January 31st, 2014

Richest Hit Hardest Since Recession

Miliband wowed us all with the stunning originality of his attack on Cameron at PMQs this week:

“With every answer, the Prime Minister shows who he stands up for: a few at the top, not the ordinary families of Britain. That is the truth. This is a country where, after four years of this Government, people are worse off. This is a Prime Minister who has already given those at the top, millionaires, a £100,000 tax cut, and he wants to give them another one. He can only govern for the few; he can never govern for the many.”

Which fits cutely into Ed’s increasingly dull narrative. Buried within the spin about today’s Institute for Fiscal Studies numbers is the proof that, whatever Ed wants to believe, the richest have been hit hardest. The wealthiest decile have seen their incomes fall by 9% since the recession, while by comparison the poorest decile have suffered a relatively smaller drop of 2.4%. Add that to the richest paying more in tax than they did under Labour and Ed’s line falls apart. Guido does not agree with the Tories line that taking more in tax from the rich is something to be proud of, though it makes a mockery of Labour’s attacks either way…

Have Your SayAnother thing to take away from the report is that the IFS data model also supports the emerging consensus that the “cost of living crisis” is coming to an end and barely touched those on inflation indexed benefits. Whilst those famous hardworking voters saw a real terms decrease in spending power, Labour’s core shirking voters saw no real terms fall in spending power on Benefits Street until this year’s reforms.

It was way past the time that the Tories made good on their promise that work would always pay better than benefits… 


110 Comments

  1. 1
    Howdy do dere honey says:

    It’s shaping up to be “Black Friday”

    FTSE 100 6477.04
    Down
    -61.41 -0.94%

    Like

    • 3
      Investor says:

      The stock market has been too high for some time. Nothing wrong with an adjustment. I’ll buy again when prices are sensible.

      Like

      • 31
        Ed Miliband says:

        JaguarLandrover sales up 22%.

        Yes, proof that the rich really have been hit the hardest.

        Like

        • 37
          Mitch says:

          Maybe their prices have come down, as I’ve seen with other makes?

          Like

          • No Left Turn says:

            The insurance premiums which seem to hurt people most. Huge numbers of cars are now being driven without any insurance because the cost of insurance is so high.

            Like

          • No Left Turn says:

            The insurance premiums seem to hurt people most. Huge numbers of cars are now being dri-ven without any insurance because the cost of insurance is so high.

            Like

        • 51
          Tafia says:

          It’s the floods. They need a four wheel drive to vist their weekend ‘pile’ in the country.

          Like

        • 57
          vile labour ruined my wife says:

          Guido is being as selective as the politicians he claims to despise

          “However, the IFS said that those with relatively high incomes had benefitted from cheaper mortgage rates.

          In contrast, rising food and energy prices, which formed a bigger proportion of the spending of poorer households, had risen faster than the average cost of living measured by inflation.

          The report said that inflation between 2008 and 2013 was 20%, while energy prices rose by 60% and food prices were up by 30% over the same period.

          “Looking forward, there is little reason to expect a strong recovery in living standards over the next few years,” the report said.

          “Given this, it seems highly unlikely that living standards will recover their pre-crisis levels by 2015 to 2016.”

          It added that earnings might pick up faster than benefits and tax credits, which meant the poorest might be squeezed harder than other”

          Like

        • 58
          Anonymous says:

          There is now an awful lot of outsourcing of Jaguar components to third world countries. Sometimes the quality of finished products often leaves a lot to be desired. Nice engine but if the doors fall off because the hinges are crap……

          Like

        • 79
          Cinna says:

          Most of their output is destined for abroad. You only need to seem all the vehicles lined up dockside in Southampton. So destined for the foreign rich. Not France of course with Hollande’s 75% tax.

          Like

        • 83
          Margo Leadbetter says:

          Is that worldwide or UK- only sales? Surely we are only interested in the UK. Or is Ed Miliband going to govern the world which Gordon Brown saved for him?

          Like

        • 86
          Anonymous says:

          Milliband is well off but is he rich? I am referring to the bleeding royals, who are better off than ever before. Scroungers!

          Like

        • 95
          Cost-of-Labour-crisis says:

          EXPORT sales – in the main, and jolly good too.

