How Labour should deal with the Fiscal Responsibility Act

5th October 2015 Socialist Action 0

Labour took its first step to economic credibility by Jeremy Corbyn’s appointment of John McDonnell as Shadow Chancellor. It was vital to appoint someone who would break from the confused economic policies pursued by previous Labour administrations and in opposition. John McDonnell’s was the correct appointment and he proved it immediately and at Labour conference. His establishing the position that Labour would not run a budget deficit over the course of the business cycle on current expenditure, but would borrow for investment, was precisely the correct position. It was in line with the theoretical analyses of both Marx and Keynes. It provided the framework for the other correct polices that began to be laid out at the Labour Party conference – for example on the National Investment Bank, opposition to removing the budget deficit by cuts to welfare.

Photo: Monty Rakusen/Science Photo Library

Time to stand up to the Tory war on green investment

15th November 2013 Socialist Action 0

By Christina Prentice

Cameron’s attempt to regain the political agenda over the cost of living crisis by pledging to “roll back green charges” on energy bills was not only cynical but damaging and should be actively opposed.

Cynical because Cameron knows that green and social investment to insulate the leaky homes of older people and people in fuel poverty are not the main drivers of energy bill hikes – gas prices and super profits are. In the last eight years, energy bills have risen by £520.  The Committee on Climate Change says that the vast majority of this has been because of the rising price of gas.  Low carbon technologies have added just £30 in that time.

ONS

Labour should propose a growth plan not spread austerity more widely

26th April 2013 Socialist Action 0

By Nicky Dempsey

The growing recognition that the 2015 election is Labour’s to lose has led to increasing rightwing pressures on the Labour leadership to maintain the essential thrust of ‘austerity’ policy.

The overwhelmingly Tory press focuses on the demand that Ed Miliband in particular commits to maintaining Tory spending plans.

Photo by altogetherfool

Osborne starts to lose his friends

29th August 2012 Socialist Action 0

By Jane West

The combination of the news that the UK economy remains in a double dip recession with July’s sharp and unpredicted increase in public sector borrowing were widely recognised as still further evidence that the disastrous ‘deficit cutting’ strategy of Osborne and the coalition government is failing.