning

An explosive report spelling out how the Conservative government failed to prepare the country for the Covid-19 pandemic as it obsessed about Brexit is to be released before the likely date of the next general election, the Observer has been told.

In a move that will cause alarm in Downing Street, Heather Hallett’s independent Covid-19 inquiry will issue a detailed interim report “before the summer” on the first batch of public hearings held last June and July, which revealed a catalogue of errors, including the lack of PPE and failures to act on recommendations of previous pandemic planning exercises.

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The fall of Woking: what happens after a council goes bust

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Woking declared itself bankrupt in June. Now, residents want answers as care, arts and leisure facilities face funding cuts

On a clear day, the council’s ambitious plan was for Woking’s tall buildings to be seen from the viewing levels of the Shard in London. Residents, however, view the unfinished towers with much less pride and a symbol of the Surrey town’s financial woes.

Woking borough council this week announced a sweeping package of cuts to local services, after the local authority in effect declared itself bankrupt in June, revealing a £1.2bn deficit racked up from a risky investment spree overseen by its former Conservative administration. The towers were at the centre of the problem, with cost overruns adding to vast debts.

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Councils in England in crisis as Birmingham ‘declares itself bankrupt’

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With Birmingham indicating it cannot balance its books, experts warn of others living ‘hand to mouth’

The crisis in local authorities was laid bare on Tuesday as Birmingham city council in effect declared itself bankrupt, with experts warning that others across the UK were now living “hand to mouth”.

The council’s head of finance took the dramatic decision on Tuesday to issue a section 114 notice, indicating that it did not have the resources to balance its books.

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Austerity has led to NHS quality of care declining in key areas, study finds

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Exclusive: Experts say fall in funding caused ‘turning point’ in standards in health service in England

The quality of care that the NHS provides has got worse in many key areas and patients’ long waits to access treatment could become even more common, research has found.

The coalition government’s austerity programme in the early 2010s led to the heath service no longer being able to meet key waiting time targets, the Nuffield Trust and Health Foundation said.

Fewer people with long-term heath conditions such as cancer, diabetes and depression, are getting enough help to manage their condition.

Breast cancer screening rates for women aged 53-74 have fallen.

It has become harder for patients to see a named GP.

Only 6% of midwives think their maternity unit has enough staff to do its job properly.

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MPs voting on report that found Boris Johnson misled parliament – UK politics live

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Theresa May says parliament must punish MPs who break rules as Penny Mordaunt says Johnson ‘undermined democratic process’

At the Labour event Keir Starmer is now speaking. He starts with a jibe at the SNP, saying the tide is turning in Scotland.

Turning to energy policy, he says Labour wants to promote security.

Can we still achieve great things? Can we unite and move forward? Can we still change, can we grow, can we get things done, can we build things? New industries, new technologies, new jobs; will they come to our shores, or will the future pass us by?

You can put it even more starkly. Around the world people want to know, are we still a great nation? If the question is about the British people, the answer is emphatically: yes.

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‘Like a horrific board game’: 33 hours inside an NHS in crisis

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Crammed wards, burnt-out GPs, patients waiting hours for ambulances – the health service is at breaking point

Inside the dimly lit command centre at King’s College hospital, staff arriving for the first beds meeting of the day are greeted with a warning: the hospital is already under strain. “So, we are under pressure this morning,” the head of nursing, Naomi Hosking, informs colleagues stood around her in a semi-circle. No one registers surprise. “We’ve got a lot of patients in ED [emergency department] with little space to see new patients, so we need to get some early movement.”

It’s 8.32am and ED – maximum capacity 60 – is packed, with 61 patients inside. The oldest is 98; the youngest 30 days old. Later, that pressure will intensify: the number of ED patients – in beds, on trolleys or in chairs – will more than double to 137.

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Thurrock council admits disastrous investments caused £500m deficit

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Tory-led Essex authority is on brink of bankruptcy and has appealed to government for emergency bailout

A Tory-led council has admitted a series of disastrous investments in risky commercial projects caused it to run up an unprecedented deficit of nearly £500m and brought it to the brink of bankruptcy.