          Like

        • 97
          Get your facts right says:

          Its nearly all export markets that have provided the sales increase of 22%
          USA China Middle East
          Sorry to ruin your socialist moaning

          Like

        • 98
          julie says:

          I work at JLR and I’m sure all the new employees we’ve taken on since the economy went bust are grateful for that 22% increase. We’ve gone from near bankruptcy to creating thousands of new jobs in JLR and it’s contractors that pay a decent wage and with decent working conditions. I’m not posh or rich, just a girl off a council estate. We should be celebrating JLR’s success, not complaining.

          Like

        • 99
          Who IS Harry's dad? says:

          But they WOULD have bought a Bentley. Which is exactly the point.
          When the poor get “hit” they can’t afford food.

          Like

    • 12
      Billionaire says:

      Great! Time to buy soon!

      Like

    • 17
      Diane Fatbott says:

      WAAAAAAAAAAAAAAACCCCIIIIIIIIIIIIIIIISSSSSSTTTTT !!!

      Like

    • 21
      RED LEN says:

      Markets move on fear and greed.

      You’ve got nothing to fear from the incoming Labour tyranny government.

      Like

    • 27
      Most of it is Bullshit amyway says:

      What Recession?

      The last one finished Q3 2009

      Recent ONS stats revised away any second (double dip) recession.

      For most people their personal economy has not been as bad as the Government kept saying it was anyway.

      And as for Mortgage payers, never before have they had it so good

      Like

    • 69
      jackie droney says:

      “Black Friday” – mmmmm.

      Like

  2. 2
    FIFY says:

    This is a country where, four years after our Government, people are still very badly off.

    Like

    • 4
      Mitch says:

      Our host agrees, above: “Whilst those famous hardworking voters saw a real terms decrease in spending power..”

      Salaries have gone down for 5 years whilst inflation has gone up. That does kind of indicate a ‘cost of living crisis’?

      Like

      • 75
        You're being politically mugged says:

        Wages down since 2007 according to the TUC.
        That’s a cost of immigration crisis.

        Like

    • 9
      Peter Grimes says:

      Your post is gobbledegook!
      Whose government is ‘ours’? ‘After’ would imply that ‘ours’ refers to the misgovernment of the liars BlairBrown and their mini-me helper retardEDs MilibandBalls.

      Like

      • 32
        Reader says:

        Peter Grimes, you sometimes make sensible comments on here but this time can I recommend you read what the post being commented upon says before you demonstrate your comprehension failure.

        Ed Miliband was in the last government. He is quoted. 4 years after that government ie ‘our government’, people are still badly off. That does not take such a lot of brainpower to understand does it?

        FIFY is a common abbreviation for ‘Fixed it for you’. Do you get it?

        Like

    • 36
      Its Productivity says:

      Productivity has remained unmoved since 2005. Balls, Brown and Miliband don’t like talking about this and the BBC won’t ask. Ten years of Laws, Regulations and Directives here.
      If productivity annually improves tax receipts rise etc, salary rises.
      Lib Dem through Prince Vince wants to regulate. EU want more of the same.
      Danny Alexander, George Osbourne and Mark Carney want to talk about what to do but are restrained.

      Like

      • 54
        Stakhanovite says:

        True Comrade! And now that you have armies of ISO9001, 14001, FSC/PEFC, WEE, Waste Management Stakhanovites it can only rocket! This week alone quality audits have trebled proving how much more quality we have than this time last month! Onward to High Quality Communism!
        What do you mean this delivery was late? Comrade we have measured no less than 100 KPI’s against it rejoice or are you a Wrecker?

        Like

    • 65
      John Alexander says:

      A country that is unattractive to business will pay poor wages.

      The key problem is that investment fell by a quarter in 2008 and never recovered. No investment recovery means no recovery.

      Good salaries are the last link in the chain of wealth creation.

      There’s a great piece on that called, “Blowing Bubbles” at:

      http://john-moloney.blogspot.com/2014/01/blowing-bubbles.html

      Like

      • 101
        By the way says:

        Was it not after the fall of the Berlin Wall that Russia was very attractive to US and other big business – since they could rip off the workers and pay low wages? (And they claim that only the left attempt to rewrite history)

        Like

  3. 5
    Podiceps says:

    It is way past the time that the Tories made good on any of their promises. They will suffer for it.

    Like

  4. 6
    Dan Hodges says:

    I love labour. I am labour till I die.
    But Miliband is a mong and everyone knows it.

