Rightification: A Theory

 

In May, in the midst of the concerted effort to deny disabled people who can’t dress themselves any means of support, work and pensions secretary Liz Kendall gave a fascinating glimpse into the mindset of Thatcherite Labour.

The cuts, were “crucial”, Kendall averred, “to fighting the rise in populist politics”

They really believe that by forcing through right-wing, necrophile Thatcherite policies they are holding the fort against Trump-esque barbarians when, in fact, they are causing not so much a drift to the Right as a raging stampede.

The disability cuts Labour wanted to implement are a perfect example. The ‘victory’ of PIP cuts being postponed (not shelved, they still might come back in a different form) hides the fact that the other major aspect of the cuts – reducing the weekly benefit of new claimants in the most severe Limited Capacity for Work-Related Activity group by nearly £50 a week from next year – was passed into law.

The cut is greater than the £30 a week one introduced by the Tories in 2016. It’s an interesting theory that you defeat the right by becoming more right-wing that it is.

Or rather was. Because caving in to the slavering dogs just whets their appetite. The proudly Thatcherite Centre for Policy Studies says Labour “must go further”, while Tory leader Kemi Badenoch warns that the “benefits bill” is a “ticking time bomb” which could “collapse the economy”.

Reform UK, meanwhile, wants to force 1 million plus people back into work, declaring that it is the party of “workers and strivers, not shirkers and skivers” (yes it actually rhymes, it sounds like some nightmarish poem written by a 70-year-old bloke with too much time on his hands).

But the truly scary thing that, to Labour’s Machiavellian strategists like Morgan McSweeney, this is a sign that everything is working perfectly. At the next election, Labour will claim it alone is sensible and moderate, while the alternatives send a shudder down the spine. I’m sure some will be seduced by this ploy (but not enough as Labour has alienated so many people that it is clearly toast).

By its action and inactions, and bovine right-wing impulses, Labour is causing this right-wing flood to happen.

Surely there is no-one more slavishly pro-Israel than this Labour government? Labour has increased weapons sales to Israel before exempting the F35 bomber from its cosmetic restrictions. It refuses to call the worst genocide of the century a genocide. It still undertakes (now privatised) daily spy flights over Gaza from an RAF base in Cyprus and places pensioners who oppose the mass killing under house arrest.

But meet Kemi Badenoch, who won’t utter a word of criticism of Israel, thinks the country is fighting “a proxy war on behalf of the UK” and has appointed as shadow foreign secretary a woman who believes UK aid should go to the Israeli Defence [sic] Force.

Or say hello to Nigel Farage who finds the Netanyahu/Trump Gaza Riveira plan for ethnic cleansing “appealing”, and frets that the UK is  not an ally of Israel anymore.

Rachel Reeves, absurdly, wants to deregulate finance again, allowing people to borrow for mortgages at more than four and a half times their income. This is despite the fact that the 2008 financial crisis was precipitated by exactly this kind of permissive environment (it’s easy to forget that we had our own home-grown banking crisis in 2007 caused by Gordon Brown’s light touch regulation before the American one spread across the globe the following year).

But who is going to oppose this desperation? Probably not Kemi Badenoch who regards Argentina’s chainsaw wielding ‘anarcho-capitalist’ President Javier Milei as the template for her imaginary government.

Nor Nigel Farage, the former stockbroker who wants to “keep the flame of Thatcherism alive” by reducing corporation tax to 15%.

Starmer is fruitlessly aping Reform UK’s rhetoric, justifying and amplifying its pseudo-fascist ‘solutions’ while still being markedly less popular with its supporters than his unmentionable socialist predecessor.

But when not emboldening Farage, Sir Kier is channelling the blessed Margaret by promoting the nightmare possibility of a “limited” nuclear war in Europe and appeasing Trump by promising to spend an extra £32 billion (!) every year on weapons, thus ensuring even harsher austerity than that of Cameron/Osborne.

The reaction from the opposition is not to advise caution but to chide that he is not “going far enough”, a phrase I predict we will hear with tiresome regularity in the run up to the next general election.

Reform UK, meanwhile, dreams of an  Musk-style DOGE in every council despite local government, post 2010, bearing the brunt of “the biggest and most sustained cuts in public spending since World War II”.

In their all-encompassing obsession with defeating the Left, the Labour party are fomenting, literally and figuratively, a right-wing arms race that will lead to disaster.

The irony is that I believe they believe that they will ultimately emerge victorious from this horror. The even greater irony is that the person they hate for nearly destroying ‘their’ party, succeeded by his mere presence is shifting the country slightly to the Left, while they – in government and on the back of a huge Parliamentary majority – are dragging it to the extreme Right even though most of its inhabitants don’t want to go there.

The new Left party cannot come soon enough.

