the hand that feeds
The constant tory assertion that it was the last Labour government’s debts that placed us in the situation we find ourselves in today are wholly incorrect. More accurately, public debt was 44% of national income when the tories left office in 1997 and only 36% when Tony Blair bailed out. The main reason for the current deficit is not overtly profligate spending on public services but the collapse of corporate tax revenues following the global crisis of 2008-2010. Despite their oft-repeated accusation, the tories obviously didn’t think Labour’s spending plans were so unreasonable as, in opposition, they continually pledged to match them pound for pound. Whoops.
What has come to light however is the ongoing symbiotic relationship between the Conservative administration and their principal benefactors, ‘the City of London’. A recent report from the Electoral Commission highlights the fact that more than half (52%) of the Tory party’s donations since the general election have come from individuals and businesses working in the finance industry. Specifically, hedge funds and private equity firms contributed more than a quarter of the private donations, equating to £1m a month pouring into conservative coffers. And to what end? All donors contributing £50,000+ automatically become members of the Leader’s Group and qualify for an immediate face-to-face meeting with the prime minister.
Little wonder the present administration fought shy off any revamp or upheaval within the sector and no wonder Georgie-Boy is straining at the leash to cut tax for people earning a minimum of £150,000 a year whilst asking everyone else to pay more than their fare share towards the bill for a financial crisis caused by the City itself. And the City’s response? Another ‘rogue trader’ (how many ‘rogue’s do there have to be that they become accepted as the norm?) loses £2bn, almost precipitates another worldwide crisis and UBS warn that Christmas bonuses MAY have to be cancelled this year. Incredible were it not true.