    Like

    • 20
      Lecture to the converted says:

      Can’t the LSE occupy him like his father. Please.

      Like

      • 56
        Stakhanovite says:

        His father was a Trot you should have let Comrade Stalin deal with him. But I’ll think you’ll find your security services had a use for him.

        Like

        • 102
          Anonymous says:

          Given the tone of you dark comments, might not you fit in VERY WELL with Uncle Joe’s security police?

          Like

    • 46
      Miliband your historical economist says:

      I support Arsenal and Doncaster United.

      Like

      • 60
        john says:

        buys a house in doncaster in a place he’d never dream of living in,just wondering does anybody know how many nights a year he spends in my home town of donny?and why are there not rules on such things?how is a rich privately educated londoner supposed to understand and represent my town?

        Like

        • 63
          Fly on the wall says:

          Serves you right for unceasingly voting Liebore. How many more times do you and your neighbours need to be told???

          Like

        • 71
          floreat etona says:

          “how is a rich privately educated londoner supposed to understand and represent my town?”

          I’ve no idea: Miliband went to a state school – and doesn’t it show.

          I expect that you did too – you seem to be a moron.

          Like

        • 72
          You're being politically mugged says:

          Don’t tell us. Get a megaphone and tell your neighbours.

          Like

  5. 7
    Owen Jones - people's poet. says:

    NO!
    The rich pay no taxes. The poor pay all the tax in the land!
    Its twue! its twue! its twue!

    Like

  6. 8
    oxfam can do boycotts so why dont we do the same? says:

    BOYCOTT OXFAM CAMPAIGN.

    Refuse to support extremists, hit these extremist left wing fanatics where it hurts them most, in their pockets.

    Like

  7. 10
    Billionaire says:

    Oh, I think I could vote for Ed.

    That’s one more he’s got.

    Like

  8. 13
    Will says:

    I agree that Ed is spouting tosh on these topics. But there is an underlying issue of the concentration of wealth in an ever decreasing circle of people that needs to be addressed. Maybe not relevant to this report, but definitely something that aspirational middle class Tories are worried about.

    Like

  9. 14
    Window Taxidermy says:

    Oh come now – any walk around central London will show that the rich have suffered not one jot but got progressively wealthier. This idea that rich have somehow suffered is beneath contempt.

    Like

    • 19
      Mitch says:

      This is the “politics of envy”, pure and simple. Enjoy your life and don’t join in, honestly.

      Like

    • 23
      Baron Mendelsohn of Bummingham says:

      Haven’t the rich suffered enough?

      Like

      • 70
        The Lizard of Lazards says:

        Us rich are really suffering. I’ve had to replace Brazilian boys with Romanian ones.

        Like

    • 25
      Bluto says:

      Lord Sainsbury worth £400m

      Labour peer and ex-minister, though previously in the SDP. His fortune is mainly (£350m) in shares in the family supermarket business. He was a big donor to the Labour Party under Brown, but now channels his money into Progress.

      Lord Grantchester worth £80m

      Labour peer. Inherited much of the Littlewoods football pools and retailing fortune. He owns extensive property in Cheshire, Dumfries and Galloway, Westminster, Yorkshire and Dallas, Texas.

      Lord Drayson worth £75m

      Labour peer and ex-minister. Made his fortune in pharmaceuticals. Since losing his ministerial post (defence procurement), in 2010, he has immersed himself in motor sports.

      Tony Blair worth £30m

      Ex Labour prime minister. Has made his fortune more quickly than the rest, from dispensing advice to companies, sovereign wealth funds and governments (including Kuwait and Kazakhstan), and employs about 150 staff at his Mayfair HQ. He can earn up to £200,000 for making a speech to top up his £70,000 prime ministerial pension and pay the running costs of his valuable property portfolio.

      Margaret Hodge worth £18m

      Labour MP, former minister and currently a select committee chair. Her fortune is largely her inherited stake in the steel trading company founded by her father Hans Oppenheimer.

      Shaun Woodward worth £15m

      One-time Tory turned Labour MP and cabinet minister. What the Times treat as his wealth is really his wife’s inheritance (she’s another Sainsbury) topped up by some astute moves in the property market, having recently sold homes in St James’s and New York for £5.7m and £11.5m respectively, leaving them with just six properties (in the Alps, Mustique, the south of France, Cirencester, a London flat and St Helens – the constituency).