And You're Working for No-one but Us

 “And you’re working for no-one but me” is George Harrison’s sign off to the first song on one of the greatest British albums of all time, the Beatles’ Revolver. But compared to what follows it has always struck me as rather a damp squib – lyrically one extended whinge about how Surrey mansion dwellers pay too much in tax. I suppose to be fair to the author, Harrison was very anti-war and he objected to unwillingly paying millions in tax – at the time the top rate stood at 92.6% – so governments could bomb people.

Nonetheless it is quite sad that of all the sentiments the Beatles expressed, “in the end” it was those of Taxman that had the greatest longevity. You need a lot than love, and giving war a chance now seems to be the spirit of the age (alright that was Lennon). But thanks to Margaret Thatcher, Ronald Reagan, and the sprouting up of numerous tax havens around the world successful pop stars need no longer fret about governments getting their paws on their money.

But from the perspective of nearly sixty years, to sing “you’re working for no-one but me” with reference to His Majesty’s tax collectors seems faintly ridiculous. We’re definitely working for someone but there are people much further up the queue than HMRC. Perhaps their silhouettes need more light shone on them:

Landlords and Banks

The first thing we all need is somewhere to live. After rising above inflation for years, rents increased by 9% in 2024, the highest surge on record. The average rent now consumes over a third of renters’ income and more than half of it in London.

Though there are only 11 and half million renters in the UK, their numbers are inexorably rising. But they are still below the so-called “owner occupiers”. Except in many cases, while they occupy, they don’t own anything. The ‘owners’ are paying off a debt (which everyone calls a mortgage to avoid calling it a debt) to the actual owner of their property, usually a bank. And since interest rates have ballooned in the last few years – in the context of house prices inflating by 1,000% since the early 1980s – that debt has become much more expensive.

Banks, by the way, are sharing the pain by making record profits – HSBC amassed £24 billion in 2023, an 80% increase. This windfall results from the interest they receive on mortgage payments and loans being so much higher than the interest they pay on their savings accounts. Why this discrepancy should exist is a bit of a mystery. Theoretically, the two should cancel each other out and banks should not be laughing all the way to the bank because interest rates have been hiked. Maybe Sir Kier – who gave HSBC’s chief executive a knighthood in December – can enlighten us.

It’s good to know the people your monthly labours are paying off are having a hard time too.

Utility companies

Next on the identity parade are water and energy companies. In the past, these two public services were nationalized. But in our post-Thatcherite wasteland, sorry landscape, they are the play things of private equity firms who load the owners with debt and expect their captive customers – us in other words – to pay for the privilege of being compelled to use them. I just love the free market.

And when, as with Bulb Energy, these wealth destroyers experience liquidity problems, they can rely on the taxpayer, in the form of the government, to bail them out. Not that we have any say in the matter.

When the direct debits kick in every month, a lot of the damage to your balance is down to these two suspects. Energy bills are about 50% higher than they were pre-Covid. As with rent and mortgage payments, only in a semantic sense is this not taxation. Unless you want to live in a cave somewhere, or on the streets, you need a home and you need heating and water. Contrary to American monetarist proselytiser, Milton Friedman, we are not “free to choose”.

And it’s going to get worse. The average water bill will increase by 36% over the few years.

“If you get too cold, I’ll tax the heat,” Harrison sang in 1966. He meant, “I’ll raise the energy price cap”.

Corporations and things like eating

In common with all living beings, human beings need to consume if they want to continue living. But the cost of consumption keeps going up. If consumer inflation has fallen from its highs of a couple of years ago, that doesn’t mean prices will return to their former levels, just that they will continue to rise at a slower rate (although inflation seems going up again now anyway).

But the ever-increasing cost of essential goods is not solely due to ‘impersonal’ factors like the cost of raw materials. It is also down to the power of the huge corporations that dominate the market to increase costs above the ‘natural’ rate of inflation. For example, in the UK, “price mark ups” – price increases above the production costs to produce profit – rose from 58% in 2002 to 82% in 2020. The profits of the 350 largest companies on the London Stock Exchange have swollen by 73% since 2019.

This price gouging is symbolised by internet providers typically hiking raising annual broadband fees – now essential for doing most things in life, including work – by CPI (inflation) plus 3.9%. Why? Because they can.

What is now hitting home is that, contrary to the advertising, the Thatcherite revolution did not enthrone the consumer as king. Everyone knew that workers would have to suck it up, but the customer was felicitated. But that’s not how things have turned out. All regulators have a duty to protect the consumer but, as evidenced by the failure to compel banks to pay interest on savings in line with hikes in interest rates, this is just honoured in the breach. And with Reeves’s drive for deregulation, such a responsibility is going to become even more threadbare.

 You have to crane your neck to see the real beneficiaries.

Only in the perverse universe we now inhabit, could a privately educated ex-stockbroker who claims to be “keeping the flame of Thatcherism alive” and controls a company masquerading as a political party be the one to take advantage of this situation.

It’s enough to make you gently weep.