Gove Fights Dangerous “Austerity is Over” Narrative

Encouraged by her new chief of staff Gavin Barwell, Theresa May is aggressively pursuing the dangerous narrative that “austerity is over”. Barwell told Newsnight that he lost his seat because public sector workers in his constituency wanted a pay rise. May has apparently accepted this analysis and told Tory wets she will pursue Labour-lite economics to win back Corbyn voters. Hers was already the most economically left-wing Red Tory manifesto since the seventies and it was rejected by the public. By contrast David Cameron won a majority while Labour screamed about spending cuts. The Tories had a 24 point lead before the manifesto was released – it was the dementia tax and the student offer not austerity that lost them their majority. Ending austerity is the wrong inference from May’s failure…

The national debt is nearly £1.9 trillion. It grows at a rate of £5,170 per second. The debt burden is 86% of GDP, more than double what it was pre-2008. Public sector borrowing is £51.7 billion this year – that is government overspending by £1 billion a week. May’s manifesto already kicked the deficit reduction can down the road to 2025, ten years later than George Osborne’s original so-called austerity programme. Young voters chose Corbyn, now May wants to win them back by saddling them and future generations with even more debt.

The only Cabinet minister who so far seems to recognise the recklessness of all this is Michael Gove, who told the Today programme “we need to get on with the job of reducing the deficit so that we do not saddle the next generation with a burden of debt”. The trouble with the government’s “austerity is over” spin is the deficit and debt can’t be spun away. If the gilt market loses confidence interest rates shoot up, as inflation takes off wage demands will spiral and the UK’s own version of Chavez will be installed. CPI has hit a 2.9% high this morning, above expectations. Not a good signal to loosen the fiscal stance and abandon austerity…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Former public schoolboy Chuka Umunna told the  ‘Exit From Brexit Dinner’…

“Remainians, Remoaners, I don’t care what the label is, I’m proud. It’s fashionable to label everyone in this room as the liberal metropolitan elite . . . This caricature is promoted by a bunch of former public schoolboys!” 

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Bullying Lobbyists at Centre of Carl Sargeant Investigation Bullying Lobbyists at Centre of Carl Sargeant Investigation
Williamson: Media Ignored Prize I Didn’t Even Know About Williamson: Media Ignored Prize I Didn’t Even Know About
Soubry: Vote for Me is A Vote for ‘Theresa May and Good Brexit Deal’ Soubry: Vote for Me is A Vote for ‘Theresa May and Good Brexit Deal’
Pictured: Rebel Remainer Booze-Up Pictured: Rebel Remainer Booze-Up
Corbyn Heckled at Chanukah Party Corbyn Heckled at Chanukah Party
Top 20 Brexit Blocking MPs Signed 193 Amendments Each Top 20 Brexit Blocking MPs Signed 193 Amendments Each
Momentum Claims Only a Tiny Fraction of the Hundreds of Thousands it Raised for the Election Were Spent on the Election Momentum Claims Only a Tiny Fraction of the Hundreds of Thousands it Raised for the Election Were Spent on the Election
Labour Delays Kelvin Hopkins Decision Labour Delays Kelvin Hopkins Decision
Who’s In The Final Running To Be New BBC News Director Who’s In The Final Running To Be New BBC News Director
Juncker Facing Criminal Probe After Spy Scandal Juncker Facing Criminal Probe After Spy Scandal
Tom Brake: Media Aren’t Patriotic Enough Tom Brake: Media Aren’t Patriotic Enough
BBC Hypes Gloomy Brexit Report By EU-Funded Think Tank BBC Hypes Gloomy Brexit Report By EU-Funded Think Tank
Brussels Booze-Up Bonanza Brussels Booze-Up Bonanza
Labour Peddle More Animal Sentience Fake News Labour Peddle More Animal Sentience Fake News
Corbyn Launches Labour Muslim Group Headed By “Israel Has No Right to Exist” Activist Corbyn Launches Labour Muslim Group Headed By “Israel Has No Right to Exist” Activist
Clive Lewis Investigation Dropped Clive Lewis Investigation Dropped
Tories Take Poll Lead Tories Take Poll Lead
Cult of Corbyn – Christmas Edition Cult of Corbyn – Christmas Edition
McDonnell’s Socialism (With Diagram) McDonnell’s Socialism (With Diagram)
Labour’s “Easy Movement” Muddle Labour’s “Easy Movement” Muddle