      Geoffrey Robinson worth £10m

      Former Paymaster General and still a Labour MP. Former CEO of Jaguar cars and still a non-executive director of Paiton Engineering. His fortune is not really derived from his buisness interests many of which the Times describes as failures although he, no doubt, never expected to make anything out of either the New Statesman or Coventry FC, nor from the £373,000 loan to Peter Mandelson which cost him his ministerial career. He inherited £12m from Belgian entrepreneur, Joska Bourgeois, which is what enables him to own 168 acres in Tuscany, a Park Lane penthouse and “one of Surrey’s finest houses” – a Lutyens mansion in 50 acres.

      Like

    • 81
      Blowing Donkey Whistles says:

      Walking around Central London I notice the rich Russians and rich Arabs don’t appear to be noticeably worse off. Thank god they choose to waste their millions in our bars, restaurants, casinos, shops, etc

      Like

  10. 18
    askerratt says:

    Irrelevant as you well know Losing 3% of £50 could have much more effect on someone’s family than losing 9% of £1000

    Sent from Samsung Mobile

    Like

  11. 22
    Village Idiot says:

    …..A life on benefits?……What about those on benefits who are on benefits because of gross medical negligence,subjected to a life of “Persecution,pain and poverty!…..But people on bennies are made out to be a joke because of the feckless few that the education system and social services have badly let down!

    It would be interesting to know the total cost of medical incompetence,but it would take a snowden to know!

    Like

    • 40
      Hear all See all Say nowt says:

      A fair…ish point, but the “feckless few” have done nothing much other than multiply for some years now and can no longer be defined as “few”

      Like

      • 76
        Village Idiot says:

        ……The “few feckless,or maybe,quite a few” are the result of poor governance,poor leadership,poor ,often lefty type education;Let down by an uncaring educated elite of many years….Many just interested in filling their boots .
        Many problems have come about as a result,society has and is being affected badly!

        Like

    • 82
      EdMillipede says:

      Most benefit claimants are pensioners and working poor!
      Unemployed claimants are tiny in comparison!

      Like

  12. 26
    RED ED - SON OF BROWN says:

    Bwing on the wevolution ! Then I can wedistwibute money from wich people to Labour voters :)

    Like

  13. 28
    What about your compo? says:

    gross medical negligence

    ????

    Oh yes, unprovable right?

    Like

  14. 30
    Winston says:

    Guido, you misunderstand Labour’s ‘cost of living crisis’ target audience. They are aiming at the lower middle-classes, who are being hit with massive energy rises, extra stealth taxes, higher transport and food costs, and worst of all, those who are jointly hit by the loss of child benefit and fiscal drag on the 40% income tax rate. However, apart from those that rely on the State and it tentacles for their income, these people are increasingly moving towards UKIP.

    Like

    • 84
      EdMillipede says:

      That would be because he realises that there are few voters to entice from tenants (on 6-month tenancies, and hence unregistered) or from association tenants (associations no longer rent to those on benefits….).. So he is going for the cash-short mortgage payers!

      Like

  15. 33
    Casual Observer 6 says:

    Another way of looking at this – and not to attack the top decile, is that their incomes were perhaps fraudulently increased under Labour, who then pulled the rug on them when they collapsed the charade in 2007/8.

    The gambit of build them up and knock them down, which the left are trying in order to stimulate class war and further their own agenda has failed.

    Miliband should just fuck off.

    Like

    • 66
      Fly on the wall says:

      … but can you ask him to return my stolen pension first please?

      Like

      • 90
        Lena says:

        Fly onthewall- Well we must not forget that the low pension rates we are inflicted with are as a result of one of Thatcher’s grim decisions.

        Like

        • 94
          Socialism always ends in genocide says:

          He’s talking about £5, 000, 000, 000 stolen from pension funds by Labour to fund bombing innocent Muslims in Iraq.

          Like

          • By the way says:

            How did Tory and his mates manage con the Tory Party into voting for the Iraq? Is that why Dave has not arrested ALL the War Criminals?

            Like

    • 91
      Lena says:

      Casual – I would prefer it if our interfering class divisive non-elected political monsters the royals did as you suggest.

