Left Foot Forward:
Lurching the UK towards 'Reaganomics'

A ‘foot soldier’ for US economic fundamentalists, #Truss and her cabinet appear to be applying policy from an American right-wing playbook and lurching the country towards ‘#Reaganomics.’ /1
/2 For the most part, since 1980, #Republican economic policy has revolved around a single policy - hefty tax cuts heavily tilted towards the rich with enormous budgetary deficits as a consequence. Under the Reagan Presidency (1980-1988), income tax was cut across the board
/3 and the top rate of income tax reduced from 70% to 28%. Both Reagan and Bush ran up enormous deficits via huge tax cuts. When Clinton came to power in 1993, he had an awful mess to clean up.

Apart from leading to higher income inequality and punishing the poor –
/4 keeping taxes low to stuff the bank accounts of a monied few, does not boost the economy, and if it does, it’s only ever temporary. As proven in America. Since 1993, US economy has grown at an annual average rate of 4.6 % under #Democratic presidents and 2.4% under Republicans
/5 The presidents who have presided over the fastest job #growth have all been #Democrats, as analysis in the #newyorktimes reveals.
/6 Appearing to favour policies akin to those during the #Reaganomics era, last week the government announced £45bn tax cuts – most notably a 5% cut in the tax rate on top earners and cancellation of a planned tax hike on corporations.
/7 Exponents of such policies say they promote a ‘#trickledown’ effect, whereby lower business taxes spur investment and growth.

While response to the raft of tax cuts for the rich in last week’s mini budget has been hugely damning, Truss’ secretive think-tank allies
/8 celebrated it as a “welcome step first step to getting the British economy back on track.” Among those gushing over the announcement was - predictably - the #IEA's director general Mark Littlewood, who referred to the measures as “a boost-up budget."
/9 Critics of the #Reaganomics model that is influenced by the #TrickleDownEconomics theory and favours instituted tax cuts, decreased social spending, increased military spending, and market deregulation, say it increases income disparity and social inequality
/10 while increasing public debt - concerns which surfaced in Britain this week.

It was reported that the government could seek to reduce #welfare #benefits spending in the wake of the mini #budget. Whitehall insiders said departments were being warned of a fierce new squeeze
/11 on budget settlements. On Thursday, the chancellor refused to confirm that the government would stick to a pledge in May made by the former chancellor #RishiSunak that #benefits would be uprated by the September rate of #inflation.
/12 Amid the speculation that #welfare #benefits may be reduced to fund the tax-slashing budget, government officials and trade unions have expressed concern over the prospect of a fresh round of #austerity. #Poverty campaigners have said it would be 'morally indefensible’
/13 for ministers to fund tax cuts for the richest on the backs of the poor.
The Resolution Foundation estimates that the level of cuts required to bring the public finances under control would be the same as those announced in 2010 by the then chancellor George Osborne
/14 Source: Left Foot Forward
written by Gabrielle Pickard-Whitehead

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More from @GivingCuppa

Oct 3
In a response to Richard Murphy's blog posted over the weekend, I think this is very insightful as to why the Tories are being so #cruel over #welfare #benefits and #CostOfLivingCrisis Support (a 🧵)... /1
/2 There is a new comment on The #Tories are now the most #rightwing governing party in the developed world:
"It could be worse than that. Maybe the rather tepid move to Labour in the polls is because of something darker.
Read 22 tweets
Oct 3
/2 "All large-scale vaccinations will close on December 31, 2022."
Health bosses thanked staff and volunteers who have "worked tirelessly" at the centres to protect communities.
Norfolk and Waveney ICS is working with Cambridgeshire Community Services, which ran the centres,
/3 to help staff who worked at the centres get alternative #Employment .
Read 6 tweets
Oct 3
#EastAnglia #care-plan doomed without 10 times the money
The depth of the crisis in adult social care means the government's announced 'Plan for Patients' will struggle to make a difference. #healthcare #NHS #GiveUsACoffeyBreak #TrussFails
/2 Health Secretary #ThérèseCoffey has announced a £500 Million fund to help #patients leave #hospital this coming #winter. Across the country, thousands of elderly patients who are medically fit wait days and sometimes weeks to be discharged from hospital.
/3 The hold-up is usually a failure to organise the next stage of their #care.

The issue is with the #adultsocialcare sector which is in crisis due to a severe shortage of #staff, with a recent Guardian report identifying over 165,000 vacancies.
Read 7 tweets
Oct 3
Good morning
Screeching 45p U-turn
In a story that broke at just after midnight last night, the Sun revealed that Liz Truss had called in Kwarteng for crisis talks and that the pair had drawn up plans to scrap the 45p rate cut.
Fittingly: Today is economy day at the conference
/2 Politico London:
Where we are: As the 2nd day of the Tories’ gathering in Birmingham dawns, #Truss’ first budget is in tatters with its central policy about to be ditched, her first party conference as PM is descending into chaos, and her position is considerably weaker.
/3 How we got here: A Tory rebellion against the decision to scrap the 45p income tax rate — paid by those earning £150,000 or more — rapidly picked up steam on Sunday, with more than a dozen backbenchers breaking rank during the day
Read 5 tweets
Oct 2
East Anglia Bylines: Should we believe these extraordinary polls?
For some months, opinion polls have showed a steady, slow shift in support from #Conservative to #Labour. But the last month has seen this accelerate dramatically, and all pollsters agree.
/2 Be careful
Opinion polls are not predictions. They only tell us what people told a pollster on a particular day. Like real election results, they can be influenced by issues in the news at the time. When people are angry about a particular issue they may express that to a poll
/3 but later return to their original position. Poll results also have a margin of error, usually plus or minus 3-4%, so small differences should usually be ignored. It is never wise to give too much weight to a single poll, which can be influenced by random factors.
Read 5 tweets
Oct 2
Truss refuses to rule out public spending cuts as she defends substance, but not presentation, of mini-budget [and throws Chancellor under the bus]
Here are the main points from the Liz Truss BBC interview with Laura Kuenssberg.
theguardian.com/politics/live/… #TrussFails #TrussMustGo
/2 #LizTruss admits she should have ‘laid ground better’ before mini-budget and says cabinet not consulted about 45% top rate #TaxCuts : Truss defended the government’s controversial mini-budget in its entirety, accepting that the presentation could have been improved
/3 , but giving no indication that she wants to change the substance of it. Asked if she was committed to getting rid of the 45% top rate of tax (the most controversial element), she said she was.
Read 9 tweets

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