The staggering scale of the catastrophe at Thurrock council in Essex – one of the biggest ever financial disasters in local government – is contained in an internal report made to the council’s cabinet, which reveals it has lost £275m on investments it made in solar energy and other businesses, and has set aside a further £130m this year to pay back investment debts.

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Child in mental health crisis lived at police station for two days, chief reveals

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Head of West Midlands police warns of rising crime in poorest areas as forces are stretched beyond capacity

A child experiencing a mental health crisis had to live in a police station for two days due to a lack of psychiatric places, a chief constable has revealed, as he condemned austerity for hitting the poorest areas hardest.

Sir David Thompson, who leads West Midlands police, said his force – which is still missing officers and funding after cuts – was being asked to do too much, and warned of rising crime as desperation increases in the poorest areas.

Dismissed attacks from government and rightwing media that claim the police are too woke.

Condemned those trying to drag policing into the “culture wars”.

Revealed fears that the poorest areas would be hit hardest again by the cost of living crisis, fuelling a “real risk” of rising crime.

Said that bias explained some of the reasons that black people experienced more use of force and coercive powers than other groups.

Called for a radical rethink on tackling the problems blighting society, as public services work in “silos”.

Warned that police were being expected to do too much, including in the field of mental health.

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UK warned tax won’t return to pre-Covid levels for decades after ‘series of economic own goals’ – UK politics live

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Chancellor defends tax rises as Institute for Fiscal Studies says UK now entering a ‘new era’ of higher taxation

Chancellor Jeremy Hunt has conceded that Boris Johnson’s hard Brexit deal has caused damaging trade barriers with the European Union, as he said immigration will be “very important” for the economy.

Hunt insisted the UK would find a way to improve trading ties with the EU without rejoining the single market.

His comments came after the Office for Budget Responsibility (OBR) said Brexit caused a “significant adverse impact” to trade volumes and business relationships between UK and EU firms.

Asked if rejoining the single market would boost growth, the Chancellor told BBC Radio 4’s Today programme:

I think having unfettered trade with our neighbours and countries all over the world is very beneficial to growth.

I have great confidence that over the years ahead we will find outside the single market we are able to remove the vast majority of the trade barriers that exist between us and the EU. It will take time.

I don’t think it’s the right way to boost growth because it would be against what people were voting for when they supported Brexit which was to have control of our borders and membership of the single market requires free movement of people.

So I think we can find other ways that will more than compensate for those advantages.

There needs to be a long-term plan if we’re going to bring down migration in a way that doesn’t harm the economy.

We are recognising that we will need migration for the years ahead - that will be very important for the economy, yes.

They don’t look obviously deliverable. If you take the spending cuts that are in place and subtract out the protected departments like health and defence, you end up with really big falls in those unprotected departments.

Hard to see how given the legacy of austerity, given public sector wages are already lagging behind and given this is effectively tying the hands of governments, it’s really hard to see how those will be delivered.

What we saw yesterday was the biggest deterioration in the overall forecasts since the OBR started producing these forecasts.

What is doing the damage here is higher interest rates.

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How the autumn statement brought back the ‘squeezed middle’

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IFS and Resolution Foundation say Jeremy Hunt’s policies will shock middle England, with higher taxes here to stay


Traditionally elections in Britain are decided by swing voters in a relatively small number of seats. Parties go to considerable lengths to tailor their policies to the perceived demands of those getting by on average incomes. Pollsters have even coined names for the archetypal electors that need to be wooed: Basildon man and Worcester woman.

So it will be of some concern to government strategists that the post-autumn statement analysis by thinktanks focused heavily on how the measures announced by Jeremy Hunt had an effect on those not particularly poor but not especially rich either. Both the Resolution Foundation and the Institute for Fiscal Studies highlighted the return of the “squeezed middle”.

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