      Like

  16. 47
    Tafia says:

    The impact of 9% on someone with a big wage is far far less than the impact of 2.4% on someone on a low wage or on benefits.

    Take 100K off a millionaire and they won’t suffer. Take a fiver of a pensioner and you are depriving them of food, heat and light for a day.

    Like

    • 55
      A Nightclub Bouncer says:

      Take 100K off a millionaire and quite a few people will lose their jobs entirely.

      Laps don’t just dance by themselves, you know.

      Like

      • 89
        Lena says:

        Nightclub B – Well if I were a millionaire I would feel it fair and just to give 100K extra. And tell me please who would lose their jobs?

        Like

        • 92
          Dream on says:

          Come back to us when you’ve got your million. You’ll see things differently just the same as Bono and Geldof have.

          Like

  17. 59
    Displaced Brummie says:

    Ed Miliband’s mistake is that he bases his speeches on what he reads Polly spouting in the Guardian.

    This is why he comes over as such a dufus.

    Like

    • 88
      Lena says:

      Displaced B – Yes but Polly is a clear thinking truthful journalist and writes for a brilliant paper. Perhaps you read The Mail? Cor blimey God help us all!

      Like

  18. 61
    Taxpayer101 says:

    The “rich” aren;t being hammered. It’s the Upper Middle Class that are being crucified by Cameron. 100k is not “rich” FFS!

    Like

  19. 73
    The Critic says:

    A first for me today. The words ‘Milliband’ and ‘stunning originality’ on the same page. ‘Milliband and ‘cunning stunt’

    Like

  20. 74
    Moley says:

    Miliband knows his electorate and he knows how to pull their strings. He is provoking hatred and disharmony because he wants riot and revolution; that, after all, is how the left gain power.

    Like

    • 77
      You're being politically mugged says:

      But always end up slaughtered by the disappointment masses.

      Like

    • 87
      Lena says:

      Moley – And what is wrong with peaceful revolution – something that is long overdue in this class infested society. As for Milliband being rich, well he may be well off but rich – not sure. However the profligate royals are richer than ever before, what with £Millions extra last year and now this with payments from the hard working rather gullible British tax-payer. Alright for royals innit! on perpetual State hand-outs.

      Like

  21. 78

    Better to be hardworking than hardshirking, innit?

    Like

  22. 80
    Peter from Preston says:

    Keep on saying it.

    You don’t make the poor richer by making the rich poorer.

    Easy innit?

    Like

    • 108
      By the way says:

      And a recent Oxfam report shows that, “85 richest people as wealthy as poorest half of the world”. Now That Ain’t What I Call Fairness.

      Like

  23. 85
    David says:

    What is “fair ” about taxing the rich? Of course there is the politics of envy and the blind belief in “equality”.We are not equal. I am much shorter in stature than 95% of the population and it is not fair, but nothing can be done about it. People are dealt a hand in life. How they deal with it defines them as a person. The poor should get on with life and if they do not like their hand they should work to get out of their poor status.

    Like

    • 107
      Anonymous says:

      So, closing more hospitals and cutting yet more public services is a price worth paying – to reduce the top rate of Tax? Take the poor, give to the rich, Robbing Sods, Robbing Sods, Robbing Sods.

      Like

  24. 100
    tigerowl says:

    amazing. Let us bash the poor. they are poor because that is their choice. WOW. Grumpy old gits do exist and thrive in Guido land. Aint seen any city bankers in the local food bank lately. AND then there is this…..’100k is not “rich”…Well. As average income is around £27k and millions are doing very well on minimum wage….. perhaps we are missing the point.

    Like

  25. 110
    By the way says:

    Did someone on this site over-looked a certain press-release?

    ‘Sellafield Ltd can confirm that the radioactivity detected by one of our in-air monitors overnight is not attributable to any issue or problem with any of our operations on site. Our in-air monitors are extremely sensitive and pick up on any abnormality. Overnight the monitoring system initially indicated elevated levels of activity. Following investigation and analysis, we can now confirm these levels to be naturally occurring background radon.’

    ‘…we were always confident that the issue posed no risk to the workforce or public because the levels being detected, whilst above background radiation levels, were still low…’

    ‘We would like to thank our staff and the wider West Cumbrian community for their calm and mature response to events this morning.’

    So they really believe they can fool, all of the people, all of the time.

    Like


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